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Related Party Transactions
9 Months Ended
Sep. 28, 2013
Related Party Transactions

5. Related Party Transactions

Founders’ Bonuses

The Company paid bonuses to certain founder employees through December 31, 2012, pursuant to the Restated Limited Liability Company Agreement by and among the Company and certain of its stockholders, dated January 20, 2010, as amended (the “LLC Agreement”), prior to its termination on May 31, 2013. Founders’ bonus expense was zero in the three and nine months ended September 28, 2013, and $0.8 million and $1.5 million in the three and nine months ended September 30, 2012, respectively.

Gigamon LLC Members’ Distribution Payable

Prior to the LLC Conversion on May 31, 2013, the Company allocated its adjusted net income (loss) to the holders of its outstanding equity (hereafter referred to as the members) pro rata based upon each member’s pro rata equity ownership, pursuant to the LLC Agreement and distributed a portion of the allocated earnings to its members, as approved by the Board.

The undistributed amount was recorded as Gigamon LLC members’ distribution payable within accrued and other current liabilities in the condensed consolidated balance sheets. As of September 28, 2013 and December 31, 2012, the Gigamon LLC members’ distribution payable balance was $0.5 million and $4.8 million, respectively. During the nine months ended September 28, 2013 and September 30, 2012, the Company distributed $7.0 million and $13.2 million, respectively.