Document:

Exhibit 4.4

 

 

[FACE OF NOTE]

 

Unless this certificate is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New York) to the issuer or its agent for registration
of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as
requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.

 

Unless and until it is exchanged in whole or
in part for Notes in definitive registered form, this Note may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor Depositary.

 

	REGISTERED NO. ETN-10	
        PRINCIPAL AMOUNT: $[    ]

        CUSIP: [    ]

        ISIN: [    ]

	 
	
         

        CREDIT SUISSE AG

         

        Credit Suisse FI Enhanced Europe 50 Exchange
        Traded Notes (ETNs)

        Linked to the STOXX Europe 50®
        USD (Gross Return) Index

        due September 10, 2018*

	 

CREDIT SUISSE AG, a corporation organized under
the laws of, and duly licensed as a bank in, Switzerland (the “Company”, which term includes any successor corporation
under the Indenture hereinafter referred to), acting through its Nassau branch (the “Branch”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, at the office or agency of the Company in New York, New York,
the Final Indicative Value of this Note (as defined on the reverse hereof) on the Maturity Date (as defined on the reverse hereof),
in the coin or currency of the United States.

 

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. All capitalized terms used herein but not otherwise defined shall have the meaning assigned to them in the Indenture
(as defined on the reverse hereof).

 

This Note shall not be valid or become obligatory
for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee (as defined on the
reverse hereof) under the Indenture referred to on the reverse hereof.

 

This Note does not bear interest.

 

 

 

 

* Subject to extension as described on the reverse hereof.

    	1

    	 

    

IN WITNESS WHEREOF, the Company, acting through
the Branch, has caused this Note to be duly executed.

	 	CREDIT SUISSE AG,
	 	      acting through its Nassau branch
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 Authorized Signatory 
	 	 	 	 	 	 
	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title	Authorized Signatory

 

    	2

    	 

    

 

CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

Dated: September 10, 2013

 

		THE BANK OF NEW YORK MELLON,
	
    	
        as Trustee

         

         
	 
		 	By:	 
	 		 	Authorized Signatory 

    	3

    	 

    

 

[REVERSE OF NOTE]

 

CREDIT SUISSE AG

 

Credit Suisse FI Enhanced Europe 50 Exchange
Traded Notes (ETNs)

Linked to the STOXX Europe 50®
USD (Gross Return) Index

due September 10, 2018

 

This Note is one of a duly authorized
issue of debentures, notes, bonds or other evidences of indebtedness of the Company (the “Securities”), all
issued or to be issued under and pursuant to a senior indenture, dated as of March 29, 2007 (the “Indenture”),
between the Company and The Bank of New York Mellon (the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company, and the beneficial owner (the “Holder”) of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject
to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture.

This Note (the “Note”)
is one of a series designated as the Credit Suisse FI Enhanced Europe 50 Exchange Traded Notes (the “ETNs”)
linked to the STOXX Europe 50® USD (Gross Return) Index due September 10, 2018.

This Note is issuable only in registered
form without coupons in minimum denominations of $1.00 and any integral multiples of $0.01 in excess thereof at the office or agency
of the Company in the Borough of Manhattan, The City of New York, in the manner and subject to the limitations provided in the
Indenture.

Maturity Date

The scheduled “Maturity Date”
of this Note is initially September 10, 2018, but may be extended at the option of the Company for up to two additional five-year
periods. The Company may only extend the scheduled Maturity Date for five years at a time. If the Company exercises its option
to extend the scheduled Maturity Date, the Company will notify the Holder of this Note and the Trustee at least 45 calendar days
but not more than 60 calendar days prior to the then scheduled Maturity Date. The Company will provide such notice to the Holder
of this Note and the Trustee in respect of each five-year extension of the scheduled Maturity Date that the Company chooses to
effect.

If the scheduled Maturity Date is not
a Business Day, the Maturity Date will be postponed to the first Business Day following the scheduled Maturity Date. If the scheduled
Final Valuation Date is not a Trading Day, the Final Valuation Date will be postponed to the next following Trading Day, in which
case the Maturity Date will be postponed to the third Business Day following the Final Valuation Date as so postponed. If a Market
Disruption Event occurs or is continuing on any Trading Day during the Final Valuation Period, as determined by the Calculation
Agent (as defined below), the Maturity Date will be postponed until the date three Business Days following the Final Valuation
Date, as postponed. No interest or additional payment will accrue or be payable as a result of any postponement of the Maturity
Date.

Payment at Maturity

The Holder of this Note shall receive
a cash payment on the Maturity Date for each $100.00 principal amount of this Note not previously accelerated or redeemed equal
to the Final Indicative Value (as defined below).

The “Final Indicative Value”
per $100.00 principal amount of this Note will be equal to the arithmetic average of the Closing Indicative Value on each of the
immediately preceding five Trading Days to and including the Final Valuation Date (the “Final Valuation Period”),
as calculated by the Calculation Agent. 

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The “Closing Indicative Value”
on the Inception Date is $100 (the “Initial Indicative Value”). The Closing Indicative Value on any ETN Business
Day after the Inception Date will be equal to (1) the Closing Indicative Value on the immediately preceding ETN Business Day plus
(2) the Index Amount on the current ETN Business Day minus (3) the Investor Fee on such ETN Business Day minus (4)
the Exposure Fee on such ETN Business Day minus (5) the Rebalance Fee on such ETN Business Day, if applicable; provided
that if the Intraday Indicative Value of the ETNs is equal to or less than zero at any time or the Closing Indicative Value is
equal to zero on any Trading Day, the Closing Indicative Value on that day, and all future days, will be zero. The Closing Indicative
Value will never be less than zero.

If the ETNs undergo a split or reverse
split, the Closing Indicative Value, Rebalanced Indicative Value and Intraday Indicative Value will be adjusted accordingly by
the Calculation Agent, and subsequent calculations under this Note shall be made by reference to the principal amount corresponding
to the adjusted Closing Indicative Value, Rebalanced Indicative Value and Intraday Indicative Value. Upon such adjustment, notice
thereof shall be given to the Trustee.

“Inception Date” means
September 5, 2013.

The “Intraday Indicative Value”
per $100.00 principal amount of this Note will be calculated and published every 15 seconds on each ETN Business Day during normal
trading hours under the ticker symbol “FIEU.IV” so long as no Market Disruption Event has occurred or is continuing
and will be disseminated over the consolidated tape, or other major market vendor. If the Intraday Indicative Value is equal to
or less than zero at any time or the Closing Indicative Value is equal to zero on any Trading Day, the Closing Indicative Value
on that day, and all future days, will be zero.

“Index”
means the STOXX Europe 50® USD (Gross Return) Index (Bloomberg ticker symbol “SX5PGV<Index>” (or
any successor thereto)).

The “Index Amount”
on the Inception Date is 0. On any ETN Business Day after the Inception Date, the Index Amount will be equal to the product of
(1) the Index Units as of the immediately preceding ETN Business Day times (2) the difference between (a) the Closing Level
of the Index on the current ETN Business Day minus (b) the Closing Level of the Index on the immediately preceding ETN Business
Day.

The “Index Units,”
on any ETN Business Day from and including the Inception Date to but excluding the first Rebalance Date, will be equal to the product
of (1) the Leverage Factor of 2.0 times (2) the Initial Indicative Value divided by (3) the Initial Index Level.
The Index Units will be adjusted upon the occurrence of a Rebalance Event. From and including any Rebalance Date, the Index
Units will equal (1) the Leverage Factor times (2) the Closing Indicative Value on the most recent Rebalance Trigger Date
for which the corresponding Rebalance Date falls on or before the current ETN Business Day divided by (3) the Closing Level
of the Index on such Rebalance Trigger Date.

The “Initial Index Level”
is [        ].

The “Leverage Factor”
is set to 2.0.

The “Investor Fee,”
on any ETN Business Day following the Inception Date, will be equal to the product of (1) the Closing Indicative Value as of the
previous ETN Business Day times (2) 0.05% times (3) the Day Count Fraction.

The “Exposure Fee,”
on any ETN Business Day following the Inception Date, will be equal to the product of (1) the Index Units as of the previous ETN
Business Day times (2) the Financing Rate as of the most recent Quarterly Reference Date prior to the current ETN Business
Day times (3) the Closing Level of the Index as of the most recent Quarterly Reference Date prior to the current ETN Business
Day times (4) the Day Count Fraction.

The “Financing Rate,”
on any LIBOR Business Day, will be equal to the Reference Rate applicable on the immediately preceding Quarterly Reference Date,
plus a spread of 0.76% (76 basis points).

    	R-2

    	 

    

The “Day Count Fraction,”
on any ETN Business Day, will be equal to (1) the number of calendar days from and including the previous ETN Business Day to but
excluding the current ETN Business Day divided by (2) 360.

The “Quarterly Reference Date”
will be each quarterly date on the 5th of each third month, or if such date is not a LIBOR Business Day, the next successive
LIBOR Business Day, commencing on and including the Inception Date.

The “Reference Rate”
is 3 month US dollar LIBOR, which is the London interbank offered rate (British Banker’s Association) for three month deposits
in U.S. dollars, which is displayed on Reuters page LIBOR01 (or any successor service or page for the purpose of displaying the
London interbank offered rates of major banks, as determined by the Calculation Agent), as of 11:00 a.m., London time, on the relevant
Quarterly Reference Date.

The “Closing Level”
of the Index on any ETN Business Day will be the closing level published on Bloomberg under the ticker symbol “SX5PGV <Index>”
or any successor page on Bloomberg or any successor service, as applicable, as determined by the Calculation Agent; provided
that if such day is not an Index Business Day, the Closing Level of the Index will be deemed to be the Closing Level as of the
immediately preceding Index Business Day, as determined by the Calculation Agent; provided further that in the event a Market
Disruption Event exists on a Valuation Date, the Calculation Agent will determine the Closing Level of the Index,
as set forth under the definition of “Market Disruption Events” herein.

A “Business Day” is
a Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in New York City or London, England
generally are authorized or obligated by law, regulation or executive order to close.

A “Trading Day” is
a day which is (i) an Index Business Day, (ii) an ETN Business Day and (iii) an Index Component Business Day for each
of the Index Components.

An “Index Business Day”
is any day on which the level of the Index is calculated and published.

With respect to any Index Component,
an “Index Component Business Day” is a day on which trading is generally conducted on the primary securities
exchange on which such Index Component is traded and any exchange on which equity securities or options contracts relating to such
Index Component are traded.

An “ETN Business Day”
is a day on which trading is generally conducted on the New York Stock Exchange, NYSE Arca and Nasdaq.

A “LIBOR Business Day”
is any trading day other than a day on which banking institutions in the city of London, England are authorized or obligated by
law or executive order to be closed

The “Calculation Agent”
means Credit Suisse International (“CSI”) or any successor calculation agent appointed by the Company.

Rebalance Event

If the Closing Indicative Value on
any Trading Day is equal to or less than 60% of the Initial Indicative Value or the most recent Rebalanced Indicative Value,
as the case may be (each, a “Rebalance Event” and such day, a “Rebalance Trigger
Date”), the following Trading Day will be a “Rebalance Date,” subject to postponement in the
event of a Market Disruption Event, and the Calculation Agent will make adjustments to the Index Amount and Exposure Fee and
other relevant terms of the ETNs, as set forth herein.

The “Rebalance Fee,”
on any ETN Business Day that is not a Rebalance Date, will equal zero. On any ETN Business Day that is a Rebalance Date, the Rebalance
Fee per ETN will be equal to the product of (1) 0.05% times (2) the Closing Level of the Index on such Rebalance Date times
(3) the difference between (a) the Index

    	R-3

    	 

    

Units on the Trading Day immediately preceding the relevant
Rebalance Date minus (b) the Index Units on such Rebalance Date.

If no Rebalance Event has occurred, the
“Rebalanced Indicative Value” will be the Closing Indicative Value on the Inception Date. Otherwise, the Rebalanced
Indicative Value will be the Closing Indicative Value on the Rebalance Trigger Date immediately preceding the relevant Rebalance
Date.

Redemption at the Option of the Holder

A beneficial owner of an interest in
this Note may elect to offer all or a portion of this Note for redemption by the Company on any Business Day beginning on September
5, 2013 through August 28, 2018 (or, if the Maturity Date is extended as described above, five scheduled Trading Days prior to
the scheduled Final Valuation Date, as extended), of at least 10,000 ETNs (the “Minimum Redemption Amount”)
by following the procedures set forth below:

		·	Cause its broker to deliver a notice of redemption, in substantially
the form of Annex A (the “Redemption Notice”), to the Company via email or other electronic delivery as requested
by the Company. If the Redemption Notice is delivered prior to 10:00 a.m., New York City time, on any Business Day, the immediately
following Trading Day shall be the applicable “Early Redemption Valuation Date.” Otherwise, the second following
Trading Day shall be the applicable Early Redemption Valuation Date. If the Company receives the Redemption Notice no later than
10:00 a.m., New York City time, on any Business Day, the Company will respond by sending the broker an acknowledgment of the Redemption
Notice accepting the redemption request by 7:30 p.m., New York City time, on the Business Day prior to the applicable Early Redemption
Valuation Date. The Company or its affiliate must acknowledge to the broker acceptance of the Redemption Notice in order for the
redemption request to be effective;

		·	Cause its broker to cause its DTC custodian to book a delivery
versus payment trade with respect to the principal amount of this Note offered for redemption on the applicable Early Redemption
Valuation Date at a price equal to the applicable Early Redemption Amount, facing the Company; and

 

		·	Cause its broker to cause its DTC custodian to deliver the trade
as booked for settlement via DTC at or prior to 10:00 a.m. New York City time, on the applicable Early Redemption Date (the third
Business Day following the Early Redemption Valuation Date).

Upon compliance with the foregoing procedures,
the Company will be obliged to redeem the portion this Note so requested to be redeemed as set forth under “Payment Upon
Early Redemption” below.

The Company will act as paying agent
in connection with redemptions at the election of the Holder of this Note and upon such redemption the Company shall so advise
the Trustee and deliver the principal amount of this Note that is so redeemed to the Trustee for cancellation.

CSI as the Calculation Agent shall have
the right to reduce, in part or in whole, the Minimum Redemption Amount, and upon such reduction, notice thereof shall be given
to the Trustee.

If the ETNs undergo a split or reverse
split, the minimum number of the ETNs needed to exercise the Holder’s right to redeem will remain the same.

Payment Upon Early Redemption

If this Note is redeemed, on the applicable
Early Redemption Date, the Holder will receive a cash payment in an amount per $100.00 principal amount of this Note submitted
for redemption (the “Early Redemption Amount”) equal to the greater of (A) zero and (B)(1) the Closing Indicative
Value on the applicable Early Redemption Valuation Date minus (2) the Early Redemption Charge, if applicable, as determined
by the Calculation Agent.

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The “Early Redemption Date”
is the third Business Day following an Early Redemption Valuation Date. If the applicable Early Redemption Valuation Date is postponed,
as determined by the Calculation Agent, the Early Redemption Date will be postponed until the date three Business Days following
such Early Redemption Valuation Date, as postponed. No interest or additional payment will accrue or be payable hereon as a result
of any postponement of the Early Redemption Date.

The “Early Redemption Charge”
is equal to the product of (i) 0.05% times (ii) the Closing Level of the Index on the Early Redemption Valuation Date times
(iii) the Index Units as of the immediately preceding Trading Day.

Acceleration at the Option of the Company
or Upon an Acceleration Event 

The Company shall have the right to accelerate
this Note in whole or in part on any Business Day occurring on or after the Inception Date (an “Optional Acceleration”).
In addition, if an Acceleration Event occurs at any time with respect to the ETNs, all of the outstanding Notes will be subject
to automatic acceleration (an “Automatic Acceleration”).

From the Inception Date to but excluding
the date of the first Rebalance Event, an “Acceleration Event” will occur if the Intraday Indicative Value on
any Trading Day is less than or equal to 40% of the Initial Indicative Value. From and after any Rebalance Event, an Acceleration
Event will occur if the Intraday Indicative Value of the Index on any Trading Day is less than or equal to 40% of the Rebalanced
Indicative Value.

Upon an acceleration of all of the outstanding
ETNs pursuant to an Optional Acceleration, the Holder of this Note will be entitled to receive a cash payment in an amount (the
“Accelerated Redemption Amount”) equal to the arithmetic average of the Closing Indicative Values of such ETNs
during the Accelerated Valuation Period. If all of the outstanding ETNs are accelerated pursuant to an Automatic Acceleration,
the Accelerated Redemption Amount will be determined by the Calculation Agent, in its sole discretion, acting in good faith and
in a commercially reasonable manner, using the latest publicly available quotations for the intraday prices of the relevant Index
Components that are available as soon as practicable following the occurrence of an Acceleration Event. The Calculation Agent will
approximate the intraday Index Amount on the basis of such quotations and calculate a corresponding Intraday Indicative Value minus
the Acceleration Fee, which shall be deemed to be the Accelerated Redemption Amount if the ETNs are accelerated pursuant to an
Automatic Acceleration.

Upon an acceleration of less than all
of the outstanding ETNs pursuant to an Optional Acceleration, the Accelerated Redemption Amount will be equal to the Closing Indicative
Value on the applicable Valuation Date. If less than all the ETNs are to be redeemed pursuant to an Optional Acceleration, the
Trustee shall select, pro rata, by lot or in such manner as it deems appropriate and fair, the ETNs to be redeemed pursuant to
such acceleration. The ETNs accelerated in part may be accelerated in multiples of 10,000 ETNs, or an integral multiple of 10,000
ETNs in excess thereof. The Company will provide at least five Business Days’ notice of any ETNs to be redeemed pursuant
to an Optional Acceleration and, in the case of any ETNs selected for partial redemption, the stated principal amount thereof to
be redeemed. All provisions relating to the acceleration of this Note to be redeemed only in part, relate to the portion of the
stated principal amount of the Note which has been or is to be redeemed pursuant to these acceleration provisions.

In the case of an Optional Acceleration
of all outstanding ETNs, the “Accelerated Valuation Period” shall be a period of five consecutive Trading Days
specified in the Company’s notice of Optional Acceleration, the first Trading Day of which shall be at least two Business
Days after the date on which the Company gives notice of such Optional Acceleration.

In the case of an Automatic Acceleration
of all outstanding ETNs, the “Accelerated Valuation Date” will be the date of the Acceleration Event. In the
case of an Optional Acceleration of less than all outstanding ETNs, the Accelerated Valuation Date will be the first Trading Day
following the date of Company’s notice of acceleration.

The Accelerated Redemption Amount will
be payable on the third Business Day following the Accelerated Valuation Date or the third Business Day following the last Trading
Day in the Accelerated Valuation Period (such

    	R-5

    	 

    

date the “Acceleration Date”), as the
case may be.  The Company will give notice of any acceleration of this Note through customary channels used to deliver notices
to holders of exchange traded notes.

If an Acceleration Event occurs, an “Acceleration
Fee” equal to the product of (1) 0.05% times (2) the level of the Index used in determining the Index Amount on
the Accelerated Valuation Date times (3) the Index Units as of the immediately preceding ETN Business Day will apply.

Any ETNs previously redeemed by the Company
at the Holder’s or Company’s option or accelerated following an Acceleration Event will be cancelled on the Early Redemption
Date or the Acceleration Date, as applicable. Consequently, as of such Early Redemption Date or the Acceleration Date, as applicable,
the redeemed ETNs will no longer be Outstanding.

If the last scheduled Valuation Date
in the Accelerated Valuation Period is postponed, as determined by the Calculation Agent, the Acceleration Date will be postponed
until the date three Business Days following the last scheduled Valuation Date in the Accelerated Valuation Period, as postponed.
No interest or additional payment will accrue or be payable hereon as a result of any postponement of the Acceleration Date.

The Company will give the Trustee a copy
of the irrevocable call notice at the same time that it delivers such notice to the Holder of this Note.

Market Disruption Events

The Calculation Agent will be solely
responsible for the determination and calculation of any adjustments to the Index and of any related determinations and calculations
with respect to any event described below and its determinations and calculations will be conclusive absent manifest error.

In respect of the Index, a “Market
Disruption Event” is:

		(a)	the occurrence or existence of a suspension, absence or material
limitation of trading of Index Components then constituting 20% or more of the level of the Index on the relevant exchange for
those securities for more than two hours of trading, or during the one-half hour period preceding the close of the principal trading
session on such relevant exchange; 

		(b)	a breakdown or failure in the price and trade reporting systems of
the relevant exchange for the Index as a result of which the reported trading prices for Index Components then constituting 20%
or more of the level of the Index during the one-half hour preceding the close of the principal trading session on such relevant
exchange are materially inaccurate; 

		(c)	the occurrence or existence of a suspension, absence or material
limitation of trading on the primary related exchange or market for trading in equity securities related to the Index, if available,
during the one-half hour period preceding the close of the principal trading session for such related exchange or market; or

		(d)	a decision to permanently discontinue trading in those related equity
securities. 

in each case, as determined by the Calculation
Agent in its sole discretion; and in each case a determination by the Calculation Agent in its sole discretion that any event described
above materially interfered with Company’s ability or the ability of any of its affiliates to effect transactions in the
Index Components or any instrument related to the Index Components or to adjust or unwind all or a material portion of any hedge
position in the Index with respect to the ETNs.

For the purpose of determining whether
a Market Disruption Event with respect to the Index exists at any time, if trading in a security included in the Index is materially
suspended or materially limited at that time, then the relevant percentage contribution of that security to the level of the Index
will be based on a comparison of (1) the portion of the level of the Index attributable to that security relative to (2) the overall
level of the Index, in each case immediately before that suspension or limitation.

    	R-6

    	 

    

For the purpose of determining whether
a Market Disruption Event in respect of the Index has occurred:

		(a)	a limitation on the hours or number of days of trading will not constitute
a Market Disruption Event if it results from an announced change in the regular business hours of the relevant exchange or the
primary exchange or market for trading in equity securities related to the Index; 

		(b)	limitations pursuant to NYSE Rule 80B (or any applicable rule or
regulation enacted or promulgated by the NYSE, any other U.S. self-regulatory organization, the SEC or any other relevant authority
of scope similar to NYSE Rule 80B) on trading during significant market fluctuations will constitute a suspension, absence or material
limitation of trading; and 

		(c)	a suspension of trading in equity securities related to the Index
by the primary exchange or market for trading in such contracts, if available, by reason of: 

		·	a price change exceeding limits set by such exchange or market; 

		·	an imbalance of orders relating to such contracts; or 

		·	a disparity in bid and ask quotes relating to such contracts;

will, in each such case, constitute
a suspension, absence or material limitation of trading in equity securities related to the Index; and

		(d)	a “suspension, absence or material limitation of trading”
on the primary related exchange or market on which equity securities related to the Index are traded will not include any time
when such exchange or market is itself closed for trading under ordinary circumstances; 

in each case, as determined by the Calculation
Agent in its sole discretion.

If the Calculation Agent determines that
a Market Disruption Event exists in respect of the Index on a Valuation Date or Rebalance Date, then that Valuation Date or Rebalance
Date will be postponed to the first succeeding Trading Day on which the Calculation Agent determines that no Market Disruption
Event exists in respect of the Index, unless the Calculation Agent determines that a Market Disruption Event exists in respect
of the Index on each of the five Trading Days immediately following the scheduled Valuation Date or Rebalance Date. In that case,
(a) the fifth succeeding Trading Day following the scheduled Valuation Date or Rebalance Date will be deemed to be such Valuation
Date for the Index, notwithstanding the Market Disruption Event in respect of the Index, and (b) the Calculation Agent will determine
the closing level for the Index on that deemed Valuation Date or Rebalance Date in accordance with the formula for and method of
calculating the Index last in effect prior to the commencement of the Market Disruption Event in respect of the Index using exchange-traded
prices on the relevant exchanges (as determined by the Calculation Agent in its sole discretion) or, if trading in any component
comprising the Index has been materially suspended or materially limited, the Calculation Agent’s good faith estimate of
the prices that would have prevailed on the relevant exchanges (as determined by the Calculation Agent in its sole discretion)
but for the suspension or limitation, as of the valuation time on that deemed Valuation Date or Rebalance Date, of each component
comprising the Index.

If a Market Disruption Event exists in
respect of the Index during the Accelerated Valuation Period or Final Valuation Period, (such disrupted date, the “Disrupted
Valuation Date”), all of the Valuation Dates that are scheduled to occur on consecutive Trading Days following such Disrupted
Valuation Date, if any, will be postponed by the corresponding number of days by which such Disrupted Valuation Date is postponed
as a result of such Market Disruption Event.

If the Final Valuation Date, the Valuation
Date corresponding to an Early Redemption Date or the last scheduled Valuation Date in the Accelerated Valuation Period is postponed,
the Maturity Date, the corresponding Early Redemption Date or the Acceleration Date, as the case may be, will be postponed until
the date three Business Days following such Final Valuation Date, Valuation Date corresponding to an Early Redemption Date or last
scheduled Valuation Date in the Accelerated Valuation Period, as postponed.

    	R-7

    	 

    

“Index Components”
means the equity securities comprising the Index from time to time.

Discontinuation
or Modification of the Index

If STOXX Limited (the “Index
Sponsor”) discontinues publication of the Index and the Index Sponsor or anyone else publishes a substitute index that
the Calculation Agent determines is comparable to the Index, then the Calculation Agent will permanently replace the original Index
with that substitute index (the “Successor Index”) for all purposes under this Note, and all provisions described
herein as applying to the Index will thereafter apply to the Successor Index instead. If the Calculation Agent replaces the original
Index with a Successor Index, then the Calculation Agent will determine the Early Redemption Amount, Accelerated Redemption Amount
or Maturity Redemption Amount (each, a “Redemption Amount”), as applicable, by reference to the Successor Index.

If the Calculation Agent determines that
the publication of the Index is discontinued and there is no Successor Index, the Calculation Agent will determine the level of
the Index, and thus the applicable Redemption Amount, by a computation methodology that the Calculation Agent determines will as
closely as reasonably possible replicate the Index.

If the Calculation Agent determines that
the Index, the equity securities included in the Index or the method of calculating the Index is changed at any time in any respect,
including whether the change is made by the Index Sponsor under its existing policies or following a modification of those policies,
is due to the publication of a Successor Index, is due to events affecting the equity securities included in the Index or is due
to any other reason and is not otherwise reflected in the level of the Index by the Index Sponsor pursuant to the methodology,
then the Calculation Agent will be permitted (but not required) to make such adjustments in the Index or the method of its calculation
as it believes are appropriate to ensure that the Closing Level of the Index used to determine the applicable Redemption Amount
is equitable.

Calculation Agent

CSI will serve as the Calculation Agent.
The Calculation Agent will, in its reasonable discretion, make all calculations and determinations regarding the value of this
Note, including at maturity, upon early redemption or acceleration, Market Disruption Events, Business Days and Trading Days, the
ETN Fees, the Closing Level of the Index on any ETN Business Day, the Maturity Date, any Early Redemption Dates, Rebalance Dates,
the Acceleration Date, the amount payable in respect of this Note at maturity, upon early redemption or acceleration and any other
calculations or determinations to be made by the Calculation Agent as specified herein. CSI will have the sole ability to make
determinations with respect to reduction of the Minimum Redemption Amount, the occurrence of an Acceleration Event, calculation
of default amounts and whether a Market Disruption Event has occurred, and will have the sole responsibility to calculate and disseminate
the Closing Indicative Value and the Intraday Indicative Value and make determinations regarding a Trading Day. Absent manifest
error, all determinations of the Calculation Agent will be final and binding on the Holder of this Note and the Company, without
any liability on the part of the Calculation Agent. The Holder of this Note will not be entitled to any compensation from the Company
for any loss suffered as a result of any of the above determinations by the Calculation Agent.

If the Calculation Agent ceases to perform
its role, the Company will either, at the Company’s sole discretion, perform such role, appoint another party to do so or
accelerate this Note.

The “ETN Fees” means
collectively the Investor Fee and the Exposure Fee, and any applicable Rebalance Fee, Early Redemption Charge and/or Acceleration
Fee.

Default Amount on Acceleration

In case an Event of Default with respect
to this Note shall have occurred and be continuing, the amount declared due and payable upon any acceleration of this Note will
be determined by the Calculation Agent and will equal, for each $100.00 principal amount of this Note, the Closing Indicative Value
determined by the Calculation Agent occurring on the Trading Day following the date on which this Note was declared due and payable.

    	R-8

    	 

    

Manner of Payment

This Note is payable in the manner, with
the effect and subject to the conditions provided in the Indenture.

If a payment date is not a Business Day
as defined in the Indenture at a place of payment, payment may be made at that place on the next succeeding day that is a Business
Day, and no interest shall accrue for the intervening period.

Amendments

The Indenture contains provisions which
provide that the Company and the Trustee may amend or supplement the Indenture or the Securities without notice to or the consent
of any Holder in order to (i) cure any ambiguity, defect or inconsistency in the Indenture, provided that such amendments or supplements
shall not materially and adversely affect the interests of the Holders; (ii) comply with the requirements of the Indenture if the
Company consolidates with, merges with or into, or sells, conveys, transfers, leases or otherwise disposes of all or substantially
all of its property and assets, to any person; (iii) comply with any requirements of the Commission in connection with the qualification
of the Indenture under the Trust Indenture Act; (iv) evidence and provide for the acceptance of appointment hereunder with respect
to the Securities by a successor trustee; (v) establish the form or forms or terms of Securities of any series or of the coupons
appertaining to such Securities as permitted by the Indenture; (vi) provide for uncertificated or unregistered Securities and to
make all appropriate changes for such purpose; (vii) provide for a guarantee from a third party on outstanding Securities that
are issued under the Indenture; or (viii) make any change that does not materially and adversely affect the rights of any Holder.

The Indenture provides that, without
prior notice to any Holders, the Company and the Trustee may amend the Indenture and the Securities of any series with the written
consent of the Holders of a majority in principal amount of the outstanding Securities of all series affected by such amendment
(all such series voting as one class), and the Holders of a majority in principal amount of the outstanding Securities of all series
affected thereby (all such series voting as one class) by written notice to the Trustee may waive future compliance by the Company
with any provision of the Indenture or the Securities of such series; provided that, without the consent of each Holder of the
Securities affected thereby, an amendment or waiver, including a waiver of past defaults, may not: (i) extend the stated maturity
of the Principal of, or any sinking fund obligation or any installment of interest on, such Holder’s Security, or reduce
the principal amount thereof or the rate of interest thereon (including any amount in respect of original issue discount), or adversely
affect the rights of such Holder under any mandatory redemption or repurchase provision or any right of redemption or repurchase
at the option of such Holder, or reduce the amount of the Principal of an Original Issue Discount Security that would be due and
payable upon an acceleration of the maturity thereof or the amount thereof provable in bankruptcy, insolvency or similar proceeding,
or change any place of payment where, or the currency in which, the principal amount or the interest thereon is payable, modify
any right to convert or exchange such Holder’s Security for another security to the detriment of the Holder or impair the
right to institute suit for the enforcement of any such payment on or after the due date therefor; (ii) reduce the percentage in
principal amount of outstanding Securities the consent of whose Holders is required for any such supplemental indenture, for any
waiver of compliance with certain provisions of the Indenture or certain Defaults and their consequences provided for in the Indenture;
(iii) waive a Default in the payment of the principal amount of or interest on any Security of such Holder; or (iv) modify any
of the provisions of the Indenture governing supplemental indentures except to increase the required percentage or to provide that
certain other provisions of the Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security
affected thereby.

General

The Company, acting through the Branch,
the Trustee and any agent of the Company or the Trustee may deem and treat the registered Holder hereof as the absolute owner of
this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon) for
the purpose of receiving payment of, or on account of, any amount payable at maturity or upon repurchase, and, subject to the provisions
hereof, for all other purposes, and neither the Company, acting through the Branch, nor the Trustee nor any agent of the Company
or the Trustee shall be affected by any notice to the contrary.

    	R-9

    	 

    

No recourse under or upon any obligation,
covenant or agreement contained in the Indenture or any indenture supplemental thereto or in this Note, or because of any indebtedness
evidenced thereby or hereby, shall be had against any incorporator as such, or against any past, present or future stockholder,
officer, director or employee, as such, of the Company or of any successor, either directly or through the Company or any successor,
under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance hereof and as part of the consideration
for the issue hereof.

The Indenture provides that, subject
to certain conditions, the Holders of at least a majority in principal amount (or, if any Securities are Original Issue Discount
Securities, such portion of the principal amount as is then accelerable) of the outstanding Securities of all series affected (voting
as a single class), by notice to the Trustee, may waive an existing Default or Event of Default with respect to the Securities
of such series and its consequences, except a Default in the payment of Principal of or interest on any Security or in respect
of a covenant or provision of the Indenture which cannot be modified or amended without the consent of the Holder of each outstanding
Security affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default with respect to the Securities
of such series arising therefrom shall be deemed to have been cured, for every purpose of the Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any right consequent thereto.

The Indenture provides that a series
of Securities may include one or more tranches (each a “tranche”) of Securities, including Securities issued in a Periodic
Offering. The Securities of different tranches may have one or more different terms, including authentication dates and public
offering prices, but all the Securities within each such tranche shall have identical terms, including authentication date and
public offering price. Notwithstanding any other provision of the Indenture, subject to certain exceptions, with respect to sections
of the Indenture concerning the execution, authentication and terms of the Securities, redemption of the Securities, Events of
Default of the Securities, defeasance of the Securities and amendment of the Indenture, if any series of Securities includes more
than one tranche, all provisions of such sections applicable to any series of Securities shall be deemed equally applicable to
each tranche of any series of Securities in the same manner as though originally designated a series unless otherwise provided
with respect to such series or tranche pursuant to a board resolution or a supplemental indenture establishing such series or tranche.

This Note is unsecured and ranks pari
passu with all other unsecured and unsubordinated indebtedness of the Company.

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, acting through the Branch,
which is absolute and unconditional, to pay any amount payable at maturity or upon repurchase on this Note in the manner, at the
place, at the time and in the coin or currency herein prescribed.

The laws of the State of New York (without
regard to conflicts of laws principles thereof) shall govern this Note.

    	R-10

    	 

    

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]    

 

 

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

 

 __________________________________________________________ Attorney to transfer such Note on the books of the Company, with full power of substitution in the premises.

 

	 	Signature:

	 	 
	Dated:   

	 
	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within Note in every particular without alteration or enlargement or any change whatsoever.

 

    	R-11

    	 

    

 

 

ANNEX A

 

FORM OF OFFER FOR REDEMPTION

PART A: TO BE COMPLETED BY THE BENEFICIAL OWNER

 

	Dated:______________
	                                [insert date]

Credit Suisse AG (“Credit
Suisse”)

E-mail: list.etndesk@credit-suisse.com 

 

Re: Exchange Traded Notes due September 10,
2018

Linked
to the STOXX Europe 50® USD (Gross Return) Index (the “ETNs”)

 

Ladies
and Gentlemen:

 

The
undersigned beneficial owner hereby irrevocably offers to Credit Suisse the right to redeem the ETNs, as described in the Pricing
Supplement dated September 5, 2013, in the amounts and on the date set forth below.

	
         

        Name of beneficial holder:       
	 _______________________________
	 	[insert name of beneficial owner]

 

Number
of ETNs offered for redemption (You must offer at least the applicable minimum redemption amount for redemption at one time for
your offer to be valid. The minimum redemption amount will be equal to 10,000 ETNs. The trading day immediately succeeding the
date you offered your ETNs for redemption will be the valuation date applicable to such redemption.):

  

	 	 

[insert
number of ETNs offered for redemption by Credit Suisse]

 

	Applicable valuation date:	 	,	20    	 
	
         

        Applicable redemption date:
	 	,	20    	 
	 	[insert a date that is three business days following the applicable valuation date]

 

	Contact Name:	 
	 	[insert the name of a person or entity to be contacted with respect to this Offer for Redemption]
	 	 
	Telephone #:	 
	 	[insert the telephone number at which the contact person or entity can be reached]

 

My
ETNs are held in the following DTC Participant’s Account (the following information is available from the broker through
which you hold your ETNs):

 

Name:

 

DTC
Account Number (and any relevant sub-account):

 

Contact
Name:

 

Telephone
Number:

 

Acknowledgement:
In addition to any other requirements specified in the Pricing Supplement being satisfied, I

    	A-1

    	 

    

acknowledge
that the ETNs specified above will not be redeemed unless (i) this Offer for Redemption, as completed and signed by the DTC
Participant through which my ETNs are held (the “DTC Participant”), is delivered to Credit Suisse, (ii) the DTC
Participant has booked a “delivery versus payment” (“DVP”) trade on the applicable valuation date facing
Credit Suisse, and (iii) the DTC Participant instructs DTC to deliver the DVP trade to Credit Suisse as booked for settlement
via DTC at or prior to 10:00 a.m., New York City time, on the applicable redemption date.  I also acknowledge that
if this Offer for Redemption is received after 10:00 a.m., New York City time, on a business day, I will be deemed to have made
this Offer for Redemption on the following business day.

 

The
undersigned acknowledges that Credit Suisse will not be responsible for any failure by the DTC Participant through which such undersigned’s
ETNs are held to fulfill the requirements for redemption set forth above.

 

	 	 	 
	[Beneficial Holder]	 

 

PART
B OF THIS NOTICE IS TO BE COMPLETED BY THE DTC PARTICIPANT IN WHOSE ACCOUNT THE ETNs ARE HELD AND DELIVERED TO CREDIT SUISSE BY
10:00 A.M., NEW YORK CITY TIME, ON THE BUSINESS DAY IMMEDIATELY PRECEDING THE APPLICABLE VALUATION DATE

 

    	A-2

    	 

    

BROKER’S
CONFIRMATION OF REDEMPTION

 

[PART
B: TO BE COMPLETED BY BROKER]

	Dated: ________________
	[insert date]

 

Credit
Suisse AG (“Credit Suisse”)

	
         

        Re: Exchange Traded Notes due September 10, 2018

Linked
to the STOXX Europe 50® USD (Gross Return) Index (the “ETNs”)

 

Ladies
and Gentlemen:

 

The
undersigned holder of Exchange Traded Notes due September 10, 2018, linked to the STOXX Europe 50® USD (Gross Return)
Index, issued by Credit Suisse AG, acting through its Nassau Branch, CUSIP No. [ 
] (the “ETNs”) hereby irrevocably offers to Credit Suisse the right to redeem, on the Redemption Date of                                     ,
with respect to the number of the ETNs indicated below as described in the Pricing Supplement dated September 5, 2013 relating
to the ETNs (the “Pricing Supplement”). Terms not defined herein have the meanings given to such terms in the Pricing
Supplement.

 

The
undersigned certifies to you that it will (i) book a delivery versus payment trade on the valuation date with respect to the
number of ETNs specified below at a price per ETN equal to the redemption value, facing Credit Suisse AG, DTC #355 and (ii) deliver
the trade as booked for settlement via DTC at or prior to 10:00 a.m., New York City time, on the redemption date.

 

Very
truly yours,

 

[NAME
OF DTC PARTICIPANT HOLDER]

 

Contact
Name:

 

Title:

 

Telephone:

 

Fax:

 

E-mail:

 

Number
of ETNs offered for redemption (You must offer at least the applicable minimum redemption amount for redemption at one time for
your offer to be valid (10,000 ETNs)). The trading day immediately succeeding the date you offered your ETNs for redemption will
be the valuation date applicable to such redemption.):

 

DTC
# (and any relevant sub-account):

    	A-3exhibit10_1090513.htm

	
					
	 

Exhibit 10.1
CREE, INC.
MANAGEMENT INCENTIVE COMPENSATION PLAN
(Effective for Fiscal Years beginning on or after July 1, 2013)
		
	1.
	PURPOSE

		
	1.1.
	The purpose of the Management Incentive Compensation Plan (the “Plan”) is to motivate and reward excellent performance, to attract and retain outstanding management, to create a strong link between individual performance and the Company's operating and strategic plans, to achieve greater corporate performance by focusing on results, and to encourage teamwork at the highest levels within the organization.  The Plan rewards Participants with incentives based on their contributions and the attainment of specific corporate and individual goals.  

		
	1.2.
	For purposes of this Plan, "Company" collectively includes Cree, Inc. (“Cree”) and its subsidiaries and affiliates as they exist from time to time.

		
	2.
	DEFINITIONS

		
	2.1.
	Annual Award Level - 60% unless set at a different percentage by the Compensation Committee of the Board of Directors (the “Compensation Committee”) for executive officers or the Chief Executive Officer (“CEO”) for all other Participants.  

		
	2.2.
	Annual Corporate Performance Goals -one or more financial targets for a Plan Year, as recommended by the CEO and approved by the Compensation Committee.

		
	2.3.
	Base Salary - the Participant's annual base salary in effect on the last day of the Performance Period, except as otherwise provided in this Plan.

		
	2.4.
	Change In Control - for purposes of this Plan, a “Change in Control” will be deemed to have occurred upon the happening of any of the following events: 

		
	(i)
	Any “Person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Act”), including a “group” (as that term is used in Sections 13(d)(3) and 14(d)(2) of the Act), but excluding the Cree Entities and any employee benefit plan sponsored or maintained by the Cree Entities (including any trustee of such plan acting as trustee), who together with its “affiliates” and “associates” (as those terms are defined in Rule 12b-2 under the Act) becomes the “Beneficial Owner” (within the meaning of Rule 13d-3 under the Act) of more than 50% of the then-outstanding shares of common stock of the Company or the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of its directors. For purposes of calculating the number of shares or voting power held by such Person and its affiliates and associates under this clause (i), there shall be excluded any securities acquired by such Person or its affiliates or associates directly from the Cree Entities.

		
	(ii)
	A sale or other disposition of all or substantially all of the Company's assets is consummated, other than such a sale or disposition that would not have constituted a Change of Control under clause (iv) below had it been structured as a merger or consolidation.

		
	(iii)
	The shareholders of the Company approve a definitive agreement or plan to liquidate 

the Company.

		
	(iv)
	A merger or consolidation of the Company with and into another entity is consummated, unless immediately following such transaction (1) more than 50% of the members of the governing body of the surviving entity were Incumbent Directors (as defined in clause (v) below) at the time of execution of the initial agreement providing for such transaction, (2) no “Person” (as defined in clause (i) above), together with its “affiliates” and “associates” (as defined in clause(i) above), is the “Beneficial Owner” (as defined in clause (i) above), directly or indirectly, of more than 50%  of the then-outstanding equity interests of the surviving entity or the combined voting power of the then-outstanding equity interests of the surviving entity entitled to vote generally in the election of members of its governing body, and (3) more than 50% of the then-outstanding equity interests of the surviving entity and the combined voting power of the then-outstanding equity interests of the surviving entity entitled to vote generally in the election of members of its governing body is “Beneficially Owned”, directly or indirectly, by all or substantially all of the individuals and entities who were the “Beneficial Owners” of the shares of common stock of the Company immediately prior to such transaction in substantially the same proportions as their ownership immediately prior to such transaction.

		
	(v)
	During any period of 24 consecutive months during the Participant's employment, the individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof; provided, however, that a director who was not a director at the beginning of such 24 month period shall be deemed to have satisfied such 24 month requirement, and be an Incumbent Director, if such director was elected by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually, because they were directors at the beginning of such 24 month period, or by prior operation of this clause (v), but excluding for this purpose any such individual whose initial assumption of office is in connection with an actual or threatened election contest subject to Rule 14a-11 of Regulation 14A promulgated under the Act or other actual or threatened solicitation of proxies or consents by or on behalf of a “Person” (as defined in clause(i) above) other than the Board.

		
	2.5.
	Cree Entities - for purposes of this Plan, “Cree Entities” means the Company and its successors and assigns as well as any corporation which is a member of a controlled group of corporations (as defined in Section 414(b) of the Internal Revenue Code  of 1986 as amended (the “Code”), as modified by Section 415(h) of the Code) which includes the Company; any trade or business (whether or not incorporated) which is under common control (as defined in Section 414(c) of the Code, as modified by Section 415(h) of the Code) with the Company; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code) which includes the Company; and any other entity required to be aggregated with the Company pursuant to regulations under Section 414(o) of the Code.

		
	2.6.
	Individual Goals - individual performance goals established for a Participant for each fiscal quarter.  Each Individual Goal will be assigned a percentage weight such that the sum of all Individual Goal weights for a Participant for such quarter totals 50%.

		
	2.7.
	Individual Goal Performance Results - a percentage reflecting a Participant's achievement of Individual Goals in a fiscal quarter, calculated by adding the percentage weights of all 

-2-

Individual Goals achieved by the Participant that quarter (or pro-rated weights for partial achievement if approved pursuant to Section 4.3).

		
	2.8.
	Participant - a senior level manager of the Company who reports directly to the Company's CEO or other key employee of the Company (other than the CEO) who has been identified by the CEO to participate in this Plan, subject to approval by the Compensation Committee in the case of executive officers or by the CEO for all other Participants.

		
	2.9.
	Performance Period - a fiscal period over which performance is measured and relative to which incentive amounts are calculated and paid to a Participant, as set forth in Section 4.

		
	2.10.
	Plan Administrator - the Company's Compensation Committee with respect to all decisions under the Plan concerning, affecting or related to the compensation of executive officers and the CEO with respect to all other aspects of the Plan.

		
	2.11.
	Plan Year - the Company's fiscal year.

		
	2.12.
	Retirement - the employee's voluntary termination of employment after he/she has reached the age of 55 years and has completed at least five years of service (full-time or full-time equivalent) with the Company so long as the employee has no immediate plans to work in the same or similar occupation with another employer or on a self-employed basis after such termination of employment.

		
	2.13.
	Quarterly Award Level - 10% per quarter (totaling 40% on an annualized basis) unless set at a different percentage by the Compensation Committee for executive officers or the CEO for all other Participants.

		
	2.14.
	Quarterly Award Results - a percentage reflecting achievement of the Quarterly Corporate Performance Goals and a Participant's Individual Goals in a fiscal quarter.  The Quarterly Award Results will be 0% if the Quarterly Corporate Performance Goals are not achieved for the fiscal quarter.  If the Quarterly Corporate Performance Goals are achieved for the fiscal quarter, the Quarterly Award Results for a Participant shall be the sum of 50% and the Participant's Individual Goal Performance Results for the fiscal quarter.

		
	2.15.
	Quarterly Corporate Performance Goals - one or more financial targets established by the CEO for a fiscal quarter.

		
	2.16.
	Target Award Levels - annual Target Award Levels are expressed as a percentage of Base Salary and vary by position.  A Participant's designated Target Award Level represents the award level for 100% achievement of all objectives by that Participant and the Company during a Plan Year.

		
	3.
	ELIGIBILITY

		
	3.1.
	To be eligible to participate in the Plan, a Participant must:  (i) be a regular, full-time employee of the Company or a part-time employee regularly scheduled to work 30 hours or more per week who is paid through the Company's payroll system(s); and (ii) not be disqualified from participation in the Plan as provided below.  A Participant is disqualified from participation in the Plan for any Performance Period in which: (i) the Participant is on disability leave, an unpaid leave of absence or a leave covered by worker's compensation insurance, or any combination of the foregoing, for the entire Performance Period, unless such disqualification is otherwise prohibited by law; (ii) the Plan Administrator exercises the right, as provided in Section 5.2 

-3-

below, to terminate Participant's participation in the Plan prior to the end of such Performance Period on account of a material change in the Participant's duties and responsibilities; or (iii) the Participant is not employed by the Company on the last day of the Performance Period, except in the case of termination of employment due to the Participant's retirement, death or disability (meeting the requirements for benefits under the Company's long-term disability (LTD) plan or, in the case of a Participant who is not eligible to participate in the LTD plan, the determination by a qualified, objective medical professional that the Participant is disabled, as such term is defined in the LTD plan) or termination of employment after Change In Control as provided in Section 6.3.  Moreover, unless approved by the Compensation Committee for executive officers or by the CEO for all other Participants, no Participant in this Plan may participate in any other Company incentive plan that provides for payment of additional cash compensation based on achievement of individual sales or performance goals and/or corporate, subsidiary or division financial or performance goals (including but not limited to the Employee Incentive Compensation Plan, any sales incentive or commission plan or any substantially similar incentive cash compensation program), whether or not there is a payout under such other plan for the Performance Period.
		
	3.2.
	The Plan Administrators reserve the right to disqualify an otherwise eligible Participant from receiving a payment under the Plan if the Company terminates the Participant's employment before payment is made, whether during or after the Performance Period, as a result of the employee engaging in any activity deemed by the Compensation Committee for executive officers or by the CEO for all other Participants to be detrimental to the Company, including without limitation, breach by the employee of any confidentiality, non-competition or non-solicitation obligation, or any act of fraud, misappropriation, embezzlement, or tortious or criminal behavior that adversely impacts the Company.

		
	4.
	AWARDS

		
	4.1.
	Awards are determined based on performance against Annual Corporate Performance Goals, Quarterly Corporate Performance Goals and Individual Goals. Unless otherwise approved by the Compensation Committee for executive officers or by the CEO for all other Participants, 60% of a Participant's Target Award Level will be dependent upon achievement of Annual Corporate Performance Goals. The remaining 40% of a Participant's Target Award Level will be dependent upon achievement of Quarterly Corporate Performance Goals and Individual Goals.  

		
	4.2.
	The CEO will recommend and the Compensation Committee will approve Annual Corporate Performance Goals during the first fiscal quarter of each Plan Year.  The statement of Annual Corporate Performance Goals will include a method of calculating a percentage reflecting the level of achievement of each financial measure comprising the goals, with full achievement of the target assigned 100% and failure to meet a specified threshold for the measure assigned 0%.  Performance in excess of the target for the measure may be assigned percentages greater than 100%, up to a maximum percentage corresponding to a specified maximum amount for the measure.  Unless otherwise provided in the statement of Annual Corporate Performance Goals, performance against each financial measure will be weighted equally in determining the amount of any annual award payout and the annual award payout percentage will be the average of the percentage of achievement of each measure, rounded to the nearest whole percentage.  After the end of the Plan Year, the Compensation Committee will determine in good faith and its sole discretion the annual award payout percentage based on the actual level of achievement toward each financial measure comprising the Annual Corporate Performance Goals, using competent and reliable information, including but not limited to audited financial statements if available.  A Participant's annual award payout amount will equal the product of the Participant's Base 

-4-

Salary, the Participant's Target Award Level, the Participant's Annual Award Level and the annual award payout percentage determined by the Compensation Committee.
		
	4.3.
	The CEO will establish a Quarterly Corporate Performance Goal.  The Participant's manager or other person designated by the CEO will develop the Participant's quarterly Individual Goals, which the CEO or the CEO's designee will approve.  Meeting an Individual Goal will yield a performance measurement of 100% for that particular goal.  Not meeting an Individual Goal will yield a performance measurement of 0% unless the CEO or the CEO's designee approves a prorated percentage based on partial achievement of the goal. Notwithstanding actual individual performance results, no Participant will receive payment under the Plan for any quarterly Performance Period unless all Quarterly Corporate Performance Goals are met for such quarter.  If Quarterly Corporate Performance Goals are met for such quarter, a Participant's quarterly award payout amount will equal the product of the Participant's Base Salary, the Participant's Target Award Level, the Participant's Quarterly Award Level and the Participant's Quarterly Award Results.  Any corresponding quarterly awards will be paid to eligible Participants following the approval of the amount by the CEO.

		
	4.4.
	The Compensation Committee shall have the authority to adjust the Annual Corporate Performance Goals, and the CEO shall have the authority to adjust the Quarterly Corporate Performance Goal, in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles.  Payments will be calculated for each Performance Period based on actual performance achievement and may be amended as described in Section 5.

		
	4.5.
	If an employee becomes a Participant during a Performance Period, then, unless otherwise approved by the Compensation Committee for executive officers or by the CEO for other Participants, the Participant's award payout amount for that Performance Period will be prorated to reflect the portion of the period he or she participated in the Plan.  Specifically, the award payout amount will be multiplied by a fraction, the numerator of which is the number of days in the Performance Period during which s/he was a Participant and the denominator of which is the total number of days in the Performance Period.

		
	4.6.
	If a Participant is on a leave of absence (other than a leave of absence where the Participant continues to be paid his or her full base salary through the Company's payroll system(s), except payments received under the Company's short term disability income protection plan), for all or part of a Performance Period, to the extent permitted by applicable law, the award payout amount for that Performance Period will be prorated to reflect the portion of the period the Participant was not on such leave of absence.  Specifically, the award payout amount will be multiplied by a fraction, the numerator of which is the number of days in the Performance Period during which s/he was not on leave and the denominator of which is the total number of days in the Performance Period.

		
	4.7.
	If the Compensation Committee for executive officers or the CEO for all other Participants approves a change in a Participant's Target Award Level during a Performance Period, the Participant's award payout amount will be prorated to reflect the portion of the Performance Period each respective Target Award Level was applicable.  Specifically, the full award payout amount will be calculated at each Target Award Level and then multiplied by a fraction, the numerator of which is the number of days in the Performance Period during which that Target Award Level was in effect and the denominator of which is the total number of days in the Performance Period.  Those prorated award payout amounts will be summed to determine the total payout amount for the period accounting for the change in Target Award Level.

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	5.
	ADMINISTRATION

		
	5.1.
	The Plan Administrators, in their respective capacities, have the authority to interpret the Plan, and the Plan Administrators' interpretations, in their respective capacities, shall be final and binding on all Plan Participants.  The Director of Compensation and Benefits will have oversight responsibility for consistent application of the Plan, appropriate documentation and timely payment.  

		
	5.2.
	Participants must be approved for inclusion in the Plan each Plan Year.  Participation in a predecessor incentive compensation plan does not entitle any Company employee to be selected for participation in this Plan.  If a Participant's duties and responsibilities materially change during the Plan Year, the Compensation Committee for executive officers or the CEO for all other Participants shall have the option to terminate the Participant's participation in the Plan prior to the end of a Performance Period or otherwise modify the Participant's Individual Goals and/or Target Award Level due to such change.

		
	5.3.
	At all times, this Plan shall be interpreted and operated so that the awards payable under this Plan shall either be exempt from or comply with the provisions of section 409A of the Code and the treasury regulations relating thereto so as not to subject any Plan Participant to the payment of interest and/or any tax penalty that may be imposed under section 409A of the Code with respect to the Plan.

		
	5.4.
	This Plan shall not be construed to give Participants a right of continued employment with the Company.  The establishment and maintenance of this Plan shall in no way affect the Company's ability to award additional bonuses to employees of the Company. 

		
	5.5.
	In order to ensure the Company's best interests are met, the amount of a payment on an award otherwise calculated in accordance with this Plan may be increased, decreased or eliminated at any time prior to payment, in the sole discretion of the CEO, except that no change with respect to any award to any executive officer of the Company shall be made without Compensation Committee approval; provided, however, that so long as the Participant is not in breach of his or her obligations under his or her Employee Agreement Regarding Confidential Information, Intellectual Property, and Non Competition with the Company, payments due as result of a Change In Control, as otherwise provided in this Plan, cannot be decreased or eliminated without the prior written approval of the Participant.

		
	5.6.
	When awarded, payments under the Plan will be made as soon as practicable after the end of the applicable award period, and in any event, payments will be made no later than the end of the second fiscal quarter following the Performance Period to which the payments relate.  Notwithstanding the foregoing, if a Participant is eligible for payment of:  (i) all or part of an annual award as a result of his or her death or termination of his or her employment on account of his or her disability or retirement as provided in Paragraph 5.9 or as a result of his or her involuntary termination under the Severance Plan for Section 16 Officers, if applicable, the payment will be made no later than the 15th day of the third month after the later of the end of the Company's tax year in which such death, disability, retirement or involuntary termination occurs or the end of the Participant's tax year in which such death, disability, retirement or involuntary termination occurs; (ii) 100% of a quarterly award as provided in Paragraph 6.3 due to a Change In Control, payment will be made without exception on or before the 15th day of the third month following the end of the Performance Period; and/or (iii) 100% or more of an annual award as provided in Paragraph 6.3 due to a Change In Control, payment will be made without exception no later than the 15th day of the third month after the later of the end of the 

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Company's tax year in which the Change In Control occurs or the end of the Participant's tax year in which the Change In Control occurs.

		
	5.7.
	Unless otherwise provided in the individual's employment offer, a new hire will commence participation in the Plan as of the date of hire. An existing employee who becomes eligible to participate in the Plan after the start of the Plan Year will commence participation in the Plan on the start date approved by the Compensation Committee in the case of an executive officer or by the CEO in all other cases.

		
	5.8.
	If a Participant in the Plan remains employed by the Company, but after the start of the Plan Year becomes ineligible to continue to participate in the Plan, unless otherwise approved by the Compensation Committee in the case of an executive officer or by the CEO in all other cases, the Participant will not be eligible for an award for any Performance Period that is partially completed as of the date he or she becomes ineligible to participate in the Plan.

		
	5.9.
	In the case of termination of employment due to the Participant's retirement, death or disability (as disability is defined in Section 3.1 above), the Participant will be entitled to a payment under this Plan for any Performance Period commenced prior to the Participant's termination of employment based on the actual performance measurement results for such period, and the Participant's award payout amount  for that Performance Period shall be prorated to reflect the portion of the period the Participant was employed.  Specifically, the award payout amount will be multiplied by a fraction, the numerator of which is the number of days in the Performance Period during which s/he was a Participant and the denominator of which is the total number of days in the Performance Period.

		
	5.10.
	This Plan will be reviewed and evaluated at minimum on an annual basis.  The Company has no obligation to implement the Plan for any fiscal period and has the right at any time, without notice, to update, modify or discontinue the Plan or any practice under which any similar payments have been previously made; provided, however, that the Company may not amend or terminate the Plan in a manner that affects a payment that has already become payable to a Participant.

		
	6.
	OTHER PROVISIONS

		
	6.1.
	Non-Transferability.  No right or interest of any Participant in this Plan is assignable or transferable, or subject to any lien, directly, by operation of law, or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge, and bankruptcy, except that the right to receive any form of compensation payable hereunder may be assigned or transferred by will or laws of descent and distribution.  

		
	6.2.
	No Rights to Company Assets.  No Plan Participant nor any other person will have a right in, nor title to, any assets, funds or property of the Company or any of its subsidiaries through this Plan.  Any earned incentives will be payable from the Company's general assets.  Nothing contained in this Plan constitutes a guarantee by the Company or any of its subsidiaries that the assets of the Company and its subsidiaries will be sufficient to pay any earned incentives.

		
	6.3.
	Change In Control.  In the event a Change In Control occurs during the Plan Year, notwithstanding any language in this Plan to the contrary, each Participant's performance measurement against Individual Goals for any quarterly Performance Period ending after the effective date of the Change In Control will be 100% and the Quarterly Corporate Performance Goals for such Performance Period will be deemed met, and the performance measurement against corporate goals for the Plan Year will be the greater of 100% or such performance 

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measurement as is determined in accordance with this Plan, regardless of whether such Participant is employed at the end of the applicable award period.  For purposes of determining the award after a Change In Control, the Participant's Base Salary used to calculate any payout for any Performance Period ending after the effective date of the Change In Control shall be the greater of the Participant's annual base salary in effect on the day prior to the Change In Control or Participant's annual base salary in effect on the last day of the Performance Period.  If the Participant's employment is terminated due to retirement, death or disability after a Change in Control, the award payout amount calculated in accordance with this Section shall be prorated to reflect the portion of the period he or she participated in the Plan.  Specifically, the award payout amount will be multiplied by a fraction, the numerator of which is the number of days in the Performance Period during which s/he participated in the Plan and the denominator of which is the total number of days in the Performance Period.

		
	6.4.
	Priority of Written Agreement.  Notwithstanding any language in this Plan to the contrary, the terms and conditions of any written agreement between the Company and a Participant regarding payment of one or more awards upon termination of employment for any reason or in the event of a Change In Control shall supersede and control with respect to payment of any such awards to the Participant and no payments (other than those already earned but not yet paid) will occur under this Plan except as provided in such written agreement, provided that the written agreement was approved by the Compensation Committee if the Participant was an executive officer at the time of execution of the agreement or by the CEO in any other case.

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