(Tesla's proxy statements indicate that Mr. Musk was provided an annual salary in the range of $33,000 to $50,000 during that five-year periodapparently to comply with minimum wage requirements under California law. At formation, founders often ask us for recommendations regarding terms and structure of their companies' equity incentive plans. Digital Assets - You Can't Take Them With You Top Five Reasons You Should Mediate Your Dispute Restricted Stock Units may be granted at any time and from time to time as determined by the Board is replaced during any twelve (12)month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. Each Option will be designated in the Award Agreement as either an Incentive Stock Option Payment of the aggregate Exercise Price will be by any of the The per Share exercise price for the Shares to be issued pursuant to exercise of an tesla equity incentive plan - ac79002-21336.agiuscloud.net Tesla 401K Plan, reported anonymously by Tesla employees. to approve forms of Award Agreements for use under the Plan; to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted Term of Plan. CEO Elon Musk said on Wednesday that Tesla would build a gigafactory in the northern state of Nuevo Leon, which local officials said could bring investment of up to $10 billion and create 10,000 jobs. It did not reveal a new vehicle, but it unveiled some of its big-picture ideas on climate change. The purposes of this Plan are: to attract and retain the best available personnel to ensure the Companys success and accomplish the be subject to such Performance Units/Shares. Stock Appreciation Right means an Award, granted alone or in connection with an Option, that (b) Method of Exercise. Withholding Requirements. forfeited to the Company, such dividend equivalents shall also be forfeited. withheld. Removal of Restrictions. Subsidiary means a subsidiary corporation, whether now or hereafter existing, as Participating MLPs include Groton, Ipswich, Marblehead, Sterling, Shrewsbury, South Hadley, Wakefield and West Boylston. TESLA, INC. 2019 EQUITY INCENTIVE PLAN. At the time an Option is granted, the Administrator will fix the Glassdoor is your resource for information about the Equity Incentive Plan benefits at Tesla. a part of this document. 8. Example: Tesla Powerwall battery cost in California Equity is often granted in combination with a base salary component in cash. to make all other determinations deemed necessary or advisable for administering the Plan. manner and to the degree required under Applicable Laws, and will continue in effect for a term of ten (10)years from the date of such approval, unless terminated earlier under Section18 of the Plan. TESLA, INC. 2019 EQUITY INCENTIVE PLAN 1. amount would have been attained upon the exercise of such Award or realization of the applicable Participants rights thereunder, then such Award may be terminated by the Company without payment), or (2)such Awards will be replaced with Return of Restricted Stock to Company. In the event of a merger, consolidation or similar transaction directly or The Administrator, in its discretion, may accelerate the vesting of the balance, or some lesser portion of The Administrator, in its sole discretion, may only settle earned Restricted Stock Units in cash, Shares, or a combination of both. foregoing, the occurrence of any event shall not be deemed a Change in Control: (i)with respect to any Award that is subject to Code Section409A unless such event qualifies as a change in control event within the meaning of Code provided that the Board shall not amend the no-Repricing provision in Section4(b). On Monday, a Delaware judge ordered Tesla to turn over documents as part of a shareholder lawsuit over Musk's 2018 executive compensation plan. If an Award expires or becomes unexercisable without having been exercised in full or, entered into by the Company or Parent or any of its Subsidiaries shall not reduce the number of Shares available for issuance under the Plan. Tesla stock slumped as much as 8% on Thursday as investors appeared disappointed by a lack of details from CEO Elon Musk about new models, including Musk's previously stated goal of a $25,000 car, during the company's "Master Plan Part 3" presentation. Background of company stock units, RSUs and RSAs. For purposes of Incentive Stock Options, no such leave may exceed three (3)months, unless reemployment upon expiration of The number of Shares with respect to which the Stock Appreciation Right is exercised. At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise These programs are subject to change or end at any time, and are outside of Teslas control. Participants Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration If a Participant ceases to be a Service Provider paid, settled or deferred in a manner that will meet the requirements of Code Section409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section409A. Section409A, except as otherwise determined in the sole discretion of the Administrator. Unless otherwise provided by the Administrator, within the meaning of Code Section409A and (ii)the Participant is a specified employee as defined in Code Section409A(a)(2)(B)(i), in each case as determined by the Company in accordance with its procedures, by which determinations Fully subscribed. This Award Agreement constitutes the entire understanding of the parties on the subjects covered. impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Option will terminate, and the Shares covered by such Option will revert to the Plan. Any dividend equivalents this Award Agreement. Cancellation of Performance Units/Shares. The following models currently qualify for federal tax credits for eligible buyers who meet AGI limitations: Price caps set by the federal government are subject to change. Investor Day streaming live on Twitter & YouTube at 3pm CT tomorrow . A properly structured equity incentive compensation plan can help innovative companies stand out from their competitors when it comes to hiring and retaining key talent. Payment of earned Performance Units/Shares will exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 1. Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares. View additional details on eligibility and redemption. GA Incentives is a dynamic, fully automated technology platform that calculates income, social, and regional tax withholding for equity awards delivered to internationally mobile and domestic employees in real timesaving time and increasing accuracy. Tesla, Inc. 2019 Equity Incentive Plan Tesla, Inc. 2019 Employee Stock Purchase Plan (Full title of the plan) Elon Musk Chief Executive Officer Tesla, Inc. 3500 Deer Creek Road Palo Alto, California 94304 (650) 681-5000 (Name, address and telephone number, including area code, of agent for service) Copies to: 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. Equity incentive plan basics. Administrator Authority. Anticipation had built for days. Outside Director Awards. covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of any Period of Restriction or at such other time as the Administrator may determine. A Stock Appreciation Right granted under the Plan will expire You'll be in better shape at tax time because you get a deduction when the employee recognizes ordinary income. (i)income recognition by Participant prior to the exercise of the option, (ii)an additional twenty percent (20%)federal income tax, and (iii)potential penalty and interest charges. Any Option granted hereunder will be exercisable Subject to the provisions of the Plan, and in the case of a Committee, The Administrator may Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. other such incentives. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12)months following the Participants termination. Stage. (b) Notice of Compliance with Code Section409A. The Company may, in its sole discretion, decide to deliver any documents related to Options awarded under the Participant will be solely responsible for Participants costs related to such a determination. Charitable Gift Matching. Effect of Amendment or Termination. dividend equivalent rights shall be paid or accrued on Stock Appreciation Rights. After the Administrator determines that it will grant Restricted Stock exercisable by delivery of an exercise notice, in the form attached as Exhibit B (the Exercise Notice) or in a manner and pursuant to such procedures as the Administrator may determine, which will state the election to exercise terms used and not defined in this Award Agreement will have the meaning set forth in the Plan. The total cost is exclusive of taxes and fees at time of delivery. Participant further agrees to notify the having jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any state, federal or non U.S. law or under the rules and regulations of the Securities and Exchange Commission, the Equity Incentive Plan. Section7 of the Plan, or issued pursuant to the early exercise of an Option. The company specializes in the production of electric vehicles (EVs) and may be regarded as a pioneer in this niche. Plan means this 2019 Equity Incentive Plan. Shares will not be issued pursuant to the exercise of an Award unless the exercise of What Equity Incentive Plan benefit do Tesla employees get? Several states and local utilities offer electric vehicle and solar incentives for customers. non-discriminatory standards adopted by the Administrator from time to time. purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. Participant agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share on the date of grant, Be sure to visit the specific programs website for the most up-to-date information on availability, eligibility and redemption requirements. withholding to be paid in connection with the exercise of the Option. Restricted Stock means Shares issued pursuant to a Restricted Stock award under Stock Appreciation Right Agreement. By accepting this Award, Participant expressly warrants that he or In the event of a conflict between one or more provisions of this Award Agreement and one or more provisions of the Plan, the provisions of the Plan will govern. Notwithstanding the foregoing, the rules applicable to Options set forth in Section6(d) relating to the maximum term and This Exercise Notice, the Plan and the Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company Ultimately, Musk could earn up to $55.8 billion in stock and awards, if Tesla's market cap reaches $650 billion. Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan. vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. engaged in a breach of confidentiality, or an unauthorized disclosure or use of inside information, customer lists, trade secrets or other confidential information of the Company or any of its Subsidiaries; (c) during the Service Period or at any time thereafter, Participant has committed or engaged in an act of theft, embezzlement or fraud, or (c) consideration Tesla Equity Incentive Plan 123 employees reported this benefit 5.0 3 Ratings Available to US-based employees Change location Employee Comments Showing 1-3 of 3 Jan 10, 2022 5.0 Current Software Engineer in San Jose, CA, California There are manny many options Helpful Report Jul 11, 2018 5.0 No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section13 of the Plan. Company means Tesla, Inc., a Delaware corporation, or any successor thereto. For the most up-to-date information, review the sponsoring entitys website directly for details on eligibility, redemption and program details. 2. The vehicle price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees. PSAV Holdings LLC Phantom Unit Appreciation Plan and Award Agreement. The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Incentive Stock Option means an Option that by its terms qualifies and is intended to Upon meeting the applicable vesting criteria, the Participant will be Equity plans should also address any adjustments to reflect special dividends, which may be declared to allow the buyer to realize a return without a full exit. and conditions of this Award Agreement, the terms and conditions of the Plan will prevail. Rights as a Stockholder. Lapsed Awards. 16. Address for LLC Long-Term Incentive Plan. Leaves of Absence/Transfer Between Locations. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized Eligibility. Unless and until Shares are issued (as evidenced by the appropriate entry on Equipment purchased to replace older, equivalent electric equipment does not apply. These awards can represent a significant part of your total compensationand should be taken into consideration as you build your overall financial plan. conducted in the courts of San Mateo County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Option is made and/or to be performed. In the event that any provision in this Award Agreement will be held invalid or Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchasers Subject to Section18 of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms Tesla held an investor day on Wednesday. exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii)full payment for the Shares with respect to which the Option is exercised (together with applicable withholding Department. However, if this Option is intended to be an ISO, to the extent herein by reference. subject to all of the terms and conditions in this Award Agreement and the Plan, which is incorporated herein by reference. Purposes of the Plan. But, due to COVID-19's impact, many companies are considering using discretion to determine any earned awards following the end of the . 2003 Equity Incentive Plan - Tesla Motors Inc. (Jul 17, 2003) 2003 . TERMS AND CONDITIONS OF STOCK OPTION GRANT. defined meanings in this Stock Option Award Agreement (the Award Agreement). has been designated by the Participant, then such Option may be exercised by the personal representative of the Participants estate or by the person(s) to whom the Option is transferred pursuant to the Participants will or in accordance all of his or her outstanding Options and Stock Appreciation Rights (or portion thereof) that are not assumed or substituted for, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted 2. Administrators ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. after the date(s) determined by the Administrator and set forth in the Award Agreement. Appreciation Rights granted to any Service Provider. The Company hereby grants to the Participant named in the Notice of Grant attached as Part I of this Award Equity incentive plans can generate leveraged tax deductions, which are deductions over the actual cash outlay. of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit or Performance Share, for each Share Exhibit 4.4. Until March 2023, customers who take delivery of a qualified new Tesla vehicle and meet all federal requirements are eligible for a tax credit up to $7,500. Grant of Restricted Stock. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section409A the Award will be granted, However, all such dividends or distributions, whether paid in Shares or cash, will be subject to the same restrictions on Unless and until Shares are issued (as evidenced by the appropriate entry on granted an Option to purchase Common Stock of Tesla, Inc. (the Company), subject to the terms and conditions of the Plan and this Award Agreement, as follows: Subject to any acceleration provisions contained in the Plan or set forth below, this Option may be exercised, in whole or in part, in The purposes of the [ Current Year ] Equity Incentive Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company's business. Plan with respect to such Awards. In taking any of the actions permitted under this Section13(c), the Administrator will not be obligated to treat all Purchaser has received, read and understood the Plan and the Award Agreement and agrees to abide by and be bound by their terms and conditions. Exchange Act means the Securities Exchange Act of 1934, as amended. This Award Agreement is subject to all terms and provisions of the Plan. Shares of Restricted Stock as it may deem advisable or appropriate. Legal Compliance. 3. foreign or other taxes (including the Participants FICA obligation) required to be withheld with respect to such Award (or exercise thereof). Earning of Performance Units/Shares. According to sources talking to Electrek, most new hires are given between $20,000 and $40,000 of restricted stocks that vest over three years, starting a year after they start working at. No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Award Agreement. exchange and to obtain any such consent or approval of any such governmental authority. 2. interests with the Companys stockholders, and. In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good Participant agrees that Participant may be subject to income tax Learn about Tesla Equity Incentive Plan, including a description from the employer, and comments and ratings provided anonymously by current and former Tesla employees. to the Service Providers. Code Section422. policy of the Company currently in effect or that may be established and/or amended from time to time (the Clawback Policy), or other forfeiture, return or reimbursement obligations arising under Applicable Laws. Grant of Option. An incentive a reward for . Until March 2023, customers who take delivery of a qualified new Tesla vehicle and meet all federal requirements are eligible for a tax credit up to $7,500. Available to US-based employeesChange location. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section13 of the Plan. If the Administrator makes Form and Timing of Payment. Notwithstanding anything to the contrary in the Plan or this Award Agreement, the Company reserves the right to revise this Award Agreement as it deems necessary or This program offers a similar rebate-style incentive to California's SGIP program, with the state currently offering a $250 per kilowatt rebate to Long Island residents. Exercise Price. Notwithstanding anything in this Section13(c) to the contrary, if a payment under an Award Agreement is subject to Code Section409A The bill would provide some of the most generous EV . For example, Kiera is responsible for $80,000 . The purposes of this Plan are: to attract and retain the best available personnel to ensure the Company's success and accomplish the Company's goals, to incentivize Employees, Directors and Consultants with long-term equity- based compensation to align Examples of Equity Incentive Plan in a sentence. When the Company grants a Restricted Stock Award (discussed below) it will need to: (a) take a Board Action; (b) enter into a Restricted Stock Agreement and (c) provide a Notice of Restricted Stock Grant. part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section10. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED The aggregate of any payments that otherwise would have been paid to the Participant during the Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Share Reserve. Tesla is asking shareholders for approval to issue 12.5 million new shares as part of a new equity incentive plan. Stockholder Approval. Participant. 1. The structure is. and to the extent (i)any portion of any payment, compensation or other benefit provided to a Participant pursuant to the Plan in connection with his or her employment termination constitutes nonqualified deferred compensation If a Participant dies while a Service Provider, the Option may be exercised transactions, other than to any entity of which more than 50% of the total voting power is owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the voting power of the stock of the upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. corporations corporate structure following the applicable transaction will not be deemed to invalidate an otherwise valid Award assumption. this Section6(e)(i) of the Plan, Options may be granted with a per Share exercise price less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner