NVIDIA 2003 Annual Report Download - page 60

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Purchase Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the
Internal Revenue Code. Under the Purchase Plan, the Board has authorized participation by eligible employees,
including officers, in periodic offerings following the adoption of the Purchase Plan. Under the Purchase Plan,
separate offering periods shall be no longer than 27 months. Under the current offering adopted pursuant to the
Purchase Plan, each offering period is 24 months, which is divided into four purchase periods of 6 months.
Employees are eligible to participate if they are employed by the Company or an affiliate of the Company designated
by the Board. Employees who participate in an offering may have up to 10% of their earnings withheld pursuant to the
Purchase Plan and applied on specified dates determined by the Board to the purchase of shares of common stock. The
Board may increase this percentage at its discretion, up to 15%. The price of common stock purchased under the Purchase
Plan will be equal to the lower of the fair market value of the common stock on the commencement date of each offering
period or 85% at the fair market value of the common stock on the relevant purchase date. Employees may end their
participation in the offering at any time during the offering period, and participation ends automatically on termination of
employment with the Company and in each case their contributions are refunded.
The following summarizes the transactions under the 1998 Plan, 2000 Plan and Directors Plan:
Options
Available for
Grant
Options
Outstanding
Weighted
Average
Price Per
Share
Balances, January 30, 2000 ..................................... 8,779,656 39,382,800 $ 2.75
Authorized .............................................. 24,487,914 — —
Granted ................................................ (21,854,750) 21,854,750 20.20
Exercised ............................................... — (9,020,610) 1.85
Cancelled ............................................... 1,667,584 (1,667,584) 7.37
Balances, January 28, 2001 ..................................... 13,080,404 50,549,356 10.30
Authorized .............................................. 9,954,182 — —
Granted ................................................ (15,159,700) 15,154,700 38.14
Exercised ............................................... — (12,282,958) 6.87
Cancelled ............................................... 1,541,369 (1,541,369) 13.90
Balances, January 27, 2002 ..................................... 9,416,255 51,879,729 19.14
Authorized .............................................. 13,957,063 —
Granted ................................................ (8,522,650) 8,522,650 28.09
Shares of common stock issued in exchange for stock options ..... (3,815,069) — —
Exercised ............................................... — (3,816,695) 4.62
Cancelled—unvested (1) ................................... 18,067,604 (18,067,604) 36.53
Cancelled—vested (2) ..................................... 2,882,376 (2,882,376) 32.51
Balances, January 26, 2003 ..................................... 31,985,579 35,635,704 $12.93
(1) Includes 16,193,886 unvested stock options cancelled in exchange for shares of common stock.
(2) Includes 2,649,607 vested stock options cancelled in exchange for shares of common stock.
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