3.	LONG-TERM OBLIGATIONS

Long-Term Obligations

Long-term obligations consisted of the following at December 31, 2011 and 2010 (in thousands):

	2011			2010

Equipment notes, weighted average interest rate of 4.4%, payable in monthly installments	$	5		$	49
Less current portion		(5	)		(44	)
	$	—		$	5

Credit Facilities

Current Credit Facility. On April 6, 2010 we entered into a Loan Agreement with First Tennessee Bank National Association for a $20.0 million unsecured revolving credit facility, and on December 21, 2011 the credit facility was renewed and our unsecured revolving credit facility was increased to $25.0 million (the “Current Credit Facility”). The Current Credit Facility contains customary representations and warranties, events of default, and financial, affirmative and negative covenants for loan agreements of this kind. Covenants under the Current Credit Facility restrict the payment of cash dividends if the Company would be in violation of the minimum tangible net worth test or the leverage ratio test in the current loan agreement as a result of the dividend, among various restrictions.

In the absence of a default, all borrowings under the Current Credit Facility bear interest at the LIBOR Rate plus 1.50% per annum. The Company will pay a non-usage fee under the current loan agreement at a rate per annum equal to between 0.15% and 0.35% of the unused amount of the Current Credit Facility, which fee shall be paid quarterly. The Current Credit Facility is scheduled to expire March 31, 2014.

Previous Credit Facility. On April 6, 2010, in connection with the consummation of the Current Credit Facility, the Company terminated its Credit Agreement (the “Previous Credit Agreement”) with Wachovia Bank, National Association, for a $27.0 million senior secured credit facility (the “Previous Credit Facility”). The Previous Credit Facility, as amended, consisted of a $20.0 million revolving credit facility, and a $7.0 million term loan. The Previous Credit Facility was secured by substantially all of the Company’s assets, and contained customary representations and warranties, events of default and affirmative and negative covenants for secured facilities of this type. Covenants under the Previous Credit Facility restricted the payment of cash dividends if a default or event of default under the Previous Credit Agreement had occurred or would result from the payment of dividends, or if the Company would be in violation of the consolidated fixed charge coverage ratio test in the Previous Credit Agreement as a result of the payment of dividends, among various other restrictions.

At December 31, 2011 and 2010, the Company had no outstanding borrowings under the Current Credit Facility.

Interest Rate Sensitivity. Changes in interest rates affect the interest paid on indebtedness under our Current Credit Facility because the outstanding amounts of indebtedness under our Current Credit Facility are subject to variable interest rates. Under our Current Credit Facility, the non-default rate of interest is equal to the LIBOR Market Index Rate plus 1.50% per annum (for a rate of interest of 1.80% at December 31, 2011). A one percent change in the interest rate on our variable-rate debt would not have materially impacted our financial position, results of operations or cash flows for the year ended December 31, 2011.