Tesla 2016 Annual Report Download - page 91

16.Transferability.NeitherpayrolldeductionscreditedtoaParticipant’saccountnoranyrightswithregardtotheexerciseofanoptionortoreceive
sharesofCommonStockunderthePlanmaybeassigned,transferred,pledgedorotherwisedisposedofinanyway(otherthanbywill,thelawsofdescentand
distributionorasprovidedinSection15hereof)bytheParticipant.Anysuchattemptatassignment,transfer,pledgeorotherdispositionwillbewithouteffect,
exceptthattheCompanymaytreatsuchactasanelectiontowithdrawfundsfromanOfferingPeriodinaccordancewithSection10hereof.
17.UseofFunds.TheCompanymayuseallpayrolldeductionsreceivedorheldbyitunderthePlanforanycorporatepurpose,andtheCompany
willnotbeobligatedtosegregatesuchpayrolldeductions.UntilsharesofCommonStockareissued,Participantswillonlyhavetherightsofanunsecuredcreditor
withrespecttosuchshares.
18.Reports.IndividualaccountswillbemaintainedforeachParticipantinthePlan.StatementsofaccountwillbegiventoparticipatingEligible
Employees at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock
purchasedandtheremainingcashbalance,ifany.
19.Adjustments,Dissolution,Liquidation,MergerorChangeinControl.
(a)Adjustments.Intheeventthatanydividendorotherdistribution(whetherintheformofcash,CommonStock,othersecurities,or
otherproperty),recapitalization,stocksplit,reversestocksplit,reorganization,merger,consolidation,split-up,spin-off,combination,repurchase,orexchangeof
Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock occurs, the
Administrator,inordertopreventdilutionorenlargementofthebenefitsorpotentialbenefitsintendedtobemadeavailableunderthePlan,will,insuchmanneras
itmaydeemequitable,adjustthenumberandclassofCommonStockthatmaybedeliveredunderthePlan,thePurchasePricepershareandthenumberofshares
ofCommonStockcoveredbyeachoptionunderthePlanwhichhasnotyetbeenexercised,andthenumericallimitsofSections7and13.
(b)  Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, any Offering Period then in
progresswillbeshortenedbysettingaNewExerciseDate,andwillterminateimmediatelypriortotheconsummationofsuchproposeddissolutionorliquidation,
unless provided otherwise by the Administrator.  The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation.  The
AdministratorwillnotifyeachParticipantinwriting,atleast ten(10)businessdayspriortotheNewExerciseDate,that theExerciseDatefortheParticipant’s
optionhasbeenchangedtotheNewExerciseDateandthattheParticipant’soptionwillbeexercisedautomaticallyontheNewExerciseDate,unlesspriortosuch
datetheParticipanthaswithdrawnfromtheOfferingPeriodasprovidedinSection10hereof.
(c)  Merger or Change in Control .  In the event of a merger or Change in Control, each outstanding option will be assumed or an
equivalentoptionsubstitutedbythesuccessorcorporationoraParentorSubsidiaryofthesuccessorcorporation.Intheeventthatthesuccessorcorporationrefuses
toassumeorsubstitutefortheoption,theOfferingPeriodwithrespecttowhichsuchoptionrelateswillbeshortenedbysettingaNewExerciseDateandwillend
ontheNewExerciseDate.TheNewExerciseDatewilloccurbeforethedateoftheCompany’sproposedmergerorChangeinControl.TheAdministratorwill
notifyeachParticipantinwritingpriortotheNewExerciseDate,thattheExerciseDatefortheParticipant’soptionhasbeenchangedtotheNewExerciseDateand
thattheParticipant’soptionwillbeexercisedautomaticallyontheNewExerciseDate,unlesspriortosuchdatetheParticipanthaswithdrawnfromtheOffering
PeriodasprovidedinSection10hereof.
20.AmendmentorTermination.
(a) The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any
reason.IfthePlanisterminated,theAdministrator,initsdiscretion,mayelecttoterminatealloutstandingOfferingPeriodseitherimmediatelyoruponcompletion
ofthepurchaseofsharesofCommonStockonthenextExerciseDate(whichmaybesoonerthanoriginallyscheduled,ifdeterminedbytheAdministratorinits
discretion),ormayelecttopermitOfferingPeriodstoexpireinaccordancewiththeirterms(andsubjecttoanyadjustmentpursuanttoSection19).IftheOffering
Periodsareterminatedpriortoexpiration,all