Harvey Weinstein Resigns after Ultimatum by Board (UPDATE)

11:42 AM PT -- Sources with direct knowledge of the Board meeting tell TMZ, under Weinstein's contract after he was fired from the company there was a 5-day "cooling off period" to let the dust settle. After 5 days the matter goes to the Board of Directors which then must ratify the firing. That's what happened today. The Board ratified Weinstein's firing.

We're told under the terms of Weinstein's contract once the Board ratifies the firing he must resign from the Board. If Weinstein refused to resign the plan was to remove him -- in effect, fire him from the Board. Weinstein decided to resign.

The big, open question ... will Harvey Weinstein take legal action for the ousting? As we reported, his lawyer, Patty Glaser, vowed to either force TWC into arbitration or file a lawsuit. We're told the Board feels its case is airtight. As one source connected to TWC put it, "We're not worried at all."

Harvey Weinstein has resigned from the Board of Directors of The Weinstein Company, after the Board gave him a clear ultimatum ... either relinquish your role, or be fired ... sources tell TMZ.

Our sources say Weinstein's decision to resign from the Board does not affect his grievance that he was illegally fired from TWC. As we reported, Weinstein's lawyer, Patty Glaser, was present in the Board meeting and she has made it clear ... she thinks her client's contract did not give the company the right to fire him, and unless the company submits to arbitration she will file a lawsuit.