Jamba Juice 2007 Annual Report Download - page 80

Table of Contents
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matching contribution after one year of employment, under which it will match 100% of the first 3%, and 50% for the 4% and 5% of an employee’s
contributions. During fiscal 2006, the Company contributed $0.1 million to the plan.
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Litigation Related—The Company or its wholly owned subsidiary, Jamba Juice Company, is a defendant in certain litigation arising in the normal
course of business. In the opinion of management, the ultimate resolution of such litigation will not have a significant effect on the consolidated financial
statements.
Other—The Company has commitments under contracts for the construction of leasehold and other improvements for stores to be opened in fiscal year
2007. Portions of such contracts not completed at the end of fiscal 2006, are not reflected in the consolidated financial statements. These unrecorded
commitments are $1.0 million as of January 9, 2007.
The Company has a purchase obligation with a supplier for certain fruits for a 15-year term ending in 2024 for commitments to purchase a minimum
level of fruit totaling $32.2 million. The Company has not made significant purchases under this agreement during fiscal 2006.
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The Company’s current Chairman and former Chief Executive Officer, and two former directors advanced a total of approximately $90,000 to the
Company as of June 29, 2005, to cover expenses related to the initial public offering. Of such loans, $40,000 was payable with 4% annual interest on the
earlier of January 26, 2006, or the consummation of the initial public offering and $50,000 was payable with 4% annual interest on the earlier of March 28,
2006 or the consummation of the initial public offering. In addition, two former directors loaned the Company an aggregate of $70,000 on June 29, 2005, that
was used to pay the fees of the American Stock Exchange. All of such amounts were repaid at the closing of the offering from the proceeds of the initial public
offering not placed in trust.
The Company paid up to $7,500 a month in total for office space and general and administrative expense to a related entity and two stockholders from
July 6, 2005 through the Merger Date.
Subsequent to the offering, the stockholders prior to the initial public offering purchased 1,000,000 warrants at an average price of $1.01375 and the
underwriter or its affiliates purchased 500,000 warrants at an average price of $0.99. The stockholders further agreed that any warrants purchased by them or
their affiliates or designees would not be sold or transferred until the completion of a business combination.
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