Tesla 2016 Annual Report Download - page 85

valuemeansthevalueoftheassetsoftheCompany,orthevalueoftheassetsbeingdisposedof,determinedwithoutregardtoanyliabilitiesassociatedwithsuch
assets.
Forpurposesofthisdefinition, persons will beconsideredtobeactingas a group iftheyareownersofacorporation that
entersintoamerger,consolidation,purchaseoracquisitionofstock,orsimilarbusinesstransactionwiththeCompany.
(e)“Code”meanstheInternalRevenueCodeof1986,asamended.ReferencetoaspecificsectionoftheCodeorregulationthereunder
shallincludesuchsectionorregulation,anyvalidregulationpromulgatedundersuchsection,andanycomparableprovisionofanyfuturelegislationorregulation
amending,supplementingorsupersedingsuchsectionorregulation.
(f)“Committee”meansacommitteeoftheBoardappointedinaccordancewithSection14hereof.
(g)“CommonStock”meansthecommonstockoftheCompany.
(h)“Company”meansTeslaMotors,Inc.,aDelawarecorporation.
(i)“Compensation”meansanEligibleEmployee’sregularandrecurringstraighttimegrossearnings,paymentsforovertimeandshift
premium,butexclusiveofpaymentsforincentivecompensation,bonusesandothersimilarcompensation.TheAdministrator,initsdiscretion,may,onauniform
andnondiscriminatorybasis,establishadifferentdefinitionofCompensationforasubsequentOfferingPeriod.
(j)“DesignatedSubsidiary”meansanySubsidiarythathasbeendesignatedbytheAdministratorfromtimetotimeinitssolediscretion
aseligibletoparticipateinthePlan.
(k)“Director”meansamemberoftheBoard.
(l)“EligibleEmployee”meansanyindividualwhoisacommonlawemployeeofanEmployerandiscustomarilyemployedforatleast
twenty(20)hoursperweekandmorethanfive(5)monthsinanycalendaryearbytheEmployer.ForpurposesofthePlan,theemploymentrelationshipwillbe
treatedascontinuingintactwhiletheindividualisonsickleaveorotherleaveofabsencethattheEmployerapproves.Wheretheperiodofleaveexceedsthree(3)
months and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship will be deemed to have
terminatedthree(3)monthsandone(1)dayfollowingthecommencementofsuchleave.TheAdministrator,initsdiscretion,fromtimetotimemay,priortoan
OfferingDateforalloptionstobegrantedonsuchOfferingDate,determine(onauniformandnondiscriminatorybasis)thatthedefinitionofEligibleEmployee
willorwillnotincludeanindividualifheorshe:(i)hasnotcompletedatleasttwo(2)yearsofservicesincehisorherlasthiredate(orsuchlesserperiodoftime
asmaybedeterminedbytheAdministratorinitsdiscretion),(ii)customarilyworksnotmorethantwenty(20)hoursperweek(orsuchlesserperiodoftimeasmay
bedeterminedbytheAdministratorinitsdiscretion),(iii)customarilyworksnotmorethanfive(5)monthspercalendaryear(orsuchlesserperiodoftimeasmay
bedeterminedbytheAdministratorinitsdiscretion),(iv)isanexecutive,officerorothermanager,or(v)isahighlycompensatedemployeeunderSection414(q)
oftheCode.
(m)“Employer”meansanyoneoralloftheCompanyanditsDesignatedSubsidiaries.WithrespecttoaparticularEligibleEmployee,
EmployermeanstheCompanyorDesignatedSubsidiary,asthecasemaybe,thatdirectlyemploystheEligibleEmployee.
(n) “ Exchange Act ” means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated
thereunder.
(o)“ExerciseDate”meansthelastTradingDayinFebruaryandAugustofeachyear.Notwithstandingthepreceding,thefirstExercise
DateunderthePlanwillbeFebruary22,2011.