Document:

Form of Note for the Company's 4.750% Subordinated Notes due May 18, 2046.

 Exhibit 4.01 

This Subordinated Note is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the
Depository named below or a nominee of the Depository. This Subordinated Note is not exchangeable for Subordinated Notes registered in the name of a Person other than the Depository or its nominee except in the limited circumstances described herein
and in the Indenture, and no transfer of this Subordinated Note (other than a transfer of this Subordinated Note as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of
the Depository) may be registered except in the limited circumstances described herein. 
 Unless this certificate is presented by an
authorized representative of The Depository Trust Company, a New York corporation (the “Depository”), to Citigroup Inc. or its agent for registration of transfer, exchange, or payment, and any certificate issued in respect thereof is
registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of the Depository (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of the Depository), 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 Subordinated Notes are not savings accounts or deposits but are unsecured obligations of Citigroup Inc. The Subordinated Notes are not
insured by the Federal Deposit Insurance Corporation or by any other federal agency or instrumentality. 
 CITIGROUP INC. 

4.750% Subordinated Notes due May 18, 2046 

					
	REGISTERED	 		 	REGISTERED

 CUSIP: 172967KR1 

ISIN: US172967KR13 
 Common Code:
141482491 
  

					
	No. R-[000X]	 		 	$500,000,000

 CITIGROUP INC., a Delaware corporation (the “Company”, which term includes any successor Person under
the Indenture), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $500,000,000 on May 18, 2046 and to pay interest thereon from and including November 18, 2016 or from the most
recent Interest Payment Date (as defined herein) to which interest has been paid or duly provided for, semi-annually, on May 18 and November 18 of each year, commencing May 18, 2017, at the rate of 4.750% per annum, until the
principal hereof is paid or made available for payment (each such payment date, an “Interest Payment Date”). The Subordinated Notes may be redeemed in whole, but not in part, at any time if changes involving United States taxation occur
which could require Citigroup to pay additional amounts. 

 The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid pursuant to the instructions of the Person in whose name this Subordinated Note is registered at the close of business on the Record Date for such interest, which shall be the Business Day immediately
preceding such Interest Payment Date. 
 Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
the holder on such Record Date and may either be paid pursuant to the instructions of the Person in whose name this Subordinated Note is registered at the close of business on a subsequent Record Date, such subsequent Record Date to be not less than
five days prior to the date of payment of such defaulted interest, notice whereof shall be given to holders of Subordinated Notes of this series not less than 15 days prior to such subsequent Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Subordinated Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

Interest hereon will be calculated on the basis of a 360-day year comprised of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed. In the event the Subordinated Notes do not continue to remain in book-entry only form, Citigroup shall have the right to select
record dates, which shall be more than 14 days but less than 60 days prior to an Interest Payment Date. 
 If an Interest Payment Date falls
on a day that is not a Business Day, such Interest Payment Date will be the next succeeding Business Day. If the Maturity of the Subordinated Notes falls on a day that is not a Business Day, the payment due on Maturity will be postponed to the next
succeeding Business Day, and no further interest will accrue in respect of such postponement. If a date for payment of interest or principal on the Subordinated Notes falls on a day that is not a business day in the place of payment, such payment
will be made on the next succeeding business day in such place of payment as if made on the date the payment was due. No interest will accrue on any amounts payable for the period from and after the due date for payment of such principal or
interest. 
 For these purposes, “Business Day” means any day on which commercial banks settle payments and are open for general
business in The City of New York. 
 Payment of the principal of and interest on this Subordinated Note will be made at the office or agency
of the Trustee maintained for that purpose in The City of New York. 
 Reference is hereby made to the further provisions of this
Subordinated Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

  
 2 

 Unless the certificate of authentication hereon has been executed by the Trustee or by an
authenticating agent on behalf of the Trustee by manual signature, this Subordinated Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: February 13, 2017 
  

			
	CITIGROUP INC.
		
	By:	 	  

	Name:	 	Joseph Bonocore
	Title:	 	Deputy Treasurer

  

			
	ATTEST:
		
	By:	 	  

	Name:	 	Karen Wang
	Title:	 	Assistant Secretary

  
 4 

 This is one of the Notes of the series issued under the within-mentioned Indenture. 

Dated: February 13, 2017 
  

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	  

		 	Name:
		 	Title:
	
	-or-
	
	 CITIBANK, N.A.,
 as Authenticating
Agent

		
	By:	 	  

		 	Name:
		 	Title:

  
 5 

 This Subordinated Note is one of a duly authorized issue of Securities of the Company (the
“Subordinated Notes”), issued and to be issued in one or more series under the Indenture, dated as of April 12, 2001 (as amended and supplemented from time to time, the “Indenture”), between the Company and The Bank of New
York Mellon (as successor to J.P. Morgan Trust Company, N.A. and Bank One Trust Company, N.A.), as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Subordinated Notes and of the terms upon which the Subordinated
Notes are, and are to be, authenticated and delivered. This Subordinated Note is one of the series designated on the face hereof, initially limited in aggregate principal amount of $1,000,000,000 and increased to $1,750,000,000. 

The Company covenants and agrees that the indebtedness evidenced by the Subordinated Notes is subordinate and junior in right of payment to
all Senior Indebtedness (as defined in the Indenture) to the extent provided in the Indenture, and each holder of Subordinated Notes, by his or her acceptance thereof, likewise covenants and agrees to the subordination provided in the Indenture
(including Article Fourteen thereof) and shall be bound by the provisions thereof. 
 In the event that the Company shall default in the
payment of any principal of (or premium, if any) or interest on any Senior Indebtedness when the same becomes due and payable after any applicable grace period, whether at maturity or at a date fixed for prepayment or by declaration or otherwise,
then, unless and until such default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment (in cash, property, securities, by set-off or otherwise) shall be made or agreed
to be made on account of the principal of, or premium, if any, or interest on the indebtedness evidenced by the Subordinated Notes, or in respect of any redemption, retirement or other acquisition of any of the Subordinated Notes, except that
holders of Subordinated Notes may receive and retain (x) securities of the Company or any other corporation provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the Subordinated Notes, to the payment of all Senior Indebtedness at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or
readjustment and (y) payments made from a defeasance trust created pursuant to Article Eleven of the Indenture. 
 In the event of:

 (i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment, composition or other similar proceeding relating
to the Company, its creditors or its property, 
 (ii) any proceeding for liquidation, dissolution or other winding up of the Company,
voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings, 

  
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 (iii) any assignment by the Company for the benefit of creditors, or 

(iv) any other marshalling of the assets of the Company, 

all Senior Indebtedness (including any interest thereon accruing after the commencement of any such proceedings) shall first be paid in full before any
payment or distribution, whether in cash, securities or other property, shall be made to any Holder of any of the Subordinated Notes on account thereof (except as provided in the next sentence). Any payment or distribution, whether in cash,
securities or other property (other than (x) securities of the Company or any other corporation provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in these subordination
provisions with respect to the indebtedness evidenced by the Subordinated Notes, to the payment of all Senior Indebtedness at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustment
and (y) payments made from a defeasance trust created pursuant to Article Eleven of the Indenture), which would otherwise (but for these subordination provisions) be payable or deliverable in respect of the Subordinated Notes shall be paid or
delivered directly to the holders of Senior Indebtedness in accordance with the priorities then existing among such holders until all Senior Indebtedness (including any interest thereon accruing after the commencement of any such proceedings) shall
have been paid in full. 
 If an event of default (as defined in the Indenture) with respect to Subordinated Notes of this series shall
occur and be continuing, the principal of the Subordinated Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Subordinated Note upon compliance by the
Company with certain conditions set forth in Article Eleven thereof, which provisions apply to this Subordinated Note. 
 The Indenture
contains provisions permitting the Company and the Trustee, without the consent of the holders of Securities, to establish, among other things, the form and terms of any series of Securities issuable thereunder by one or more supplemental
indentures, and, with the consent of the holders of not less than a majority of the principal amount of Securities at the time Outstanding which are affected thereby, to modify the Indenture or any supplemental indenture or the rights of the holders
of Securities of such series to be affected, provided that no such modification shall, without the consent of the holder of each Outstanding Security so affected, (x) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security, or reduce the principal amount thereof or the rate of interest thereon or any premium thereon, or change any place of payment where, or the coin or currency in which any Security or any premium or interest
thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption on or after the Redemption Date) or modify the provisions of the Indenture with
respect to the subordination of the Securities in a manner adverse to the Securityholders or (y) reduce the aforesaid percentage in principal amount of the Outstanding Securities of any series, the consent of the holders of which is required
for any supplemental indenture, or the consent of whose holders is required for any waiver provided for in the Indenture, or (z) modify certain other provisions of the Indenture, as set forth in Section 13.02 of the Indenture. 

  
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 No reference herein to the Indenture and no provision of this Subordinated Note or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Subordinated Note at the times, place and rate, and in the coin or currency, herein prescribed. 

This Subordinated Note is a Global Security registered in the name of a nominee of the Depository. This Subordinated Note is exchangeable for
Subordinated Notes registered in the name of a person other than the Depository or its nominee only in the limited circumstances hereinafter described. Unless and until it is exchanged in whole or in part for definitive Subordinated Notes in
certificated form, this Subordinated Note may not be transferred except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository. 

The Subordinated Notes represented by this Global Security are exchangeable for definitive Subordinated Notes in certificated form of like
tenor as such Subordinated Notes in denominations of $1,000 and whole multiples of $1,000 in excess thereof only if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for the Subordinated Notes or
(ii) the Depository ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion decides to allow the Subordinated Notes to be exchanged for definitive
Subordinated Notes in registered form. Any Subordinated Notes that are exchangeable pursuant to the preceding sentence are exchangeable for certificated Subordinated Notes issuable in authorized denominations and registered in such names as the
Depository shall direct. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of definitive Subordinated Notes in certificated form is registrable in the register maintained by the Company in The City of
New York for such purpose, upon surrender of the definitive Subordinated Note for registration of transfer at the office or agency of the registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Company and the registrar duly executed by, the holder thereof or his attorney duly authorized in writing, and thereupon one or more new Subordinated Notes of this series and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. Subject to the foregoing, this Subordinated Note is not exchangeable, except for a Global Security or Global Securities of this issue of the same principal amount to be
registered in the name of the Depository or its nominee. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Subordinated Note for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Subordinated Note is registered as the owner hereof for all purposes, whether or not this Subordinated Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary. 

  
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 The Company will pay additional amounts (“Additional Amounts”) to the beneficial owner
of any Subordinated Note that is a non-United States person in order to ensure that every net payment on such Subordinated Note will not be less, due to payment of U.S. withholding tax, than the amount then
due and payable. For this purpose, a “net payment” on a Subordinated Note means a payment by the Company or a paying agent, including payment of principal and interest, after deduction for any present or future tax, assessment or other
governmental charge of the United States. These Additional Amounts will constitute additional interest on the Subordinated Note. 
 The
Company will not be required to pay Additional Amounts, however, in any of the circumstances described in items (1) through (13) below. 
  

	 	(1)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	having a relationship with the United States as a citizen, resident or otherwise; 

  

	 	(b)	having had such a relationship in the past or 

  

	 	(c)	being considered as having had such a relationship. 

  

	 	(2)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	being treated as present in or engaged in a trade or business in the United States; 

  

	 	(b)	being treated as having been present in or engaged in a trade or business in the United States in the past or 

  

	 	(c)	having or having had a permanent establishment in the United States. 

  

	 	(3)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld in whole or in part by reason of the
beneficial owner being or having been any of the following (as such terms are defined in the Internal Revenue Code of 1986, as amended): 

  

	 	(a)	personal holding company; 

  

	 	(b)	foreign private foundation or other foreign tax-exempt organization; 

  

	 	(c)	passive foreign investment company; 

  

	 	(d)	controlled foreign corporation or 

  

	 	(e)	corporation which has accumulated earnings to avoid United States federal income tax. 

  
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	 	(4)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner
owning or having owned, actually or constructively, 10 percent or more of the total combined voting power of all classes of stock of the Company entitled to vote or by reason of the beneficial owner being a bank that has invested in a
Subordinated Note as an extension of credit in the ordinary course of its trade or business. 

 For purposes of items (1) through
(4) above, “beneficial owner” means a fiduciary, settlor, beneficiary, member or shareholder of the holder if the holder is an estate, trust, partnership, limited liability company, corporation or other entity, or a person holding a
power over an estate or trust administered by a fiduciary holder. 
  

	 	(5)	Additional Amounts will not be payable to any beneficial owner of a Subordinated Note that is a: 

  

	 	(a)	fiduciary; 

  

	 	(b)	partnership; 

  

	 	(c)	limited liability company or 

  

	 	(d)	other fiscally transparent entity 

 or that is not the sole beneficial owner of the Subordinated
Note, or any portion of the Subordinated Note. However, this exception to the obligation to pay Additional Amounts will only apply to the extent that a beneficiary or settlor in relation to the fiduciary, or a beneficial owner or member of the
partnership, limited liability company or other fiscally transparent entity, would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or
distributive share of the payment. 
  

	 	(6)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the failure of the
beneficial owner or any other person to comply with applicable certification, identification, documentation or other information reporting requirements. This exception to the obligation to pay Additional Amounts will only apply if compliance with
such reporting requirements is required by statute or regulation of the United States or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge.

  

	 	(7)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is collected or imposed by any method other than by withholding
from a payment on a Subordinated Note by the Company or a paying agent. 

  
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	 	(8)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of a change in law, regulation,
or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later. 

 

	 	(9)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of the presentation by the
beneficial owner of a Subordinated Note for payment more than 30 days after the date on which such payment becomes due or is duly provided for, whichever occurs later. 

 

	 	(10)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any: 

  

	 	(a)	estate tax; 

  

	 	(b)	inheritance tax; 

  

	 	(c)	gift tax; 

  

	 	(d)	sales tax; 

  

	 	(e)	excise tax; 

  

	 	(f)	transfer tax; 

  

	 	(g)	wealth tax; 

  

	 	(h)	personal property tax or 

  

	 	(i)	any similar tax, assessment, withholding, deduction or other governmental charge. 

  

	 	(11)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any tax, assessment, or other governmental charge required to be withheld by any paying agent from a payment of
principal or interest on a Subordinated Note if such payment can be made without such withholding by any other paying agent. 

  

	 	(12)	 Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any
withholding, deduction, tax, duty assessment or other governmental charge that would not have been imposed but for a failure by the holder or beneficial owner of a Subordinated Note (or any financial institution through which the holder or
beneficial owner holds the Subordinated Note or through which payment on the Subordinated Note is made) to take any action (including entering into an agreement with the Internal Revenue Service, or a governmental authority of another jurisdiction
if the holder is entitled to the benefits 

  
 11 

	 	
of an intergovernmental agreement between that jurisdiction and the United States) or to comply with any applicable certification, documentation, information or other reporting requirement or
agreement concerning accounts maintained by the holder or beneficial owner (or any such financial institution), or concerning ownership of the holder or beneficial owner, or any substantially similar requirement or agreement. 

 

	 	(13)	Additional Amounts will not be payable if a payment on a Subordinated Note is reduced as a result of any combination of items (1) through (12) above. 

Except as specifically provided herein, the Company will not be required to make any payment of any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of such government. 
 As used in this Subordinated Note,
“United States person”means: 
  

	 	(a)	any individual who is a citizen or resident of the United States; 

  

	 	(b)	any corporation, partnership or other entity created or organized in or under the laws of the United States; 

  

	 	(c)	any estate if the income of such estate falls within the federal income tax jurisdiction of the United States regardless of the 

	 	source	of such income and 

  

	 	(d)	any trust if (i) a United States court is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all of the substantial decisions of the
trust; or (ii) it has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. 

Additionally, “non-United States person” means a person who is not a United States person,
and “United States” means the states of the United States of America and the District of Columbia, but excluding its territories and its possessions. 

Except as provided below, the Subordinated Notes may not be redeemed prior to maturity. 

(1)    The Company may, at its option, redeem the Subordinated Notes if: 

 

	 	(a)	the Company becomes or will become obligated to pay Additional Amounts as described above; 

  

	 	(b)	the obligation to pay Additional Amounts arises as a result of any change in the laws, regulations or rulings of the United States, or an official position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on or after February 7, 2017 and 

  

	 	(c)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Subordinated Notes or taking any action that would entail a material cost to the Company. 

  
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	 	(2)	The Company may also redeem the Subordinated Notes, at its option, if: 

  

	 	(a)	any act is taken by a taxing authority of the United States on or after February 7, 2017, whether or not such act is taken in relation to the Company or any affiliate, that results in a substantial probability that
the Company will or may be required to pay Additional Amounts as described above; 

  

	 	(b)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Subordinated Notes or taking any action that would entail a material cost to the Company and 

  

	 	(c)	the Company receives an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States results in a substantial probability that the Company will or may be required to pay the
Additional Amounts described above, and delivers to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem the Subordinated Notes pursuant to their terms.

 Any redemption of the Subordinated Notes as set forth in clauses (1) or (2) above shall be in whole, and not in part, and will be made
at a redemption price equal to 100% of the principal amount of the Subordinated Notes Outstanding plus accrued interest thereon to the date of redemption. Holders shall be given not less than 30 days nor more than 60 days’ prior notice by the
Trustee of the date fixed for such redemption. 
 All terms used in this Subordinated Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. The Subordinated Notes are governed by the laws of the State of New York. 

  
 13Exhibit 10.1

 

VAPOR CORP.

 

EQUITY INCENTIVE PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

All capitalized terms
used in this Non-Qualified Stock Option Agreement, but not otherwise defined herein, shall have the meanings ascribed to them in
the Vapor Corp. Equity Incentive Plan (the “Plan”).

 

		I.	NOTICE OF STOCK OPTION GRANT

 

	Optionee Name:	Christopher Santi
	 	 
	Address:	3227 N.E. 40th Street, Ft. Lauderdale, FL 33308

 

The Optionee (as designated
above) has been granted an Option to purchase shares (the “Shares”) of common stock of Vapor Corp. (the “Company”),
subject to the terms and conditions of the Plan and this Non-Qualified Stock Option Agreement, as follows:

 

	Date of Grant:	February 2, 2017
	 	 
	Exercise Price per Share:	$0.0001
	 	 
	No. of Shares Subject to Option:	25,000,000,000
	 	 
	Type of Option:	Non-Qualified Stock Option

 

Expiration Date:  February
1, 2027, subject to earlier expiration as provided in Section 3 of this Non-Qualified Stock Option Agreement.

 

Vesting and Exercise
Schedule:  This Option shall vest and become exercisable according to Schedule I hereto.

 

		II.	NON-QUALIFIED STOCK OPTION AGREEMENT

 

1.         Grant
of Option.  The Company hereby grants to the Optionee named in the Notice of Stock Option Grant (the “Optionee”),
an option (the “Option”) to purchase the number of Shares set forth in the Notice of Stock Option Grant, at
the exercise price per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject
to the terms and conditions of the Plan, which is incorporated herein by reference.  The terms and conditions of this
Non-Qualified Stock Option Agreement (the “Option Agreement”) are subject to the terms and conditions of the
Plan.

 

2.         Exercise
of Option.

 

(a)          Right
to Exercise.  The Option shall be exercisable during its term in accordance with the applicable provisions of the
Plan and this Option Agreement.

 

     

     

    

 

(b)          Method
of Exercise.  The Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit
A (the “Exercise Notice”) which shall state the election to exercise the Option, the number of Shares with
respect to which the Option is being exercised, and such other representations and agreements as may be required by the Company.

 

The Option shall be
deemed exercised when the Company receives (i) written or electronic notice of exercise (in accordance with this Option Agreement)
from the Optionee (or other person entitled to exercise the Option), (ii) full payment for the Shares with respect to which the
Option is exercised, (iii) payment of any required tax withholding; and (iv) any other documents required by this Option Agreement
or the Exercise Notice.  Full payment may consist of any consideration and method of payment permitted by this Option
Agreement.  Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by
the Optionee and permitted under applicable law, in the name of the Optionee and his or her spouse.  Until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company),
no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding
the exercise of the Option.  The Company shall issue (or cause to be issued) such Shares promptly after the Option is
exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in the Plan.

 

Exercise of the Option
in any manner shall result in a decrease in the number of Shares thereafter available for sale under the Option, by the number
of Shares as to which the Option is exercised.

 

(c)          Legal
Compliance.  No Shares shall be issued pursuant to the exercise of the Option unless such issuance and such exercise
complies with applicable laws (including rules and regulations promulgated thereunder) and the requirements of any governmental
or regulatory agency or stock exchange.  Assuming such compliance, for income tax purposes the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with respect to such Shares.

 

(d)          Vesting
Acceleration.  Upon Optionee’s Termination by reason of death or Disability, the Option as of the date of Termination
shall vest to the extent not fully vested and immediately become exercisable.  Notwithstanding anything to the contrary
set forth in this Option Agreement or the Plan, the Option shall vest to the extent not fully vested and immediately become exercisable
as expressly provided for in any employment agreement or other written agreement between Optionee and the Company in effect as
of the date hereof and during the term of the Option.

 

(e)          Limitations
on Exercises.  Notwithstanding anything to the contrary contained in this Option Agreement, this Option shall not
be exercisable or exchangeable by the Optionee hereof to the extent (but only to the extent) that the Optionee or any of its Affiliates
(as defined in the 1934 Act) would beneficially own in excess of 19.99% (the “Maximum Percentage”) of the outstanding
Common Stock.  To the extent the above limitation applies, the determination of whether this Option shall be exercisable
or exchangeable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Optionee or any of its
Affiliates) and of which such securities shall be exercisable (as among all such securities owned

 

     2

     

    

 

by the Optionee) shall,
subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion,
exercise or exchange (as the case may be). No prior inability to exercise or exchange this Option pursuant to this paragraph shall
have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability
or exchangeability.  For the purposes of this paragraph, beneficial ownership and all determinations and calculations
(including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and the rules and regulations promulgated
thereunder.  The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity with
the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to
properly give effect to such Maximum Percentage limitation.  The limitations contained in this paragraph shall apply
to a successor Optionee of this Option.  The Company may not amend or waive this paragraph without the approval of the
Company’s board of directors; provided that the Optionee must abstain from participating in such approval in the event Optionee
is a director at such time.  For any reason at any time, upon the written or oral request of the Optionee, the Company
shall within one (1) Business Day confirm orally and in writing to the Optionee the number of shares of Common Stock then outstanding,
including by virtue of any prior conversion or exercise or exchange of convertible or exercisable or exchangeable securities into
Common Stock, including, without limitation, pursuant to this Option Agreement.  

 

3.          Term.  Optionee
may only exercise the Option to the extent vested during the term of the Option.  The term of the Option commences on
the Date of Grant specified above in Part I. Notice of Stock Option Grant and shall terminate upon the earliest to occur:

 

(a)        Ninety
(90) days following Optionee’s Termination for any reason other than his/her Retirement, death, Disability or for Cause (as
defined below);

 

(b)        Immediately
upon Optionee’s Termination for Cause;

 

(c)        One
hundred eighty (180) days following Optionee’s Termination by reason of his/her Retirement or death;

 

(d)        Three
hundred sixty-five (365) days following Optionee’s Termination by reason of his/her Disability; or

 

(e)        The
Expiration Date specified above in Part I. Notice of Stock Option Grant.

 

For purposes hereof,
the term “Cause” shall have the same meaning as “cause” or “for cause” set forth in
any employment, consulting, or other agreement for the performance of services between Optionee and the Company or any Affiliate
thereof or, in the absence of any such agreement or any such definition in such agreement, such term shall mean (i) the failure
by Option to perform, in a reasonable manner, his/her duties as assigned by the Company or an Affiliate thereof, (ii) any violation
or breach by Optionee of his/her employment, consulting or

 

     3

     

    

 

other similar agreement
with the Company or an Affiliate thereof, if any, (iii) any violation or breach by Optionee of any non-competition, non-solicitation,
non-disclosure and/or other similar agreement with the Company or an Affiliate thereof, (iv) any act by Optionee of dishonesty
or bad faith with respect to the Company or an Affiliate thereof, (v) use of alcohol, drugs or other similar substances in a manner
that adversely affects Optionee’s work performance, or (vi) the commission by Optionee of any act, misdemeanor, or crime
reflecting unfavorably upon Optionee or the Company or an Affiliate thereof. The good faith determination by the Committee or the
Board, as applicable, of whether Optionee was Terminated by the Company for “Cause” shall be final and binding for
all purposes hereunder.

 

Upon its termination,
the Option shall have no further force or effect and Optionee shall have no further rights under the Option or to any Shares which
have not been purchased pursuant to prior valid exercise of the Option.

 

4.          Method
of Payment.  Payment of the Exercise Price shall be, to the extent permitted by applicable law, any combination of:

 

(a)          cash;

 

(b)          check;

 

(c)          by
the delivery of proceeds from the sale of Shares pursuant to broker-assisted “cashless” exercise procedures and guidelines
approved by the Board or the Committee, as applicable;

 

(d)          by
the withholding of Shares issuable upon exercise of the Option; or

 

(e)          by
the surrender and delivery to the Company of shares of common stock of the Company owned by the Optionee to the extent owned for
such period of time, if any, required to avoid a charge to the earnings of the Company and/or an increase in the compensation expense
incurred by the Company related to this Option for financial accounting purposes.

 

5.          Non-Transferability
of Option.  This Option (in whole or in part) is transferable by will or by the laws of descent and distribution
or pursuant to a domestic relations order.  This Option (in whole or in part) also may be transferable to a “family
member” of Optionee upon written consent of the Company if the transfer is a bona fide gift and at the time of transfer,
a Form S-8 registration statement under the Securities Act of 1933, as amended (the “Securities Act”) is available
for the exercise of the Option and the subsequent resale of the underlying Shares after such transfer.  In addition,
Optionee may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate
a third party who, in the event of the death of the Optionee, shall thereafter be entitled to exercise the Option.  For
purposes hereof, the term “family member” shall have the meaning assigned to it in the general instructions of a Form
S-8 registration statement (or any successor form adopted under the Securities Act).

 

     4

     

    

 

6.          Tax
Obligations.

 

(a)          Tax
Consequences.  Optionee has reviewed with Optionee’s own tax advisors the federal, state, local and foreign
tax consequences of this Option.  Optionee is relying solely on such advisors and not on any statements or representations
of the Company or any of its agents.  Optionee understands that Optionee (and not the Company) shall be responsible for
any tax liability that may arise as a result of the transactions contemplated by this Option Agreement and the Plan.

 

(b)          Withholding
Taxes.  Optionee may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition
of Shares under this Option by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Optionee by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company
to withhold Shares from the Shares otherwise issuable to Optionee as a result of the exercise or acquisition of stock under this
Option; provided, however, that no Shares 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 Shares. Optionee agrees to make appropriate arrangements with
the Company for the satisfaction of all federal, state, local and foreign income and employment tax withholding requirements applicable
to the Option exercise.  Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse
to deliver Shares if such withholding amounts are not delivered at the time of exercise.  The preceding to the contrary
notwithstanding, the Company, in its sole discretion, and in compliance with any applicable laws and/or the requirements or any
governmental or regulatory agency or stock exchange, may withhold from the Shares otherwise deliverable to Optionee upon the exercise
of this Option a number of whole Shares having a Fair Market Value, as determined by the Company as of the date the Optionee recognizes
income with respect to those Shares, not in excess of the amount of minimum tax required to be withheld by law (or such other amount
as may be necessary to avoid adverse financial accounting treatment). Any adverse consequences to Optionee arising in connection
with such Shares withholding procedure shall be the Optionee’s sole responsibility.

 

7.          Entire
Agreement: Governing Law.  The Plan and this Option Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of
a writing signed by the Company and Optionee.  This Option Agreement shall be construed and enforced under the laws of
the State of Florida, without regard to choice of law provisions thereof.

 

8.          No
Obligation to Employ.  Optionee acknowledges and agrees that nothing in this Option Agreement or the Plan shall confer
or shall be deemed to confer upon Optionee any right to continue in the employ of, or to continue any other business relationship
with, the Company or Affiliate of the Company.

 

9.          Section
409A.  Notwithstanding anything herein to the contrary, this Option Agreement is intended to be interpreted and applied
so this Option Agreement (including the Option) either shall be exempt from the requirements of Section 409A of the Code, or shall
comply with the requirements of such provision.  Furthermore, the Company and its respective officers, directors, employees
or agents make no guarantee that this Option Agreement complies

 

     5

     

    

 

with, or is exempt from,
the provisions of Section 409A of the Code and none of the foregoing shall have any liability for the failure of this Option Agreement
to comply with, or be exempt from, the provisions of Code Section 409A.  The parties hereto agree to make such amendments
from time to time to the terms and conditions of this Option Agreement as are necessary to ensure that this Option Agreement complies
with the terms of and in a manner permitted by Section 409A of the Code and any regulation or other official guidance promulgated
thereunder.

 

[Signature Page Follows]

 

     6

     

    

 

Optionee acknowledges
receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts
this Option Agreement and Option subject to all of the terms and provisions thereof.  Optionee has reviewed the Plan
and this Option Agreement in their entirety.  Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Committee or the Board, as applicable, upon any questions arising under the Plan or this Option Agreement.  Optionee
further agrees to notify the Company upon any change in the residence address indicated below.

 

	OPTIONEE	 	VAPOR CORP.
	 	 	 
	/s/ Christopher Santi	 	 
	Christopher Santi	 	By:
	 	 	 
	 	 	 
	 	 	Title:

 

[Signature Page of Option Agreement]

 

     7

     

    

 

EXHIBIT A

 

VAPOR CORP.

EQUITY INCENTIVE PLAN

EXERCISE NOTICE

 

Vapor Corp.

3800 North 28th Way

Hollywood, Florida 33020

Attention: Chief Officer

 

1.          Exercise
of Option. Effective as of today, Christopher Santi, the undersigned (“Optionee”) hereby elects to exercise
Optionee’s option to purchase ______________ shares of the Common Stock (the “Shares”) of Vapor Corp.
(the “Company”) under and pursuant to the Company’s Equity Incentive Plan (the “Plan”)
and the Non-Qualified Stock Option Agreement dated February 2, 2017 (the “Option Agreement”).

 

2.          Delivery
of Payment and Required Documents. Optionee herewith delivers to the Company the exercise price of the Shares, as set forth
in the Notice of Stock Option Grant in Part I of the Option Agreement, and any and all withholding taxes due in connection with
the exercise of the Option. In addition, Optionee herewith delivers any other documents required by the Company.

 

3.          Representations
of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

 

4.          Rights
as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall
exist with respect to the Shares, notwithstanding the exercise of the Option. The Shares shall be issued to the Optionee as soon
as practicable after the Option is exercised in accordance with the Option Agreement. No adjustment shall be made for a dividend
or other right for which the record date is prior to the date of issuance except as provided in the Plan.

 

5.          Tax
Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase
or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable
in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 

6.          Successors
and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this
Exercise Notice shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
set forth in the Option Agreement, this Exercise Notice shall be binding upon Optionee and his or her heirs, executors, administrators,
successors and assigns.

 

     

     

    

 

7.          Interpretation.
Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Optionee or by the Company forthwith to
the Committee or the Board, as applicable, which shall review such dispute at its next regular meeting. The resolution of such
a dispute by the Committee or the Board, as applicable, shall be final and binding on all parties.

 

8.          Government
Law. This Exercise Notice shall be construed and enforced under the laws of the State of Florida, without regard to choice
of law provisions thereof.

 

9.          Entire
Agreement. The Plan and Option Agreement are incorporated herein by reference. All capitalized terms used herein but not otherwise
defined herein shall have the meanings ascribed to them in the Option Agreement. This Exercise Notice, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee.

 

	OPTIONEE	 	VAPOR CORP.
	 	 	 
	 	 	 
	Chris Santi	 	By
	 	 	 
	 	 	 
	 	 	Title

 

     2

     

    

 

Schedule I

Vesting Schedule

 

	Grantee:	Christopher Santi

 

Vesting:

 

	On date hereof:	 	25%
	 	 	 
	On the last date of each calendar quarter for

3 quarters (beginning March 31, 2017):	 	25%

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