Paul Singer Reiterates 6.4% Stake in Emulex, Reveals New Agreement in Play

Paul Singer and his mega-hedge fund, Elliott Associates, has just reiterated its 6.4% stake in Emulex Corporation (NYSE:ELX), while disclosing a letter agreement with the company. Here are the contents of the agreement:

Pursuant to the terms of the Letter Agreement, the Issuer agreed that prior to filing its proxy materials for the next meeting of stockholders at which members of the Issuer’s Board of Directors (the “Board”) will be elected (the “Next Stockholders Meeting”), the Board (and the Nominating/Corporate Governance Committee and/or an authorized subcommittee thereof) will, among other things, take such actions as necessary to (i) decrease (effective as of immediately prior to the Next Stockholders Meeting and continuing until the Expiration Date, as defined below), the size of the Board to no more than 11, (ii) nominate no more than eight individuals who are currently members of the Board (the “Existing Director Nominees”), including Eugene J. Frantz and Gregory S. Clark (the “New Members”), for election to the Board at the Next Stockholders Meeting, and (iii) nominate for election to the Board at the Next Stockholders Meeting three individuals from the group of candidates previously identified by the Board and the Reporting Persons(the “Designated Nominees” and, together with the Existing Director Nominees, the “Issuer Nominees”).  
Disclosure: none