Document:

EX-10.11

 Exhibit 10.11 
  

 
 ENTERPRISE KDB+ SOFTWARE OEM LICENSE AGREEMENT 

This Kdb+ Software Enterprise OEM License Agreement (“OEM Agreement”) is entered into by and between Kx Systems, Inc., 555 Bryant
Street #375, Palo Alto, California 94301 (“Kx”) and Appian Corporation, 1875 Explorer Street, 4th Floor, Reston, Virginia 20190 (“Appian”). 

Effective Date: June 15, 2016 
 Kx Contract
No. RCF13037 
 Licensed Software: Kdb Software and Kdb+ Software 

[***] Fees: 
 Appian will pay Kx the
following [***]: 
  

			
	[***] Fees
	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]

 BY SIGNING BELOW, KX AND APPIAN AGREE THAT THIS OEM AGREEMENT, INCLUDING THESE INFORMATION PAGES AND THE
ACCOMPANYING GENERAL TERMS, IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES AND SUPERSEDES ALL PROPOSALS, PRIOR AGREEMENTS AND OTHER COMMUNICATIONS BETWEEN THE PARTIES, ORAL AND WRITTEN, RELATING TO THE SUBJECT MATTER
HEREOF. THIS OEM AGREEMENT MAY ONLY BE AMENDED OR MODIFIED IN A WRITTEN DOCUMENT SIGNED BY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES. 
  

			
	 Kx Systems, Inc.
	  	Appian Corporation
		
	 By: /s/ Robert C. Fourr
	  	By: /s/ Matt Calkins
		
	 Name: Robert C. Fourr
	  	Name: Matt Calkins
		
	 Title: General Counsel
	  	Title: CEO
		
	 Date: June 13, 2016
	  	Date: June 16, 2016

  
 - 1 -. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 GENERAL TERMS 
  

	1.	SCOPE OF OEM AGREEMENT 

 Kx and Appian previously entered into the Kdb Software OEM
Enterprise License Agreement effective January 1, 2002 (“Original Agreement”), which sets forth the terms on which Appian may use the Kdb Software and Kx programming languages to develop and distribute applications that integrate
Kx’s Kdb Software. Thereafter, Kx and Appian entered into the following four amendments to the Original Agreement (jointly, “Amendments Nos. 1-4”): 

(a)    Amendment No. 1 to Appian Corporation’s Kdb Software OEM Enterprise License Agreement,
effective September 2, 2005 (“Amendment No. 1”). 
 (b)    Amendment No. 2 to
Appian Corporation’s Kdb Software OEM Enterprise License Agreement, effective January 1, 2006 (“Amendment No. 2”) 

(c)    Amendment No. 2 to Appian Corporation’s K Software Enterprise License Agreement and
Amendment No. 3 to Appian Corporation’s Kdb Software OEM Enterprise License Agreement, effective March 11, 2007(“Amendment No. 3”). 

(d)    Amendment No. 4- [***]
Revision-to Appian Corporation’s Kdb Software OEM Enterprise License Agreement, effective April 25, 2008 (“Amendment No. 4”). 

This OEM Agreement replaces and supersedes the Kdb Agreement and Amendments Nos. 1-4, and sets forth
the terms on which Kx will license and provide maintenance for the Licensed Software to Appian for purposes of Appian developing and distributing applications that integrate Kx’s Licensed Software. 

 

	2.	DEFINITIONS 

 The terms defined in this Section 2 and any other capitalized terms
defined in other sections of this OEM Agreement shall have the meanings stated. 
 2.1    “OEM
Agreement” means this OEM Customer License Agreement. 
 2.2    “Appian Application”
means an application software program developed by Appian into which the Licensed Software is embedded. 

2.3    “Appian Computer” means a stand-alone or server computer under the exclusive control of
Appian. 
 2.4    “Application Hosting Service” is the service provided where Appian makes the
Appian Application available to a Customer via a Web client or other remote means thereby enabling the Customer to use the functionality of the Appian Application. 

2.5    “Contractor” means an independent contractor to Appian that has entered into a written
agreement with Appian that obligates the Contractor to the nondisclosure terms of this OEM Agreement. 

2.6    “Core” means a core instruction processing circuit integrated onto a Processor. A Processor
may contain multiple Cores. 
 2.7    “Customer” means a customer to which Appian distributes,
or for which Appian hosts, an Appian Application pursuant to the terms and conditions of a license agreement between such customer and Appian that is consistent with Appian’s obligations under the terms of this OEM Agreement. 

  
 2. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 2.8    “Customer Computer” means a stand-alone or
server computer under the exclusive control of a Customer. 
 2.9    “Distributor” means a third
party duly authorized by Appian (either directly or through a third party so authorized by Appian) to distribute Appian Applications pursuant to written agreements with Appian that complies with the requirements of this Agreement 

2.10    “Documentation” means the electronic files located at [***]. 

2.11    “Employee” means any regular employee of Appian who has entered into a written employment
or other agreement with Appian that obligates the employee to the nondisclosure terms of this OEM Agreement or the equivalent thereof. 

2.12    “Error” means a material failure of the Licensed Software to conform to the Documentation,
which failure is demonstrable on a Appian Computer or Customer Computer and causes the Licensed Software to be inoperable or to operate improperly. Failures resulting from the following are not Errors: (a) Appian’s negligence or improper
use of the Licensed Software, or (b) Appian’s use of the Licensed Software in combination with any third party software not identified as compatible by Kx. 

2.13    “Error Correction” means either a modification or addition that, when made or added to the
Licensed Software, brings the Licensed Software into material conformity with its functional specifications, or a procedure or routine that, when observed in the regular operation of the Licensed Software, avoids the practical adverse effect of such
nonconformity. 
 2.14    “Kdb Software” means Kx’s proprietary 32 bit relational database
management software and Kx’s proprietary programming language “K.” 
 2.15    “Kdb+
Software” means Kx’s proprietary 64 bit relational database management software and Kx’s proprietary programming languages “Q” and “K.” 

2.16    “Key File” means the file that enables the Licensed Software+ Software to run on computers
with the machine names and network addresses encrypted into the Key File. The Key File limits the Licensed Software to running on a specific number of Cores and on specified Appian Computers or Customer Computers. A Production Key File also enables
the Licensed software to be updated during the time period for which Appian has paid the annual Maintenance Services fee. 

2.17    “Licensed Cores” means the Cores as defined above) on which the Appian and its Customers
are permitted to run the Licensed Software. 
 2.18    “Licensed Software” means the Kdb
Software, Kdb+ Software and Key Files. The Licensed Software includes all Updates of the Licensed Software provided by Kx to Appian pursuant to this OEM Agreement. The Licensed Software does not include New Products. 

  
 3. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 2.19    “Major Error” means any Error that
(a) causes the Licensed Software to halt or causes another program required for operation to halt, (b) causes or is likely to cause data to be lost or destroyed, or (c) prevents the Licensed Software from being installed or executed
on the properly configured environment or consistently prevents Appian from accessing the Licensed Software. 

2.20    “Minor Error” means any Error that does not rise to the level of a Major Error. 

2.21    “New Product” means a Kx software product that either (a) provides significantly
different functionality from the Licensed Software, or (b) is of significantly different design than the Licensed Software even if the New Product includes some of the functionality of the Licensed Software. 

2.22    “Processor” means a physically discrete integrated circuit chip having one or more Cores
contained on it. 
 2.23    “Signed Appian Application” means a Appian Application that is
“signed” to match the signature in the Key File. “Signed” means that the Appian Application file includes an encrypted text string matching the string contained in the Key File. 

2.24    “Update” means a modified version of the Licensed Software which incorporates Error
Corrections, new features and other improvements in performance or functionality from the previous version. 
  

	3.	DELIVERY AND INSTALLATION OF LICENSED SOFTWARE AND KEY FILES 

3.1    Delivery of Licensed Software. Appian will download the Licensed Software from [***]. 

3.2    Key Files. Each copy of the Licensed Software requires a “Key File” in order to run. Key
Files are delivered to Appian as set forth in section 3.3 below. Each Key File delivered to Appian enables the Licensed software to run for a specified period and allows Updates to the Licensed Software to be installed for a specified period. Each
Key File restricts the Licensed Software to running (1) on the number of Licensed Cores allowed under the terms of this OEM Agreement; (2) for a specified duration; (3) on the computer with the machine name or network address
specified in the Key File; and (4) with a Signed Appian Application. Production Key Files allow Appian to install Updates of the Licensed Software for the one year period covered by annual Maintenance Services fee that has been paid for each
copy of the Licensed software being used by Appian or a Customer. 
 3.3    Key File Delivery and Policies 

(a)    Delivery of Key Files. Kx will deliver Key Files to Appian via email. Except as
otherwise mutually agreed to between Kx and Appian, the parties will continue the current system of Kx and Appian [***]. 

(b)    Requirements for Receiving Key Files. Appian may only receive Key Files for copies of
the Licensed software that Appian is licensed to distribute pursuant to the terms of this OEM Agreement. Appian may only receive Key Files that enable Appian to install Updates to the Licensed Software if Appian has paid Kx the annual Maintenance
Services fee covering the period for which Updating is enabled. Appian will at such times as requested by Kx send a letter to Kx certifying that Appian’s receipt of Key Files is in compliance with the terms of this OEM Agreement. 

  
 4. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 3.4    Key File Types and Duration. Key files are denominated
by type, depending upon their purpose and duration. 
 (a)    A “Trial Key File” allows the
Licensed Software to operate on a specific operating system for a period of [***]. Appian will have access to an unrestricted number of “Trial Key Files.” A Trial Key File is restricted as to machine name, network address and number of
Cores on which the Licensed Software will run. The Trial Key Files are for use by Appian to demonstrate the Licensed Software to potential customers. Trial Key Files may not be used for production. 

(b)    An “Interim Key File” allows Appian or its Customer to run the Licensed Software for
[***] on Customer Computers having the machine name, network address and number of Cores specified in the Interim Key File. Interim Key Files are intended for production use of the Licensed Software until Appian receives payment from its Customer.

 (c)     A “Production Key File” allows Appian or its Customer to run the Licensed Software
indefinitely. However, Production Key Files must also be replaced annually in order for the Licensed Software to be able to continue to install Updates. 

3.5    Updates. Upon Kx’s commercial release of an Update to the Licensed Software, Kx will make the
Update available to Appian from [***] to install on copies of the Licensed Software where Appian has paid the annual Maintenance Services fee for the year in which the Update is commercially released. 

 

	4.	LICENSED SOFTWARE LICENSE GRANTS 

 4.1    Appian
Application Development License. Kx hereby grants Appian a non-exclusive, non-transferable license, without right of sublicense, to copy and
install the Licensed Software onto the hard disk or other permanent storage media of Appian Computers and Customer Computers for purposes of Appian Employees and Contractors developing and testing Appian Applications. Appian may make and maintain
copies of the Licensed Software for backup purposes. The foregoing license grant is subject to the terms and conditions set forth in section 4.4 below. 

4.2    Appian Application Distribution License. Kx hereby grants Appian a non-exclusive, non-transferable license to distribute copies of the Licensed Software as embedded in Appian Applications to Customers, directly and Indirectly through
Distributors, and to grant Customers the right to install and execute the Licensed Software as embedded in the Appian Applications on Customer Computers in conjunction with the Appian Applications subject to the terms and conditions set forth in
section 4.5 below. Appian Applications may be accessed and used by employees and contractors of the Appian Customer to which Appian (or a Distributor) licensed the Appian Applications and by other third parties authorized by Appian (or a
Distributor) and the Appian Customer to use and access the Appian Application. 

  
 5. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 4.3    Appian Application Hosting License.
Kx hereby grants Appian a non-exclusive, non-transferable license, without right of sublicense, to copy and install the Licensed Software onto the hard disk or other
permanent storage media of Appian Computers or the computers of a third party hosting service for purposes of Appian providing Application Hosting Services to Customers. The Appian Applications must be installed and run on Appian Computers; the
Appian Application may not be installed on a Customer or other third party computer. The foregoing license grant is subject to the terms and conditions set forth in section 4.5 below. 

4.4    [***] Hosting License. Kx hereby grants Appian [***]. The foregoing license grant is subject to the
terms and conditions set forth in section 4.5 below. 
 4.5    Development, Distribution and Hosting Licenses
Restrictions. The following restrictions apply to the licenses granted under sections 4.1, 4.2, 4.3 and 4.4 above: 

(a)    Significant Added Functionality. All Appian Applications must have been developed by
Appian or its Contractors. Appian Applications must have significant added functionality and custom features developed by Appian beyond those available in the Licensed Software as delivered to Appian. The Appian Application must be designed such
that Customer users of the Appian Application may modify input parameters, but the Appian Application may not allow Customer users to directly or indirectly modify the Licensed Software q code or otherwise create new functionality in the Appian
Application. In addition, Appian may not accept code from the Customer for inclusion in the Appian Application or otherwise customize the Appian Application for a specific Customer. 

(b)    Licensed Software Access Restrictions. Data may be fed into the Licensed Software
from any source, but only the Appian Application may extract data from the Licensed Software. In addition, the Customer may not have the ability to write raw q code (i.e. the q console may not be exposed to the Customer). The customer may not load
unsigned code from the file system and may not pass manually constructed raw code via IPC to the Licensed Software. 

(c)    Key File Time Periods. Subject to the terms of Section 3.4 above, Appian may
request and receive Trial, Interim and Production Key Files that allow the Licensed Software to run for a period of [***]. Key Files for [***] do not allow Updates to be installed. Production Key Files only allow Updates to be installed during the
one year period for which Appian or Customer has paid the annual Maintenance Services fee. 

(d)    Installation and Transfer of Licensed Software. Appian may install additional copies
of the License Softw`are on Appian Computers and Customer Computers using new Key Files. Appian may move the Licensed Software from one Appian or Customer Computer to another Appian or Customer Computer, and vice versa, by generating a new Key File
and destroying the old Key File. 
 (e)    Modifications to Licensed Software. Neither
Appian nor its Customers shall attempt to reverse engineer, decompile or otherwise prepare any derivative works of the Licensed Software. Appian acknowledges that the Licensed Software is proprietary and contains confidential and valuable trade
secrets of Kx, which Appian agrees to safeguard as provided for under section 11, Confidential Information, below. 

  
 6. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 (f)    Customer Sublicense Agreement. Each
distribution of a Appian Application shall be subject to an agreement between Appian and Customer which provides, at a minimum, that the Customer shall not (a) attempt to reverse engineer, disassemble, decompile or otherwise attempt to derive
source code from the Appian Application or the Licensed Software embedded therein, or (b) modify, adapt, translate, or create derivative works based on the Appian Application or Licensed Software embedded therein. 

(g)    Distributor Sublicense Agreement. All distribution of Appian Applications through
Distributors shall be pursuant to a written and executed agreement between Appian and the Distributor (or, in the case of a sub-Distributor, with the original Distributor) which (i) grants the Distributor
no greater rights and imposes on the Distributor no lesser obligations than those granted to and imposed on Appian under this OEM Agreement; (ii) prohibits the Distributor from reverse engineering, disassembling, decompiling or otherwise
attempting to derive any source code from the Appian Application (and, by implication, the Licensed Software embedded therein); and (iii) provides that the Distributor shall only distribute Appian Applications pursuant to written and executed
licenses that themselves comply with the terms of this subparagraph and are consistent with the terms required of Appian Customers under this OEM Agreement. 

(h)    Appian Indemnity. Appian shall be solely responsible for, and Kx shall have no
obligation to honor, any warranties that Appian provides to Customers with respect to the Appian Applications. Appian shall defend any claim against Kx arising in connection with Customers’ use of a Appian Applications, and Appian shall pay any
settlements or damages awarded against Kx resulting from such a claim, provided that Kx supplies Appian with timely notice of any such claim against Kx. 

(i)    Enforcement of Customer Sublicense. Appian agrees to use diligent efforts to enforce
any violation or breach of the license agreement between Appian and Customers where such violations or breaches in any way relate to the Licensed Software, and to inform Kx promptly of any known violation or breach. 

4.6    Merger into, or Acquisition of or by, a Third Party; Reorganization. In the event Appian is merged
into, acquires or is acquired by a third party, or if Appian reorganizes, the resulting entity (a) may only use the Licensed Software within the division or business entity that was formerly Appian Corporation and its foreign subsidiaries, and
(b) may only develop and distribute Appian Applications having the same primary functionality and Customer uses as the Appian Applications in use at the time of such event. 

 

	5.	SOFTWARE OWNERSHIP RIGHTS 

 5.1    Licensed Software
Ownership. Appian acknowledges and agrees that Kx owns all right, title and interest in the Licensed Software and in all of Kx’s patents, trademarks, trade names, inventions, copyrights, know-how and
trade secrets relating to the design, manufacture and operation of the Licensed Software. The use by Appian of such proprietary rights is authorized only for the purposes herein set forth and upon termination of this OEM Agreement for any reason,
such authorization will cease except as otherwise provided herein. 
 5.2    Appian Application Ownership.
Kx acknowledges and agrees that Appian owns all right, title and interest in the Appian Applications and in all of Appian’s patents, trademarks, trade names, inventions, copyrights, know-how and trade
secrets relating to the design, manufacture and operation of the Appian Applications. 

  
 7. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

	6.	LICENSED SOFTWARE MAINTENANCE 

 6.1    “Maintenance
Services” are the services described in this section 6. Kx will continue to provide Maintenance Services for the Kdb Software through December 31, 2020. Kx will provide Maintenance Services for the Kdb+ Software subject to section 6.7
below. Kx will provide Maintenance Services to Appian, but not to Appian Customers. Maintenance Services for the Kdb+ Software are provided for the most recent Update for so long as it is the most recent Update and then for one year after release of
the next Update. 
 6.2    Generally Released Error Corrections and Updates. If Kx generally makes
available any Error Corrections or Updates to the Licensed Software while Appian is receiving Maintenance Services, Kx will notify Appian of such Error Corrections and Updates by posting a message on the k4 listbox and will make the Error
Corrections or Updates available to Appian without charge by download from the Kx Website. 
 6.3    Errors in
Licensed Software 
 (a)    Major Errors. Kx shall, within [***] of the receipt of
notice from Appian of a Major Error, initiate work to verify such Major Error. If Kx can reproduce the Major Error, then it will use diligent efforts to provide an Error Correction for such Major Error within the following [***] period, including
any necessary modification to the Licensed Software. In the event that Kx is unable to correct any Major Error within such [***], Appian shall have the right to request written assurances from Kx that it is using diligent efforts to correct the
Major Error and is likely to do so within a commercially reasonable time. 
 (b)    Minor
Errors. Kx shall, within [***] of the receipt of notice from Appian of a Minor Error, initiate work to verify such Minor Error. If Kx can reproduce the Minor Error and the Minor Error noticeably degrades operation of the Licensed Software,
then Kx will provide an Error Correction for such Minor Error within [***] of receipt of notice of the Minor Error and, if commercially reasonable, install such corrections into the Licensed Software. If Kx cannot reproduce the reported Minor Error,
Kx shall discuss further analysis of the Minor Error with Appian. If Kx can reproduce the Minor Error, but the Minor Error does not noticeably degrade operation of the Licensed Software, then Kx will initiate work to provide Error Correction for
such Minor Error in the next Update or release of the Licensed Software. 
 6.4    Email Assistance. Kx
will make a member of its technical staff available by email weekdays, excluding holidays, between 8:00 a.m. and 5:00 p.m., U.S. East Coast (EST/EDT) time, to Appian’s designated Technical Contact. Appian may designate [***] technical contacts.
Kx will consider requests by Appian that additional persons be designated a Technical Contacts. Error reports should be sent to [***]. 

6.5    Appian Responsibilities 

(a)    Notification. Appian agrees to notify Kx in writing promptly following the discovery
of any Error. 

  
 8. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 (b)    Information. Upon discovery of an Error,
Appian agrees, if requested by Kx, to submit to Kx a listing of output and any other data that Kx may require in order to reproduce the Error and the operating conditions under which the Error occurred. Such listings and data shall be deemed as
Appian’s Confidential Information. When any Error arises with respect to the Licensed Software which may be caused by a third party’s equipment, software, modifications, improvements or service, Appian will first follow a reasonable
screening procedure specified by Kx to identify the source of the Error. Such screening procedure may involve identifying any software that transmits data into or receives data from the Licensed Software. If after the screening procedure has been
completed, Appian is still not able to determine the source of such Error, Kx will cooperate with Appian and/or a third party in determining the source of the Error until it is reasonably determined whether such Error is caused by Appian’s or a
third party’s equipment, software, modifications, improvements or service. 

(c)    Implementation of Error Corrections and Updates. Appian also agrees to implement
within a reasonable time all Error Corrections and Updates provided by Kx under this OEM Agreement, provided that such Error Corrections and Updates do not materially adversely affect the version of the Licensed Software used by Appian for run-time operations. 
 6.6    Exclusions from Maintenance Services.
Maintenance Services do not cover maintenance for any failure or defect in the Licensed Software caused by any of the following: (a) improper use, alteration, or damage of the Licensed Software by Appian or third persons, (b) application
software other than the Licensed Software, or (c) interfacing between the Licensed Software and software not approved by Kx. Maintenance Services do not cover maintenance for any trial or downloaded version of Licensed Software or Licensed
Software or any other version other than the version(s) delivered under this OEM Agreement. 
 6.7    Term and
Termination of Maintenance Services. Kx may terminate Maintenance Services for the then current version and all prior versions of the Licensed Software at the later of (a) December 31, 2025, or (b) at such time as Kx generally
stops supporting the Licensed Software for all of its customers. 
  

	7.	FEES 

 7.1    [***] Fees. Appian agrees to pay Kx
[***]. 
 7.2    Maintenance Services Fees. Appian agrees to pay Kx an annual Maintenance Services fee of
$[***]. The annual Maintenance Services fee for each year is due on [***] of that year or within [***] after Appian receives Kx’s invoice, whichever is later. Maintenance Services fees paid under the Original Agreement will be credited towards
fees due under this agreement 
 7.3    Maintenance Fee Increases. Commencing with Maintenance Services
fee due in [***] and [***], Kx may, at its discretion, increase the Maintenance Services fee by up to [***] over the then current Maintenance Services fee payable by Appian for each existing and additional Licensed Core purchased by Appian. 

7.4    Payment of Fees. The license and Maintenance Services fees are due and payable within [***] after
Appian receives Kx’s invoice. Maintenance Service fees are billed 

  
 9. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 
separately from license fees and cannot be applied as a pre-payment of license fees. In no case will Kx make partial refunds of annual Maintenance Services
fees, even if an Appian Customer stops paying Appian for support or maintenance during the one year Maintenance Services fee term for which Appian has paid Kx the annual Maintenance Services fee. 

7.5    Resale Certificate. Appian agrees to provide Kx with a valid Resale Certificate for the Appian
Applications. If the resale certificate is not accepted by the applicable taxing authority or if Kx is otherwise obligated to pay any sales tax based on Appian’s distribution of Appian Applications, Appian agrees to pay Kx all sales tax,
interest and penalties that Kx is assessed by the taxing authority for the relevant transactions. 
  

	8.	LIMITED WARRANTY 

 8.1    Licensed Software Warranty.
Kx warrants to Appian only, and not to Appian Customers or any other third party, that the Licensed Software will perform in substantial 4’accordance with the Documentation for a period of [***] from the Effective Date (“Warranty
Period”). Kx does not warrant and hereby disclaims any implied warranty that the operation of the Licensed Software will be error free or uninterrupted. 

8.2    Repair or Refund. If during the Warranty Period the Licensed Software does not perform as warranted
in section 8.1 above, Kx shall undertake to correct Licensed Software, or if correction of the Licensed Software is not reasonably possible, Kx may terminate this OEM Agreement and refund to Appian the license fee paid hereunder. The foregoing are
Appian’s sole and exclusive remedies for breach of warranty. The warranties set forth above are made to and for the benefit of Appian only and not any third party. The foregoing warranties will apply only if (i) the Licensed Software has
been properly installed and used at all times and in accordance with the instructions for use, and (ii) no modification, alteration or addition has been made to the Licensed Software by persons other than Kx or Kx’s authorized
representative. 
 8.3    No Maintenance Services Warranty. Kx will provide the Maintenance Services
described herein in a professional and workmanlike manner, but Kx cannot guarantee that every error in the Licensed Software, or problem raised by Appian will be resolved. Kx Systems makes, and Appian receives, no warranties of any kind, express,
implied or statutory, arising in any way out of or related to the Maintenance Services provided under this OEM Agreement. 

8.4    Power and Authority. Each party represents and warrants that (i) it has the full right, power
and authority to enter into this OEM Agreement and to discharge its obligations hereunder, and (ii) it has not entered into any agreement inconsistent with this OEM Agreement or otherwise granted any third party any rights inconsistent with the
rights granted to the other party under this OEM Agreement. 
 8.5    Limited Warranty. OTHER THAN THE
WARRANTIES EXPRESSLY STATED ABOVE, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES RELATING TO THE LICENSED SOFTWARE, THE DOCUMENTATION OR THE MAINTENANCE SERVICES COVERED BY THIS OEM AGREEMENT, AND KX EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. KX DOES NOT WARRANT AND HEREBY DISCLAIMS ANY IMPLIED WARRANTY THAT THE OPERATION OF THE LICENSED SOFTWARE WILL BE ERROR FREE OR
UNINTERRUPTED. 

  
 10. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 8.6    Allocation of Risk. The provisions of this
Section 8 allocate risks under this OEM Agreement between Appian and Kx. Kx’s pricing reflects this allocation of risks and limitation of liability. 

8.7    No Expansion of Warranty. No employee, agent, representative or affiliate of Kx has authority to bind
Kx to any oral representations or warranty concerning the Licensed Software. Any written representation or warranty not expressly contained in this OEM Agreement is not enforceable. 

 

	9.	INDEMNIFICATION 

 9.1    By Kx. Kx shall defend, or at
its option settle, at its own expense, any claim, suit or proceeding brought against Appian on the issue of infringement of any United States patent, copyright, trade secrets, or trademark by the Licensed Software, subject to the limitations
hereinafter set forth. Kx shall have sole control of any such action or settlement negotiations, and Kx agrees to pay, subject to the limitations hereinafter set forth, any settlement fees or final judgment and attorney’s fees entered against
Appian on such issue in any such suit or proceeding. Appian agrees to notify Kx promptly in writing of such claim, suit or proceeding and gives Kx authority to proceed as contemplated herein, and, at Kx’s expense, shall give Kx proper and full
information and assistance to settle and/or defend any such claim, suit or proceeding. 
 9.2    Kx
Options. In the event that (i) the Licensed Software is held to infringe the rights of a third party and the use of the Licensed Software is enjoined, (ii) Kx concludes that the Licensed Software infringes the rights of a third party,
or (iii) in the case of settlement as referred to in section 9.1 above, Kx will, if possible on commercially reasonable terms, at its own expense and option: (a) procure for Appian the right to continue to use the Licensed Software,(b)
replace the infringing components of the Licensed Software with other components with the same or similar functionality that are reasonably acceptable to Appian, or (c) suitably modify the Licensed Software so that it is non-infringing and reasonably acceptable to Appian. If none of the foregoing options are available to Kx on commercially reasonable terms, Kx may terminate this OEM Agreement without further liability to Appian
except as provided in section 9.1 above. Appian will cooperate with Kx in the return of the Licensed Software. 

9.3    Limitation. Notwithstanding the provisions of section 9.1 above, Kx assumes no liability for
(i) infringements arising from combinations of the Licensed Software with non-Kx software or hardware products, including any of Appian’s products, (ii) modifications to the Licensed Software
made by any party other than Kx or Kx’s authorized representative or made under Kx’s direction, (iii) use of a prior version of the Licensed Software to the extent such infringement would have been avoided by the use of the current
version of the Licensed Software, provided that Kx has offered or provided such current version to Appian at no additional cost, or (iv) trademark infringements involving any marking or branding not applied by Kx or involving any marking or
branding applied at the request of Appian and not approved by Kx. 
 9.4    Entire Liability. The
foregoing provisions of this section 9 state the entire liability and obligations of Kx and the exclusive remedy of Appian with respect to any alleged infringement of patents, copyrights, trademarks or other intellectual property rights by the
Licensed Software or any part thereof. 

  
 11. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 9.5    By Appian. Except for infringement claims covered by
Kx’s indemnity in section 9.1, Appian agrees to indemnify and hold Kx harmless against any cost, loss, liability or expense (including attorneys’ fees) arising out of third party claims against Kx as a result of Appian’s (i) use
of the Licensed Software to provide Hosting Services to any Appian Customer, (ii) representation of the Licensed Software in a manner inconsistent with Kx’s published Licensed Software description and warranties, or (iii) any use or
distribution of the Licensed Software inconsistent with the terms of this OEM Agreement. 
  

	10.	LIMITATION OF LIABILITY AND DAMAGES 

 10.1    Limitation
of Liability. OTHER THAN EXPRESSLY STATED HEREIN, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, LOSS OF USE, INTERRUPTION OF BUSINESS, LOST PROFITS OR ANY CONSEQUENTIAL, SPECIAL,
INCIDENTAL, OR INDIRECT DAMAGES OF ANY KIND UNDER ANY CAUSE OR ACTION (INCLUDING NEGLIGENCE), WHETHER OR NOT THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL
PURPOSE OF ANY LIMITED REMEDY. 
 10.2    Limitation of Damages. EXCEPT FOR THE PARTIES’ OBLIGATIONS
UNDER SECTION 9 ABOVE OR APPIAN’S REPRODUCTION, USE OR DISTRIBUTION OF THE LICENSED SOFTWARE OUTSIDE THE SCOPE OF THE LICENSES AND RIGHTS GRANTED IN SECTION 4 ABOVE, EACH PARTY’S TOTAL LIABILITY FOR DAMAGES IN CONNECTION WITH THIS OEM
AGREEMENT, WHETHER IN AN ACTION IN CONTRACT OR TORT OR ANY OTHER FORM OF ACTION, WILL IN NO EVENT EXCEED THE AMOUNT OF THE TOTAL LICENSE FEES ACTUALLY PAID TO KX BY APPIAN UNDER THIS OEM AGREEMENT. 

 

	11.	CONFIDENTIAL INFORMATION 

 11.1    Confidential
Information. As used in this OEM Agreement, the term “Confidential Information” means (a) information disclosed in writing by one party to the other and marked confidential, (b) information disclosed orally by one party to
the other and summarized in writing by the discloser and marked confidential within thirty (30) days of such oral disclosure, and (c) the Licensed Software and Documentation. 

11.2    Non-Disclosure. Each party agrees that during the term of
this OEM Agreement and for a period of five (5) years thereafter, it will treat as confidential all Confidential Information of the other party, will not use such Confidential Information except as expressly set forth herein or otherwise
authorized in writing, will implement reasonable procedures to prohibit the disclosure, duplication, misuse or removal of the other party’s Confidential Information and will not disclose such Confidential information to any third party except
as may be necessary and required in connection with the rights and obligations of such party under this OEM Agreement, and subject to confidentiality obligations at least as protective as those set forth herein. Without limiting the foregoing, each
party will use at least the same procedures and degree of care that it uses to prevent the disclosure of its own confidential information of like importance to prevent the disclosure of Confidential Information disclosed to it by the other party
under this OEM Agreement, but in no event less than reasonable care. 

  
 12. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 11.3    Exceptions. The foregoing restrictions will not apply
to information that (a) is known to the receiving party at the time of communication to the receiving party, (b) has become publicly known through no wrongful act of the receiving party, (c) has been rightfully received from a third
party authorized to make such communication without restriction, (d) has been independently developed by the receiving party, (e) has been approved for release by written authorization of the communicating party, or (f) is required by
law to be disclosed; provided that if a party is required to disclose the other party’s Confidential Information pursuant to an order under law, the disclosing party shall give the party owning the Confidential Information sufficient notice of
such disclosure to allow the owning party reasonable opportunity to object to and take necessary legal action to prevent such disclosure. 

11.4    Disclosure of OEM Agreement Terms. Except as provided in section 12.3 below or as may be required by
law, each party agrees not to publicize or disclose the terms of this OEM Agreement to any third party without the prior written consent of the other party, except that disclosure may be made to a party’s attorneys, investors, potential
investors, investment bankers, lenders, accountants, employees and other representatives (in each case only where such persons or entities are under appropriate non-disclosure obligations) as is reasonably
necessary. 
 11.5    Product Descriptions. Appian shall not publish any technical description of the
Licensed Software beyond descriptions published by Kx. 
  

	12.	TRADEMARKS AND PUBLICITY 

 12.1    Trademark Use.
During the term of this OEM Agreement, each party shall have the right to indicate to the public that Appian is an OEM distributor of the Licensed Software. Each party hereby grants the other party a
non-exclusive, non-transferable, non-sublicensable license for the term of this OEM Agreement to use the other party’s
trademarks in connection with the publicity permitted by this section 12. Nothing herein shall grant either party any right, title or interest in the other party’s trademarks. At no time during or after the term of this OEM Agreement shall
either party challenge or assist others to challenge the other party’s trademarks or the registration thereof or attempt to register any trademarks, marks or trade names confusingly similar to those of the other party. 

12.2    Trademark Use Approval. All representations of a party’s trademarks that the other party
intends to use shall first be submitted to the first party for approval (which shall not be unreasonably withheld) of design, color, and other details or shall be exact copies of those used by trademark owner. if a party’s trademarks are to be
used in conjunction with another trademark, the trademark shall be presented equally legibly and equally prominently as theother, but nevertheless separated from the other so that each appears to be a mark in its own right, distinct from the other
mark. 
 12.3    Copyright and Other Ownership Notices. Whenever Appian is permitted to copy or reproduce
all or any part of the Licensed Software or Documentation, all titles, trademark symbols, copyright symbols and legends, and other proprietary markings must be reproduced. Copyright legends shall be in the form “© Copyright [year] by Kx Systems, Inc. All rights reserved.” Appian agrees to maintain the Appian Computers and media on which the Licensed Software is copied in a secure place. 

  
 13. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 12.4    Limitation on Trademark Use. Notwithstanding anything
else in this OEM Agreement, Appian may not use “Kx,” “Kdb” or “Kdb+” in any Appian Application product name except with the express written consent of Kx. If Kx grants such consent, the product name must make clear that
it a Appian, not a Kx, product. 
 12.5    Required Notice. Each Appian Application will display the
statement, “Powered by Kx” at the command line when a Kdb+ Software server is started. The Appian Application documentation must state the following: “[Appian Application name] is powered by Kdb+ software, which is owned by Kx
Systems, Inc.” 
  

	13.	TERM AND TERMINATION 

 13.1    Termination of Original
Agreement and Amendments Nos. 1-4. The Original Agreement and Amendments Nos. 1-4 are hereby terminated. Any provisions designated in the Original Agreement or
Amendments Nos. 1-4 a surviving termination of those agreements shall continue in effect. 

13.2    Term. This OEM Agreement shall commence on the Effective Date and shall continue until terminated as
provided in this section 13. 
 13.3    Termination for Convenience. Appian may terminate this OEM
Agreement at any time upon sixty (60) days written notice to Kx. Termination of this OEM Agreement by Appian shall in no way relieve Appian from its obligation to pay Kx any sums accrued or due prior to such termination. Specifically, Appian
shall be obligated to make the annual [***] payment for the [***] payment year in which Appian terminates the OEM Agreement, 

13.4    Termination for Cause. Either party may terminate this OEM Agreement at any time upon written notice
to the other party if (i) the other party materially breaches any provision hereof and fails to cure such breach within thirty (30) days after receiving written notice of such breach, (ii) the other party becomes insolvent,
(iii) the other party makes an assignment for the benefit of creditors, or (iv) if there are instituted by or against the other party proceedings in bankruptcy, reorganization, receivership or dissolution and such proceeding is not stayed
or dismissed within sixty (60) days. Appian’s failure to pay any amount that is due to Kx hereunder within thirty (30) days after Kx gives Appian written notice of such non-payment shall be a
material breach of this OEM Agreement. Provided further, however, except with respect to breaches arising out of: (a) Appian’s failure to pay amounts due under this OEM Agreement; (b) distribution of the Licensed Software in violation
of Section 4.2; or (c) other violations of Kx’s intellectual property rights, should Appian initiate a dispute of Kx’s termination of this OEM Agreement under Section 14.3, Kx shall continue to issue license keys to the
Licensed Software pursuant to Section 3 above until the earlier of the resolution of such dispute in Kx’s favor or six months from the date Kx could have terminated the OEM Agreement under the first sentence of this subsection. 

13.5    Continued Support and Customer Use of Applications. Following termination, Appian may continue to
support Appian Applications previously distributed to Customers, but Appian may not license Appian Applications to new Customers or license additional Licensed Cores to existing Customers. As to all on-going
support of then-existing Appian Applications, 

  
 14. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 
the terms of this OEM Agreement shall continue to apply. Upon any termination of this OEM Agreement, all licenses granted under section 4 above shall immediately terminate, except to the extent
such licenses are necessary for Appian to support previously distributed Appian Applications. 

13.6    Surviving Provisions of OEM Agreement. The provisions of section 5 (“Software Ownership
Rights”), section 8 (“Limited Warranty”), section 9 (“Indemnification”), section 10 (“Limitation of Liability and Damages”), section 11 (“Confidential Information”), section 13 (“Term and
Termination”) and Section 14 (“Additional Provisions”) shall survive the termination of this OEM Agreement for any reason. All other rights and obligations of the parties shall cease upon termination of this OEM Agreement. 

 

	14.	ADDITIONAL. PROVISIONS 

 14.1    Independent
Contractors. The parties to this OEM Agreement are independent contractors. Nothing contained herein or done pursuant to this OEM Agreement shall constitute either party being the agent or employee of the other party for any purpose, or
constitute the parties as partners or joint venturers. Neither party shall create or assume any obligation on behalf of the other party for any purpose whatsoever, unless such other party expressly agrees to such an obligation in writing. 

14.2    Governing Law. This OEM Agreement shall be governed by and interpreted in accordance with the laws
of the State of California, without reference to conflict of laws principles and without regard to the United Nations Convention on Contracts for the International Sale of Goods. 

14.3    Arbitration of Disputes. Any dispute, claim or controversy arising out of or relating to this OEM
Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this OEM Agreement to arbitrate, shall be determined by arbitration in Santa Clara County, California
before one arbitrator. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator may allocate all or part of the costs of the arbitration, including the fees of the arbitrator and the
reasonable attorneys’ fees of the prevailing party. Nothing in this OEM Agreement will be deemed as preventing either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the parties and
the subject matter of the dispute as is necessary to protect either party’s name, proprietary information, trade secrets, know-how, or any other intellectual property rights. Because both parties to this
OEM Agreement have had the opportunity to negotiate individual provisions of this OEM Agreement, the parties agree that any arbitrator or court shall not construe any ambiguity that may exist in this OEM Agreement against a party on the basis of
that party having drafted the OEM Agreement. 
 14.4    Exclusive Jurisdiction. The parties agree that all
disputes arising among them related to this OEM Agreement, whether arising in contract, tort, equity or otherwise, which for any reason are not subject to binding arbitration as provided in section 13.3 above, shall be resolved only in the United
States Federal Courts in the Northern District of California or California State Courts located in Santa Clara County, California. Each party hereby waives any disputes it may have with respect to proper venue. 

  
 15. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION. 

 14.5    Notices. Any notice required or permitted to be given
by either party under this OEM Agreement shall be in writing and shall be personally delivered or sent by certified or registered letter to the other party at the address set forth on the Front Page, or such new address and attention as may from
time to time be supplied hereunder by the parties hereto. Notices sent by mail shall be deemed effective three business days after deposit, postage prepaid, in the mail. 

14.6    Assignment and Successors. This OEM Agreement shall be binding and inure to the benefit of the
parties hereto and their respective successors and assigns. Neither party shall assign any of its rights nor delegate any of its obligations under this OEM Agreement to any third party without the express written consent of the other, provided that
consent shall not be required in connection with the reorganization or merger of a party or the sale of such party‘s business or all or substantially all of its assets to a third party. 

14.7    Force Majeure. Nonperformance of either party shall be excused to the extent that performance is
rendered impossible by strike, fire, flood, governmental acts, orders or restrictions, failure of suppliers, or any other reason where failure to perform is beyond the control and not caused by the negligence of the
non-performing party. 
 14.8    Waiver. The waiver by either
party of a breach or right under this OEM Agreement will not constitute a waiver of any other or subsequent breach or right. 

14.9    Amendment. This OEM Agreement may be amended or modified only in a written document signed by
authorized representatives of Kx and Appian. 
 14.10    Severability and Counterparts. If any provision
of this OEM Agreement is found to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be severed from the remainder of this OEM Agreement, which will remain in full force and effect. This OEM Agreement may be
signed in counterparts, which together constitute one instrument. 
 End of General Terms 

  
 16. 

Confidential and Proprietary 
 CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH 
 OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED [***]. A 
 COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION.EXHIBIT
10.1

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal Amount: $43,000.00	Issue Date: April 19, 2017
	Purchase
Price: $43,000.00	 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, COATES INTERNATIONAL, LTD., a Delaware corporation (hereinafter called the “Borrower”),
hereby promises to pay to the order of POWER UP LENDING GROUP LTD., a Virginia corporation, or registered assigns (the
“Holder”) the sum of $43,000.00 together with any interest as set forth herein, on January 30, 2018 (the “Maturity
Date”), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%)(the “Interest
Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at
maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise
explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at
the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”).
Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year
and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.0001 par
value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United
States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice
made in accordance with the provisions of this Note. Each capitalized term used herein, and not otherwise defined, shall have
the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note
was originally issued (the “Purchase Agreement”).

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

     

     

    

 

The
following terms shall apply to this Note:

 

Article
I. CONVERSION RIGHTS

 

1.1      Conversion
Right. The Holder shall have the right from time to time, and at any time during the period beginning on the date which is
one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date
of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding principal amount of
this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable
shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the
Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion
Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall
the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common
Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1)
of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived by the Holder.
The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion,
in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in
accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means
resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion
date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the
Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion
of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder’s
option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion
Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding
clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.2      Conversion Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as
defined herein) (subject to equitable adjustments by the Borrower relating to the Borrower’s securities or the securities
of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar
events). The "Variable Conversion Price" shall mean 61% multiplied by the Market Price (as defined herein) (representing
a discount rate of 39%). “Market Price” means the average of the lowest three (3) Trading Prices (as defined below)
for the Common Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Conversion
Date. “Trading Price” means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink Sheets
electronic quotation system or applicable trading market (the “OTC”) as reported by a reliable reporting service (“Reporting
Service”) designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security,
the closing bid price of such security on the principal securities exchange or trading market where such security is listed or
traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid
prices of any market makers for such security that are listed in the “pink sheets”. If the Trading Price cannot be
calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually
determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of
the Trading Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any
day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities
market on which the Common Stock is then being traded. 

 

    	 	2	 

     

    

 

1.3      Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all
times to have authorized and reserved eight times the number of shares that would be issuable upon full conversion of the Note
(assuming that the 4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the
Note (as defined in Section 1.2) in effect from time to time, initially 1,057,377,049)(the
“Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from
time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make
any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Note. The Borrower agrees that its issuance of this Note shall constitute full authority to its officers and agents who are
charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock
in accordance with the terms and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1.4      Method of Conversion.

 

(a)      Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning
on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity
Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time
from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or
other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject
to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder).

 

(b)      Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. 

 

    	 	3	 

     

    

 

(c)      Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed
to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount
of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on
its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except
the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the
Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates
for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to
enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or
any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation
to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the
Holder in connection with such conversion. 

 

(d)      Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth
herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable
upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system.

 

(e)      Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay
to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the
“Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result
of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts
of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month
following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day
of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right
to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult
if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section
1.4(e) are justified.

 

    	 	4	 

     

    

 

1.5      Concerning
the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) such
shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall
have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of
counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such shares are
transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the
shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

Any
restrictive legend on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed
and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer
agent shall have received an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions
of counsel in comparable transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without
registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in
the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an
effective registration statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In
the event that the Company does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer
of Securities pursuant to an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of
Default pursuant to Section 3.2 of the Note.

 

1.6      Effect of Certain Events.

 

(a)      Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of
the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed
to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon
the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III).
“Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other
entity or organization.

 

(b)     Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of
all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon
the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that
the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five
(5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record
date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event
or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring
entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly
apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

    	 	5	 

     

    

 

(c)      Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any
dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion
of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such
assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had
such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to
such Distribution.

 

1.7      Prepayment. Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on
the table immediately following this paragraph (the “Prepayment Periods”), the Borrower shall have the right, exercisable
on not more than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal
and accrued interest), in full, in accordance with this Section 1.7. Any notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower
is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days
from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”),
the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to Holder, or upon the direction of the Holder
as specified by the Holder in a writing to the Borrower (which direction shall to be sent to Borrower by the Holder at least one
(1) business day prior to the Optional Prepayment Date). If the Borrower exercises its right to prepay the Note, the Borrower
shall make payment to the Holder of an amount in cash equal to the percentage (“Prepayment Percentage”) as set forth
in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied by the sum of: (w) the
then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount
of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w)
and (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4 hereof (the “Optional Prepayment Amount”).
If the Borrower delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the
Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay
the Note pursuant to this Section 1.7.

 

	Prepayment Period	 	Prepayment Percentage
	1.    The period beginning on the Issue Date and ending on the date which is sixty (60) days following the Issue Date.	 	130%
	2.      The period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date.	 	135%
	3.     The period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days following the Issue Date.	 	140%
	4.    The period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty (150) days following the Issue Date.	 	145%
	5.     The period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty (180) days following the Issue Date.	 	150%

 

After
the expiration of one hundred eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

 

    	 	6	 

     

    

  

Article
II.  CERTAIN COVENANTS

 

2.1      Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the
Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary
course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

Article
III.  EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1      Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from
the Holder.

 

3.2      Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder
in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

    	 	7	 

     

    

 

3.3      Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this
Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of
twenty (20) days after written notice thereof to the Borrower from the Holder.

 

3.4      Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5      Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6      Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

3.7      Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC
(which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange,
the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8      Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange
Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9      Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10    Cessation of Operations.Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable
to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue
as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11    Financial Statement Restatement.The restatement of any financial statements filed by the Borrower with the SEC at any
time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of
such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or the Purchase Agreement.

 

    	 	8	 

     

    

 

3.12    Replacement
of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior
to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered
pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in
the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.13    Cross-Default.  Notwithstanding anything to the contrary contained in this Note or the other related or companion
documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements,
after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default
under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all
rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other
Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by:
(1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation,
promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents
to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing
and future debt of Borrower to the Holder.

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein).  UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE
NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS
HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during
the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof
or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration),
3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by
such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections
of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section
3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date
of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to
in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then
outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z)
shall collectively be known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be
prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant
to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date
as the “Conversion Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event
arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion
Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first
occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”)
and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all
of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection,
and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. 

 

    	 	9	 

     

    

 

If
the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect.

 

Article
IV. MISCELLANEOUS

 

4.1      Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2      Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be: 

 

If
to the Borrower, to:

 

COATES
INTERNATIONAL, LTD.

2100
Highway 34, Wall Township

New
Jersey 07719

Attn:
Barry C. Kaye, Chief Financial Officer

Fax:

Email:
bk@coatesengine.com

 

If
to the Holder:

 

POWER
UP LENDING GROUP LTD.

111
Great Neck Road, Suite 214

Great
Neck, NY 11021

Attn:
Curt Kramer, Chief Executive Officer

e-mail:
info@poweruplending.com

 

    	 	10	 

     

    

 

With
a copy by fax only to (which copy shall not constitute notice):

 

Naidich
Wurman LLP

111
Great Neck Road, Suite 216

Great
Neck, NY 11021

Attn:
Allison Naidich

facsimile:
516-466-3555

e-mail:
allison@nwlaw.com

 

4.3     Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

 

4.4     Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined
in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may
be pledged as collateral in connection with a bona fide margin account or other lending arrangement; and may be assigned
by the Holder without the consent of the Borrower. 

 

4.5     Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6     Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Virginia without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of
Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder
and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower
and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's
fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law.

 

4.7     Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase
Agreement.

 

4.8     Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this on April 19, 2017

 

COATES
INTERNATIONAL, LTD.

 

	By:	/s/
    Barry C. Kaye	 
	 	Barry
    C. Kaye	 
	 	Chief
    Financial Officer	 

 

    	 	11	 

     

    

EXHIBIT A -- NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth
below, of COATES INTERNATIONAL, LTD., a Delaware corporation (the “Borrower”) according to the conditions of the convertible
note of the Borrower dated as of April 19, 2017 (the “Note”), as of the date written below. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	☐	The Borrower shall electronically transmit the Common
Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit
Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name
of DTC Prime Broker:
	 	 	Account
Number:

 

	 	☐	The undersigned hereby requests that the Borrower issue
a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s
calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment
hereto:

 

POWER
UP LENDING GROUP LTD.

111
Great Neck Road, Suite 214

Great
Neck, NY 11021

Attention:
Certificate Delivery

e-mail:
info@poweruplendinggroup.com

 

	 	Date of conversion:	 	 	___________
	 	Applicable Conversion Price:	 	$	___________
	 	Number of shares of common stock to be issued pursuant to conversion of the Notes:	 	 	___________
	 	Amount of Principal Balance due remaining under the Note after this conversion:	 	 	___________

 

	 	POWER UP LENDING GROUP LTD.	 
	 	 	 	 
	 	By:	              	 
	 	Name:  Curt
    Kramer	 
	 	Title:
       Chief Executive Officer	 
	 	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}]]