RAMBUS INC false 0000917273 0000917273 2022-03-11 2022-03-11

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

March 11, 2022

 

 

Rambus Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   000-22339   94-3112828

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

  (I. R. S. Employer
Identification No.)

4453 North First Street, Suite 100

San Jose, California 95134

(Address of principal executive offices)

(408) 462-8000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading

Symbol

 

Name of Each Exchange

on Which Registered

Common Stock, $.001 Par Value   RMBS   The NASDAQ Stock Market LLC
    (The NASDAQ Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 1.01.

Entry into a Material Definitive Agreement

On March 11, 2022, Rambus Inc. (the “Company”) entered into an amendment to the letter agreement (the “Amended Agreement”), dated March 12, 2021 (the “Agreement”) with Barington Companies Equity Partners, L.P. and certain other affiliated parties (collectively, “Barington”). The Amended Agreement extends the customary standstill provisions in the Agreement (described in the Company’s Form 8-K filed on March 16, 2021) until the first anniversary of the Company’s 2022 annual meeting of the stockholders (the “2022 Annual Meeting”).

In addition and related to the Amended Agreement, the Company entered into a Director Transition and Consulting Agreement with Barington and James Mitarotonda (the “Transition Agreement”). Pursuant to the terms of the Transition Agreement, after the conclusion of Mr. Mitarotonda’s service as a director at the 2022 Annual Meeting, Mr. Mitarotonda will provide consulting services to the board chair and senior management of the Company for one year and Barington will be paid $230,000 cash for such services.

The foregoing summary of the Amended Agreement and the Transition Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Amended Agreement and the Transition Agreement, which are filed as Exhibit 10.1 and Exhibit 10.2 and incorporated by reference.

Item 9.01 - Financial Statements and Exhibits.

(d) Exhibits.

 

10.1    Letter agreement dated as of March 11, 2022, among Rambus Inc., Barington Companies Equity Partners, L.P. and certain other parties.
10.2    Director Transition and Consulting Agreement dated March 11, 2022, by and between Rambus Inc. and James Mitarotonda.
99.1    Press Release, dated March 11, 2022.
104    Cover Page Interactive Date File (formatted as inline XBRL and contained in Exhibit 101)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: March 11, 2022  

 

 

 

  Rambus Inc.

 

 

 

 

 

 

/s/ Keith Jones

 

 

 

 

 

  Keith Jones, Vice President, Finance and Interim
Chief Financial Officer

Exhibit 10.1

Rambus Inc.

4453 North First Street, Suite 100

San Jose, CA 94089

March 11, 2022

Barington Companies Equity Partners, L.P.

888 Seventh Avenue, 6th Floor

New York, NY 10019

Attn: James A. Mitarotonda

Ladies and Gentlemen:

This letter amends the letter agreement, dated March 12, 2021 (the “Agreement”), between (a) Rambus Inc., a Delaware corporation (“Company”), and (b) Barington Companies Equity Partners, L.P., a Delaware limited partnership (“Barington”), and each of the other related Persons (as defined below) set forth on the signature pages to the Agreement (collectively with Barington, the “Barington Signatories”). Company and the Barington Signatories are collectively referred to as the “Parties.”

It is agreed that the definition of Restricted Period in the Agreement is amended and restated as follows:

Restricted Period” means the period from the date of this Agreement until 11:59 p.m., Pacific time, on the first anniversary of the date of the annual meeting of Company’s stockholders at which the Barington Designee’s term as a director of the Company expires.

Except as expressly provided in this letter, the Agreement, as amended by this letter, remains in full force and effect. In the event of a conflict between the terms of this letter and the Agreement, this letter will control.

[Signature page follows.]


Very truly yours,
RAMBUS INC.
By:  

/s/ Chuck Kissner

  Name:   Charles Kissner
  Title:   Chairman of the Board of Directors

 

ACCEPTED AND AGREED
as of the date written above:
BARINGTON COMPANIES EQUITY PARTNERS, L.P.
By:   Barington Companies Investors, LLC
  its general partner
By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   Managing Member
BARINGTON COMPANIES INVESTORS, LLC
By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   Managing Member
BARINGTON CAPITAL GROUP, L.P.
By:   LNA Capital Corp.,
  its general partner
By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   President and CEO

[Signature Page to Letter Agreement]


LNA CAPITAL CORP.
By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   President and CEO
JAMES A. MITAROTONDA

/s/ James A. Mitarotonda

[Signature Page to Letter Agreement]

Exhibit 10.2

RAMBUS INC.

DIRECTOR TRANSITION AND CONSULTING AGREEMENT

This Director Transition and Consulting Agreement (this “Agreement”) is entered into on March 11, 2022, by and between Rambus Inc., a Delaware corporation (the “Company”) and Barington Companies Equity Partners, L.P. (“Barington Equity”) and Barington Capital Group, L.P. (“Barington Capital” and, together with Barington Equity, “Barington”). Each of the Company and Barington is a “Party” to this Agreement and, collectively, the “Parties.”

WHEREAS the Parties desire and agree to enter this relationship by means of this Agreement;

NOW THEREFORE in consideration of the promises and mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is mutually covenanted and agreed by and among the Parties as follows:

1. Director Transition and Related Matters. The Parties agree that James A. Mitarotonda (Chief Executive Officer of the Special Advisor) (the “Principal”) will no longer serve on the Board as of the date of the 2022 annual meeting of stockholders when his term expires. In consideration of the Principal serving as consultant under this Agreement, Barington and its affiliates agree to contemporaneously enter into an amendment to that certain letter agreement, dated March 12, 2021, between the Company and Barington pursuant to which the “Restricted Period” will be so amended to end on the first anniversary of the date of the annual meeting of the Company’s stockholders at which the Principal’s term as a director of the Company expires.

2. Consulting Duties; Term. In his capacity as consultant to the Company, the Principal agrees to perform advisory services for the Company as requested including consulting to the Board Chair, Chief Executive Officer, and Chief Financial Officer, on an as needed basis, and to conduct a quarterly consulting telephone/virtual call with Board Chair (the “Services”). The Company understands and agrees that its consulting relationship with the Principal is not exclusive, and that the Principal currently has and may continue to have consulting relationships with other entities. The term of the Principal’s consulting arrangement will commence on the day after the date of the 2022 annual meeting of stockholders and continue through and including the one-year anniversary of the date of the 2022 annual meeting of stockholders (the “Consulting Term”).

3. Compensation. In consideration for the Services, the Company agrees to pay Barington $230,000 cash during the Consulting Term, paid quarterly in arrears.

4. Confidentiality. The Principal shall be subject to the same confidentiality obligations to the Company as existed during his service as a member of the Board.

5. Independent Contractor. Nothing in this Agreement shall in any way be construed to constitute the Principal as an employee of the Company. The Principal shall perform the Services as an independent contractor. The Principal acknowledges and agrees that he is obligated to report as income all compensation received by him pursuant to this Agreement, and the Principal agrees to and acknowledges the obligation to pay all self-employment and other taxes thereon.


6. Benefits. The Principal acknowledges and agrees, and it is the intent of the Parties hereto, that the Principal receive no benefits from the Company, either as an independent contractor or employee. If the Principal is reclassified by a state or federal agency or court as an employee for tax or other purposes, the Principal will become a non-benefit employee and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the benefit plans or programs of the Company in effect at the time of such reclassification the Principal would otherwise be eligible for such benefits.

7. Arbitration. Barington and the Company agree that any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by binding arbitration to be held in Portland, Oregon in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the Parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Company and Barington each hereby agree to waive its and his right to have any dispute between them resolved in a court of law by a judge or jury to the extent permissible under applicable law.

8. Successors.

(a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company,” as applicable, shall include any such successor.

(b) Successors. Without the written consent of the Company, the Principal shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity.

9. Notice. Any notice hereby required or permitted to be given shall be sufficiently given if in writing and upon mailing by registered or certified mail, postage prepaid, or by Federal Express or similar overnight delivery service to either Party at the address of such Party or such other address as shall have been designated by written notice by such Party to the other Party. Any notice or other communication required or permitted to be given under this Agreement will be deemed given on the day when delivered in person, or the third business day after the day on which such notice was mailed in accordance with this section.

10. Governing Law. This Agreement shall be governed by and construed in accordance with the internal substantive laws, but not the choice of law rules, of the state of Delaware.

 

-2-


11. Severability. The invalidity or unenforceability of any provision of this Agreement, or any terms hereof, shall not affect the validity or enforceability of any other provision or term of this Agreement.

12. Integration. This Agreement represents the entire agreement and understanding between the Parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the Parties hereto.

13. Right to Advice of Counsel. Barington acknowledges that it has had the right to consult with counsel and is fully aware of its rights and obligations under this Agreement.

[Signature page follows]

 

-3-


IN WITNESS WHEREOF, each of the Parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

RAMBUS INC.
By:  

/s/ Chuck Kissner

Title:   Chairman of the Board of Directors

 

BARINGTON COMPANIES EQUITY PARTNERS, L.P.

 

By: Barington Companies Investors, LLC, its general partner

By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   Chairman and CEO

BARINGTON CAPITAL GROUP, L.P.

 

By: LNA Capital Corp, its general partner

By:  

/s/ James A. Mitarotonda

  Name:   James A. Mitarotonda
  Title:   Chairman and CEO

 

/s/ James A. Mitarotonda

James A. Mitarotonda

SIGNATURE PAGE TO DIRECTOR TRANSITION AND CONSULTING AGREEMENT

 

-4-

Exhibit 99.1

Rambus Announces James Mitarotonda to Become Board Advisor

SAN JOSE, Calif., March 11, 2022 —Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and silicon IP making data faster and safer, today announced that James Mitarotonda will not seek re-election to the Company’s Board of Directors and will step down following the Company’s 2022 annual meeting of the stockholders. As part of his transition, Mr. Mitarotonda will continue on as a consulting advisor for the Rambus Board and management team for a term of one year.

“We are grateful for Jim’s contributions and thank him for his service on the Rambus Board of Directors,” said Chuck Kissner, chairman of the Rambus Board of Directors. “Jim has been a valuable member of the team, providing guidance and perspective as we continue to execute and deliver long-term value for our stockholders. We look forward to a continuing relationship with him as an advisor.”

“It has been a privilege and a pleasure to work with the Rambus management team and to serve on the Company’s Board,” said Mr. Mitarotonda. “Rambus is well-positioned to intercept the growing needs of the data center and cloud computing and I look forward to working with the Company as it continues its profitable growth.”

Coincident with the consulting arrangement, the current standstill agreement signed March 12, 2021 with Mr. Mitarotonda and the Barington Capital Group will be extended through Rambus’ 2023 annual meeting of stockholders. The complete agreement will be filed on a Form 8-K with the Securities and Exchange Commission.

Mr. Mitarotonda has been a director since March 2021. He currently serves as chairman, president and chief executive officer of Barington Capital Group, L.P. (“Barington”), an investment firm. He holds a Master of Business Administration degree from New York University’s Stern School of Business and a Bachelor of Arts in economics from Queens College, where he currently serves as a member of the Board of Trustees.

About Rambus Inc.

Rambus is a provider of industry-leading chips and silicon IP making data faster and safer. With over 30 years of advanced semiconductor experience, we are a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems. Whether in the cloud, at the edge or in your hand, real-time and immersive applications depend on data throughput and integrity. Rambus products and innovations deliver the increased bandwidth, capacity and security required to meet the world’s data needs and drive ever-greater end-user experiences. For more information, visit rambus.com.

Source: Rambus Inc.

Contact

Keith Jones

Interim Chief Financial Officer and Chief Accounting Officer

Rambus Inc.

(408) 462-8000

kjones@rambus.com

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