Rambus Inc. announced that it terminated 2,736,800 stock option, which had previously been issued to former CEO Geoff Tate.

Tate served as CEO of Rambus from 1990 to 2005 and held the position of chairman from 2005 to May 2006. Tate resigned from the board on August 13, 2006, and thus his options would have expired by their terms on Nov. 13, 2006.

Prior to the expiration of the options, Tate and Rambus entered into an agreement to conditionally extend the exercise period of the options, subject to fulfillment by Tate of certain obligations. The obligations set forth in the conditional extension were not met by Tate, and thus the extension expired on Dec. 1, 2006, and the options were thus terminated.

Rambus is likely to take stock-based compensation charges of more than $200 million as a result of an internal investigation into historical stock options granting practices.

By: Docmemory
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