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      Related Party Transaction&lt;/b&gt;&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;In

      2011, subsequent to the lease expiration and to ensure Jagged

      Peak&amp;#8217;s ability to renew the warehouse lease under

      similar terms, Ridge Rock Partners, LLC, (&amp;#8220;Ridge

      Rock&amp;#8221;) which is owned by a group of investors,

      including officers, directors and former officers of Jagged

      Peak, purchased the warehouse building from the bank that had

      taken ownership of it from the previous landlord. Ridge Rock

      entered into a lease with Jagged Peak on substantially the

      same terms as Jagged Peak had with its former landlord. Rent

      expense related to this lease agreement was approximately $0

      and $101,000 for the 26-week periods ended June 28, 2013 and

      June 29, 2012, respectively. This lease was terminated on

      June 25, 2012.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt" id="PARA1843"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;On

      June 25, 2012, the Company purchased its previously leased

      warehouse building located in St. Petersburg, Florida, from

      Ridge Rock for the appraised value of $3.0 million. The

      Company financed the purchase with a $2.388 million, 5-year

      term loan that is secured by the purchased property and

      amortized over 20 years.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt" id="PARA1845"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;In

      addition, Jagged Peak&amp;#8217;s Chief Executive Officer, Chief

      Operations Officer, Chief Sales and Marketing Officer, a

      Director of the Company and the Employee Stock Option Plan

      (ESOP) collectively hold a majority of the common stock in an

      entity that was spun-off from the Company in 2010 and is now

      a variable interest of the Company. See Note 11, &lt;i&gt;Variable

      Interest Entity,&lt;/i&gt; in the report on Form 10-K for the year

      ended December 28, 2012&lt;i&gt;.&lt;/i&gt;&lt;/font&gt;

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