Summary
NVIDIA Corporation filed an 8-K report on June 27, 2007, detailing the approval of its 2007 Equity Incentive Plan by stockholders at the Annual Meeting on June 21, 2007. This new plan replaces several previous equity incentive plans and authorizes the issuance of up to 101,845,177 shares of common stock. The plan provides for various equity awards, including stock options, restricted stock, and performance-based awards, for employees, directors, and consultants. Key provisions of the 2007 Plan include the establishment of an exercise price at not less than 100% of fair market value (110% for significant holders) and a maximum option term of ten years. The plan also outlines provisions for corporate transactions and changes of control, where outstanding awards may be assumed, continued, or substituted, or otherwise subject to accelerated vesting and termination. The plan is set to terminate on April 23, 2017, unless suspended or terminated earlier by the Board of Directors.
Key Highlights
- 1NVIDIA stockholders approved the 2007 Equity Incentive Plan at the Annual Meeting on June 21, 2007.
- 2The 2007 Plan replaces and consolidates five previous equity incentive plans.
- 3Up to 101,845,177 shares of NVIDIA's common stock can be issued under the 2007 Plan.
- 4The plan permits a variety of equity awards, including incentive stock options, nonstatutory stock options, restricted stock, and restricted stock units.
- 5Awards are available to employees, directors, and consultants, with incentive stock options restricted to employees only.
- 6Stock options will have an exercise price of at least 100% of the fair market value at the grant date (110% for 10% stockholders).
- 7Provisions are included for accelerated vesting and termination of awards in the event of a corporate transaction or change of control if awards are not assumed by the acquiring entity.