Tesla 2016 Annual Report Download - page 92

amountsthencreditedtoParticipants’accountswhichhavenotbeenusedtopurchasesharesofCommonStockwillbereturnedtotheParticipants(withoutinterest
thereon,exceptasotherwiserequiredunderlocallaws)assoonasadministrativelypracticable.
(b) Without stockholder consent and without limiting Section 20(a), the Administrator will be entitled to change the Offering Periods,
limitthefrequencyand/ornumberofchangesintheamountwithheldduringanOfferingPeriod,establishtheexchangeratioapplicabletoamountswithheldina
currencyotherthanU.S.dollars,permitpayrollwithholdinginexcessoftheamountdesignatedbyaParticipantinorder toadjustfordelaysormistakesinthe
Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the
Participant’sCompensation,andestablishsuchotherlimitationsorproceduresastheAdministratordeterminesinitssolediscretionadvisablewhichareconsistent
withthePlan.
(c) In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting
consequences,theAdministratormay,initsdiscretionand,totheextentnecessaryordesirable,modify,amendorterminatethePlantoreduceoreliminatesuch
accountingconsequenceincluding,butnotlimitedto:
(i)amending the Planto conform withthe safe harbordefinition underFinancial Accounting StandardsBoard Accounting
StandardsCodificationTopic718,includingwithrespecttoanOfferingPeriodunderwayatthetime;
(ii)alteringthePurchasePriceforanyOfferingPeriodincludinganOfferingPeriodunderwayatthetimeofthechangein
PurchasePrice;
(iii)shorteninganyOfferingPeriodbysettingaNewExerciseDate,includinganOfferingPeriodunderwayatthetimeofthe
Administratoraction;
(iv)reducingthemaximumpercentageofCompensationaParticipantmayelecttosetasideaspayrolldeductions;and
(v)reducingthemaximumnumberofSharesaParticipantmaypurchaseduringanyOfferingPeriod.
SuchmodificationsoramendmentswillnotrequirestockholderapprovalortheconsentofanyPlanParticipants.
21.Notices.AllnoticesorothercommunicationsbyaParticipanttotheCompanyunderorinconnectionwiththePlanwillbedeemedtohavebeen
dulygivenwhenreceivedintheformandmannerspecifiedbytheCompanyatthelocation,orbytheperson,designatedbytheCompanyforthereceiptthereof.
22.ConditionsUponIssuanceofShares.SharesofCommonStockwillnotbeissuedwithrespecttoanoptionunlesstheexerciseofsuchoptionand
theissuanceanddeliveryofsuchsharespursuanttheretowillcomplywithallapplicableprovisionsoflaw,domesticorforeign,including,withoutlimitation,the
SecuritiesActof1933,asamended,theExchangeAct,therulesandregulationspromulgatedthereunder,andtherequirementsofanystockexchangeuponwhich
thesharesmaythenbelisted,andwillbefurthersubjecttotheapprovalofcounselfortheCompanywithrespecttosuchcompliance.
Asaconditiontotheexerciseofanoption,theCompanymayrequirethepersonexercisingsuchoptiontorepresentandwarrantatthetimeofany
suchexercisethatthesharesarebeingpurchasedonlyforinvestmentandwithoutanypresentintentiontosellordistributesuchsharesif,intheopinionofcounsel
fortheCompany,sucharepresentationisrequiredbyanyoftheaforementionedapplicableprovisionsoflaw.