CREDIT FACILITY	12 Months Ended
Dec. 28, 2013
CREDIT FACILITY
CREDIT FACILITY	NOTE 7. CREDIT FACILITY The Company had a $3.0 million credit facility with the Bank of America, which expired May 31, 2013. The agreement allowed the Company to issue letters of credit up to $3.0 million and was collateralized by a security interest in various certificates of deposit held by the Company. As of December 29, 2012, the Company had $3,000,000 of certificates of deposit collateralized for the outstanding letters of credit with Bank of America. These certificates of deposit were reported as restricted funds. As letters of credit are drawn upon or replaced through our new credit facility described below, the restricted funds were released. There are no longer any outstanding letters of credit under this facility. On July 25, 2013, we entered into a new five year credit agreement ("credit agreement") with Wells Fargo Bank, National Association (the "Bank"). The credit facility ("Credit Facility") provides the Company with a line of credit of $25 million for short term borrowings and letters of credit with a sublimit of $5.0 million. Short term borrowings are limited to the lower of the line of credit available or the borrowing base available as defined in the Credit Agreement. Any borrowings that the Company may incur in the future under the Credit Facility are due and payable on July 25, 2018, at which time the facility terminates. Borrowings under the Credit Facility bear interest, at the Company's option, either at the London interbank offering rate ("LIBOR") Margin or at the Base Rate Margin. LIBOR Margin is equal to LIBOR plus a margin of 1.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% of the borrowing base, the LIBOR Margin is equal to LIBOR, plus a margin of 1.75% per annum. Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% the Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.75% per annum. The base rate, as defined in the Credit Agreement, is a fluctuating rate per annum equal to the highest of (a) the U. S. federal funds rate, plus a margin of 0.50% per annum, (b) the adjusted LIBOR rate plus a margin of 1.00% or (c) the Wells Fargo prime rate in effect at that time. The obligations of the Company under the Credit Facility are secured by liens on all assets of the Company. The Credit Agreement contains various customary covenants, including, but not limited to, limitations on indebtedness, liens, investments, dividends or other capital distributions, purchases or redemptions of stock, sales of assets or subsidiary stock, transactions with affiliates, line of business and accelerated payments of certain obligations and minimum availability requirement. The Credit Agreement contains events of default customary for similar financings. Upon the occurrence of an event of default, the outstanding obligations under the Credit Facility may be accelerated and become due and payable immediately. In addition, if a certain change of control event occurs with respect to any loan party, the Lenders have the right to require the Company to repay any outstanding loans under the Credit Facility. The Company had outstanding letters of credit of $1.1 million under the Credit Facility and no borrowings as of December 28, 2013. During fiscal 2013, the Company recorded $1.1 million of deferred financing costs in connection with the Credit Agreement, which are included in other assets at December 28, 2013 and is being amortized on a straight line basis through July 2018.

NOTE 7. CREDIT FACILITY

The Company had a $3.0 million credit facility with the Bank of America, which expired May 31, 2013. The agreement allowed the Company to issue letters of credit up to $3.0 million and was collateralized by a security interest in various certificates of deposit held by the Company. As of December 29, 2012, the Company had $3,000,000 of certificates of deposit collateralized for the outstanding letters of credit with Bank of America. These certificates of deposit were reported as restricted funds. As letters of credit are drawn upon or replaced through our new credit facility described below, the restricted funds were released. There are no longer any outstanding letters of credit under this facility.

On July 25, 2013, we entered into a new five year credit agreement ("credit agreement") with Wells Fargo Bank, National Association (the "Bank"). The credit facility ("Credit Facility") provides the Company with a line of credit of $25 million for short term borrowings and letters of credit with a sublimit of $5.0 million. Short term borrowings are limited to the lower of the line of credit available or the borrowing base available as defined in the Credit Agreement. Any borrowings that the Company may incur in the future under the Credit Facility are due and payable on July 25, 2018, at which time the facility terminates.

Borrowings under the Credit Facility bear interest, at the Company's option, either at the London interbank offering rate ("LIBOR") Margin or at the Base Rate Margin. LIBOR Margin is equal to LIBOR plus a margin of 1.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% of the borrowing base, the LIBOR Margin is equal to LIBOR, plus a margin of 1.75% per annum. Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% the Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.75% per annum. The base rate, as defined in the Credit Agreement, is a fluctuating rate per annum equal to the highest of (a) the U. S. federal funds rate, plus a margin of 0.50% per annum, (b) the adjusted LIBOR rate plus a margin of 1.00% or (c) the Wells Fargo prime rate in effect at that time.

The obligations of the Company under the Credit Facility are secured by liens on all assets of the Company. The Credit Agreement contains various customary covenants, including, but not limited to, limitations on indebtedness, liens, investments, dividends or other capital distributions, purchases or redemptions of stock, sales of assets or subsidiary stock, transactions with affiliates, line of business and accelerated payments of certain obligations and minimum availability requirement.

The Credit Agreement contains events of default customary for similar financings. Upon the occurrence of an event of default, the outstanding obligations under the Credit Facility may be accelerated and become due and payable immediately. In addition, if a certain change of control event occurs with respect to any loan party, the Lenders have the right to require the Company to repay any outstanding loans under the Credit Facility.

The Company had outstanding letters of credit of $1.1 million under the Credit Facility and no borrowings as of December 28, 2013.

During fiscal 2013, the Company recorded $1.1 million of deferred financing costs in connection with the Credit Agreement, which are included in other assets at December 28, 2013 and is being amortized on a straight line basis through July 2018.