Total long-term obligations as of March 31, 2014 and December 31, 2013 consist of the following (in thousands):

	March 31, 2014		December 31, 2013

Vendor obligations
Capital lease obligations ⁽³⁾	$	874	$	17
Deferred lease payments ⁽²⁾		792		764
Microsoft licenses ⁽¹⁾		1,205		-

Pension obligations
Accrued pension liability		3,443		3,317
		6,314		4,098
Less: Current portion of long term obligations		1,060		351
Totals	$	5,254	$	3,747

⁽¹⁾ In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014:

Prepaid expenses and other current assets	$	356
Other assets		713
Property and equipment		136
	$	1,205

⁽²⁾ Deferred lease payment represents the effect of straight-lining lease payments over the contractual lease term.

⁽³⁾ In March 2014 the Company entered into a Master Lease agreement with a financing company involving certain equipment. Under the terms of the contract the Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and had the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. The cash proceeds from the transaction were $0.9 million.