Employee Benefit Plan

3 Months Ended

Mar. 30, 2013

Employee Benefit Plan

Employee Benefit Plan

12. Employee Benefit Plan

On January 1, 2013, we implemented an employee 401(k) retirement savings plan. (the “Plan”). The Plan provides eligible employees with an opportunity to make tax-deferred contributions into a long-term investment and savings program.  All employees over the age of 21 who have completed one month of service are automatically enrolled in the Plan, but may elect to not participate.  The Plan allows eligible employees to contribute a portion of their annual compensation, subject only to maximum limits required by law.  We contribute an amount equal to 3% of each employees’ compensation under the Safe Harbor provisions provided by the Internal Revenue Service rules governing 401(k) plans.  Employee contributions vest immediately and employer contributions vest fully after two years of service.

Prior to January 1, 2013, we maintained a simplified employee retirement plan (“SEP”) which commenced on January 1, 2008. The SEP was a defined contribution plan; employee contributions were voluntary and were determined on an individual basis, limited by the maximum amounts allowable under federal tax regulations. We contributed up to 3% of each individual’s base salary as required under the Safe-Harbor provisions of Internal Revenue Service rules governing SEP plans. Employer contributions vested immediately and were expensed when paid.

We have recorded contribution expenses of $16,000 and $13,000 for the three months ended March 30, 2013 and March 31, 2012, respectively.