COMMITMENTS

Executive Severance Agreements with Rocco Campanelli

and

Kevin Miller

The Company is a party to Executive Severance Agreements (the “Executive Severance Agreements”) as of

February 28, 2014

, with Rocco Campanelli, the Company’s President and Chief Executive Officer and Kevin Miller, the Company’s Chief Financial Officer, which set forth the terms and conditions of certain payments to be made by the Company to each executive in the event, while employed by the Company, such executive experiences (a) a termination of employment unrelated to a “Change in Control” (as defined therein) or (b) there occurs a Change in Control and either (i) the executive’s employment is terminated for a reason related to the Change in Control or (ii) the executive remains continuously employed with the Company for a specified period of time following the Change in Control (i.e.,

twelve

months for Mr. Campanelli and

three

months for Mr. Miller). The Executive Severance Agreements also provide for certain payments, if either (a) the executive is involuntarily terminated by the Company for any reason other than “Cause” (as defined therein), “Disability” (as defined therein) or death, or (b) the executive resigns for “Good Reason” (as defined therein), and, in each case, the termination is

not

a “Termination Related to a Change in Control” (as defined therein).

Leases

The Company leases office facilities and various equipment under non-cancelable leases expiring at various dates through

November 2022.

Certain leases are subject to escalation clauses based upon changes in various factors. The minimum future annual operating lease commitments for leases with non-cancelable terms, exclusive of unknown operating escalation charges, are as follows ($ in thousands):

Fiscal Years	Amount
2018	$	3,036
2019		1,695
2020		1,056
2021		516
2022		304
Total	$	6,607

Rent expense for the fiscal years ended

December 30, 2017

and

December 31, 2016

was

$3,696

and

$3,186,

respectively.

The Company

, from time to time, subleases space to other tenants at various office locations under lease agreements. During the fiscal year ended

December 30, 2017,

payments of approximately

$12

were received under these leasing arrangements. During the fiscal year ended

December 31, 2016,

there were

sublease payments. The Company offsets these payments against its expense for reporting purposes.