9.	LINE OF CREDIT

The Company and its subsidiaries are party to a loan agreement with

Citizens Bank of Pennsylvania which, as of

December 30, 2017,

provides for a

$35

million revolving credit facility and includes a sub-limit of

million for letters of credit (the “Revolving Credit Facility”) and expires

December 11, 2019.

The Revolving Credit Facility has been amended several times, most recently pursuant to the Ninth Amendment entered into on

December 8, 2017

when the Company was granted waivers that expressly allows a cash dividend of up to

$12.4

million and waives certain expenses from the Company’s loan covenant calculations, including

$1.3

million of certain expenses related legal costs, office closures and other expenses in fiscal

2017,

up to

$1.0

million consulting expenses for analyzing tax credits for research and development costs and

179D

energy savings tax credits on a rolling

four

quarter basis and up to

$4.6

million for goodwill impairment. Borrowings under the Revolving Credit Facility bear interest at

one

two

alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed

-day increments or (ii) the agent bank’s prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is

not

drawn. Unused line fees are recorded as interest expense. The effective interest rate, including unused line fees, for the fiscal years ended

December 30, 2017

and

December 31, 2016

was

2.7%

and

2.3%,

respectively.

All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries.

The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends. As of

December 30, 2017,

the Company was in compliance with all covenants contained in its Revolving Credit Facility.

Borrowings under the line of credit as of

December 30, 2017

and

December 31, 2016

were $

27.3

million and

$14.3

million, respectively. At

December 30, 2017

and

December 31, 2016,

there were letters of credit outstanding for

$0.8

million. At

December 30, 2017,

the Company had availability for additional borrowings under the Revolving Credit Facility of

$6.9

million.

February 2018

Amendment

February 14, 2018,

the

Company entered into a Tenth Amendment (the “Amendment”) to that certain Amended and Restated Loan and Security Agreement, dated as of

February 19, 2009,

as previously amended (as amended by the Amendment, the “Loan Agreement”), by and among the Company and all of its subsidiaries, Citizens Bank of Pennsylvania, a Pennsylvania state chartered bank, in its capacity as administrative agent and arranger, and Citizens Bank of Pennsylvania, as lender. The Amendment sets forth an increase to the Revolving Credit Limit (as defined in the Loan Agreement) from

$35.0

million to

$40.0

million.