SHARE-BASED COMPENSATION (Tables)

The fair value and derived service periods calculated for this market condition stock option award by vesting tranche were as follows:

	Grant Date		Derived Service
	Fair Value		Period
	Per Share		(in Trading Days)
$4.00 market condition tranche	$	1.95		151
$5.00 market condition tranche	$	1.95		262
$6.00 market condition tranche	$	1.99		362

The fair value of the components of the Put Option was calculated using the Black-Scholes model using the following assumptions.

	Issuance Date
Common stock price	$	3.30
Dividend yield		0.0	%
Exercise price of put option	$	4.50
Expected term		0.78 years
Risk-free interest rate		0.20	%
Estimated stock volatility		55	%

A summary of the service-based stock option activity of the Company's Equity Plan as of January 2, 2016 and changes during the fiscal year then ended is presented below:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
	Shares		Price		Term		Value
Outstanding at January 3, 2015		307,753	$	8.54
Exercised		(7,500)	$	1.55
Forfeited/cancelled		(55,700)	$	11.60

Outstanding at January 2, 2016		244,553	$	8.06		3.9 years	$	0

Options vested and expected to vest at January 2, 2016		237,053	$	8.18		3.7 years	$	0

Options exercisable at January 2, 2016		207,052	$	8.80		3.1 years	$	0

A summary of the status of service-based non-vested share awards issued under the Equity Plan as of January 2, 2016 and changes during the fiscal year then ended is presented below:

			Weighted
			Average
			Grant Date
			Fair Value per
	Shares		share
Outstanding at January 3, 2015		81,000	$	3.93
Vested		(81,000)	$	3.93
Outstanding at January 2, 2016		–	$	–

A summary of the market condition stock option activity under the Equity Plan, as of January 2, 2016 and changes during the fiscal year then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at January 3, 2015		-	$	-

Granted		200,000	$	3.34

Outstanding at January 2, 2016		200,000	$	3.34

Options vested and expected to vest at January 2, 2016		200,000	$	3.34

Options exercisable at January 2, 2016		-	$	-

Performance-Based Non-vested Share Awards - A summary of the status of performance-based non-vested share awards issued under the Equity Plan as of January 2, 2016 and changes during the fiscal year then ended is presented below:

			Weighted
			Average
			Grant Date
			Fair Value per
	Shares		share
Outstanding at January 3, 2015		652,999	$	3.19
Granted		58,940	$	3.17
Vested		(63,406)	$	3.26
Forfeited		(398,318)	$	3.20
Outstanding at January 2, 2016		250,215	$	3.15

A summary of the option activity under the Company's Supplemental Stock Plan as of January 2, 2016 and changes during the fiscal year then ended is presented below:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
	Shares		Price		Term		Value
Outstanding at January 3, 2015		82,600	$	11.33
Forfeited/cancelled		(45,700)	$	11.51

Outstanding at January 2, 2016		36,900	$	11.11		1.4 years	$	0

Options vested and exercisable at January 2, 2016		36,900	$	11.11		1.4 years	$	0