Tesla 2016 Annual Report Download - page 90
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Please find page 90 of the 2016 Tesla annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.PlanwillbereturnedtosuchParticipantor,inthecaseofhisorherdeath,tothepersonorpersonsentitledtheretounderSection15,andsuchParticipant’soption
willbeautomaticallyterminated.
12.Interest.NointerestwillaccrueonthepayrolldeductionsofaParticipantinthePlan.
13.Stock.
(a)SubjecttoadjustmentuponchangesincapitalizationoftheCompanyasprovidedinSection19hereof,themaximumnumberofshares
ofCommonStockwhichwillbemadeavailableforsaleunderthePlanwillbe1,666,666shares,plusanannualincreasetobeaddedonthefirstdayofeachFiscal
Yearbeginningwiththe2011FiscalYear,equaltotheleastof(i)1,000,000sharesofCommonStock,(ii)onepercent(1%)oftheoutstandingsharesofCommon
Stockonsuchdate,or(iii)anamountdeterminedbytheAdministrator.
(b)Untilthesharesareissued(asevidencedbytheappropriateentryonthebooksoftheCompanyorofadulyauthorizedtransferagent
oftheCompany),aParticipantwillonlyhavetherightsofanunsecuredcreditorwithrespecttosuchshares,andnorighttovoteorreceivedividendsoranyother
rightsasastockholderwillexistwithrespecttosuchshares.
(c)SharesofCommonStocktobedeliveredtoaParticipantunderthePlanwillberegisteredinthenameoftheParticipantorinthename
oftheParticipantandhisorherspouse.
14.Administration.ThePlanwillbeadministeredbytheBoardoraCommitteeappointedbytheBoard,whichCommitteewillbeconstitutedto
complywithApplicableLaws.TheAdministratorwillhavefullandexclusivediscretionaryauthoritytoconstrue,interpretandapplythetermsofthePlan,to
determineeligibilityandtoadjudicatealldisputedclaimsfiledunderthePlan.Everyfinding,decisionanddeterminationmadebytheAdministratorwill,tothe
fullextentpermittedbylaw,befinalandbindinguponallparties.NotwithstandinganyprovisiontothecontraryinthisPlan,theAdministratormayadoptrulesor
proceduresrelatingtotheoperationandadministrationofthePlantoaccommodatethespecificrequirementsoflocallawsandproceduresforjurisdictionsoutside
of the United States. Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding
eligibilitytoparticipate,thedefinitionofCompensation,handlingofpayrolldeductions,makingofcontributionstothePlan(including,withoutlimitation,informs
otherthanpayrolldeductions),establishmentofbankortrustaccountstoholdpayrolldeductions,paymentofinterest,conversionoflocalcurrency,obligationsto
pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates which vary with local
requirements.
15.DesignationofBeneficiary.
(a) A Participant may file a designation of a beneficiary who is to receive any shares of Common Stock and cash, if any, from the
Participant’saccountunderthePlanintheeventofsuchParticipant’sdeathsubsequenttoanExerciseDateonwhichtheoptionisexercisedbutpriortodeliveryto
suchParticipantofsuchsharesandcash.Inaddition,aParticipantmayfileadesignationofabeneficiarywhoistoreceiveanycashfromtheParticipant’saccount
underthePlanintheeventofsuchParticipant’sdeathpriortoexerciseoftheoption.IfaParticipantismarriedandthedesignatedbeneficiaryisnotthespouse,
spousalconsentwillberequiredforsuchdesignationtobeeffective.
(b)SuchdesignationofbeneficiarymaybechangedbytheParticipantatanytimebynoticeinaformdeterminedbytheAdministrator.In
theeventofthedeathofaParticipantandintheabsenceofabeneficiaryvalidlydesignatedunderthePlanwhoislivingatthetimeofsuchParticipant’sdeath,the
Companywilldeliver such shares and/orcashtothe executor oradministratorof the estateoftheParticipant, orifnosuchexecutor or administratorhasbeen
appointed(totheknowledgeoftheCompany),theCompany,initsdiscretion,maydeliversuchsharesand/orcashtothespouseortoanyoneormoredependents
orrelativesoftheParticipant,orifnospouse,dependentorrelativeisknowntotheCompany,thentosuchotherpersonastheCompanymaydesignate.
(c)AllbeneficiarydesignationswillbeinsuchformandmannerastheAdministratormaydesignatefromtimetotime.