Document:

EXHIBIT 4.3

 

FORM OF GLOBAL
SECURITY

 

THIS SUBORDINATED
DEBT SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF. THIS SUBORDINATED DEBT SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SUBORDINATED DEBT SECURITY REGISTERED,
AND NO TRANSFER OF THIS SUBORDINATED DEBT SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY
OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

THE RIGHTS OF THE
HOLDER OF THIS SUBORDINATED DEBT SECURITY ARE, TO THE EXTENT AND IN THE MANNER SET FORTH IN SECTION 12.01 OF THE INDENTURE, SUBORDINATED
TO THE CLAIMS OF OTHER CREDITORS OF THE COMPANY, AND THIS SUBORDINATED NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 12.01,
AND THE HOLDER OF THIS SUBORDINATED NOTE, BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE PROVISIONS OF SECTION
12.01 OF THE INDENTURE AND THE TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF SCOTLAND.

 

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ISIN
No. [•]

Common
Code: [•]

 

LLOYDS BANKING GROUP
PLC

 

1.985% FIXED RATE
RESET SUBORDINATED DEBT SECURITIES DUE 2031

 

	No. 1	£500,000,000

 

LLOYDS BANKING GROUP PLC (herein called
the “Company”, which term includes any successor person under the Indenture (as defined on the reverse hereof)), for value
received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, or registered assigns, the principal sum of £500,000,000
(five hundred million pounds sterling) on December 15, 2031 or on such earlier date as the principal hereof may become due in accordance
with the terms hereof and to pay interest thereon semi-annually in arrears on June 15 and December 15 of each year, commencing on December
15, 2021, and ending on 15, 2031 (each, a “Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder
in whose name this Subordinated Debt Security is registered at the close of business of the relevant Clearing System on the Clearing
System Business Day immediately preceding the relevant Payment Date, whether or not such day is a Business Day, as defined in the Indenture
(each a “Regular Record Date”). If (i) the Company fails to pay any installment of interest on any Subordinated Debt Security
on or before its Payment Date and such failure continues for 14 days or (ii) the Company fails to pay all or any part of the principal
of any Subordinated Debt Security on any date on which such principal shall otherwise have become due and payable, whether upon redemption
or otherwise, and such failure continues for seven days (each of (i) and (ii), a “Default”), the Trustee may commence a proceeding
for the winding up of the Company or a Qualifying Administration, provided that the Trustee may not, upon the occurrence of a Default,
declare the principal amount of any of the Outstanding Subordinated Debt Securities to be due and payable.

 

Interest
shall accrue on this Subordinated Debt Security from (and including) the date of issuance to (but excluding) December 15, 2026 (the “Reset
Date”) at the rate of 1.985% per annum (the “Initial Interest Rate”) and from (and including) the Reset Date to (but
excluding) Maturity (the “Reset Period”), at a rate per annum calculated by the Calculation Agent on the second London Banking
Day immediately preceding the Reset Date (the “Reset Determination Date”) as being equal to the sum of the Reset Reference
Rate (as defined below) (expressed as a rate per annum) and 1.600% (the “Margin”), such sum being converted to a semi-annual
rate in accordance with market convention (rounded to three decimal places, with 0.0005 rounded down) (the “Reset Rate of Interest”).

 

Interest
on the Subordinated Debt Securities will be calculated on the basis of the number of days in the relevant period, from and including
the date from which interest begins to

 

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accrue to, but
excluding, the date on which it falls due, divided by the actual number of days in the interest period in which the relevant period falls
(including the first such day but excluding the last). If any scheduled Payment Date is not a Business Day, the Company will pay interest
on the next Business Day, but interest on that payment will not accrue during the period from and after the scheduled Payment Date. If
the scheduled Maturity date or date of redemption or repayment is not a Business Day, the Company may pay interest and principal on the
next succeeding Business Day, but interest on that payment will not accrue during the period from and after the scheduled Maturity date
or date of redemption or repayment.

 

Payment
of the principal amount of (and premium, if any) and any interest on, this Subordinated Debt Security will be made in such coin or currency
of the United Kingdom as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made through
one or more Paying Agents appointed under the Indenture to the Holder of this Subordinated Debt Security. If the date for payment of
the principal amount hereof (and premium, if any) or interest thereon is not a Business Day, then (subject as provided in the Indenture)
such payment shall be made on the next succeeding Business Day with the same force and effect as if made on such date for payment and
without any interest or other payment in respect of such delay.

 

Prior
to due presentment of this Subordinated Debt Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Subordinated Debt Security is registered as the owner of such Subordinated Debt
Security for the purpose of receiving payment of principal and interest, if any, on such Subordinated Debt Security and for all other
purposes whatsoever, whether or not such Subordinated Debt Security be overdue, and neither the Company, the Trustee nor any agent of
the Company or the Trustee shall be affected by notice to the contrary.

 

Reference
is hereby made to the further provisions of this Subordinated Debt Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

 

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual or electronic signature,
this Subordinated Debt Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

The
exercise of any U.K. bail-in power (as defined below) by the relevant U.K. resolution authority that may result in (i) the reduction
or cancellation of all, or a portion, of the principal amount of, or interest on, the Subordinated Debt Securities; (ii) the conversion
of all, or a portion, of the principal amount of, or interest on, the Subordinated Debt Securities into shares or other securities or
other obligations of the Company or another person (and the issue to or conferral on the holder of such shares, securities or obligations),
including by means of amendment, modification or variation of the terms of the Subordinated Debt Securities; and/or (iii) the amendment
or alteration of the Maturity of the Subordinated Debt Securities, or

 

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amendment
of the amount of interest due on the Subordinated Debt Securities, or the dates on which interest becomes payable, including by suspending
payment for a temporary period; any U.K. bail-in power may be exercised by means of variation of the terms of the Subordinated Debt Securities
solely to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. With respect to (i), (ii)
and (iii) above, references to principal and interest shall include payments of principal and interest that have become due and payable
(including principal that has become due and payable at Maturity), but which have not been paid, prior to the exercise of any U.K. bail-in
power. Each Holder and each Beneficial owner of the Subordinated Debt Securities further acknowledges and agrees that the rights of the
Holders and/or Beneficial Owners under the Subordinated Debt Securities are subject to, and will be varied, if necessary, solely to give
effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For these purposes,
a “U.K. bail-in power” is any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company and the Group,
including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted in the United
Kingdom within the context of the U.K. resolution regime under the Banking Act 2009 as the same has been or may be amended from time
to time (whether pursuant to the Banking Reform Act 2013, secondary legislation or otherwise), pursuant to which obligations of a bank,
banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary period)
or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised. A reference to the “relevant
U.K. resolution authority” is to any authority with the ability to exercise a U.K. bail-in power).

 

“Reset Reference
Rate” means in respect of the Reset Period, the gross redemption yield (as calculated by the Calculation Agent on the basis set
out by the United Kingdom Debt Management Office in the paper “Formulae for Calculating Gilt Prices from Yields”, page 5,
Section One: Price/Yield Formulae “Conventional Gilts”; Double dated and Undated Gilts with Assumed (or Actual) Redemption
on a Quasi-Coupon Date (published 8 June 1998, as amended or updated from time to time) or if such basis is no longer in customary market
usage at such time, in accordance with generally accepted market practice at such time) on a semi-annual compounding basis (converted
to an annualized yield and rounded up (if necessary) to three decimal places) of the Benchmark Gilt in respect of the Reset Period, with
the price of the Benchmark Gilt for the purpose of determining the gross redemption yield being the arithmetic average rounded (if necessary)
to the nearest 0.001 per cent. (0.0005 per cent. being rounded upwards)) of the bid and offered prices of such Benchmark Gilt quoted
by the Reset Reference Banks at 11:00 a.m. (London time) on the Reset Determination Date on a dealing basis for settlement on the next
following dealing day in London. Such quotations shall be obtained by or

 

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on behalf of LBG and
provided to the Calculation Agent. If at least four quotations are provided, the Reset Reference Rate will be determined by reference
to the rounded arithmetic mean of the quotations provided, eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the lowest). If only two or three quotations are provided, the
Reset Reference Rate will be determined by reference to the rounded arithmetic mean of the quotations provided. If only one quotation
is provided, the Reset Reference Rate will be determined by reference to the rounded quotation provided. If no quotations are provided,
the Reset Reference Rate shall be the Initial Interest Rate less the Margin, where:

 

		(i)	“Benchmark
                                            Gilt” means, in respect of the Reset Period, such United Kingdom government security
                                            customarily used in the pricing of new issues having a term of five years as LBG (on the
                                            advice of an investment bank of international repute) may determine to be appropriate following
                                            any guidance published by the International Capital Market Association at the relevant time;
                                            and

 

		(ii)	“dealing
                                            day” means a day on which the London Stock Exchange plc (or such other stock exchange
                                            on which the Benchmark Gilt is at the relevant time listed) is ordinarily open for the trading
                                            of securities. 

 

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IN
WITNESS WHEREOF, the Company has caused this Subordinated Debt Security to be duly executed.

 

Dated: June 15, 2021

 

	 	LLOYDS BANKING GROUP PLC
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

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CERTIFICATE OF AUTHENTICATION

 

This
is one of the Subordinated Debt Securities of the series designated herein referred to in the within-mentioned Indenture.

 

Dated: June 15, 2021

 

	 	THE
    BANK OF NEW YORK MELLON, 

    as Trustee
	 	 
	 	 
	 	By:	 
	 	 	Authorized
    Signatory
	 	 	 

 

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[REVERSE OF SECURITY]

 

This
security is one of a duly authorized issue of securities of the Company (herein called the “Subordinated Debt Securities”)
issued and to be issued in one or more series under a Subordinated Indenture, dated as of November 4, 2014 (herein called the “Subordinated
Indenture”), between the Company, as issuer, and The Bank of New York Mellon, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Subordinated Indenture), as supplemented by the Eighth Supplemental Indenture, dated
as of June 15, 2021, among the Company, the Trustee and The Bank of New York Mellon SA/NV, Dublin Branch, as Subordinated Debt Security
Registrar (the “Eighth Supplemental Indenture, and, together with the Subordinated Indenture, the “Indenture”) to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of the Subordinated Debt Securities and of the terms upon
which the Subordinated Debt Securities are, and are to be, authenticated and delivered.

 

This
Subordinated Debt Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to £500,000,000.
The Company may, from time to time, without the consent of the Holders of the Subordinated Debt Securities, issue additional Subordinated
Debt Securities of one or more of the series of Subordinated Debt Securities issued under the Subordinated Indenture, having the same
ranking and the same interest rate, Maturity, redemption terms and other terms as the Subordinated Debt Securities, except for the price
to the public, issue date and first Interest Payment Date, provided that such additional Subordinated Debt Securities must be fungible
with the outstanding Subordinated Debt Securities for U.S. federal income tax purposes. Any such additional Subordinated Debt Securities,
together with the Subordinated Debt Securities of the applicable series, will constitute a single series of Subordinated Debt Securities
under the Subordinated Indenture and shall be included in the definition of “Securities” in the Subordinated Indenture where
the context requires.

 

The
Subordinated Debt Securities will constitute our direct, unconditional, unsecured, unguaranteed and subordinated obligations ranking
pari passu without any preference among themselves and ranking junior in right of payment to the claims of any existing and future
unsecured and unsubordinated indebtedness of the Company.

 

The
rights of the Holders of the Subordinated Debt Securities of this series are, to the extent and in the manner set forth in Section 12.01
of the Indenture, subordinated to the claims of all Senior Creditors of the Company, and this series of Subordinated Debt Securities
is issued subject to the provisions of that Section 12.01, and the Holders of this series of Subordinated Debt Securities, by accepting
the same, agree to and shall be bound by such provisions. The provisions of Section 12.01 of the Indenture and the terms of this paragraph
are governed by, and shall be construed in accordance with, the laws of Scotland.

 

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If
an Event of Default occurs with respect to Subordinated Debt Securities of any series, then in every such case the Trustee or the Holder
or Holders of not less than 25% in aggregate principal amount of the Outstanding Subordinated Debt Securities of this series may declare
the principal amount, together with accrued interest (if any), and Additional Amounts (if any), payable on such Subordinated Debt Securities,
of all the Subordinated Debt Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee
if given by the Holder or Holders), and upon any such declaration such amount shall become immediately due and payable.

 

Except
as otherwise provided in Article 5 of the Indenture, the Trustee may in its discretion proceed to protect and enforce its rights and
the rights of the Holders of the Subordinated Debt Securities by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in the Subordinated
Indenture or in aid of the exercise of any power granted herein, or to enforce any other legal or equitable right vested in the Trustee
by the Subordinated Indenture or by law, provided, however, that the Company shall not, as a result of the bringing of such judicial
proceedings, be required to pay any amount representing or measured by reference to the principal of, or any interest on, the Subordinated
Debt Securities prior to any date on which the principal of, or any interest on, the Subordinated Debt Securities would have otherwise
been payable by the Company.

 

If
a Default occurs, the Trustee may commence a proceeding for the winding-up of the Company and/or prove in a winding-up of the Company
or a Qualifying Administration for all due and payable amounts, provided that the Trustee may not, upon the occurrence of a Default,
declare the principal amount of any of the Outstanding Subordinated Debt Securities to be due and payable.

 

Failure
to make any payment in respect of this Subordinated Debt Security shall not be a Default if such payment is withheld or refused and an
Opinion of Counsel is delivered to the Trustee concluding that such sums were not paid in order to comply with any fiscal or other law
or regulation or with the order of any court of competent jurisdiction, provided, however, that the Trustee may by notice to the Company
require the Company to take such action (including but not limited to proceedings for a declaration by a court of competent jurisdiction)
as the Trustee may be advised in an Opinion of Counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable
in the circumstances to resolve such doubt, in which case the Company shall forthwith take and expeditiously proceed with such action
and shall be bound by any final resolution of the doubt resulting therefrom. If any such action results in a determination that the relevant
payment can be made without violating any applicable law, regulation or order then the provisions of the preceding sentence shall cease
to have effect and the payment shall become due and payable on the expiration of 14 days (in the case of payments under clause 5.03(a)
of the Indenture) or seven days (in the case of payments under clause 5.03(b) Indenture) after the Trustee gives written notice to the
Company informing it of such resolution.

 

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Subject
to applicable law, no Holder or Beneficial Owner of the Subordinated Debt Securities may exercise or claim any right of set-off, counterclaim,
combination of accounts, compensation or retention in respect of any amount owed to it by the Company arising under or in connection
with the Subordinated Debt Securities. The Holders and Beneficial Owners of Subordinated Debt Securities, by virtue of its holding of
any Subordinated Debt Securities deemed to have waived any right of set-off, counterclaim, or combination of accounts, compensation and
retention with respect to the Subordinated Debt Securities or this Subordinated Indenture (or between the obligations under or in respect
of any Subordinated Debt Securities and any liability owed by a Holder to the Company) that they might otherwise have against the Company.

 

No
remedy against the Company other than as referred to in Article 5 of the Indenture shall be available to the Trustee (on behalf of the
Holders) or the Holders, whether for the recovery of amounts owing in respect of the Subordinated Debt Securities or under the Indenture
or in respect of any breach by the Company of any of its other obligations under or in respect of the Subordinated Debt Securities or
under the Subordinated Indenture, except that the Trustee and the Holders shall have such rights and powers as they are required to have
under the Trust Indenture Act.

 

Amounts
to be paid on the Subordinated Debt Securities will be made without deduction or withholding for, or on account of, any and all present
and future income, stamp and other taxes, levies, imposts, duties, charges or fees imposed, levied, collected, withheld or assessed by
or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (the “Taxing
Jurisdiction”), unless such deduction or withholding is required by law. If at any time a Taxing Jurisdiction requires the Company
to make such deduction or withholding, the Company will pay additional amounts with respect to the payments of interest on (but not principal
or any other payments), the Subordinated Debt Securities (“Additional Amounts”) that are necessary in order that the net
amounts paid to the Holders of Subordinated Debt Securities of the particular series, after the deduction or withholding, shall equal
the amounts which would have been payable with respect to interest on the Subordinated Debt Securities if the deduction or withholding
had not been required. However, this will not apply to any such amount with respect to interest that would not have been deducted or
withheld but for the fact that:

 

(i)
the Holder or the Beneficial Owner of the Subordinated Debt Security is a domiciliary, national or resident of, or engaging in business
or maintaining a permanent establishment or physically present in, the Taxing Jurisdiction or otherwise having some connection with the
Taxing Jurisdiction other than the holding or ownership of a Subordinated Debt Security, or the collection of any payment of, or in respect
of, principal of, or any interest or other payment on, any Subordinated Debt Security;

 

(ii)
except in the case of winding-up in the United Kingdom, the relevant Subordinated Debt Security is presented (where presentation is required)
for payment in the United Kingdom;

 

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(iii)
the relevant Subordinated Debt Security is presented (where presentation is required) for payment more than 30 days after the date payment
became due or was provided for, whichever is later, except to the extent that the Holder would have been entitled to the Additional Amounts
on presenting the same for payment at the close of that 30 day period;

 

(iv) the
Holder or the Beneficial Owner of the relevant Subordinated Debt Security or the Beneficial Owner of any payment of, or in respect of,
principal of, or any interest or other payment on, the Subordinated Debt Security failed to comply with a request of the Company or its
liquidator or other authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity
of the Holder or the Beneficial Owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in the
case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the Taxing Jurisdiction as
a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee;

 

(v) the
deduction or withholding is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474
of the US Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental agreement between
the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation or other official guidance
enacted or issued in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement; or

 

(vi) any
combination of subclauses (i) through (v) above,

 

nor
shall Additional Amounts be paid with respect to any interest payment on the Subordinated Debt Securities to any Holder who is a fiduciary
or partnership or any person other than the sole Beneficial Owner of such payment to the extent such payment would be required by the
laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary or partner or settlor with respect to
such fiduciary or a member of such partnership or a Beneficial Owner who would not have been entitled to such Additional Amounts with
respect to interest on the Subordinated Debt Securities, had it been the Holder.

 

Whenever
in the Indenture there is mentioned, in any context, the payment of interest on any Subordinated Debt Securities of any series such mention
shall be deemed to include mention of the payment of Additional Amounts provided for in this Section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of this Section and as if express mention
of the payment of Additional Amounts (if applicable) were made in any provisions hereof where such express mention is not made. Upon
request from the Trustee or a paying agent, the Company shall provide information reasonably necessary and readily available in order
to enable to the Trustee or paying agent to determine whether any withholding obligations under FATCA apply. None of the Company, the

 

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Trustee
or a paying agent shall have any liability in connection with the Company’s or Trustee’s or paying agent’s compliance
with any such withholding obligation under applicable law.

 

Subordinated
Debt Securities may not be redeemed except in accordance with provisions of applicable law, applicable provisions of the Applicable Regulations
and except as provided in the Indenture. The Subordinated Debt Securities may not be redeemed in whole or in part at the option of the
Holder thereof.

 

Subject
to the conditions set out below, the Company may, at the option of the Company, on not less than 30 nor more than 60 days’ notice,
redeem the Subordinated Debt Securities, as a whole but not in part, at a redemption price equal to 100% of the principal amount, of
the Subordinated Debt Securities then outstanding, together with any accrued interest to (but excluding) the date fixed for redemption,
if at any time the Company determines that:

 

(i)       as
a result of a change in, or amendment to, the laws or regulations of the United Kingdom, or any political subdivision or authority therein
or thereof, having the power to tax, including any treaty to which the United Kingdom is a party, or any change in any generally published
application or interpretation of such laws, including a decision of any court or tribunal, or any change in the generally published application
or interpretation of such laws by any relevant tax authority or any generally published pronouncement by any tax authority, which change,
amendment or pronouncement (x) (subject to (y)) becomes effective on or after the date of issuance of the Subordinated Debt Securities
(the “Issue Date”), or (y) in the case of a change in law, if such change is enacted by United Kingdom Act of Parliament
or implemented by statutory instrument, on or after the Issue Date (a “Tax Law Change”), the Company has paid or will
or would on the next payment date be required to pay Additional Amounts to any Holder of the Subordinated Debt Securities; and/or

 

(ii)       a
Tax Law Change would:

 

(A)       result
in the Company not being entitled to claim a deduction in respect of any payments (or its corresponding funding costs as recognized in
its financial statements) in respect of the Subordinated Debt Securities in computing its taxation liabilities or the amount or value
of such deduction to the Company would be materially reduced;

 

(B)       prevent
the Subordinated Debt Securities from being treated as loan relationships for United Kingdom tax purposes;

 

(C)       as
a result of the Subordinated Debt Securities being in issue, result in the Company not being able to have losses or deductions set against
the profits or gains, or profits or gains offset by the losses or deductions, of companies with which it is or would otherwise be so
grouped for applicable United Kingdom

 

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tax purposes
(whether under the group relief system current as of the Issue Date or any similar system or systems having like effect as may from time
to time exist);

 

(D)        result
in a United Kingdom tax liability, or the receipt of income or profit which would be subject to United Kingdom tax, in respect of a write-down
of the principal amount of the Subordinated Debt Securities or the conversion of the Subordinated Debt Securities into shares or other
obligations of the Company (including, pursuant to the terms and conditions of the Subordinated Debt Securities or as a result of the
exercise of any regulatory powers under the Banking Act 2009); or

 

(E)       result
in a Subordinated Debt Security or any part thereof being treated as a derivative or an embedded derivative for United Kingdom tax purposes,

 

(each such Tax Law Change, a “Tax
Event”); provided, however, in each case that the Company could not avoid the consequences of the Tax Event by taking
measures reasonably available to it.

 

Prior
to the delivery of any such notice of redemption, the Company shall deliver to the Trustee (i) a written legal opinion of independent
United Kingdom counsel of recognized standing (selected by the Company), in a form satisfactory to the Trustee, to the effect that a
Tax Event has occurred, and (ii) an Officer’s Certificate confirming (1) that all the conditions necessary for redemption have
occurred and that the Company could not avoid the consequences of the Tax Event by taking measures reasonably available to it, and (2)
that the Relevant Regulator is satisfied that the relevant change or event is material and was not reasonably foreseeable by the Company
on the Issue Date. The Trustee is entitled to conclusively rely on and accept such opinion and Officer’s Certificate without any
duty whatsoever of further inquiry and without liability to any person, in which event such opinion and Officer’s Certificate shall
be conclusive and binding on the Trustee, the Holders and the Beneficial Owners.

 

Subject
to the conditions set out below, the Subordinated Debt Securities are redeemable, as a whole but not in part, at the option of the Company,
on not less than 30 calendar days’ nor more than 60 calendar days’ notice, at any time, at a redemption price equal to 100%
of the principal amount, together with accrued but unpaid interest, if any, in respect of Subordinated Debt Securities to, but excluding,
the date fixed for redemption if, immediately prior to the giving of the notice referred to above, a Capital Disqualification Event has
occurred.

 

Prior
to the giving of any notice of redemption, the Company must deliver to the Trustee an Officer’s Certificate stating that (i) a
Capital Disqualification Event has occurred, and (ii) the Company has demonstrated to the satisfaction of the Relevant Regulator that
the relevant change was not reasonably foreseeable by the Company as at the Issue Date. The Trustee shall be entitled to accept such
Officer’s Certificate without any further inquiry and without liability to any

 

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person,
in which event such Officer’s Certificate shall be conclusive and binding on the Trustee and the Holders and Beneficial Owners.

 

Subject
to the conditions set out below, the Company may from time to time purchase Subordinated Debt Securities in the open market or by tender
or by private agreement, in any manner and at any price or at differing prices. Subordinated Debt Securities purchased or otherwise acquired
by the Company may be held, resold or at the Company’s sole discretion, surrendered to the Trustee for cancellation (in which case
all Subordinated Debt Securities so surrendered will forthwith be cancelled in accordance with applicable law and thereafter may not
be re-issued or resold).

 

Subject
to the conditions set out below, the Subordinated Debt Securities are redeemable, as a whole but not in part, at the option of the Company,
on not less than 15 calendar days’ nor more than 30 calendar days’ notice to each Holder of Subordinated Debt Securities
to be redeemed, at any time, at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest,
if any, in respect of such series of Subordinated Debt Securities to, but excluding, the date fixed for redemption, at the option of
the Company on any date in the period commencing on (and including) September 15, 2026 and ending on (and including) the Reset Date.

 

Upon
the occurrence of a Capital Disqualification Event, the Company may, subject to the conditions set out in Section 11.13 of the Eighth
Supplemental Indenture, but without any requirement for the consent or approval of the Holders of the Subordinated Debt Securities, at
any time (whether before, on or following the Reset Date) either substitute all (but not some only) of the Subordinated Debt Securities
for, or vary the terms of the Subordinated Debt Securities so that they remain or, as appropriate, become, Compliant Securities, and
the Trustee shall (subject to the below) agree to such substitution or variation. Upon the expiry of such notice, the Company shall either
vary the terms of or substitute the Subordinated Debt Securities, as the case may be.

 

Prior
to the giving of any notice of substitution or variation, the Company must deliver to the Trustee an Officer’s Certificate stating
that a Capital Disqualification Event, has occurred, setting out the details thereof, and stating that the terms of the relevant Compliant
Securities comply with the definition thereof. The Trustee shall be entitled to accept such Officer’s Certificate without any further
inquiry, in which event such Officer’s Certificate shall be conclusive and binding on the Trustee and the Holders and Beneficial
Owners of the Subordinated Debt Securities.

 

“Compliant
Securities” means securities issued directly by the Company that:

 

(a)
have terms not materially less favorable to an investor than the terms of the Subordinated Debt Securities (as reasonably determined
by the Company in consultation with an investment bank or financial adviser of international standing (which in either case is independent
of

 

    A-7

    	 

    

the
Company)) and provided that the Company has delivered an Officer’s Certificate to such effect (including as to such consultation)
to the Trustee (upon which the Trustee shall be entitled to rely without further inquiry and without liability to any person) prior to
the issue or variation of the relevant securities);

 

(b)
subject to (a) above (1) contain terms which comply with the then current requirements of the Relevant Regulator in relation to Tier
2 Capital; (2) provide for the same interest rate and Payment Dates from time to time applying to the Subordinated Debt Securities; (3)
rank pari passu with the ranking of the Subordinated Debt Securities; (4) preserve any existing rights under the Indenture to any accrued
interest or other amounts which have not been either paid or canceled; and (5) preserve the obligations of the Company as to payments
of principal in respect of the Subordinated Debt Securities, including (without limitation) as to the timing and amount of such payments;

 

(c)
are (1) listed on the New York Stock Exchange or (2) listed on such other stock exchange as is a Recognized Stock Exchange at that time
as selected by the Company; and

 

(d)
where the Subordinated Debt Securities which have been substituted or varied had a published rating (solicited by, or assigned with the
cooperation of, the Company) from a Rating Agency immediately prior to their substitution or variation, each such Rating Agency has ascribed,
or announced its intention to ascribe, an equal or higher published rating to the relevant Compliant Securities.

 

“Recognized
Stock Exchange” means a recognized stock exchange as defined in section 1005 of the U.K. Income Tax Act 2007 as the same may be
amended from time to time and any provision, statute or statutory instrument replacing the same from time to time.

 

The
Subordinated Debt Securities may be redeemed, purchased, substituted or varied by the Company prior to Maturity as provided in the foregoing
paragraphs, subject to:

 

(a)
the Company giving notice to the Relevant Regulator and the Relevant Regulator granting permission to the Company to redeem, purchase,
substitute or vary the Subordinated Debt Securities as the case may be (in each case to the extent, and in the manner, required by the
relevant Applicable Regulations);

 

(b)
in respect of any redemption of the Subordinated Debt Securities proposed to be made prior to the fifth anniversary of the Issue Date,
if and to the extent then required under the Applicable Regulations (A) in the case of an optional redemption due to a Tax Event, the
Company having demonstrated to the satisfaction of the Relevant Regulator that the relevant change or event is material and was not reasonably
foreseeable by the Company as at the Issue Date or (B) in the case of redemption following the occurrence of a Capital Disqualification
Event, the Company having demonstrated to the satisfaction of the Relevant Regulator that the relevant change was not reasonably foreseeable
by the Company as at the Issue Date;

 

    A-8

    	 

    

(c)
if and to the extent then required under the Applicable Regulations, either: (A) the Company having replaced the Subordinated Debt Securities
with instruments qualifying as own funds of equal or higher quality on terms that are sustainable for the income capacity of the Company;
or (B) (save in the case of sub-paragraph (d)(A) below) the Company demonstrating to the satisfaction of the Relevant Regulator that
the own funds and eligible liabilities of the Company would, following such redemption, purchase, substitution or variation, exceed its
minimum applicable capital requirements (including any applicable buffer requirements) by a margin that the Relevant Regulator considers
necessary at such time; and

 

(d)
in the case of any purchase prior to the fifth anniversary of the Issue Date, in addition to satisfying either of the conditions specified
in paragraph (c) above, either: (A) the Company having, before or at the same time as such purchase, replaced the Subordinated Debt Securities
with own funds instruments of equal or higher quality at terms that are sustainable for the income capacity of the Company, and the Relevant
Regulator having permitted such action on the basis of the determination that it would be beneficial from a prudential point of view
and justified by exceptional circumstances; or (B) the relevant Subordinated Debt Securities being purchased for market- making purposes
in accordance with the Applicable Regulations.

 

Notwithstanding
the above conditions, if, at the time of any redemption, purchase, substitution or variation the then prevailing Applicable Regulations
permit the repayment, purchase, substitution or variation only after compliance with one or more alternative or additional preconditions
to those set out above, the Company shall comply with such other and/or, as appropriate, additional pre-condition(s).

 

If
the Company elects to redeem the Subordinated Debt Securities, the Subordinated Debt Securities will cease to accrue interest from the
date of redemption, provided the redemption price has been paid in accordance with the Indenture.

 

Upon
payment of (i) the amount of principal (and premium, if any) so declared due and payable and (ii) accrued and unpaid interest, all of
the Company’s obligations in respect of the payment of the principal of (and premium, if any), and accrued and unpaid interest
on, the Subordinated Debt Securities of this series shall terminate.

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of the Subordinated Debt
Securities, by purchasing or acquiring the Subordinated Debt Securities, each Holder (including each Beneficial Owner) of the Subordinated
Debt Securities acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power (as defined below)
by the relevant U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a portion, of the principal
amount of, or interest on, the Subordinated Debt Securities; (ii) the conversion of all, or a portion, of the principal amount of, or
interest on, the Subordinated Debt Securities into shares or other securities or other obligations of the Company or another person;
and/or (iii) the amendment or alteration of the Maturity of the Subordinated Debt Securities, or amendment of the amount of

 

    A-9

    	 

    

interest
due on the Subordinated Debt Securities, or the dates on which interest becomes payable, including by suspending payment for a temporary
period; which U.K. bail-in power may be exercised by means of variation of the terms of the Subordinated Debt Securities solely to give
effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. With respect to (i), (ii) and (iii) above,
references to principal and interest shall include payments of principal and interest that have become due and payable (including principal
that has become due and payable at Maturity), but which have not been paid, prior to the exercise of any U.K. bail-in power. Each Holder
and Beneficial Owner of the Subordinated Debt Securities further acknowledges and agrees that the rights of the Holders and/or Beneficial
Owners under the Subordinated Debt Securities are subject to, and will be varied, if necessary, solely to give effect to, the exercise
of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For these purposes,
a “U.K. bail-in power” is any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company and the Group,
including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted in the United
Kingdom within the context of the U.K. resolution regime under the Banking Act 2009 as the same has been or may be amended from time
to time (whether pursuant to the Banking Reform Act 2013, secondary legislation or otherwise), pursuant to which any obligations of a
bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary period)
or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised. A reference to the “relevant
U.K. resolution authority” is to any authority with the ability to exercise a U.K. bail-in power.

 

No
repayment of the principal amount of the Subordinated Debt Securities or payment of interest on the Subordinated Debt Securities shall
become due and payable after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that
such repayment or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by the Company
under the laws and regulations of the United Kingdom applicable to the Company or other members of the Group.

 

Neither
a reduction or cancellation, in part or in full, of the principal amount of, or interest on, the Subordinated Debt Securities or the
conversion thereof into another security or obligation of the Company or another person, as a result of the exercise of the U.K. bail-in
power by the relevant U.K. resolution authority with respect to the Company, nor the exercise of the U.K. bail-in power by the relevant
U.K. resolution authority with respect to the Subordinated Debt Securities will be a default or an event of default for any purpose.

 

    A-10

    	 

    

The
Company’s obligations to indemnify the Trustee in accordance with Section 6.07 of the Subordinated Indenture shall survive the
exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Subordinated Debt Securities.

 

By
its acquisition of the Subordinated Debt Securities, each Holder and each Beneficial Owner of the Subordinated Debt Securities to the
extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit against
the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or abstains from taking,
in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the
Subordinated Debt Securities.

 

By
its acquisition of the Subordinated Debt Securities each Holder and each Beneficial Owner of the Subordinated Debt Securities acknowledges
and agrees that:

 

(i) the
U.K. bail-in power by the relevant U.K. resolution authority with respect to the Subordinated Debt Securities shall not give rise to
a Default or Event of Default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the Trustee in Case of
Default) of the Trust Indenture Act;

 

(ii) upon
the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee shall not be required to take any further
directions from Holders under Section 5.12 of the Subordinated Indenture, and (b) neither the Subordinated Indenture nor this Eighth
Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect to the exercise of any U.K. bail-in power by
the relevant U.K. resolution authority. Notwithstanding the foregoing, if, following the completion of the exercise of the U.K. bail-in
power by the relevant U.K. resolution authority, the Subordinated Debt Securities remain outstanding (for example, if the exercise of
the U.K. bail-in power results in only a partial write-down of the principal of the Subordinated Debt Securities), then the Trustee’s
duties under the Subordinated Indenture shall remain applicable with respect to the Subordinated Debt Securities following such completion
to the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Subordinated Indenture,
unless the Company and the Trustee agree that a supplemental indenture is not necessary; and,

 

(iii)
it shall be deemed to have (i) consented to the exercise of any U.K. bail-in power as it may be imposed without any prior notice by the
relevant U.K. resolution authority of its decision to exercise such power with respect to the Subordinated Debt Securities and (ii) authorized,
directed and requested Clearstream Luxembourg and/or Euroclear and any direct participant in Clearstream, Luxembourg and/or Euroclear
or other intermediary through which it holds such Subordinated Debt Securities to take any and all necessary action, if required, to
implement the exercise of any U.K. bail-in power

 

    A-11

    	 

    

with respect
to the Subordinated Debt Securities as it may be imposed, without any further action or direction on the part of such Holder or Beneficial
Owner or the Trustee.

 

Upon
the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Subordinated Debt Securities, the
Company shall provide a written notice to Clearstream, Luxembourg and/or Euroclear as soon as practicable regarding such exercise of
the U.K. bail-in power for purposes of notifying Holders of such occurrence. The Company shall also deliver a copy of such notice to
the Trustee for information purposes only.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Subordinated Debt Securities to be affected thereby by the Company and the Trustee
with the consent of the Holders of not less than two-thirds in principal amount of the Subordinated Debt Securities at the time outstanding.
The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Outstanding Subordinated
Debt Securities, on behalf of the Holders of all Subordinated Debt Securities, to waive compliance by the Company with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Subordinated Debt Security shall be conclusive and binding upon such Holder and upon all future Holders of this Subordinated Debt Security
and of any Subordinated Debt Security issued in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Subordinated Debt Security.

 

No
reference herein to the Indenture and no provision of this Subordinated Debt Security or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay, if and when due and payable, the principal of (and premium, if any) and
interest on, this Subordinated Debt Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As
set forth in, and subject to, the provisions of the Indenture, no Holder of any Subordinated Debt Security of this series shall have
any right to institute any proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless such holder fulfills the requirements of Section 5.07 under the Indenture.

 

No
reference herein to the Indenture and no provision of this Subordinated Debt Security or of the Indenture shall alter or impair the right
of the Holder of this Subordinated Debt Security, which is absolute and unconditional, to receive payment of the principal of (and premium,
if any) and interest on, this Subordinated Debt Security when due and payable in accordance with the provisions of this Subordinated
Debt Security and the Indenture.

 

The
Subordinated Indenture, the Eighth Supplemental Indenture and the Subordinated Debt Securities are governed by, and construed in accordance
with, the laws of the

 

    A-12

    	 

    

State
of New York, except for the subordination and waiver of set-off provisions relating to the Subordinated Debt Securities, which are governed
by, and construed in accordance with, the laws of Scotland.

 

Unless
otherwise defined herein, all terms used in this Subordinated Debt Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

    A-13EXHIBIT 10.1

 

 

INNODATA INC.

2021 EQUITY COMPENSATION PLAN

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

 

This NONQUALIFIED STOCK OPTION
AWARD AGREEMENT (the “Agreement”), dated as of _________________ (the “Date of Grant”), is delivered
by Innodata Inc. (the “Company”) to _______________ (the “Participant”).

 

RECITALS

 

The Innodata Inc. 2021 Equity
Compensation Plan (the “Plan”) provides for the grant of stock options to purchase shares of Common Stock. The Committee
has decided to make this nonqualified stock option grant as an inducement for the Participant to promote the best interests of the Company
and its stockholders. The Participant hereby acknowledges the receipt of a copy of the Plan and the official Plan prospectus, each of
which have been provided with this Agreement. Paper copies of the Plan and the official Plan prospectus are available by contacting the
General Counsel of the Company at 201-371-8017 or aagress@innodata.com. This Agreement is made pursuant to the Plan and is subject in
its entirety to all applicable provisions of the Plan. Capitalized terms used herein and not otherwise defined will have the meanings
set forth in the Plan.

 

For this Agreement to be valid,
the Participant must, within 30 days of the Date of Grant, or date of receipt of this Agreement if later, sign, date and return a copy
of this Agreement to Amy Agress, SVP and General Counsel, Innodata Inc., email aagress@innodata.com.

 

1.               
Grant of Option. Subject to the terms and conditions set forth in this Agreement and in the Plan, the Company hereby grants
to the Participant a nonqualified stock option (the “Option”) to purchase _____ shares of Common Stock (“Shares”)
at an Exercise Price of $___ per Share. The Option shall become exercisable according to Section 2 below.

 

2.               
Exercisability of Option.

 

(a)             
The Option shall become vested and exercisable on the following dates (each, a “Vesting Date”), provided that
the Participant continues to be employed by, or provide service to, the Employer from the Date of Grant until the applicable Vesting Date:

 

	
    Vesting 

    Date
	[Percentage of] Shares for Which the Option is Exercisable as of the Vesting Date
	One-year anniversary from the Date of Grant	[33.33%][or # of shares]
	Two-year anniversary from the Date of Grant	[33.33%][or # of shares]
	Three-year anniversary from the Date of Grant	[33.34%][or # of shares]

 

(b)             
The vesting and exercisability of the Option is cumulative, but shall not exceed 100% of the Shares subject to the Option. If the
foregoing schedule would produce fractional Shares, the number of Shares for which the Option becomes vested and exercisable shall be
rounded down to the nearest whole Share and the fractional Shares will be accumulated so that the resulting whole Shares will be included
in the number of Shares for which the Option becomes vested and exercisable on the last Vesting Date.

 

3.               
Term of Option.

 

(a)             
The Option shall have a term of ten years from the Date of Grant and shall terminate at the expiration of that period, unless it
is terminated at an earlier date pursuant to the provisions of this Agreement or the Plan. Notwithstanding the foregoing, in the event
that on the last business day of the term of the Option, the exercise of the Option is prohibited by applicable law, including a prohibition
on purchases or sales of Common Stock under the Company’s insider trading policy, the term of the Option shall be extended for a
period of 30 days following the end of the legal prohibition, unless the Committee determines otherwise.

 

    	 	1	 

     

    

 

(b)             
The Option shall automatically terminate upon the happening of the first of the following events:

 

(i)              
The expiration of the 90-day period after the Participant ceases to be employed by, or provide service to, the Employer, if the
termination is for any reason other than Disability, death or Cause.

 

(ii)            
The expiration of the six-month period after the Participant ceases to be employed by, or provide service to, the Employer on account
of the Participant’s Disability.

 

(iii)           
The expiration of the one-year period after the Participant ceases to be employed by, or provide service to, the Employer, if the
Participant dies while employed by, or providing service to, the Employer or the Participant dies within 90 days after the Participant
ceases to be so employed or to provide services to the Employer for any reason other than Disability, death or Cause.

 

(iv)           
The date on which the Participant ceases to be employed by, or provide service to, the Employer for Cause. In addition, notwithstanding
the prior provisions of this Section 3, if the Participant engages in conduct that constitutes Cause after the Participant’s employment
or service terminates, the Option shall immediately terminate.

 

Notwithstanding the foregoing, in no event may
the Option be exercised after the date that is immediately before the tenth anniversary of the Date of Grant, except as provided under
Section 3(a) above. Subject to the provisions of Section 12 of the Plan, any portion of the Option that is not exercisable at the time
the Participant ceases to be employed by, or provide service to, the Employer shall immediately terminate.

 

4.               
Exercise Procedures.

 

(a)             
Subject to the provisions of Sections 2 and 3 above, the Participant may exercise part or all of the exercisable Option by giving
the Company written notice of intent to exercise, specifying the number of shares of Common Stock as to which the Option is to be exercised
and such other information as the Company or its delegate may require.

 

At such time as the Committee
shall determine, the Participant shall pay the Exercise Price (i) in cash or by check, (ii) unless the Committee determines otherwise,
by delivering shares of Common Stock owned by the Participant and having a Fair Market Value on the date of exercise at least equal to
the Exercise Price or by attestation (on a form prescribed by the Committee) to ownership of shares of Common Stock having a Fair Market
Value on the date of exercise at least equal to the Exercise Price, (iii) by payment through a broker in accordance with procedures permitted
by Regulation T of the Federal Reserve Board, (iv) [if permitted by the Committee,] by withholding shares of Common Stock subject to the
exercisable Option, which have a Fair Market Value on the date of exercise equal to the Exercise Price, or (v) by such other method as
the Committee may approve. The Committee may impose from time to time such limitations as it deems appropriate on the use of shares of
Common Stock to exercise the Option.

 

(b)             
The obligation of the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules, and
regulations and such approvals by governmental agencies as may be deemed appropriate by the Committee, including such actions as Company
counsel shall deem necessary or appropriate to comply with relevant securities laws and regulations.

 

(c)             
All obligations of the Company under this Agreement shall be subject to the rights of the Employer as set forth in the Plan to
withhold amounts required to be withheld for any taxes, if applicable. The Participant shall be required to pay to the Employer, or make
other arrangements satisfactory to the Employer to provide for the payment of, any federal, state, local or other taxes that the Employer
is required to withhold with respect to the Option. [If permitted by the Committee,] The Participant may elect to, or the Company may
require that the Participant, satisfy any tax withholding obligation of the Employer with respect to the Option by having Shares withheld
to satisfy the applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities under procedures established
by the Company. Unless the Committee determines otherwise, share withholding for taxes shall not exceed the Participant’s minimum
applicable tax withholding amount.

 

    	 	2	 

     

    

 

(d)             
Upon exercise of the Option (or portion thereof), the Option (or portion thereof) will terminate and cease to be outstanding.

 

5.               
Restrictions on Exercise. Except as the Committee may otherwise permit pursuant to the Plan, only the Participant may exercise
the Option during the Participant’s lifetime and, after the Participant’s death, the Option shall be exercisable (subject
to the limitations specified in the Plan) solely by the legal representatives of the Participant, or by the person who acquires the right
to exercise the Option by will or by the laws of descent and distribution, to the extent that the Option is exercisable pursuant to this
Agreement.

 

6.               
Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated herein by
reference, and in all respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option are subject to the
provisions of the Plan and to interpretations, regulations and determinations concerning the Plan established from time to time by the
Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations
with respect to withholding and other taxes, (b) the registration, qualification or listing of the Shares, (c) changes in capitalization
of the Company and (d) other requirements of applicable law. The Committee may amend the terms of this Option to the extent permitted
by the Plan. The Committee shall have the authority to interpret and construe the Option pursuant to the terms of the Plan, and its decisions
shall be conclusive as to any questions arising hereunder.

 

7.               
No Employment or Other Rights. The grant of the Option shall not confer upon the Participant any right to be retained by
or in the employ or service of any Employer and shall not interfere in any way with the right of any Employer to terminate the Participant’s
employment or service at any time. The right of any Employer to terminate at will the Participant’s employment or service at any
time for any reason is specifically reserved.

 

8.               
No Stockholder Rights. Neither the Participant, nor any person entitled to exercise the Participant’s rights in the
event of the Participant’s death, shall have any of the rights and privileges of a stockholder with respect to the Shares subject
to the Option, until certificates for Shares have been issued upon the exercise of the Option.

 

9.               
Assignment and Transfers. Except as the Committee may otherwise permit pursuant to the Plan, the rights and interests of
the Participant under this Agreement may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death
of the Participant, by will or by the laws of descent and distribution. In the event of any attempt by the Participant to alienate, assign,
pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as provided for in this Agreement, or in the event
of the levy or any attachment, execution or similar process upon the rights or interests hereby conferred, the Company may terminate the
Option by notice to the Participant, and the Option and all rights hereunder shall thereupon become null and void. The rights and protections
of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and
affiliates. This Agreement may be assigned by the Company without the Participant’s consent.

 

10.            
Applicable Law. The validity, construction, interpretation and effect of this Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof.

 

11.            
Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the Office
of the General Counsel at the corporate headquarters of the Company, and any notice to the Participant shall be addressed to such Participant
at the current address shown on the payroll of the Employer, or to such other address as the Participant may designate to the Employer
in writing. Any notice shall be delivered by hand or enclosed in a properly sealed envelope addressed as stated above, registered and
deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service or by electronic mail to legal@innodata.com.

 

12.            
Company Policies. The Participant agrees that the Option shall be subject to any applicable clawback or recoupment policies,
share trading policies and other policies that may be implemented by the Board or imposed under applicable rule or regulation from time
to time.

  

    	 	3	 

     

    

 

13.            
Application of Section 409A of the Code. This Agreement is intended to be exempt from section 409A of the Code and to the
extent this Agreement is subject to section 409A of the Code, it will in all respects be administered in accordance with section 409A
of the Code.

 

[Signature Page Follows]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the Company
has caused an officer to execute this Agreement, and the Participant has executed this Agreement, effective as of the Date of Grant.

  

	 	INNODATA INC.	 
	 	 	 
	 	 	 
	 	Name: Jack Abuhoff	 
	 	Title: Chief Executive Officer	 

 

I hereby accept the Option described in this Agreement,
and I agree to be bound by the terms of the Plan and this Agreement. I hereby further agree that all decisions and determinations of the
Committee shall be final and binding.

  

	 	Participant:	 	 
	 	Date:	 	 

 

    	 	5

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