RELATED PARTY TRANSACTIONS

6 Months Ended

Jul. 01, 2016

Note 8.

RELATED PARTY TRANSACTIONS

For each of the three and six months ended July 1, 2016 and June 26, 2015, Kohlberg & Co., L.L.C. (the “Kohlberg Manager”), whose affiliate held all 1,131,551 shares of the Company’s Convertible Preferred Stock at July 1, 2016, provided ongoing management oversight and advisory services to the Company. At July 1, 2016 and December 31, 2015, the Company owed the Kohlberg Manager $4.0 million and $3.8 million, respectively, for these services, which is recorded in noncurrent liabilities on the Condensed Consolidated Balance Sheets. The Company incurred expense of $0.5 million per year for these services. For each of the three and six months ended July 1, 2016 and June 26, 2015, $0.3 million is recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss for these services.

In February 2014, loans of $0.1 million each were received from two directors of the Company, and a loan of $0.2 million was received from the Kohlberg Manager. In connection with these loans, the Company entered into subordinated promissory notes with these individuals and the Kohlberg Manager, respectively. These notes were used to finance the acquisition of FTW Holdings, Inc. and were amended in the year ended December 31, 2015 to mature on December 31, 2019. The notes accrue interest at a rate of 15% per year, which will be paid by capitalizing such interest and adding such capitalized interest to the principal amount of the subordinated notes. PIK interest was $0.2 million as of July 1, 2016 and $0.1 million as of December 31, 2015. The loans and PIK interest are recorded in noncurrent liabilities on the Condensed Consolidated Balances Sheets.

On August 11, 2016, the Kohlberg Manager’s ongoing management oversight and advisory services were terminated upon the consummation of the transactions contemplated by the SPA (as defined in Note 12), and all amounts owed to the Kohlberg Manager (other than limited indemnification rights) were waived in connection with the mutual release described in Note 12.