Document:

2010 Employee Stock Purchase Plan

 Exhibit 10.7 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

1. Purpose. The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock through accumulated payroll deductions. The Company’s intention is to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the Plan, accordingly, will
be construed so as to extend and limit Plan participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423 of the Code. 

2. Definitions. 

(a) “Administrator” means the Board or any Committee designated by the Board to administer the Plan pursuant to
Section 14. 
 (b) “Applicable Laws” means the requirements relating to the administration of equity-based
awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where
Awards are, or will be, granted under the Plan. 
 (c) “Board” means the Board of Directors of the Company.

 (d) “Change in Control” means the occurrence of any of the following events: 

(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group
(“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however,
that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in
Control; or 
 (ii) A change in the effective control of the Company which occurs on the date that a majority of members of 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. For purposes of this clause, if any
Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or 

(iii) A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires
(or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent
(50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection, the following

 
will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders
immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’ s stock, (2) an entity, fifty
percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all
the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this
subsection, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into
a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 
 (e)
“Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any
comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 

(f) “Committee” means a committee of the Board appointed in accordance with Section 14 hereof. 

(g) “Common Stock” means the common stock of the Company. 

(h) “Company” means Tesla Motors, Inc., a Delaware corporation. 

(i) “Compensation” means an Eligible Employee’s regular and recurring straight time gross earnings, payments for
overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other similar compensation. The Administrator, in its discretion, may, on a uniform and nondiscriminatory basis, establish a different definition of
Compensation for a subsequent Offering Period. 
 (j) “Designated Subsidiary” means any Subsidiary that has
been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan. 
 (k)
“Director” means a member of the Board. 
 (l) “Eligible Employee” means any individual who is
a common law employee of an Employer and is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship will be
treated as continuing intact while the individual is on sick leave or other leave of absence that the Employer approves. Where the period of leave exceeds three (3) months and the individual’s right to reemployment is not guaranteed either
by statute or by contract, the employment relationship will be deemed to have terminated three (3) months and one (1) day following the commencement of such leave. The Administrator, in its discretion, from time to time may, prior to an
Offering Date for all options to be granted on such Offering Date, determine (on a uniform and 
  

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nondiscriminatory basis) that the definition of Eligible Employee will or will not include an individual if he or she: (i) has not completed at least two (2) years of service since his
or her last hire date (or such lesser period of time as may be determined by the Administrator in its discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period of time as may be determined by the
Administrator in its discretion), (iii) customarily works not more than five (5) months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is an executive, officer or
other manager, or (v) is a highly compensated employee under Section 414(q) of the Code. 
 (m)
“Employer” means any one or all of the Company and its Designated Subsidiaries. With respect to a particular Eligible Employee, Employer means the Company or Designated Subsidiary, as the case may be, that directly employs the
Eligible Employee. 
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the
rules and regulations promulgated thereunder. 
 (o) “Exercise Date” means the first Trading Day on or after
February 20 and August 20 of each year. The first Exercise Date under the Plan will be February 22, 2011. 
 (p)
“Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as follows: 

(i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New
York Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market
Value will be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof will be determined in good faith by
the Administrator; or 
 (iv) For purposes of the Offering Date of the first Offering Period under the Plan, the Fair Market
Value will be the initial price to the public as set forth in the final prospectus included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the
“Registration Statement”). 
 (q) “Fiscal Year” means the fiscal year of the Company.

 (r) “New Exercise Date” means a new Exercise Date set by shortening any Offering Period then in progress.

  

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 (s) “Offering Date” means the first Trading Day of each Offering Period.

 (t) “Offering Periods” means the periods of approximately six (6) months during which an option granted
pursuant to the Plan may be exercised, (i) commencing on the first Trading Day on or after February 20 of each year and terminating on the first Trading Day on or following August 20, approximately six (6) months later, and
(ii) commencing on the first Trading Day on or after August 20 of each year and terminating on the first Trading Day on or following February 20, approximately six (6) months later; provided, however, that the first Offering Period under
the Plan will commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and will end on February 22, 2011. For avoidance of doubt, a new
Offering Period will not start on August 20, 2010. The duration and timing of Offering Periods may be changed pursuant to Sections 4 and 20. 

(u) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code. 
 (v) “Participant” means an Eligible Employee who participates in the Plan.

 (w) “Plan” means this Tesla Motors, Inc. 2010 Employee Stock Purchase Plan. 

(x) “Purchase Price” means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of
Common Stock on the Offering Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be determined for subsequent Offering Periods by the Administrator, in its discretion, subject to compliance with
Section 423 of the Code or pursuant to Section 20. 
 (y) “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 (z) “Trading
Day” means a day on which the national stock exchange upon which the Common Stock is listed is open for trading. 
 3.
Eligibility. 
 (a) First Offering Period. Any individual who is an Eligible Employee immediately prior to the
first Offering Period will be automatically enrolled in the first Offering Period. 
 (b) Subsequent Offering Periods.
Any Eligible Employee on a given Offering Date subsequent to the first Offering Period will be eligible to participate in the Plan, subject to the requirements of Section 5. 

(c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee will be granted an option under
the Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the
Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of
any Parent or Subsidiary of the Company, or (ii) to the extent 
  

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that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at
a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

4. Offering Periods. The Plan will be implemented by consecutive Offering Periods with a new Offering Period commencing on the
first Trading Day on or after February 20 and August 20 each year, or on such other date as the Administrator will determine; provided, however, that the first Offering Period under the Plan will commence with the first Trading Day on or
after the date upon which the Company’s Registration Statement is declared effective by the Securities and Exchange Commission and end on February 22, 2011. The Administrator will have the power to change the duration of Offering Periods
(including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 

5. Participation. 

(a) First Offering Period. An Eligible Employee will be entitled to continue to participate in the first Offering Period pursuant
to Section 3(a) only if such individual submits a subscription agreement authorizing payroll deductions in a form determined by the Administrator (which may be similar to the form attached hereto as Exhibit A) to the Company’s
designated plan administrator (i) no earlier than the effective date of the Form S-8 registration statement with respect to the issuance of Common Stock under this Plan and (ii) no later than ten (10) business days following the
effective date of such S-8 registration statement or such other period of time as the Administrator may determine (the “Enrollment Window”). An Eligible Employee’s failure to submit the subscription agreement during the
Enrollment Window will result in the automatic termination of such individual’s participation in the first Offering Period. 

(b) Subsequent Offering Periods. An Eligible Employee may participate in the Plan pursuant to Section 3(b) by
(i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Offering Date, a properly completed subscription agreement authorizing payroll deductions in the
form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. 
  

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 6. Payroll Deductions. 

(a) At the time a Participant enrolls in the Plan pursuant to Section 5, he or she will elect to have payroll deductions made on each
pay day during the Offering Period in an amount not exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay day during the Offering Period; provided, however, that should a pay day occur on an Exercise Date, a
Participant will have the payroll deductions made on such day applied to his or her account under the subsequent Offering Period. A Participant’s subscription agreement will remain in effect for successive Offering Periods unless terminated as
provided in Section 10 hereof. 
 (b) Payroll deductions for a Participant will commence on the first pay day following the
Offering Date and will end on the last pay day prior to the Exercise Date of such Offering Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 10 hereof; provided, however, that
for the first Offering Period, payroll deductions will commence on the first pay day on or following the end of the Enrollment Window. 

(c) All payroll deductions made for a Participant will be credited to his or her account under the Plan and will be withheld in whole
percentages only. A Participant may not make any additional payments into such account. 
 (d) A Participant may discontinue his
or her participation in the Plan as provided in Section 10. If permitted by the Administrator, as determined in its sole discretion, for an Offering Period, a Participant may increase or decrease the rate of his or her payroll deductions during
the Offering Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement
authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator. If a Participant has not followed such procedures
to change the rate of payroll deductions, the rate of his or her payroll deductions will continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The
Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by Participants during any Offering Period. Any change in payroll deduction rate made pursuant to this Section 6(d)
will be effective as of the first full payroll period following five (5) business days after the date on which the change is made by the Participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll
deduction rate more quickly). 
 (e) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(c), a Participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. Subject to Section 423(b)(8) of the Code and Section 3(c)
hereof, payroll deductions will recommence at the rate originally elected by the Participant effective as of the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the Participant as
provided in Section 10. 
 (f) At the time the option is exercised, in whole or in part, or at the time some or all of the
Common Stock issued under the Plan is disposed of, the Participant must make adequate 
  

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provision for the Company’s or Employer’s federal, state, or any other tax liability payable to any authority, national insurance, social security or other tax withholding obligations,
if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company or the Employer may, but will not be obligated to, withhold from the Participant’s compensation the amount necessary for the
Company or the Employer to meet applicable withholding obligations, including any withholding required to make available to the Company or the Employer any tax deductions or benefits attributable to sale or early disposition of Common Stock by the
Eligible Employee. 
 7. Grant of Option. On the Offering Date of each Offering Period, each Eligible Employee
participating in such Offering Period will be granted an option to purchase on each Exercise Date with respect to an Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such Eligible
Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Eligible Employee’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event will an Eligible Employee be
permitted to purchase during each Offering Period more than 500 shares of the Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase will be subject to the limitations set forth in
Sections 3(c) and 13. The Eligible Employee may accept the grant of such option with respect to the first Offering Period by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) on or
before the last day of the Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b). The Administrator may, for future
Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that an Eligible Employee may purchase during each Offering Period. Exercise of the option will occur as provided in Section 8,
unless the Participant has withdrawn pursuant to Section 10. The option will expire on the last day of the Offering Period. 

8. Exercise of Option. 

(a) Unless a Participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common
Stock will be exercised automatically on the Exercise Date, and the maximum number of full shares subject to the option will be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares of Common Stock will be purchased; any payroll deductions accumulated in a Participant’s account, which are not sufficient to purchase a full share will be retained in the Participant’s account for the
subsequent Offering Period, subject to earlier withdrawal by the Participant as provided in Section 10. Any other funds left over in a Participant’s account after the Exercise Date will be returned to the Participant. During a
Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by him or her. 
 (b)
If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the
Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion provide that the Company will make a
pro rata allocation of the shares of Common Stock available for purchase on such Offering Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and 

 

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as it will determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in
effect or terminate all Offering Periods then in effect pursuant to Section 20. The Company may make a pro rata allocation of the shares available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence,
notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s stockholders subsequent to such Offering Date. 

9. Delivery. As soon as reasonably practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the
Company will arrange the delivery to each Participant of the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. The Company
may permit or require that shares be deposited directly with a broker designated by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer. The Company may require that
shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. No Participant will have any voting, dividend, or other stockholder
rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the Participant as provided in this Section 9. 

10. Withdrawal. 

(a) A Participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to
exercise his or her option under the Plan at any time by (i) submitting to the Company’s payroll office (or its designee) a written notice of withdrawal in the form prescribed by the Administrator for such purpose (which may be similar to
the form attached hereto as Exhibit B), or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of the Participant’s payroll deductions credited to his or her account will be paid to
such Participant promptly after receipt of notice of withdrawal and such Participant’s option for the Offering Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made for such Offering
Period. If a Participant withdraws from an Offering Period, payroll deductions will not resume at the beginning of the succeeding Offering Period, unless the Participant re-enrolls in the Plan in accordance with the provisions of Section 5.

 (b) A Participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to
participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods, which commence after the termination of the Offering Period from which the Participant withdraws. 

11. Termination of Employment. Upon a Participant’s ceasing to be an Eligible Employee, for any reason, he or she will be
deemed to have elected to withdraw from the Plan and the payroll deductions credited to such Participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan will be returned to such
Participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such Participant’s option will be automatically terminated. 

 

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 12. Interest. No interest will accrue on the payroll deductions of a Participant in
the Plan. 
 13. Stock. 

(a) Subject to adjustment upon changes in capitalization of the Company as provided in Section 19 hereof, the maximum number of
shares of Common Stock which will be made available for sale under the Plan will be 1,666,666 shares, plus an annual increase to be added on the first day of each Fiscal Year beginning with the 2011 Fiscal Year, equal to the least of
(i) 1,000,000 shares of Common Stock, (ii) one percent (1%) of the outstanding shares of Common Stock on such date, or (iii) an amount determined by the Administrator. 

(b) Until the shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), a Participant will only have the rights of an unsecured creditor with respect to such shares, and no right to vote or receive dividends or any other rights as a stockholder will exist with respect to such shares. 

(c) Shares of Common Stock to be delivered to a Participant under the Plan will be registered in the name of the Participant or in the
name of the Participant and his or her spouse. 
 14. Administration. The Plan will be administered by the Board or a
Committee appointed by the Board, which Committee will be constituted to comply with Applicable Laws. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine
eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Administrator will, to the full extent permitted by law, be final and binding upon all parties. Notwithstanding any
provision to the contrary in this Plan, the Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside of the
United States. Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, handling of payroll deductions, making
of contributions to the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold payroll deductions, payment of interest, conversion of local currency, obligations to pay payroll
tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates which vary with local requirements. 

15. Designation of Beneficiary. 

(a) A Participant may file a designation of a beneficiary who is to receive any shares of Common Stock and cash, if any, from the
Participant’s account under the Plan in the event of such Participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such Participant of such shares and cash. In addition, a Participant may
file a designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to exercise of the option. If a Participant is married and the designated
beneficiary is not the spouse, spousal consent will be required for such designation to be effective. 
 (b) Such designation of
beneficiary may be changed by the Participant at any time by notice in a form determined by the Administrator. In the event of the death of a Participant and in 

 

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the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company will deliver such shares and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

(c) All beneficiary designations will be in such form and manner as the Administrator may designate from time to time. 

16. Transferability. Neither payroll deductions credited to a Participant’s account nor any rights with regard to the
exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15 hereof)
by the Participant. Any such attempt at assignment, transfer, pledge or other disposition will be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10
hereof. 
 17. Use of Funds. The Company may use all payroll deductions received or held by it under the Plan for any
corporate purpose, and the Company will not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued, Participants will only have the rights of an unsecured creditor with respect to such shares. 

18. Reports. Individual accounts will be maintained for each Participant in the Plan. Statements of account will be given to
participating Eligible Employees at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any. 

19. Adjustments, Dissolution, Liquidation, Merger or Change in Control. 

(a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the
corporate structure of the Company affecting the Common Stock occurs, the Administrator, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will, in such manner as it may
deem equitable, adjust the number and class of Common Stock that may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the
numerical limits of Sections 7 and 13. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, any Offering Period then in progress will be shortened by setting a New Exercise Date, and will terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by
the Administrator. The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation. The Administrator 

 

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will notify each Participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New
Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

(c) Merger or Change in Control. In the event of a merger or Change in Control, each outstanding option will be assumed or an
equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, the Offering Period with respect to which
such option relates will be shortened by setting a New Exercise Date and will end on the New Exercise Date. The New Exercise Date will occur before the date of the Company’s proposed merger or Change in Control. The Administrator will notify
each Participant in writing prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise
Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

20. Amendment or Termination. 

(a) The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any
reason. If the Plan is terminated, the Administrator, in its discretion, may elect to terminate all outstanding Offering Periods either immediately or upon completion of the purchase of shares of Common Stock on the next Exercise Date (which may be
sooner than originally scheduled, if determined by the Administrator in its discretion), or may elect to permit Offering Periods to expire in accordance with their terms (and subject to any adjustment pursuant to Section 19). If the Offering
Periods are terminated prior to expiration, all amounts then credited to Participants’ accounts which have not been used to purchase shares of Common Stock will be returned to the Participants (without interest thereon, except as otherwise
required under local laws) as soon as administratively practicable. 
 (b) Without stockholder consent and without limiting
Section 20(a), the Administrator will be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s
Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 

(c) In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting
consequences, the Administrator may, in its discretion and, to the extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequence including, but not limited to: 

(i) amending the Plan to conform with the safe harbor definition under Financial Accounting Standards Board Accounting Standards
Codification Topic 718, including with respect to an Offering Period underway at the time; 
  

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 (ii) altering the Purchase Price for any Offering Period including an Offering Period
underway at the time of the change in Purchase Price; 
 (iii) shortening any Offering Period by setting a New Exercise Date,
including an Offering Period underway at the time of the Administrator action; 
 (iv) reducing the maximum percentage of
Compensation a Participant may elect to set aside as payroll deductions; and 
 (v) reducing the maximum number of Shares a
Participant may purchase during any Offering Period. 
 Such modifications or amendments will not require stockholder approval
or the consent of any Plan Participants. 
 21. Notices. All notices or other communications by a Participant to the
Company under or in connection with the Plan will be deemed to have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

22. Conditions Upon Issuance of Shares. Shares of Common Stock will not be issued with respect to an option unless the exercise of
such option and the issuance and delivery of such shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance. 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the
time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law. 
 23. Term of Plan. The Plan will become effective upon the earlier to
occur of its adoption by the Board or its approval by the stockholders of the Company. It will continue in effect for a term of ten (10) years, unless sooner terminated under Section 20. 

24. Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months
after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
  

 -12- 

 EXHIBIT A 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

SUBSCRIPTION AGREEMENT 

(To be filed by amendment.) 

 EXHIBIT B 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

NOTICE OF WITHDRAWAL 

The undersigned Participant in the Offering Period of the Tesla Motors, Inc. 2010 Employee Stock Purchase Plan that began on
            ,         (the “Offering Date”) hereby notifies the Company that he or she hereby withdraws from the Offering Period. He
or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The undersigned understands and agrees that his or her option for
such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering Period and the undersigned will be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

	
	Name and Address of Participant:
	
	  

	
	  

	
	  

	
	Signature:
	
	  

			
		
	Date:Form of Securityholders Agreement

 Exhibit 4.2 

 
  

SMART TECHNOLOGIES INC. 
  

 
 SECURITYHOLDERS AGREEMENT 

 JUNE             , 2010 

 
  

 

 TABLE OF CONTENTS 

 

			
	 	  	Page
	 Article 1 DEFINITIONS AND INTERPRETATION
	  	
	 1.1          Definitions
	  	1
	 1.2          Rules of Interpretation
	  	3
	 1.3          Headings and Table of Contents
	  	4
	 1.4          No Strict Construction
	  	4
	 1.5          Covenants Regarding Implementation
	  	4
	 1.6          Entire Agreement
	  	5
	 1.7          Waiver
	  	5
	 1.8          Enforceability
	  	5
	 1.9          Schedules
	  	5
		
	 Article 2 GOVERNANCE
	  	6
	 2.1          Constitution of the Board of Directors
	  	6
	 2.2          Designees to the Board of Directors
	  	6
	 2.3          Electing Directors and Filling Vacancies
	  	6
	 2.4          Removal of Directors
	  	7
	 2.5          Officers, Directors and Committee Members
	  	8
	 2.6          Unanimous Consent to Amend Charter
	  	8
		
	 Article 3 TRANSFERS
	  	8
	 3.1          Transferees are Bound
	  	8
		
	 Article 4 GENERAL PROVISIONS
	  	8
	 4.1          Representations and Warranties
	  	8
	 4.2          Term; Outside Date
	  	9
	 4.3          Time of Essence
	  	9
	 4.4          Severability
	  	9
	 4.5          Assignment
	  	9
	 4.6          Remedies
	  	9
	 4.7          Notices
	  	10
	 4.8          Governing Law
	  	12
	 4.9          Amendment
	  	12
	 4.10        Attornment
	  	12
	 4.11        Counterpart
	  	12

 SECURITYHOLDERS AGREEMENT 

THIS SECURITYHOLDERS AGREEMENT is made as of the          day of June, 2010 among
SMART TECHNOLOGIES INC., an Alberta corporation (“SMART” or the “Company”), IFF HOLDINGS INC., an Alberta corporation (“Founder”), INTEL CORPORATION, a Delaware corporation
(“Intel”) and SCHOOL S.À R.L., a Luxembourg body corporate (“Apax”). 
 RECITALS:

  

	A.	Apax, Intel and Founder collectively own all the issued and outstanding Class B Shares (as defined below) of the Company; 

 

	B.	The parties hereto are entering this Agreement in contemplation of the completion of the Company’s initial public offering of its Class A Subordinate Voting
Shares (as defined below); and 

  

	C.	Apax, Intel and Founder wish to govern the exercise of their voting rights for their Equity Shares. 

The Parties agree as follows: 

ARTICLE 1 

DEFINITIONS AND INTERPRETATION 
  

	1.1	Definitions 

 In this
Agreement: 
 “Act” means the Business Corporations Act (Alberta); 

“Affiliate” means affiliates and associates as those terms are defined in the Act; 

“Agreement” means this Securityholders Agreement and all schedules, if any, attached to this Agreement; 

“Apax Designee” has the meaning ascribed thereto in Section 2.2(a)(iii); 

“Applicable Law” means, in relation to any Person, property, transaction or event, all applicable provisions, whether now or hereafter
in effect (or mandatory applicable provisions, if so specified) of national, international, federal, provincial, state or local laws, statutes, rules, regulations, official directives and orders of all Governmental Authorities (whether or not having
the force of law) and all judgments, orders and decisions of all Governmental Authorities in which the Person in question is a party or by which the Person, property, transaction or event is bound or having application to the Person, property,
transaction or event; 
 “Board of Directors” or “Board” means the board of directors of SMART; 

“Business Day” means a day other than a Saturday, Sunday or statutory holiday in Calgary, Alberta, London, England or New York, New
York; 
 “Charter” means the articles of incorporation, articles of amalgamation, by-laws or other documents creating or
evidencing the existence of or governance of a Person, other than an individual; 

 “Class B Shareholders” means Apax, Intel or Founder and any other Person who becomes a
holder of Class B Shares from time to time and “Class B Shareholder” means any one of them; 
 “Class A
Shares” means the Class A Subordinate Voting Shares of the Company and any successor Securities into which such Class A Shares may be converted or changed as a result of, or which result from, or are payable on, such Class A
Shares upon a consolidation, subdivision, reclassification, stock split, stock dividend, distribution, recapitalization, redesignation, amalgamation, merger, arrangement, reorganization or other transaction, in each case other than the Class B
Shares or any successor Securities to the Class B Shares; 
 “Class B Shares” means the Class B Shares of the Company, and
any successor Securities into which such Class B Shares may be converted or changed as a result of, or which result from, or are payable on, such Class B Shares upon a consolidation, subdivision, reclassification, stock split, stock dividend,
distribution, recapitalization, redesignation, amalgamation, merger, arrangement, reorganization or other transaction, in each case other than the Class A Shares or any successor Securities to the Class A Shares; 

“Closing” means the completion of the Company’s initial public offering of Class A Subordinate Voting Shares; 

“Designees” means the Founder’s Designees, the Intel Designee and the Apax Designee, and “Designee” means any of them;

 “Equity Shares” means the Class B Shares and the Class A Shares; 

“Founder’s Designees” has the meaning ascribed thereto in Section 2.2(a)(i); 

“Governmental Authorities” means any national, international, federal, state, provincial, county, local or municipal government; any
governmental body, agency, authority, board, bureau, department or commission (including any taxing authority); any instrumentality or office of any of the foregoing (including any court or tribunal) exercising executive, legislative, judicial,
regulatory or administrative functions; or any Person directly or indirectly controlled by any of the foregoing; 
 “Independent
Director” means a Person who is: (A) independent of the Company under Applicable Law for the purposes of serving on a committee of the Board; and (B) a Non-Affiliate; 

“Initial Class B Shareholder” has the meaning ascribed thereto in Section 4.2(b); 

“Intel Designee” has the meaning ascribed thereto in Section 2.2(a)(ii); 

“Lien” means any assignment, mortgage, charge, pledge, lien, encumbrance, title retention agreement or any security interest whatsoever,
howsoever created or arising, whether absolute or contingent, fixed or floating, legal or equitable, perfected or not; 

“Non-Affiliate” means a Person who is: (A) not a Class B Nominee of any Class B Shareholder; and (B) not a director, officer,
employee, contractor, agent or representative of any Class B Shareholder; and (C) acting at arm’s length with each Class B Shareholder; 

“Parties” means SMART, Founder, Intel, and Apax and any other Person that becomes a party to this Agreement, and
“Party” means any one of them; 
 “Party Representative” has the meaning ascribed thereto in Section 4.7;

  

 2 

 “Person” means any individual, partnership, limited partnership, limited liability company,
joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, regulatory body or agency, government or
governmental agency, authority or entity however designated or constituted; 
 “Relevant Stock Exchanges” means the Toronto
Stock Exchange or the Nasdaq Global Select Market; 
 “Securities” means any stock, shares, units, instalment receipts, voting
trust certificates, or other equity or equity-like securities including, without limitation, preferred shares or other securities commonly referred to as preferred equity certificates “PECs”, bonds, debentures, notes, other evidences of
indebtedness, or other documents or instruments commonly known as securities or any certificates of interests, shares, or participations in temporary or interim certificates for, receipts for, guarantees of or warrants, options or rights to
subscribe for, purchase or acquire any of the foregoing; 
 “Shareholder Documents” has the meaning ascribed thereto in
Section 1.6; 
 “Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, Lien or other arrangement
by which possession, legal title or beneficial ownership passes from one Person (the “Transferor”) to another or to the same Person in a different capacity (each, a “Transferee”) whether or not voluntary and whether
or not for value, and any agreement to effect any of the foregoing; 
 “Vote” means, with respect to any Class B Shareholder,
at any meeting of the shareholders of the Company or in connection with a written resolution: 
  

	(a)	exercise, or cause to be exercised, the votes attached to all Equity Shares owned by such Class B Shareholder or over which such Class B Shareholder has the
power to direct voting; and 

  

	(b)	vote by proxy, written consent or other voting arrangement executed or granted by such Class B Shareholder over the Equity Shares owned by it or over which it has
the power to direct voting. 

  

	1.2	Rules of Interpretation 

In this Agreement, unless a clear contrary intention appears: 

 

	(a)	the singular number includes the plural number and vice versa; 

  

	(b)	reference to any Person includes such Person’s successor and assignee but, if applicable, only if the succession by such successor or assignment to such assignee
is permitted hereby; 

  

	(c)	use of the masculine, feminine or neuter gender includes all genders; 

  

	(d)	a grammatical variation of a defined term will have a corresponding meaning; 

 

	(e)	reference to any agreement, document or instrument means such agreement, document or instrument as amended and in effect from time to time in accordance with the terms
thereof; 

  

	(f)	 reference to any Applicable Law means such Applicable Law, rule or regulation as amended, replaced or re-enacted, in whole or in part, and in effect
from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any Applicable Law means that provision of such Applicable Law, rule or regulation from time to

  

 3 

	 	 
time in effect and constituting the substantive amendment, replacement or re-enactment of such section or other provision; 

 

	(g)	reference to any Section or Schedule means the specified Section or Schedule to this Agreement; 

 

	(h)	“Agreement”, “this Agreement”, “hereunder”, “hereof”, “hereto”, “hereof”, “herein” and words of
similar import are references to the whole of this Agreement and not, unless a particular Section or other part thereof is referred to, to any particular Section or other part; 

 

	(i)	“including” (and, with correlative meanings, “include” and “includes”) means including without limiting the generality of any description
preceding or succeeding such term and for purposes hereof the rule of ejusdem generis will not be applicable to limit a general statement, followed by or referable to an enumeration of specific matters, to matters similar to those
specifically mentioned; 

  

	(j)	references to time of day or date means the local time or date in Calgary, Alberta; 

 

	(k)	where any action is to be taken, on or as of a day that is not a Business Day, that action is to be taken on or as of the next following Business Day;

  

	(l)	any obligation of a Party, however expressed, including a statement that it must or will do or refrain from doing anything, will be construed as a covenant by that
Party; 

  

	(m)	a reference to a misrepresentation or breach of warranty includes an inaccuracy of a representation or warranty; and 

 

	(n)	an undertaking by a Party not to do or to omit to do any act or thing includes an undertaking not to cause or assist in the doing or omission of such act or thing.

  

	1.3	Headings and Table of Contents 

The division of this Agreement and the table of contents and headings are for convenience of reference only and will not affect the
construction or interpretation hereof. 
  

	1.4	No Strict Construction 

This Agreement was negotiated by the Parties with the benefit of legal representation and any rule of construction or interpretation
otherwise requiring this Agreement to be construed or interpreted against any Party will not apply to any construction or interpretation hereof or thereof. 
  

	1.5	Covenants Regarding Implementation 

  

	(a)	Each of the Class B Shareholders covenants and agrees that it will Vote to accomplish and give effect to the terms and conditions of this Agreement and against any
proposed corporate action contrary to the terms and conditions of this Agreement. 

  

	(b)	The Parties agree to execute and deliver such further and other documents and perform and cause to be performed such further and other acts and things as may be
reasonably necessary or desirable in order to give full effect to this Agreement. 

  

 4 

	(c)	The Company agrees not to approve any Transfer of Class B Shares unless it reasonably appears to the Company that this Agreement has been complied with.

  

	(d)	Each of the Class B Shareholders agrees to Vote so as to cause the Charter of the Company to be amended to resolve any conflict between the provisions of this Agreement
and the Charter of the Company in favour of the provisions of this Agreement. 

  

	(e)	The Company by its execution hereof acknowledges that it has actual notice of the terms of this Agreement, consents hereto and hereby covenants with each of the
Class B Shareholders that it will at all times during the term of this Agreement be governed by the terms and provisions hereof in carrying out its business and affairs and, accordingly, will give or cause to be given such notices, execute or
cause to be executed such documents and do or cause to be done all such acts, matters and things as may from time to time be necessary or required to carry out the terms and intent hereof. 

 

	1.6	Entire Agreement 

 This
Agreement and all documents, instruments or agreements contemplated by this Agreement (collectively, the “Shareholder Documents”) are all of the agreements between or among the Parties pertaining to the subject matter of this
Agreement. There are no warranties, conditions, or representations (including any that may be implied by statute) and there are no agreements in connection with such subject matter except as specifically set forth or referred to in the Shareholder
Documents. No Class B Shareholder has relied on or been induced to enter into this agreement by reason of any warranty, representation, opinion, advice or assertion of fact made either prior to or contemporaneously with this Agreement by any Party
or its directors, officers or agents to any other Party or its directors, officers or agents, except as expressly set forth herein. 
  

	1.7	Waiver 

 No delay in
exercising any rights hereunder, nor the failure by any Party to enforce any provision of this Agreement will be construed as a waiver of such rights or provision and no waiver of this Agreement or any provision of this Agreement will be effective
unless it is executed in writing by the Party against which such waiver is sought to be enforced. No waiver of any provision of this Agreement will constitute a waiver of any other provision nor will any waiver of any provision of this Agreement
constitute a continuing waiver unless otherwise expressly provided. 
  

	1.8	Enforceability 

 To the
extent that any matter which is agreed to herein cannot be undertaken as a matter of Applicable Law, the Parties shall use all reasonable endeavours to accomplish the purpose and intent of such matter in compliance with Applicable Law. 

 

	1.9	Schedules 

 The following
schedules attached to this Agreement, for all purposes of this Agreement, form an integral part of it: 
  

					
	 Schedule A
	  	–	  	Shareholdings of the Class B Shareholders
	 Schedule B
	  	–	  	Directors and Officers of SMART
	 Schedule C
	  	–	  	Form of Articles of Amalgamation of the Company
	 Schedule D
	  	–	  	Form of By-laws of the Company

  

 5 

 ARTICLE 2 

GOVERNANCE 
  

	2.1	Constitution of the Board of Directors 

Each Class B Shareholder will Vote to cause the number of directors on the Board of Directors of the Company to be set at seven, and
will not direct or encourage its Designee(s) on the Board to effect any action inconsistent with the foregoing. 
  

	2.2	Designees to the Board of Directors 

  

	(a)	Each Class B Shareholder will Vote to elect as directors on the Board of Directors: 

 

	 	(i)	two individuals nominated by Founder (the “Founder’s Designees”); 

 

	 	(ii)	one individual nominated by Intel (the “Intel Designee”); and 

 

	 	(iii)	one individual nominated by Apax (the “Apax Designee”). 

  

	(b)	Each Designee must be an individual who is not disqualified from acting as a director under Applicable Law. For the avoidance of doubt, no Designee is required to be an
Independent Director. Each director of the Company other than those designated in Section 2.2(a) must be an Independent Director. 

  

	(c)	Each Class B Shareholder will provide the other Class B Shareholders and the Company with written notice of any change in its Designee (or either Designee, in
the case of Founder) promptly after becoming aware of such change. If a Designee resigns or does not stand for re-election, each Class B Shareholder agrees to Vote to elect the replacement director designated by the Class B Shareholder that
nominated such Designee. 

  

	(d)	The Parties understand and agree that the Apax Designee shall be appointed (and may be removed in accordance with Section 2.4) by Apax US VII, L.P., and Apax US
VII, L.P. is a third party beneficiary of this Section 2.2(d). 

  

	2.3	Electing Directors and Filling Vacancies 

  

	(a)	At each annual or special meeting of the shareholders of the Company at which directors are to be elected, the Company will include in the slate of nominees recommended
by the Board and in the Company’s information circular distributed in connection with the solicitation of proxies for such meeting of shareholders, the names of each Designee. 

 

	(b)	Each Class B Shareholder will provide the other Class B Shareholders and the Company with written notice at least 50 days before such annual or special
meeting will be held of any change in its Designee(s) in connection with such annual or special meeting. If a Class B Shareholder fails to provide such written notice within the time period specified in the preceding sentence, the Company shall not
be required to comply with its obligations under Section 2.3(a) with respect to any Designee sought to be nominated pursuant to such written notice. 

  

 6 

	(c)	If a Class B Shareholder, being entitled to do so, fails for any reason to nominate its Designee within 30 days after an individual who was such Class B
Shareholder’s designee ceases to be a director on the Board, the nominating and governance committee may nominate an individual who is an Independent Director to fill the vacancy created thereby. Any Independent Director appointed under this
Section 2.3(c) will be required to submit an undated resignation at the time of their appointment to facilitate their replacement in accordance with the provisions in this Section 2.3(c). That Independent Director will serve until a
successor nominated by the relevant Class B Shareholder has been identified at which time the Independent Director’s resignation will be accepted and the Independent Director will resign from the Board and the successor nominee will be
seated as a director on the Board. The election at any time by a Class B Shareholder not to exercise (in whole or in part) the right to nominate a Designee(s) does not constitute a permanent waiver or relinquishment of such right.

  

	(d)	If a Class B Shareholder loses the right to nominate all or any portion of its nominees for directors for any reason, the director seats that the Class B
Shareholder has lost will be filled by majority vote of the Independent Directors. 

  

	2.4	Removal of Directors 

  

	(a)	On the written request of a Class B Shareholder (with respect to its Designee), each Class B Shareholder will Vote to remove the requesting Class B
Shareholder’s Designee, and to elect any replacement nominated by that Class B Shareholder. Subject to Section 2.3(d), no Class B Shareholder will take any action to cause the removal of any directors of the Board nominated by
any other Class B Shareholder without the prior written request of such other Class B Shareholder. 

  

	(b)	Notwithstanding anything to the contrary in this Agreement, any director may be removed from the Board for “cause” if requested by the Class B
Shareholders in accordance with Section 2.4(c). For purposes of this Section 2.4(b), “cause” means, with respect to any director: (i) the existence of any facts or circumstances which disqualify such director from acting as
a director under Applicable Law; or (ii) the conviction of such director of, or determination of liability of such director by a Court or administrative body having jurisdiction of, or the entry of a guilty plea, a plea of nolo
contendere or an admission to judgment by such director to, any charge or offence involving fraud, a breach of fiduciary duty or breach of insider trading laws or regulations. 

 

	(c)	If: (i) the Designee of any Class B Shareholder may be removed for “cause” in accordance with this Article 2; or (ii) this Agreement terminates
with respect to a Class B Shareholder pursuant to Section 4.2(b), then, if requested in writing by any Class B Shareholder or by the Company, the Designee nominated by such Class B Shareholder shall immediately resign or all
Class B Shareholders shall use all reasonable efforts to cause the removal or resignation of such Designee(s) at the earliest possible time. In the event of the proposed removal of any director of the Board in accordance with this
Section 2.4(c), each Class B Shareholder agrees to Vote for such removal. If no request to remove a director is made in accordance with this Section 2.4(c), the applicable Designee(s) of that Class B Shareholder will serve the
remaining portion of their then-current term. If the Designee of any Class B Shareholder is removed for “cause”, such Class B Shareholder is entitled to designate a replacement Designee to serve on the Board of Directors as their Designee.

  

 7 

	2.5	Officers, Directors and Committee Members 

The officers and directors of the Company as at the date of this Agreement are as set forth on Schedule B. Changes to any of the
foregoing positions and the creation of any committees will be carried out in accordance with the Charter of the Company. 
  

	2.6	Unanimous Consent to Amend Charter 

No Class B Shareholder may Vote in favour of any proposal to amend the Charter of the Company, a copy of which as at the date hereof
is attached hereto as Schedules C and D, pursuant to Sections 173 or 102, as applicable, of the Act or otherwise and shall Vote against any such proposal, unless prior to such Vote, all Class B Shareholders have waived in writing the
applicability of this Section 2.6 with respect to such proposal. 
 ARTICLE 3 

TRANSFERS 
  

	3.1	Transferees are Bound 

No Class B Share may be Transferred by any Class B Shareholder in any transaction or arrangement in which such Class B Share
continues to be a Class B Share following such Transfer (rather than being converted into a Class A Share) unless such Transfer is in accordance with the Charter and unless and until the Transferee thereof agrees in writing to be bound by each
provision of this Agreement to the same extent as if such Transferee were such Class B Shareholder hereunder. 

ARTICLE 4 

GENERAL PROVISIONS 
  

	4.1	Representations and Warranties 

Each of the Parties represents and warrants to each other that: 

 

	(a)	such Party (other than the Company) beneficially owns of the number of Securities in SMART which are expressed to be owned by it in Schedule A to this Agreement
and that such Securities are not subject to any Liens created by or through them (other than pursuant to the Shareholder Documents) and that no other Person has any rights to become a holder, beneficial owner or possessor of any of such Securities
or of the certificates representing the same (other than those individuals and/or entities set forth in the footnotes to the “Principal and Selling Shareholders” table in the Company’s F-1 Registration Statement filed in connection
with its initial public offering); 

  

	(b)	such Party has the capacity to enter into and give full effect to this Agreement and each of the other Shareholder Documents; and 

 

	(c)	this Agreement and each of the other Shareholder Documents to which it is a party constitutes a valid and binding obligation enforceable against such Party in
accordance with its terms, subject to the usual exceptions as to insolvency, bankruptcy and the availability of equitable remedies. 

  

 8 

	4.2	Term; Outside Date 

  

	(a)	This Agreement will come into force and effect upon (and only upon) the Closing and, subject to Section 4.2(b), will continue in force until the earlier of the
date: (i) on which there is only one Class B Shareholder or there are no Class B Shareholders; or (ii) all Class B Shareholders agree to terminate it. 

 

	(b)	Notwithstanding Section 4.2(a) above, if Closing does not occur within thirty (30) days following the execution of this Agreement, this Agreement will be null
and void and of no force or effect. 

  

	(c)	This Agreement will terminate, with respect to each Initial Class B Shareholder and with respect to all other Class B Shareholders, if any, that are Permitted Holders
(as defined in the Charter of the Company) of the Class B Shares of such Initial Class B Shareholder, on the date on which such Initial Class B Shareholder and such Permitted Holders collectively hold Class B Shares constituting less than 10% of the
total number of outstanding Equity Shares. As used herein “Initial Class B Shareholder” means Apax, Intel or Founder. 

  

	4.3	Time of Essence 

 Time is
of the essence of this Agreement. 
  

	4.4	Severability 

 If any term
or other provision of this Agreement is declared invalid, illegal or unenforceable by a court of competent jurisdiction all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic
or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any Party. Upon any determination that any term or other provision is invalid, illegal or unenforceable, the Parties to this
Agreement will negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the
fullest extent possible. 
  

	4.5	Assignment 

 No Party may
assign its rights or obligations under this Agreement to any other Person. This Section 4.5 will not preclude a Transfer of a Party’s Class B Shares in accordance with Article 3 of this Agreement. 

 

	4.6	Remedies 

 Each Party
acknowledges that its or its subsidiary’s failure to observe or perform its covenants and agreements herein contained will result in damages to the other Parties which could not be adequately compensated for by a monetary award and accordingly
each Party hereto agrees that in addition to all other remedies available to a Party at law or in equity if another Party fails to observe or perform its covenants herein, a Party will be entitled as a matter of right to apply to a court of
competent jurisdiction for, and to obtain, relief by way of restraining order, injunction, decree of specific performance or otherwise, as may be appropriate to ensure compliance by each Party with this Agreement. 

 

 9 

	4.7	Notices 

 Any notice or
other communication required or permitted to be given hereunder will be in writing and will be given by prepaid first-class mail, by overnight delivery by an internationally recognized courier service that guarantees delivery the next Business Day
(or the date following the next Business Day if a delivery is international), by facsimile or other means of electronic communication or by delivery as hereafter provided. Any such notice or other communication, if mailed by prepaid first-class mail
at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, will be deemed to have been received on the fourth Business Day after the post-marked date thereof, if sent by an internationally
recognized courier service, will be deemed to have been received on the second Business Day after deposit with the courier, or if sent by facsimile or other means of electronic communication, will be deemed to have been received on the Business Day
following the sending and verification of receipt thereof by the Party sending such notice, or if delivered by hand will be deemed to have been received at the time it is delivered to the applicable address noted below to the party representative
(each a “Party Representative”) designated below. Notice of change of address will also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other
communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section. Notices and other communications shall be addressed to each Party
Representative as follows: 
  

	(a)	If to SMART, to its Party Representative: 

SMART Technologies Inc. 

3636 Research Road NW 

Calgary, AB T2L 1Y1 

Attention:   General Counsel 

Facsimile:   +1 (403) 407-5201 
  

	(b)	If to Apax, to its Party Representative: 

Apax Worldwide Partners LLP 

15 Portland Place 

London UK 
 W1B
1PT 
 Attention:   Salim Nathoo 

Facsimile:   +44 (0) 207 872 6334 

with a copy to: 

Goodmans LLP 

Bay Adelaide Centre 

333 Bay Street, Suite 3400 

Toronto, ON M5H 2S7 

Attention:   Lawrence Chernin 

Facsimile:   416-979-1234 
  

 10 

	(c)	If to Founder, to its Party Representative: 

Byye Management Inc. 

825, 808 – 4th Avenue S.W. 

Calgary, AB T2P 3E8 

Attention:   Nancy Macnab 

Facsimile:   +1 (403) 699-9781 

with a copy to: 

Burnet, Duckworth & Palmer LLP 

1400, 350 – 7th Avenue SW 

Calgary, AB T2P 3N9 

Attention:   Brian Borich 

Facsimile:   +1 (403) 260-0332 
  

	(d)	If to Intel, to its Party Representative: 

Intel Corporation 

2200 Mission College Blvd, RN6-46 

Santa Clara, CA 95054 USA 

Attention:   Intel Capital Portfolio Manager 

Facsimile:  +1 (408) 765-6038 

with a copy to portfolio.manager@intel.com 

with a copy to: 

Stikeman Elliott LLP 

155 René Levesque Blvd. West 

Montreal, QC H4A 1N7 

Attention:   Edward B. Claxton 

Facsimile:   (514) 397-3222 

Each Party hereto acknowledges and agrees that each Party Representative may be replaced with another Person from time to time on not
less than five Business Days’ notice to all other Parties. Each Party is entitled to accept the written advice, instruction or direction of a Party Representative on behalf of that Party without further enquiry. Each Party agrees to be bound by
any advice, instruction or direction in writing given by the Party Representative on behalf of that Party and each Party hereby waives any right to contest or disaffirm any such advice, instruction or direction in writing of the Party Representative
in the absence of manifest error. Notwithstanding the foregoing, nothing in this Section 4.7 will entitle the Party Representative to amend this Agreement, except in 

 

 11 

 
accordance with Section 4.9 and nothing done by the Party Representative may be considered to be an amendment to this Agreement. For clarity, the Party Representative is only entitled to
exercise or refrain from exercising a Party’s rights under this Agreement. Nothing in this Agreement restricts or prevents each director of the Board from exercising his or her rights or discharging his or her duties as a director under this
Agreement. 
  

	4.8	Governing Law 

 This
Agreement will be construed and enforced in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein. 
  

	4.9	Amendment 

 This
Agreement may only be amended, in writing, signed by all of the Parties to this Agreement and specifically referring to an agreement of the Parties to amend this Agreement. 

 

	4.10	Attornment 

 Each of the
Parties agrees that any action or proceeding arising out of or relating to this Agreement may be instituted in the courts of Alberta, waives any objection which it may have now or later to the venue of that action or proceeding, irrevocably submits
to the jurisdiction of those courts in that action or proceeding, agrees to be bound by any judgement of those courts and agrees not to seek, and hereby waives, any review of the merits of any such judgement by the court of any other jurisdiction.

  

	4.11	Counterpart 

 This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. Counterparts may be executed either in original,
portable document format (pdf) or faxed form and the Parties may adopt any signatures received by a receiving fax machine or electronic mail as original signatures of the Parties; provided, however, that any Party providing its signature in such
manner shall promptly forward to the other Parties an original of the signed copy of this Agreement which was so faxed or sent by electronic mail. 
  

 12 

 IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be duly executed as of
the date first written above. 
  

									
	SMART TECHNOLOGIES INC.	 		 	INTEL CORPORATION
					
	Per:	 	  	 		 	Per:	 	  
		 	Name:	 		 		 	Name:
		 	Title:	 		 		 	Title:
			
	IFF HOLDINGS INC.	 		 	SCHOOL S.À R.L.
					
	Per:	 	  	 		 	Per:	 	  
		 	Name:	 		 		 	Name: 
		 	Title:	 		 		 	Title: 

  

 13 

 SCHEDULE A 

EQUITY SHARES 

CLASS B SHAREHOLDERS 
  

					
	 Name of Shareholder
	 	 Type of Security
	 	 Number

			
	Founder	 	Class B Shares	 	  42,606,653
		 	Class A Preferred Shares	 	104,630,742
			
	 Intel
	 	Class B Shares	 	  42,606,653
		 	Class A Preferred Shares	 	109,974,662
			
	 Apax
	 	Class B Shares	 	  84,876,494
		 	Class A Preferred Shares	 	219,071,282

  

 1 

 SCHEDULE B 

DIRECTORS AND OFFICERS OF SMART 
  

			
	 Initial Directors
	 	 Names

	 Founders Designees
	 	David Martin
		 	Nancy Knowlton
		
	 Apax Designee
	 	 Salim Nathoo

Adil Haque

		
	 Intel Designee
	 	 Arvind Sodhani

David Thomas

  

 

			
	 Officers
	  	 Names

	 Executive Chairman
	  	David Martin
	 President and Chief Executive Officer
	  	Nancy Knowlton
	 Vice President, SMART Technologies
	  	Thomas Hodson
	 Vice President, Finance and Chief Financial Officer
	  	G.A. (Drew) Fitch
	 Vice President, Legal and General Counsel
	  	Jeffrey Losch

  

 1 

 SCHEDULE C 

FORM OF ARTICLES OF AMALGAMATION OF THE COMPANY 

 

 1 

 SCHEDULE D 

FORM OF BY-LAWS OF THE COMPANY 
  

 1

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