5. Business Combination Pending Merger with QLogic Corporation On June 15, 2016, the Company entered into an Agreement and Plan of Merger with QLogic Corporation (QLogic), a supplier of high performance networking infrastructure solutions, (the QLogic merger agreement). Subject to the terms and conditions of the QLogic merger agreement, the Company is seeking to acquire all of the outstanding QLogic common stock for approximately $15.50 per share, comprised of $11.00 per share in cash and 0.098 of a share (valued based on the Companys volume weighted trading price for the three trading days beginning June 10, 2016) of the Companys common stock for each share of QLogic common stock through an exchange offer. Upon completion of the merger, QLogic will survive as a wholly owned subsidiary of the Company, and each issued and outstanding share of QLogic common stock, other than shares held in treasury, will be converted into the right to receive the merger consideration. The Company intends to fund the merger consideration with a combination of cash on hand, committed debt financing as discussed in detail below and issuance of new equity. This merger is primarily intended to provide an opportunity to the Company to drive significant growth at scale in data center and storage markets. As a result of the merger, subject to the terms and conditions of the QLogic merger agreement, at the effective time of the merger: (i) each outstanding and unvested QLogic stock option (other than any such unvested option which has an exercise price greater than merger consideration per share, an underwater option), shall be assumed by the Company and converted into an option to purchase, on the same terms and conditions as were applicable under such QLogic stock option, that number of shares of the Companys common stock; (ii) each outstanding and vested QLogic stock option with an exercise price less than the sum of (a) the cash consideration and (b) the share consideration value, shall be cancelled and the holder thereof shall