Document:

EX-4.01

 Exhibit 4.01 

This 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 Note is not exchangeable for 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 Note (other than a transfer of this 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 the Company or its agent for registration of transfer, exchange, or payment, and any certificate issued 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. 

CITIGROUP INC. 
 4.140%
Fixed Rate / Floating Rate Callable Senior Notes due May 24, 2025 
  

							
	REGISTERED	  		  		  	REGISTERED
				
		  		  		  	CUSIP: 172967NQ0
		  		  		  	ISIN: US172967NQ03
				
	No. R-00*	  		  		  	$

 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 $                on May 24,
2025 (the “Maturity Date”) and to pay interest thereon from and including May 24, 2022 or from the most recent Interest Payment Date to which interest has been paid or duly provided for. The Company shall pay interest (i) from
May 24, 2022 to, but excluding, May 24, 2024 (the “Fixed Rate Period”) at a fixed rate of 4.140% per annum semi-annually, on May 24th and November 24th of each year (each such date, a “Fixed Rate Period Interest Payment
Date”), commencing November 24, 2022 and (ii) from, and including, May 24, 2024 (the “Floating Rate Period”), at an annual rate equal to Compounded SOFR (and defined on the reverse hereof) plus 1.372% quarterly, on the
second business day following each Interest Period End Date (each such business day, a “Floating Rate Period Interest Payment Date” and together with any Fixed Rate Period Payment Date, an “Interest Payment Date”), commencing
August 27, 2024, until the principal hereof is paid or made available for payment and provided that the Interest Payment Date with respect to the final Interest Period will be a redemption date or the Maturity Date. An Interest Period End Date
is the 24th of each February, May, August and November, beginning on August 24, 2024 and ending on a redemption date or the Maturity Date. The interest so payable, and punctually paid or duly provided for, on any

 
Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this 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 to the Person in whose name
this Note is registered at the close of business on a subsequent Record Date, such subsequent Record Date to be not less than ten days prior to the date of payment of such defaulted interest, notice whereof shall be given to holders of Notes of this
series not less than ten 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 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. 
 During the Fixed Rate Period, interest hereon will be calculated
on the basis of a 360-day year comprised of twelve 30-day months, and an Interest Period shall be the period from and including an Interest Payment Date (or May 24,
2022 in the case of the first Interest Period) to and including the day immediately preceding the next Interest Payment Date. During the Fixed Rate Period, 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, and no further interest will accrue in respect of such postponement. 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. 
 During the Floating Rate Period, interest hereon will be calculated on the basis of the actual number of days elapsed
in an interest period and a 360-day year, and an Interest Period shall be the period from and including an Interest Period End Date (or May 24, 2024 in the case of the first Interest Period during the
Floating Rate Period) to, but excluding, the next succeeding Interest Period End Date; provided that the Interest Period following an election by the Company to redeem the Notes and the final Interest Period will be the period from, and
including, the immediately preceding Interest Period End Date to, but excluding, the redemption date or the Maturity Date; and provided further that SOFR for each calendar day from, and including, the Rate
Cut-Off Date (as defined on the reverse hereof) to, but excluding, the redemption date or the Maturity Date will equal SOFR in respect of the Rate Cut-Off Date. In the
event that any Interest Period End Date (other than a redemption date or the Maturity Date) is not a Business Day, then such date will be postponed to the next succeeding Business Day, unless that day falls in the next calendar month, in which case
the interest period end date will be the immediately preceding Business Day. 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 and a U.S.
Government Securities Business Day (as defined on the reverse hereof) 
 Dollar amounts resulting from such calculations will be rounded to the nearest
cent, with one-half cent being rounded upward. In the event that the Maturity Date or a redemption date is not a Business Day, then such date will be postponed to the next succeeding Business Day, and no
further interest will accrue with respect to such postponement. No interest will accrue on any amounts payable for the period from and after the due date for payment of such principal or interest. 

Payment of the principal of and interest on this Note will be made at the office or agency of the paying agent maintained for that purpose in The City of New
York. 

 Reference is hereby made to the further provisions of this 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. 
 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 Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

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

			
	CITIGROUP INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	ATTEST:
		
	By:	 	  

		 	Name:
		 	Title:

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

Dated: 
  

			
	THE BANK OF NEW YORK MELLON, as Trustee
		
	By:	 	  

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

		 	Name:
		 	Title:

 This Note is one of a duly authorized issue of Securities of the Company (the “Notes”), issued and
to be issued in one or more series under the senior debt indenture, dated as of November 13, 2013 (as amended and supplemented from time to time, the “Indenture”), between the Company and The Bank of New York Mellon, 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 Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, initially limited in
aggregate principal to $1,500,000,000. 
 During the Floating Rate Period, this Note will bear interest for each Interest Period at a rate determined by
Citibank, N.A., London Branch, acting as Calculation Agent. The interest rate on this Note for a particular Interest Period during the Floating Rate Period will be a per annum rate equal to Compounded SOFR (as defined below) plus 1.372%. Interest
during the Floating Rate Period will be calculated by multiplying the principal amount of the Notes by the product of (i) Compounded SOFR plus 1.372% multiplied by (ii) the quotient of actual number of calendar days in such interest period
divided by 360; provided that in no event will the interest payable on the Notes be less than zero. Promptly upon determination, the Calculation Agent will inform the Trustee and the Company of the interest rate for the next Interest Period.
Absent manifest error, the determination of the interest rate by the Calculation Agent shall be binding and conclusive on the holders of Notes, the Trustee and the Company. 

For the purposes of calculating interest with respect to any Interest Period during the Floating Rate Period: 

“Compounded SOFR” means a rate of return of a daily compounded interest investment calculated in accordance with the formula below,
with the resulting percentage being rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (0.00000005 being rounded upwards) : 
  

 
 where 

“do”, for any Interest Period, is the number of U.S. Government Securities Business Days in the relevant Interest Period. 

“i” is a series of whole numbers from one to do, each representing the relevant U.S. Government Securities Business Days in
chronological order from, and including, the first U.S. Government Securities Business Day in the relevant Interest Period. 

“SOFRi”, for any day “i” in the relevant Interest Period, is a reference rate equal to SOFR in respect of that day.

 “ni”, for any day “i” in the relevant Interest Period, is the
number of calendar days from, and including, such U.S. Government Securities Business Day “i” to, but excluding, the following U.S. Government Securities Business Day. 

“d” is the number of calendar days in the relevant Interest Period. 

“U.S. Government Securities Business Day” means any day except for a Saturday, Sunday or a day on which the Securities Industry and
Financial Markets Association (SIFMA) recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities. 

“SOFR” means, with respect to any day, the rate determined by the Calculation Agent in accordance with the following provisions:

 (1) the Secured Overnight Financing Rate for trades made on such day that appears at approximately 3:00 p.m. (New York City time) on the
NY Federal Reserve’s Website on the U.S. Government Securities Business Day immediately following such day (“SOFR Determination Time”); or 

(2) if the rate specified in (1) above does not so appear, unless a Benchmark Transition Event and its related Benchmark Replacement Date
have occurred as described in (3) below, the Secured Overnight Financing Rate published on the NY Federal Reserve’s Website for the first preceding U.S. Government Securities Business Day for which the Secured Overnight Financing Rate was
published on the NY Federal Reserve’s Website; or 
 (3) if a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred prior to the relevant interest period end date, the Calculation Agent will use the Benchmark Replacement to determine the rate and for all other purposes relating to the Notes. 

In connection with the Compounded SOFR definition above, the following definitions apply: 

“Benchmark” means, initially, Compounded SOFR; provided that if the Company (or one of its affiliates) determines that on or prior
to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Compounded SOFR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

 “Benchmark Replacement” means the first alternative set forth in the order below that can be determined by Citigroup (or one of
its affiliates) as of the Benchmark Replacement Date: 
 (1) the sum of: (a) the alternate rate of interest that has been selected or
recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark and (b) the Benchmark Replacement Adjustment; or 

(2) the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or 

 (3) the sum of: (a) the alternate rate of interest that has been selected by the
Company (or one of its affiliates) as the replacement for the then-current Benchmark giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar-denominated floating rate notes
at such time and (b) the Benchmark Replacement Adjustment. 
 “Benchmark Replacement Adjustment” means the first alternative
set forth in the order below that can be determined by the Company (or one of its affiliates) as of the Benchmark Replacement Date: 
 (1)
the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted
Benchmark Replacement; 
 (2) if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA
Fallback Adjustment; 
 (3) the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company
(or one of its affiliates) giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted
Benchmark Replacement for U.S. dollar-denominated floating rate notes at such time. 
 “Benchmark Replacement Conforming Changes”
means, with respect to any Benchmark Replacement, any technical, administrative or operational changes that the Company (or one of its affiliates) decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner
substantially consistent with market practice (or, if the Company (or such affiliate) decides that adoption of any portion of such market practice is not administratively feasible or if the Company (or such affiliate) determines that no market
practice for use of the Benchmark Replacement exists, in such other manner as the Company (or such affiliate) determines is reasonably necessary). 

“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark: 

(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the
public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or 

(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein. 
     For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs
on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination. 

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 (1) a public statement or publication of information by or on behalf of the administrator of
the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to
provide the Benchmark; 
 (2) a public statement or publication of information by the regulatory supervisor for the administrator of the
Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an
entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at
the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or 
 (3) a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative. 

“Business Day” means any weekday that is not a legal holiday in New York City and is not a day on which banking institutions in New
York City are authorized or required by law or regulation to be closed and is a U.S. Government Securities Business Day. 
 “ISDA”
means the International Swaps and Derivatives Association, Inc. or any successor thereto. 
 “ISDA Definitions” means the 2006
ISDA Definitions published by ISDA, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time. 

“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for
derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor. 

“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective
upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment. 

“NY Federal Reserve” means the Federal Reserve Bank of New York. 

“NY Federal Reserve’s Website” means the website of the NY Federal Reserve, currently at http://www.newyorkfed.org, or any
successor website of the NY Federal Reserve or the website of any successor administrator of the Secured Overnight Financing Rate. 

“Rate Cut-Off Date” means the second U.S. Government Securities Business Day prior to a
redemption date or the Maturity Date. 
 “Reference Time” with respect to any determination of the Benchmark means (1) if the
Benchmark is Compounded SOFR, the SOFR Determination Time and (2) if the Benchmark is not Compounded SOFR, the time determined by Citigroup (or one of its affiliates) in accordance with the Benchmark Replacement Conforming Changes. 

 “Relevant Governmental Body” means the Federal Reserve Board and/or the NY Federal
Reserve, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NY Federal Reserve or any successor thereto. 

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment. 

Upon request from any Noteholder, the Calculation Agent will provide the interest rate in effect on this Note for the current Interest Period during the
Floating Rate Period and, if it has been determined, the interest rate to be in effect for the next Interest Period during the Floating Rate Period. 
 If
an event of default (as defined in the Indenture) with respect to Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner and with the effect provided in the
Indenture. 
 Sections 12.02 and 12.03 of the Indenture containing provisions for defeasance apply to this Note. At any time the entire indebtedness of this
Note may be defeased upon compliance by the Company with certain conditions set forth in Section 12.04 of the Indenture. 
 The
Indenture contains provisions permitting the Company and the Trustee, without the consent of the holders of the 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 a majority in aggregate 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 will (i) extend the fixed maturity of any Securities, reduce the rate or extend the time of payment of interest thereon, reduce the principal amount thereof
or the premium, if any, thereon, reduce the amount of the principal of Original Issue Discount Securities payable on any date, change the currency in which Securities are payable, or impair the right to institute suit for the enforcement of any such
payment on or after the maturity thereof, without the consent of the holder of each Security so affected, or (ii) reduce the aforesaid percentage of Securities of any series the consent of the holders of which is required for any such
modification without the consent of the holders of all Securities of such series then outstanding, or (iii) modify the rights, duties or immunities of the Trustee unless the Trustee agrees to such modification. 

No reference herein to the Indenture and no provision of this 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 Note at the times, place and rate, and in the coin or currency, herein prescribed. 
 This
Note is a Global Security registered in the name of a nominee of the Depository. This Note is exchangeable for 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 Notes in certificated form, this 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 Notes represented by this Global Security are exchangeable for definitive Notes in certificated form of
like tenor as such 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 Notes and the Company is unable
to appoint a successor depository 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 Notes to be
exchanged for definitive Notes in registered form. Any Notes that are exchangeable pursuant to the preceding sentence are exchangeable for certificated 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 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 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 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 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 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 Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary. 
 The Company will pay additional amounts (“Additional Amounts”) to the beneficial owner of any Note that is
a non-United States person in order to ensure that every net payment on such 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 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 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 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 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 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. 

(4) Additional Amounts will not be payable if a payment on a 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 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 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 Note, or any portion of the 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 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 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 Note by the Company or a paying agent. 

(8) Additional Amounts will not be payable if a payment on a 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 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 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 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 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 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 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 Note (or any financial institution through which the holder or beneficial owner holds the Note or through which payment on the
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 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 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 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 or
any political subdivision thereof; 

  

	 	(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 Notes may not be redeemed prior to maturity. 
  

	 	(1)	 The Company may, at its option, redeem the 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 May 17, 2022; 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 Notes or taking any action that would entail a material cost to the Company. 

 

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

 

	 	(a)	 any act is taken by a taxing authority of the United States on or after May 17, 2022 whether or not such
act is taken in relation to the Company or any subsidiary, 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 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 Notes pursuant to their terms. 

 Any redemption of the 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 Notes Outstanding plus accrued and unpaid interest thereon to the date of redemption. 

 

	 	(3)	 The Company may also redeem the Notes, at its option, in whole at any time or in part from time to time, on or
after November 24, 2022 (or, if additional notes are issued after May 24, 2022, beginning six months after the issue date of such additional notes) and prior to May 24, 2024, at a redemption price equal to the sum of (i) 100% of the
principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but excluding the date of redemption; and (ii) the Make-Whole Amount, if any, with respect to such Notes. The Reinvestment Rate will equal the Treasury
Yield calculated to May 24, 2024, plus 0.220%. 

  

	•	 “Make-Whole Amount” means the excess, if any, of: (i) the aggregate present value as of the date
of such redemption of each dollar of principal being redeemed and the amount of interest (exclusive of interest accrued to the date of redemption) that would have been payable in respect of each such dollar if such redemption had not been made,
determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate (as defined below) (determined on the third business day preceding the date that notice of such redemption is given) from the respective dates on
which such principal and interest would have been payable if such redemption had not been made, to the date of redemption, over (ii) the aggregate principal amount of the Notes being redeemed. 

 

	•	 “Reinvestment Rate” means the yield on Treasury securities at a constant maturity corresponding to
the remaining life (as of the date of redemption, and rounded to the nearest month) to May 24, 2024, of the principal being redeemed (the “Treasury Yield”), plus 0.220%. For purposes of the Notes, the Treasury Yield shall be equal to
the arithmetic mean of the yields published in the Statistical Release (as defined below) under the heading “Week Ending” for “U.S. Government Securities — Treasury Constant Maturities” with a maturity equal to such
remaining life; provided that if no published maturity exactly corresponds to such remaining life, then the Treasury Yield shall be interpolated or extrapolated on a straight-line basis from the arithmetic means of the yields for the next shortest
and next longest published maturities. For purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount shall be used. If the format or content of the
Statistical Release changes in a manner that precludes determination of the Treasury Yield in the above manner, then the Treasury Yield shall be determined in the manner that most closely approximates the above manner, as reasonably determined by
the Company. 

  

	•	 “Statistical Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve and which reports yields on actively traded United States government securities adjusted to constant maturities or, if such statistical release is not published at the time of any
determination under the Indenture, then such other reasonably comparable index which shall be designated by the Company. 

	 	(4)	 The Company may also redeem the Notes, at its option, (i) in whole, but not in part, on May 24, 2024,
or (ii) in whole at any time or in part from time to time, on or after April 24, 2025 at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the
date of redemption. 

 Holders shall be given not less than 15 days’ nor more than 60 days’ prior notice by the Trustee of the
date fixed for such redemption described in (1) and (2) above. Holders shall be given not less than 5 days’ nor more than 30 days’ prior notice by the Trustee of the date fixed for such redemption described in (3) and (4) above.

 All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. The Notes are governed by the
laws of the State of New York. 

 Schedule 1 

Redemptions and Amount of Securities 
  

							
	 Date of

partial

redemption
	 	 Aggregate

principal amount
 of
Securities then
 redeemed
	 	 Remaining
principal amount

of this Global

Security
	 	 Authorized SignatureExhibit 10.1

 

AUDIOEYE, INC.

2020 EQUITY INCENTIVE PLAN

 

(As Amended May 20, 2022)

 

1.       Purpose.
The purpose of the AudioEye, Inc. 2020 Equity Incentive Plan (the “Plan”) is to attract
and retain the best available personnel for positions of responsibility with the Company, to provide additional incentives to them and
align their interests with those of the Company’s stockholders, and to thereby promote the Company’s long-term business success.

 

2.       Definitions.
In this Plan, the following definitions will apply. 

 

(a)       “Affiliate”
means any entity that is a Subsidiary or Parent of the Company.

 

(b)       “Award”
means a grant made under the Plan in the form of Options, Stock Appreciation Rights, Restricted Stock, Stock Units, Other Stock-Based
Awards or Cash Incentive Awards. 

 

(c)       “Award
Agreement” means the written or electronic agreement, notice or other document containing the terms and conditions applicable to
each Award granted under the Plan, including all amendments thereto. An Award Agreement is subject to the terms and conditions of the
Plan.

 

(d)       “Board”
means the Board of Directors of the Company.

 

(e)       “Cash
Incentive Award” means a dollar-denominated performance-based Award as described in Section 11(b).

 

(f)       “Cause”
with respect to any Participant shall have the meaning specified in the Participant’s Award Agreement. In the absence of any definition
in the Award Agreement, “Cause” shall have the equivalent meaning or the same meaning as “cause” or “for
cause” set forth in any employment, consulting, or other agreement for the performance of services between the Participant and the
Company or an Affiliate or, in the absence of any such agreement or any such definition in such agreement, such term shall mean (i) Participant’s
failure to substantially perform the fundamental duties and responsibilities associated with Participant’s position for any reason
other than a physical or mental disability, including Participant’s failure or refusal to carry out reasonable instructions; (ii)
Participant’s material breach of any material written Company policy; (iii) Participant’s gross misconduct in the performance
of Participant’s duties for the Company; (iv) Participant’s material breach of the terms of his or her employment, consulting
or other similar agreement with the Company or an Affiliate, if any; (v) being arrested or charged with any fraudulent or felony criminal
offense or any other criminal offense which reflects adversely on the Company or reflects conduct or character that the Board reasonably
concludes is inconsistent with continued employment; or (vi) any criminal conduct that is a “statutory disqualifying event”
(as defined under federal securities laws, rules and regulations). 

 

(g)       “Change
in Control” means, unless otherwise defined in a then-effective written agreement (including an Award Agreement) between a Participant
and the Company or any Affiliate, one of the following: 

 

(1)       An
Exchange Act Person becomes the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company
representing more than 80% of the combined voting power of the Company’s then outstanding Voting Securities, except that the following
will not constitute a Change in Control:

 

(A)       any
acquisition of securities of the Company by an Exchange Act Person from the Company for the purpose of providing financing to the Company;

 

(B)       any
formation of a Group consisting solely of beneficial owners of the Company's Voting Securities as of the effective date of this Plan;
or

 

(C)       any
repurchase or other acquisition by the Company of its Voting Securities that causes any Exchange Act Person to become the beneficial owner
of more than 80%.

 

If, however, an Exchange Act Person or Group
referenced in clause (A), (B) or (C) above acquires beneficial ownership of additional Company Voting Securities after initially
becoming the beneficial owner of more than 80% of the combined voting power of the Company’s Voting Securities by one of the
means described in those clauses, then a Change in Control will be deemed to have occurred.

 

    1

     

    

 

(2)       Individuals
who are Continuing Directors cease for any reason to constitute a majority of the members of the Board.

 

(3)       A
Corporate Transaction is consummated, unless, immediately following such Corporate Transaction: (A) all or substantially all of the individuals
and entities who were the beneficial owners of the Company's Voting Securities immediately prior to such Corporate Transaction beneficially
own, directly or indirectly, more than 80% of the combined voting power of the then outstanding Voting Securities of the surviving or
acquiring entity resulting from such Corporate Transaction (including beneficial ownership through any Parent of such entity) in substantially
the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Company's Voting Securities; (B) no Exchange
Act Person beneficially owns, directly or indirectly, more than 80% of the combined voting power of the Voting Securities of the entity
resulting from such Corporate Transaction; and (C) at least a majority of the members of the board of directors (or comparable governors)
of the entity resulting from such Corporate Transaction were Continuing Directors at the time of the initial agreement, or the action
of the Board, providing for such Corporate Transaction.

 

Notwithstanding the foregoing, to the extent that
any Award constitutes a deferral of compensation subject to Code Section 409A, and if that Award provides for a change in the time or
form of payment upon a Change in Control, then no Change in Control shall be deemed to have occurred upon an event described in this Section
2(g) unless the event would also constitute a change in ownership or effective control of, or a change in the ownership of a substantial
portion of the assets of, the Company under Code Section 409A.

 

(h)       “Code”
means the Internal Revenue Code of 1986, as amended and in effect from time to time. For purposes of the Plan, references to sections
of the Code shall be deemed to include any applicable regulations thereunder and any successor or similar statutory provisions. 

 

(i)       “Committee”
means two or more Non-Employee Directors designated by the Board to administer the Plan under Section 3, each member of which shall
be (i) an independent director within the meaning of applicable stock exchange rules and regulations and (ii) a non-employee director
within the meaning of Exchange Act Rule 16b-3. 

 

(j)       “Company”
means AudioEye, Inc., a Delaware corporation, and any successor thereto.

 

(k)       “Continuing
Director” means an individual (i) who is, as of the effective date of the Plan, a director of the Company, or (ii) who becomes a
director of the Company after the effective date hereof and whose initial election, or nomination for election by the Company’s
stockholders, was approved by at least a majority of the then Continuing Directors, but excluding, for purposes of this clause (ii), an
individual whose initial assumption of office occurs as the result of an actual or threatened proxy contest involving the solicitation
of proxies or consents by a person or Group other than the Board, or by reason of an agreement intended to avoid or settle an actual or
threatened proxy contest.

 

(l)       “Corporate
Transaction” means (i) a sale or other disposition of all or substantially all of the assets of the Company, or (ii) a merger, consolidation,
share exchange or similar transaction involving the Company, regardless of whether the Company is the surviving entity. 

 

(m)       “Disability”
means (A) any permanent and total disability under any long-term disability plan or policy of the Company or its Affiliates that covers
the Participant, or (B) if there is no such long-term disability plan or policy, “total and permanent disability” within the
meaning of Code Section 22(e)(3).

 

(n)       “Employee”
means an employee of the Company or an Affiliate.

 

(o)       “Exchange
Act” means the Securities Exchange Act of 1934, as amended and in effect from time to time.

 

(p)       “Exchange
Act Person” means any natural person, entity or Group other than (i) the Company or any Affiliate; (ii) any employee benefit plan
(or related trust) sponsored or maintained by the Company or any Affiliate; (iii) an underwriter temporarily holding securities in connection
with a registered public offering of such securities; or (iv) an entity whose Voting Securities are beneficially owned by the beneficial
owners of the Company’s Voting Securities in substantially the same proportions as their beneficial ownership of the Company’s
Voting Securities. 

 

(q)       “Fair
Market Value” means the fair market value of a Share determined as follows:

 

    2

     

    

 

(1)       If
the Shares are readily tradable on an established securities market (as determined under Code Section 409A), then Fair Market Value will
be the closing sales price for a Share on the principal securities market on which it trades on the date for which it is being determined,
or if no sale of Shares occurred on that date, on the next preceding date on which a sale of Shares occurred, as reported in The Wall
Street Journal or such other source as the Committee deems reliable; or

 

(2)       If
the Shares are not then readily tradable on an established securities market (as determined under Code Section 409A), then Fair Market
Value will be determined by the Committee as the result of a reasonable application of a reasonable valuation method that satisfies the
requirements of Code Section 409A.

 

(r)       “Full
Value Award” means an Award other than an Option Award, Stock Appreciation Right Award or Cash Incentive Award.

 

(s)       “Good
Reason” with respect to any Participant shall have the meaning specified in the Participant’s Award Agreement. In the absence
of any definition in the Award Agreement, “Good Reason” shall have the equivalent meaning or the same meaning as “good
reason” or “for good reason” set forth in any employment, consulting, or other agreement for the performance of services
between the Participant and the Company or an Affiliate or, in the absence of any such agreement or any such definition in such agreement,
such term shall mean (i) the assignment to the Participant of any duties inconsistent in any material respect with the Participant’s
duties or responsibilities as assigned by the Company or an Affiliate, or any other action by the Company or an Affiliate which results
in a material diminution in such duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action
not taken in bad faith and which is remedied by the Company or an Affiliate promptly after receipt of notice thereof given by the Participant;
or (ii) any material failure by the Company or an Affiliate to comply with its obligations to the Participant as agreed upon, other than
an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company or an Affiliate promptly
after receipt of notice thereof given by the Participant. An event or action will not give the Participant grounds for Good Reason unless
(A) the Participant gives the Company written notice within 60 days after the initial existence of the event or action that the Participant
intends to resign for Good Reason due to such event or action; (B) the event or action is not reasonably cured by the Company within 30
days after the Company receives written notice from the Participant; and (C) the Participant terminates service within 30 days after the
end of the cure period.

 

(t)       “Grant
Date” means the date on which the Committee approves the grant of an Award under the Plan, or such later date as may be specified
by the Committee on the date the Committee approves the Award.

 

(u)       “Group”
means two or more persons who act, or agree to act together, as a partnership, limited partnership, syndicate or other group for the purpose
of acquiring, holding, voting or disposing of securities of the Company.

 

(v)       “Non-Employee
Director” means a member of the Board who is not an Employee. 

 

(w)       “Option”
means a right granted under the Plan to purchase a specified number of Shares at a specified price. An “Incentive Stock Option”
or “ISO” means any Option designated as such and granted in accordance with the requirements of Code Section 422. A “Non-Qualified
Stock Option” or “NQSO” means an Option other than an Incentive Stock Option.

 

(x)       “Other
Stock-Based Award” means an Award described in Section 11(a) of this Plan.

 

(y)       “Parent”
means a “parent corporation,” as defined in Code Section 424(e).

 

(z)       “Participant”
means a Service Provider to whom a then-outstanding Award has been granted under the Plan.

 

(aa)    “Plan”
means this AudioEye, Inc. 2020 Equity Incentive Plan, as amended and in effect from time to time.

 

(bb)    “Restricted
Stock” means Shares issued to a Participant that are subject to such restrictions on transfer, vesting conditions and other restrictions
or limitations as may be set forth in this Plan and the applicable Award Agreement. 

 

(cc)     “Service”
means the provision of services by a Participant to the Company or any Affiliate in any Service Provider capacity. A Service Provider’s
Service shall be deemed to have terminated either upon an actual cessation of providing services to the Company or any Affiliate or upon
the entity to which the Service Provider provides services ceasing to be an Affiliate. Except as otherwise provided in this Plan or any
Award Agreement, Service shall not be deemed terminated in the case of (i) any approved leave of absence; (ii) transfers among the Company
and any Affiliates in any Service Provider capacity; or (iii) any change in status so long as the individual remains in the service of
the Company or any Affiliate in any Service Provider capacity. 

 

    3

     

    

 

(dd)     “Service
Provider” means an Employee, a Non-Employee Director, or any natural person who is a consultant or advisor, or is employed by a
consultant or advisor retained by the Company or any Affiliate, and who provides services (other than in connection with (i) a capital-raising
transaction or (ii) promoting or maintaining a market in Company securities) to the Company or any Affiliate.

 

(ee)     “Share”
means a share of Stock.

 

(ff)       “Stock”
means the common stock, $0.00001 par value per Share, of the Company.

 

(gg)      “Stock
Appreciation Right” or “SAR” means the right to receive, in cash and/or Shares as determined by the Committee, an amount
equal to the appreciation in value of a specified number of Shares between the Grant Date of the SAR and its exercise date.

 

(hh)     “Stock
Unit” means a right to receive, in cash and/or Shares as determined by the Committee, the Fair Market Value of a Share, subject
to such restrictions on transfer, vesting conditions and other restrictions or limitations as may be set forth in this Plan and the applicable
Award Agreement.

 

(ii)       “Subsidiary”
means a “subsidiary corporation,” as defined in Code Section 424(f), of the Company.

 

(jj)       “Substitute
Award” means an Award granted upon the assumption of, or in substitution or exchange for, outstanding awards granted by a company
or other entity acquired by the Company or any Affiliate or with which the Company or any Affiliate combines. The terms and conditions
of a Substitute Award may vary from the terms and conditions set forth in the Plan to the extent that the Committee at the time of the
grant may deem appropriate to conform, in whole or in part, to the provisions of the award in substitution for which it has been granted.

 

(kk)      “Voting
Securities” of an entity means the outstanding equity securities (or comparable equity interests) entitled to vote generally in
the election of directors of such entity.

 

3.       Administration
of the Plan.

 

(a)       Administration.
The authority to control and manage the operations and administration of the Plan shall be vested in the Committee in accordance with
this Section 3.

 

(b)       Scope
of Authority. Subject to the terms of the Plan, the Committee shall have the authority, in its discretion, to take such actions as
it deems necessary or advisable to administer the Plan, including:

 

(1)       determining
the Service Providers to whom Awards will be granted, the timing of each such Award, the type of and the number of Shares covered by each
Award, the terms, conditions, performance criteria, restrictions and other provisions of Awards, and the manner in which Awards are paid
or settled;

 

(2)       cancelling
or suspending an Award, accelerating the vesting or extending the exercise period of an Award, or otherwise amending the terms and conditions
of any outstanding Award, subject to the requirements of Sections 15(d) and 15(e);

 

(3)       adopting
sub-plans or special provisions applicable to Awards, establishing, amending or rescinding rules to administer the Plan, interpreting
the Plan and any Award or Award Agreement, reconciling any inconsistency, correcting any defect or supplying an omission in the Plan or
any Award Agreement, and making all other determinations necessary or desirable for the administration of the Plan;

 

(4)       granting
Substitute Awards under the Plan;

 

(5)       taking
such actions as are provided in Section 3(c) with respect to Awards to foreign Service Providers; and

 

(6)       requiring
or permitting the deferral of the settlement of an Award, and establishing the terms and conditions of any such deferral.

 

Notwithstanding the foregoing, the Board shall
perform the duties and have the responsibilities of the Committee with respect to Awards made to Non-Employee Directors.

 

    4

     

    

 

(c)       Awards
to Foreign Service Providers. The Committee may grant Awards to Service Providers who are foreign nationals, who are located outside
of the United States or who are not compensated from a payroll maintained in the United States, or who are otherwise subject to (or could
cause the Company to be subject to) legal or regulatory requirements of countries outside of the United States, on such terms and conditions
different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to comply with applicable
foreign laws and regulatory requirements and to promote achievement of the purposes of the Plan. In connection therewith, the Committee
may establish such subplans and modify exercise procedures and other Plan rules and procedures to the extent such actions are deemed necessary
or desirable, and may take any other action that it deems advisable to obtain local regulatory approvals or to comply with any necessary
local governmental regulatory exemptions.

 

(d)       Acts
of the Committee; Delegation. A majority of the members of the Committee shall constitute a quorum for any meeting of the Committee,
and any act of a majority of the members present at any meeting at which a quorum is present or any act unanimously approved in writing
by all members of the Committee shall be the act of the Committee. Any such action of the Committee shall be valid and effective even
if one or more members of the Committee at the time of such action are later determined not to have satisfied all of the criteria for
membership in clauses (i) and (ii) of Section 2(i). To the extent not inconsistent with applicable law or stock exchange rules, the Committee
may delegate all or any portion of its authority under the Plan to any one or more of its members or, as to Awards to Participants who
are not subject to Section 16 of the Exchange Act, to one or more directors or executive officers of the Company or to a committee of
the Board comprised of one or more directors of the Company. The Committee may also delegate non-discretionary administrative responsibilities
in connection with the Plan to such other persons as it deems advisable. 

 

(e)       Finality
of Decisions. The Committee’s interpretation of the Plan and of any Award or Award Agreement made under the Plan and all related
decisions or resolutions of the Board or Committee shall be final and binding on all parties with an interest therein. 

 

(f)       Indemnification.
Each person who is or has been a member of the Committee or of the Board, and any other person to whom the Committee delegates authority
under the Plan, shall be indemnified by the Company, to the maximum extent permitted by law, against liabilities and expenses imposed
upon or reasonably incurred by such person in connection with or resulting from any claims against such person by reason of the performance
of the individual's duties under the Plan. This right to indemnification is conditioned upon such person providing the Company an opportunity,
at the Company’s expense, to handle and defend the claims before such person undertakes to handle and defend them on such person’s
own behalf. The Company will not be required to indemnify any person for any amount paid in settlement of a claim unless the Company has
first consented in writing to the settlement. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such person or persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law,
or otherwise.

 

4.       Shares
Available Under the Plan.

 

(a)       Maximum
Shares Available. Subject to Section 4(b) and to adjustment as provided in Section 12(a), the number of Shares that may be the subject
of Awards and issued under the Plan shall be 2,500,000. No further awards may be made under the AudioEye, Inc. 2019 Equity Incentive Plan
after the effective date of this Plan. Shares issued under the Plan may come from authorized and unissued shares or treasury shares. In
determining the number of Shares to be counted against this share reserve in connection with any Award, the following rules shall apply:

 

(1)       Where
the number of Shares subject to an Award is variable on the Grant Date, the number of Shares to be counted against the share reserve shall
be the maximum number of Shares that could be received under that particular Award, until such time as it can be determined that only
a lesser number of shares could be received.

 

(2)       Where
two or more types of Awards are granted to a Participant in tandem with each other, such that the exercise of one type of Award with respect
to a number of Shares cancels at least an equal number of Shares of the other, the number of Shares to be counted against the share reserve
shall be the largest number of Shares that would be counted against the share reserve under either of the Awards.

 

(3)       Shares
subject to Substitute Awards shall not be counted against the share reserve, nor shall they reduce the Shares authorized for grant to
a Participant in any calendar year.

 

(4)       Awards
that may be settled solely in cash shall not be counted against the share reserve, nor shall they reduce the Shares authorized for grant
to a Participant in any calendar year.

 

    5

     

    

 

(b)       Effect
of Forfeitures and Other Actions. Any Shares subject to an Award that expires, is cancelled or forfeited or is settled for cash shall,
to the extent of such cancellation, forfeiture, expiration or cash settlement, again become available for Awards under this Plan, and
the share reserve under Section 4(a) shall be correspondingly replenished. The following Shares shall not, however, again become available
for Awards or replenish the share reserve under Section 4(a): (i) Shares tendered (either actually or by attestation) by the Participant
or withheld by the Company in payment of the exercise price of a stock option issued under this Plan, (ii) Shares tendered (either actually
or by attestation) by the Participant or withheld by the Company to satisfy any tax withholding obligation with respect to an award under
this Plan, (iii) Shares repurchased by the Company with proceeds received from the exercise of a stock option issued under this Plan,
and (iv) Shares subject to a stock appreciation right award issued under this Plan that are not issued in connection with the stock settlement
of that award upon its exercise.

 

(c)       Effect
of Plans Operated by Acquired Companies. If a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary
combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition
or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate,
using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration
payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan
and shall supplement the Share reserve under Section 4(a). Awards using such available shares shall not be made after the date awards
or grants could have been made under the terms of the pre-existing plan absent the acquisition or combination, and shall only be made
to individuals who were not Employees or Non-Employee Directors prior to such acquisition or combination.

 

(d)       No
Fractional Shares. Unless otherwise determined by the Committee, the number of Shares subject to an Award shall always be a whole
number. No fractional Shares may be issued under the Plan, but the Committee may, in its discretion, adopt any rounding convention it
deems suitable or pay cash in lieu of any fractional Share in settlement of an Award.

 

(e)       Limits
on Awards to Non-Employee Directors. The maximum number of Shares subject to Awards granted to any Non-Employee Director during any
calendar year, together with any cash fees paid to such Non-Employee Director during such calendar year, shall not exceed a total value
of $400,000 (calculating the value of any Awards based on the grant date fair value for financial reporting purposes).

 

5.       Eligibility.
Participation in the Plan is limited to Service Providers. Incentive Stock Options may only be granted
to Employees. 

 

6.       General
Terms of Awards.

 

(a)       Award
Agreement. Each Award shall be evidenced by an Award Agreement setting forth the amount of the Award together with such other terms
and conditions applicable to the Award (and not inconsistent with the Plan) as determined by the Committee. An Award to a Participant
may be made singly or in combination with any form of Award. Two types of Awards may be made in tandem with each other such that the exercise
of one type of Award with respect to a number of Shares reduces the number of Shares subject to the related Award by at least an equal
amount.

 

(b)       Vesting
and Term. Each Award Agreement shall set forth the period until the applicable Award is scheduled to vest and, if applicable, expire
(which shall not be more than ten years from the Grant Date), and the applicable vesting conditions and any applicable performance period.
The Committee may provide in an Award Agreement for such vesting conditions and timing as it may determine.

 

(c)       Transferability.
Except as provided in this Section 6(c), (i) during the lifetime of a Participant, only the Participant or the Participant’s guardian
or legal representative may exercise an Option or SAR, or receive payment with respect to any other Award; and (ii) no Award may be sold,
assigned, transferred, exchanged or encumbered, voluntarily or involuntarily, other than by will or the laws of descent and distribution.
Any attempted transfer in violation of this Section 6(c) shall be of no effect. The Committee may, however, provide in an Award Agreement
or otherwise that an Award (other than an Incentive Stock Option) may be transferred pursuant to a domestic relations order or may be
transferable by gift to any “family member” (as defined in General Instruction A.1(a)(5) to Form S-8 under the Securities
Act of 1933) of the Participant. Any Award held by a transferee shall continue to be subject to the same terms and conditions that were
applicable to that Award immediately before the transfer thereof. For purposes of any provision of the Plan relating to notice to a Participant
or to acceleration or termination of an Award upon the death or termination of Service of a Participant, the references to “Participant”
shall mean the original grantee of an Award and not any transferee.

 

    6

     

    

 

(d)       Designation
of Beneficiary. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under
the Plan is to be exercised in case of such Participant’s death. Each designation will revoke all prior designations by the same
Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing
with the Company during the Participant’s lifetime.

 

(e)       Termination
of Service. Unless otherwise provided in an applicable Award Agreement or another then-effective written agreement between a Participant
and the Company, and subject to Section 12 of this Plan, if a Participant’s Service with the Company and all of its Affiliates terminates,
the following provisions shall apply (in all cases subject to the scheduled expiration of an Option or SAR Award, as applicable): 

 

(1)       Upon
termination of Service for Cause, all unexercised Option and SAR Awards and all unvested portions of any other outstanding Awards shall
be immediately forfeited without consideration.

 

(2)        Upon termination
of Service for any other reason, all unvested and unexercisable portions of any outstanding Awards shall be immediately forfeited without
consideration.

 

(3)       Upon
termination of Service for any reason other than Cause, death or Disability, the currently vested and exercisable portions of Option and
SAR Awards may be exercised for a period of three months after the date of such termination. However, if a Participant thereafter dies
during such three-month period, the vested and exercisable portions of the Option and SAR Awards may be exercised for a period of one
year after the date of such termination.

 

(4)       Upon
termination of Service due to death or Disability, the currently vested and exercisable portions of Option and SAR Awards may be exercised
for a period of one year after the date of such termination.

 

(f)       Rights
as Stockholder. No Participant shall have any rights as a stockholder with respect to any Shares covered by an Award unless and until
the date the Participant becomes the holder of record of the Shares, if any, to which the Award relates.

 

(g)       Performance-Based
Awards. Any Award may be granted as a performance-based Award if the Committee establishes one or more measures of corporate, business
unit or individual performance which must be attained, and the performance period over which the specified performance is to be attained,
as a condition to the grant, vesting, exercisability, lapse of restrictions and/or settlement in cash or Shares of such Award. In connection
with any such Award, the Committee shall determine the extent to which performance measures have been attained and other applicable terms
and conditions have been satisfied, and the degree to which the grant, vesting, exercisability, lapse of restrictions and/or settlement
of such Award has been earned. The Committee shall also have the authority to provide, in an Award Agreement or otherwise, for the modification
of a performance period and/or adjustments to or waivers of the achievement of performance goals under specified circumstances such as
(i) the occurrence of events that are unusual in nature or infrequently occurring, such as a Change in Control, an equity restructuring
(as described in Section 12(a)), acquisitions, divestitures, restructuring activities, recapitalizations, or asset write-downs, (ii) a
change in applicable tax laws or accounting principles, or (iii) the Participant’s death or Disability.

 

(h)       Dividends
and Dividend Equivalents. No dividends, dividend equivalents or distributions will be paid with respect to Shares subject to an Option
or SAR Award. Any dividends or distributions payable with respect to Shares that are subject to the unvested portion of a Restricted Stock
Award will be subject to the same restrictions and risk of forfeiture as the Shares to which such dividends or distributions relate. In
its discretion, the Committee may provide in an Award Agreement for a Stock Unit Award or an Other Stock-Based Award that the Participant
will be entitled to receive dividend equivalents, based on dividends actually declared and paid on outstanding Shares, on the units or
other Share equivalents subject to the Stock Unit Award or Other Stock-Based Award, and such dividend equivalents will be subject to the
same restrictions and risk of forfeiture as the units or other Share equivalents to which such dividend equivalents relate. The additional
terms of any such dividend equivalents will be as set forth in the applicable Award Agreement, including the time and form of payment
and whether such dividend equivalents will be credited with interest or deemed to be reinvested in additional units or Share equivalents.
Any Shares issued or issuable during the term of this Plan as the result of the reinvestment of dividends or the deemed reinvestment of
dividend equivalents in connection with an Award shall be counted against, and replenish upon any subsequent forfeiture, the Plan’s
share reserve as provided in Section 4.

 

    7

     

    

 

(i)       Deferrals
of Full Value Awards and Cash Incentive Awards. The Committee may, in its discretion, permit or require the deferral by a Participant
of the issuance of Shares or payment of cash in settlement of any Full Value Award or Cash Incentive Award, subject to such terms, conditions,
rules and procedures as it may establish or prescribe for such purpose and with the intention of complying with the applicable requirements
of Code Section 409A. The terms, conditions, rules and procedures for any such deferral shall be set forth in writing in the relevant
Award Agreement or in such other agreement, plan or document as the Committee may determine, or some combination of such documents. The
terms, conditions, rules and procedures for any such deferral shall address, to the extent relevant, matters such as: (i) the amount of
compensation that may or must be deferred (or the method for calculating the amount); (ii) the permissible time(s) and form(s) of payment
of deferred amounts; (iii) the terms and conditions of any deferral elections by a Participant or of any deferral required by the Company;
and (iv) the crediting of interest or dividend equivalents on deferred amounts.

 

7.       Stock
Option Awards.

 

(a)       Type
and Exercise Price. The Award Agreement pursuant to which an Option Award is granted shall specify whether the Option is an Incentive
Stock Option or a Non-Qualified Stock Option. The exercise price at which each Share subject to an Option Award may be purchased shall
be determined by the Committee and set forth in the Award Agreement, and shall not be less than the Fair Market Value of a Share on the
Grant Date, except in the case of Substitute Awards (to the extent consistent with Code Section 409A and, in the case of Incentive Stock
Options, Code Section 424). 

 

(b)       Payment
of Exercise Price. The purchase price of the Shares with respect to which an Option Award is exercised shall be payable in full at
the time of exercise. The purchase price may be paid in cash or in such other manner as the Committee may permit, including by payment
under a broker-assisted sale and remittance program, by withholding Shares otherwise issuable to the Participant upon exercise of the
Option or by delivery to the Company of Shares (by actual delivery or attestation) already owned by the Participant (in either case, such
Shares having a Fair Market Value as of the date the Option is exercised equal to the purchase price of the Shares being purchased).

 

(c)       Exercisability
and Expiration. Each Option Award shall be exercisable in whole or in part on the terms provided in the Award Agreement. No Option
Award shall be exercisable at any time after its scheduled expiration. When an Option Award is no longer exercisable, it shall be deemed
to have terminated.

 

(d)       Incentive
Stock Options. 

 

(1)        An Option Award
will constitute an Incentive Stock Option Award only if the Participant receiving the Option Award is an Employee, and only to the extent
that (i) it is so designated in the applicable Award Agreement and (ii) the aggregate Fair Market Value (determined as of the Option Award’s
Grant Date) of the Shares with respect to which Incentive Stock Option Awards held by the Participant first become exercisable in any
calendar year (under the Plan and all other plans of the Company and its Affiliates) does not exceed $100,000 or such other amount specified
by the Code. To the extent an Option Award granted to a Participant exceeds this limit, the Option Award shall be treated as a Non-Qualified
Stock Option Award. The maximum number of Shares that may be issued upon the exercise of Incentive Stock Option Awards under the Plan
shall be 2,500,000, subject to adjustment as provided in Section 12(a).

 

(2)        No Participant
may receive an Incentive Stock Option Award under the Plan if, immediately after the grant of such Award, the Participant would own (after
application of the rules contained in Code Section 424(d)) Shares possessing more than 10% of the total combined Voting Power of all classes
of stock of the Company or an Affiliate, unless (i) the per Share exercise price for such Award is at least 110% of the Fair Market Value
of a Share on the Grant Date and (ii) such Award will expire no later than five years after its Grant Date.

 

(3)       For
purposes of continued Service by a Participant who has been granted an Incentive Stock Option Award, no approved leave of absence may
exceed three months unless reemployment upon expiration of such leave is provided by statute or contract. If reemployment is not so provided,
then on the date six months following the first day of such leave, any Incentive Stock Option held by the Participant shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-Qualified Stock Option.

 

(4)       If
an Incentive Stock Option Award is exercised after the expiration of the exercise periods that apply for purposes of Code Section 422,
such Option shall thereafter be treated as a Non-Qualified Stock Option.

 

(5)       The
Award Agreement covering an Incentive Stock Option Award shall contain such other terms and provisions that the Committee determines necessary
to qualify the Option Award as an Incentive Stock Option Award.

 

    8

     

    

 

(e)       Extension
if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Option Award during the applicable post-termination
of Service exercise period as set forth in Section 6(e) or in the applicable Award Agreement is prevented by Section 16(c), the Option
shall remain exercisable until the later of (i) 30 days after the date the exercise of the Option would no longer be prevented by such
provision, or (ii) the end of the applicable post-termination exercise period, but in no event later than the scheduled expiration date
of the Option as set forth in the applicable Award Agreement.

 

8.       Stock
Appreciation Right Awards.

 

(a)       Nature
of Award. An Award of Stock Appreciation Rights shall be subject to such terms and conditions as are determined by the Committee,
and shall provide a Participant the right to receive upon exercise of the SAR Award all or a portion of the excess of (i) the Fair Market
Value as of the date of exercise of the SAR Award of the number of Shares as to which the SAR Award is being exercised, over (ii) the
aggregate exercise price for such number of Shares. The per Share exercise price for any SAR Award shall be determined by the Committee
and set forth in the applicable Award Agreement, and shall not be less than the Fair Market Value of a Share on the Grant Date, except
in the case of Substitute Awards (to the extent consistent with Code Section 409A).

 

(b)      Exercise
of SAR. Each SAR Award may be exercisable in whole or in part at the times, on the terms and in the manner provided in the Award Agreement.
No SAR Award shall be exercisable at any time after its scheduled expiration. When a SAR Award is no longer exercisable, it shall be deemed
to have terminated. Upon exercise of a SAR Award, payment to the Participant shall be made at such time or times as shall be provided
in the Award Agreement in the form of cash, Shares or a combination of cash and Shares as determined by the Committee. The Award Agreement
may provide for a limitation upon the amount or percentage of the total appreciation on which payment (whether in cash and/or Shares)
may be made in the event of the exercise of a SAR Award. 

 

9.       Restricted
Stock Awards.

 

(a)       Vesting
and Consideration. Shares subject to a Restricted Stock Award shall be subject to vesting and the lapse of applicable restrictions
based on such conditions or factors and occurring over such period of time as the Committee may determine in its discretion. The Committee
may provide whether any consideration other than Services must be received by the Company or any Affiliate as a condition precedent to
the grant of a Restricted Stock Award, and may correspondingly provide for Company reacquisition or repurchase rights if such additional
consideration has been required and some or all of a Restricted Stock Award does not vest.

 

(b)       Shares
Subject to Restricted Stock Awards. Unvested Shares subject to a Restricted Stock Award shall be evidenced by a book-entry in the
name of the Participant with the Company’s transfer agent or by one or more Stock certificates issued in the name of the Participant.
Any such Stock certificate shall be deposited with the Company or its designee, together with an assignment separate from the certificate,
in blank, signed by the Participant, and bear an appropriate legend referring to the restricted nature of the Restricted Stock evidenced
thereby. Any book-entry shall be subject to comparable restrictions and corresponding stop transfer instructions. Upon the vesting of
Shares of Restricted Stock, and the Company’s determination that any necessary conditions precedent to the release of vested Shares
(such as satisfaction of tax withholding obligations and compliance with applicable legal requirements) have been satisfied, such vested
Shares shall be made available to the Participant in such manner as may be prescribed or permitted by the Committee. Except as otherwise
provided in the Plan or an applicable Award Agreement, a Participant with a Restricted Stock Award shall have all the rights of a shareholder,
including the right to vote the Shares of Restricted Stock.

 

10.       Stock
Unit Awards.

 

(a)       Vesting
and Consideration. A Stock Unit Award shall be subject to vesting and the lapse of applicable restrictions based on such conditions
or factors and occurring over such period of time as the Committee may determine in its discretion. If vesting of a Stock Unit Award is
conditioned on the achievement of specified performance goals, the extent to which they are achieved over the specified performance period
and the number of Stock Units that will be earned and eligible to vest shall be determined by the Committee. The Committee may provide
whether any consideration other than Services must be received by the Company or any Affiliate as a condition precedent to the settlement
of a Stock Unit Award. 

 

(b)       Settlement
of Award. Following the vesting of a Stock Unit Award, and the Company’s determination that any necessary conditions precedent
to the settlement of the Award (such as satisfaction of tax withholding obligations and compliance with applicable legal requirements)
have been satisfied, settlement of the Award and payment to the Participant shall be made at such time or times in the form of cash, Shares
(which may themselves be considered Restricted Stock under the Plan) or a combination of cash and Shares as determined by the Committee.

 

    9

     

    

 

11.       Other
Awards.

 

(a)       Other
Stock-Based Awards. The Committee may from time to time grant Shares and other Awards that are valued by reference to and/or payable
in whole or in part in Shares under the Plan. The Committee shall determine the terms and conditions of such Awards, which shall be consistent
with the terms and purposes of the Plan. The Committee may direct the Company to issue Shares subject to restrictive legends and/or stop
transfer instructions that are consistent with the terms and conditions of the Award to which the Shares relate. 

 

(b)       Cash
Incentive Awards. A Cash Incentive Award shall be considered a performance-based Award for purposes of, and subject to, Section 6(g),
the payment of which shall be contingent upon the degree to which one or more specified performance goals have been achieved over the
specified performance period. Cash Incentive Awards may be granted to any Participant in such dollar-denominated amounts and upon such
terms and at such times as shall be determined by the Committee. Following the completion of the applicable performance period and the
vesting of a Cash Incentive Award, payment of the settlement amount of the Award to the Participant shall be made at such time or times
in the form of cash, Shares or other forms of Awards under the Plan (valued for these purposes at their grant date fair value) or a combination
of cash, Shares and other forms of Awards as determined by the Committee and specified in the applicable Award Agreement.

 

12.       Changes
in Capitalization, Corporate Transactions, Change in Control.

 

(a)       Adjustments
for Changes in Capitalization. In the event of any equity restructuring (within the meaning of FASB ASC Topic 718) that causes the
per share value of Shares to change, such as a stock dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary
dividend, the Committee shall make such adjustments as it deems equitable and appropriate to (i) the aggregate number and kind of Shares
or other securities issued or reserved for issuance under the Plan, (ii) the number and kind of Shares or other securities subject to
outstanding Awards, (iii) the exercise price of outstanding Options and SARs, and (iv) any maximum limitations prescribed by the Plan
with respect to certain types of Awards or the grants to individuals of certain types of Awards. In the event of any other change in corporate
capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments
described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or
enlargement of rights of Participants.  In either case, any such adjustment shall be conclusive and binding for all purposes of the
Plan.  No adjustment shall be made pursuant to this Section 12(a) in connection with the conversion of any convertible securities
of the Company, or in a manner that would cause Incentive Stock Options to violate Section 422(b) of the Code or cause an Award to
be subject to adverse tax consequences under Section 409A of the Code. 

 

(b)       Corporate
Transactions. Unless otherwise provided in an applicable Award Agreement or another written agreement between a Participant and the
Company, the following provisions shall apply to outstanding Awards in the event of a Change in Control that involves a Corporate Transaction.

 

(1)       Continuation,
Assumption or Replacement of Awards. In the event of a Corporate Transaction, then the surviving or successor entity (or its Parent)
may continue, assume or replace Awards outstanding as of the date of the Corporate Transaction (with such adjustments as may be required
or permitted by Section 12(a)), and such Awards or replacements therefor shall remain outstanding and be governed by their respective
terms, subject to Section 12(b)(4) below. A surviving or successor entity may elect to continue, assume or replace only some Awards or
portions of Awards. For purposes of this Section 12(b)(1), an Award shall be considered assumed or replaced if, in connection with the
Corporate Transaction and in a manner consistent with Code Section 409A (and Code Section 424 if the Award is an ISO), either (i) the
contractual obligations represented by the Award are expressly assumed by the surviving or successor entity (or its Parent) with appropriate
adjustments to the number and type of securities subject to the Award and the exercise price thereof that preserves the intrinsic value
of the Award existing at the time of the Corporate Transaction, or (ii) the Participant has received a comparable equity-based award that
preserves the intrinsic value of the Award existing at the time of the Corporate Transaction and contains terms and conditions that are
substantially similar to those of the Award.

 

(2)       Acceleration.
If and to the extent that outstanding Awards under the Plan are not continued, assumed or replaced in connection with a Corporate
Transaction, then (i) all outstanding Option and SAR Awards shall become fully vested and exercisable for such period of time prior
to the effective time of the Corporate Transaction as is deemed fair and equitable by the Committee, and shall terminate at the
effective time of the Corporate Transaction, (ii) all outstanding Full Value Awards shall fully vest immediately prior to the
effective time of the Corporate Transaction, and (iii) to the extent vesting of any Award is subject to satisfaction of specified
performance goals, such Award shall be deemed “fully vested” for purposes of this Section 12(b)(2) if the performance
goals are deemed to have been satisfied at the target level of performance and the vested portion of the Award at that level of
performance is proportionate to the portion of the performance period that has elapsed as of the effective time of the Corporate
Transaction. The Committee shall provide written notice of the period of accelerated exercisability of Option and SAR Awards to all
affected Participants. The exercise of any Option or SAR Award whose exercisability is accelerated as provided in this Section
12(b)(2) shall be conditioned upon the consummation of the Corporate Transaction and shall be effective only immediately before such
consummation.

 

    10

     

    

 

(3)       Payment
for Awards. If and to the extent that outstanding Awards under the Plan are not continued, assumed or replaced in connection with
a Corporate Transaction, then the Committee may provide that some or all of such outstanding Awards shall be canceled at or immediately
prior to the effective time of the Corporate Transaction in exchange for payments to the holders as provided in this Section 12(b)(3).
The Committee will not be required to treat all Awards similarly for purposes of this Section 12(b)(3). The payment for any Award canceled
shall be in an amount equal to the difference, if any, between (i) the fair market value (as determined in good faith by the Committee)
of the consideration that would otherwise be received in the Corporate Transaction for the number of Shares subject to the Award, and
(ii) the aggregate exercise price (if any) for the Shares subject to such Award. If the amount determined pursuant to the preceding sentence
is not a positive number with respect to any Award, such Award may be canceled pursuant to this Section 12(b)(3) without payment of any
kind to the affected Participant. With respect to an Award whose vesting is subject to the satisfaction of specified performance goals,
the number of Shares subject to such an Award for purposes of this Section 12(b)(3) shall be the number of Shares as to which the Award
would have been deemed “fully vested” for purposes of Section 12(b)(2). Payment of any amount under this Section 12(b)(3)
shall be made in such form, on such terms and subject to such conditions as the Committee determines in its discretion, which may or may
not be the same as the form, terms and conditions applicable to payments to the Company’s stockholders in connection with the Corporate
Transaction, and may, in the Committee’s discretion, include subjecting such payments to vesting conditions comparable to those
of the Award canceled, subjecting such payments to escrow or holdback terms comparable to those imposed upon the Company’s stockholders
under the Corporate Transaction, or calculating and paying the present value of payments that would otherwise be subject to escrow or
holdback terms.

 

(4)      Termination
After a Corporate Transaction. If and to the extent that Awards are continued, assumed or replaced under the circumstances described
in Section 12(b)(1), and if within 12 months after the Corporate Transaction a Participant experiences an involuntary termination of Service
for reasons other than Cause, or voluntarily terminates his or her Service for Good Reason, then (i) outstanding Option and SAR Awards
issued to the Participant that are not yet fully exercisable shall immediately become exercisable in full and shall remain exercisable
for one year following the Participant’s termination of Service, and (ii) any Full Value Awards that are not yet fully vested shall
immediately vest in full (with vesting in full for a performance-based award determined as provided in Section 12(b)(2), except that the
proportionate vesting amount will be determined with respect to the portion of the performance period during which the Participant was
a Service Provider).

 

(c)       Other
Change in Control. Unless otherwise provided in an applicable Award Agreement or another written agreement between a Participant and
the Company, in the event of a Change in Control that does not involve a Corporate Transaction, all Awards will continue in accordance
with their terms; provided, however, if within 12 months after the Change in Control a Participant experiences an involuntary termination
of Service for reasons other than Cause or voluntarily terminates his or her Service for Good Reason, then (i) outstanding Option
and SAR Awards issued to the Participant that are not yet fully exercisable shall immediately become exercisable in full and shall remain
exercisable for one year following the Participant’s termination of Service, (ii) subject to clause (iii) below, any Full Value
Awards that are not yet fully vested shall immediately vest in full, and (iii) to the extent vesting of any Award is subject to satisfaction
of specified performance goals, such Award shall be deemed “fully vested” for purposes of this Section 12(c) if the performance
goals are deemed to have been satisfied at the target level of performance and the vested portion of the Award at that level of performance
is proportionate to the portion of the performance period that has occurred up to the date of such Participant’s termination of
Service.

 

(d)       Dissolution
or Liquidation. Unless otherwise provided in an applicable Award Agreement, in the event of a proposed dissolution or liquidation
of the Company, the Committee will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.
An Award will terminate immediately prior to the consummation of such proposed action. 

 

13.       Plan
Participation and Service Provider Status. Status as a Service Provider shall not be construed as
a commitment that any Award will be made under the Plan to that Service Provider or to eligible Service Providers generally. Nothing in
the Plan or in any Award Agreement or related documents shall confer upon any Service Provider or Participant any right to continued Service
with the Company or any Affiliate, nor shall it interfere with or limit in any way any right of the Company or any Affiliate to terminate
the person’s Service at any time with or without Cause or change such person’s compensation, other benefits, job responsibilities
or title.

 

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14.       Tax
Withholding. The Company or any Affiliate, as applicable, shall have the right to (i) withhold from
any cash payment under the Plan or any other compensation owed to a Participant an amount sufficient to cover any required withholding
taxes related to the grant, vesting, exercise or settlement of an Award, and (ii) require a Participant or other person receiving Shares
under the Plan to pay a cash amount sufficient to cover any required withholding taxes before actual receipt of those Shares. In lieu
of all or any part of a cash payment from a person receiving Shares under the Plan, the Committee may permit the Participant to satisfy
all or any part of the required tax withholding obligations (but not to exceed the maximum individual statutory tax rate in each applicable
jurisdiction) by authorizing the Company to withhold a number of the Shares that would otherwise be delivered to the Participant pursuant
to the Award, or by transferring to the Company Shares already owned by the Participant, with the Shares so withheld or delivered having
a Fair Market Value on the date the taxes are required to be withheld equal to the amount of taxes to be withheld.

 

15.       Effective
Date, Duration, Amendment and Termination of the Plan.

 

(a)       Effective
Date. The Plan shall become effective on the date it is approved by the Company’s stockholders, which shall be considered the
date of its adoption for purposes of Treasury Regulation §1.422-2(b)(2)(i). No Awards shall be made under the Plan prior to its effective
date. 

 

(b)       Duration
of the Plan. The Plan shall remain in effect until all Shares subject to it are distributed, all Awards have expired or terminated,
the Plan is terminated pursuant to Section 15(c), or the tenth anniversary of the effective date of the Plan, whichever occurs first (the
“Termination Date”). Awards made before the Termination Date shall continue to be outstanding in accordance with their terms
and the terms of the Plan unless otherwise provided in the applicable Award Agreements. 

 

(c)       Amendment
and Termination of the Plan. The Board may at any time terminate, suspend or amend the Plan. The Company shall submit any amendment
of the Plan to its stockholders for approval only to the extent required by applicable laws or regulations or the rules of any securities
exchange on which the Shares may then be listed. No termination, suspension, or amendment of the Plan may materially impair the rights
of any Participant under a previously granted Award without the Participant's consent, unless such action is necessary to comply with
applicable law or stock exchange rules. 

 

(d)       Amendment
of Awards. Subject to Section 15(e), the Committee may unilaterally amend the terms of any Award Agreement evidencing an Award previously
granted, except that no such amendment may materially impair the rights of any Participant under the applicable Award without the Participant's
consent, unless such amendment is necessary to comply with applicable law or stock exchange rules or any compensation recovery policy
as provided in Section 16(i). 

 

(e)       No
Option or SAR Repricing. Except as provided in Section 12(a), no Option or Stock Appreciation Right Award granted under the Plan may
be (i) amended to decrease the exercise price thereof, (ii) cancelled in conjunction with the grant of any new Option or Stock Appreciation
Right Award with a lower exercise price, (iii) cancelled in exchange for cash, other property or the grant of any Full Value Award at
a time when the per share exercise price of the Option or Stock Appreciation Right Award is greater than the current Fair Market Value
of a Share, or (iv) otherwise subject to any action that would be treated under accounting rules as a “repricing” of such
Option or Stock Appreciation Right Award, unless such action is first approved by the Company’s stockholders. 

 

16.       Other
Provisions.

 

(a)       Unfunded
Plan. The Plan shall be unfunded and the Company shall not be required to segregate any assets that may at any time be represented
by Awards under the Plan. Neither the Company, its Affiliates, the Committee, nor the Board shall be deemed to be a trustee of any amounts
to be paid under the Plan nor shall anything contained in the Plan or any action taken pursuant to its provisions create or be construed
to create a fiduciary relationship between the Company and/or its Affiliates, and a Participant. To the extent any person has or acquires
a right to receive a payment in connection with an Award under the Plan, this right shall be no greater than the right of an unsecured
general creditor of the Company.

 

(b)       Limits
of Liability. Except as may be required by law, neither the Company nor any member of the Board or of the Committee, nor any other
person participating (including participation pursuant to a delegation of authority under Section 3(c) of the Plan) in any determination
of any question under the Plan, or in the interpretation, administration or application of the Plan, shall have any liability to any party
for any action taken, or not taken, in good faith under the Plan.

 

    12

     

    

 

(c)       Compliance
with Applicable Legal Requirements and Company Policies. No Shares distributable pursuant to the Plan shall be issued and delivered
unless and until the issuance of the Shares complies with all applicable legal requirements, including compliance with the provisions
of applicable state and federal securities laws, and the requirements of any securities exchanges on which the Company’s Shares
may, at the time, be listed. During any period in which the offering and issuance of Shares under the Plan is not registered under federal
or state securities laws, Participants shall acknowledge that they are acquiring Shares under the Plan for investment purposes and not
for resale, and that Shares may not be transferred except pursuant to an effective registration statement under, or an exemption from
the registration requirements of, such securities laws.  Any stock certificate or book-entry evidencing Shares issued under the Plan
that are subject to securities law restrictions shall bear or be accompanied by an appropriate restrictive legend or stop transfer instruction.
Notwithstanding any other provision of this Plan, the acquisition, holding or disposition of Shares acquired pursuant to the Plan shall
in all events be subject to compliance with any applicable Company policies, including those relating to insider trading, pledging or
hedging transactions, minimum post-vesting holding periods and stock ownership guidelines, and to forfeiture or recovery of compensation
as provided in Section 16(i).

 

(d)       Other
Benefit and Compensation Programs. Payments and other benefits received by a Participant under an Award made pursuant to the Plan
shall not be deemed a part of a Participant’s regular, recurring compensation for purposes of the termination, indemnity or severance
pay laws of any country and shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit
plan, contract or similar arrangement provided by the Company or an Affiliate unless expressly so provided by such other plan, contract
or arrangement, or unless the Committee expressly determines that an Award or portion of an Award should be included to accurately reflect
competitive compensation practices or to recognize that an Award has been made in lieu of a portion of competitive cash compensation.

 

(e)       Governing
Law. To the extent that federal laws do not otherwise control, the Plan and all determinations made and actions taken pursuant to
the Plan shall be governed by the laws of the State of Delaware without regard to its conflicts-of-law principles and shall be construed
accordingly.

 

(f)        Severability.
If any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

(g)       Code
Section 409A. It is intended that (i) all Awards of Options, SARs and Restricted Stock under the Plan will not provide for the deferral
of compensation within the meaning of Code Section 409A and thereby be exempt from Code Section 409A, and (ii) all other Awards under
the Plan will either not provide for the deferral of compensation within the meaning of Code Section 409A, or will comply with the requirements
of Code Section 409A, and Awards shall be structured and the Plan administered and interpreted in accordance with this intent. The Plan
and any Award Agreement may be unilaterally amended by the Company in any manner deemed necessary or advisable by the Committee or Board
in order to maintain such exemption from or compliance with Code Section 409A, and any such amendment shall conclusively be presumed
to be necessary to comply with applicable law. Notwithstanding anything to the contrary in the Plan or any Award Agreement, with respect
to any Award that constitutes a deferral of compensation subject to Code Section 409A:

 

(1)       If any amount
is payable under such Award upon a termination of Service, a termination of Service will be deemed to have occurred only at such time
as the Participant has experienced a “separation from service” as such term is defined for purposes of Code Section 409A;

 

(2)       If any amount
shall be payable with respect to any such Award as a result of a Participant’s “separation from service” at such time
as the Participant is a “specified employee” within the meaning of Code Section 409A, then no payment shall be made, except
as permitted under Code Section 409A, prior to the first business day after the earlier of (i) the date that is six months after
the Participant’s separation from service or (ii) the Participant’s death. Unless the Committee has adopted a specified employee
identification policy as contemplated by Code Section 409A, specified employees will be identified in accordance with the default provisions
specified under Code Section 409A.

 

None of the Company, the Board, the Committee
nor any other person involved with the administration of this Plan shall (i) in any way be responsible for ensuring the exemption of any
Award from, or compliance by any Award with, the requirements of Code Section 409A, (ii) have any obligation to design or administer the
Plan or Awards granted thereunder in a manner that minimizes a Participant’s tax liabilities, including the avoidance of any additional
tax liabilities under Code Section 409A, and (iii) shall have any liability to any Participant for any such tax liabilities.

 

    13

     

    

 

(h)      Rule
16b-3. It is intended that the Plan and all Awards granted pursuant to it shall be administered by the Committee so as to permit the
Plan and Awards to comply with Exchange Act Rule 16b-3. If any provision of the Plan or of any Award would otherwise frustrate or conflict
with the intent expressed in this Section 16(h), that provision to the extent possible shall be interpreted and deemed amended in the
manner determined by the Committee so as to avoid the conflict. To the extent of any remaining irreconcilable conflict with this intent,
the provision shall be deemed void as applied to Participants subject to Section 16 of the Exchange Act to the extent permitted by law
and in the manner deemed advisable by the Committee.

 

(i)       Forfeiture
and Compensation Recovery.

 

(1)       The
Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award will
be subject to reduction, cancellation, forfeiture or recovery by the Company upon the occurrence of certain specified events, in addition
to any otherwise applicable vesting or performance conditions of an Award. Such events may include termination of Service for Cause; violation
of any material Company or Affiliate policy; breach of noncompetition, non-solicitation or confidentiality provisions that apply to the
Participant; a determination that the payment of the Award was based on an incorrect determination that financial or other criteria were
met or other conduct by the Participant that is detrimental to the business or reputation of the Company or its Affiliates.

 

(2)       Awards
and any compensation associated therewith may be made subject to forfeiture, recovery by the Company or other action pursuant to any compensation
recovery policy adopted by the Board or the Committee at any time, including in response to the requirements of Section 10D of the Exchange
Act and any implementing rules and regulations thereunder, or as otherwise required by law. Any Award Agreement may be unilaterally amended
by the Committee to comply with any such compensation recovery policy.

 

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