Tesla 2016 Annual Report Download - page 86

(p) “ Fair Market Value ” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock
determinedasfollows:
(i)IftheCommonStockislistedonanyestablishedstockexchangeoranationalmarketsystem,includingwithoutlimitation
theNewYorkStockExchange,theNasdaqGlobalSelectMarket,theNasdaqGlobalMarketortheNasdaqCapitalMarketofTheNasdaqStockMarket,itsFair
MarketValuewillbetheclosingsalespriceforsuchstock(ortheclosingbid,ifnosaleswerereported)asquotedonsuch exchange orsystem onthedateof
determination,asreportedinTheWallStreetJournalorsuchothersourceastheAdministratordeemsreliable;
(ii) If the Common Stock is regularly quoted bya recognized securities dealer but selling prices are not reported, its Fair
MarketValuewillbethemeanoftheclosingbidandaskedpricesfortheCommonStockonthedateofdetermination,asreportedinTheWallStreetJournalor
suchothersourceastheAdministratordeemsreliable;
(iii)IntheabsenceofanestablishedmarketfortheCommonStock,theFairMarketValuethereofwillbedeterminedingood
faithbytheAdministrator;or
(iv)ForpurposesoftheOfferingDate ofthefirstOfferingPeriodunderthePlan,theFairMarketValuewillbetheinitial
pricetothepublicassetforthinthefinalprospectusincludedwithintheregistrationstatementonFormS-1filedwiththeSecuritiesandExchangeCommissionfor
theinitialpublicofferingoftheCommonStock(the“RegistrationStatement”).
(q)“FiscalYear”meansthefiscalyearoftheCompany.
(r)“NewExerciseDate”meansanewExerciseDatesetbyshorteninganyOfferingPeriodtheninprogress.
(s)“OfferingDate”meansthefirstTradingDayofeachOfferingPeriod.
(t)“OfferingPeriods”meanstheperiodsofapproximatelysix(6)monthsduringwhichanoptiongrantedpursuanttothePlanmaybe
exercised, (i) commencing on the first Trading Day on or after March 1 of each year and terminating on the last Trading Day in the subsequent August,
approximatelysix(6)monthslater,and(ii)commencingonthefirstTradingDayonorafterSeptember1ofeachyearandterminatingonthelastTradingDayin
thesubsequentFebruary,approximately six(6)monthslater.Notwithstandingthepreceding,thefirstOfferingPeriodunderthePlancommencedwiththefirst
TradingDay on orafter thedate on whichthe Securities and Exchange Commissiondeclared theCompany’s Registration Statement effective and will endon
February22,2011.ThenextOfferingPeriodunderthePlanwillbeginonMarch1,2011.ThedurationandtimingoffutureOfferingPeriodsmaybechanged
pursuanttoSections4and20.
(u)“Parent”meansa“parentcorporation,”whethernoworhereafterexisting,asdefinedinSection424(e)oftheCode.
(v)“Participant”meansanEligibleEmployeewhoparticipatesinthePlan.
(w)“Plan”meansthisTeslaMotors,Inc.2010EmployeeStockPurchasePlan.
(x)“PurchasePrice”meansanamountequaltoeighty-fivepercent(85%)oftheFairMarketValueofashareofCommonStockonthe
OfferingDateorontheExerciseDate,whicheverislower;providedhowever,thatthePurchasePricemaybedeterminedforsubsequentOfferingPeriodsbythe
Administrator,initsdiscretion,subjecttocompliancewithSection423oftheCodeorpursuanttoSection20.
(y)“Subsidiary”meansa“subsidiarycorporation,”whethernoworhereafterexisting,asdefinedinSection424(f)oftheCode.