Document:

Exhibit

Exhibit 10.1
AMENDED AND RESTATED
BROOKDALE SENIOR LIVING INC.
2014 OMNIBUS INCENTIVE PLAN

Section 1.    Purpose of Plan.
The name of this plan is the Amended and Restated Brookdale Senior Living Inc. 2014 Omnibus Incentive Plan (as amended from time to time, the "Plan"). The purpose of the Plan is to provide additional incentive to selected employees, directors and Consultants (as hereinafter defined) of the Company or its Subsidiaries (as hereinafter defined) whose contributions are essential to the growth and success of the Company's business, in order to strengthen the commitment of such persons to the Company and its Subsidiaries, motivate such persons to faithfully and diligently perform their responsibilities and attract and retain competent and dedicated persons whose efforts shall result in the long-term growth and profitability of the Company. The Plan is also designed to encourage stock ownership by such persons, thereby aligning their interest with the interests of the Company's stockholders. To accomplish such purposes, the Plan provides that the Company may grant Options, Stock Appreciation Rights, Restricted Shares, Restricted Stock Units, unrestricted Shares, Performance Awards (which may include cash awards), Other Stock-Based Awards or any combination of the foregoing.
Section 2.    Definitions.
For purposes of the Plan, the following terms shall be defined as set forth below:
(a)    "Administrator" means the Board, or if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 3 hereof.
(b)    "Affiliate" means an affiliate of the Company (or other referenced entity, as the case may be) as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act.
(c)    "Award" means any Option, Stock Appreciation Right, Restricted Share, Restricted Stock Unit, unrestricted Share, Performance Award, or Other Stock-Based Award granted under the Plan.
(d)    "Award Document" means any written agreement, contract or other instrument or document evidencing an Award, including through electronic medium, which shall contain such terms and conditions with respect to an Award as the Administrator shall determine, consistent with the Plan.
(e)    "Beneficial Owner" (or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.
(f)    "Board" means the Board of Directors of the Company.

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(g)    "Bylaws" mean the bylaws of the Company, as may be amended and/or restated from time to time.
(h)    "Cause" has the meaning set forth in the Participant's employment or other agreement with the Company or any of its Affiliates, provided that if the Participant is not a party to any such employment or other agreement or such employment or other agreement does not contain a definition of Cause, then Cause means (i) the continued failure by the Participant to substantially perform his or her duties and obligations to the Company or any of its Affiliates, including without limitation, repeated refusal to follow the reasonable directions of his or her employer, (ii) the Participant's intentional violation of law in the course of performance of the duties of Participant's employment or service with the Company or any of its Affiliates, (iii) the Participant's engagement in misconduct which is materially injurious to the Company or any of its Affiliates, (iv)  the Participant's repeated absences from work without a reasonable excuse, (v)  the Participant's intoxication with alcohol or illegal drugs while on the Company's or any Affiliate's premises during regular business hours (other than any such failure resulting from his or her incapacity due to physical or mental illness); (vi) the Participant's fraud or material dishonesty against the Company or any of its Affiliates; or (vii) the Participant's conviction or plea of guilty or nolo contendere for the commission of a felony or a crime involving material dishonesty. Determination of Cause shall be made by the Administrator in its sole discretion. 
(i)    "Change in Capitalization" means any (i) merger, consolidation, reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction or event, (ii) stock split or reverse stock split, (iii) combination or exchange of shares, (iv) other change in corporate structure or (v) declaration of a special or extraordinary dividend or other distribution (whether in the form of cash, Common Stock or other property), which, in any such case, the Administrator determines, in its sole discretion, affects the Shares such that an adjustment pursuant to Section 5 hereof is appropriate.  
(j)    "Change in Control" shall be deemed to have occurred if an event set forth in any one of the following paragraphs shall have occurred:
(1)    any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or any of its Affiliates) representing fifty percent (50%) or more of the combined voting power of the Company's then outstanding securities; or
(2)    the following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to, a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or  

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(3)    there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than a merger or consolidation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the Board of the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof; or  
(4)    the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets, other than (i) a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company following the completion of such transaction in substantially the same proportions as their ownership of the Company immediately prior to such sale or (ii) a sale or disposition of all or substantially all of the Company's assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof. 
Notwithstanding the foregoing, (i) a Change in Control shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of shares of Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions and (ii) for each Award that constitutes deferred compensation under Section 409A of the Code, and solely to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, a Change in Control shall be deemed to have occurred under the Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code.  
(k)    "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.
(l)    "Committee" means any committee or subcommittee the Board may appoint to administer the Plan. Subject to the discretion of the Board, the Committee shall be composed entirely of individuals who meet the qualifications of (i) a "non-employee director" within the meaning of Rule 16b-3 and (ii) any other qualifications required by the applicable stock exchange on which the Common Stock is traded. If at any time or to any extent the Board shall not administer the Plan, then the functions of the Administrator specified in the Plan shall be exercised by the Committee. Except as otherwise provided in the Company's Certificate of Incorporation or Bylaws, as amended from time to time, any action of the Committee with respect to the administration of the Plan shall be taken by a majority vote at a meeting at which a quorum is duly constituted or unanimous written consent of the Committee's members. 

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(m)    "Common Stock" means the common stock, par value $.01 per share, of the Company.
(n)    "Company" means Brookdale Senior Living Inc. (or any successor corporation).
(o)    "Consultant" means a consultant or advisor who is a natural person, engaged to render bona fide services to the Company or any of its Subsidiaries.
(p)    "Covered Officer" means any individual who is or is likely to be a "covered employee" as defined in Section 162(m) of the Code with respect to the current taxable year of the Company or with respect to the taxable year of the Company in which any applicable Award will be paid or become vested.
(q)    "Disability" means that a Participant, as determined by the Administrator in its sole discretion, is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company or any of its Affiliates.
(r)    "Eligible Recipient" means any employee, director or Consultant of the Company or any of its Subsidiaries who has been selected as an eligible participant by the Administrator.
(s)    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time.
(t)    "Exercise Price" means the per share price at which a holder of an Award may purchase the Shares issuable upon exercise of such Award.
(u)    "Fair Market Value" of a share of Common Stock, another security or property as of a particular date means the fair market value as determined by the Administrator in its sole discretion; provided, however, that if a share of Common Stock or other security is admitted to trading on a national securities exchange, the fair market value on any date shall be the closing sale price reported for such share on such exchange on such date, or, if no sale was reported on such date, the closing sale price reported for such share on such exchange on the last day preceding such date on which a sale was reported.  
(v)    "Incentive Stock Option" means an Option that is an "incentive stock option" within the meaning of Section 422 of the Code, or any successor provision, and that is designated in the applicable Award Document as an Incentive Stock Option.

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(w)    "Non-Employee Director" means a director of the Company who is not an officer, employee or Consultant of the Company or of any Subsidiary.
(x)    "Nonqualified Stock Option" means any Option that is not an Incentive Stock Option, including any Option that provides (as of the time such Option is granted) that it shall not be treated as an Incentive Stock Option.
(y)    "Option" means an option to purchase shares of Common Stock granted pursuant to Section 7 hereof.
(z)    "Other Stock-Based Award" means a right or other interest granted to a Participant under the Plan that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Common Stock, including but not limited to dividend equivalents or performance units, each of which may be subject to the attainment of performance objectives, including objectives based on one or more of the Performance Goals, a period of continued employment or service or other terms or conditions as permitted under the Plan.
(aa)    "Participant" means any Eligible Recipient selected by the Administrator, pursuant to the Administrator's authority in Section 3 hereof, to receive grants of Awards, and upon his or her death, his or her successors, heirs, executors and administrators, as the case may be.
(bb)    "Performance Award" means an award under Section 11 hereof.
(cc)    "Performance Goals" means performance goals based on criteria selected by the Administrator in its sole discretion, including, without limitation, one or more of the following criteria: (i) earnings including operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or extraordinary or special items or book value per share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii) earnings per Share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate of revenue growth, including revenue per occupied unit ("RevPOR") and revenue per available unit ("RevPAR"); costs, cost growth or rate of cost growth; (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) stock price appreciation; (x) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi) implementation or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative earnings per share growth; (xiv) operating margin or profit margin; (xv) Common Stock price or absolute or relative total stockholder return; (xvi) cost targets, reductions and savings, productivity and efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation or information technology goals, or goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons; (xviii) personal professional objectives, including any of the foregoing performance goals, the implementation of policies, processes and plans, the negotiation of 

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transactions, the development of long term business goals, formation of joint ventures, research or development collaborations, and the completion of other corporate transactions; (xix) Cash From Facility Operations ("CFFO") or CFFO per Share; adjusted CFFO or adjusted CFFO per Share; CFFO, adjusted CFFO, CFFO per Share or adjusted CFFO per Share growth; Adjusted Free Cash Flow; or other operating cash flow measures; (xx) Facility Operating Income ("FOI") or FOI per Share; (xxi) Adjusted EBITDA or Adjusted EBITDA per Share; (xxii) net operating income ("NOI") or NOI per Share; and (xxiii) any combination of, or a specified increase in, any of the foregoing. Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company or any of its Affiliates (including the Company’s proportionate share of such items attributable to any joint venture in which the Company has an interest but that is not controlled by the Company or in which the Company shares control), or a division, segment, same-community or strategic business unit of the Company or any of its Affiliates, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the Administrator. The Performance Goals may include a threshold level of performance below which no payment shall be made (or no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and a maximum level of performance above which no additional payment shall be made (or at which full vesting shall occur). Except as otherwise noted, each of the foregoing Performance Goals shall be determined in accordance with generally accepted accounting principles. The Administrator shall have the authority to make equitable adjustments to the Performance Goals as determined by the Administrator, including in recognition of unusual or non-recurring events affecting the Company or any of its Affiliates or the financial statements of the Company or any of its Affiliates, in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles.
(dd)    "Person" has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company.
(ee)    "Restricted Share" means a Share, granted pursuant to Section 9 hereof, subject to certain restrictions that lapse at the end of a specified period or periods and/or upon the attainment of specified performance objectives, including objectives based on one or more Performance Goals.
(ff)    "Restricted Stock Unit" means a right, granted pursuant to Section 9 hereof, to receive an amount in cash or Shares (or any combination thereof) equal to the Fair Market Value of a Share at the end of a specified deferral period or periods and/or upon the 

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attainment of specified performance objectives, including objectives based on one or more of the Performance Goals.
(gg)    "Retirement" means, unless other determined by the Administrator and evidenced in an Award Document, a termination of a Participant's employment or service, other than for Cause, on or after attainment of age 65.
(hh)    "Rule 16b-3" means Rule 16b-3 under the Exchange Act.
(ii)    "Shares" means shares of Common Stock reserved for issuance under the Plan, as adjusted pursuant to the Plan, and any successor (pursuant to a merger, consolidation or other reorganization) security.
(jj)    "Stock" means Common Stock. 
(kk)    "Stock Appreciation Right" means a right, granted under Section 8 hereof, to receive an amount equal to the excess, if any, of (i) the aggregate Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is surrendered, of the Shares covered by such right or such portion thereof, over (ii) the aggregate Exercise Price of such right or such portion thereof.
(ll)    "Subsidiary," when used to determine whether an individual service provider can be an Eligible Recipient of an Award hereunder, means any corporation or other entity in a chain of corporations or other entities (beginning with the Company and ending with the Subsidiary to which the service provider provides direct services on the date of grant of the Award) in which each corporation or other entity has a "controlling interest" in another corporation or other entity in the chain and as to which the Company is consequently an "eligible issuer of service recipient stock" (within the meaning of Treasury Regulation Section 1.409A-1(b)(5)(iii)(E)). An additional requirement applies when "Subsidiary" is used to determine whether an employee can be an Eligible Recipient of an Incentive Stock Option Award: "Subsidiary" then is also required to be a corporation in an unbroken chain of corporations beginning with the Company, with each of the corporations (other than the last corporation in the unbroken chain) owning stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain at the time of the granting of the Incentive Stock Option Award.
Section 3.    Administration.
(a)    The Plan shall be administered by the Administrator and shall be administered in accordance with the requirements of Rule 16b-3, to the extent applicable.
(b)    Pursuant to the terms of the Plan, the Administrator, subject, in the case of any Committee, to any restrictions on the authority delegated to it by the Board, shall have the power and authority, without limitation:
(1)    to select those Eligible Recipients who shall be Participants;

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(2)    to determine whether and to what extent Options, Stock Appreciation Rights, Restricted Shares, Restricted Stock Units, unrestricted shares, Performance Awards, Other Stock-Based Awards or a combination of any of the foregoing, are to be granted hereunder to Participants;
(3)    to determine whether Options are intended to be Incentive Stock Options or Nonqualified Stock Options, provided, however, that Incentive Stock Options can only be granted to employees of the Company or any of its Subsidiaries (within the meaning of Sections 424(e) and (f) of the Code);
(4)    to determine the number of Shares to be covered by each Award granted hereunder;
(5)    to determine the terms and conditions, subject to the requirements of Section 409A of the Code and not inconsistent with the terms of the Plan (including Section 16(f) hereof), of each Award granted hereunder (including, but not limited to, (i) the restrictions applicable to awards of Restricted Shares or Restricted Stock Units and the conditions under which restrictions applicable to such awards of Restricted Shares or Restricted Stock Units shall lapse, (ii) the performance objectives and periods applicable to each Award, (iii) the Exercise Price, (iv) the vesting schedule applicable to Awards, (v) the number of Shares subject to Awards and (vi) any amendments to the terms and conditions of outstanding Awards, including, but not limited to extending the exercise period of such Awards and accelerating the vesting schedule of such Awards);
(6)    to determine the terms and conditions, subject to the requirements of Section 409A of the Code and not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Awards granted hereunder;
(7)    to determine the Fair Market Value for any purpose;
(8)    to determine the duration and purpose of leaves of absence which may be granted to a Participant without constituting termination of their employment or service for purposes of Awards granted under the Plan;
(9)    to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; and
(10)    to construe and interpret the terms and provisions of the Plan and any Award granted under the Plan (and any Award Document relating thereto), and to otherwise supervise the administration of the Plan and to exercise all powers and authorities either specifically granted under the Plan or necessary and advisable in the administration of the Plan.
(c)    Notwithstanding paragraph (b) of this Section 3, (i) neither the Board, the Committee nor their respective delegates shall have the authority to reprice (or cancel and regrant) any Option or, if applicable, other Award at a lower exercise, base or purchase price, or cancel any Award with an exercise, base or purchase price in exchange for cash, property or 

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other Award, without first obtaining the approval of the Company's stockholders, and (ii) neither the Board, the Committee nor their respective delegates shall have the authority to take any action that would cause any Award granted under the Plan to fail to comply with Section 409A of the Code and any regulations or guidance promulgated thereunder.  
(d)    All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. No member of the Board or the Committee, nor any officer or employee of the Company or any of its Affiliates acting on behalf of the Board or the Committee, shall be personally liable for any action, omission, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee of the Company or any of its Affiliates acting on their behalf shall, to the maximum extent permitted by law and the Bylaws, be fully indemnified and protected by the Company in respect of any such action, omission, determination or interpretation.
(e)    Notwithstanding anything in this Plan to the contrary, all awards to Non-Employee Directors shall be administered by the Compensation Committee of the Board.
(f)    The Administrator may, in its sole discretion, delegate its authority, in whole or in part, under this Section 3 (including, but not limited to, its authority to grant Awards under the Plan, other than its authority to grant Awards under the Plan to any Participant who is subject to reporting under Section 16 of the Exchange Act) to one or more officers of the Company, subject to the requirements of applicable law or any stock exchange on which the Shares are traded.
 Section 4.    Shares Reserved for Issuance Under the Plan; Certain Limitations.
(a)    Subject to Section 5 hereof, the number of shares of Common Stock that are reserved and available for issuance pursuant to Awards granted under the Plan shall be equal to the sum of (i) 14,000,000 shares of Common Stock, (ii) the number of shares of Common Stock reserved but unissued under the Brookdale Senior Living Inc. Omnibus Incentive Plan (as amended from time to time, the "2005 Plan") as of the Effective Date; (iii) the number of shares of Common Stock that become available for reuse under the 2005 Plan following the Effective Date in accordance with the provisions of Section 4 thereof; and (iv) 5,400,000 shares of Common Stock, subject to approval by the Company’s stockholders at the 2019 Annual Meeting of Stockholders. All such shares of Common Stock that are available for the grant of Awards under the Plan may be granted as Incentive Stock Options.
(b)    Notwithstanding anything in this Plan to the contrary, and subject to Sections 5 and 6 hereof:
(1)    no individual (including an individual who is a Covered Officer) will be granted Options or Stock Appreciation Rights for more than 750,000 Shares during any fiscal year; and 

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(2)    no individual who is a Covered Officer will be granted (A) Restricted Shares, Restricted Stock Units, unrestricted Shares, Performance Awards or Other Stock-Based Awards for more than 800,000 Shares during any fiscal year or (B) an Award denominated in cash in excess of $3,000,000 during any fiscal year.   
(c)    Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or Shares that shall have been or may be reacquired by the Company in the open market, in private transactions or otherwise. If any Shares subject to an Award are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares to the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination or expiration, again be available for Awards under the Plan. Notwithstanding the foregoing, Shares that are exchanged by a Participant or withheld by the Company as full or partial payment in connection with the exercise of any Option or Stock Appreciation Right under the Plan or the payment of any purchase price with respect to any other Award under the Plan, as well as any Shares exchanged by a Participant or withheld by the Company to satisfy (i) the tax withholding obligations related to any Option or Stock Appreciation Right under the Plan or (ii) the tax withholding obligations in excess of the minimum statutory rate in the applicable jurisdiction related to any other Award under the Plan, shall not be available for subsequent Awards under the Plan, and notwithstanding that a Stock Appreciation Right is settled by the delivery of a net number of Shares, the full number of Shares underlying such Stock Appreciation Right shall not be available for subsequent Awards under the Plan. Upon the exercise of any Award granted in tandem with any other Awards, such related Awards shall be cancelled to the extent of the number of Shares as to which the Award is exercised and, notwithstanding the foregoing, such number of Shares shall no longer be available for Awards under the Plan. In addition, (i) to the extent an Award is denominated in Shares, but paid or settled in cash, the number of Shares with respect to which such cash payment or settlement is made shall again be available for grants of Awards pursuant to the Plan and (ii) Shares underlying Awards that can only be settled in cash shall not be counted against the aggregate number of Shares available for Awards under the Plan.  
Section 5.    Equitable Adjustments.
(a)    In the event of any Change in Capitalization, an equitable substitution or proportionate adjustment shall be made, in each case, as may be determined by the Administrator, in its sole discretion, in (i) the aggregate number of shares of Common Stock reserved for issuance under the Plan and the maximum number of Shares that may be subject to Awards granted to any Participant in any fiscal year, (ii) the kind and number of securities subject to, and the Exercise Price of, any outstanding Options and Stock Appreciation Rights granted under the Plan, (iii) performance objectives, including objectives based on one or more of the Performance Goals and (iv) the kind, number and purchase price of Shares, or the amount of cash or amount or type of other property, subject to outstanding awards of Restricted Shares, Restricted Stock Units, Performance Awards or Other Stock-Based Awards granted under the Plan, in each case as may be determined by the Administrator, in its sole discretion; provided, however, that any fractional shares resulting from the adjustment shall be eliminated. Such other 

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equitable substitutions or adjustments shall be made as may be determined by the Administrator, in its sole discretion.
(b)    Without limiting the generality of the foregoing, in connection with a Change in Capitalization, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding Award granted hereunder in exchange for payment in cash or other property having an aggregate Fair Market Value equal to the Fair Market Value of the Shares, cash or other property covered by such Award, reduced by the aggregate Exercise Price or purchase price thereof, if any; provided, however, that if the Exercise Price of any outstanding Award is equal to or greater than the Fair Market Value of the shares of Common Stock, cash or other property covered by such Award, the Board may cancel such Award without the payment of any consideration to the Participant. Notwithstanding the foregoing, with respect to Incentive Stock Options, any adjustment shall be made in accordance with the provisions of Section 424(h) of the Code and any regulations or guidance promulgated thereunder, and provided further that no such adjustment shall cause any Award hereunder which is or becomes subject to Section 409A of the Code to fail to comply with the requirements of such Section. The Administrator's determinations pursuant to this Section 5 shall be final, binding and conclusive.
Section 6.    Eligibility.
The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from those individuals who qualify as Eligible Recipients; provided, however, that Incentive Stock Options may only be granted to employees of the Company or any of its Subsidiaries. Non-Employee Directors shall also be eligible for Awards under the Plan, as determined by the Compensation Committee of the Board from time to time; provided, however, the aggregate value of all compensation paid or granted, as applicable, to any individual for service as a Non-Employee Director with respect to any calendar year, including equity Awards granted and cash fees paid by the Company to such Non-Employee Director, shall not exceed six hundred thousand dollars ($600,000) in value, calculating the value of any equity Awards granted during such calendar year based on the grant date fair value of such Awards for financial reporting purposes. The Board may make exceptions to increase such limit to one million dollars ($1,000,000) for individual Non-Employee Directors in extraordinary circumstances, such as where a Non-Employee Director serves as the non-executive chairman of the Board or as a member of a special litigation or transactions committee of the Board, as the Board may determine in its discretion, provided that the Non-Employee Director receiving such additional compensation may not participate in the decision to award such compensation involving such Non-Employee Director.
Section 7.    Options. 
(a)    General. The grant of an Option shall be evidenced by an Award Document, containing such terms and conditions as the Administrator shall determine, in its discretion, which Award Document shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions regarding exercisability of the Option granted thereunder. Each Option shall be clearly identified in the applicable Award Document as either an Incentive Stock Option or a Nonqualified Stock Option. The provisions of each Option need 

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not be the same with respect to each Participant. More than one Option may be granted to the same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall be subject to the terms and conditions set forth in this Section 7 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable and set forth in the applicable Award Document.
(b)    Exercise Price. The Exercise Price of Shares purchasable under an Option shall be determined by the Administrator in its sole discretion at the time of grant, provided that the Exercise Price of an Option shall not be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of grant. If a Participant owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or of any Subsidiary and an Incentive Stock Option is granted to such Participant, the Exercise Price of such Incentive Stock Option (to the extent required at the time of grant by the Code) shall be no less than one hundred and ten percent (110%) of the Fair Market Value on the date such Incentive Stock Option is granted.
(c)    Option Term. The maximum term of each Option shall be fixed by the Administrator, but no Option shall be exercisable more than ten (10) years after the date such Option is granted, except that Incentive Stock Options granted to a Participant who owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or of any Subsidiary, shall not be exercisable more than five (5) years after the date such Option is granted. Each Option's term is subject to earlier expiration pursuant to the applicable provisions in the Plan and the Award Document. Notwithstanding the foregoing, the Administrator shall have the authority to accelerate the exercisability of any outstanding Option at such time and under such circumstances as the Administrator, in its sole discretion, deems appropriate.
(d)    Exercisability. Each Option shall be exercisable at such time or times and subject to such terms and conditions, including the attainment of performance objectives, as shall be determined by the Administrator in the applicable Award Document. The Administrator may also provide that any Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine in its sole discretion. Notwithstanding anything to the contrary contained herein, an Option may not be exercised for a fraction of a share.
(e)    Method of Exercise. Options may be exercised in whole or in part by giving written notice of exercise to the Company specifying the number of Shares to be purchased, accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, with respect to any Option or category of Options, payment in whole or in part may also be made (i) by means of consideration received under any cashless exercise procedure approved by the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii) in the form of unrestricted Shares already owned by the 

12

Participant which have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option shall be exercised, (iii) any other form of consideration approved by the Administrator and permitted by applicable law or (iv) any combination of the foregoing.
(f)    Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year under the Plan and any other stock option plan of the Company shall exceed $100,000, the portion of such Incentive Stock Options in excess of $100,000 shall be treated as Nonqualified Stock Options. Such Fair Market Value shall be determined as of the date on which each such Incentive Stock Option is granted. No Incentive Stock Option may be granted to an individual if, at the time of the proposed grant, such individual owns (or is deemed to own under the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Subsidiary unless (i) the Exercise Price of such Incentive Stock Option is at least one hundred and ten percent (110%) of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after the expiration of five years from the date such Incentive Stock Option is granted.
(g)    Rights as Stockholder. A Participant shall have no rights to dividends or any other rights of a stockholder with respect to the Shares subject to an Option until the Participant has given written notice of exercise, has paid in full for such Shares, has satisfied the requirements of Section 15 hereof and, if requested, has given the representation described in paragraph (b) of Section 16 hereof.
(h)    Transfers of Options. Except as otherwise determined by the Administrator, and in any event in the case of an Incentive Stock Option, no Option granted under the Plan shall be transferable by a Participant other than by will or the laws of descent and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Option may be exercised, during the lifetime of the Participant, only by the Participant or, during the period the Participant is under a legal disability, by the Participant's guardian or legal representative. The Administrator may, in its sole discretion, subject to applicable law, permit the gratuitous transfer during a Participant's lifetime of a Nonqualified Stock Option, (i) by gift to a member of the Participant's immediate family, (ii) by transfer by instrument to a trust for the benefit of such immediate family members, or (iii) to a partnership or limited liability company in which such family members are the only partners or members; provided, however, that, in addition to such other terms and conditions as the Administrator may determine in connection with any such transfer, no transferee may further assign, sell, hypothecate or otherwise transfer the transferred Option, in whole or in part, other than by will or by operation of the laws of descent and distribution. Each such transferee shall agree to be bound by the provisions of this Plan and the applicable Award Document.
(i)    Termination of Employment or Service. In the event of the termination of employment or service with the Company and all of its Affiliates of a Participant who has been 

13

granted one or more Options, such Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant.
(j)    Other Change in Employment or Service Status. An Option shall be affected, both with regard to vesting schedule and termination, by leaves of absence, changes from full-time to part-time employment, partial disability or other changes in the employment status of a Participant, in the discretion of the Administrator. The Administrator shall follow any applicable provisions and regulations with respect to the treatment of Incentive Stock Options and the written policies of the Company (if any), including such rules, guidelines and practices as may be adopted pursuant to Section 3 hereof, as they may be in effect from time to time, with regard to such matters.
Section 8.    Stock Appreciation Rights.
(a)    General. Stock Appreciation Rights may be granted either alone ("Free Standing Rights") or in conjunction with all or part of any Option granted under the Plan ("Related Rights"). In the case of a Nonqualified Stock Option, Related Rights may be granted either at or after the time of the grant of such Option. In the case of an Incentive Stock Option, Related Rights may be granted only at the time of the grant of such Option. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Stock Appreciation Rights shall be made, the number of Shares to be awarded, the price per share, and all other conditions of Stock Appreciation Rights. Notwithstanding the foregoing, no Related Right may be granted for more shares than are subject to the Option to which it relates and any Stock Appreciation Right must be granted with an Exercise Price not less than the Fair Market Value of a share of Common Stock on the date of grant. The provisions of Stock Appreciation Rights need not be the same with respect to each Participant. Stock Appreciation Rights granted under the Plan shall be subject to the following terms and conditions set forth in this Section 8 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable, as set forth in the applicable Award Document.
(b)    Rights as Stockholder. A Participant shall have no rights to dividends or any other rights of a stockholder with respect to the Shares subject to a Stock Appreciation Right until the Participant has exercised such Stock Appreciation Right, has satisfied the requirements of Section 15 hereof and, if requested, has given the representation described in paragraph (b) of Section 16 hereof.
(c)    Exercisability.
(1)    Free Standing Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant.
(2)    Related Rights shall be exercisable only at such time or times and to the extent that the Options to which they relate shall be exercisable in accordance with the provisions of Section 7 hereof and this Section 8; provided, however, that a Related Right granted in connection with an Incentive Stock Option shall be exercisable only if and when the 

14

Fair Market Value of the Shares subject to the Incentive Stock Option exceeds the Exercise Price of such Option.
(d)    Payment Upon Exercise.
(1)    Upon the exercise of a Free Standing Right, the Participant shall be entitled to receive up to, but not more than, that number of Shares equal in value to (i) the excess of the Fair Market Value of a share of Common Stock as of the date of exercise over the price per share specified in the Free Standing Right (which price shall be no less than one hundred (100%) of the Fair Market Value on the date of grant) multiplied by (ii) the number of Shares in respect of which the Free Standing Right is being exercised.
(2)    A Related Right may be exercised by a Participant by surrendering the applicable portion of the related Option. Upon such exercise and surrender, the Participant shall be entitled to receive up to, but not more than, that number of Shares equal in value to (i) the excess of the Fair Market Value as of the date of exercise over the Exercise Price specified in the related Option (which price shall be no less than one hundred percent (100%) of the Fair Market Value on the date of grant) multiplied by (ii) the number of Shares in respect of which the Related Right is being exercised. Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.
(3)    Notwithstanding the foregoing, the Administrator may determine to settle the exercise of a Stock Appreciation Right in cash or other property (or in any combination of Shares, cash or other property) to the extent that such settlement does not violate Section 409A of the Code.
(e)    Non-Transferability.
(1)    Free Standing Rights shall be transferable only when and to the extent that an Option would be transferable under Section 7 hereof.
(2)    Related Rights shall be transferable only when and to the extent that the underlying Option would be transferable under Section 7 hereof.
(f)    Termination of Employment or Service.
(1)    In the event of the termination of employment or service with the Company and all of its Affiliates of a Participant who has been granted one or more Free Standing Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant.
(2)    In the event of the termination of employment or service with the Company and all of its Affiliates of a Participant who has been granted one or more Related Rights, such Related Rights shall be exercisable at such time or times and subject to such terms and conditions as set forth in the related Options.

15

(g)    Term.
(1)    The term of each Free Standing Right shall be fixed by the Administrator, but no Free Standing Right shall be exercisable more than ten (10) years after the date such right is granted.
(2)    The term of each Related Right shall be the term of the Option to which it relates, but no Related Right shall be exercisable more than ten (10) years after the date such right is granted.
Section 9.    Restricted Shares and Restricted Stock Units.
(a)    General. Restricted Shares and Restricted Stock Units may be granted either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which Restricted Shares or Restricted Stock Units shall be awarded; the number of Restricted Shares or Restricted Stock Units to be awarded; the price, if any, to be paid by the Participant for the acquisition of Restricted Shares or Restricted Stock Units; the Restricted Period (as defined in paragraph (b) of this Section 9), if any, applicable to Restricted Shares or Restricted Stock Units; the performance objectives, including objectives based on one or more Performance Goals, if any, applicable to awards of Restricted Shares or Restricted Stock Units; and all other conditions of the Restricted Shares and Restricted Stock Units. If the restrictions, performance objectives and/or conditions established by the Administrator are not attained, a Participant shall forfeit his or her Restricted Shares or Restricted Stock Units. The provisions of the Restricted Shares or Restricted Stock Units need not be the same with respect to each Participant.
(b)    Restrictions and Conditions. Restricted Shares and Restricted Stock Units granted pursuant to this Section 9 shall be subject to the following restrictions and conditions and any additional restrictions or conditions as determined by the Administrator at the time of grant or thereafter:
(1)    Subject to the provisions of the Plan and the Restricted Shares Award Document or Restricted Stock Units Award Document, as appropriate, governing any such Award, during such period as may be set by the Administrator commencing on the date of grant (the "Restricted Period"), the Participant shall not be permitted to sell, transfer, pledge or assign Restricted Shares or Restricted Stock Units awarded under the Plan; provided, however, that the Administrator may, in its sole discretion, provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain performance objectives, the Participant's termination of employment or service with the Company and all of its Affiliates, or the Participant's death or Disability. Notwithstanding the foregoing, upon a Change in Control, the outstanding Awards shall be subject to Section 12 hereof.
(2)    Except as may be otherwise provided in a Restricted Share Award Document, the Participant shall have no right with respect to Restricted Shares to vote as a 

16

stockholder of the Company during the Restricted Period or to receive dividends which are declared with respect to Restricted Shares with a record date during the Restricted Period. Unless otherwise provided in the applicable Award Document, any Shares receivable with respect to the Restricted Shares pursuant to an equitable adjustment under Section 5 hereof in connection with a Change in Capitalization shall be subject to the same restrictions as the Restricted Shares. The Participant shall generally not have the rights of a stockholder with respect to Restricted Stock Units during the Restricted Period; provided, however, that, subject to the requirements of Section 409A of the Code, the Restricted Stock Units Award Document may provide the Participant with the right to receive dividend equivalent payments with respect to the Restricted Stock Units subject to the Award during the Restricted Period, provided that such dividend equivalent payments shall be made upon (and subject to) the delivery of the Shares, cash or other property, as applicable, in respect of the Restricted Stock Units. Unless otherwise provided in an Award Document, upon the vesting of any Restricted Stock Units, there shall be delivered to the Participant, as soon as practicable following the date on which such Restricted Stock Units vest (but in any event within such period as is required to avoid the imposition of a tax under Section 409A of the Code), the number of Shares, cash or other property, as applicable, payable in respect of the Restricted Stock Units becoming so vested. For the avoidance of doubt, any dividend or dividend equivalent awarded with respect to Restricted Shares,  Restricted Stock Units or any other Award granted hereunder shall be subject to the same restrictions, conditions and risks of forfeiture as the underlying Restricted Stock, Restricted Stock Units or other Award.
(c)    Termination of Employment or Service. The rights of Participants granted Restricted Shares or Restricted Stock Units upon termination of employment or service with the Company and all of its Affiliates for any reason during the Restricted Period shall be set forth in the Award Document.
Section 10.    Other Stock-Based Awards.
The Administrator is authorized to grant Awards to Participants in the form of Other Stock-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan and as evidenced by an Award Document. The Administrator shall determine the terms and conditions of such Awards, consistent with the terms of the Plan, at the date of grant or thereafter, including any performance objectives (including objectives based on one or more of the Performance Goals) and performance periods. Common Stock or other securities or property delivered pursuant to an Award in the nature of a purchase right granted under this Section 10 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, Shares, other Awards, notes or other property, as the Administrator shall determine, subject to any required corporate action. Any dividend or dividend equivalent awarded pursuant to this Section shall be subject to the same restrictions, conditions and risks of forfeiture as the underlying Awards and shall only become payable if (and to the extent) the underlying Awards vest. 
Section 11.    Performance Awards.
(a)    General. The Administrator shall have sole and complete authority to determine the Participants who shall receive a Performance Award, which shall consist of a right 

17

that is (i) denominated in cash or Common Stock, (ii) valued, as determined by the Administrator, in accordance with, or subject to, the achievement of such performance objectives, including objectives based on one or more of the Performance Goals, during such performance periods as the Administrator shall establish, and (iii) payable at such time and in such form as the Administrator shall determine. All Performance Awards shall be subject to the terms and provisions of this Section 11.
(b)    Restrictions and Conditions. Subject to the terms of this Plan and any applicable Award Document, the Administrator shall determine the performance objectives to be achieved during any performance period, the length of any performance period, the amount of any Performance Award and the amount and kind of any payment or transfer to be made pursuant to any Performance Award, and may amend specific provisions of the Performance Award; provided, however, that such amendment may not adversely affect existing Performance Awards made within a performance period commencing prior to implementation of the amendment.
(c)    Payment of Performance Awards. Performance Awards may be paid in a lump sum or in installments following the close of the performance period or, in accordance with the procedures established by the Administrator, on a deferred basis. Termination of employment or service prior to the end of any performance period will result in the forfeiture of the Performance Award for that period, and no payments will be made with respect to that period, except that the Administrator at or after grant may provide that certain Performance Awards may be paid upon certain terminations of the Participant's employment or service with the Company. A participant's rights to any Performance Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of in any manner, except by will or the laws of descent and distribution, and/or except as the Administrator may determine at or after grant.
Section 12.    Change in Control Provisions.
Unless otherwise evidenced in an Award Document, in the event that (i) a Change in Control occurs and (ii) either (x) an outstanding Award is not assumed or substituted in connection therewith or (y) an outstanding Award is assumed or substituted in connection therewith and the Participant's employment or service is terminated by the Company, its successor or any of its Affiliates without Cause on or after the effective date of the Change in Control but prior to twelve (12) months following such Change in Control, then:  
(a)    any unvested or unexercisable portion of any Award carrying a right to exercise shall become vested and exercisable; and
(b)    the restrictions, deferral limitations, payment conditions and forfeiture conditions applicable to any other Award granted under the Plan shall lapse and such Awards shall be deemed fully vested, and performance conditions imposed with respect to any such Awards that are performance-based shall be deemed to be fully achieved at target performance levels.
For purposes of this Section 12, an outstanding Award shall be considered to be assumed or substituted if, following the Change in Control, the Award remains subject to the 

18

same terms and conditions that were applicable to the Award immediately prior to the Change in Control except that, if the Award related to Shares, the Award instead confers the right to receive common stock of the acquiring entity (or such other security or entity as may be determined by the Administrator, in its sole discretion, pursuant to Section 5 hereof).
Section 13.    Amendment and Termination.
The Board may amend, alter or terminate the Plan, but no amendment, alteration, or termination shall be made that would impair the rights of a Participant under any Award theretofore granted without such Participant's consent. Unless the Board determines otherwise, the Board shall obtain approval of the Company's stockholders for any amendment that would require such approval in order to satisfy the requirements of Section 422 of the Code, any rules of the stock exchange on which the Common Stock is traded or other applicable law. If any Award is subject to Section 409A of the Code and fails to comply with the requirements of Section 409A of the Code, the Administrator reserves the right to (but is not obligated to) amend, modify or supplement such Award in order to cause it to either (i) not be subject to Section 409A of the Code or (ii) comply with the applicable provisions of Section 409A of the Code. The Administrator may amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Section 5 hereof, no such amendment shall impair the rights of any Participant without his or her consent.
Section 14.    Unfunded Status of Plan.
The Plan is intended to constitute an "unfunded" plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.
Section 15.    Withholding Taxes.
Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of the Participant for purposes of applicable taxes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, an amount in respect of such taxes up to the maximum statutory rates in the Participant’s applicable jurisdiction with respect to the Award, as determined by the Company. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. Whenever cash is to be paid pursuant to an Award granted hereunder, the Company shall have the right to deduct therefrom an amount sufficient to satisfy any applicable withholding tax requirements related thereto, as determined by the Company. Whenever Shares or property other than cash are to be delivered pursuant to an Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy any applicable withholding tax requirements related thereto as determined by the Company; provided, that, with the approval of the Administrator, a Participant may satisfy the foregoing requirement by either (i) electing to have the Company withhold from delivery of Shares or other property, as applicable or (ii) by 

19

delivering already owned unrestricted shares of Common Stock, in each case, having a value not exceeding the applicable taxes to be withheld and applied to the tax obligations, as determined by the Company. Such shares shall be valued at their Fair Market Value on the date as of which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such an election may be made with respect to all or any portion of the Shares to be delivered pursuant to an Award. The Company may also use any other method of obtaining the necessary payment or proceeds, as permitted by law, to satisfy its withholding obligation with respect to any Award as determined by the Company.   
Section 16.    General Provisions.
(a)    Shares shall not be issued pursuant to the exercise of any Option granted hereunder unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of any stock exchange upon which the Common Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.
(b)    The Administrator may require each person acquiring Shares to represent to and agree with the Company in writing that such person is acquiring the Shares without a view to distribution thereof. The certificates for such Shares may include any legend that the Administrator deems appropriate to reflect any restrictions on transfer which the Administrator determines, in its sole discretion, arise under applicable securities laws or are otherwise applicable.
(c)    All certificates for Shares delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock may then be listed, and any applicable federal or state securities law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.
(d)    The Administrator may require a Participant receiving Shares pursuant to the Plan, as a condition precedent to receipt of such Shares, to enter into a stockholder agreement or "lock-up" agreement in such form as the Administrator shall determine is necessary or desirable to further the Company's interests.
(e)    Neither the adoption of the Plan nor the grant of an Award hereunder shall confer upon any Eligible Recipient any right to continued employment or service with the Company or any of its Subsidiaries, as the case may be, nor shall it interfere in any way with the right of the Company or any of its Subsidiaries to terminate the employment or service of any of its Eligible Recipients at any time.
(f)    Notwithstanding anything in this Plan to the contrary, any Options, Stock Appreciation Rights, Restricted Shares, Restricted Stock Units, unrestricted Shares, Performance Awards or Other Stock-Based Awards granted under the Plan (other than such Awards 

20

representing a maximum of five percent (5%) of the shares of Common Stock reserved for issuance under the Plan pursuant to Section 4(a) hereof) shall be granted subject to a minimum vesting period of at least twelve (12) months, such that no such Awards shall vest pursuant to their stated ordinary course vesting terms prior to the first anniversary of the applicable grant date.
Section 17.    Effective Date.
The Plan was originally adopted and approved by the Board on June 5, 2014 (the "Effective Date") and was approved by stockholders of the Company on July 7, 2014. The first amendment and restatement of the Plan was adopted and approved by the Board on August 3, 2017 and became effective upon receipt of stockholder approval at the 2017 Annual Meeting of Stockholders, and was subsequently amended on February 11, 2019. The current amendment and restatement of the Plan was adopted and approved by the Board on September 16, 2019 and shall become effective upon and subject to receipt of stockholder approval at the 2019 Annual Meeting of Stockholders; provided that, for the avoidance of doubt, no portion of such amendment and restatement shall apply to the extent necessary and desirable to maintain the qualification of previously granted Awards as "performance-based compensation" under Section 162(m) of the Code.
Section 18.    Term of Plan.
No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the 2019 Annual Meeting of Stockholders, but Awards theretofore granted may extend beyond that date.
Section 19.    Notification of Election Under Section 83(b) of the Code.
Unless otherwise provided in an Award Document, if any Participant shall, in connection with the acquisition of shares of Common Stock under the Plan, make the election permitted under Section 83(b) of the Code, such Participant shall notify the Company of such election within ten (10) days after filing notice of the election with the Internal Revenue Service. Notwithstanding anything in any Award Document to the contrary, it shall be the Participant’s sole responsibility, and not the Company’s, to file a timely election under Section 83(b) of the Code, even if the Participant requests the Company’s or its representative’s assistance in making such filing on the Participant's behalf. By accepting any Award granted hereunder, each Participant acknowledges that the tax laws and regulations applicable to grants of Awards and the disposition of shares of Common Stock relating to such Awards are complex and subject to change, and it is the sole responsibility of the Participant to obtain his or her own advice as to the tax treatment of the terms of the applicable Award Document.
Section 20.    No Fractional Shares.
No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Administrator shall determine whether cash, other Awards, or other property shall be 

21

issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.
Section 21.    Paperless Administration.
In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Participant may be permitted through the use of such an automated system.
Section 22.    Severability.
If any provision of the Plan is held to be invalid or unenforceable, the other provisions of the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan.   
Section 23.    Clawback.
Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).  
Section 24.    Section 409A.
The Plan as well as payments and benefits under the Plan are intended to be exempt from, or to the extent subject thereto, to comply with Section 409A of the Code, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted in accordance therewith. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Participant shall not be considered to have terminated employment or service with the Company for purposes of the Plan and no payment shall be due to the Participant under the Plan or any Award until the Participant would be considered to have incurred a "separation from service" from the Company and its Affiliates within the meaning of Section 409A of the Code. Any payments described in the Plan that are due within the "short term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent that any Awards (or any other amounts payable under any plan, program or arrangement of the Company or any of its Affiliates) are payable upon a separation from service and such payment would result in the imposition of any individual tax and penalty interest charges imposed under Section 409A of the Code, the settlement and payment of such Awards (or other amounts) shall instead be made on the first business day after the date that is six (6) months following such separation from service (or death, if earlier). Each amount to be paid or benefit to be provided under this 

22

Plan shall be construed as a separate identified payment for purposes of Section 409A of the Code. The Company makes no representation that any or all of the payments or benefits described in this Plan will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment. The Participant shall be solely responsible for the payment of any taxes and penalties incurred under Section 409A of the Code.
Section 25.    Governing Law.
The Plan shall be governed by and construed according to the law of the State of Delaware without regard to its principles of conflict of laws.
Section 26.    Titles and Headings.
The titles and headings of the sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.
Section 27.     Successors.
The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.
Section 28.    Relationship to other Benefits.
No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare, or other benefit plan of the Company or any Affiliate except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder. 

23Exhibit 4.1

 

INX LIMITED

INX TOKEN PURCHASE AGREEMENT

 

 

 

NOTICE:

 

THE TERMS OF THIS AGREEMENT FORM A BINDING
LEGAL CONTRACT BETWEEN YOU AND INX LIMITED (THE “COMPANY”). CAREFULLY READ ALL OF THE TERMS OF THIS AGREEMENT
BEFORE CLICKING THE “I AGREE” BUTTON. BY CLICKING THE “I AGREE” BUTTON YOU ACKNOWLEDGE YOUR CONSENT AND
AGREEMENT TO ALL THE TERMS AND CONDITIONS SET FORTH IN THIS AGREEMENT. IF YOU DO NOT AGREE TO ALL THE TERMS OF THIS AGREEMENT,
DO NOT CLICK “I AGREE.” IF YOU HAVE ANY QUESTIONS REGARDING THE EFFECT OF THE TERMS AND CONDITIONS IN THIS AGREEMENT,
YOU ARE ADVISED TO CONSULT INDEPENDENT LEGAL COUNSEL.

 

THE COMPANY MAY NOT BE OFFERING THE
SECURITIES IN EVERY STATE. THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH
THE SECURITIES ARE NOT BEING OFFERED OR IN ANY STATE OR JURISDICTION IN WHICH AN OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN
WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO.

 

 

 

SUMMARY

 

Review this INX
Token Purchase Agreement following your completion of certain questions on our online website
platform [__________] (the “Purchasing Site”). If your responses remain accurate and correct, sign this
completed agreement using electronic signature.

 

Except
as otherwise required by law, subscriptions may not be withdrawn or cancelled by subscribers.

 

Purchase Price (USD):
[____] (minimum amount: $1000)

 

Purchase Price (BTC):
[____] (BTC/USD Exchange Rate: [____])

 

Purchase Price (ETH):
[____] (ETH /USD Exchange Rate: [____]))

 

Number of INX Tokens
(Purchased Tokens):[____]

 

* INX Tokens are being
purchased, sold and transferred in fractional divisions up to five decimal places (0.00001). Sales of INX Tokens by the Company
that would otherwise result in fractional divisions of more than five decimal places have been rounded down.

 

    1

     

    

 

PREAMBLE

 

This Token Purchase
Agreement (this “Agreement”) contains the terms and conditions that govern your purchase of the INX Tokens,
an ERC20 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain (the “Tokens”
or “INX Tokens”) and it defines your rights and obligations with respect to the purchased Tokens. This is an
agreement between you (“Purchaser” or “you”) and INX Limited, a Gibraltar private company
limited by shares (the “Company”). Purchaser and the Company are herein referred to individually as a “Party”
and collectively as the “Parties.”

 

WHEREAS, the Company
is engaged in an initial public offering of Tokens (the “Offering”) and, in connection therewith, has determined
to issue and deliver up to 130,000,000 Tokens to public investors in the Offering; and

 

WHEREAS, Purchaser
desires to purchase from the Company, and the Company desires to issue and sell to Purchaser, Tokens in an amount and for the consideration
set forth on Exhibit A attached hereto.

 

WHEREAS, the Offering,
including the sale of the Tokens to Purchaser under this Agreement, shall be registered under the Securities Act of 1933, as amended,
and the rules and regulations thereunder (collectively, the “Securities Act”). A registration statement on Form
F-1 (File No. 333------------), including a related preliminary prospectus dated [------------], 2019, relating to the Offering
has been prepared and filed by the Company with the Securities and Exchange Commission (“Commission”) in conformity
with the requirements of the Securities Act. Such registration statement (as amended, if applicable) at the time it becomes effective
and the prospectus relating to the Offering included in the Registration Statement (in each case, including the information, if
any, deemed to be part thereof pursuant to Rule 430A(b)), as from time to time amended or supplemented, are hereinafter referred
to as the “Registration Statement” and the “Prospectus,” respectively.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1. 
Purchase of Tokens.

 

1.1 
Issuance and Sale of Tokens; Purchase Price.

 

(a) 
Subject to the terms and conditions set forth herein, Purchaser, intending to be legally bound, hereby irrevocably agrees
to purchase from the Company the number of Tokens set forth on Exhibit A attached hereto, (the “Purchased Tokens”)
for the purchase price set forth on Exhibit A (the “Purchase Price) all in accordance with the terms and conditions
of this Agreement. The Purchase Price shall reflect a purchase price per Token of USD$[____]. Exhibit A shall also reflect
the Purchase Price in bitcoin (BTC) and ether (ETH) as well as the applicable BTC/USD and ETH/USD exchange rates.

 

(b) 
This Agreement shall be an effective and binding commitment (the “Commitment”) of Purchaser when Purchaser
has entered the amount of Tokens Purchaser desires to purchase at the Purchase Price, clicks the check box and the “I AGREE”
button on the Purchasing Site to indicate that Purchaser has read, acknowledges and agrees to the terms of this Agreement, executes
this Agreement and submits this Agreement to the Company. Purchaser agrees to be bound on this basis, and confirms that Purchaser
has read in full and acknowledges this Agreement and the terms on which Purchaser is bound.

 

    2

     

    

 

(c) 
Purchaser acknowledges and agrees that this agreement to purchase cannot be withdrawn, terminated, or revoked. This agreement
to purchase shall be binding on the heirs, executors, administrators, successors and assigns of Purchaser. This agreement to purchase
is not transferable or assignable by Purchaser, except as expressly provided in the terms and conditions of this Agreement.

 

(d) 
The Company has provided specific procedures on how Purchaser may seek to purchase Tokens through the Purchasing Site. By
purchasing Tokens, Purchaser acknowledges, agrees to, and has no objection to such procedures and specifications. Purchaser further
acknowledges and agrees that failure to properly use the Purchasing Site and follow such procedures, including the submission of
all required documentation, may result in a rejection of Purchaser’s agreement to purchase and Purchaser not receiving any
Tokens. Unauthorized access or use of the Purchasing Site or the receipt or purchase of Tokens in the Offering through any other
means are not sanctioned or agreed to in any way by the Company. Purchaser should take great care to verify the accuracy of the
universal resource locator for the Purchasing Site used to purchase Tokens.

 

(e) 
Upon the basis of the representations and warranties, and subject to the terms and conditions, set forth herein, the Company
agrees to issue and sell the Purchased Tokens to Purchaser on the Closing (as defined below) for the Purchase Price.

 

(f) 
The Company intends to allocate and sell Tokens in accordance with the terms of the Prospectus. The Company plans to enter
into purchase agreements with other investors, providing for the sale of Tokens to such other investors, and such purchase agreements
will be separate but substantially similar to this Agreement. Each of the purchase agreements is a separate agreement.

 

1.2 
Payment of the Purchase Price. Upon execution of this Agreement, Purchaser authorizes: (a) Metropolitan Commercial
Bank, a New York State-chartered bank (the “Escrow Agent”) as escrow agent for the Offering, to request the
Purchase Price from Purchaser’s bank (details of which are set out in the “Payment Details” section on Exhibit
A attached hereto) to be deposited in the escrow account; (b) if the Company has received committed purchases equal to or exceeding
the Minimum Offering Amount (as defined below), (i) the transfer of funds in an amount equal to the Purchase Price from Purchaser’s
bank account into the Company’s bank account or (ii) the transfer of bitcoin (BTC) and ether (ETH) in an amount equal to
the Purchase Price from Purchaser’s digital wallet into the Company’s digital wallet. Prior to the Company receiving
committed purchases equal to or exceeding the Minimum Offering Amount, the Company shall cause the Escrow Agent to maintain all
such funds for Purchaser’s benefit in a segregated non-interest-bearing account until the earliest to occur of: (x) the Closing,
(y) the rejection of this Agreement (in accordance with Section 1.4 hereof) or (z) the termination of the Offering by the
Company in its sole discretion.

 

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1.3 
Termination of Offering or Rejection of Token Purchase Agreement.

 

(a) 
In the event that (i) the Company does not effect the Closing on or before the date which is one year from the Offering
being qualified by the U.S. Securities and Exchange Commission (the “SEC”), (ii) the Company receives Purchaser’s
purchase request after the maximum number of Tokens in the Offering (130,000,000) has been sold, or (iii) the Offering is terminated
by the Company in its sole discretion, the Company will cause its payment services provider or the Escrow Agent, as applicable,
to refund promptly the Purchase Price paid by Purchaser, without deduction, offset or interest accrued thereon and this Agreement
shall thereafter be of no further force or effect.

 

(b) 
Purchaser acknowledges and agrees that the Company, in its sole discretion, reserves the right to accept or reject this
or any other agreement to purchase INX Tokens, in whole or in part, and for any reason or no reason, notwithstanding prior receipt
by Purchaser of notice of acceptance of this Agreement. If the Company rejects a subscription, either in whole or in part (which
decision is in its sole discretion), the Company shall cause its payment services provider or the Escrow Agent, as applicable,
to return promptly the rejected Purchase Price or the rejected portion thereof to Purchaser without deduction, offset or interest
accrued thereon. If this offer is rejected in whole this Agreement shall thereafter be of no further force or effect. If this offer
is rejected in part, this Agreement will continue in full force and effect to the extent this subscription was accepted.

 

1.4 
Acceptance of Subscription.

 

(a) 
Upon the consummation of the purchase and sale of the Purchased Tokens and the other transactions contemplated hereby (the
“Closing”), if the Company accepts this Agreement in whole or in part, the Company shall execute and deliver
to Purchaser a counterpart executed copy of this Agreement and cause the Escrow Agent to release the Purchase Price (or applicable
portion thereof if such subscription is only accepted in part) to the Company. The Closing shall take place at the offices of the
Company, on a date to be determined by the Company in its sole discretion (the “Closing Date”). The Closing
shall occur no earlier than the date that the Company has received commitments from all purchasers in the aggregate of not less
than $5,000,000 (the “Minimum Offering Amount”).

 

(b) 
At the Closing, subject to the terms hereof, the Company shall deliver to Purchaser’s Ethereum wallet (details
of which are set out in the “Digital Wallet” section on Exhibit A herein) the number of Tokens equal to the
Purchased Tokens. Purchaser acknowledges and agrees that the sale of Tokens pursuant to this Agreement is made subject to the condition
that the Tokens to be issued and delivered on account of this Agreement will be issued only in the name of and delivered only to
Purchaser.

 

(c) 
The Company shall have no obligation hereunder until (a) Purchaser has executed and delivered to the Company this Agreement
and a substitute Form W-9 (if applicable); (b) Purchaser has deposited the Purchase Price in accordance with this Agreement; (c)
the Company has executed and delivered to Purchaser an executed copy of this Agreement; and (d) all other conditions to Closing
have been satisfied and the Closing has occurred.

 

    4

     

    

 

(d) 
In the event that the Closing does not take place for any reason with respect to all or some of the Tokens, the Company
shall be deemed to have rejected this subscription, either in whole or in part, in accordance with Section 1.3(b) hereof
and the Company shall cause its payment services provider or the Escrow Agent, as applicable, to return promptly the rejected Purchase
Price or the rejected portion thereof to Purchaser without deduction, offset or interest accrued thereon.

 

1.5 
Rights as Holder of Tokens. Purchaser acknowledges and agrees that upon and after the Closing the Tokens shall have
only such rights and attributes as are expressly set forth on Exhibit B, subject to the terms thereof, including but not
limited to each of the restrictions and conditions described on Exhibit B.

 

1.6 
No Claim, Loan or Ownership Interest. Except as otherwise expressly set forth herein, the purchase of Tokens: (a)
does not provide Purchaser with rights of any form with respect to the Company or its revenues or assets, including, without limitation,
any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property) or other financial
or legal rights; (b) is not a loan to Company; and (c) does not provide Purchaser with any ownership, equity, or other interest
in the Company.

 

1.7 
Intellectual Property. Purchaser acknowledges and agrees that the Company retains all right, title and interest in
all of the Company’s intellectual property contained in the Tokens, including, without limitation, inventions, ideas, concepts,
code, discoveries, processes, marks, methods, software, compositions, formulae, techniques, information and data, whether or not
patentable, copyrightable or protectable in trademark, and any trademarks, copyright or patents based thereon. Purchaser agrees
not to use, reverse engineer, modify, or alter any of the Company’s intellectual property for any reason without the Company’s
prior written consent.

 

2. 
Representations and Warranties of Purchaser.

 

In connection with
the issuance and sale of the Tokens hereunder, Purchaser hereby represents and warrants to the Company that on the date hereof
and as of the Closing Date:

 

2.1 
Risk Factors. Purchaser is aware that an investment in the Tokens involves a significant degree of risk, and has
received the Prospectus and, in particular, the “Risk Factors” section therein. Purchaser acknowledges that no representations
or warranties have been made to it or to its advisors or representatives with respect to the business or prospects of the Company
or its financial condition other than as provided in the Prospectus.

 

2.2 
Investor Certification. Purchaser has submitted the Investor Certification (attached as Exhibit C attached
hereto) and confirms that all of the information included in the Investor Certification, as well as all other information furnished
by Purchaser in connection with the purchase of Tokens, including any and all verification forms, certifications and “know
your customer” documentation, are true and correct and complete in all respects as of the date of the Closing, and do not
contain any misstatements of fact or omit any fact necessary to make the statements contained therein not misleading, inaccurate
or otherwise untrue. Purchaser acknowledges that the Company enters into this Agreement and agrees to sell to Purchaser the Purchased
Tokens in reliance on the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings
made by Purchaser as set forth in this Agreement and in the Investor Certification. Purchaser agrees to promptly provide the Company
and its respective agents with such other information as may be reasonably necessary for them to confirm the information provided
in this Agreement and the Investor Certification.

 

    5

     

    

 

2.3 
Authorization. Purchaser has all requisite power and authority to execute and deliver this Agreement, to purchase
the Purchased Tokens, and to carry out and perform its obligations under this Agreement. All action on Purchaser’s part required
for the lawful execution and delivery of this Agreement and other agreements required hereunder have been or will be effectively
taken prior to the Closing Date. This Agreement has been duly executed by Purchaser. The Agreement constitutes a legal, valid and
binding obligation of Purchaser enforceable against Purchaser in accordance with its terms, except that such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to
or affecting creditors’ rights generally and by equitable principles (regardless of whether enforcement is sought in a proceeding
in equity or at law). If an individual, Purchaser is at least eighteen (18) years old and of sufficient legal age and capacity
to enter into this Agreement. If a legal entity, Purchaser is duly organized, validly existing and in good standing under the Laws
of its domiciliary jurisdiction and each jurisdiction where it conducts business.

 

2.4 
No Conflicts. The execution, delivery and performance of this Agreement will not result in (a) any violation of,
be in conflict with or constitute a material default under, with or without the passage of time or the giving of notice of, (i)
any provision of Purchaser’s organizational documents, if applicable; (ii) any provision of any judgment, decree or order
to which Purchaser is a party, by which it is bound, or to which any of its assets are subject; (iii) any agreement, obligation,
duty or commitment to which Purchaser is a party or by which it is bound; or (iv) any laws, statutes, ordinances, rules, regulations,
judgments, injunctions, administrative interpretations, orders and decrees of any Governmental Authority, including amendments
thereto (collectively, “Laws”); or (b) the creation of any lien, charge or encumbrance upon any assets of Purchaser.
“Governmental Authority” shall mean any nation or government, any state or other political subdivision thereof,
any entity exercising legislative, executive, judicial or administrative functions of or pertaining to government, including without
limitation any government authority, agency, department, board, commission or instrumentality and any court, tribunal or arbitrator(s)
of competent jurisdiction and any self-regulatory organization. For the avoidance of doubt, Governmental Authority may include
private bodies exercising quasi-governmental, regulatory or judicial-like functions to the extent they relate to either Parties
or the Tokens.

 

2.5 
No Consents or Approvals. The execution and delivery of and performance under this Agreement require no approval
or other action from any Governmental Authority or person or entity other than the Company, except for such consents, approvals,
authorizations, orders, filings, registrations or qualifications as (a) have already been obtained or made and are still in full
force and effect, (b) may be required by FINRA, (c) may be required by the Gibraltar Financial Services Commission, and (d) may
be required under applicable state securities Laws in connection with the purchase, distribution and resale of Tokens.

 

2.6 
Suitability, Experience, and Ability to Bear Risk.

 

(a) 
Purchaser is aware that certain U.S. states have established suitability standards for purchasers in the Offering and subsequent
purchasers of INX Tokens. Purchaser has received the Prospectus and, in particular, the “Suitability Standards” section
therein. Purchaser meets all applicable suitability standards listed in the “Suitability Standards” section of the
Prospectus.

 

    6

     

    

 

(b) 
Purchaser has sufficient knowledge and experience in business, technology, financial, securities, and securities investments
matters, including a sufficient understanding of blockchain or cryptographic tokens and other digital assets, smart contracts,
storage mechanisms (such as digital or token wallets), blockchain-based software systems and blockchain technology, to be able
to evaluate the risks and merits of Purchaser’s purchase of Tokens using a digital wallet, including but not limited to the
matters set forth in the Prospectus and this Agreement, and is able to bear the risks thereof, including loss of all amounts paid,
loss of Tokens and liability to the Company and others for its acts and omissions, including without limitation those constituting
a breach of this Agreement, negligence, fraud or willful misconduct. Purchaser’s financial situation is such that Purchaser
can afford to bear the economic risk of holding Tokens for an indefinite period of time, and Purchaser can afford to suffer the
complete loss of the Purchase Price and Tokens.

 

(c) 
Purchaser has obtained sufficient information in order to make an informed decision to purchase Tokens. Purchaser is not
relying on the Company or any of its owners, directors, officers, counsel, employees, agents or representatives for legal, investment
or tax advice. Purchaser represents that to the extent that Purchaser has any questions with respect to the purchase of Tokens,
Purchaser has sought professional advice. Purchaser has sought independent legal, investment and tax advice to the extent that
Purchaser has deemed necessary or appropriate in connection with Purchaser’s decision to purchase Tokens described herein.

 

2.7 
Company Information/Opportunity to Investigate. Purchaser, in making the decision
to purchase the Tokens, has relied upon an independent investigation of the Company and has not relied upon any information or
representations made by any third parties or upon any oral or written representations or assurances from the Company, its owners,
directors, officers, employees, agents, or any other representatives of the Company, other than as expressly set forth in this
Agreement, the Registration Statement, and the Prospectus. 

 

2.8 
Purchasing Site.

 

(a) 
Purchaser acknowledges that the Company has established Terms of Use for the Purchasing Site, which Terms of Use may be
amended from time to time. Purchaser has read and has complied with and agrees to continue to comply with the Terms of Use for
the Purchasing Site. Purchaser has verified the accuracy of the universal resource locator for the Purchasing Site used to purchase
Tokens.

 

(b) 
Purchaser acknowledges that Purchaser shall be solely responsible for inputting and transmitting all required documentation
correctly and accurately.

 

(c) 
Purchaser acknowledges access to the Purchasing Site may be limited, unavailable or interrupted at any time, including,
but not limited to, during periods of peak demand, market volatility, system upgrades, maintenance, or during any other events
impacting Purchaser, Company or third party providers providing systems or services necessary for the Purchasing Site to be available
and that the Company will not be liable, and Purchaser will not attempt to hold the Company liable, for any losses arising out
of or relating to any inaccuracies, duplications or errors in any purchase placed on the Purchasing Site or resulting transactions.

 

    7

     

    

 

2.9 
Sanctions Compliance; Anti-Money Laundering; Funds and Payments.

 

(a) 
Sanctions Compliance. Neither Purchaser, nor any person having a direct or indirect beneficial interest in Purchaser
or Tokens being acquired by Purchaser, or any person for whom Purchaser is acting as agent or nominee in connection with Tokens,
has been or is (i) the subject of sanctions administered or enforced by the United States (including without limitation the U.S.
Department of the Treasury’s Office of Foreign Asset Control), the United Kingdom, the European Union or any other Governmental
Authority (collectively, “Sanctions”), (ii) organized or resident in a country or territory that is the subject
of country-wide or territory-wide Sanctions, or (iii) otherwise a party with which the Company is prohibited from dealing with
under applicable Laws.

 

(b) 
Anti-money Laundering; Counter-Terrorism Financing. To the extent required by applicable Laws, Purchaser has complied
and will continue to comply with all anti-money laundering and counter-terrorism financing requirements.

 

(c) 
Funds and Payments. The funds, including any fiat, virtual currency or cryptocurrency, Purchaser uses to purchase
Tokens are not derived from or related to any unlawful activities, including but not limited to money laundering or terrorist financing,
and Purchaser will not use, or permit the use of, Tokens to finance, engage in or otherwise support any unlawful activities. All
payments by or on behalf of Purchaser under this Agreement will be made only in Purchaser’s name, from a digital wallet or
bank account not located in a country or territory that has been designated as a “non-cooperative country or territory”
by the Financial Action Task Force, and is not a “foreign shell bank” within the meaning of the U.S. Bank Secrecy Act
(31 U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the Financial Crimes Enforcement
Network, as such regulations may be amended from time to time.

 

2.10 
No Brokerage Fees. No broker, finder or financial advisor has acted for Purchaser in connection with this Agreement
or the transactions contemplated hereby, and no broker, finder or financial advisor is entitled to any broker’s, finder’s
or financial advisor’s fee or other commission in respect thereof based in any way on any contract or arrangement with Purchaser.

 

2.11 
Foreign Purchasers. If Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal
Revenue Code of 1986, as amended), Purchaser hereby represents that it has satisfied itself as to the full observance of the Laws
of Purchaser’s jurisdiction in connection with any invitation to subscribe for the Tokens or any use of this Agreement, including
(a) the legal requirements within Purchaser’s jurisdiction for the purchase of the Tokens, (b) any foreign exchange
restrictions applicable to such purchase and the other transactions contemplated hereby, (c) any governmental or other consents
that may need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale, or transfer of the Tokens. Purchaser’s subscription and payment for and continued beneficial ownership
of the Tokens will not violate any applicable securities or other Laws of Purchaser’s jurisdiction.

 

    8

     

    

 

3. 
Representations and Warranties of the Company.

 

In connection with
the issuance and sale of the Tokens hereunder, the Company hereby represents and warrants to Purchaser that as of the date hereof
and as of the Closing Date:

 

3.1 
Corporate Status. The Company is a private company limited by shares duly organized, validly existing and in good
standing under the Laws of Gibraltar and has all requisite corporate power and authority to carry on its business as now conducted
as described in the Prospectus.

 

3.2 
Foreign Private Issuer and Emerging Growth Company. The Company is a “foreign private issuer” within
the meaning of Rule 405 under the Securities Act and eligible to register the offer and sale of Tokens on Form F-1 adopted by
the Commission. From the time of the initial confidential submission of the Registration Statement relating to the Tokens to the
Commission through the date hereof, the Company has been and is an Emerging Growth Company within the meaning of Rule 12b-2 under
the Securities Exchange Act of 1934.

 

3.3 
Company Power and Authority. The Company has all requisite power and authority to execute and deliver this Agreement
and sell Tokens to Purchaser and to carry out and perform its obligations under this Agreement, in each case subject to the terms
hereof. The Agreement constitutes a legal, valid and binding obligation of the Company enforceable against Company in accordance
with its terms.

 

3.4 
Authorization. This Agreement has been duly executed and delivered by the Company, and, upon the Closing, the Tokens
will have been validly issued to Purchaser in accordance with the terms hereof. This Agreement constitutes the legal, valid and
binding obligation of the Company, enforceable against the Company in accordance with its terms (except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights
generally and by general principles of equity (whether considered in a proceeding at law or equity)).

 

3.5 
Registration Statement and Prospectus. The Company has prepared and filed the Registration Statement with the Commission
under the Securities Act, and, prior to the Closing Date, the Commission shall have declared the Registration Statement effective
under the Securities Act. None of the Registration Statement, the Prospectus or any amendment or supplement thereto filed on or
prior to the Closing Date included or will include any untrue statement of a material fact or omitted or will omit to state a material
fact, in the case of the Registration Statement or any amendment or supplement thereto, required to be stated therein, and, in
the case of the Prospectus or any amendment or supplement thereto, necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

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3.6 
Token Issuances. The INX Tokens shall be designated as “INX Tokens.” The number of authorized INX Tokens
is 200,000,000 of which up to 130,000,000 are being offered for sale in the Offering. Upon issuance pursuant to this Agreement,
the Purchased Tokens will be validly issued, fully paid and non-assessable and free of preemptive rights.

 

3.7 
No Conflict. The execution, delivery and performance of this Agreement will not result in: (a) any violation of,
be in conflict with in any material respect, or constitute a material default under, with or without the passage of time or the
giving of notice (i) any provision of the Company’s Memorandum and Articles of Association, (ii) any provision of any judgment,
decree or order to which the Company is a party, by which it is bound, or to which any of its material assets are subject, (iii)
any material contract, obligation or commitment to which the Company is a party or by which it is bound, or (iv) any applicable
Laws; or (b) the creation of any material lien, charge or encumbrance upon any material assets of the Company.

 

3.8 
No Consents or Approvals. The execution and delivery of and performance under this Agreement require no approval
or other action from any Governmental Authority or person or entity other than the Company, except for such consents, approvals,
authorizations, orders, filings, registrations or qualifications as (a) have already been obtained or made and are still in full
force and effect, (b) may be required by FINRA, (c) may be required by the Gibraltar Financial Services Commission and (d) may
be required under applicable state securities Laws in connection with the purchase, distribution and resale of Tokens.

 

3.9 
No Other Disclosure Materials.  Other than the Registration Statement and Prospectus, the Company has not, directly
or indirectly, distributed, prepared, used, authorized, approved or referred to, and will not distribute, prepare, use, authorize,
approve or refer to, any offering material in connection with the offering and sale of the Tokens.

 

4. 
Additional Agreements.

 

4.1 
Earning Statement. The Company will make generally available to its security holders as soon as practicable an earning
statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 under the Securities Act covering a
period of at least 12 months beginning with the first fiscal quarter of the Company occurring after the “effective date”
(as defined in Rule 158 under the Securities Act) of the Registration Statement; provided that the Company will be deemed
to have furnished such statement to its security holders the extent it is filed on the Commission’s Electronic Data Gathering,
Analysis and Retrieval system (“EDGAR”).

 

4.2 
Blue Sky Compliance. The Company will use commercially reasonable efforts to qualify or register (or to obtain exemptions
from qualifying or registering) the Tokens for offer and sale under the securities or “blue sky” Laws of states of
the United States where Tokens are offered and sold and will use its commercially reasonable efforts to continue such qualifications,
registrations and exemptions in effect so long as required for the distribution of the Tokens; provided that the Company
shall not be required to (a) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction
where it would not otherwise be required to so qualify, (b) file any general consent to service of process in any such jurisdiction,
or (c) subject itself to taxation in any such jurisdiction if it is not otherwise so subject as of the date hereof.

 

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4.3 
Expenses. All costs, fees and expenses incurred by a Party in connection with the performance of such Party’s
obligations hereunder and in connection with the transactions contemplated by this Agreement shall be paid by such Party regardless
of whether this Agreement becomes effective or is terminated. Each Party shall be solely liable for all of its own fees and costs
incurred in any future transactions between the Parties.

 

4.4 
Transfer. Purchasers may be unable to trade or otherwise dispose of ownership of the Tokens until the INX Securities
trading platform is operational or another platform for trading INX Tokens becomes available. Potential Purchasers acknowledge
that they may be required to bear the financial risks of the Tokens for an indefinite period of time.

 

4.5 
Additional Information. Upon the Company’s request, Purchaser agrees to provide the Company with all additional
information that the Company deems necessary to comply with applicable Laws.

 

5. 
Termination.

 

5.1 
General Termination Right. This Agreement may be terminated by the Company by written (including electronic) notice
to Purchaser at any time prior to the Closing Date, and any such termination shall be without liability on the part of the Company
(or any of its affiliates, and its and their respective owners, directors, officers, employees, agents, advisors, or other representatives)
to Purchaser. In the event of a termination pursuant to this Section 5.1: (a) the Company shall cause its payment services
provider or the Escrow Agent, as applicable, to return promptly the Purchase Price to Purchaser without deduction, offset or interest
accrued thereon and (b) this Agreement, and all of Purchaser’s rights under this Agreement, shall immediately terminate and
shall thereafter be of no further force or effect.

 

5.2 
Termination Upon Purchaser’s Breach. In addition to the rights in Section 5.1, the Company reserves
the right to terminate this Agreement, in its sole discretion, in the event that Purchaser is in breach of any term of this Agreement.
In the event of a termination pursuant to this Section 5.2, (a) all of Purchaser’s rights in Tokens shall become immediately
void and of no further force and effect, (b) all of Purchaser’s rights under this Agreement shall immediately terminate,
and (c) Purchaser shall not be entitled to any other recourse (including any refund for any amounts paid to the Company in connection
with this Agreement).

 

5.3 
Termination Upon Transfer. Except for the rights of the transferee set forth in Section 8.8 hereto, this Agreement
shall terminate upon the transfer of INX Tokens completed in accordance with Section 3 of Exhibit B hereto.

 

5.4 
Survival. Notwithstanding anything to the contrary herein, the provisions of Section 5, Section 6,
Section 7, and Section 8 shall survive the termination of this Agreement.

 

6. 
Indemnification. Purchaser hereby agrees to indemnify the Company, any of its affiliates, and its and their respective
owners, directors, officers, employees, representatives and advisors, and to hold each of them harmless, from and against any loss,
damage, liability, cost or expense, including reasonable attorneys’ fees and costs of investigation, to which they may be
put or which they may reasonably incur or sustain due to or arising out of (a) any inaccuracy in or breach of any representation
or warranty of Purchaser or its affiliates or agents, whether contained in this Agreement or any other document provided by Purchaser
to the Company in connection with Purchaser’s investment in the Tokens (b) any nonfulfillment or breach of any covenant,
agreement, or other provision by Purchaser or its affiliates or agents, whether contained in this Agreement or any other document
provided by Purchaser to the Company in connection with Purchaser’s investment in the Tokens, or (c) the sale or distribution
of the Tokens in violation of the Securities Act or any other applicable Law or this Agreement. Notwithstanding any provision of
this Agreement, Purchaser does not waive any right granted to Purchaser under any applicable state securities Law. All indemnification
provisions shall survive the termination of this Agreement.

 

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7. 
Limitation of Liability; No Warranties.

 

7.1 
Except as expressly provided by this agreement and applicable Laws, the Company shall not be responsible or liable for any
losses resulting directly or indirectly from: (a) any act or omission of Purchaser or agent of Purchaser or any error, negligence,
or misconduct of Purchaser; (b) failure of transmission or communication facilities; (c) any other cause or causes beyond the Company’s
control, including, without limitation, for reasons such as acts of God, fire, flood, strikes, work stoppages, acts of terrorism,
governmental or regulatory action, delays of suppliers or subcontractors, war or civil disturbance, self-regulatory organization
actions, telecommunication line or computer hardware failures and any other telecommunication failures; (d) the Company’s
reliance on any instructions, notices, or communications that it believes to be from an individual authorized to act on behalf
of Purchaser, and Purchaser hereby waives any and all defenses that any such individual was not authorized to act on behalf of
Purchaser; (e) government restrictions; exchange, regulatory, or market rulings; suspension of trading; military operations; terrorist
activity; strikes, or any other condition beyond the Company’s control, including without limitation extreme market volatility
or trading volume; or (f) any action taken by Company to comply with applicable Laws or this Agreement.

 

7.2 
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES, THE COMPANY, ITS AFFILIATES, AND ITS CONTROLLING PERSONS,
SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS WILL NOT BE RESPONSIBLE FOR ANY LOSSES EXCEPT THAT THE COMPANY SHALL BE
RESPONSIBLE FOR ANY LOSSES TO THE EXTENT THAT SUCH LOSSES ARISE FROM THE COMPANY’S GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT.
IN NO EVENT SHALL THE COMPANY, ITS AFFILIATES, CONTROLLING PERSONS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS BE
LIABLE TO PURCHASER OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, OR
DAMAGES OF ANY KIND FOR LOST PROFITS OR REVENUES, TRADING LOSSES, INACCURATE DISTRIBUTIONS, LOSS OF BUSINESS OR DATA, EVEN IF ADVISED
OF THE POSSIBILITY OF ANY SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT OR OTHERWISE.
FOR THE AVOIDANCE OF DOUBT, THIS PROVISION DOES NOT ACT AS A WAIVER OF ANY RIGHTS OF A PURCHASER UNDER THE FEDERAL SECURITIES LAWS,
INCLUDING ANY RIGHTS UNDER THE SECURITIES ACT OF 1933, TO THE EXTENT SUCH A WAIVER IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE
ACT OR IS OTHERWISE UNENFORCEABLE.

 

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7.3 
 THE COMPANY AND ITS AFFILIATES MAKE NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE SERVICES TO BE PROVIDED
IN ACCORDANCE WITH THIS AGREEMENT, INCLUDING THE PURCHASING SITE, OR THE RESULTS TO BE ACHIEVED BY THE USE THEREOF. THE COMPANY
AND ITS AFFILIATES DISCLAIM ALL EXPRESS, IMPLIED AND STATUTORY WARRANTIES INCLUDING, WITHOUT LIMITATION, INCLUDING WARRANTIES OF
QUALITY, PERFORMANCE, NON INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED
BY COURSE OF DEALING, COURSE OF PERFORMANCE OR TRADE USAGE. THE COMPANY AND AFFILIATES DO NOT GUARANTEE THE ACCURACY, QUALITY,
SEQUENCE, TIMELINESS, RELIABILITY, PERFORMANCE, COMPLETENESS, CONTINUED AVAILABILITY, TITLE OR NON-INFRINGEMENT OF ANY DATA OR
THIRD PARTY PROVIDER SERVICES USED IN RELATION TO THE AGREEMENT AND EACH DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES. THE SERVICES
TO BE PROVIDED BY THE COMPANY (INCLUDING THE PURCHASING SITE) ARE PROVIDED ON AN “AS-IS”, “AS AVAILABLE”
BASIS WITHOUT WARRANTY OF ANY KIND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES. FOR THE AVOIDANCE OF DOUBT, THIS
PROVISION DOES NOT ACT AS A WAIVER OF ANY RIGHTS OF A PURCHASER UNDER THE FEDERAL SECURITIES LAWS, INCLUDING ANY RIGHTS UNDER THE
SECURITIES ACT OF 1933, TO THE EXTENT SUCH A WAIVER IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE ACT OR IS OTHERWISE UNENFORCEABLE.

 

8. 
General Provisions.

 

8.1 
Counterparts. This Agreement may be executed in any number of counterparts (including by means of facsimile and electronic
mail (including portable document format (pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g.,
www.docusign.com)), each of which shall be an original but all of which together shall constitute one and the same instrument.

 

8.2 
No Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties. Further, (a) INX Tokens
acquired pursuant to this Agreement may be transferred only as set forth in Section 3 of Exhibit B hereto, (b) the
Company may assign or transfer this Agreement without Purchaser’s consent to its successors and assigns, including an affiliate
of the Company, and (c) Purchaser may not assign this Agreement without the prior written consent of the Company. For the avoidance
of doubt, Purchaser and Purchaser’s permitted assignees shall not transfer INX Tokens to third parties, including by transfer
of rights or access to an Ethereum wallet included in the Whitelist Database or an account of Purchaser held by INX Services,
except with the express permission of the Company. Any purported assignment in violation of this provision shall be a breach of
this Agreement and void ab initio.

 

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8.3 
Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the domestic Laws of the
State of Delaware without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or
any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware. EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE AND FEDERAL COURTS LOCATED
WITHIN NEW CASTLE COUNTY, DELAWARE FOR ANY ACTION, PROCEEDING OR INVESTIGATION (“LITIGATION”) ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO COMMENCE ANY LITIGATION RELATING THERETO
EXCEPT IN SUCH VENUES). THIS PROVISION DOES NOT, NOR IS INTENDED TO, APPLY TO CLAIMS UNDER THE FEDERAL SECURITIES LAWS.

 

8.4 
Amendment. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and
signed by the Company and Purchaser. The Company reserves the right to, prior to the Closing, modify the terms of the offering
of the Tokens and the rights and attributes of the Tokens described in the Prospectus in its sole discretion. If, prior to the
Closing, the Company so amends the terms of the Tokens in any material respect, it will give notice of such amendment to Purchaser
and provide Purchaser at least three (3) business days to withdraw its election to purchase Tokens as contemplated by this Agreement.
Upon any such withdrawal, the Agreement will terminate and all funds received from Purchaser be promptly returned, without interest.

 

8.5 
Entire Agreement. This Agreement constitutes the entire agreement among the Parties and supersedes any prior understandings,
agreements, or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter
hereof.

 

8.6 
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed
to have been duly given to any Party when delivered by hand, when delivered by electronic mail, or when mailed, first-class postage
prepaid, (a) if to Purchaser, at the electronic mail address set forth below Purchaser’s signature, or to such other electronic
mail address as Purchaser shall have furnished to the Company in writing, and (b) if to the Company, to it at INX Limited, 57/63
Line Wall Road, Gibraltar GX11 1AA, or to such other address or addresses or electronic mail address or addresses, as the Company
shall have furnished to Purchaser in writing (provided that notice by electronic mail to the Company shall not be deemed given
unless the Company has affirmatively acknowledged receipt of such notice).

 

8.7 
Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
illegal, inoperative or unenforceable for any reason, this Agreement shall continue in full force and effect, it being intended
that all rights and obligations of the Parties hereunder shall be enforceable to the fullest extent permitted by law, and the Parties
shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest
extent possible.

 

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8.8 
No Third-Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of each
Party and their respective successors and assigns, and it is not the intention of the Parties to confer, and no provision hereof
shall confer, third-party beneficiary rights upon any other person; provided, that, any subsequent transferee of the INX Tokens
pursuant to a permitted transfer effected pursuant to Section 3 of Exhibit B hereto will be deemed a third party
beneficiary of the transferor’s rights as holder of INX Tokens set forth on Exhibit B hereto for so long as such transferee
is a holder of INX Tokens.

 

8.9 
Electronic Communications. Purchaser agrees and acknowledges that all agreements, notices, disclosures and other
communications that the Company may provide to Purchaser pursuant to this Agreement or in connection with or related to Purchaser’s
purchase or ownership of Tokens, including this Agreement, may be provided by the Company, in its sole discretion, to Purchaser
in electronic form.

 

8.10 
Headings. The headings used in this Agreement have been inserted for convenience of reference only and do not define
or limit the provisions hereof.

 

8.11 
Construction. The Parties acknowledge that each of them has had the benefit of legal counsel of its own choice and
has been afforded an opportunity to review this Agreement with its legal counsel and that this Agreement shall be construed as
if jointly drafted by the Parties.

 

8.12 
Available Rights and Waivers. No failure or delay by any Party in exercising any right, power or privilege under
this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative
and not exclusive of any rights or remedies provided by law.

 

[Signature page follows]

 

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IN WITNESS WHEREOF,
the Parties have caused this Subscription Agreement to be executed by their duly authorized representatives on the date first written
above.

 

	 	INX LIMITED
	 	 	 
	 	By:	                         
	 	Name:	 
	 	Its:	 
	 	 	 
	 	PURCHASER:  
	 	 	 
	 	By:	 
	 	Name:	 
	 	 	 
	 	Email

                                  address:
	 

 

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EXHIBIT A

 

PURCHASED TOKENS AND AGGREGATE PURCHASE
PRICE

 

	Purchaser Name	Number of Tokens	Purchase Price (USD):
	 	 	 

  

Payment
Details

(DEPOSIT
OF PURCHASE PRICE)

 

 ̈
PAYMENT BY WIRE TRANSFER – Send payment to the following:

 

	Purchase Price (USD):	 
	Bank Name: 	 
	Bank Address: 	 
	Institution No.:	 
	Branch No.: 	 
	Bank Account No.: 	 
	Swift Code/ABA No.:	 

  

 ̈
PAYMENT BY ETHEREUM – Send payment to the following:

 

	Ether (ETH) Digital Wallet Address:	Purchase Price (ETH)	ETH /USD Exchange Rate
	 	 	 

 

 ̈
PAYMENT BY BITCOIN – Send payment to the follow address:

 

	Bitcoin (BTC) Digital Wallet Address	Purchase Price (BTC)	BTC /USD Exchange Rate
	 	 	 

 

*The BTC/USD and ETH/USD
exchange rates have been determined by the Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX), respectively, at 12:00 a.m.
(UTC) on the date Purchaser submitted this executed INX Token Purchase Agreement to the Company.

  

Purchaser’s
Digital Wallet

(DELIVERY
OF TOKENS)

 

	Purchaser’s Digital Wallet Address:	 	 

 

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EXHIBIT B

 

RIGHTS
of INX tokens of INX LIMITED 

 

		1)	Designation and Number of Tokens. The INX Tokens of INX Limited (the “Company”)
shall be designated as “INX Tokens.” The number of authorized INX Tokens is 200,000,000. The INX Token is an ERC20
blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain. The smart contract
creating the INX Token was created on January 9, 2018 and re-deployed on      . The smart contract for the INX Token is publicly
viewable at the Website (as defined in Section 18 of this Exhibit B). The rights of the INX Token holder are contractual
rights set forth in the INX Token Purchase Agreement, including this Exhibit B.

 

		2)	Persons Deemed Holders of Record.
                                         To be deemed to be a holder of record of INX Tokens, a holder must (a) register an Ethereum
                                         wallet with the Company to be included on the Whitelist Database and (b) have the public
                                         wallet address of this Ethereum wallet recorded on the “INX Token distributed ledger”
                                         as the holder INX Tokens. INX Tokens held by a nominee on behalf of beneficial owners
                                         will be recorded on the INX Token Distributed Ledger as being held in the nominee’s
                                         Ethereum wallet and the nominee will be the holder of record.

 

The “Whitelist Database”
is a database stored on the data section of the INX Token smart contract. The Whitelist Database contains a record of information
about individuals and entities that have satisfied the Company’s KYC/AML compliance procedures and thus are eligible to
hold INX Tokens. Such information includes the digital wallet address, name and a KYC Reference ID linking to KYC filing information.
This information is recorded on the Ethereum blockchain in an encrypted format and it is not readable by the general public. The
Company will hold a private key which will enable the Company to add wallet addresses and personal information to the Whitelist
Database.

 

The “INX
Token distributed ledger” references the ledger of holdings of INX Tokens that is recorded on the Ethereum blockchain. The
INX Token distributed ledger records the public wallet addresses of all Ethereum wallets that hold INX Tokens and the balance
of INX Tokens in each wallet address. The INX Token distributed ledger is updated after each transfer of INX Tokens. Information
from the distributed ledger can be viewed using an Ethereum network block explorer, such as Etherscan.com.

 

		3)	Transfer.
                                         INX Tokens may be transferred only among Ethereum wallets included in the Whitelist
                                         Database. Transfers
                                         of INX Tokens will be executed by the INX Token smart contract under conditional permission
                                         that the wallet addresses of both the sender and receiver of INX Tokens are listed on
                                         the Whitelist Database. The INX Token smart contract will verify that both the sender
                                         and the receiver wallet addresses are included in the Whitelist Database prior to approving
                                         or rejecting the transfer. If either the sender or receiver wallet address is not listed
                                         in the Whitelist Database, the smart contract will reject the transfer and the INX Token
                                         Distributed Ledger will not be updated. Notwithstanding the foregoing, the Company reserves
                                         the right to investigate suspicious patterns or non-compliance with KYC/AML regulations
                                         and immediately freeze one or more digital wallets from transferring or receiving INX
                                         Tokens if the Company determines in good faith and in the sole discretion of the Company
                                         that such wallets are in violation of the terms of conditions of the INX Token Purchase
                                         Agreement, including this Exhibit B, or that transfers to or from such digital
                                         wallets are not in good order.

 

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		4)	Use on the INX Trading Platforms; Purpose. INX Tokens do not have any rights, uses, purposes,
attributes, functionalities or features, express or implied, outside of the Company’s trading platforms.

 

		a)	INX Securities Trading Platform.
                                         Holders of INX Tokens are entitled to a minimum ten percent (10%) discount on the
                                         payment of transaction fees on the INX Securities trading platform, as compared to fees
                                         paid using other currencies. In addition, the Company, from time to time in its sole
                                         discretion, may offer promotional incentives such as greater discounts for holders of
                                         INX Tokens compared to other forms of payment for transaction fees. Other terms for services
                                         on the INX Securities trading platform will be subject to change, as determined from
                                         time to time by the INX Securities trading platform.

 

		b)	INX Digital Trading Platform.
                                         Record holders of INX Tokens who hold their INX Tokens in their private wallets will
                                         be eligible to receive a discount on the payment of transaction fees on the INX Digital
                                         cryptocurrency trading platform, by linking their private wallet with their INX Digital
                                         trading platform account. The terms of these promotional incentives will be subject to
                                         change, as determined from time to time by the INX Digital Trading platform.

 

		5)	Cash
                                         Participation Rights. Commencing in calendar year 2021, subject to the conditions
                                         described herein, each INX Token held by parties other than the Company shall entitle
                                         its holder to receive a pro rata portion, based on the number of INX Tokens held by parties
                                         other than the Company as of March 31 of each such year, of an aggregate amount which
                                         equals 40% of the Company’s Adjusted Operating Cash Flow. The distribution will
                                         be made on April 30 of each calendar year, commencing on April 30, 2021, and will be
                                         based on the Company’s cumulative Adjusted Operating Cash Flow net of cash flows
                                         which have already formed a basis for a prior distribution, calculated as of December
                                         31 of each year. 

 

		a)	Board Determination. Adjusted
                                         Operating Cash Flow shall be based upon the audited annual financial statements of the
                                         Company for the preceding fiscal year, as have been approved by the Company’s board
                                         of directors.

 

		b)	Amount.
                                         “Adjusted Operating Cash Flow” shall be calculated as net cash flow from
                                         operating activities as reflected in the consolidated statement of cash flow of the Company
                                         that is included in the audited consolidated financial statements of the Company and
                                         its subsidiaries as of December 31 of the year preceding the year of the distribution.
                                         For purposes of the calculation of the Adjusted Operating Cash Flow, cash flow from the
                                         sale and purchase of blockchain assets, including cash flow from the sale and purchase
                                         of the INX Token (excluding cash proceeds from an Initial Sale) and cash flow for interest
                                         paid and interest received, will be included in the calculation of Adjusted Operating
                                         Cash Flow regardless of their classification in the consolidated statement of cash flow
                                         of our Company. An “Initial Sale” refers to the first sale and transfer
                                         of the respective INX Token by the Company to an initial purchaser. If the “Adjusted
                                         Operating Cash Flow” is negative, no distribution shall be made.

 

		c)	Payment Dates. The cash
                                         participation rights shall begin for Adjusted Operating Cash Flow reflected in the Company’s
                                         audited consolidated financial statements for fiscal 2020 with a payment (if any) occurring
                                         on April 30, 2021 to holders of record on March 31, 2021. Thereafter, distributions for
                                         a fiscal year shall be paid on April 30 of the following year based on the number of
                                         Tokens held by parties other than the Company or a subsidiary of the Company as of March
                                         31 of such year to the holders of record of INX Tokens as of March 31 of such year, or
                                         as otherwise declared by the Company by delivering notice to holders of INX Tokens of
                                         such dates. If the distribution date is not a Business Day, the applicable payment shall
                                         be due on the next succeeding Business Day. On and after April 1 of a given year, a transferee
                                         of INX Tokens will not receive the distribution paid on April 30 of that year, as the
                                         INX Token holder as of March 31 will be entitled to the distribution for the preceding
                                         fiscal year. “Business Day” shall mean any day other than Saturday, Sunday,
                                         or any other day on which banking institutions in the state of New York are authorized
                                         by law or executive action to close.

 

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		d)	Distribution Requirements.
                                         Distributions will be divisible and rounded down to five decimal places (one-thousandth
                                         of a cent) and Token holders will be paid in full from the first dollar of Adjusted Operating
                                         Cash Flow that is distributed. No distribution will be made to any INX Token holder if
                                         the banking fee relating to such transfer exceeds the distribution amount owed to that
                                         Token holder.

 

		e)	Currency. Distributions
                                         will be paid, at the election of the Token holder, in either USD or in ETH.

 

		f)	Delivery. Distributions
                                         may be delivered, at the election of the Token holder, (i) in USD to the bank account
                                         provided by the Token holder, or (ii) in ETH to the Ethereum wallet address holding INX
                                         Tokens. The Company and the Token holder may also agree on other forms of delivering
                                         the distribution. If no account information has been provided to Company, the Company
                                         will deliver the distribution in ETH to the Ethereum wallet address holding INX Tokens.
                                         If INX Tokens are held of record by a nominee on behalf of beneficial owners, distributions
                                         will be made to the holder of record.

 

		g)	Procedures. The Company may from time to time modify the procedures and conditions for
                                                                payment and distributions for forth in clauses (c)
                                                                through (f) of this Section 5 of Exhibit B and will provide notification of such modifications to the
                                                                holders of the INX Tokens. 

 

		6)	Distributions. Except for distributions made following a dissolution of the Company and
during the winding up of the Company’s affairs, the Company will not declare, pay or make any dividend or distribution on
any equity interests of the Company (other than dividends or distributions payable in its stock, or split-ups or reclassifications
of its stock) or apply any of its funds, property or assets to the purchase, redemption or other retirement of any equity interest,
or the retirement of any options to purchase or acquire any equity interest of the Company, except for distributions made from
the Company’s Distributable Profit. For purposes of this Section 6 of Exhibit B, “Distributable Profit”
shall mean income and profits arising from the operations of the company. For the avoidance of doubt, Distributable Profit shall
include neither (i) the proceeds of an Initial Sale (as that term is defined in Section 5(b) of this Exhibit B) nor
(ii) any profits or losses arising from the fair value adjustment of INX Token and derivative liabilities.

 

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		7)	Rights upon a Failure or a Change
                                         of Control. Each INX Token held by parties other than the Company shall entitle its
                                         holder to receive a pro rata portion (based upon the number of INX Tokens then outstanding)
                                         of the Cash Fund, if any of the following (each, a “Triggering Event”) occur:

 

		a)	the Company fails to operate a
                                         bona fide trading platform that permits the spot trading of Bitcoin and Ethereum by December
                                         31, 2021, or

 

		b)	(i) a sale of all or substantially
                                         all of the assets of the Company; (ii) any person or entity becomes the beneficial owner,
                                         directly or indirectly, of more than 50% of the outstanding voting interests of the Company;
                                         or (iii) a merger, consolidation, recapitalization or reorganization of the Company with
                                         or into any person or entity pursuant to which the shareholders of the Company immediately
                                         prior to such transaction own less than 50% of the outstanding voting interests of the
                                         resulting entity or its parent company.

 

Upon occurrence of a Triggering Event,
the Company will provide each INX Token holder with notice of the occurrence of a Triggering Event. The Company will pay a pro
rata portion of the Cash Fund to each holder of INX Tokens within thirty (30) days from the date such notice is furnished. Unless
an INX Token holder indicates otherwise, the Company shall pay the proceeds from the Cash Fund to each INX Token holder in the
same manner that the Company pays the participation right in the Adjusted Operating Cash Flow. Notwithstanding the occurrence of
a Triggering Event and the payment of the Cash Fund in accordance with this Section 7 of this Exhibit B, the INX
Tokens shall retain all of the rights, uses, purposes, attributes, functionalities or features, express or implied, as provided
in this Exhibit B.

 

“Cash Fund” shall bear the meaning ascribed to it in the public offering registration statement declared effective
by the US Securities and Exchange Commission covering the sale of INX Tokens pursuant to the INX Token Purchase Agreement of which
this Exhibit B is a part. The Company is committed to establishing the Cash Fund with the proceeds of the offering and using
those funds in limited circumstances to cover customer and Company losses, if any, that result from cybersecurity breaches or theft,
errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties
lack sufficient collateral to cover losses. However, the Company does not plan to replenish the Cash Fund after such funds are
used.

 

		8)	Rights upon an Insolvency Event. If
                                         (i) the Company permanently discontinues all the activities of INX Solutions and there
                                         is no successor conducting a substantially similar business that assumes the obligations
                                         of the Company with regard to the INX Tokens and (ii) an Insolvency Event occurs, then
                                         the Company will be in breach of this Section 8 of this Exhibit B, and
                                         this breach shall create a claim in favor of INX Token Holders that may be asserted by
                                         INX Token holders against the Company in any proceeding arising from such Insolvency
                                         Event. An “Insolvency Event” shall be the dissolution, winding up,
                                         or total or partial liquidation or reorganization, readjustment, arrangement, or similar
                                         proceeding relating to the Company or its property, whether voluntary or involuntary,
                                         or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon
                                         an assignment for the benefit of creditors, or upon any other marshaling or composition
                                         of the assets and liabilities of the Company, or otherwise.

 

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		9)	Subordination by Shareholders of Certain
                                         Rights. In connection with its obligations set forth in Section 8 of this
                                         Exhibit B, the Company has caused certain of its current shareholders, and shall
                                         cause its future shareholders (“Shareholders”), to execute a Waiver
                                         and Subordination Undertaking, under which such Shareholders agree to terms substantially
                                         similar to the following, in addition to other customary provisions for such agreements:

 

		a)	Each Shareholder irrevocably subordinates
                                         all payments by the Company on account of any Shareholders Claim (as defined below) to
                                         the prior satisfaction and payment in full by the Company of all Token Claims (as defined
                                         below).

 

		b)	Each Shareholder irrevocably waives and subordinates, to the prior satisfaction in full by the
Company of any Token Claim, any claim, and undertakes that it shall not exercise any right or remedy, directly or indirectly, that
it may acquire under, or as a result of the following, with respect to the cash amount reserved in the Cash Fund maintained by
the Company: (i) any agreement it has with the Company; (ii) the organizational documents of the Company (including without limitation,
the Memorandum and Articles of Association of the Company); or (iii) any applicable law or regulation.

 

		c)	In the event of any payment or distribution of assets of the Company of any kind or character,
whether in cash, property, or securities, upon the dissolution, winding up, or total or partial liquidation or reorganization,
readjustment, arrangement, or similar proceeding relating to the Company or its property, whether voluntary or involuntary, or
in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an assignment for the benefit of creditors,
or upon any other marshaling or composition of the assets and liabilities of the Company, or otherwise: (i) all amounts owing on
account of all Token Claims shall first be paid in full, before any Shareholders Claim Payment (as defined below) is made; and
(ii) so long as all Token Claims have not been paid in full, to the extent permitted by applicable law, any Shareholders Claim
Payment to which a Shareholder would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in
bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent making such payment for the benefit of
each Token Holder for application to the payment of all Token Claims.

 

		d)	In the event that, notwithstanding the provisions above, any Shareholders Claim Payment is received
in contravention of the provisions above by any Shareholder before all Token Claims are paid in full, such Shareholders Claim Payment
shall be held in trust for the benefit of each Token Holder and shall be paid over or delivered to the Company for the benefit
of each Token Holder for application to the payment in full of all Token Claims remaining unpaid to the extent necessary to give
effect to the provisions above, after giving effect to any concurrent payments or distributions to each Token Holder in respect
of all Token Claims.

 

		e)	Each Shareholder hereby subordinates any claim and shall not exercise any right or remedy, directly
or indirectly, that it may acquire by way of subrogation under the Waiver and Subordination Undertaking, or as a result of the
application of the provisions of the Waiver and Subordination Undertaking or otherwise, unless and until all Token Claims have
been paid in full.

 

		f)	For the purpose of the Waiver and Subordination Undertaking:

 

		i)	“Shareholders Claim” means all indebtedness, liabilities, obligations, or undertakings
of any kind or description of the Company owing to a Shareholder in respect of any and all shares issued by the Company to such
Shareholder, whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or
unliquidated, determined or undetermined.

 

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		ii)	“Shareholders Claim Payment” means any payment or distribution by or on behalf of the
Company, directly or indirectly, of assets of the Company of any kind or character, whether in cash, property, or securities, including
on account of the purchase, redemption, or other acquisition of shares, as a result of any collection, sale, or other disposition
of collateral, or by setoff exchange, or in any other manner, for or on account of shares of the Company.

 

		iii)	“Token Claim” means all indebtedness, liabilities, obligations, or undertakings of
any kind or description of the Company owing to any Token Holder arising out of, outstanding under, evidenced by a Token or a Token
Purchase Agreement, whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated
or unliquidated, determined or undetermined, and including without limitation any claim by a Token Holder against the Company for
breaching a Token Purchase Agreement.

 

		10)	Voting
                                         Rights. Holders of INX Tokens have no right to vote or participate in the Company’s
                                         shareholder meetings or in the corporate governance of the Company. 

 

		11)	Information Rights. The holders of INX Tokens shall have no rights to receive any reports,
notices and other information of the Company, except as expressly provided in this Exhibit B.

 

		12)	Exclusion
                                         of Other Rights. Except as expressly set forth in this Exhibit B, the INX
                                         Tokens do not provide the holder thereof with (a) rights of any form with respect to
                                         the Company or its revenues or assets, including, without limitation, any distribution,
                                         redemption, liquidation, proprietary (including all forms of intellectual property) or
                                         other financial or legal rights; (b) any ownership, equity, or other interest in the
                                         Company, including any preemptive or subscription rights; (c) rights to participate in,
                                         or benefit from significant corporate transactions in which the Company is a party, such
                                         as mergers, a sale of the Company, or sale of the Company’s assets; and (d) any
                                         voting powers, preferences and relative, participating, optional or other special rights.
                                         The INX Tokens are not loans to the Company. 

 

		13)	Repurchases. The Company (or an affiliate of the Company) may from time to time repurchase
INX Tokens, pursuant to purchases effected on the INX Securities trading platform, other trading platforms, or on a private basis.

 

		14)	Fractional Tokens. INX Tokens may be purchased, sold and transferred in fractional divisions
to eighteen decimal places (0.000000000000000001). Sales of INX Tokens by the Company that would otherwise result in fractional
divisions of more than five decimal places will be rounded down to five decimal places.

 

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		15)	Amendment
                                         or Modification; Replacement. The Company may not amend, alter, suspend or terminate
                                         the rights of INX Tokens as set forth in this Exhibit B except: (a) as provided
                                         in this Exhibit B; or (b) with the express written consent the holder of INX Tokens;
                                         provided, however, that the Company may modify the terms set forth in this
                                         Exhibit B to the extent such modification does not materially impair the rights of the
                                         holder of INX Tokens. The Company may, at its sole discretion, replace the INX Tokens,
                                         the INX Token smart contract and the INX Token distributed ledger and distribute new
                                         blockchain assets (“Replacement Tokens”) that may be programmed using a different
                                         smart contract and using a different ledger of ownership (collectively, a “Replacement”);
                                         provided, however, that (x) the registered holders of the INX Tokens (or any Replacement
                                         Tokens) immediately prior to a Replacement receive one Replacement Tokens for each INX
                                         Token held by the registered holder; (y) all Replacement Tokens distributed pursuant
                                         to this Section 15 of Exhibit B shall have all the rights as are expressly
                                         set forth on this Exhibit B, subject to the terms hereof (except to the extent
                                         it is expressly modified by the terms of this Section 15 of Exhibit B);
                                         and (z) immediately following the distribution of Replacement Tokens as part of a Replacement,
                                         the INX Tokens (or previously distributed Replacement Tokens) will be void, will no longer
                                         represent the rights associated with this Exhibit B and any attempted or purported
                                         transfer of such INX Tokens will be void and without effect. 

 

		16)	Notices. All notices provided by the Company to holders of INX Tokens hereunder shall be
delivered by an electronic notice sent to the holders of INX Tokens by posting such notice to the Website (as hereinafter defined).

 

		17)	Third-Party Beneficiaries. The rights and obligations set forth in this Exhibit B
are intended solely for the benefit of the holder of INX Tokens. Upon any valid transfer of an INX Token in accordance with the
transfer requirements of Section 3 of this Exhibit B, the rights and obligations of the transferor of an INX Token
pursuant to this Exhibit B shall be automatically assigned to the transferee of such INX Tokens, with such transferee being
a third party beneficiary to the terms of Exhibit B.

 

		18)	INX Website. The Company has established INX.co (the “Website”), which
                                                            contains                                                             publicly viewable information regarding the INX Token,
                                                            including the INX Token smart contract, public wallet addresses with
                                                            INX Token balances, the rights of INX Tokens, and applicable notices. The Company has established Terms of Use for the
                                                            Website, which Terms of Use may be amended from time to time by the Company in its sole discretion. Holders of INX Tokens
                                                            must comply with the Terms of Use for the Website. The Website may be limited, unavailable or interrupted at any time,
                                                            including, but not limited to, during periods of peak demand, market volatility, system upgrades, maintenance, or during any
                                                            other events impacting holders of INX Tokens, the Company or third party providers providing systems or services necessary
                                                            for the Website to be available and that the Company will not be liable, and the Company shall not have any liability to any
                                                            holders of INX Tokens for any losses arising out of or relating to any inaccuracies, duplications or errors in any purchases
                                                            placed on the Website or resulting transactions.

 

		19)	Limitation of Liability; No Warranties with respect to INX Tokens.

 

		a)	Except as expressly provided by Delaware law, none of the terms of the INX Tokens shall cause the
Company to be, and the Company shall not be, responsible or liable for any losses resulting directly or indirectly from: (i) any
act or omission of a holder of INX Tokens or agent of a holder of INX Tokens or any error, negligence, or misconduct of a holder
of INX Tokens; (ii) failure of transmission or communication facilities; (iii) any other cause or causes beyond the Company’s
control, including, without limitation, for reasons such as acts of God, fire, flood, strikes, work stoppages, acts of terrorism,
governmental or regulatory action, delays of suppliers or subcontractors, war or civil disturbance, self-regulatory organization
actions, telecommunication line or computer hardware failures and any other telecommunication failures; (iv) the Company’s
reliance on any instructions, notices, or communications that it believes to be from an individual authorized to act on behalf
of a holder of INX Tokens, and each holder of INX Tokens hereby waives any and all defenses that any such individual was not authorized
to act on behalf of such holder; (v) government restrictions; exchange, regulatory, or market rulings; suspension of trading; military
operations; terrorist activity; strikes, or any other condition beyond the Company’s control, including without limitation
extreme market volatility or trading volume; or (vi) any action taken by Company to comply with applicable laws or the terms of
the INX Tokens. The Company is not responsible, and shall have no liability, for any mutilated, destroyed, lost and stolen INX
Tokens.

 

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		b)	TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES, NONE OF THE TERMS OF THE INX TOKENS
SHALL CAUSE THE COMPANY TO BE, AND THE COMPANY, ITS AFFILIATES, AND ITS CONTROLLING PERSONS, SHAREHOLDERS, DIRECTORS, OFFICERS,
EMPLOYEES AND AGENTS WILL NOT BE, RESPONSIBLE FOR ANY LOSSES EXCEPT THAT THE COMPANY SHALL BE RESPONSIBLE FOR ANY LOSSES TO THE
EXTENT THAT SUCH LOSSES ARISE FROM THE COMPANY’S GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT. IN NO EVENT SHALL THE COMPANY,
ITS AFFILIATES, CONTROLLING PERSONS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS BE LIABLE TO A HOLDER OF INX TOKENS
OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, OR DAMAGES OF ANY KIND
FOR LOST PROFITS OR REVENUES, TRADING LOSSES, INACCURATE DISTRIBUTIONS, LOSS OF BUSINESS OR DATA, EVEN IF ADVISED OF THE POSSIBILITY
OF ANY SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT OR OTHERWISE. FOR THE AVOIDANCE
OF DOUBT, THIS PROVISION DOES NOT ACT AS A WAIVER OF ANY RIGHTS OF A PURCHASER UNDER THE FEDERAL SECURITIES LAWS, INCLUDING ANY
RIGHTS UNDER THE SECURITIES ACT OF 1933, TO THE EXTENT SUCH A WAIVER IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE ACT OR IS OTHERWISE
UNENFORCEABLE.

 

		c)	EXCEPT AS EXPRESS SET FORTH IN THIS EXHIBIT B, THE COMPANY AND ITS AFFILIATES MAKE NO REPRESENTATION
OR WARRANTY, EXPRESS OR IMPLIED, AS TO RIGHTS OF INX TOKENS, INCLUDING THE COMPANY’S WEBSITE, OR THE RESULTS TO BE ACHIEVED
BY THE USE THEREOF. THE COMPANY AND ITS AFFILIATES DISCLAIM ALL EXPRESS, IMPLIED AND STATUTORY WARRANTIES INCLUDING, WITHOUT LIMITATION,
INCLUDING WARRANTIES OF QUALITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE
ANY WARRANTIES CREATED BY COURSE OF DEALING, COURSE OF PERFORMANCE OR TRADE USAGE. THE COMPANY AND AFFILIATES DO NOT GUARANTEE
THE ACCURACY, QUALITY, SEQUENCE, TIMELINESS, RELIABILITY, PERFORMANCE, COMPLETENESS, CONTINUED AVAILABILITY, TITLE OR NON-INFRINGEMENT
OF ANY DATA OR THIRD PARTY PROVIDER SERVICES USED IN RELATION TO THE INX TOKENS AND EACH DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES.
THE SERVICES TO BE PROVIDED BY THE COMPANY IN CONNECTION WITH THE INX TOKENS (INCLUDING THE WEBSITE) ARE PROVIDED ON AN “AS-IS”,
“AS AVAILABLE” BASIS WITHOUT WARRANTY OF ANY KIND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES.

 

		20)	No Claim, Loan or Ownership Interest.

 

Other than
the rights of ownership expressly set forth in this Exhibit B, the holder of Tokens do not have rights of any form with respect
to the Company or its revenues or assets, including, without limitation, any voting, distribution, redemption, liquidation, proprietary
(including all forms of intellectual property) or other financial or legal rights. The Tokens are not indebtedness of Company.

 

		21)	Intellectual Property.

 

With its purchase
of a Token, Holder acknowledges and agrees that the Company retains all right, title and interest in all of the Company’s
intellectual property contained in the Tokens, including, without limitation, inventions, ideas, concepts, code, discoveries, processes,
marks, methods, software, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable or
protectable in trademark, and any trademarks, copyright or patents based thereon. Holder shall not to use, reverse engineer, modify,
or alter any of the Company’s intellectual property for any reason without the Company’s prior written consent.

 

		22)	Governing Law; Venue.

 

		a)	The INX Tokens shall be governed by and construed in accordance with the domestic Laws of the State
of Delaware without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware. EACH HOLDER
OF INX TOKENS HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE AND FEDERAL
COURTS LOCATED WITHIN NEW CASTLE COUNTY, DELAWARE FOR ANY ACTION, PROCEEDING OR INVESTIGATION (“LITIGATION”) ARISING
OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO COMMENCE ANY LITIGATION RELATING
THERETO EXCEPT IN SUCH VENUES).

   

 

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