Document:

EX-10.3

 Exhibit 10.3 

ALTAIR ENGINEERING INC. 

2001 INCENTIVE AND NON-QUALIFIED STOCK OPTION PLAN 

INCENTIVE STOCK OPTION AGREEMENT 

(AS AMENDED AS OF APRIL 3, 2017) 
 For the
purpose of (a) encouraging and enabling selected management, other employees, and directors of the Company to acquire a proprietary interest in the Common Stock of the Company, (b) attracting, retaining and motivating Participants to
attain exceptional levels of performance and (c) providing 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 Incentive and Non-qualified Stock Option Plan, will award Options to purchase Common Stock to certain 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 Incentive Stock Options to Participant to purchase «Options» Shares, has designated «DATE» as the Award Date for such Options, has
designated the sum of «PRICE» Dollars as the Exercise Price, and, subject to the provisions of this Agreement, has designated the period from «DATE» to «DATE» as the Exercise Period applicable to
such Options. 
 The grant, holding, and exercise of such Incentive Stock Options shall be subject to the terms and conditions of the Plan and the
following: 
 1. Definitions. 

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

(b) “Award” shall mean any grant of Incentive 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) “Change in Control” shall be deemed to occur upon: 

(1) the acquisition (whether by merger, consolidation, share exchange, tender offer or similar form of corporate transaction) (a “Business
Combination”) by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”), unless immediately following such
Business Combination the holders of more than 50% of the total voting power of the Outstanding Company Voting Securities immediately prior to such Business Combination own more than 50% of the total voting power of (x) the entity resulting from
such Business Combination (the “Surviving Company”) or (y) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of
the board of directors (or the analogous governing body) of the Surviving Company; provided, however, that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control: (I) any acquisition by the Company of its
Outstanding Company Voting Securities, (II) any acquisition by any employee benefit plan sponsored or maintained by the Company, (III) any acquisition of Outstanding Company Voting Securities by investment entities affiliated with General Atlantic
Partners, LLC or any group of which such investment entities affiliated with General Atlantic Partners, LLC are a member, or (IV) in respect of an Option held by a particular Participant, any acquisition by the Participant or any group of persons
including the Participant (or any entity controlled by the Participant or any group of persons including the Participant); 
 (2) the
dissolution or liquidation of the Company; or 

  

					
	Altair Engineering Inc. – ISO Agreement	  		  	

 (3) the sale, transfer or other disposition of all or substantially all of the assets of the
Company. 
 (f) “Common Stock” means the Class A common capital stock of the Company. 

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

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

(i) “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. 

(j) “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. 

(k) “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 in good faith and based on uniform principles consistently applied. Such determination shall be conclusive and binding on all persons. 

(l) “Incentive Stock Option” or “Option” means a right granted under the Plan and this Agreement to purchase Share(s) at a
specified Exercise Price within a specified Exercise Period, which right is intended to meet the requirements of Section 422 of the Internal Revenue Code of 1986, or any successor provision thereto. 

(m) “Non-qualified Stock Option” shall mean an Option granted under the Plan and this Agreement which does not qualify as an
Incentive Stock Option. 
 (n) “Participant” shall have the meaning set forth in the second paragraph of this Agreement. 

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

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

(q) “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. 
 (r) “Securities Act” shall mean the Securities Act of 1933, as amended. 

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

(t) “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 

  

					
	Altair Engineering Inc. – ISO Agreement	  	2	  	

 
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. 
 (u) “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. 

(v) “Vest”, “Vesting” or “Vested” shall mean the event or point in time at which an Option becomes exercisable
for the first time pursuant to the terms of this Agreement. 
 (w) “Vested Options” shall mean the Options as to which Participant
has become one hundred (100%) percent vested pursuant to the provisions of Section 2(d) of this Agreement. 
 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 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 after the date on which the Option Vests, as provided in
Subsection (d) below, and only on or before the date on which the Option expires, as provided in Subsection (e) below. 
 (d)
Vesting of Options. A Participant may exercise an Option to purchase Shares only on or after the date the Option has Vested with respect to such Shares. 

(i) Subject to the exceptions set forth below, in the event that a Participant experiences a Termination of Employment for any reason, or for
no reason, whether voluntarily or involuntarily, prior to the date which is three (3) years from and after the Award Date, Participant shall not have any Vested rights in the Options. 

(ii) Participant shall immediately become 100% Vested in the Options upon the occurrence of any of the following: 

(A) the death or Disability of the Participant; 

  

					
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 (B) the Participant has not experienced a Termination of Employment prior to the date which is
two (2) years from and after the Award Date; or 
 (C) the sale of all or substantially all of the assets or common capital stock of
the Company. 
 (iii) Upon the earlier to occur of (A) the expiration of the Exercise Period and (B) the termination of the Option
pursuant to the provisions of Paragraph (e) hereof, any and all Options which are not Vested pursuant to the provisions of this Paragraph (d) shall forthwith be forfeited and surrendered to the Company without consideration, irrespective
of the then current fair market value of any such Options. 
 (e) Term and Lapse of Options. An Option shall terminate immediately
upon the first to occur of the following events: 
 (i) The tenth anniversary of the date that an Incentive Stock Option was granted;
provided, however, that in the case of an Incentive Stock Option granted to a Participant owning, actually or constructively under Section 424(d) of the Code, more than 10% of the total combined voting power of all classes of stock of the
Company (a “10% Stockholder”), such Option, by its terms, shall be exercisable only within five years from the Award Date. 
 (ii)
The date determined under Section 2(f) for a Participant who ceases to be an Employee by reason of the Participant’s death or total and permanent disability, within the meaning of Section 22(e)(3) of the Code unless the Board at its
discretion extends such date before the applicable expiration date (provided, that upon any such extension, in the event that a Participant fails to exercise any Incentive Stock Option on or before the date which is twelve months after the date the
Participant ceases to be an Employee, such Incentive Stock Option shall thereupon become a Non-qualified Stock Option); 
 (iii) The date
determined under Section 2(g) for a Participant who ceases to be an Employee for any reason, other than by reason of death or total and permanent disability, unless the Board at its discretion extends such date before the applicable expiration
date (provided, that upon any such extension, in the event that a Participant fails to exercise any Incentive Stock Option on or before the date which is three months after the date the Participant ceases to be an Employee, such Incentive Stock
Option shall thereupon become a Non-qualified Stock Option); or 
 (iv) The expiration of the Exercise Period. 

(f) Death or Disability of Participant. In the event that Participant experiences a Termination of Employment by reason of the
Participant’s death or total and permanent disability (within the meaning of Section 22(e)(3)of the Code), any Option granted to the Participant may be exercised, to the extent it was Vested on the effective date of Participant’s
Termination of Employment, at any time within 12 months after the Participant’s death (but not beyond the otherwise applicable term of the Option) by the Participant’s conservator or legal representative, by the executors or administrators
of the Participant’s estate or by any person who has acquired the Option directly from the Participant by will or the laws of descent and distribution. 

(g) Termination Other than by Death or Disability. 

(i) If Participant experiences a Termination of Employment for any reason other than death or total and permanent disability (as defined in
Section 2(f)), any unexercised Option (whether Vested or not) shall expire at 12:00 p.m. on the 90th day following the effective date of the Participant’s Termination of Employment with the Company. In addition, the Board may, in its sole
and absolute discretion, Vest any non-Vested Options within 30 days following such Termination of Employment. 
 (ii) For purposes of this
Section 2(g), the employment relationship shall be treated as continuing intact while the Participant is an active employee of the Company or is on military leave, sick leave or other bona fide leave of absence, as determined by the Board in
its discretion. The preceding sentence notwithstanding, in the case of an Incentive Stock Option, employment shall be deemed to 

  

					
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terminate on the date the Participant ceases active employment with the Company unless the Participant’s reemployment rights are guaranteed by statute or contract. 

(h) 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 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 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) In the event that no public market for the Company’s stock exists, by the issuance of Shares equal in value to the excess of
(A) the then Fair Market Value of the Shares being purchased over (B) the Purchase Price for the Shares being purchased. 
 (G) 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. 
 (i) 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 

  

					
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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 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”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY FOREIGN JURISDICTION. THEY MAY NOT BE TRANSFERRED, SOLD OR OFFERED FOR SALE EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
 (j) Exercise of Unvested Options. 

(i) Purpose of Section. This Section is intended to apply for the benefit of Participant prior to the time Shares held by the
Participant are freely transferable under applicable federal and state securities laws without the Participant holding the Shares for a minimum period of time (e.g., the holding period requirement of Rule 144 adopted by the Securities and Exchange
Commission under the Securities Act). More specifically, if the Participant holds an unvested Option, he or she may commence this holding period for the Shares subject to the Option by exercising the unvested Option and receiving Shares of
restricted stock which will Vest on the same date as the Option would have Vested. In this way, the Participant is able to begin the holding period for the Shares prior to the date the Option would have Vested. 

(ii) Exercise of Unvested Options and Issuance of Restricted Stock. The Board, at its discretion, may grant Participant the right to
exercise any Option prior to the Vesting of such Option, provided that the Shares issued upon such exercise shall remain subject to Vesting, as restricted stock, at the same rate as under the Option so exercised and (A) Shares issued pursuant
to an Option which is Vested or which thereafter become Vested shall be subject to the terms and conditions of the Company’s Stock Restriction and Repurchase Agreement – 2001 Incentive and Non-Qualified Stock Option Plan (Standard) (the
“Stock Restriction and Repurchase Agreement”) and (B) Shares issued pursuant to an Option which is not Vested on or before the applicable date described in Section 2 for determining the forfeiture or lapsing of the Option
pursuant to which such Shares were issued pursuant to this Section, shall be forfeited at the Exercise Price paid by the Participant to the Company to acquire such Shares. 

3. Limitations on Shares. 
 (a)
Shares Subject to Stock Restriction and Repurchase Agreement. All Shares issued hereunder upon the exercise of an Option shall be subject to the terms and conditions of the Company’s Stock Restriction and Repurchase Agreement and the
Company shall place legends on stock certificates representing that the Shares are subject to such Stock Restriction and Repurchase Agreement. 

(b) Limitations on Incentive Stock Options. It is the intent of the Board that all options granted hereunder qualify as of the Award
Date as Incentive Stock Options. Nevertheless, the aggregate Fair Market Value (determined as of the date of grant) of Shares subject to grant(s) of Incentive Stock Options which will become Vested by Participant during any calendar year (under the
Plan or under any other incentive stock option plan of the Company) shall not exceed $100,000. If the Fair Market Value of the Shares described in the preceding sentence exceeds $100,000, the Options for the first $100,000 worth

  

					
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of Shares to become Vested shall be Incentive Stock Options and the Options for the amount in excess of $100,000 that become Vested shall be Non-qualified Stock Options. 

(c) Premature Disposition of Shares. The Board may require Participant to give the Company prompt notice of any disposition of Shares
acquired by exercise of an Incentive Stock Option if such disposition occurs within 2 years from the Award Date of such Option or 1 year from the date of transfer of such Shares to Participant. Such notice shall specify the date of such disposition
or other transfer and the amount realized (whether in cash, other property, assumption of indebtedness or other consideration) by Participant in such transaction. These requirements to give prompt notice of disposition may be referred to in legends
contained on the certificates evidencing such Shares. 
 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, 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, 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, induce or attempt to persuade any employee, agent, supplier or customer of the
Company to terminate any similar employment, agency, supplier or customer 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 

  

					
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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) Institute proceedings in any court of competent jurisdiction against the Participant, or any other person, organization or entity acting
with him, to enjoin and restrain him or her and/or them from a threatened or further and continuing breach of the covenants and restrictions set forth herein. Participant hereby expressly consents that an order, either temporary or permanent, may be
entered in any suit, in equity or law, brought for the purposes of enjoining Participant, or any other person, organization or entity acting with him or her, from violating or threatening to violate the covenants and restrictions set forth herein.
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 such paragraphs (a) and (b), 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 modified to the extent necessary to make it valid, legal or enforceable by such court, agency or tribunal. The
covenants contained in such paragraphs (a) and (b) shall survive termination of this Agreement and the Participant’s Termination of Employment for any reason; 

(ii) Require the Participant to account for and pay over to the Company, as liquidated damages, and not as a penalty, one hundred
(100%) percent of any and all salaries, fees, commissions, income, profits, or other remuneration which he or she receives or becomes entitled to receive, from or by reason of the conducting of any activity in violation of the covenants and
restrictions set forth in this Section 5 during the period that the violation of such covenants and restrictions continues; 
 (iii)
Withhold any and all payments due hereunder or under the Stock Restriction and Repurchase Agreement while the breach or violation continues; and 

(iv) 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. 

6. Withholding of Taxes. Whenever Shares are to be issued under the Plan or this Agreement, the Company may 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. 

7. Rights as an Employee. Neither the Plan nor this Agreement shall 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, 

  

					
	Altair Engineering Inc. – ISO Agreement	  	8	  	

 
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. 

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) Recapitalizations.
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) Effect of Change in Control. In the event of a Change in Control: 

(i) The Board may, in its discretion, provide that notwithstanding any vesting provisions set forth herein, that the Option shall become
immediately Vested with respect to 100 percent of the Shares subject to the Option. 
 (ii) In addition, the Board may, in its discretion and
upon at least 10 days’ advance notice to the Participant, cancel any outstanding Options and pay to the holders thereof, in cash or stock, or any combination thereof, the value of such Options based upon the price per Share received or to be
received by other shareholders of the Company as part of the Change in Control transaction. 

  

					
	Altair Engineering Inc. – ISO Agreement	  	9	  	

 (iii) The obligations of the Company under the Plan and this Agreement shall be binding upon any
successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company. The
Company agrees that it will make appropriate provisions for the preservation of Participant’s rights under the Plan, this Agreement and in any agreement or plan which it may enter into or adopt to effect any such merger, consolidation,
reorganization or transfer of assets. 
 (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 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. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  

					
	Altair Engineering Inc. – ISO Agreement	  	10	  	

 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. 
  

							
		 		 	ALTAIR ENGINEERING INC.
		 		 	A Michigan Corporation
				
	Dated: 	 		 	By:	 	  

		 		 		 	Tom M. Perring
		 		 		 	Its: Chief Operating 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. – ISO Agreement	  	11EX-10.4

 Exhibit 10.4 

STOCK RESTRICTION AND REPURCHASE AGREEMENT - 

2001 INCENTIVE AND NON-QUALIFIED STOCK OPTION PLAN 

ARTICLE I 

DEFINITIONS; SHARES SUBJECT TO AGREEMENT 

Section 1.1 Definitions. As used in this Agreement, the following words and
phrases shall have the meanings set forth below, unless the context clearly indicates that a different meaning is intended: 
 (a)
“Code” shall mean the United States Internal Revenue Code of 1986, as amended. 
 (b) “Incentive Stock Option Agreement”
means an Incentive Stock Option Agreement entered into between the Company and Participant pursuant to the terms of the Plan. 
 (c)
“Legal Representative” shall mean, with reference to any Person, a personal representative, executor, administrator or conservator of the Person’s estate, or a legal guardian or attorney-in-fact of the Person, or a successor trustee of such Person under his or her revocable living trust, or anyone else legally acting as the representative or successor in interest of the Person, as
the context of any provision may require. 
 (d) “Non-qualified Stock Option Agreement”
means a Non-qualified Stock Option Agreement entered into between the Company and Participant pursuant to the terms of the Plan. 

(e) “Person” shall mean any natural individual or legal entity, or any association of natural individuals or legal entities. 

(f) “Plan” shall mean the Altair Engineering Inc. 2001 Incentive and Non-qualified Stock
Option Plan. 
 (g) “Share” or “Shares” shall mean any and all shares of the common capital stock of the Company which
are issued to a Participant pursuant to the Plan and an Incentive Stock Option Agreement(s) and/or a Non-qualified Stock Option Agreement(s). 

(h) “Transfer” shall mean any assignment, transfer, sale, exchange, conveyance, disposition, pledge, hypothecation, attachment, gift,
testamentary bequest or other disposition or encumbrance of any nature or description whatsoever, whether occurring voluntarily or involuntarily, directly or indirectly, or by operation or process of law. 

(i) “Triggering Event” shall mean an event in which, or circumstances under which, (1) Participant (or his Legal Representative)
first becomes obligated to sell or offer for sale his Shares in the Company pursuant to this Agreement or (2) the Company first has the option to purchase the Shares of the Participant in the Company pursuant to this Agreement. 

(j) “Vested Shares” shall mean the Shares as to which Participant has become one hundred (100%) percent vested pursuant to the
provisions of Section 2.1 of this Agreement. 
 Section 1.2 Non-Registration. Regardless of whether the Shares have been registered under the Securities Act of 1933, as amended (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. 

Section 1.3 Restrictive Legends. 

(a) The certificates representing the Shares subject to the terms of this Agreement shall bear substantially the following legend: 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  		  	

 THE TRANSFER, ASSIGNMENT, SALE, ENCUMBRANCE, PLEDGE OR OTHER DISPOSITION OF THE SHARES OF STOCK
REPRESENTED BY THIS CERTIFICATE IS RESTRICTED UNDER THE TERMS OF A STOCK RESTRICTION AND REPURCHASE AGREEMENT—2001 INCENTIVE AND NON-QUALIFIED STOCK OPTION PLAN, A COPY OF WHICH IS ON FILE AT THE OFFICE
OF THE COMPANY. BY ACCEPTING THIS CERTIFICATE, ANY TRANSFEREE AGREES TO BE BOUND BY THE TERMS OF SUCH AGREEMENT. THE COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TRANSFER HAS BEEN MADE IN
COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT. 
 (b) 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”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY FOREIGN JURISDICTION. THEY MAY NOT BE TRANSFERRED, SOLD OR OFFERED FOR SALE EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
 Section 1.4
Endorsement. Participant agrees to tender all stock certificates pertaining to Shares subject to this Agreement held by him to the secretary of the Company for endorsement in the manner set forth in Section 1.3 of this
Article. 
 ARTICLE II 

VESTING; TRANSFER AND PURCHASE OF SHARES 

Section 2.1 Vesting of Shares. Participants shall be 100% vested in all
Shares at all times hereunder. Notwithstanding the foregoing to the contrary, in the event that a Participant acquires Shares by exercising a non-Vested Option pursuant to the terms of an Incentive Stock
Option Agreement and/or a Non-qualified Stock Option Agreement, such Shares shall remain subject to the vesting provisions contained in said Incentive Stock Option Agreement and/or Non-qualified Stock Option Agreement, as applicable. 

Section 2.2 Lifetime Transfers. While this Agreement is in force,
Participant shall not Transfer all or any portion of his Shares, except under the terms of this Agreement. In the event that there is any proposed, attempted or actual Transfer of any or all of Participant’s Vested Shares, then prior to
accomplishment of such Transfer, the Company shall have the right to purchase such Vested Shares in accordance with the terms of this Section. 

(a) Participant shall furnish the Company with written notice of the proposed Transfer, which notice shall identify the proposed transferee and
fully describe the purchase price and other terms of the offer of sale from such proposed transferee. 
 (1) The Company shall have the
right and option, exercisable by written notice furnished to Participant within sixty (60) days from the date as of which the Company has been furnished with written notice of the proposed Transfer, to acquire all but not less than all of
Participant’s Vested Shares upon the terms set forth in Article III hereof at the purchase price determined pursuant to Article IV hereof. 

(2) If the Company timely exercises its right of first refusal to purchase all of Participant’s Vested Shares as provided above, the
purchase and sale of Participant’s Vested Shares shall be completed at a closing to be held within one hundred twenty (120) days from the date as of which the Company has been furnished with the written notice of the proposed Transfer.

 (3) If the Company does not exercise its right of first refusal to purchase all of Participant’s Vested Shares as provided above,
then Participant may complete the Transfer for the purchase price and upon such other terms as are set forth in the Participant’s notice of the proposed Transfer; subject 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  	2	  	

 
however to rights of first refusal on the part of the Company to purchase no less than all of the Participant’s Vested Shares. 

(A) The purchase price and terms of any such sale to the Company shall be at the same price and upon the same terms (including timing of a
closing) as the Participant deems acceptable in the offer of sale from the third person. 
 (B) The right of first refusal on the part of
the Company shall be exercisable for sixty (60) days from the date as of which the Company has been furnished with written notice of the proposed Transfer. 

(C) If a sale of Participant’s Vested Shares is not completed within forty five (45) days after the expiration of the Company’s
option to purchase and rights of first refusal provided for herein, then the Transfer may not be consummated without Participant again complying with the terms of this Section 2.2(a) and the provisions and restrictions of this Agreement shall
continue to apply to such Shares. 
 (D) If a sale of Participant’s Vested Shares to the third person is completed, then the provisions
and restrictions of this Agreement shall continue to apply to such Shares in the hands of the third person. 
 (E) If any Transfer subject
to this Agreement involves a transaction other than a bona fide sale for a readily ascertainable sale price under fixed terms and conditions, then the rights of first refusal provided herein shall be administered and effectuated through the use of a
price, terms and conditions which are fair and just under the circumstances, as reasonably determined by the Company. 
 (b) The rights and
options provided in Subsection (a) above shall not apply with respect to any Transfer to a revocable living trust, to the extent provided in Article V hereof. 

(c) The rights and options provided in Subsection (a) above shall terminate and be of no further force or effect upon the earlier to occur
of (i) the date on which the Company consummates the sale of all or substantially all of the assets of the Company and/or the Shareholders consummate the sale of all or substantially all of the common capital stock of the Company, or
(ii) the date on which the common capital stock of the Company is first traded on any United States securities exchange or on any formal over-the-counter quotation
system in general use in the United States. 
 Section 2.3 Termination of Employment
other than for Cause. In the event that the employment relationship of Participant with the Company is or was terminated for any reason, whether voluntarily or involuntarily, other than by the Company for “Cause”: 

(a) The Company shall have the option to purchase all, but not less than all, of the Participant’s Vested Shares upon the terms set forth
in Article III hereof at the purchase price determined pursuant to Article IV hereof. The Company must exercise this option, if at all, in writing within ninety (90) days after the effective date of Participant’s termination of employment
with the Company. 
 (b) The purchase and sale of the Participant’s Vested Shares shall be completed at a closing to be held within
ninety (90) days from the effective date of Participant’s termination of employment with the Company. 
 (c) In the event that the
Company does not timely exercise the right and option provided in Subsection (a) above, the Participant or his Legal Representative shall continue to own the Vested Shares and the provisions and restrictions of this Agreement shall continue to
apply to such Vested Shares. 
 (d) The rights and obligations provided in this Section 2.3 shall terminate and be of no further force
or effect upon the earlier to occur of (i) the date on which the Company consummates the sale of all or substantially all of the assets of the Company and/or the Shareholders consummate the sale of all or substantially all of the common capital
stock of the Company, or (ii) the date on which the common capital stock of the Company is first traded on any United States securities exchange or on any formal
over-the-counter quotation system in general use in the United States. 

Section 2.4 Termination of Employment for Cause. In the event that the employment
relationship of Participant with the Company is or was terminated by the Company for “Cause”: 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  	3	  	

 (a) The Company shall purchase from the Participant and the Participant (or his Legal
Representative) shall sell and transfer to the Company all Vested Shares owned by Participant upon the terms set forth in Article III hereof at the purchase price determined pursuant to Article IV hereof. 

(b) The purchase and sale of Participant’s Vested Shares shall be completed at a closing to be held within ninety (90) days from the
effective date of Participant’s termination of employment with the Company. 
 (c) For purposes of this Article II, 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. 
 Section 2.5 Violation of Restrictive Covenants. In the event of
any violation by Participant of the covenants and restrictions contained in Article VI hereof, in addition to, and not in lieu of, any and all other legal and equitable rights and remedies available to the Company: 

(a) The Company shall purchase from the Participant and the Participant (or his Legal Representative) shall sell and transfer to the Company
all Vested Shares owned by Participant upon the terms set forth in Article III hereof at the purchase price determined pursuant to Article IV hereof. 

(b) The purchase and sale of Participant’s Vested Shares shall be completed at a closing to be held within ninety (90) days from and
after the date upon which the Company provides written notice to Participant of the violation by Participant of the covenants and restrictions contained in Article VI hereof. 

Section 2.6 Purchase of Non-Vested
Shares. Upon the occurrence of a Triggering Event, the Company shall purchase from the Participant and the Participant (or his Legal Representative) shall sell and transfer to the Company all
non-Vested Shares owned by Participant upon the terms set forth in Article III hereof at the purchase price determined pursuant to Article IV hereof. The purchase and sale of Participant’s non-Vested Shares shall be completed at the closing of the purchase and sale of the Participant’s Vested Shares, or in default thereof, within ninety (90) days of the occurrence of the Triggering Event.

 Section 2.7 Employment Relationship with the Company. Notwithstanding the
provisions of this Agreement, Participant understands that his employment relationship with the Company is controlled by such manuals, procedures or directives as are promulgated from time to time by the Company. Nothing in this Agreement shall be
interpreted to change the terms of Participant’s employment with the Company to anything other than an “at-will” employment relationship and Participant hereby acknowledges and reaffirms that
his employment with the Company may be terminated by the Company at the will of the Company, with or without cause. 
 ARTICLE III

 PAYMENT TERMS 

Section 3.1 Terms of Payment. The purchase price to be paid by the Company to
Participant for all Vested and/or non-Vested Shares purchased by the Company pursuant to the terms of this Agreement shall be paid in full in immediately available United States funds at the closing of the
sale of the Vested and/or non-Vested Shares hereunder; provided, however, that there shall be credited against such purchase price (and against such down payment) the amount of any indebtedness then due and
payable to the Company by Participant. 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  	4	  	

 ARTICLE IV 

PURCHASE PRICE 

Section 4.1 Determination of Purchase Price—Lifetime Sale/Termination Other Than For
Cause. In the event that the Triggering Event under which the purchase price of Participant’s Vested Shares is to be determined under this Article is a lifetime Transfer pursuant to Section 2.2 hereof or the termination of
the Participant’s employment with the Company for any reason, whether voluntarily or involuntarily, other than by the Company for “Cause”, such purchase price shall be equal to the Fair Market Value of such Vested Shares determined as
of December 31st of the year preceding the year in which such Triggering Event occurs (the “Valuation Date”). 
 (a) For purposes
of this Agreement, Fair Market Value shall mean: 
 (i) The fair market value per Share determined by the Board of Directors of the Company
as of the applicable Valuation Date in accordance with the terms of the Plan or any other stock option plan subsequently adopted by the Company; or 

(ii) If Subparagraph (i) does not apply, the fair market value per Share shall be determined by the Board of Directors of the Company as
of such Valuation Date. Such determination shall be made in good faith and shall be consistent with the principles applied with respect to any such determinations of the fair market value of the Shares previously thereto made by the Board of
Directors of the Company in accordance with the terms of the Plan, or any other stock option plan subsequently adopted by the Company. 
 (b)
All determinations of Fair Market Value by the Board of Directors pursuant to the terms of this Agreement shall be conclusive and binding on all persons. 

Section 4.2 Determination of Purchase Price—Termination for Cause/Violation of
Restrictive Covenants. In the event that the Triggering Event under which the purchase price of Participant’s Vested Shares is to be determined under this Article is the termination of the Participant’s employment by the
Company for “Cause” and/or a violation by Participant of the covenants and restrictions contained in Article VI hereof or where the purchase price of any non-Vested Shares is to be determined under
this Article, such purchase price shall be equal to the aggregate purchase price paid by Participant for such Shares pursuant to the applicable Incentive Stock Option Agreement(s) and/or Non-qualified Stock
Option Agreement(s). 
 Section 4.3 Company’s Performance. In any
situation in which the Company is or may be unable to fulfill any obligation to redeem or pay for any Shares due to the prohibitive provisions of any statute, or due to limitations contained in its articles of incorporation or bylaws, the Company
shall use its best efforts to take such action as may be reasonably necessary to enable the Company, if possible, to fulfill such redemption or payment obligation. The actions to be taken shall include, but not be limited to, the reappraisal and
revaluation of the total assets, properties and rights of the Company (including accounts receivable and goodwill, if applicable) at their then current fair market value. 

ARTICLE V 

GENERAL PROVISIONS 

Section 5.1 Assignments to Revocable Living Trusts. Notwithstanding any term or
provision of this Agreement to the contrary, the assignment of Shares, or any portion thereof, to a revocable living trust of which Participant is (during his lifetime) grantor, trustee or co-trustee and
primary beneficiary, shall be subject to the following conditions: 
 (a) Participant must continue to remain liable for all of his
obligations hereunder notwithstanding the assignment to such trust; 
 (b) All provisions of this Agreement which relate to Participant in
his status as an individual shall apply to the Shares so assigned based upon the status of Participant, notwithstanding the assignment to such trust; 

(c) The trust shall be completely bound by the terms and provisions of this Agreement, as a shareholder; and 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  	5	  	

 (d) The occurrence of any Triggering Event with respect to such Shares shall be determined
(1) by reference to Participant in his capacity as an individual (including but not limited to his death or disability), as well as (2) by reference to events affecting the trust alone (including but not limited to any Transfer of the
Shares by such trust). 
 Section 5.2 Encumbrance. Participant shall not
encumber his Shares in any way, and such Shares shall at all times be deemed security for all indebtedness due to the Company or the Company by Participant; such security interest arising as of the date such debt was incurred, and notice thereof is
deemed given by the legend referred to in Article I of this Agreement. If no other provision has been made to adjust the applicable purchase price for Participant’s Shares upon the occurrence of a Triggering Event, there shall be credited
against such purchase price the amount of any indebtedness then due and payable to the Company by Participant. 
 ARTICLE VI 

RESTRICTIVE COVENANTS 

Section 6.1 Covenant Not to Compete/Solicit. Participant will not directly
or indirectly (whether as a principal, agent, independent contractor, employer, employee, investor, partner, shareholder, director or otherwise): 

(a) During the Participant’s employment with the Company, 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; 

(b) During the Participant’s employment with the Company, 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 
 (c) During the Participant’s employment with the Company,
induce or attempt to persuade any employee, agent, supplier or customer of the Company to terminate any similar employment, agency, supplier or customer 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. 
 Section 6.2 Covenant Regarding Confidential Information. 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. 

  

					
	 Altair Engineering Inc. - 2001 ISO & NSO Plan

Stock Restriction & Repurchase Agreement (Standard)
	  	6	  	

 Section 6.3 Rights and Remedies upon
Breach. Participant expressly agrees that in the event of any violation by Participant of the covenants and restrictions contained in this Article VI, 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: 
 (a) Institute proceedings in any court of competent jurisdiction against the Participant, or any other person,
organization or entity acting with him, to enjoin and restrain him or her and/or them from a threatened or further and continuing breach of the covenants and restrictions set forth herein. Participant hereby expressly consents that an order, either
temporary or permanent, may be entered in any suit, in equity or law, brought for the purposes of enjoining Participant, or any other person, organization or entity acting with him or her, from violating or threatening to violate the covenants and
restrictions set forth herein. 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 this Article, 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 modified to the extent necessary to make it valid, legal or enforceable by such court, agency or
tribunal. The covenants contained in this Article shall survive the termination of this Agreement and the termination of Participant’s employment for any reason; 

(b) Require the Participant to account for and pay over to the Company, any amounts paid to Participant hereunder which are in excess of the
aggregate purchase price paid by Participant to the Company for the Participant’s Shares pursuant to the applicable Incentive Stock Option Agreement(s) and/or Non-qualified Stock Option Agreement(s); 

(c) Withhold any and all payments due hereunder which are in excess of the aggregate purchase price paid by Participant to the Company for the
Participant’s Shares pursuant to the applicable Incentive Stock Option Agreement(s) and/or Non-qualified Stock Option Agreement(s); and 

(d) Declare any and all rights of the Participant under any Option Agreement to be immediately terminated and of no further force nor
effect. 
 Section 6.4 Covenants & Restrictions 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. 
 ARTICLE VII 

MISCELLANEOUS PROVISIONS 

Section 7.1 Agreement Binding. This Agreement shall inure to the benefit of, and
be binding upon, the parties hereto and their respective heirs, administrators, executors, personal representatives, successor trustees, successors and assigns. 

Section 7.2 Waiver of Breach. A waiver by any party of a breach of any provision
of this Agreement by any other party shall not operate or be construed (a) as continuing, or (b) as a bar to, or a waiver or release of, any subsequent right, remedy, or recourse as to a subsequent event, or (c) as a waiver of any
subsequent breach by that other party. 
 Section 7.3 Course of Conduct. No
course of conduct between the parties hereto, nor any delay in exercising any rights or remedies hereunder or under any communication, report, notice or other document or instrument referred to herein, shall operate as a waiver of any of the rights
or remedies of the parties hereto. 
 Section 7.4 Further Assurances. The
parties hereto shall take such further steps and execute such further documents and instruments as may be necessary or appropriate to carry this Agreement into force and effect or to effectuate the intention hereof. 

Section 7.5 Entire Agreement. This Agreement contains all the covenants,
promises, agreements, conditions, representations and understandings between the parties hereto, and supersedes any prior agreements between the parties hereto, with respect to the subject matter hereof. There are no covenants, promises, agreements,
conditions, representations or understandings, either oral or written, between the parties 

  

					
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hereto, other than those set forth herein or provided for herein, with respect to the subject matter hereof. Participant hereby acknowledges that he is not relying on any statement,
representation, or agreement of the Company as an inducement to enter into this Agreement, except as specifically provided herein and that neither the Company, nor anyone acting on behalf of the Company has made any representation, agreement,
guaranty or warranty of any kind whatsoever, express or implied, written or oral, concerning or relating to the subject matter hereof, except as specifically set forth herein. 

Section 7.6 Amendment. This Agreement shall not be changed orally, but only by an
agreement in writing, signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. 

Section 7.7 Governing Law. This Agreement shall be governed by and interpreted
under the laws of the State of Michigan, irrespective of where this Agreement is made or to be performed, and irrespective of any applicable principles of conflict of laws. 

Section 7.8 Venue. The venue of any dispute, controversy, litigation or proceeding (formal or
informal) arising out of or pertaining to 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. 

Section 7.9 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 

Section 7.10 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. 

Section 7.11 Notices, Statements, Etc. All notices, statements or other
communications which are required or contemplated by this Agreement shall be in writing (unless otherwise expressly provided herein) and shall be either personally served at or mailed to the last known mailing address of the person entitled thereto.
In addition, a copy of each such notice, statement or communication intended for a party shall be furnished to such single additional addressee for that party as may be specified herein or specified in a like notice. All such notices, statements and
other communications (or copies thereof) shall be deemed furnished to the person entitled thereto (a) on the date of service, if personally served at the last known mailing address of such person, or (b) on the date on which mailed, if
mailed to such person in accordance with the terms of this Section. For purposes hereof, an item shall be considered mailed if the sender can establish that it was sent by means including, but not limited to, the following: (i) by United States
Postal Service, postage prepaid; (ii) by air courier service (Federal Express or the like); or (iii) by telefax or other means of electronic communication. 

Section 7.12 Severability. Should any covenant, condition, term or provision of
this Agreement be deemed to be illegal, or if the application thereof to any person or in any circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such covenant, condition, term or
provision to persons or in circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby; and each covenant, condition, term and provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law. 
 Section 7.13 Captions. Captions used herein are
inserted for reference purposes only and shall not affect the interpretation or construction of this Agreement. 

Section 7.14 Incorporation by Reference. All schedules, exhibits and other
attachments which are affixed to and referred to in this Agreement are incorporated herein and made a part hereof by this reference. 

Section 7.15 Survival. The parties acknowledge and agree that this Agreement
contains substantial terms and provisions which are intended to govern the rights, duties and obligations of the parties following the closing on any purchase and sale of any Shares. Accordingly, this Agreement shall survive and shall not be

  

					
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deemed merged into, the execution or delivery of any documents, property, or payments pursuant to the terms hereof; and this Agreement shall remain in full force and effect following the closing
on any such purchase and sale. 
 Section 7.16 Construction. Each party has
participated fully in the negotiation and preparation of this Agreement with full benefit or availability of counsel. Accordingly, this Agreement shall not be more strictly construed against either party. 

Section 7.17 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. 

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 Section 7.18 Equitable Relief. The
parties acknowledge that the stock in the Company which is the subject of this Agreement is unique and that the failure of any party to perform or fulfill such party’s obligations hereunder may result in irreparable harm to the other parties.
Accordingly, the parties agree that specific performance of the terms hereof and/or other equitable relief may be obtained through a court of competent jurisdiction. 
  

									
		 		 		 		 	ALTAIR ENGINEERING INC.
		 		 		 		 	A Michigan Corporation
					
	Dated:	 	  
	 		 	By:	 	  

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

									
	Dated:	 	  
	 		 	  

		 		 		 	PARTICIPANT

  

					
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