Document:

Exhibit 10.41

 

 

INDEPENDENT DIRECTOR AGREEMENT

 

THIS INDEPENDENT DIRECTOR AGREEMENT is made
effective as of the 11th of November, 2016 (the “Agreement”), between PAYMENT DATA SYSTEMS, INC.,
a Nevada corporation with an address at 12500 San Pedro, Suite 120, San Antonio, Texas, 78216 (the “Company”),
and Steve Huffman (“Director”).

 

WHEREAS, it is essential to the Company to
retain and attract as directors the most capable persons available to serve on the board of directors of the Company (the “Board”);
and

 

WHEREAS, the Company believes that Director
possesses the necessary qualifications and abilities to serve as a director of the Company and to perform the functions and meet
the Company’s needs related to its Board, and

 

WHEREAS, the Company appointed the Director
effective as of the date hereof (the “Effective Date”) and desires to enter into an agreement with the Director
with respect to such appointment; and

 

WHEREAS, the Director is willing to accept
such appointment and to serve the Company on the terms set forth herein and in accordance with the provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises contained herein, the benefits to be derived by each party hereunder and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. Position.  Subject to the
terms and provisions of this Agreement, the Company shall cause the Director to be appointed, and the Director hereby agrees to
serve the Company in such position upon the terms and conditions hereinafter set forth, provided, however, that the Director’s
continued service on the Board after the initial three-year term on the Board, which term is subject to the Company’s bylaws,
as amended, and as may be subsequently amended, and pursuant the Company’s bylaws, state or federal law or the rules of any
stock exchange on which the Company’s securities are listed, shall be subject to any necessary approval by the Company’s
stockholders.

 

2. Service.  Director will
serve as a director of the Company and perform all duties as a director of the Company, including without limitation (a) attending
meetings of the Board, (b) serving on one or more committees of the Board (each a “Committee”) and attending
meetings of each Committee of which Director is a member, and (c) using reasonable efforts to promote the business of the Company.
The Company currently intends to hold at least one in-person regular meeting of the Board and each Committee each quarter, together
with additional meetings of the Board and Committees as may be required by the business and affairs of the Company. In fulfilling
his responsibilities as a director of the Company, Director agrees that he shall act honestly and in good faith with a view to
the best interests of the Company and exercise the care, diligence and skill that a reasonably prudent person would exercise in
comparable circumstances.

 

3. Compensation.

 

(a) Cash Compensation. The Director shall receive
one thousand dollars ($1,000) each quarter in arrears for participation in quarterly Board and Committee meetings, including the
annual stockholders’ meeting. There will be no additional compensation for ad hoc or preparatory meetings or for being the
chair of a Committee, other than the Audit Committee and only if appointed the Chair of the audit committee or for being a regular
or non-Chair member of the audit committee and holding a valid CPA license. The Chair of the Audit Committee will receive fifteen
thousand dollars ($15,000) upon timely, including extensions granted by the SEC, and compliant filing of the 10K each year and
any regular, non-Chair audit committee member holding a valid CPA license will receive five thousand dollars ($5,000) upon timely,
including extensions granted by the SEC, and compliant filing of the 10K each year.

 

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(b) Restricted Stock Units.  The
Director shall receive sixty-six thousand six hundred and sixty-seven (66,667) restricted stock units convertible into the Company’s
common stock at the start of the Directorship Term, pursuant and subject to the Company’s 2015 Equity Incentive Plan.  Such
shares shall vest in 3 stages: (1) 22,223 on January 1, 2017, (2) 22,222 on January 1, 2018, and (3) 22,222 on January 1, 2019.
Notwithstanding the foregoing, if the Director ceases to be a member of Board at any time during the vesting period for any reason
(such as resignation, withdrawal, death, disability or any other reason), then any unvested shares shall be irrefutably forfeited.
 Furthermore, the Director agrees that the shares shall be subject to any “lock up” agreement required to be signed
by the Company’s officers in connection with any financing.

 

(c) Independent Contractor.  The
Director’s status during the Directorship Term shall be that of an independent contractor and not, for any purpose, that
of an employee or agent with authority to bind the Company in any respect. All payments and other consideration made or provided
to the Director under this Section 3 shall be made or provided without withholding or deduction of any kind, and the Director shall
assume sole responsibility for discharging all tax or other obligations associated therewith.

 

(d) Expense Reimbursements.  Upon
submission of appropriate receipts, invoices or vouchers as may be reasonably required by the Company, the Company will reimburse
Director for all reasonable out-of-pocket expenses incurred in connection with the performance of Director’s duties under
this Agreement during the Directorship Term. Any reimbursements for out-of-pocket expenses of the Director in excess of $500.00
must be approved in advance by the Company.

 

4. Directorship Term.  The
“Directorship Term,” as used in this Agreement, shall mean the period commencing on the Effective Date and terminating
on the earliest of the following to occur: (a) the death or disability of the Director; (b) the termination of the Director from
membership on the Board by the mutual agreement of the Company and the Director; (c) the removal of the Director from the Board
by the majority stockholders of the Company; and (d) the resignation by the Director from the Board.

 

5. Director’s Representation and Acknowledgment.  The
Director represents to the Company that the execution and performance of this Agreement shall not be in violation of any agreement
or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any prior
or current employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred
to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any stockholder
of the Company or any of their respective affiliates with regard to this Agreement.

 

6. Director Covenants.

 

(a) Unauthorized Disclosure.  The
Director agrees and understands that in the Director’s position with the Company, the Director has been and will be exposed
to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information,
business and marketing plans, strategies, customer information, other information concerning the Company’s products, promotions,
development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company
to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the
Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any
third person or entity without the prior written consent of the Company; provided, however, that (i) the Director shall have no
such obligation to the extent such information is or becomes publicly known or generally known in the Company’s industry
other than as a result of the Director’s breach of his obligations hereunder and (ii) the Director may, after giving prior
notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable
laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical
or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company and/or
destroy at the Company’s direction all property, keys, notes, memoranda, writings, lists, files, reports, customer lists,
correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data, other product or document, and any summary
or compilation of the foregoing, in whatever form, including, without limitation, in electronic form, which has been produced by,
received by or otherwise submitted to the Director in the course or otherwise as a result of the Director’s position with
the Company during or prior to the Directorship Term, provided that the Company shall retain such materials and make them available
to the Director if requested in connection with any litigation against the Director under circumstances in which (i) the Director
demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation and
(ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

 

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(b) Non-Solicitation.  During the
Directorship Term and for a period of two (2) years thereafter, the Director shall not interfere with the Company’s relationship
with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term and/or
at any time during the one year period prior to the termination of the Directorship Term, was an employee or customer of the Company
or otherwise had a material business relationship with the Company.

 

(c) Non-Compete. The Director agrees that during
the Directorship Term and for a period of two (2) years thereafter, he shall not in any manner, directly or indirectly, through
any person, firm or corporation, alone or as a member of a partnership or as an officer, director, stockholder, investor or employee
of or consultant to any other corporation or enterprise; engage in the business of developing, marketing, selling or supporting
technology to or for businesses in which the Company engages in or in which the Company has an actual intention, as evidenced by
the Company's written business plans, to engage in, within any geographic area in which the Company is then conducting such business.  Nothing
in this Section 6 shall prohibit the Director from being (i) a stockholder in a mutual fund or a diversified investment
company or (ii) a passive owner of not more than three percent of the outstanding stock of any class of securities of a corporation,
which are publicly traded, so long as the Director has no active participation in the business of such corporation.

 

(d) Code of Ethics and Insider Trading Guidelines.
 Director agrees to comply with the Company’s Code of Ethics and to execute the Company’s Insider Trading Guidelines
in Attachments A and B, respectively. The Code of Ethics and Insider Trading Guidelines may either or both be amended by the Company
from time to time.

 

7. Director and Officer Liability Insurance.
Director shall be covered by the Company’s director and officer’s liability insurance policy or policies, in accordance
with its or their terms, to the maximum extent of the coverage available for any of the Company’s directors or officers.

 

8. Limitation of Liability; Right to Indemnification.
Director shall be entitled to limitations of liability and the right to indemnification against expenses and damages in connection
with claims against Director relating to his service to the Company to the fullest extent permitted by the Company’s Certificate
of Incorporation and Bylaws (as such documents may be amended from time to time) and other applicable law.

 

9. Amendments and Waiver. No supplement,
modification or amendment of this Agreement will be binding unless executed in writing by both parties. No waiver of any provision
of this Agreement on a particular occasion will be deemed or will constitute a waiver of that provision on a subsequent occasion
or a waiver of any other provision of this Agreement.

 

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10. Binding Effect, Assignments. This
Agreement will be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and
assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign
all or any portion of this Agreement without the prior written consent of the other party.

 

11. Severability. The provisions of
this Agreement are severable, and any provision of this Agreement that is held by a court of competent jurisdiction to be invalid,
void, or otherwise unenforceable in any respect will not affect the validity or enforceability of any other provision of this Agreement.

 

12. Governing Law. This Agreement will
be governed by and construed and enforced in accordance with the laws of the State of Nevada applicable to contracts made and to
be performed in that state without giving effect to the principles of conflicts of laws.

 

13. Entire Agreement. This Agreement
constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations,
prior discussions and prior agreements and understanding relating to such subject matter.

 

14. Miscellaneous. This Agreement may
be executed by the Company and Director in any number of counterparts, each of which shall be deemed an original instrument, but
all of which together shall constitute but one and the same instrument. Any party may execute this Agreement by facsimile signature
and the other party will be entitled to rely on such facsimile signature as evidence that this Agreement has been duly executed
by such party. Any party executing this Agreement by facsimile signature will promptly forward to the other party an original signature
page by overnight courier. Director acknowledges that this Agreement does not constitute a contract of employment and does not
imply that the Company will continue his service as a director for any period of time.

 

Signature Page Follows.

 

 

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IN WITNESS WHEREOF, the parties have executed
this Independent Director Agreement as of the date shown above.

 

 

 

Payment Data Systems, Inc.

 

 

By: /s/ Michael R. Long____________

Name: Michael R. Long

Title: Chairman of the Board of Directors

 

 

 

 

 

By: /s/ Steve Huffman_____________

Name: Steve Huffman

 

 

 

 

 

 

 

 

 

 

 

 

 

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Attachment A

 

Payment Data Systems, Inc.

 

Code of Ethics

 

 

 

In accordance with the requirements of the U.S. Securities and Exchange
Commission, the Board of Directors of Payment Data Systems, Inc. (with its subsidiaries, the “Company”) has adopted
this Code of Ethics (this “Code”) in order to:

 

		·	encourage honest and ethical conduct, including fair dealing and the ethical handling of conflicts
of interest;

		·	encourage full, fair, accurate, timely and understandable disclosure;

		·	encourage compliance with applicable laws and governmental rules and regulations;

		·	ensure the protection of the Company's legitimate business interests, including corporate opportunities,
assets and confidential information;

		·	deter wrongdoing; and

		·	ensure accountability for adherence to the Code.

 

All directors, officers and employees of the Company are required
to be familiar with the Code, comply with its provisions and report any suspected violations as described below in Section 6, Reporting
and Accountability. The Code will be strictly enforced and violations will be dealt with immediately. Violations that involve illegal
behavior will be reported to the appropriate authorities.

 

This Code covers a wide range of business practices and procedures.
It does not cover every issue that may arise, but it sets out basic principles to guide all employees, officers and directors of
the Company. All such persons must conduct themselves accordingly and seek to avoid even the appearance of improper behavior. Those
who violate the standards in this Code or who fail to cooperate with management directions given to effect compliance with this
Code may be subject to disciplinary action, possibly including termination of employment. For guidance with respect to issues not
addressed in this Code, employees should follow the Company’s internal policies and procedures.

 

If you have any questions regarding this Code, you should address
these questions to your supervisor, or to the general counsel or other person identified by the Company as its compliance officer
(the “Compliance Officer”). The Code is enforced by the General Counsel where the suspected violation involves a person
who is not a director or officer. The audit committee, or, if there is no audit or another independent committee, the Board of
Directors enforces any suspected violations involving a director or officer.

 

1. Honest and Ethical Conduct

 

Each director, officer and employee owes a duty to the Company to
act with integrity. Integrity requires, among other things, being honest and ethical. This includes the ethical handling of actual
or apparent conflicts of interest between personal and professional relationships. Deceit and subordination of principle are inconsistent
with integrity.

 

Each director, officer and employee must:

 

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		·	Act with integrity, including being honest and ethical while still maintaining the confidentiality
of information where required or consistent with the Company’s policies.

		·	Observe both the form and spirit of laws and governmental rules and regulations and accounting
standards.

		·	Adhere to a high standard of business ethics.

		·	Accept no improper or undisclosed material personal benefits from third parties as a result of
any transaction or transactions of the Company.

 

2. Conflicts of Interest

 

A “conflict of interest” arises when a person’s
loyalties or actions are divided between the interests of the Company and those of another, such as a competitor, supplier or customer,
or personal business. A conflict of interest can arise when an employee takes actions or has interests that may make it difficult
to perform his or her work objectively and effectively. A conflict of interest may also arise when an individual, or members of
his or her family, receives an improper personal benefit as a result of his or her position in, or relationship with, the Company.
Moreover, the appearance of a conflict of interest alone can adversely affect the Company and its relations with business partners,
customers, suppliers and employees.

 

Employees are expected to use good judgment, to adhere to high ethical
standards and to avoid situations that create an actual or potential conflict of interest. It is almost always a conflict of interest
for employees to work simultaneously for a competitor, customer or supplier. In this regard, Company personnel shall not have any
undisclosed financial interest in any competitor, supplier, customer, or strategic partner if that interest would create a conflict
of interest with the Company. If there is such an interest, the employee should disclose the nature of the interest to the human
resources department or the general counsel, as appropriate; provided, however, that employees may maintain small investments in
publicly held companies in which an employee has no influence or control.

 

A conflict of interest can also arise with respect to employment
of relatives and persons with close personal relationships. If a director, officer or employee (or someone with whom the person
has a close relationship (e.g., a family member or close companion) has a financial or employment relationship with an actual or
potential competitor, supplier or customer, the director, officer or employee must disclose this fact in writing to the Compliance
Officer. The Company may take any action that it deems necessary in its sole discretion to avoid or remedy an actual, prospective
or perceived conflict of interest, including a reassignment of some or all of the employee’s duties or change of the employee’s
position.

 

Loans by the Company to, or guarantees by the Company of obligations
of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients
of such loans or guarantees, depending on the facts and circumstances. Loans by the Company to, or guarantees by the Company of
obligations of, any director or officer (or their family members) are expressly prohibited unless approved by the Board of Directors.

 

A conflict of interest may not always be clear; therefore, you should
consult with the Compliance Officer if you have any questions. Any employee who becomes aware of a conflict or a potential conflict
should bring it to the attention of the Compliance Officer.

 

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3. Disclosure

 

Each director, officer and employee, to the extent involved in the
Company’s disclosure process, including the Chief Executive Officer, the Chief Financial Officer, and the Controller (the
“Senior Financial Officers”) and the General Counsel, is required to be familiar with the Company’s disclosure
controls and procedures applicable to him or her so that the Company’s public reports and documents filed with the Securities
and Exchange Commission (the “SEC”) comply in all material respects with the applicable federal securities laws and
SEC rules. In addition, each such person having direct or supervisory authority regarding these SEC filings or the Company’s
other public communications concerning its general business, results, financial condition and prospects should, to the extent appropriate
within his or her area of responsibility, consult with other Company officers and employees and take other appropriate steps regarding
these disclosures with the goal of making full, fair, accurate, timely and understandable disclosure.

 

Each director, officer and employee, to the extent involved in the
Company’s disclosure process, including without limitation the Senior Financial Officers and the General Counsel, must:

 

		·	Familiarize himself or herself with the disclosure requirements applicable to the Company as well
as the business and financial operations of the Company.

		·	Not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others,
whether within or outside the Company, including to the Company's independent auditors, governmental regulators and self-regulatory
organizations.

 

4. Compliance

 

It is the Company’s policy to comply with all applicable laws,
rules and regulations. It is the personal responsibility of each employee, officer and director to adhere to the standards and
restrictions imposed by those laws, rules and regulations in the performance of their duties for the Company, including those relating
to accounting and auditing matters and insider trading. Other policies issued by the Company also provide guidance as to certain
of the laws, rules and regulations that apply to the Company’s activities.

 

5. Insider Trading

 

Generally, it is against Company policy for any individual to profit
from undisclosed information relating to the Company or any other company in violation of insider trading or other laws. Inside
information is any material, non-public information a reasonable investor is likely to consider important when making an investment
decision. Anyone who is aware of material non-public information relating to the Company, our business partners, or other companies
may not use the information to trade directly or indirectly or tip others to trade in stock or other securities of that company
in violation of the federal securities laws.

 

If you are uncertain about the legal rules involving your purchase
or sale of any Company securities or any securities in companies that you are familiar with by virtue of your work for the Company,
you should consult with the Compliance Officer before making any such purchase or sale. You should also consult the Company’s
Insider Trading Policy which applies to all directors, officers and employees as well as consultants and independent contractors
of the Company and is hereby incorporated by reference.

 

6. Reporting and Accountability

 

The Board of Directors has the authority to interpret this Code
in any particular situation. Any director, officer or employee who becomes aware of any violation of this Code is required to notify
the audit committee, if there is one or if not, the full Board or the Compliance Officer promptly.

 

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Any questions relating to how these policies should be interpreted
or applied should be addressed to the Compliance Officer or the audit committee or Board, as applicable. Any material transaction
or relationship that could reasonably be expected to give rise to a conflict of interest, as discussed in Section 2 of this Code,
should be discussed with the Compliance Officer or the audit committee or Board, as applicable. A director, officer or employee
who is unsure of whether a situation violates this Code should discuss the situation with the Compliance Officer or the audit committee,
if there is one or if not, the full Board, as applicable.

 

Each director, officer or employee must:

 

		·	Notify the appropriate contact promptly of any existing or potential violation of this Code.

		·	Cooperate in any internal investigation of misconduct under this Code.

		·	Not retaliate against any other director, officer or employee for good faith reports of known or
suspected acts of misconduct or other violations of this Code.

 

The Company will follow the following procedures in investigating
and enforcing this Code and in reporting on the Code:

 

		·	The Compliance Officer, the audit committee, if there is one or if not, the full Board, as the
case may be, will take all appropriate action to investigate any violations reported. In addition, the audit committee, Board or
the Compliance Officer, as appropriate, shall report each violation and alleged violation involving a director or an executive
officer to the Chairperson of the Board. To the extent he or she deems appropriate, the Chairperson of the Board shall participate
in any investigation of a director or executive officer. After the conclusion of an investigation of a director or executive officer,
the conclusions shall be reported to the entire Board.

		·	The Board will conduct such additional investigation as it deems necessary. If the Board determines
that a director or executive officer has violated this Code, it will take such disciplinary or preventive action as deemed appropriate,
up to and including dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other
appropriate law enforcement authorities.

		·	The Company will make every effort to protect the integrity of every investigation, including protecting
reporters and witnesses from harassment, intimidation and retaliation, keep evidence from being destroyed, ensure testimony is
honest and identify root causes. The Company will make every effort to keep the identity of every reporter private and to secure
any data relating to the investigation. Also, the Company may require witnesses to maintain a particular investigation and their
role in strict confidence.

 

7. Corporate Opportunities

 

Employees, officers and directors are prohibited from taking (or
directing to a third party) a business opportunity that is discovered through the use of corporate property, information or position,
unless the Company has already been offered the opportunity and turned it down. More generally, employees, officers and directors
are prohibited from using corporate property, information or position for personal gain and from competing with the Company.

 

Sometimes the line between personal and Company benefits is difficult
to draw, and sometimes there are both personal and Company benefits in certain activities. Employees, officers and directors who
intend to make use of Company property or services in a manner not solely for the benefit of the Company should consult beforehand
with the Compliance Officer, the audit committee or the Board.

 

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8. Confidentiality

 

In carrying out the Company’s business, employees, officers
and directors often learn confidential or proprietary information about the Company, its customers, suppliers, or joint venture
parties. Employees, officers and directors must maintain the confidentiality of all information so entrusted to them, except when
disclosure is authorized or legally mandated. Confidential or proprietary information of our Company, and of other companies, includes
any non-public information that would be harmful to the relevant company or useful or helpful to competitors if disclosed.

 

9. Fair Dealing

 

We seek to succeed through honest business competition. We do not
seek competitive advantages through illegal or unethical business practices. Each employee, officer and director should endeavor
to deal fairly with the Company’s customers, consultants, service providers, suppliers, competitors and employees. No employee,
officer or director should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts, or any unfair dealing practice.

 

10. Protection and Proper Use of Company Assets

 

All employees, officers and directors should protect the Company’s
assets and ensure their efficient use. All Company assets should be used only for legitimate business purposes.

 

11. Payments to Government Personnel

 

The United States Foreign Corrupt Practices Act prohibits giving
anything of value, directly or indirectly, to officials of foreign governments or foreign political candidates in order to obtain
or retain business. It is strictly prohibited to make illegal payments to government officials of any country.

 

In addition, the United States government has a number of laws and
regulations regarding business gratuities which may be accepted by U.S. government personnel. The promise, offer or delivery to
an official or employee of the U.S. government of a gift, favor, or other gratuity in violation of these rules would not only violate
Company policy but could also be a criminal offense. State and local governments, as well as foreign governments, may have similar
rules. It is the Company’s policy to not provide any gifts, favors or gratuities to any government official.

 

12. Amendment, Modification and Waiver

 

This Code may be amended or modified by the Company’s Board
of Directors. Any employee or director who believes that a waiver may be called for should discuss the matter with the Compliance
Officer, the audit committee, if there is one or if not, the full Board. Waivers of this code may only be granted by the Board
of Directors or a committee of the Board of Directors with specific delegated authority to grant such waivers at their sole discretion.
Any waivers involving a director or executive officer may only be granted by the Board of Directors at its sole discretion. Waivers
will be disclosed as required by the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder and any
applicable rules relating to the maintenance of the listing of our securities on any stock exchange. The company will review this
Code regularly to assess its utility given the changing demands of the company and the scale and scope of its operations.

 

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[acknowledgement on following page]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ACKNOWLEDGEMENT

 

 

 

I acknowledge that I have read and understood the Payment Data Systems
Code of Ethics and will comply with its terms and conditions. I understand that if I have any questions regarding this policy,
I will direct them to the Company’s General Counsel.

 

 

Signed: /s/ Steve Huffman_______

 

Name: Steve Huffman

 

Dated: November 11, 2016

 

 

 

 

 

 

 

 

 

 

 

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Attachment B

 

Payment Data Systems, Inc.

 

Insider Trading Policy

 

_________________________________________________________________________

 

THIS POLICY HAS BEEN ADOPTED BY THE BOARD OF 

 

DIRECTORS OF Payment Data Systems, Inc. 

 

AND IS APPLICABLE TO ALL DIRECTORS, OFFICERS,

 

EMPLOYEES AND CONSULTANTS OF THE COMPANY.

 

 

 

The Need for a Policy Statement

 

The purchase or sale of securities while possessing
material nonpublic information or the selective disclosure of such information to others who may trade is prohibited by federal
and state laws.

 

The Company has adopted the following policy
with respect to purchases and sales of the Company's securities by directors, officers, employees and consultants who have material
nonpublic information about the Company and about other firms with which it works closely. For purposes of this policy, outside
directors and consultants are included within the term "employee." Each employee is responsible for ensuring that he
or she does not violate federal or state securities laws or the Company's policy concerning securities trading. This policy is
designed to promote compliance with the federal securities laws and to protect the Company, as well as those persons, from the
very serious liabilities and penalties that can result from violations of these laws.

 

Potential penalties for insider trading violations
include civil fines for up to three times the profit gained or loss avoided by the trading, criminal fines of up to $1,000,000.00
and jail sentences of up to ten (10) years. In addition, a company whose employee violates the insider trading prohibitions may
be liable for a civil fine of up to the greater of $1,000,000.00 and three times the profit gained or loss avoided as a result
of the employee's insider trading violations.

 

The Company's Policy

 

Company employees may not trade in the stock
or other securities of any firm when they know "material nonpublic information" about the firm. This restriction on "insider
trading" is not limited to trading in the Company's securities. It includes trading in the securities of other firms, such
as customers or suppliers of the Company and those with which the Company may be negotiating major transactions, such as an acquisition,
investment or sale. Information that is not material to the Company may nevertheless be material to one of those other firms.

 

"Trading" includes purchases and sales
of stock, bonds, debentures, options, puts, calls and other similar securities. This policy includes trades made pursuant to any
investment direction under employee benefit plans as well as trades in the open market. For example, sales of stock acquired through
any employee stock purchase plan or transactions in the self-directed portion of any retirement or pension plan are covered by
this policy. This policy also applies to the exercise of options with an immediate sale of some or all of the shares through a
broker.

 

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Employees must not pass material nonpublic information
on to others or recommend to anyone the purchase or sale of any securities on the basis of such information. This practice, known
as "tipping," also violates the securities laws and can result in the same civil and criminal penalties that apply to
insider trading, whether or not the employee derives any benefit from another's actions.

 

The same restrictions apply to family members
and other persons living in an employee's household. Employees are expected to be responsible for the compliance of the members
of their immediate family and personal household. Transactions that may be necessary or justifiable for independent reasons (such
as the need to raise money for an emergency expenditure) are no exception to the policy.

 

Because of the unique potential for abuse of
material nonpublic information, it is also the Company's policy that directors, officers and employees may not engage in short-term
speculative transactions involving "trading" the Company's securities. This would include short sales and buying or selling
puts or calls. In addition, the purchase of the Company's securities on margin (except for the exercise of employee stock options)
is prohibited.

 

Definition of Material Nonpublic Information

 

Material Information. Information is
material if there is a substantial likelihood that a reasonable investor would consider it important in deciding whether to buy,
hold or sell a security. Therefore, any information that could reasonably be expected to affect the price of the security is material.
Common examples of material information are:

 

	*		Projections of future earnings or losses or changes in such projections.

 

	*		Actual changes in earnings.

 

	*		A pending or prospective joint venture, merger, acquisition, tender offer or financing.

 

	*		A significant sale of assets or disposition of a subsidiary.

 

	*		A gain or loss of a material contract, customer or supplier or material changes in
the profitability status of a current contract.

 

	*		The development or release of a new product or service.

 

	*		Changes in a previously announced schedule for the development or release of a new
product or service.

 

	*		Changes in management, other major personnel changes or labor negotiations.

 

	*		Significant increases or decreases in dividends or the declaration of a stock split
or the offering of additional securities.

 

	*		Financial liquidity problems.

 

    	 	14 of 17	 

Initials:_____
 

     

    

Both positive and negative information can be
material. Because trading that receives scrutiny will be evaluated after the fact with the benefit of hindsight, questions concerning
the materiality of particular information should be resolved in favor of materiality, and trading should be avoided.

 

Nonpublic Information. Nonpublic information
is information that is not generally known or available to the public. Information is considered to be available to the public
only when it has been released to the public through appropriate channels, e.g., by means of a press release or a statement from
one of the corporation's senior officers, and enough time has elapsed to permit the investment market to absorb and evaluate the
information. As a general rule, information is considered nonpublic until the second business day after public disclosure.

 

Unauthorized Disclosure

 

Maintaining the confidentiality of Company information
is essential for competitive, security and other business reasons, as well as to comply with securities laws. All information an
employee learns about the Company or its business plans in connection with his or her employment is potentially "inside"
information until publicly disclosed or made available by the Company. The employee should treat all such information as confidential
and proprietary to the Company. The employee may not disclose it to others, such as family members, other relatives, or business
or social acquaintances, who do not need to know it for legitimate business reasons.

 

Also, the timing and nature of the Company's
disclosure of material information to outsiders is subject to legal rules the breach of which could result in substantial liability
to the employee, the Company and its management. Accordingly, it is important that only specifically designated representatives
of the Company discuss the Company and its affiliates and subsidiaries with the news media, securities analysts and investors.
Inquiries of this type received by any employee should be referred to the Company’s Chief Executive Officer.

 

Additional Restrictions and Requirements

 

The following additional procedures are designed
to help prevent inadvertent violations and avoid even the appearance of improper transactions in the Company's securities. Employees
who wish to trade in the Company's securities should trade only during the period beginning one (1) trading day after the release
of quarterly earnings and extending until the fifteenth (15th) day of the third month of the quarter. Of course, even during this
trading window period, an employee may not trade if he or she is aware of any material nonpublic information. If an employee believes
there are compelling reasons why he or she needs to trade in the Company's securities during periods other than the recommended
"windows," the employee needs to consult the Company’s General Counsel.

 

Systematic Trading Plans

 

Officers and other insiders who wish to enter
into arrangements for systematic trading of the Company's securities under a systematic trading plan pursuant to Rule 10b5-1 are
permitted to do so upon the approval of the Company’s Board of Directors. The trading plan must be entered into by an insider
during an open trading window period as defined above while he or she is unaware of any material nonpublic information and must
be in compliance with the Rules and Regulations of the Securities and Exchange Commission and all other applicable federal and
state laws.

 

    	 	15 of 17	 

Initials:_____
 

     

    

Personal Responsibility; Assistance

 

Each employee should remember that the ultimate
responsibility for adhering to this policy and avoiding improper trading rests with the employee. In this regard, it is important
that each employee use his or her best judgment. If an employee violates this policy, the Company may take disciplinary action,
including dismissal for cause. Compliance with this policy by all employees is of the utmost importance both for the employee and
for the Company. Any person who has any questions about the application of this policy to any particular case may obtain additional
guidance from the Company’s General Counsel.

 

 

 

[acknowledgement on following page]

 

 

 

 

 

 

 

 

 

 

    	 	16 of 17	 

Initials:_____
 

     

    

ACKNOWLEDGEMENT

 

 

 

 

I acknowledge that I have read and understood the Payment Data Systems
Insider Trading Policy and will comply with its terms and conditions, except for the additional restriction limiting my trading
of the Company’s securities to designated time periods referred to as trading window periods. I understand that if I have
any questions regarding this policy, I will direct them to the Company’s General Counsel.

 

 

Signed: /s/ Steve Huffman_______

 

Name: Steve Huffman

 

Dated: November 11, 2016

 

 

 

 

 

 

 

 

 

 

17 of 17EX-4.1

 EXHIBIT 4.1 

CITIBANK CREDIT CARD ISSUANCE TRUST 

Citiseries 

Class 2017-A3 Notes

Issuer Certificate 
 Pursuant to
Sections 202 and 301(h) of the Indenture 
 Reference is made to the Second Amended and Restated Indenture dated as of
September 26, 2000, as amended and restated as of August 9, 2011, and as further amended and restated as of November 10, 2016, between Citibank Credit Card Issuance Trust (the “Issuer”) and Deutsche Bank Trust Company
Americas, as trustee (as so further amended and restated, the “Indenture”). Capitalized terms used herein that are not otherwise defined have the meanings set forth in the Indenture. All references herein to designated Sections are to the
designated Sections of the Indenture. 
 Section 301(h) provides that the Issuer may from time to time create a tranche of
Notes either by or pursuant to an Issuer Certificate setting forth the principal terms thereof. Pursuant to this Issuer Certificate, there is hereby created a tranche of Notes having the following terms: 

Series Designation: Citiseries. This series is included in Group 1. 

Tranche Designation: $1,900,000,000 1.92% Class 2017-A3 Notes of April 2020 (Legal Maturity Date April 2022) (hereinafter, the
“Class 2017-A3 Notes”) 
 Currency: The Class 2017-A3 Notes will be payable, and denominated, in Dollars. 

Denominations: The Class 2017-A3 Notes will be issuable in minimum denominations of $100,000 and multiples of $1,000 in excess of that
amount. 
 Issuance Date: April 11, 2017 

Initial Principal Amount: $1,900,000,000 
 Issue
Price: 99.97119% 
 Interest Rate: 1.92% per annum, calculated on the basis of a 360 day year of twelve 30 day months. 

Scheduled Interest Payment Dates: The 7th day of each April and October, beginning October 2017. 

Each payment of interest on the Class 2017-A3 Notes will include all interest accrued from and including the preceding Interest Payment Date —
or, for the first interest period, from and including the Issuance Date — to and including the day preceding the current Interest Payment Date, plus any interest accrued but not previously paid. 

 The first deposit targeted to be made to the Interest Funding sub-Account for the Class 2017-A3
Notes will be on the May 6, 2017 Interest Deposit Date and in an amount equal to $2,634,666.67. 
 Expected Principal Payment Date:
April 7, 2020 
 Legal Maturity Date: April 7, 2022 

Monthly Principal Date: For the month in which the Expected Principal Payment Date occurs, April 7, 2020, and for each other month, the 7th day of
such month, or if such day is not a Business Day, the next following Business Day. 
 Required Subordinated Amount of Class B Notes:
$113,675,290.00 
 Required Subordinated Amount of Class C Notes: $151,566,990.00 

Controlled Accumulation Amount: $158,333,333.33 

Form of Notes: The Class 2017-A3 Notes will be issued as Global Notes. The Global Notes will initially be registered in the name of
Cede & Co., as nominee of The Depository Trust Company, and will be exchangeable for individual Notes only in accordance with the provisions of Section 204(c). 

Additional Issuances of Class 2017-A3 Notes: The Issuer may at any time and from time to time issue additional Class 2017-A3 Notes, subject
to the satisfaction of (i) the conditions precedent set forth in Section 311(a) and (ii) the following conditions: 
  

	 	(a)	The Issuer has obtained written confirmation from each Rating Agency that there will be no Ratings Effect with respect to the then outstanding Class 2017-A3 Notes as a result of the issuance of such additional
Class 2017-A3 Notes; 

  

	 	(b)	As of the date of issuance of the additional Class 2017-A3 Notes, all amounts due and owing to the Holders of the then outstanding Class 2017-A3 Notes have been paid and there is no Nominal Liquidation
Amount Deficit with respect to the then outstanding Class 2017-A3 Notes; 

  

	 	(c)	The additional Class 2017-A3 Notes will be fungible with the original Class 2017-A3 Notes for federal income tax purposes; 

 

	 	(d)	If Holders of the then outstanding Class 2017-A3 Notes have the benefit of a Derivative Agreement, the Issuer will have obtained a Derivative Agreement for the benefit of the Holders of the additional
Class 2017-A3 Notes; and 

  

	 	(e)	The ratio of the Controlled Accumulation Amount to the Initial Dollar Principal Amount of the Class 2017-A3 Notes, including the additional Class 2017-A3 Notes, will be equal to the ratio of the Controlled
Accumulation Amount (before giving effect to the additional issuance) to the Initial Dollar Principal Amount of the Class 2017-A3 Notes, excluding the additional Class 2017-A3 Notes. 

  
 2 

 As of the date of issuance of additional Class 2017-A3 Notes, the Outstanding Dollar Principal Amount and
Nominal Liquidation Amount of the Class 2017-A3 Notes will be increased to reflect the Initial Dollar Principal Amount of the additional Class 2017-A3 Notes. 

Any outstanding Class 2017-A3 Notes and any additional Class 2017-A3 Notes will be equally and ratably entitled to the benefits of the
Indenture without preference, priority or distinction. 
 Optional Redemption Provisions other than Section 1202 “Clean-Up Call”: None

 Additional Early Redemption Events or changes to Early Redemption Events: None 

Additional Events of Default or changes to Events of Default: None 

Business Day: means any day other than (a) a Saturday or Sunday or (b) any other day on which national banking associations or state banking
institutions in New York, New York or South Dakota, or any other state in which the principal executive offices of any Additional Seller are located, are authorized or obligated by law, executive order or governmental decree to be closed. 

Securities Exchange Listing: None 

  
 3 

 The Class 2017-A3 Notes shall have such other terms as are set forth in the form of
Note attached hereto as Exhibit A. Pursuant to Section 202, the form of Note attached hereto has been approved by the Issuer. 
  

			
	CITIBANK CREDIT CARD ISSUANCE TRUST
	By  	 	 Citibank, N.A.,
 as Managing
Beneficiary

		
	 	 	 
		 	[Name]
		 	[Title]

 Dated: April 11, 2017 

  
 4 

 Citiseries 

Class 2017-A3 Notes

Reference is made to the resolutions adopted by the Board of Directors of Citibank, N.A. on January 25, 2017. The resolutions authorize
Citibank, N.A. from time to time to issue and sell, or to arrange for or participate in the issuance and sale of, one or more series and/or classes of pass-through certificates, participation certificates, commercial paper, notes, bonds or other
securities representing ownership interests in, or backed or secured by, pools of credit card receivables or interests therein (the “Receivables”) in an aggregate principal amount such that up to $45,000,000,000 of such certificates,
commercial paper, notes, bonds or other securities are outstanding at any one time and to sell, transfer, convey, assign or pledge or grant a security interest in all or any portion of its Receivables to Citibank Credit Card Master Trust I, Citibank
Omni Trust or any direct or indirect subsidiaries of Citibank, N.A., affiliates of Citigroup Inc., additional trusts or other entities or trustees in connection therewith on such terms as to be determined by the Citibank, N.A. Securitization Pricing
and Loan Committee (the “Pricing and Loan Committee”). 
 The undersigned, a duly authorized member of the Pricing and Loan
Committee, on behalf of such Pricing and Loan Committee, does hereby certify that the preceding Issuer Certificate, the terms of the tranche of Notes set forth in and to be created by the Issuer Certificate and the increase in the Invested
Amount of the Collateral Certificate resulting from the issuance of such Notes have been approved by such Pricing and Loan Committee. In addition, the following underwriting/selling agent terms with respect to this tranche of Notes have
been approved by the Pricing and Loan Committee: 
 Issue Price: 99.97119% 

Underwriting Commission: 0.2500% 

Proceeds to Issuer: 99.72119% 

Representative of the Underwriters: Citigroup Global Markets Inc. 

The preceding Issuer Certificate and this certification of Pricing and Loan Committee approval shall be, continuously from the time of their
execution, official records of Citibank, N.A. 
  

	
	
	   

	[Name]
	Member of the Securitization Pricing and Loan Committee
	Citibank, N.A.

 Dated: April 11, 2017 

  
 5 

 Exhibit A 

FORM OF 
 CITISERIES 

1.92% CLASS 2017-A3 NOTES OF APRIL 2020 

(Legal Maturity Date April 2022) 
  

			
	$[    ],000,000	 	REGISTERED
	CUSIP No. 17305E GB5	 	No. R-[1][2][3][4]

 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE 

DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE 

ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR 

PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. 

OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED 

REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO 

SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE 

OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR 

OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE 

REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN AND IN THE 

INDENTURE REFERRED TO BELOW. ACCORDINGLY, THE OUTSTANDING 

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE 

AMOUNT SHOWN ON THE FACE HEREOF. 

CITIBANK CREDIT CARD ISSUANCE TRUST 

CITISERIES 
 1.92% CLASS 2017-A3
NOTES OF APRIL 2020 
 (Legal Maturity Date April 2022) 

CITIBANK CREDIT CARD ISSUANCE TRUST, a trust formed and existing under the laws of the State of Delaware (including any successor, the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal amount of [        ] HUNDRED MILLION DOLLARS
($[        ],000,000). The Expected Principal Payment Date for this Note is April 7, 2020. The Legal Maturity Date for this Note is April 7, 2022. 

The Issuer hereby promises to pay interest on this Note on the 7th day of each April and October, beginning October 2017, until the principal of this Note is
paid or made available for payment, subject to certain limitations set forth in the Indenture. Interest will accrue on the outstanding principal amount of this Note for each interest period in an amount equal to the

 
product of (i) the number of days in the interest period computed on the basis of a 360-day year of twelve 30-day months, (ii) a rate per annum equal to the Class 2017-A3 Note Rate for
such interest period, and (iii) the outstanding principal amount of this Note as of the preceding Interest Payment Date (after giving effect to any payments of principal made on the preceding Interest Payment Date) or, with respect to the first
Interest Payment Date, the initial principal amount of this Note. The Class 2017-A3 Note Rate will be determined as provided in the Indenture. 
 If any
Interest Payment Date or Principal Payment Date of this Note falls on a day that is not a Business Day, the required payment of interest or principal will be made on the following Business Day. 

This Note is one of the Citiseries, Class 2017-A3 Notes issued pursuant to the Second Amended and Restated Indenture dated as of September 26, 2000, as
amended and restated as of August 9, 2011, and as further amended and restated as of November 10, 2016 (as so further amended and restated and otherwise modified from time to time, the “Indenture”), between the Issuer and
Deutsche Bank Trust Company Americas, as Trustee. For purposes of this Note, the term “Indenture” includes any supplemental indenture or Issuer Certificate relating to the Citiseries, Class 2017-A3 Notes. This Note is subject to all of the
terms of the Indenture. All terms used in this Note that are not otherwise defined herein and that are defined in the Indenture will have the meanings assigned to them therein. 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which will have the same
effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note will not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by an Issuer
Authorized Officer. 
  

							
	 CITIBANK CREDIT CARD ISSUANCE TRUST

		
	By:  	 	 CITIBANK, N.A.,
 as Managing
Beneficiary of
 Citibank Credit Card Issuance Trust

			
		 	 By:
	 	      

		 		 	         [Name]

		 		 	         [Title]

 Dated: April 11, 2017 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within mentioned Indenture. 

 

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee under the Indenture

		
	By:	 	 
		 	         Authorized Signatory

 Dated: April 11, 2017 

 REVERSE OF NOTE 

This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Citiseries 1.92% Class 2017-A3 Notes of April 2020 (Legal Maturity Date
April 2022) (herein called the “Notes”), all issued under an Indenture, to which Indenture reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Trustee and the Holders of the
Notes. 
 This Note ranks pari passu with all other Class A Notes of the same series, as set forth in the Indenture. This Note is secured to the
extent, and by the collateral, described in the Indenture. 
 The Issuer will pay interest on overdue interest as set forth in the Indenture to the extent
lawful. 
 Each Holder by acceptance of this Note, and each owner of a beneficial interest in this Note by acceptance of a beneficial interest in this Note,
agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Trustee on the Notes, against the Issuer, the Issuer Trustee, Citibank, N.A., the Trustee or any affiliate, officer, employee or
director of any of them, and the obligation of the Issuer to pay principal of or interest on this Note or any other amount payable to the Holder of this Note will be subject to Article V of the Indenture. 

Each Holder by acceptance of this Note, and each owner of a beneficial interest in this Note by acceptance of a beneficial interest in this Note, in each case
other than Citibank, N.A. as Holder or owner, agrees that this Note is intended to be debt of Citibank, N.A. for federal, state and local income and franchise tax purposes, and agrees to treat this Note accordingly for all such purposes, unless
otherwise required by a taxing authority. 
 Each Holder by acceptance of this Note, and each owner of a beneficial interest in this Note by acceptance of a
beneficial interest in this Note, agrees that it will not at any time institute against the Issuer, or join in any institution against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other
proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to this Note, the Indenture or any Derivative Agreement. 

This Note and the Indenture will be construed in accordance with and governed by the laws of the State of New York. 

Certain amendments may be made to the Indenture without the consent of the Holder of this Note. This Note must be surrendered for final payment of principal
and interest. 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of
assignee:                                       
   
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 

					
		 	      
	 	
		 		 	
		 	      
	 	
		 	(name and address of assignee)	 	

 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                         
                           , attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises. 
  

					
		 		 	
			
	Dated:
                                         
                   	 		 	                                      
                      *
		 		 	Signature Guaranteed:

  
  

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular
without alteration, enlargement or any change whatsoever.

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