On May 7, 2009, the Company and certain of the Company’s directors and an executive officer entered into a Stock Purchase Agreement, or the Purchase Agreement, with Obrem Capital Offshore Master, LP and Obrem Capital (QP), LP, or the Obrem entities, to purchase 3,091,000 shares of the Company’s common stock owned by the Obrem entities in a privately negotiated transaction. The Company purchased 3,075,000 shares at a price per share of approximately $6.50 for an aggregate price of $20 million. The purchase was made as part of the Company’s share repurchase program previously announced on December 30, 2008. The Company borrowed $15 million under a term loan facility and used a portion of its cash on hand to purchase the shares it purchased in the transaction. The shares purchased by the Company will return to the status of authorized but unissued shares of common stock of the Company.
Additionally, the directors and the executive officer of the Company who are parties to the Agreement purchased 16,000 shares of the Company’s common stock owned by the Obrem entities at the same discounted price as the Company. The shares were purchased for an aggregate price of $104,065.06. Frank Schneider, a member of the Board of Directors, Neil Miotto, a member of the Board of Directors, and Jung-Chen Lin, the Company’s Vice President of Ethernet Products, each purchased shares under the Agreement.
The purchases represent 4.7% of the Company’s common stock. The Company will have 62,305,090 shares of common stock outstanding after the purchases.