Document:

EXHIBIT 10.1

 

Exhibit 10.1

 

Digital
Ally, Inc.

Amended
and Restated 2013 Stock Option and Restricted Stock Plan

 

1. Purposes.

 

(a) Background.
This 2013 Stock Option and Restricted Stock Plan was adopted on March 22, 2013 by the Board of Directors, subject to the approval
of the Company’s stockholders. Options granted under the Plan prior to the stockholders’ approval will be effective
upon approval of the stockholders as of their respective dates of grant. The shareholders approved the Plan at the annual meeting
of shareholders on May 30, 2013.

 

On March 28, 2014
the Board of Directors approved an amendment to the Plan to increase the shares of common stock available for issuance by an additional
100,000 shares for a total of 200,000 shares. The shareholders approved such amendment at the annual meeting of shareholders held
on June 12, 2014, which was the effective date of the amendment. This Amended and Restated 2013 Stock Option and Restricted Stock
Plan includes such amendment.

 

On November 14,
2014 the Board of Directors approved an amendment to the Plan to increase the shares of common stock available for issuance by
an additional 100,000 shares for a total of 300,000 shares. The shareholders approved such amendment at the Special meeting of
shareholders held on February 13, 2015, which is the effective date of the amendment. This Amended and Restated 2013 Stock Option
and Restricted Stock Plan includes such amendment.

 

(b) Eligible
Award Recipients. The persons eligible to receive Awards are the Employees and Directors of the Company and its Affiliates.

 

(c) Available
Awards. The purpose of the Plan is to provide a means by which eligible recipients may be given an opportunity to benefit
from increases in value of the Common Stock through the granting of the following: (i) Incentive Stock Options, (ii) Nonqualified
Stock Options, (iii) rights to acquire restricted stock, and (iv) stock appreciation rights.

 

(d) General
Purpose. The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Awards,
to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts
for the success of the Company and its Affiliates.

 

2. Definitions.

 

(a) “Affiliate”
means any entity that controls, is controlled by, or is under common control with the Company.

 

(b) “Award”
means any right granted under the Plan, including an Option, a right to acquire restricted Common Stock, and a stock appreciation
right.

 

(c) “Award
Agreement” means a written agreement between the Company and a holder of an Award (other than an Option) evidencing
the terms and conditions of an individual Award grant.

 

(d) “Board”
means the board of directors of the Company.

 

(e) “Code”
means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

    	 

    	 

    

 

(f) “Committee”
means a pre-existing or newly formed committee of members of the Board appointed by the Board in accordance with subsection
3(c).

 

(g) “Common
Stock” means the shares of the Company’s common stock par value $0.001 and other rights with respect to such
shares.

  

(h) “Company”
means Digital Ally, Inc., a Nevada corporation.

 

(i) “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee or Director
is not interrupted or terminated. Unless otherwise provided in an Award Agreement or Option Agreement, as applicable, the Participant’s
Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders
service to the Company or an Affiliate as an Employee or Director or a change in the entity for which the Participant renders such
service, provided that there is no interruption or termination of the Participant’s service to the Company or an Affiliate
as an Employee or Director. The Board, in its sole discretion, may determine whether Continuous Service shall be considered interrupted
in the case of any leave of absence, including sick leave, military leave or any other personal leave.

 

(j) “Covered
Employee” means the Company’s chief executive officer and the four (4) other highest compensated officers
of the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for
purposes of Section 162(m) of the Code.

 

(k) “Director”
means a member of the Board of the Company.

 

(l) “Disability”
means the Participant’s inability, due to illness, accident, injury, physical or mental incapacity or other disability,
to carry out effectively the duties and obligations to the Company and its Affiliates performed by such person immediately prior
to such disability for a period of at least six (6) months, as determined in the good faith judgment of the Board.

 

(m) “Dollars”
or “$” means United States dollars.

 

(n) “Employee”
means any person employed by the Company or an Affiliate. Service as a Director or payment of a director’s fee by the
Company or an Affiliate alone shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

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

 

(p) “Fair
Market Value” means, as of any date, the value of the Common Stock determined as follows:

 

(i) If the
Common Stock is listed on any established stock exchange, or traded on the Nasdaq Global Market, the Nasdaq Capital Market or the
Nasdaq OTC Bulletin Board, the Fair Market Value of the Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading
in Common Stock if such stock is traded on more than one such exchange or market) on the last market trading day prior to the day
of determination, as reported by such exchange or market or such other source as the Board reasonably deems reliable.

 

(ii) In the
absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

 

(q) “Incentive
Stock Option” means an option designated as an incentive stock option in an Option Agreement and that is granted
in accordance with the requirements of, and that conforms to the applicable provisions of, Section 422 of the Code.

 

    	 

    	 

    

 

(r) “Independent
Director” means (i) a Director who satisfies the definition of Independent Director or similar definition under
the applicable stock exchange or Nasdaq rules and regulations upon which the Common Stock is traded from time to time and (ii) a
Director who either (A) is not a current employee of the Company or an “affiliated corporation” (within the meaning
of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not
an officer of the Company or an “affiliated corporation” at any time and is not currently receiving direct or indirect
remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director
or (B) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.

 

(s) “Nonqualified
Stock Option” means an option that is not designated in an Option Agreement as an Incentive Stock Option or was not
granted in accordance with the requirements of, and does not conform to the applicable provisions of, Section 422 of the Code.

 

(t) “Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

 

(u) “Option”
means an Incentive Stock Option or a Nonqualified Stock Option granted pursuant to the Plan.

 

(v) “Option
Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions
of an individual Option grant.

 

(w) “Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

(x) “Participant”
means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

(y) “Plan”
means this Digital Ally, Inc. 2013 Stock Option and Restricted Stock Plan.

 

(z) “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time
to time.

 

(aa) “Securities
Act” means the Securities Act of 1933, as amended.

 

(bb) “Ten
Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any parent
corporation or any subsidiary corporation, both as defined in Section 424 of the Code.

 

3. Administration.

 

(a) Administration
by Board. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided
in subsection 3(c). The Board may, at any time and for any reason in its sole discretion, rescind some or all of such delegation.

 

(b) Powers
of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i) To determine
from time to time which of the persons eligible under the Plan shall be granted Awards; when and how each Award shall be granted;
what type or combination of types of Award shall be granted; the provisions of each Award granted (which need not be identical),
including the time or times when a person shall be permitted to receive Common Stock pursuant to an Award; and the number of shares
of Common Stock with respect to which an Award shall be granted to each such person.

  

(ii) To construe
and interpret the Plan, Awards granted under it, Option Agreements and Award Agreements, and to establish, amend and revoke rules
and regulations for their administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency
in the Plan or in any Option Agreement or Award Agreement, in a manner and to the extent it shall deem necessary or expedient to
make the Plan fully effective.

 

    	 

    	 

    

 

(iii) To amend
the Plan, an Award, an Award Agreement or an Option Agreement as provided in Section 12, provided that, the
Board shall not amend the Fair Market Value of an Award or extend the term of an Option or Award without obtaining the approval
of the stockholders if required by the rules of any stock exchange upon which the Common Stock is listed.

 

(iv) To reprice
any Options granted under the Plan by lowering the exercise price of an Option after it is granted, canceling an Option at a time
when its exercise price exceeds the Fair Market Value of the stock underlying the Option, in exchange for another Option or Award,
as well as any other action that is treated as a repricing under generally accepted accounting principles.

 

(v) Generally,
to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

 

(c) Delegation
to Committee. 

 

(i) General.
The Board may delegate administration of the Plan and its powers and duties thereunder to a Committee or Committees, and the
term “Committee” shall apply to any person or persons to whom such authority has been delegated. Upon such delegation,
the Committee shall have the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of
the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be
deemed to include the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of
the Plan, as may be adopted from time to time by the Board. In its absolute discretion, the Board may at any time and from time
to time exercise any and all rights and duties of the Committee under this Plan, except respecting matters under Rule 16b-3 of
the Exchange Act or Section 162(m) of the Code, or any rules or regulations issued thereunder, which are required to be determined
in the sole discretion of the Committee.

 

(ii) Committee
Composition. A Committee shall consist solely of two (2) or more Independent Directors. Within the scope of its authority,
the Board or the Committee may (1) delegate to a committee of one or more members of the Board who are not Independent Directors
the authority to grant Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be
Covered Employees at the time of recognition of income resulting from such Award or (b) not persons with respect to whom the
Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate to a committee of one or more members of
the Board who are not Independent Directors or to the Company’s Chief Executive Officer the authority to grant Awards to
eligible persons who are not then subject to Section 16 of the Exchange Act.

 

(d) Effect
of Board’s Decision; No Liability. All determinations, interpretations and constructions made by the Board in good
faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. No member of the
Board or the Committee or any person to whom duties hereunder have been delegated shall be liable for any action, interpretation
or determination made in good faith, and such persons shall be entitled to full indemnification and reimbursement consistent with
applicable law and in the manner provided in the Company’s Articles of Incorporation and Bylaws, as the same may be amended
from time to time, or as otherwise provided in any agreement between any such member and the Company.

 

4. Stock
Subject to the Plan.

 

(a) Stock
Reserve. Subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock, the shares of Common
Stock that may be issued pursuant to Awards shall not exceed in the aggregate three hundred thousand (300,000) shares of Common
Stock.

 

(b) Reversion
of Stock to the Stock Reserve. If any Award shall for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under such Award shall revert to and again become available
for issuance under the Plan.

 

(c) Source
of Stock. The Common Stock subject to the Plan may be unissued stock or reacquired stock, bought on the market or otherwise.

 

    	 

    	 

    

 

5. Eligibility.

 

(a) Eligibility
for Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive Stock Options
may be granted to Employees and Directors.

 

(b) Ten Percent
Stockholders. A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such
Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the
Option is not exercisable after the expiration of five (5) years from the date of grant.

 

6. Option
Provisions. 

 

Each Option Agreement
shall be subject to the terms and conditions of this Plan. Each Option and Option Agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options
or Nonqualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will
be issued for the shares of Common Stock purchased on exercise of each type of Option. The provisions of separate Options need
not be identical.

 

(a) Provisions
Applicable to All Options. 

 

(i) Consideration.
The purchase price of the shares of Common Stock acquired pursuant to an Option shall be paid as follows: (a) in cash or by
certified or official bank check, payable to the order of the Company, in the amount (the “Purchase Price”) equal to
the exercise price of the Option multiplied by the number of shares plus payment of all taxes applicable upon such exercise; (b)
with shares owned by the Optionholder having a Fair Market Value at the time the Option is exercised equal to the Purchase Price
plus payment in cash of all taxes applicable upon such exercise, with the prior approval of the Board; (c) by surrendering
to the Company the right to acquire a number of shares having an aggregate value such that the amount by which the Fair Market
Value of such shares exceeds the aggregate exercise price is equal to the Purchase Price plus payment in cash of all taxes applicable
upon such exercise, with the prior approval of the Board; (d) any combination of the foregoing; or (e) a manner acceptable to the
Board.

 

(ii) Vesting
Generally. An Option may (A) vest, and therefore become exercisable, in periodic installments that may, but need not,
be equal, or (B) be fully vested at the time of grant. The Option may be subject to such other terms and conditions on the
time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate.
The vesting provisions, if any, of individual Options may vary. The provisions of this subsection 6(a)(ii) are subject to any Option
Agreement provisions governing the minimum number of Common Stock as to which an Option may be exercised.

 

(iii) Termination
of Continuous Service. Unless otherwise provided in the Option Agreement, in the event an Optionholder’s Continuous
Service terminates (other than upon the Optionholder’s death, Disability, retirement or as a result of a Change of Control),
all Options held by the Optionholder shall immediately terminate; provided, however, that an Option Agreement may
provide that if an Optionholder’s Continuous Service is terminated for reasons other than for cause, all vested Options held
by such person shall continue to be exercisable until the earlier of the expiration date of such Option or ninety (90) days
after the date of such termination. All such vested Options not exercised within the period described in the preceding sentence
shall terminate.

 

(iv) Disability
or Death of Optionholder. Unless otherwise provided in the Option Agreement, in the event of an Optionholder’s Disability
or death, all unvested Options shall immediately terminate, and all vested Options held by such person shall continue to be exercisable
for twelve months after the date of such Disability or death. All such vested Options not exercised within such twelve-month period
shall terminate.

 

    	 

    	 

    

 

(v) Retirement.
Unless otherwise provided in the Option Agreement, in the event of the Optionholder’s retirement, all unvested Options
shall automatically vest on the date of such retirement and all Options shall be exercisable for the earlier of twelve (12) months
after such retirement date or the expiration date of such Options. All such Options not exercised within the period described in
the preceding sentence shall terminate.

 

(b) Provisions
Applicable to Incentive Stock Options.

 

(i) Term.
Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Incentive Stock Option shall be exercisable
after the expiration of ten (10) years from the date it was granted. Further, no grant of an Incentive Stock Option shall
be made under this Plan more than ten (10) years after the date the Plan is approved by the stockholders of the Company.

 

(ii) Exercise
Price of an Incentive Stock Option. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, the
exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of
the Common Stock subject to the Option on the date the Option is granted.

 

(iii) Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.

 

(iv) Incentive
Stock Option $100,000 Limitation. Notwithstanding any other provision of the Plan or an Option Agreement, the aggregate
Fair Market Value of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Optionholder
in any calendar year, under the Plan or any other option plan of the Company or its Affiliates, shall not exceed One Hundred Thousand
Dollars ($100,000). For this purpose, the Fair Market Value of the Common Stock shall be determined as of the time an Option is
granted. The Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated
as Nonqualified Stock Options.

 

(c) Provisions
Applicable to Nonqualified Stock Options.

 

(i) Exercise
Price of a Nonqualified Stock Option. The exercise price of each Nonqualified Stock Option shall be not less than one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted.

 

(ii) Transferability
of a Nonqualified Stock Option. A Nonqualified Stock Option shall be transferable, if at all, to the extent provided in
the Option Agreement. If the Option Agreement does not provide for transferability, then the Nonqualified Stock Option shall not
be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder.

 

7. Provisions
of Awards Other than Options. 

 

(a) Restricted
Stock Awards. Each restricted stock Award agreement shall be in such form and shall contain such restrictions, terms and
conditions, if any, as the Board shall deem appropriate and shall be subject to the terms and conditions of this Plan. The terms
and conditions of restricted stock Award Agreements may change from time to time, and the terms and conditions of separate restricted
stock Award Agreements need not be identical, but each restricted stock Award Agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

 

(i) Consideration.
A restricted stock Award may be awarded in consideration for past services actually rendered, or for future services to be rendered,
to the Company or an Affiliate for its benefit.

 

(ii) Vesting.
Common Stock awarded under the restricted stock Award Agreement may (A) be subject to a vesting schedule to be determined
by the Board or (B) be fully vested at the time of grant.

 

    	 

    	 

    

 

(iii) Termination
of Participant’s Continuous Service. Unless otherwise provided in the restricted stock Award Agreement, in the event
a Participant’s Continuous Service terminates prior to a vesting date set forth in the restricted stock Award Agreement,
any unvested restricted stock Award shall be forfeited and automatically transferred to and reacquired by the Company at no cost
to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors shall have any right
or interest in the restricted stock Award. Notwithstanding the foregoing, unless otherwise provided in the restricted stock Award
agreement, in the event a Participant’s Continuous Service terminates as a result of (A) being terminated by the Company
for reasons other than for cause, (B) death, (C) Disability, (D) retirement, or (E) a Change of Control (subject
to the provisions of Section 11(c) hereof), then any unvested restricted stock Award shall vest immediately upon such date.

 

(iv) Transferability.
Rights to acquire Common Stock under the restricted stock Award Agreement shall be transferable by the Participant only upon such
terms and conditions as are set forth in the restricted stock Award Agreement, as the Board shall determine in its discretion,
so long as Common Stock awarded under the restricted stock Award Agreement remain subject to the terms of the restricted stock
Award Agreement.

 

(b) Grant
of Stock Appreciation Rights. Stock appreciation rights to receive in shares of Common Stock the excess of the Fair Market
Value of Common Stock on the date the rights are surrendered over the Fair Market Value of Common Stock on the date of grant may
be granted to any Employee or Director selected by the Board. A stock appreciation right may be granted (i) in connection
and simultaneously with the grant of another Award, (ii) with respect to a previously granted Award, or (iii) independent
of another Award. A stock appreciation right shall be subject to such terms and conditions not inconsistent with this Plan as the
Board shall impose and shall be evidenced by a written stock appreciation right agreement, which shall be executed by the Participant
and an authorized officer of the Company. The Board, in its discretion, may determine whether a stock appreciation right is to
qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code and stock appreciation right agreements
evidencing stock appreciation rights intended to so qualify shall contain such terms and conditions as may be necessary to meet
the applicable provisions of Section 162(m) of the Code. The Board may, in its discretion and on such terms as it deems appropriate,
require as a condition of the grant of a stock appreciation right that the Participant surrender for cancellation some or all of
the Awards previously granted to such person under this Plan or otherwise. A stock appreciation right, the grant of which is conditioned
upon such surrender, may have an exercise price lower (or higher) than the exercise price of the surrendered Award, may contain
such other terms as the Board deems appropriate, and shall be exercisable in accordance with its terms, without regard to the number
of shares, price, exercise period or any other term or condition of such surrendered Award.

  

8. Availability
of Stock.

 

Subject to the restrictions
set forth in Section 4(a), during the terms of the Awards, the Company shall keep available at all times the number of shares
of Common Stock required to satisfy such Awards.

 

9. Use
of Proceeds from Stock. 

 

Proceeds from the
sale of Common Stock pursuant to Awards shall constitute general funds of the Company.

 

10. Miscellaneous.

 

(a) Exercise
of Awards. Awards shall be exercisable at such times, or upon the occurrence of such event or events as the Board shall
determine at or subsequent to grant. Awards may be exercised in whole or in part. Common Stock purchased upon the exercise of an
Award shall be paid for in full at the time of such purchase.

 

(b) Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate the time at which an Award may first be exercised
or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award stating the time at which it may first be exercised or the time during which it will vest.

 

(c) Stockholder
Rights. 

 

(i) Options.
Unless otherwise provided in and upon the terms and conditions in the Option Agreement, no Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any Common Stock subject to an Option unless and until such
Participant has satisfied all requirements for exercise of, and has exercised, the Option pursuant to its terms.

 

(ii) Restricted
Stock. Unless otherwise provided in and upon the terms and conditions in the restricted stock Award Agreement, a Participant
shall have the right to receive all dividends and other distributions paid or made respecting such restricted stock, provided,
however, no unvested restricted stock shall have any voting rights of a stockholder respecting such unvested restricted stock unless
and until such unvested restricted stock become vested.

 

    	 

    	 

    

 

(d) No Employment
or other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award
was granted, or any other capacity, or shall affect the right of the Company or an Affiliate to terminate with or without notice
and with or without cause (i) the employment of an Employee or an Affiliate or (ii) the service of a Director of the
Company or an Affiliate.

 

(e) Withholding
Obligations. If the Company has or will have a legal obligation to withhold the taxes related to the grant, vesting or
exercise of the Award, such Award may not be granted, vested or exercised in whole or in part, unless such tax obligation is first
satisfied in a manner satisfactory to the Company. To the extent provided by the terms of an Award Agreement or Option Agreement,
the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common
Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment in Dollars; (ii) authorizing
the Company to withhold Common Stock from the Common Stock otherwise issuable to the Participant as a result of the exercise or
acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered Common
Stock.

 

(f) Listing
and Qualification of Stock. This Plan and the grant and exercise of Awards hereunder, and the obligation of the Company
to sell and deliver Common Stock under such Awards, shall be subject to all applicable United States federal and state laws, rules
and regulations, and any other laws applicable to the Company, and to such approvals by any government or regulatory agency as
may be required. The Company, in its discretion, may postpone the issuance or delivery of Common Stock upon any exercise of an
Award until completion of any stock exchange listing, or the receipt of any required approval from any stock exchange or other
qualification of such Common Stock under any United States federal or state law rule or regulation as the Company may consider
appropriate, and may require any individual to whom an Award is granted, such individual’s beneficiary or legal representative,
as applicable, to make such representations and furnish such information as the Board may consider necessary, desirable or advisable
in connection with the issuance or delivery of the Common Stock in compliance with applicable laws, rules and regulations.

 

(g) Non-Uniform
Determinations. The Board’s determinations under this Plan (including, without limitation, determinations of the
persons to receive Awards, the form, term, provisions, amount and timing of the grant of such Awards and of the agreements evidencing
the same) need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards under
this Plan, whether or not such persons are similarly situated.

 

11. Adjustments
Upon Changes in Stock.

 

(a) Capitalization
Adjustments. If any change is made in the Common Stock subject to the Plan, or subject to any Award, without the receipt
of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, stock split, liquidating dividend, combination of stock, exchange of stock, change in corporate
structure or other transaction), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection
5(c), and the outstanding Awards will be appropriately adjusted in the class(es) and number of securities and price per stock of
Common Stock subject to such outstanding Awards. The Board shall make such adjustments, and its determination shall be final, binding
and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without
receipt of consideration” by the Company.)

 

    	 

    	 

    

 

(b) Dissolution
or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Awards shall terminate
immediately prior to such event.

 

(c) Asset Sale, Merger, Consolidation or Reverse Merger. In the event of a Change of Control (as defined below),
any unvested Awards shall vest immediately prior to the closing of the Change of Control, and the Board shall have the power and
discretion to provide for the Participant’s election alternatives regarding the terms and conditions for the exercise of,
or modification of, any outstanding Awards granted hereunder, provided, however, such alternatives shall not affect the then current
exercise provisions without such Participant’s consent. The Board may provide that Awards granted hereunder must be exercised
in connection with the closing of such transaction, and that if not so exercised such Awards will expire. Any such determinations
by the Board may be made generally with respect to all Participants, or may be made on a case-by-case basis with respect to particular
Participants. For the purpose of this Plan, a “Change of Control” shall have occurred in the event one or more persons
acting individually or as a group (i) acquires sufficient additional stock to constitute more than fifty percent (50%) of
(A) the total Fair Market Value of all Common Stock issued and outstanding or (B) the total voting power of all shares
of capital stock authorized to vote for the election of directors; (ii) acquires, in a twelve (12) month period, thirty-five
percent (35%) or more of the voting power of all shares of capital stock authorized to vote for the election of directors,
or alternatively a majority of the members of the board is replaced during any twelve (12) month period by directors whose appointment
was not endorsed by a majority of the members of the board; or (iii) acquires, during a twelve (12) month period, more than
forty percent (40%) of the total gross fair market value of all of the Company’s assets. Notwithstanding the foregoing, the
provisions of this Section 11(c) shall not apply to (i) any transaction involving any stockholder that individually or
as a group owns more than fifty percent (50%) of the outstanding Common Stock on the date this Plan is approved by the Company’s
stockholders, until such time as such stockholder first owns less than forty percent (40%) of the total outstanding Common Stock,
or (ii) any transaction undertaken for the purpose of reincorporating the Company under the laws of another jurisdiction,
if such transaction does not materially affect the beneficial ownership of the Company’s capital stock.

 

12. Amendment
of the Plan and Awards. 

 

(a) Amendment
of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11
relating to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders of the
Company to the extent stockholder approval is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any applicable Nasdaq or securities exchange listing requirements.

 

(b) Stockholder
Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval, including,
but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations
thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation
paid to certain executive officers.

 

(c) Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or
advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and
the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options
granted under it into compliance therewith.

 

(d) No Impairment
of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan
unless the Participant consents in writing.

 

(e) Amendment
of Awards. Subject to Section 3(b)(iii), the Board at any time, and from time to time, may amend the terms of any
one or more Awards; provided, however, that the rights under any Award shall not be impaired by any such amendment unless the applicable
Participant consents in writing.

 

    	 

    	 

    

 

13. Termination
or Suspension of the Plan. 

 

(a) Plan Term.
The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the
tenth (10th) anniversary of the date the Plan is adopted by the stockholders of the Company. No Awards may be granted under the
Plan while the Plan is suspended or after it is terminated.

 

(b) No Impairment
of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while
the Plan is in effect except with the written consent of the Participant.

 

(c) Savings
Clause. This Plan is intended to comply in all aspects with applicable laws and regulations. In case any one or more of
the provisions of this Plan shall be held invalid, illegal or unenforceable in any respect under applicable law or regulation,
the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and
the invalid, illegal or unenforceable provision shall be deemed null and void; however, to the extent permissible by law, any provision
which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Plan to be construed
in compliance with all applicable laws so as to foster the intent of this Plan.

 

14. Effective
Date of Plan. 

 

The Plan shall become
effective as determined by the Board, but no Award shall be exercised (or, in the case of a restricted stock Award, shall be granted)
unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months
before or after the date the Plan is adopted by the Board.

 

15. Choice
of Law. 

 

The law of the state
of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such
state’s conflict of laws rules.EX-4.1

 Exhibit 4.1 

EXECUTION COPY 
  

 
  

CHASE ISSUANCE TRUST 
 as
Issuing Entity 
 SUPPLEMENTAL INDENTURE 

with respect to Additional Class A(2015-2) Notes 

dated as of March 24, 2015 

to 
 CLASS A(2015-2) TERMS
DOCUMENT 
 dated as of March 13, 2015 

to 
 AMENDED AND RESTATED

 CHASESERIES INDENTURE SUPPLEMENT 

dated as of October 15, 2004 

to 
 THIRD AMENDED AND RESTATED

 INDENTURE 
 dated as
of December 19, 2007 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Indenture Trustee and Collateral Agent 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	PAGE	 
	
	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL

 
 APPLICATION
	   
 

  

			
	Section 1.1	  	Definitions	  	 	1	  
			
	Section 1.2	  	Governing Law	  	 	2	  
			
	Section 1.3	  	Counterparts	  	 	2	  
			
	Section 1.4	  	Ratification of Indenture, Indenture Supplement and Terms Document	  	 	2	  
			
	Section 1.5	  	Full Force and Effect of Terms Document	  	 	2	  
	
	ARTICLE II THE ADDITIONAL CLASS A(2015-2) NOTES	  
			
	Section 2.1	  	Terms and Issuance	  	 	3	  
			
	Section 2.2	  	Modification of Defined Terms	  	 	3	  
			
	Section 2.3	  	First Interest Payment Date	  	 	3	  
			
	Section 2.4	  	Form of Delivery of Additional Class A(2015-2) Notes; Depository; Denominations	  	 	3	  
			
	Section 2.5	  	Delivery and Payment for the Additional Class A(2015-2) Notes	  	 	4	  
			
	Section 2.6	  	Supplemental Indenture	  	 	4	  

 THIS SUPPLEMENTAL INDENTURE WITH RESPECT TO ADDITIONAL CLASS A(2015-2) NOTES (this
“Supplemental Indenture”), by and between the CHASE ISSUANCE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust
Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and collateral agent (the
“Collateral Agent”), is made and entered into as of March 24, 2015 and hereby modifies and supplements the Class A(2015-2) Terms Document (the “Terms Document”) entered into by the Issuing Entity, the Indenture
Trustee and the Collateral Agent as of March 13, 2015. 
 WHEREAS, the Issuing Entity and the Indenture Trustee have created, pursuant
to the Terms Document, a Tranche of CHASEseries Class A Notes known as the “CHASEseries Class A(2015-2) Notes.” 
 WHEREAS,
pursuant to Section 3.10(c) of the Indenture, the Issuing Entity and the Indenture Trustee shall issue the Additional Class A(2015-2) Notes (as defined below) that shall be identical in all respects to all other Outstanding Class A(2015-2)
Notes, except as noted in Section 2.2 and Section 2.3 herein, and will be equally and ratably entitled to the benefits of the Indenture and the Indenture Supplement as all other Outstanding Class A(2015-2) Notes without preference,
priority or distinction. 
 NOW, THEREFORE, in connection with the issuance of the Additional Class A(2015-2) Notes, the Issuing Entity and
the Indenture Trustee enter into this Supplemental Indenture. 
 ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 1.1 Definitions. For all purposes of this Supplemental Indenture, except as otherwise expressly provided or unless the context
otherwise requires: 
 (a) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as
well as the singular; and 
 (b) all other terms used herein which are defined in the Indenture Supplement, the Indenture, the Asset Pool
Supplement or the Terms Document, either directly or by reference therein and are not modified by Section 2.2 hereof, have the meanings assigned to them therein. 

“Additional Class A(2015-2) Notes” means the $725,000,000 principal amount Class A(2015-2) Notes described in this
Supplemental Indenture, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2015-2) Note and duly executed and authenticated in accordance with the Indenture. 

  
 1 

 “Additional Issuance Date” means March 24, 2015. 

Section 1.2 Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 1.3 Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which so executed will be
deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.4 Ratification
of Indenture, Indenture Supplement and Terms Document. As supplemented by this Supplemental Indenture, each of the Indenture, the Asset Pool Supplement, the Indenture Supplement and the Terms Document is in all respects ratified and confirmed
and the Indenture as so supplemented by the Asset Pool Supplement, the Indenture Supplement as so supplemented by the Terms Document and the Terms Document and so supplemented by this Supplemental Indenture shall be read, taken and construed as one
and the same instrument. 
 Section 1.5 Full Force and Effect of Terms Document. All terms and conditions of the Terms Document not
changed hereby shall remain in full force and effect. 
 [END OF ARTICLE I] 

  
 2 

 ARTICLE II 

THE ADDITIONAL CLASS A(2015-2) NOTES 

Section 2.1 Terms and Issuance. The Additional Class A(2015-2) Notes shall form a part of the same tranche as, be fungible with, and be
identical in all respects to, all other Outstanding Class A(2015-2) Notes, except as noted in Section 2.2 and Section 2.3 herein, and will be equally and ratably entitled to the benefits of the Indenture, the Indenture Supplement and the
Terms Document as all other Outstanding Class A(2015-2) Notes without preference, priority or distinction. The Additional Class A(2015-2) Notes shall be issued pursuant to the Indenture, the Indenture Supplement, the Terms Document and this
Supplemental Indenture on the Additional Issuance Date. 
 Section 2.2 Modification of Defined Terms. Upon issuance of the Additional
Class A(2015-2) Notes, all references in the Terms Document to the Class A(2015-2) Notes shall include the Additional Class A(2015-2) Notes and each of the following terms, as used in the Terms Document, shall have the respective meanings set forth
below: 
 “Controlled Accumulation Amount” means $177,083,333.34; provided, however, if the Accumulation
Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date with respect to the Class A(2015-2) Notes will be the amount
specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
 “Initial Dollar Principal
Amount” means $2,125,000,000. 
 “Stated Principal Amount” means $2,125,000,000. 

Section 2.3 First Interest Payment Date. The amount of interest due on April 15, 2015, the first Interest Payment Date with
respect to the Additional Class A(2015-2) Notes, shall be $1,024,666.67. On the Additional Issuance Date, the purchasers of the Additional Class A(2015-2) Notes will pay the Issuing Entity $352,229.17, which represents accrued interest from
March 13, 2015 to but excluding the Additional Issuance Date. 
 Section 2.4 Form of Delivery of Additional Class A(2015-2) Notes;
Depository; Denominations. 
 (a) The Additional Class A(2015-2) Notes shall each be delivered in the form of a global Registered Note
as provided in Sections 2.02 and 3.01(i) of the Indenture, respectively. 
 (b) The Depository for the Additional Class A(2015-2) Notes
shall be The Depository Trust Company, and the Additional Class A(2015-2) Notes shall initially be registered in the name of Cede & Co., its nominee. 

  
 3 

 (c) The Additional Class A(2015-2) Notes will be issued in minimum denominations of $100,000 and
integral multiples of $1,000 in excess of $100,000. 
 Section 2.5 Delivery and Payment for the Additional Class A(2015-2) Notes. The
Issuing Entity shall execute and deliver the Additional Class A(2015-2) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Additional Class A(2015-2) Notes when authenticated, each in accordance with
Section 3.03 of the Indenture. 
 Section 2.6 Supplemental Indenture. The Issuing Entity may enter into a supplemental indenture
with respect to the Class A(2015-2) Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit enhancement for the Class A(2015-2) Notes
shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such change in credit enhancement will not
result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 
 [END OF ARTICLE II] 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the day and year first above written. 
  

			
	CHASE ISSUANCE TRUST
		
	By:		CHASE BANK USA,
			NATIONAL ASSOCIATION,
			as Beneficiary and not in its individual capacity
		
	By:		 /s/ David A. Penkrot

	Name:		David A. Penkrot
	Title:		Executive Director
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as Indenture Trustee and Collateral Agent
		
	By:		 /s/ Cheryl C. Zimmerman

	Name:		Cheryl C. Zimmerman
	Title:		Vice President

 Supplemental Indenture 

CHASEseries Additional Class A(2015-2) REOPEN Notes Issuance

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