Subsequent Events

6 Months Ended

Jul. 01, 2017

Subsequent Events:

Subsequent Events:

11.  Subsequent Events:

On July 18, 2017, the Line of Credit was amended to, among other things:

· Provide the consent of the lenders for a self-tender offer by the Company to purchase up to 400,000 shares of its outstanding common stock for a price of $124.48 per share that was announced on July 19, 2017 (the “Tender Offer”);

· Extend the termination date from April 14, 2019 to July 19, 2021;

· Amend the tangible net worth covenant calculation to remove the effect of the Tender Offer;

· Reduce the applicable margin on interest rate options in connection with LIBOR loans under the Line of Credit;

· Permit the Company to sell up to $15.0 million in term notes to one or more affiliates or managed accounts of Prudential to partially fund the Tender Offer.

On July 19, 2017, the Note Agreement was amended to, among other things:

· Provide the consent of Prudential for the Tender Offer;

· Amend the tangible net worth covenant calculation to remove the effect of the Tender Offer;

· Provide for a new $12.5 million term loan to partially fund the Tender Offer, with such loan summarized as follows:

o Prudential will purchase from the Company senior notes of $12.5 million;

o The final maturity of the notes is 10 years;

o Interest at a rate of 5.10% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $312,500 quarterly until the principal is paid in full;

o The notes may be prepaid, at the option of the Company, in whole or in part (in a minimum amount of $1 million), but prepayments will require payment of a Yield Maintenance Amount.

· The amendments to the credit agreement and term loan agreement were both effective as of July 19, 2017.