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To: GARY P GROBBEL who wrote (65724)	7/3/2007 11:53:41 AM
From: Suma	Read Replies (1) \| Respond to of 120411

Is this good or bad. Eliminating positions does not sound good. Also needing less space... Entry into a Material Definitive Agreement ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. On June 26, 2007, as part of the restructuring of our Malaysian manufacturing operations, we entered into a Contract Manufacturing Agreement with Greatech Integration (M) Sdn. Bhd. Under the agreement, Greatech will order raw materials, manufacture and assemble products, and perform certain basic testing services for our products. The agreement has an initial term of 12 months, and then renews for additional 12-month terms thereafter, unless either party elects not to renew by giving written notice to the other party. On June 26, 2007, we also entered into an agreement to lease 10,000 square feet of manufacturing space from AT Engineering Sdn. Bhd. Rent under the lease is $5,800 per month. The initial term of the lease continues until June 15, 2009. As a result of this restructuring, we have reduced our leased space in Malaysia from 54,000 to 10,000 square feet. We have also eliminated approximately 28 manufacturing positions. We currently expect to record a total restructuring charge of approximately $125,000 in the quarter ending June 30, 2007, primarily for future cash expenditures for termination benefits and related costs. Cash payments are expected to be completed by the end of the third quarter, September 30, 2007. -------------------------------------------------------------------------------- Report TOU Violation