Document:

EX-10.5

 Exhibit 10.5 

ALTAIR ENGINEERING INC. 

2001 NON-QUALIFIED STOCK OPTION PLAN 

(AS AMENDED AS OF APRIL 3, 2017) 
 1.
Purpose. The purpose of the Plan is to encourage and enable selected management and other employees of the Company who currently have rights under the Company’s Phantom Stock Plan, to acquire a proprietary interest in the Company
through the ownership of the Common Stock of the Company. The Company intends to use the Plan to retain and motivate Participants to attain exceptional levels of performance and provide Participants with an opportunity to participate in the
increased value of the Company which their efforts, initiative, and skill have helped produce. The Plan design enables the Company to grant to Participants Non-Qualified Stock Options to purchase shares of Common Stock of the Company. The Plan is
effective as of December 1, 2001. 
 2. Definitions. 

(a) “Board” shall mean the Board of Directors of the Company. 

(b) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(c) “Common Stock” shall mean the Class A common capital stock of the Company. 

(d) “Company” shall mean Altair Engineering Inc., a Michigan corporation and any Subsidiary of the Company. 

(e) “Employee” shall mean any individual who is employed, within the meaning of Section 3401 of the Code and the regulations
promulgated thereunder, by the Company. The Board shall be responsible for determining when an Employee’s period of employment is deemed to be continued during an approved leave of absence. 

(f) “Exchange Act” shall mean the Securities Exchange Act of 1934,as amended. 

(g) “Exercise Price” shall mean the price per Share at which an Option may be exercised, as determined by the Board and as specified
in the Participant’s Option Agreement. 
 (h) “Fair Market Value” shall mean the value of each Share determined as of any
specified date as follows: 
 (1) If the Shares are traded on any United States securities exchange, or if the Shares are not traded on any
United States securities exchange but are traded on any formal over-the-counter quotation system in general use in the United States, the value per Share shall be the closing price on such exchange or quotation system on the business day immediately
preceding such specified date; provided, however, that if no Shares are traded on the business day immediately preceding such specified date, the value per Share shall be the mean between the closing high bid and closing low asked quotations on the
business day immediately preceding such specified date; or 
 (2) If Paragraph (1) does not apply, the value per Share shall be
determined by the Board in accordance with Section 4(e) in good faith and based on uniform principles consistently applied. Such determination shall be conclusive and binding on all persons. 

(i) “Non-qualified Stock Option” means all of the Options granted pursuant to this Plan, which Options are not intended to be
qualified as incentive stock options under Section 422(b) of the Code. 
 (j) “Option” shall mean an option which is granted
pursuant to the Plan to purchase Shares of Common Stock. 
 (k) “Option Agreement” shall mean, with respect to each Option, the
signed written agreement between the Company and the Participant setting forth the terms and conditions of the Option. 
 (l)
“Participant” shall mean any individual to whom an Option has been granted or issued under the Plan. 

  

					
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 (m) “Plan” shall mean this Altair Engineering Inc. 2001 Non-qualified Stock Option
Plan. 
 (n) “Plan Year” shall mean the 12 consecutive month period coinciding with the Company’s fiscal year. 

(o) “Purchase Price” shall mean, at any specified time, the Exercise Price per Share multiplied by the number of Shares being
purchased pursuant to the exercise of an Option. 
 (p) “Securities Act” shall mean the Securities Act of 1933,as amended. 

(q) “Share” shall mean one authorized share of Common Stock. 

(r) “Subsidiary” shall mean any corporation or other business entity (other than the Company) in an unbroken chain of corporations
and/or other business entities beginning with the Company if, at the time of granting an Option, each of the corporations and/or other business entities (other than the last business entity in the unbroken chain) owns stock possessing at least 50%
of the total combined voting power of all classes of ownership in one of the other corporations and/or other business entities in such chain. 
 3.
Effective Date. The Plan was adopted by the Company effective as of December 1, 2001. 
 4. Administration. 

(a) Administration by the Board or the Committee. The Board shall administer the Plan in accordance with the provisions hereof. The
Board may appoint a committee (the “Committee”) to administer the Plan. If a Committee is appointed, the Committee shall have the powers and authority otherwise delegated to the Board in this Plan document. The Board may, from time to
time, increase or decrease the size of the Committee, fill vacancies however caused, remove members with or without cause, and disband the Committee and thereafter directly administer the Plan. The Company may engage a third party to administer
routine matters under the Plan, such as establishing and maintaining accounts for Participants and facilitating transactions by Participants pursuant to the Plan. 

(b) Powers of the Board. On behalf of the Company and subject to the provisions of the Plan, the Board shall have the authority and
discretion to: (i) Prescribe, amend and rescind rules and regulations relating to the Plan; (ii) Select Participants to receive Options; (iii) Determine the form and terms of Options; (iv) Determine the number of Shares or other
consideration subject to Options; (v) Determine whether Options will be granted singly, in combination or in tandem with, in replacement of, or as alternatives to, other Options under the Plan or any other incentive or compensation plan of the
Company; (vi) Construe and interpret the Plan, any Option Agreement and any other agreement or document executed pursuant to the Plan; (vii) Correct any defect or omission, or reconcile any inconsistency in the Plan, any Option or any
Option Agreement; (viii) Determine whether an Option has been earned; (ix) Authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Option as made by the Board; (x) With the
consent of the Participant, reprice, cancel and reissue, or otherwise adjust the terms of an Option previously issued to the Participant; and (xi) Make all other determinations deemed necessary or advisable for the administration of the Plan.
The interpretations and decisions made by the Board with regard to any question arising under the Plan shall be final and conclusive on all persons participating or eligible to participate in the Plan. 

(c) Conflicts of Interest. Members of the Board or the Committee who are either eligible for Options or have been granted an Option may
vote on any matters affecting the administration of the Plan or the grant of any Option pursuant to the Plan. However, no such member shall act upon the granting of an Option to himself or herself (unless such grant is part of a plan under which
Options are to be granted to a classification of Employees). In the event of cases such as those described in the preceding sentence, such member shall be counted in determining the existence of a quorum at a meeting of the Board or the Committee
but shall be excluded in determining the number of members voting or taking written action with respect to an Option granted to such member. 

(d) Board’s Interpretation of the Plan. The Board’s interpretation and construction of any provision of the Plan, of any
Option granted under the Plan, or of any Option Agreement shall be final and binding on all parties claiming an interest in an Option granted or issued under the Plan. No member of 

  

					
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the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan. 

(e) Board’s Determination of Fair Market Value. Notwithstanding anything contained herein to the contrary, the Board shall have the
sole and exclusive authority to determine, upon review of relevant information, the Fair Market Value of the Common Stock, subject to the provisions of the Plan and irrespective of whether the Board has appointed a Committee to administer the Plan.

 5. Eligibility for Participation. Plan Participants shall be limited to those Employees that are currently participants in the
Company’s Phantom Stock Plan. 
 6. Shares of Stock of the Corporation. 

(a) Shares Subject to This Plan. Stock with respect to which Options are granted or issued under this Plan shall be authorized but
unissued or reacquired Shares of the Company’s Common Stock. The aggregate number of Shares which may be issued under this Plan shall not exceed three million five hundred thousand (3,500,000) Shares, subject to adjustment under
Section 9. 
 (b) Adjustment of Shares. In the event of an adjustment described in Section 9, then (i) the number of
Shares reserved for issuance under the Plan, (ii) the Exercise Prices of and number of Shares subject to outstanding Options, and (iii) any other factor pertaining to outstanding Options shall be duly and proportionately adjusted, subject
to any required action by the Board or the shareholders of the Company and compliance with applicable securities laws; provided, however, that fractions of a Share shall not be issued but shall either be paid in cash at Fair Market Value or shall be
rounded up to the nearest Share, as determined by the Board. 
 (c) Options Not to Exceed Shares Available. The number of Shares
subject to Options which have been granted under this Plan at any time during the Plan Term shall not exceed the number of Shares authorized for issuance under the Plan. The number of Shares subject to an Option which expires, is canceled, is
forfeited or is terminated for any reason, shall again be available for issuance under the Plan. 
 7. Terms and Conditions of Options. 

(a) Option Agreement. Each Option shall be evidenced by a written Option Agreement which shall set forth the terms and conditions
pertaining to such Option, provided that all such terms shall be subject to and consistent with this Plan. An Option Agreement shall be in such form as the Board shall approve from time to time, which Option Agreements need not be identical. 

(b) Number of Shares Covered by an Option. Each Option Agreement shall state the number of Shares for which the Option is exercisable
and shall provide for the adjustment of such Shares in accordance with Section 9. 
 (c) Exercise of Options. A Participant may
exercise an Option only on or before the date on which the Option expires, as provided in Subsection (d) below. 
 (d) Term and Lapse
of Options. A Participant may exercise an Option to purchase Shares only on or before the date on which the term of the Option expires. Each Option Agreement shall set forth the term of the Option and the events described in the immediately
following sentence which will cause the Option to lapse or otherwise end, in whole or in part, as of an earlier date. An Option shall lapse on the first to occur of the following events: 

(i) The date determined under Section 7(i) for a Participant who ceases to be an Employee by reason of the Participant’s termination
of employment by the Company for Cause, unless the Board at its discretion extends such date before the applicable expiration date; 
 (ii)
The date determined under Section 7(j) for a Participant who ceases to be an Employee by reason of the Participant’s voluntary Termination of Employment with the Company, unless the Board at its discretion extends such date before the
applicable expiration date; 

  

					
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 (iii) The expiration date specified in the Participant’s Option Agreement. 

(e) Cause. For purposes of this Section 7, “Cause” shall be defined as the occurrence of any one or more of the following
acts or events: (1) fraud, misappropriation, embezzlement, or other act of material dishonesty against the Company; (2) any act or acts by Participant with respect to Company which constitute a breach of Participant’s fiduciary duties
or duties of honesty, good faith and loyalty (including derogatory statements regarding the Company, but excluding statements made in connection with any legal action filed against the Company); (3) any act by Participant which is intentionally
damaging to the Company; (4) commission by Participant of a felony or misdemeanor involving moral turpitude; (5) a material breach by Participant of any provision of this Agreement within his control or failure of Participant to properly
and diligently perform his duties as an employee, officer and/or director of the Company, which violation is not remedied within three (3) days after notice from Company specifying such violation; (6) alcohol or drug abuse affecting in any
material respect the performance by the Participant of his duties and responsibilities as an employee, officer and/or director of the Company; (7) commission of any other act or acts which substantially impairs the reputation and standing of
Company with its customers or the community at large; and (8) any act or circumstance constituting “cause” for termination under applicable statutory or common law. 

(f) Exercise Price. The Exercise Price under each Non-qualified Stock Option shall be specified by the Board, in its sole and absolute
discretion. 
 (g) Medium and Time of Payment of Purchase Price. A Participant exercising an Option shall pay the Purchase Price of
the Shares to which such exercise pertains in full in cash (in U.S. dollars) as a condition of such exercise, unless the Board at its discretion allows the Participant to pay the Purchase Price in any manner allowable under Section 13, so long
as the sum of cash so paid and such other consideration equals the Purchase Price. 
 (h) Nontransferability of Options. An Option
granted to a Participant shall, during the lifetime of the Participant, be exercisable only by the Participant or the Participant’s conservator or legal representative and shall not be assignable or transferable. In the event of the
Participant’s death, the Option is transferable by the Participant only by will or the laws of descent and distribution. 
 (i)
Termination for Cause. If a Participant ceases to be an Employee by reason of the Participant’s termination of employment by the Company for Cause, any Option granted to the Participant may be exercised at any time within three
(3) months after the Participant’s termination of employment (but not beyond the otherwise applicable term of the Option) by the Participant. 

(j) Voluntary Termination. If a Participant ceases to be an Employee by reason of the Participant’s voluntary Termination of
Employment with the Company, any Option granted to the Participant may be exercised at any time within three (3) months after the Participant’s termination of employment (but not beyond the otherwise applicable term of the Option) by the
Participant. 
 (k) Rights as a Stockholder. A Participant, or an allowable transferee of a Participant, shall have no rights as a
shareholder of the Company with respect to any Shares for which an Option is exercisable until the date a stock certificate for such Shares is issued. No adjustment shall be made for dividends (ordinary or extraordinary or whether in currency,
securities, or other property), distributions, or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 9. 

(l) Modification, Extension, and Renewal of Options. Within the limitations of the Plan, the Board may at its discretion modify, extend
or renew any outstanding Option or accept the cancellation of an outstanding Option for the granting of a new Option in substitution. Notwithstanding the preceding sentence, no modification of an Option shall, without the consent of the Participant,
alter or impair any rights or obligations under any Option previously granted. 
 (m) Other Provisions. An Option Agreement may
contain such other provisions as the Board deems advisable which are not inconsistent with the terms of the Plan, including but not limited to: 

(i) Restrictions on the exercise of the Option; 

  

					
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 (ii) Submission by the Participant of such forms and documents as the Board may require; and/or

 (iii) Procedures to facilitate the broker-assisted exercise of the Option. 

8. Term of Plan.     Options may be granted pursuant to the Plan through the period ending on December 31, 2003. All
Options which are outstanding on such date shall remain in effect until they are exercised or expire by their terms. 
 9. Recapitalizations,
Takeovers, and Liquidations. 
 (a) Reorganizations. Notwithstanding any other provision of the Plan to the contrary, but
subject to any required action by the stockholders of the Company, the Board shall make any adjustments to the class and/or number of Shares covered by the Plan, the number of Shares for which each outstanding Option pertains, the Exercise Price of
an Option, and/or any other aspect of this Plan to prevent the dilution or enlargement of the rights of Participants under this Plan in connection with any increase or decrease in the number of issued and outstanding shares of the common capital
stock of the Company resulting from the payment of a stock dividend, a stock split, a reverse stock split or any other event which results in an increase or decrease in the number of issued and outstanding shares of the common capital stock of the
Company effected without receipt of adequate consideration by the Company. 
 (b) Mergers and Consolidations. Subject to any required
action by the stockholders of the Company: 
 (i) In the event the Company is a party to a merger or consolidation in which the Company is
the surviving corporation, each outstanding Option shall pertain to the securities of the Company to which a holder of the number of Shares subject to the Option would be entitled; and 

(ii) In the event the Company is a party to a merger or consolidation in which it is not the surviving corporation, unless the surviving
corporation expressly assumes outstanding Options, the Board shall exercise reasonable efforts to give each Participant as much advance notice as practicable before the effective date of such transaction to enable such Participant to exercise
Options. 
 (c) Determination by the Board. All adjustments described in this Section 9 shall be made by the Board, whose
determination shall be conclusive and binding on all persons. 
 (d) Limitation on Rights of Participants. Except as expressly
provided in this Section 9, no Participant shall have any rights by reason of any payment of any stock dividend, stock split, reverse stock split, or any other change in the number of shares of stock of any class, or by reason of any
reorganization, consolidation, dissolution, liquidation, merger, exchange, split-up or reverse split-up, or spin-off of assets or stock of another corporation. Any issuance by the Company of Options shall not affect, and no adjustment by reason
thereof shall be made with respect to, Options under the Plan. 
 (e) No Limitation on Rights of Company. The grant of an Option
pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or to dissolve, liquidate, sell,
or transfer all or any part of its business or assets. 
 10. Securities Law Requirements. 

(a) Legality of Issuance. No Share shall be issued upon the exercise of any Option unless and until the Board has determined that: 

(i) The Company and the Participant have taken all actions required to register the Shares under the Securities Act, or to perfect an exemption
from registration requirements of the Securities Act, or to determine that the registration requirements of the Securities Act do not apply to such exercise; 

(ii) Any applicable listing requirement of any stock exchange on which the Share is listed has been satisfied; and 

  

					
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 (iii) Any other applicable provision of state, federal or foreign law has been satisfied. 

(b) Restrictions on Transfer; Representations of Participant; Legends. Regardless of whether the offering and sale of Shares under the
Plan have been registered under the Securities Act or has been registered or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge, or other transfer of such Shares (including the placement of
appropriate legends on stock certificates) if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable to achieve compliance with the provisions of the Securities Act, the securities laws of any state, or any
other law. If the offering and/or sale of Shares under the Plan is not registered under the Securities Act and the Company determines that the registration requirements of the Securities Act apply but an exemption is available which requires an
investment representation or other representation, the Participant shall be required, as a condition to acquiring such Shares, to represent that such Shares are being acquired for investment, and not with a view to the sale or distribution thereof,
except in compliance with the Securities Act, and to make such other representations as are deemed necessary or appropriate by the Company and its counsel. Stock certificates evidencing Shares acquired pursuant to an unregistered transaction to
which the Securities Act applies shall bear a restrictive legend substantially in the following form and such other restrictive legends as are required or deemed advisable under the Plan or the provisions of any applicable law: 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“ACT”). THEY MAY NOT BE TRANSFERRED, SOLD OR OFFERED FOR
SALE UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR THE ISSUER EITHER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT OR THE REGISTRATION PROVISIONS
OF THE ACT DO NOT APPLY TO SUCH PROPOSED TRANSFER. 
 (c) Registration or Qualification of Securities. The Company may, but shall not
be obligated to, register or qualify the offering or sale of Shares under the Securities Act or any other applicable law. 
 (d) Exchange
of Certificates. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares issued pursuant to the Plan is no longer required, the Participant or the holder of such certificate shall be
entitled to exchange such certificate for a certificate representing the same number of Shares but lacking such legend. 
 (e)
Determination of Company Binding. Any determination by the Company and its counsel in connection with any of the matters set forth in this Section 10 shall be conclusive and binding on all persons. 

11. Limitations on Shares. All Shares issued pursuant to the Plan shall be subject to the terms and conditions of the Company’s
Non-qualified Plan Stock Restriction and Repurchase Agreement and the Company shall place legends on stock certificates representing that the Shares are subject to such Non-qualified Plan Stock Restriction and Repurchase Agreement. 

12. Amendment of the Plan. The Board may, from time to time, terminate, suspend or discontinue the Plan, in whole or in part, or revise or amend
it in any respect whatsoever including, but not limited to, the adoption of any amendment deemed necessary or advisable to qualify the Options under rules and regulations promulgated by the Securities and Exchange Commission with respect to
Employees who are subject to the provisions of Section 16 of the Exchange Act, or to correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option granted under the Plan, with or without approval of the
shareholders of the Company, but if any such action is taken without the approval of the Company’s shareholders, no such revision or amendment shall: 

(a) Increase the number of Shares subject to the Plan, other than any increase pursuant to Section 9; 

(b) Change the designation of the class of persons eligible to receive Options; 

(c) Increase the maximum duration of an Option; 

  

					
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 (d) Change the manner of determining the Exercise Price of an Option; 

(e) Extend the term of the Plan; or 

(f) Amend this Section to defeat its purpose. No amendment, termination or modification of the Plan shall, without the consent of the
Participant, affect any Option previously granted. 
 13. Payment for Share Purchases. 

(a) Payment. Payment of the Purchase Price for any Shares purchased pursuant to the Plan, together with an amount sufficient to satisfy
any applicable federal, state, and local withholding tax requirements, may be made in cash (in U.S. dollars) or, where expressly approved for the Participant by the Board, in its sole and absolute discretion, and where permitted by law: 

(i) By check; 
 (ii) By
cancellation of indebtedness of the Company to the Participant; 
 (iii) By surrender of Shares that either: (A) have been owned by
Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144; or (B) were obtained by Participant in the public market; 

(iv) By waiver of compensation due or accrued to Participant for services rendered; 

(v) With respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s stock exists
(A) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD dealer”) whereby Participant irrevocably elects to exercise the
Option and to sell a portion of the Shares so purchased to pay for the Purchase Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Purchase Price directly to the Company; or (B) through a
“margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer
in the amount of the Purchase Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Purchase Price directly to the Company; or 

(vi) By any combination of the foregoing. 

(b) Loan Guarantees. The Board may help the Participant pay for Shares purchased under the Plan by authorizing a guarantee by the
Company of a third-party loan to the Participant. 
 14. Application of Funds. The proceeds received by the Company from the sale of Common
Stock pursuant to the exercise of an Option shall be used for general corporate purposes. 
 15. Privileges of Stock Ownership. No Participant
shall have any of the rights of a shareholder with respect to any Shares until the date a stock certificate for such Shares is issued to the Participant. After certificates are issued to the Participant, the Participant shall be a shareholder and
have all the rights of a shareholder with respect to such Shares, including the right to receive all dividends or other distributions made or paid with respect to such Shares. 

16. Transferability. Options granted under the Plan, and any interest therein, shall not be transferable or assignable by Participant, and may
not be made subject to execution, attachment or similar process, otherwise than by will or by the laws of descent and distribution or as consistent with the specific Plan and Option Agreement provisions relating thereto. During the lifetime of the
Participant an Option may be exercisable only by the Participant, and any elections with respect to any Option may be made only by the Participant. 

  

					
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 17. Withholding of Taxes. Whenever Shares are to be issued under the Plan, the Company shall
require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares. 

18. Statement to Participants. Within a reasonable time after the last day of each Plan Year, the Board shall furnish to each Participant a
statement setting forth the Participant’s total number of Shares subject to Options, the date such Options were granted, and such other information as the Board shall deem advisable to furnish. 

19. Rights as an Employee. The Plan shall not be construed to give any individual the right to remain in the employ of the Company or to affect
the right of the Company to terminate such individual’s employment at any time, with or without cause. The grant of an Option shall not entitle the Participant to, or disqualify the Participant from, participation in the grant of any other
Option under the Plan or participation in any other plan maintained by the Company. 
 20. Non-Uniform Determinations. The Board’s
determinations under the Plan (including without limitation determinations of the persons to receive Options, the form, amount and timing of such Options, the terms and provisions of such Options and the Option Agreements evidencing same, and the
establishment of values and performance targets) need not be uniform and may be made by the Board selectively among persons who receive, or are eligible to receive, Options under the Plan, whether or not such persons are similarly situated. 

21. Inspection of Records. Copies of the Plan, records reflecting each Participant’s Options and any other documents and records which a
Participant is entitled by law to inspect shall be open to inspection by the Participant and his or her duly authorized representative at the office of the Company at any reasonable business hour upon reasonable advance notice from the Participant.

  

					
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Non-qualified Stock Option Plan
	  	8EX-10.6

 Exhibit 10.6 

ALTAIR ENGINEERING INC. 

2001 NON-QUALIFIED STOCK OPTION PLAN 

NON-QUALIFIED STOCK OPTION AGREEMENT 

(AS AMENDED AS OF APRIL 3, 2017) 
 For the
purpose of (a) encouraging and enabling selected management and other employees of the Company who currently have rights under the Company’s Phantom Stock Plan (the “Phantom Stock Plan”) to acquire a proprietary interest in the
Common Stock of the Company, (b) retaining and motivating such Participants to attain exceptional levels of performance, (c) converting the Phantom Stock Plan to the NSO Plan and termination of the Phantom Stock Plan and (d) providing
such Participants with an opportunity to participate in the increased value of the Company which their efforts, initiative, and skill have helped produce, the Company, pursuant to the terms and conditions of the Altair Engineering Inc. 2001
Non-qualified Stock Option Plan, will award Options to purchase Common Stock to such Participants. 
 This Agreement, entered into pursuant to the terms of
the Plan, evidences that the Committee has designated «FName» «LName» (“Participant”) as a participant under the Plan, has awarded Non-qualified Stock Options to Participant to purchase
«Options» Shares, has designated December 31, 2001 as the Award Date for such Options, has designated the sum of (i) the amount paid by the Participant to the Company to acquire his or her rights under the Phantom
Stock Plan divided by the number of Shares which Participant is entitled to purchase under the Options granted herein and (ii) one ten-thousandths ($0.0001) Dollars as the Exercise Price, and, subject to the provisions of this Agreement, has
designated the period from December 31, 2001 to December 31, 2036 as the Exercise Period applicable to such Options. 
 The grant, holding,
and exercise of such Non-qualified Stock Options shall be subject to the terms and conditions of the Plan and the following: 
 1. Definitions.

 (a) “Agreement” means this “Non-qualified Stock Option Agreement” between the Company and Participant. 

(b) “Award” shall mean any grant of Non-qualified Stock Options made to Participant under the Plan and this Agreement. 

(c) “Award Date” means the date designated by the Committee as of which Options are awarded to Participant under the Plan. 

(d) “Board” shall mean the Board of Directors of the Company. 

(e) “Common Stock” means the Class A common capital stock of the Company. 

(f) “Company” shall mean Altair Engineering Inc., a Michigan corporation and any Subsidiary of the Company. 

(g) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(h) “Exercise Period” means the period of time specified by the Board on the Award Date and set forth in the second paragraph of this
Agreement within which a Participant may exercise an Option, which period has been determined by the Board pursuant to the Plan, subject however to the Board’s exercise of its discretion pursuant to the provisions hereof. 

(i) “Exercise Price” means the price per Share specified by the Board and set forth in the second paragraph of this Agreement at
which the Participant may exercise an Option during the Exercise Period, which price has been determined by the Board pursuant to the Plan. 

(j) “Fair Market Value” shall mean the value of each Share determined as of any specified date as follows: 

Altair Engineering Inc. - NSO Plan 
 Form of NSO
Agreement 

 (1) If the Shares are traded on any United States securities exchange, or if the Shares are not
traded on any United States securities exchange but are traded on any formal over-the-counter quotation system in general use in the United States, the value per Share shall be the closing price on such exchange or quotation system on the business
day immediately preceding such specified date; provided, however, that if no Shares are traded on the business day immediately preceding such specified date, the value per Share shall be the mean between the closing high bid and closing low asked
quotations on the business day immediately preceding such specified date; or 
 (2) If Paragraph (1) does not apply, the value per Share
shall be determined by the Board in accordance with Section 4 in good faith and based on uniform principles consistently applied. Such determination shall be conclusive and binding on all persons. 

(k) “Non-qualified Stock Option” or “Option” shall mean a right granted under the Plan and this Agreement to purchase
Share(s) at a specified Exercise Price within a specified Exercise Period, which Options are not intended to be qualified as incentive stock options under Section 422(b) of the Code. 

(l) “Participant” shall have the meaning set forth in the second paragraph of this Agreement. 

(m) “Plan” shall mean the Altair Engineering Inc. 2001 Non-qualified Stock Option Plan. 

(n) “Plan Year” shall mean the 12 consecutive month period coinciding with the Company’s fiscal year. 

(o) “Purchase Price” shall mean, at any specified time, the Exercise Price per Share multiplied by the number of Shares being
purchased pursuant to the exercise of an Option. 
 (p) “Securities Act” shall mean the Securities Act of 1933,as amended. 

(q) “Share” shall mean one authorized share of Common Stock. 

(r) “Subsidiary” shall mean any corporation or other business entity (other than the Company) in an unbroken chain of corporations
and/or other business entities beginning with the Company if, at the time of granting an Option, each of the corporations and/or other business entities (other than the last business entity in the unbroken chain) owns stock possessing at least 50%
of the total combined voting power of all classes of ownership in one of the other corporations and/or other business entities in such chain. 

(s) “Termination of Employment” means the termination of the Participant’s employment with the Company or a Subsidiary, but not
the transfer of employment from the Company to a Subsidiary of the Company or vice versa or from one Subsidiary of the Company to another such Subsidiary. If the Board in its sole discretion so determines, employment shall not be considered as
terminated for the purposes of Section 3.1 so long as Participant continues to perform services for the Company or a Subsidiary thereof on either a full or part time basis. 

2. Terms and Conditions of Options. 

(a) Person Eligible to Exercise. During Participant’s lifetime, only Participant or, in the event of disability, Participant’s
conservator or legal representative may exercise an Option granted under the Plan and such Option shall not be transferable or assignable. After the death of Participant, any Options held by Participant prior to death that continue to be exercisable
may be exercised by Participant’s personal representative or by any person empowered to do so by will or by the laws of descent and distribution. The terms of the Plan and this Agreement, as well as the interpretations and decisions of the
Board, shall be binding upon any such conservator, legal representative, personal representative, or other person acting on behalf of or in lieu of the Participant. 

(b) Manner of Exercise. Subject to the provisions of Paragraphs (c), (d) and (e) hereof, Participant may exercise an Option on
any business day of the Company within the Exercise Period by delivery to the Company at the Company’s principal office, either by mail, facsimile, or in person, of a 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	2	  	

 
properly completed notice of exercise, on a form approved by the Board, together with full payment of the Purchase Price and the Federal, state and local tax withholding obligation as hereinafter
provided for. The date such form is received by the Company shall be the date of exercise. Such form shall specify the Participant, Participant’s Social Security number, the Award Date, the number of Options being exercised, the Exercise Price,
the Purchase Price and the manner in which the Participant intends to satisfy any applicable tax withholding obligation. The minimum number of Options that may be exercised at any one time shall be for 100 Shares or, if less, the aggregate number of
Shares for which there are outstanding Options then credited to Participant and exercisable. In the event the Option is being exercised pursuant to Paragraph (a) hereof by any person other than Participant, such person shall also submit at the
time of exercise satisfactory proof of the right of such person to exercise the Option. 
 (c) Exercise of Options. Participant may
exercise an Option only on or before the date on which the Option expires, as provided in Subsection (e) below. 
 (d) Options
Non-forfeitable. All Options granted pursuant to this Agreement and the Plan shall be 100% vested and non-forfeitable at all times. 

(e) Term and Lapse of Options. An Option shall terminate immediately upon the first to occur of the following events: 

(i) The date determined under Section 2(g) for a Participant who ceases to be an Employee by reason of the Participant’s Termination
of Employment by the Company for Cause, unless the Board at its discretion extends such date before the applicable expiration date; 
 (ii)
The date determined under Section 2(h) for a Participant who ceases to be an Employee by reason of the Participant’s voluntary Termination of Employment with the Company, unless the Board at its discretion extends such date before the
applicable expiration date; 
 (iii) The expiration of the Exercise Period. 

(f) Cause. For purposes of this Section 2, “Cause” shall be defined as the occurrence of any one or more of the following
acts or events: (1) fraud, misappropriation, embezzlement, or other act of material dishonesty against the Company; (2) any act or acts by Participant with respect to Company which constitute a breach of Participant’s fiduciary duties
or duties of honesty, good faith and loyalty (including derogatory statements regarding the Company, but excluding statements made in connection with any legal action filed against the Company); (3) any act by Participant which is intentionally
damaging to the Company; (4) commission by Participant of a felony or misdemeanor involving moral turpitude; (5) a material breach by Participant of any provision of this Agreement within his control or failure of Participant to properly
and diligently perform his duties as an employee, officer and/or director of the Company, which violation is not remedied within three (3) days after notice from Company specifying such violation; (6) alcohol or drug abuse affecting in any
material respect the performance by the Participant of his duties and responsibilities as an employee, officer and/or director of the Company; (7) commission of any other act or acts which substantially impairs the reputation and standing of
Company with its customers or the community at large; and (8) any act or circumstance constituting “cause” for termination under applicable statutory or common law. 

(g) Termination for Cause. If a Participant ceases to be an Employee by reason of the Participant’s Termination of Employment by
the Company for Cause, any Option granted to the Participant may be exercised at any time within three (3) months after the Participant’s Termination of Employment (but not beyond the otherwise applicable term of the Option) by the
Participant. 
 (h) Voluntary Termination. If a Participant ceases to be an Employee by reason of the Participant’s voluntary
Termination of Employment with the Company, any Option granted to the Participant may be exercised at any time within three (3) months after the Participant’s Termination of Employment (but not beyond the otherwise applicable term of the
Option) by the Participant. 
 (i) Payment and Issuance. Shares acquired pursuant to the exercise of Options shall be paid for in full
at the time of exercise, in cash (in U.S. dollars) as a condition of such exercise, unless the 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	3	  	

 
Board, in its sole and absolute discretion allows the Participant to pay the Purchase Price in any manner set forth below, so long as the sum of cash so paid and such other consideration equals
the Purchase Price. A certificate for the net amount of Shares attributable to an exercise shall be issued to Participant as soon as practicable following payment of the aggregate Purchase Price and all applicable withholding taxes. 

(i) Payment of the Purchase Price for any Shares purchased pursuant to the Plan, together with an amount sufficient to satisfy any applicable
federal, state, and local withholding tax requirements, may be made, where expressly approved for the Participant by the Board, in its sole and absolute discretion, and where permitted by law: 

(A) By check; 
 (B) By
cancellation of indebtedness of the Company to the Participant; 
 (C) By surrender of Shares that either: (A) have been owned by
Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144; or (B) were obtained by Participant in the public market; 

(D) By waiver of compensation due or accrued to Participant for services rendered; 

(E) With respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s stock exists
(A) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD dealer”) whereby Participant irrevocably elects to exercise the
Option and to sell a portion of the Shares so purchased to pay for the Purchase Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Purchase Price directly to the Company; or (B) through a
“margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer
in the amount of the Purchase Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Purchase Price directly to the Company; or 

(F) By any combination of the foregoing. 

(ii) The Board may help the Participant pay for Shares purchased under this Option Agreement by authorizing a guarantee by the Company of a
third-party loan to the Participant. 
 (j) Non-Registration. Regardless of whether the Shares to be issued hereunder upon the
exercise of an Option have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge, or other transfer of such Shares (including
the placement of appropriate legends on stock certificates) if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable to achieve compliance with the provisions of the Securities Act, the securities laws of any
state, or any other law. If the Shares to be issued hereunder upon the exercise of an Option have not been registered under the Securities Act, or a registration is not then currently effective with respect to such Shares, and the Company determines
that the registration requirements of the Securities Act apply but an exemption is available which requires an investment representation or other representation, the Participant shall be required, as a condition to acquiring such Shares, to
represent that such Shares are being acquired for investment, and not with a view to the sale or distribution thereof, except in compliance with the Securities Act, and to make such other representations as are deemed necessary or appropriate by the
Company and its counsel, and that Participant or other person then entitled to exercise such Option will indemnify the Company against and hold it free and harmless from any loss, damages, expense or liability resulting to the Company if any sale or
distribution of the Shares by such person is contrary to the representation and agreement referred to above. The Board may take whatever additional actions it reasonably deems appropriate to ensure the observance and performance of such
representation and agreement and to effect compliance with the Securities Act and any other Federal or state securities laws or regulations, including but not limited to Rule 144 promulgated under the Securities Act. Without limiting the generality

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	4	  	

 
of the foregoing, the Board may require an opinion of counsel acceptable to it to the effect that any subsequent transfer of Shares acquired on an Option exercise does not violate the Securities
Act, and may issue stop-transfer orders covering such Shares. 
 Stock certificates evidencing Shares acquired pursuant to an unregistered
transaction to which the Securities Act applies shall bear a restrictive legend substantially in the following form and such other restrictive legends as are required or deemed advisable under the Plan or the provisions of any applicable law: 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“ACT”). THEY MAY NOT BE TRANSFERRED, SOLD OR OFFERED FOR
SALE UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR THE ISSUER EITHER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT OR THE REGISTRATION PROVISIONS
OF THE ACT DO NOT APPLY TO SUCH PROPOSED TRANSFER. 
 3. Limitations on Shares. All Shares issued hereunder upon the exercise of an Option
shall be subject to the terms and conditions of the Company’s Non-qualified Plan Stock Restriction and Repurchase Agreement and the Company shall place legends on stock certificates representing that the Shares are subject to such Non-qualified
Plan Stock Restriction and Repurchase Agreement. 
 4. Administration of Plan. The Board shall administer the Plan and this Agreement in
accordance with their provisions and shall have full and final authority in its discretion to (a) interpret the provisions of the Plan and this Agreement and decide all questions of fact arising in their application, and its interpretation and
decisions shall be in all respects final, conclusive and binding; and (b) make all other determinations, rules and regulations necessary or advisable for the administration of the Plan and this Agreement. Notwithstanding any provisions of this
Agreement to the contrary, the Board shall have the power to permit, in its discretion, an acceleration of any previously determined Option exercise terms or to otherwise amend the terms of an Option, under such circumstances and upon such modified
or different terms and conditions as it deems appropriate, subject, however, to the provisions of the Plan. No member of the Board shall be personally liable for any action or determination in respect to the administration of the Plan and this
Agreement if made in good faith. 
 5. Restrictive Covenants. In order to induce the Company to Award the Options hereunder and in
consideration therefor: 
 (a) Covenants Not to Compete or Solicit. The Participant will not directly or indirectly (whether as a
principal, agent, independent contractor, employer, employee, investor, partner, shareholder, director or otherwise): 
 (i) During the
Participant’s employment with the Company and for a period of two (2) years after Participant’s Termination of Employment, solicit business or provide products and/or services which are the same as or competitive with that solicited
or provided by the Company from any company, enterprise or person which was a customer of the Company at any time during Participant’s employment with the Company; 

(ii) During the Participant’s employment with the Company and for a period of two (2) years after Participant’s Termination of
Employment, engage in any business or participate, invest or have any interest in, by way of example but without limitation, any person, firm, corporation, sole proprietorship or business, that engages in any business or activity anywhere in the
world, which business or activity is the same as, similar to, or competitive with any business or activity now, heretofore or hereafter engaged in by the Company; or 

(iii) During the Participant’s employment with the Company and for a period of two (2) years after Participant’s Termination of
Employment, induce or attempt to persuade any employee, agent, supplier or customer of the Company to terminate any similar employment, agency, supplier or customer 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	5	  	

 
relationship with the Company in order to enter into any such relationship on behalf of any other company, enterprise or person. 

Notwithstanding anything contained herein to the contrary, (A) Participant shall not be prohibited from owning any interest in or shares
of mutual or similar funds which are nationally recognized and which own equity securities of any corporation, if such securities are publicly traded and listed on any national or regional stock exchange and (B) Participant shall not be
prohibited from accepting a position of full-time employment with any such customer of the Company, provided that Participant shall not engage in any activities prohibited hereunder with respect to any other customer(s) of the Company. 

(b) Covenant Regarding Confidential Information. The Participant acknowledges and agrees that all records and other information not
released to the general public, all trade secrets, unpublished data or other information and all trade secrets and confidential or proprietary information, in each case relating to the services, business and operations of the Company or its
subsidiaries and affiliates, whether reduced to writing or not, are confidential and the sole property of the Company and its subsidiaries and affiliates (all of the same being herein collectively called the “Confidential Information”).
The Participant will not, at any time during his employment with the Company or thereafter, directly or indirectly, use any of the Confidential Information, except in the regular course of employment with the Company hereunder, or disclose any of
the Confidential Information to any other person or entity, except to the extent that the Board may so authorize in writing, and that, upon Participant’s Termination of Employment, he or she will surrender to the Company all Confidential
Information then in his or her possession or under his or her control. Participant acknowledges and agrees that the Confidential Information and other aspects of the Company’s business have been established and maintained at great expense, and
kept and protected as confidential and secret information and are of great value to the Company and provide it with a substantial competitive advantage in conducting said business. Participant further acknowledges and agrees that as a result of his
or her knowledge of the Confidential Information, Company would suffer great loss and irreparable injury if Participant were to disclose the Confidential Information or use the Confidential Information to compete with the Company. 

(c) Rights and Remedies upon Breach. Participant expressly agrees that in the event of any violation by the Participant of the covenants
and restrictions contained in paragraphs (a) and/or (b) hereof, Company and its successors or assigns shall have the following cumulative rights and remedies, each of which rights and remedies shall be independent of the others and
severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any and all other legal and equitable rights and remedies available to the Company: 

(i) Require the Participant to account for and pay over to the Company, any amounts paid to Participant hereunder or under the Stock
Restriction and Repurchase Agreement which are in excess of the greater of (A) the amount paid by the Participant to the Company to acquire his or her rights under the Phantom Stock Plan and (B) the Purchase Price paid by the Participant
to the Company pursuant hereto; 
 (ii) Withhold any and all payments due hereunder or under the Stock Restriction and Repurchase Agreement
which are in excess of the greater of (A) the amount paid by the Participant to the Company to acquire his or her rights under the Phantom Stock Plan and (B) the Purchase Price paid by the Participant to the Company pursuant hereto; and

 (iii) Declare any and all rights of the Participant under this Option Agreement to be immediately terminated and of no further force nor
effect. 
 (d) Covenants Reasonable and Necessary. Participant agrees that the terms and conditions of the covenants and restrictions
set forth herein are reasonable and necessary for the protection of the Company, Company’s business and the Confidential Information and to prevent damage or loss to Company as a result of actions taken by the Participant. Participant
acknowledges and agrees that the Company would suffer great loss and irreparable injury if Participant violates the covenants contained in subparagraphs (a) and/or (b) hereof. It is the intent and understanding of each party hereto that
if, in any action before any court, agency or tribunal legally empowered to enforce the covenants contained in paragraphs (a) and/or (b) hereof, any term, restriction, covenant or promise contained therein is found to be invalid, illegal
or unenforceable, then such term, restriction, covenant or promise shall be deemed 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	6	  	

 
modified to the extent necessary to make it valid, legal or enforceable by such court, agency or tribunal. The provisions contained in this Section 5 shall survive the termination of this
Agreement and the Participant’s Termination of Employment for any reason. 
 6. Taxes. 

(a) Withholding of Taxes. Whenever Shares are to be issued under the Plan or this Agreement, the Company shall require the Participant
to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares. Whenever, under the Plan or this Agreement, payments in
satisfaction of Options are to be made in cash, such payment shall be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements. 

(b) Tax Consequences. Some of the federal and state tax consequences relating to this Option, as of the date of this Option, are set
forth below. This summary is necessarily incomplete, and the tax laws and regulations are subject to change. The Participant should consult a tax adviser before exercising this Option or disposing of the Shares. 

(i) The Participant may incur regular federal income tax and state income tax liability upon exercise of an Option. The Participant will be
treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares issued pursuant to the exercise of an Option on the date of exercise over their aggregate
Purchase Price. The Company will be required to withhold from the Participant’s compensation or collect from the Participant and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the
time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise. 

(ii) If the Participant holds Shares for at least one year, any gain realized on disposition of the Shares should be treated as long-term
capital gain for federal income tax purposes. 
 7. Rights as an Employee. Neither the Plan nor this Agreement shall not be construed to give
any individual the right to remain in the employ of the Company or to continue in any position or at any level of remuneration, or to affect the right of the Company to terminate such individual’s employment at any time, with or without cause.
The grant of an Option shall not entitle the Participant to, or disqualify the Participant from, participation in the grant of any other Option under the Plan or participation in any other plan maintained by the Company. 

8. Non-Alienation of Benefits. Prior to its settlement in the form of Shares, no right or benefit under the Plan and this Agreement shall be
subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber or charge the same whether voluntary, involuntary or by operation of law, shall be void
except by will or by the laws of descent and distribution or by such other means as the Board may approve from time to time. No right or benefit under the Plan and this Agreement shall in any manner be liable for or subject to the debts, contracts,
liabilities, or torts of the person entitled to such benefit. If Participant should become bankrupt or attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit under the Plan and this Agreement, then such right
or benefit shall, in the sole discretion of the Board, cease and terminate, and in such event, the Company may hold or apply the same or any part thereof for the benefit of Participant, the Participant’s spouse, children or other dependents, or
any of them, in such manner and in such proportion as the Board may determine. Any restrictions on transferability of the Shares either described above or otherwise provided for in this Agreement may be referred to in legends contained on the
certificates evidencing such Shares. 
 9. Rights of a Shareholder. The recipient of any Award under the Plan and this Agreement, and any
person claiming under or through such recipient or under the Plan or this Agreement, shall not be, nor have any of the rights of, a shareholder with respect thereto, nor shall they have any right or interest in any cash or other property, unless and
until certificates for Shares are issued to such Participant after compliance with all the terms and conditions of the Plan and this Agreement. 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	7	  	

 10. Non-Uniform Determinations. The Board’s determinations under the Plan (including without
limitation determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same, and the establishment of values and performance targets) need not be
uniform and may be made by the Board selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated. 

11. Funding of the Plan. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any
other segregation of assets to assure the payment of any Award under the Plan or this Agreement, and payment of Awards shall be subordinate to the claims of the Company’s general creditors. 

 

	12.	Recapitalizations, Takeovers, and Liquidations. 

 (a) Reorganizations.
Notwithstanding any other provision of the Plan to the contrary, but subject to any required action by the stockholders of the Company, the Board shall make any adjustments to the class and/or number of Shares covered by the Plan, the number of
Shares for which each outstanding Option pertains, the Exercise Price of an Option, and/or any other aspect of the Plan to prevent the dilution or enlargement of the rights of Participants under the Plan in connection with any increase or decrease
in the number of issued and outstanding shares of the common capital stock of the Company resulting from the payment of a stock dividend, a stock split, a reverse stock split or any other event which results in an increase or decrease in the number
of issued and outstanding shares of the common capital stock of the Company effected without receipt of adequate consideration by the Company. 

(b) Mergers and Consolidations. Subject to any required action by the stockholders of the Company: 

(i) In the event the Company is a party to a merger or consolidation in which the Company is the surviving corporation, each outstanding Option
shall pertain to the securities of the Company to which a holder of the number of Shares subject to the Option would be entitled; and 
 (ii)
In the event the Company is a party to a merger or consolidation in which it is not the surviving corporation, unless the surviving corporation expressly assumes outstanding Options, each outstanding Option shall become 100% Vested and the Board
shall exercise reasonable efforts to give the Participant as much advance notice as practicable before the effective date of such transaction to enable such Participant to exercise Vested Options. 

(c) Determination by the Board. All adjustments described in this Section shall be made by the Board, whose determination shall be
conclusive and binding on all persons. 
 (d) Limitation on Rights of Participants. Except as expressly provided in this Section, the
Participant shall not have any rights by reason of any payment of any stock dividend, stock split, reverse stock split, or any other change in the number of shares of stock of any class, or by reason of any reorganization, consolidation,
dissolution, liquidation, merger, exchange, split-up or reverse split-up, or spin-off of assets or stock of another corporation. Any issuance by the Company of Options shall not affect, and no adjustment by reason thereof shall be made with respect
to, Options under the Plan. 
 (e) No Limitation on Rights of Company. The grant of an Option pursuant to the Plan shall not affect in
any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or to dissolve, liquidate, sell, or transfer all or any part of its
business or assets. 
 13. Severability. If any provision of the Plan or this Agreement or any Award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to applicable laws,
or if it cannot be so construed or deemed amended without, in the determination of the Board, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person, or Award, and the remainder of
the Plan 

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	8	  	

 
and this Agreement and any such Award shall remain in full force and effect. Each covenant, condition, term and provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law. 
 14. Gender and Number. As the context of any provision may require, nouns and pronouns of any gender and number shall be
construed in any other gender and number. 
 15. Governing Law. This Agreement and the Plan shall be governed by and interpreted under the
laws of the State of Michigan and applicable Federal law, irrespective of where this Agreement is made or to be performed, and irrespective of any applicable principles of conflict of laws. 

16. Venue. The venue of any dispute, controversy, litigation or proceeding (formal or informal) arising out of or pertaining to the Plan
or this Agreement or the subject hereof shall lie exclusively in the County of Oakland, State of Michigan. Provided, however, that if any such dispute, controversy, litigation or proceeding requires or permits jurisdiction in a federal court or
agency of the United States, then venue shall lie in no federal court or agency other than those located in (or nearest to) the County of Wayne, State of Michigan. No term or provision of this Section is intended to establish a priority as between
state court or federal court, for instances in which a choice of such venue is available to the parties or litigants. The parties hereto knowingly and expressly waive any rights they may have in existing venue statutes, either state or federal, to
the extent that such statutes would require a different venue than otherwise provided for herein. 
 17. Captions. Captions used
herein are inserted for reference purposes only and shall not affect the interpretation or construction of this Agreement. 
 18. Independent Legal
Representation. Participant acknowledges that the parties’ interests hereunder are divergent and conflicting in many material respects. Accordingly, Participant acknowledges being advised to retain independent legal counsel
before executing this Agreement.  
 19. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, and such counterparts together shall constitute but one and the same Agreement. 
 20. Termination of Phantom
Stock Plan. In order to induce the Company to grant the Options to Participant pursuant to the terms of this Agreement, and in consideration thereof, Participant hereby acknowledges and agrees to the termination of the Phantom Stock
Plan and that any and all rights of the Participant under such Phantom Stock Plan are hereby forfeited and terminated. 
  

					
		 	ALTAIR ENGINEERING INC.
		 	 A Michigan Corporation

			
	 Dated:
	 	By:	 	 
		 		 	 Tom M. Perring

		 		 	Its: Chief Financial Officer

 Participant hereby acknowledges receipt of a copy of the Plan and this Agreement, accepts his or her designation as a
Participant under and subject to all the terms and conditions set forth herein and in the Plan, and agrees to all such terms and conditions. 
  

			
	Dated:                    	 	
		 	  
 «FName»
«LName»

		 	PARTICIPANT

  

					
	 Altair Engineering Inc. - NSO Plan

Form of NSO Agreement
	  	9

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