7. Performance Unit Plan (PUP)

In 2009, the Company adopted the 2009 Performance Unit Plan (the “2009 Plan”). The 2009 Plan was not an equity plan and was intended to provide an incentive payment to employees, consultants and Board members by providing payment based on the appreciation in value of the Company at the time of a change in control event, such as a business acquisition, merger or an IPO (each performance unit a “PUP”). PUPs did not constitute ownership units or interests of the Company.

The distribution amount is defined as the difference between the redemption value of the units received at the time of the change of control and the base value of the PUP, which was $0.15 as determined by the Board at each award date. While the distributable amount may be satisfied in either cash or stock at the time of a change in control, the Company elected to make such distribution in cash.

The Company recorded compensation and related payroll tax expenses of zero and $20.4 million in its condensed consolidated financial statements in the three and nine months ended September 28, 2013, respectively, for the 1,057,772 PUPs vested upon the completion of the IPO on June 17, 2013. The 2009 Plan was terminated in June 2013, in connection with the completion of the IPO.

The following table summarizes the Company’s PUP activity:

				PUPs Outstanding
	PUPs Available for Grant			Number of PUPs			Weighted- Average Base Price
Balances — December 31, 2012		218,160			1,404,812		$	0.15
Settled		—			(1,057,772	)	$	0.15
Cancelled		347,040			(347,040	)	$	0.15
Termination of the Plan		(565,200	)		—		$	0.15
Balances — September 28, 2013		—			—

As of December 31, 2012
Base Price			Number Outstanding		Weighted Average Remaining Contractual Life (in Years)		Number Vested
$	0.15		1,404,812		7.96		862,922