17.

SUBSEQUENT EVENTS

On April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to a securities purchase agreement, Roust Trading Limited has agreed to make an investment in the Company in three stages, subject to typical closing conditions. First, on May 4, 2012 Roust Trading Limited acquired 5,714,286 newly issued shares of the Company’s common stock for an aggregate purchase price of $30 million, or $5.25 per share, and JSC “Russian Standard Bank,” an affiliate of Roust Trading Limited, purchased $70 million aggregate principal amount of senior notes due March 18, 2013, bearing an interest rate of 3.00% (the “New Debt”) issued by the Company. Subject to the consummation of the Second Closing (as defined in the securities purchase agreement), the Company (on or after January 30, 2013) or Roust Trading Limited (on or after the completion of the Second Closing) may cause the New Debt to effectively be exchanged for newly issued shares of the Company’s common stock equal to the then-outstanding principal amount of the New Debt, plus accrued and unpaid interest thereon as of the Second Closing, divided by $5.25. The total amount of shares of the Company’s common stock expected to be issued in relation to the New Debt is approximately 13,333,333 shares of the Company’s common stock plus any additional shares representing accrued and unpaid interest under the New Debt as of the Second Closing. Second, if shareholder approval is obtained, then (subject to typical closing conditions), Roust Trading Limited will purchase $102.6 million aggregate principal amount of senior rollover notes due July 31, 2016 (the “Rollover Notes”), from the Company. The Company must use the proceeds (net of fees and expenses) from the issuance of the Rollover Notes to repurchase the Convertible Senior Notes held by Roust Trading Limited or its affiliates, in the same principal amount as the Rollover Notes, at par. Third, the Company, at its option, may issue to Roust Trading Limited senior backstop notes in an aggregate principal amount of up to $107.5 million due July 31, 2016 (the “Backstop Notes”) to be used by the Company to pay the remaining principal amount of the Convertible Senior Notes then outstanding. Each of the Rollover Notes and Backstop Notes will bear a blended interest rate of 6.00% over the term of each note.

The Company and Roust Trading Limited also entered into a governance agreement in support of this investment. In accordance with this governance agreement, Roust Trading Limited may nominate up to three directors to the Company’s Board of Directors depending on the amount of the Company’s common stock held by Roust Trading Limited. In addition, Roust Trading Limited received various minority protection rights.