Thursday, October 18, 2007

Rambus Inc. offers to reprice options

In an effort to "give our eligible employees the opportunity to avoid potentially unfavorable tax consequences under Section 409A of the United States Internal Revenue Code of 1986, as amended (“Section 409A”) and similar state laws" Rambus Inc. is offering to amend their mispriced options by either:

1) Increasing the exercise price per share of these options to the fair market value per share of our common stock on the date these options were granted; of

2) Making a “fixed date election” to delay the first date on which these options may be exercised to a calendar year of the option holder’s choosing (or earlier, if certain specific events occur prior to the selected calendar year).

The offer expires November 15, 2007 at 9:00 p.m.

Laura Stark, our Senior Vice President, Platform Solutions, and Kevin Donnelly, Senior Vice President, Engineering. Ms. Stark and Mr. Donnelly are eligible to participate in this offer because they were not executive officers of Rambus as of the respective grant dates of the mispriced options they hold.

If we receive and accept elections from eligible employees of all options eligible for this offer, subject to the terms and conditions of this offer, we will amend options to purchase a total of approximately 4,045,034 shares of our common stock, or approximately 3.9% of the total shares of our common stock outstanding as of October 12, 2007.

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