COMMITMENTS

9 Months Ended

Sep. 30, 2011

COMMITMENTS

COMMITMENTS

NOTE 8 – COMMITMENTS

Operating Leases

The Company leases certain facilities and equipment under operating leases.  The Company recognizes rent expense on a straight-line basis over the lease term.  Rent expense was $1.9 million and $1.5 million for the quarters ended September 30, 2011 and 2010, respectively, and was $4.9 million and $4.7 million for the nine month periods ended September 30, 2011 and 2010, respectively.

The Company entered into a new lease agreement on April 4, 2011, for facilities located in Austin, Texas with the intent to relocate the activities then conducted at its Sunnyvale, California facility.  The commencement date on the lease was August 1, 2011 and is for a 130 month term.  The Company subsequently entered into an agreement to terminate its Sunnyvale, California facility lease obligations effective December 31, 2011.  The schedule below updates the Company’s future contractual minimal lease payments disclosed in the 2010 Form 10-K for the two events noted.

	Minimum Rental
	Payments
2011	$	843
2012	3,201
2013	3,826
2014	3,821
2015	3,609
Thereafter	18,554
	$	33,854

Purchase Commitments

The Company is a party to a variety of agreements pursuant to which it may be obligated to purchase products from other parties.  Typically, these obligations arise in the context of contracts entered into by the Company in the normal course of business.  During the quarter and nine month period ended September 30, 2011, there were no material changes from the Company’s contractual obligations presented in its 2010 Form 10-K.

Indemnification Agreements

The Company advances legal fees as required pursuant to indemnification agreements that were entered with certain former executives and employees while they were employed with the Company.  During the nine month period ended September 30, 2011 the Company advanced $4.5 million and has recorded additional liabilities of $2.4 million under these indemnity agreements as of September 30, 2011.  As disclosed in Note 1, beginning in the quarter ended September 30, 2011, the Company classifies the amounts advanced pursuant to the indemnification agreements as investigation and restatement related costs in its Condensed Consolidated Statements of Operations.  The Company expects to continue to advance payments pursuant to these agreements in future periods; however, management is unable to estimate the amount or timing of future payments under such agreements.