Document:

Exhibit 10.1

 

XIAO-I CORPORATION

2023 SHARE INCENTIVE PLAN

 

ARTICLE
I

PURPOSE

 

The purpose of this 2023 Share
Incentive Plan is to promote the success and enhance the value of Xiao-I Corporation, an exempted company formed under the laws of the
Cayman Islands (the “Company”), by linking the personal interests of the Directors, Employees, and Consultants to those of
the Company’s shareholders and by providing such individuals with an incentive for outstanding performance to generate superior
returns to the Company’s shareholders.

 

ARTICLE
II

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms
are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun
shall include the plural where the context so indicates.

 

2.1 “Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities,
tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system,
of any jurisdiction applicable to Awards.

 

2.2 “Award”
means an Option, Restricted Share, Restricted Share Units or other types of awards approved by the Committee granted to a Participant
pursuant to the Plan.

 

2.3 “Award
Agreement” means any written agreement, contract, or other instrument or document evidencing an Award, including through electronic
medium.

 

2.4 “Board”
means the board of directors of the Company.

 

2.5 “Cause”
with respect to a Participant means (unless otherwise expressly provided in the applicable Award Agreement, or another applicable contract
with the Participant that defines such term for purposes of determining the effect that a “for cause” termination has on the
Participant’s Awards) a termination of employment or service based upon a finding by the Service Recipient or the Committee, acting
in good faith and based on its reasonable belief at the time, that the Participant:

 

(a) has
been negligent in the discharge of his or her duties to the Service Recipient or any Group Entity, has refused to perform stated or assigned
duties or is incompetent in or (other than by reason of a disability or analogous condition) incapable of performing those duties;

 

     

     

    

 

(b) has
been dishonest or committed or engaged in an act of ethical breach, theft, embezzlement or fraud, a breach of confidentiality, an unauthorized
disclosure or use of inside information, customer lists, trade secrets or other confidential information, or any act of criminal offense;

 

(c) has
breached a fiduciary duty, or violated any other duty, law, rule, regulation, corporate policy or guideline of the Service Recipient or
any Group Entity; or has been convicted of, or plead guilty or nolo contendere to, a felony or misdemeanor (other than minor traffic violations
or similar offenses);

 

(d) has
breached any of the provisions of any agreement with the Service Recipient or any Group Entity, including but not limited to, any intellectual
property and/or invention assignment, employment, non-competition, non-solicitation, confidentiality or other similar agreement;

 

(e) has
engaged in unfair competition with, or otherwise acted in a manner injurious to the name, branding, reputation, business, assets or interests
of, the Service Recipient or any Group Entity; or

 

(f) has
improperly induced a vendor or customer to break or terminate any contract with the Service Recipient or any Group Entity or induced a
principal for whom the Service Recipient or any Group Entity acts as agent to terminate such agency relationship.

 

A termination for Cause shall
be deemed to occur (subject to reinstatement upon a contrary final determination by the Committee) on the date on which the Service Recipient
first delivers written notice to the Participant of a finding of termination for Cause.

 

2.6 “Code”
means the Internal Revenue Code of 1986 of the United States, as amended.

 

2.7 “Committee”
means a committee of the Board described in Article 10.

 

2.8 “Consultant”
means any person, including a consultant or an advisor but not an Employee, who is engaged by a Service Recipient to render consulting
or advisory services and is compensated for such services.

 

2.9 “Corporate
Transaction”, unless otherwise defined in an Award Agreement, means any of the following transactions, provided, however, that
the Committee shall determine under (d) and (e) whether multiple transactions are related, and its determination shall be final, binding
and conclusive:

 

(a) an
amalgamation, arrangement, merger or consolidation or scheme of arrangement (i) in which the Company is not the surviving entity, except
for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or (ii) following
which the holders of the voting securities of the Company do not continue to hold more than 50% of the combined voting power of the voting
securities of the surviving entity;

 

    - 2 -

     

    

 

(b) the
sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

(c) the
complete liquidation or dissolution of the Company;

 

(d) any
reverse takeover or series of related transactions culminating in a reverse takeover (including, but not limited to, a tender offer followed
by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity securities outstanding immediately
prior to such takeover are converted or exchanged by virtue of the takeover into other property, whether in the form of securities, cash
or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such
takeover or the initial transaction culminating in such takeover, but excluding any such transaction or series of related transactions
that the Committee determines shall not be a Corporate Transaction; or

 

(e) acquisition
in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored
employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any such transaction
or series of related transactions that the Committee determines shall not be a Corporate Transaction.

 

2.10 “Director”
means a member of the Board or a member of the board of directors of any Service Recipient.

 

2.11 “Disability”
means a disability, whether temporary or permanent, partial or total, that causes the Participant to be unable to carry out the responsibilities
and functions of the position held by the Participant. For the avoidance of doubt, a Participant will not be considered to have incurred
a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Committee in its discretion.

 

2.12 “Effective
Date” shall have the meaning set forth in Section 11.1.

 

2.13 “Employee”
means any person, including an officer or a Director, who is in the employment of a Service Recipient, subject to the control and direction
of the Service Recipient as to both the work to be performed and the manner and method of performance. The payment of a director’s
fee by a Service Recipient shall not be sufficient to constitute “employment” by the Service Recipient.

 

2.14 “Exchange
Act” means the Securities Exchange Act of 1934 of the United States, as amended.

 

2.15 “Fair
Market Value” means, as of any date, the value of Shares determined as follows:

 

(a) if
the Shares are listed on one or more established stock exchanges or national market systems, including without limitation, the New York
Stock Exchange or the Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid,
if no sales were reported) as quoted on the principal exchange or system on which the Shares are listed (as determined by the Committee)
on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading
date such closing sales price or closing bid was reported), as reported on the website maintained by such exchange or market system or
such other source as the Committee deems reliable;

 

    - 3 -

     

    

 

(b) If
depositary receipts representing the Shares are listed on one or more established stock exchanges or traded on automated quotation systems,
the Fair Market Value shall be the closing sales price for such depositary receipts (or the closing bid, if no sales were reported) as
quoted on the principal exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as
the Committee deems reliable, divided by the number of Shares that are represented by such depositary receipts, or, if the date of determination
is not a Trading Date, the closing sales price for such depositary receipts as quoted on the principal exchange or system on which such
depositary receipts are listed or traded on the Trading Date immediately preceding the date of determination, divided by the number of
Shares that are represented by such depositary receipts;

 

(c) If
the Shares or depositary receipts representing the Shares are regularly quoted on an automated quotation system or by a recognized securities
dealer, its Fair Market Value shall be the closing sales price for such Shares or depositary receipts representing the Shares divided
by the number of Shares that are presented by such depositary receipts (as applicable) as quoted on such system or by such securities
dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a Share or depositary receipts representing
the Shares shall be the mean between the high bid and low ask prices for the Shares or depositary receipts representing the Shares on
the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported
in The Wall Street Journal or such other source as the Committee deems reliable; or

 

(d) in
the absence of an established market for the Shares of the type described in (a), (b) and (c) above, the Fair Market Value thereof shall
be determined by the Committee in good faith and in its discretion by reference to (i) the placing price of the latest private placement
of the Shares and the development of the Company’s business operations and the general economic and market conditions since such
latest private placement, (ii) other third party transactions involving the Shares and the development of the Company’s business
operation and the general economic and market conditions since such transaction, (iii) an independent valuation of the Shares, or (iv)
such other methodologies or information as the Committee determines to be indicative of Fair Market Value.

 

2.16 “Group
Entity” means any of the Company, Subsidiaries or Related Entities of the Company.

 

2.17 “Incentive
Share Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision
thereto.

 

    - 4 -

     

    

 

2.18 “Independent
Director” means (i) if the Shares or other securities representing the Shares are not listed on a stock exchange, a Director
of the Company who is a Non-Employee Director; and (ii) if the Shares or other securities representing the Shares are listed on one or
more stock exchange, a Director of the Company who meets the independence standards under the applicable corporate governance rules of
the stock exchange(s).

 

2.19 “Non-Employee
Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3)
of the Exchange Act, or any successor definition adopted by the Board.

 

2.20 “Non-Qualified
Share Option” means an Option that is not intended to be an Incentive Share Option.

 

2.21 “Option”
means a right granted to a Participant pursuant to Article 5 of the Plan and an Award Agreement to purchase a specified number of Shares
at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option.

 

2.22 “Participant”
means a person who, as a Director, Consultant or Employee, has been granted an Award pursuant to the Plan.

 

2.23 “Parent”
means a parent corporation under Section 424(e) of the Code.

 

2.24 “Plan”
means this 2023 Share Incentive Plan of Xiao-I Corporation as amended and/or restated from time to time.

 

2.25 “Related
Entity” means any business, corporation, partnership, limited liability company or other entity in which the Company or a Parent
or Subsidiary of the Company holds a substantial ownership interest, directly or indirectly, or controls through contractual arrangements
and consolidates the financial results according to applicable accounting standards, but which is not a Subsidiary and which the Committee
designates as a Related Entity for purposes of the Plan. For purposes of the Plan, any business, corporation, partnership, limited liability
company or other entity in or of which the Company or a Parent or Subsidiary of the Company owns, directly or indirectly, securities or
interests representing twenty percent (20%) or more of its total combined voting power of all classes of securities or interests shall
be deemed as a “Related Entity.”

 

2.26 “Restricted
Share” means a Share awarded to a Participant pursuant to Article 6 and an Award Agreement that is subject to certain restrictions
and may be subject to risk of forfeiture or repurchase.

 

2.27 “Restricted
Share Unit” means the right granted to a Participant pursuant to Article 7 and an Award Agreement to receive a Share at a future
date.

 

2.28 “Securities
Act” means the Securities Act of 1933 of the United States, as amended.

 

    - 5 -

     

    

 

2.29 “Service
Recipient” means the Company, any Parent or Subsidiary of the Company, or any Related Entity to which a Participant provides
services as an Employee, a Consultant, or a Director.

 

2.30 “Share”
means the ordinary shares of the Company, par value US$0.0005 per share, and such other securities of the Company that may be substituted
for Shares pursuant to Article 9.

 

2.31 “Subsidiary”
means any corporation or other entity of which a majority of the outstanding voting shares or voting power is beneficially owned directly
or indirectly by the Company.

 

2.32 “Trading
Date” means the closing of the first sale to the general public of the Shares or depositary receipts representing the Shares
pursuant to a registration statement filed with and declared effective by the U.S. Securities and Exchange Commission under the Securities
Act.

 

2.33 “United
States” or “U.S.” means the United States of America.

 

ARTICLE
III

SHARES SUBJECT TO THE PLAN

 

3.1 Number
of Shares

 

(a) Subject
to the provisions of Article 9 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant to all Awards (including
Incentive Share Options) shall initially be 2,600,000 shares (all of which may be granted as Incentive Share Options), provided, that
after the Company completes its initial public offering, if the aggregate number of Shares reserved and available for future grants of
Awards under the Plan falls below 3.0% of the total Shares of the Company in issue and outstanding on the last day of the immediately
preceding calendar year (the “Limit”), the Plan Share Reserve shall automatically be increased so that the aggregate number
of Shares reserved and available for future grants of Awards under the Plan shall be equal to the Limit on January 1 thereafter, assuming,
for purposes of determining the number of Shares outstanding on such date, that all preferred shares, options, warrants, convertible notes
and other equity securities that are convertible into or exercisable or exchangeable for Shares (whether or not by their terms then currently
convertible, exercisable or exchangeable) that were outstanding on such date, are deemed to have been so converted, exercised or exchanged.

 

(b) The
Shares that may be subject to Awards are authorized but unissued Shares of the Company.

 

(c) To the extent that an
Award terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be available for the grant of an
Award pursuant to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption of, or in substitution for, any
outstanding awards of any entity acquired in any form or combination by a Group Entity shall not be counted against Shares available
for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company upon the exercise of any Award under
the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 3.1(a). If any Restricted Shares are forfeited or repurchased by the Company, such Shares
shall form part of the authorized but unissued share capital of the Company and may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may again be
optioned, granted or awarded if such action would cause an Incentive Share Option to fail to qualify as an incentive share option
under Section 422 of the Code.

 

    - 6 -

     

    

 

3.2 Shares
Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasury
Shares (subject to Applicable Laws) or Shares purchased on the open market. In addition, in the discretion of the Committee, American
depositary shares (“ADSs”), may be distributed in lieu of Shares in settlement of any Award; provided,
that the ADSs shall be of equal value to the Shares that would have otherwise been distributed; provided, further,
that, in lieu of issuing a fractional ADS, the Company shall make a cash payment to the Participant equal to the Fair Market Value of
such fractional ADS.  If the number of Shares represented by an ADS is other than on a one-to-one basis, the limitations contained
in Section 3.1 shall be adjusted to reflect the distribution of ADSs in lieu of Shares.

 

ARTICLE
IV

ELIGIBILITY AND PARTICIPATION

 

4.1 Eligibility.
Persons eligible to participate in the Plan include Employees, Consultants, and Directors, as determined by the Committee.

 

4.2 Participation.
Subject to the provisions of the Plan, the Committee may, from time to time, select from among all eligible individuals, those to whom
Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award
pursuant to the Plan.

 

4.3 Jurisdictions.
In order to assure the viability of Awards granted to Participants employed in various jurisdictions, the Committee may provide for such
special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in
the jurisdiction in which the Participant resides, is employed, operates or is incorporated. Moreover, the Committee may approve such
supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such
purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements,
amendments, restatements, or alternative versions shall increase the share limitations contained in Section 3.1 of the Plan. Notwithstanding
the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable Laws.

 

    - 7 -

     

    

 

ARTICLE
V

OPTIONS

 

5.1 General.
The Committee is authorized to grant Options to Participants on the following terms and conditions:

 

(a) Exercise
Price. The exercise price per Share subject to an Option shall be determined by the Committee and set forth in the Award Agreement
which may be a fixed price or a variable price related to the Fair Market Value of the Shares. The exercise price per Share subject to
an Option may be amended or adjusted in the absolute discretion of the Committee, the determination of which shall be final, binding and
conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Laws or any exchange rule, a downward adjustment of
the exercise prices of Options mentioned in the preceding sentence shall be effective without the approval of the Company’s shareholders
or the approval of the affected Participants. Notwithstanding anything in the foregoing, the exercise price shall in no circumstances
be less than the par value of the Shares.

 

(b) Time
and Conditions of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole or in part,
including exercise prior to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years, except as
provided in Section 12.1. The Committee shall also determine any conditions, if any, that must be satisfied before all or part of an Option
may be exercised.

 

(c) Payment.
The Committee shall determine the methods by which the exercise price of an Option may be paid and the form of payment, including, without
limitation: (i) cash or check denominated in U.S. dollars, (ii) to the extent permissible under the Applicable Laws, cash or check in
Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved by the Committee, (iv) Shares held for such
period of time as may be required by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market
Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, (v) after the Trading
Date the delivery of a notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable upon
exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company
in satisfaction of the Option exercise price; provided that payment of such proceeds is then made to the Company upon settlement of such
sale, (vi) other property acceptable to the Committee with a Fair Market Value equal to the exercise price, or (vii) any combination of
the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of the Board or an “executive
officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of
an Option in any method which would violate Section 13(k) of the Exchange Act.

 

(d) Evidence
of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant. The Award Agreement shall
include such additional provisions as may be specified by the Committee.

 

    - 8 -

     

    

 

(e) Effects
of Termination of Employment or Service on Options. Termination of employment or service shall have the following effects on Options
granted to the Participants:

 

(i) Dismissal
for Cause. Unless otherwise provided in the Award Agreement or with prior written approval from the Committee, if a Participant’s
employment by or service to the Service Recipient is terminated by the Service Recipient for Cause, the Participant’s Options will
terminate upon such termination, whether or not the Option is then vested and/or exercisable;

 

(ii) Death
or Disability. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or service to the Service
Recipient terminates as a result of the Participant’s death or Disability:

 

(A) the
Participant (or his or her legal representative or beneficiary, in the case of the Participant’s Disability or death, respectively)
will have until the date that is 12 months after the Participant’s termination of Employment or service to exercise the Participant’s
Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of the Participant’s termination
of Employment or service on account of death or Disability;

 

(B) the
Options, to the extent not vested or exercisable on the date of the Participant’s termination of Employment or service, shall terminate
upon the Participant’s termination of Employment or service on account of death or Disability; and

 

(C) the
Options, to the extent exercisable for the 12-month period following the Participant’s termination of Employment or service and
not exercised during such period, shall terminate at the close of business on the last day of the 12-month period.

 

(iii) Other
Terminations of Employment or Service. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or
service to the Service Recipient terminates for any reason other than a termination by the Service Recipient for Cause or because of the
Participant’s death or Disability:

 

(A) the
Participant will have until the date that is 90 days after the Participant’s termination of Employment or service to exercise his
or her Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of the Participant’s
termination of Employment or service;

 

(B) the
Options, to the extent not vested or exercisable on the date of the Participant’s termination of Employment or service, shall terminate upon the Participant’s
termination of Employment or service; and

 

(C) the
Options, to the extent exercisable for the 90-day period following the Participant’s termination of Employment or service and not
exercised during such period, shall terminate at the close of business on the last day of the 90-day period.

 

    - 9 -

     

    

 

5.2 Incentive
Share Options. Incentive Share Options may be granted to Employees of the Company or a Subsidiary of the Company. Incentive Share
Options may not be granted to employees of a Related Entity or to Independent Directors or Consultants. The terms of any Incentive Share
Options granted pursuant to the Plan, in addition to the requirements of Section 5.1, must comply with the following additional provisions
of this Section 5.2:

 

(a) Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to
which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed United States dollars100,000
or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options
are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Share Options.

 

(b) Exercise
Price. The exercise price of an Incentive Share Option shall be equal to the Fair Market Value on the date of grant. However, the
exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares possessing more than ten
percent of the total combined voting power of all classes of shares of the Company or any Parent or Subsidiary of the Company may not
be less than 110% of Fair Market Value on the date of grant and such Option may not be exercisable for more than five years from the date
of grant. Notwithstanding anything in the foregoing, the exercise price shall in no circumstances be less than the par value of the Shares.

 

(c) Transfer
Restriction. The Participant shall give the Company prompt notice of any disposition of Shares acquired by exercise of an Incentive
Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer or issuance
(as the case may be) of such Shares to the Participant.

 

(d) Expiration
of Incentive Share Options. No Award of an Incentive Share Option may be made pursuant to the Plan after the tenth anniversary of
the Effective Date.

 

(e) Right
to Exercise. During a Participant’s lifetime, an Incentive Share Option may be exercised only by the Participant.

 

ARTICLE
VI

RESTRICTED SHARES

 

6.1 Grant of
Restricted Shares. The Committee, at any time and from time to time, may grant Restricted Shares to Participants as the
Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted
Shares to be granted to each Participant.

 

    - 10 -

     

    

 

6.2 Restricted
Shares Award Agreement. Each Award of Restricted Shares shall be evidenced by an Award Agreement that shall specify the period of
restriction, the number of Restricted Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall
determine. Unless the Committee determines otherwise, Restricted Shares shall be held by the Company as escrow agent until the restrictions
on such Restricted Shares have lapsed.

 

6.3 Issuance
and Restrictions. Restricted Shares shall be subject to such restrictions on transferability and other restrictions as the Committee
may impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to receive dividends on the
Restricted Shares). These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments,
or otherwise, as the Committee determines at the time of the grant of the Award or thereafter.

 

6.4 Forfeiture/Repurchase.
Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter and subject to all Applicable Laws,
upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject to
restrictions shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, the Committee may (a) provide
in any Restricted Share Award Agreement that restrictions or forfeiture or repurchase conditions relating to Restricted Shares will be
waived in whole or in part in the event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part
restrictions or forfeiture or repurchase conditions relating to Restricted Shares.

 

6.5 Certificates
for Restricted Shares. Restricted Shares granted pursuant to the Plan may be evidenced in such manner as the Committee shall determine.
If certificates representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legend
referring to the terms, conditions, and restrictions applicable to such Restricted Shares, and the Company may, at its discretion, retain
physical possession of the certificate until such time as all applicable restrictions lapse.

 

6.6 Removal
of Restrictions. Except as otherwise provided in this Article 6, Restricted Shares granted under the Plan shall be released from escrow
as soon as practicable after the last day of the period of restriction. The Committee, in its discretion, may accelerate the time at which
any restrictions shall lapse or be removed. After the restrictions have lapsed, the Participant shall be entitled to have any legend or
legends under Section 6.5 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant, subject
to applicable legal restrictions. The Committee (in its discretion) may establish procedures regarding the release of Shares from escrow
and the removal of legends, as necessary or appropriate to minimize administrative burdens on the Company.

 

    - 11 -

     

    

 

ARTICLE
VII

RESTRICTED SHARE UNITS

 

7.1 Grant
of Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share Units to Participants as the
Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted Share
Units to be granted to each Participant.

 

7.2 Restricted
Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement that shall specify any
vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as the Committee, in its sole discretion,
shall determine.

 

7.3 Form
and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the date or dates on which the
Restricted Share Units shall become fully vested and non-forfeitable. Upon vesting, the Committee, in its sole discretion, may pay Restricted
Share Units in the form of cash, Shares or a combination thereof. The Committee shall also determine any conditions, if any, that must
be satisfied before the Restricted Share Units are vested.

 

7.4 Forfeiture/Repurchase.
Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter and subject to all Applicable Laws,
upon termination of employment or service during the applicable restriction period, Restricted Share Units that are at that time unvested
shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, the Committee may (a) provide in any Restricted
Share Unit Award Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted Share Units will be waived
in whole or in part in the event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions
or forfeiture and repurchase conditions relating to Restricted Share Units.

 

ARTICLE
VIII

PROVISIONS APPLICABLE TO AWARDS

 

8.1 Award
Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and limitations for each
Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates,
and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award.

 

8.2 No
Transferability; Limited Exception to Transfer Restrictions.

 

8.2.1 Limits
on Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 8.2, by applicable law and by the Award Agreement,
as the same may be amended:

 

(a) all
Awards are non-transferable and will not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance
or charge;

 

    - 12 -

     

    

 

(b) Awards
will be exercised only by the Participant; and

 

(c) amounts
payable or shares issuable pursuant to an Award will be delivered only to (or for the account of), and, in the case of Shares, registered
in the name of, the Participant.

 

In addition, the shares shall
be subject to the restrictions set forth in the applicable Award Agreement.

 

8.2.2 Further
Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 8.2.1 will not apply to:

 

(a) transfers
to the Company or a Subsidiary;

 

(b) the
designation of a beneficiary to receive benefits if the Participant dies or, if the Participant has died, transfers to or exercises by
the Participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent
and distribution; or

 

(c) if
the Participant has suffered a Disability, permitted transfers or exercises on behalf of the Participant by the Participant’s duly
authorized legal representative; or

 

(d) subject
to the prior approval of the Committee or an executive officer or director of the Company authorized by the Committee, transfer to one
or more natural persons who are the Participant’s family members or entities owned and controlled by the Participant and/or the
Participant’s family members, including but not limited to special purpose vehicles, trusts or other entities whose beneficiaries
or beneficial owners are the Participant and/or the Participant’s family members, or to such other persons or entities as may be
expressly approved by the Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer
shall be subject to the condition that the Committee receives evidence satisfactory to it that the transfer is being made for estate and/or
tax planning purposes and on a basis consistent with the Company’s lawful issue of securities.

 

Notwithstanding anything else
in this Section 8.2.2 to the contrary, but subject to compliance with all Applicable Laws, Incentive Share Options, Restricted Shares
and Restricted Share Units will be subject to any and all transfer restrictions under the Code applicable to such Awards or necessary
to maintain the intended tax consequences of such Awards.

 

8.3 Beneficiaries.
Notwithstanding Section 8.2, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A
beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms
and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the Participant is
married and resides in a community property state, a designation of a person other than the Participant’s spouse as his or her
beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be effective without the prior
written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shall
be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to
the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is
filed with the Committee.

 

    - 13 -

     

    

 

8.4 Performance
Objectives and Other Terms. The Committee, in its discretion, may set performance objectives or other vesting criteria which, depending
on the extent to which they are met, will determine the number or value of the Awards that will be granted or paid out to the Participants.

 

8.5 Share
Certificates. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates
evidencing the Shares or ADSs (as defined in Section 13.11) issued pursuant to the exercise of any Award, unless and until the Committee
has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all Applicable Laws,
regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares or ADSs are listed or
traded. All Share and ADS certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as
the Committee deems necessary or advisable to comply with all Applicable Laws, and the rules of any national securities exchange or automated
quotation system on which the Shares or ADSs are listed, quoted, or traded. The Committee may place legends on any Share or ADS certificate
to reference restrictions applicable to the Shares or ADS. In addition to the terms and conditions provided herein, the Committee may
require that a Participant make such reasonable covenants, agreements, and representations as the Committee, in its discretion, deems
advisable in order to comply with any such Applicable Laws. The Committee shall have the right to require any Participant to comply with
any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may
be imposed in the discretion of the Committee. Notwithstanding any other provision of the Plan, unless otherwise determined by the Committee
or required by any Applicable Law, the Company shall have the discretion not to deliver to any Participant certificates evidencing Shares
or ADSs issued in connection with any Award and instead record such Shares or ADSs in the books of the Company (or, as applicable, its
transfer agent or share plan administrator).

 

8.6 Paperless
Administration. Subject to Applicable Laws, the Committee may make Awards and provide applicable disclosure and procedures for exercise
of Awards by an internet website, electronic mail or interactive voice response system for the paperless administration of Awards.

 

8.7 Foreign
Currency. The Award Agreement shall specify the currency applicable to such Award.  The Committee may determine, in its
sole discretion, that an Award denominated in one currency may be paid in any other currency based on the prevailing exchange rate
as the Committee deems appropriate.  A Participant may be required to provide evidence that any currency used to pay the
exercise price of any Award was acquired and taken out of the jurisdiction in which the Participant resides in accordance with
Applicable Laws, including foreign exchange control laws and regulations. In the event the exercise price for an Award is paid in
Chinese Renminbi or other foreign currency, as permitted by the Committee, the amount payable will be determined by conversion from
U.S. dollars at the official rate promulgated by the People’s Bank of China for Chinese Renminbi, or for jurisdictions other
than the People’s Republic of China, the exchange rate as selected by the Committee on the date of exercise.

 

    - 14 -

     

    

 

ARTICLE
IX

CHANGES IN CAPITAL STRUCTURE

 

9.1 Adjustments.
In the event of any dividend, share split, combination or exchange of Shares, amalgamation, merger, arrangement or consolidation, spin-off,
recapitalization or other distribution (other than normal cash dividends) of Company assets to its shareholders, or any other change affecting
the number of Shares or the price of a Share, the Committee shall make such proportionate adjustments, if any, as the Committee in its
discretion may deem appropriate to reflect such change with respect to (a) the aggregate number and type of shares that may be issued
under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding
Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (c) the grant or exercise
price per share for any outstanding Awards under the Plan, provided that the exercise price per Share shall in no circumstances fall below
the par value of such Share.

 

9.2 Corporate
Transactions. Except as may otherwise be provided in any Award Agreement or any other written agreement entered into by and between
the Company and a Participant, if the Committee anticipates the occurrence, or upon the occurrence, of a Corporate Transaction, the Committee
may, in its sole discretion, provide for (i) any and all Awards outstanding hereunder to terminate at a specific time in the future and
shall give each Participant the right to exercise the vested portion of such Awards during a period of time as the Committee shall determine,
or (ii) the purchase of any Award for an amount of cash equal to the amount that could have been attained upon the exercise of such Award
(and, for the avoidance of doubt, if as of such date the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award, then such Award may be terminated by the Company without payment), or (iii) the replacement of such Award
with other rights or property selected by the Committee in its sole discretion or the assumption of or substitution of such Award by the
successor or surviving corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares
and prices, or (iv) payment of such Award in cash based on the value of Shares on the date of the Corporate Transaction plus reasonable
interest on the Award through the date as determined by the Committee when such Award would otherwise be vested or have been paid in accordance
with its original terms, if necessary to comply with Section 409A of the Code.

 

9.3 Outstanding
Awards — Other Changes. In the event of any other change in the capitalization of the Company or corporate change other
than those specifically referred to in this Article 9, the Committee may, in its absolute discretion, make such adjustments in the
number and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share grant or
exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement of rights (provided that
the exercise price per Share shall in no circumstances fall below the par value of such Share).

 

    - 15 -

     

    

 

9.4 No
Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation
of Shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or pursuant to
action of the Committee under the Plan, no issuance by the Company of shares of any class, or securities convertible into shares of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to an Award or the
grant or exercise price of any Award.

 

ARTICLE
X

ADMINISTRATION

 

10.1 Committee.
The Plan shall be administered by the Board or the Compensation Committee of the Board (the “Committee”) to whom the Board
shall delegate the authority to grant or amend Awards to Participants other than any of the Committee members. Reference to the Committee
shall refer to the Board in absence of the Committee. Notwithstanding the foregoing, the full Board, acting by majority of its members
in office, shall conduct the general administration of the Plan if required by Applicable Laws, and with respect to Awards granted to
the Committee members and for purposes of such Awards the term “Committee” as used in the Plan shall be deemed to refer
to the Board.

 

10.2 Action
by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members of the Committee present
at any meeting at which a quorum is present, and acts approved unanimously in writing by all members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or
other information furnished to that member by any officer or other employee of a Group Entity, the Company’s independent certified
public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration
of the Plan.

 

10.3 Authority
of the Committee. Subject to any specific designation in the Plan, the Committee has the exclusive power, authority and discretion
to:

 

(a) designate
Participants to receive Awards;

 

(b) determine
the type or types of Awards to be granted to each Participant;

 

(c) determine
the number of Awards to be granted and the number of Shares to which an Award will relate;

 

(d) designate an
administrator to administer the Awards to Participants other than Committee members and executive officers of the Company, including
designating Participants to receive Awards, determining the type or types of Awards to be granted to each Participant, determining
the number of Awards to be granted and the number of Shares to which an Award will relate, determining the vesting terms, payment of
the Award, and granting waiver of any conditions for the Award, or imposing any restriction or limitation regarding the Award or the
Shares relating thereto, based in each case on such factors as the administrator, in its sole discretion, shall determine;

 

    - 16 -

     

    

 

(e) determine
the terms and conditions (including modifications thereto) of any Award granted pursuant to the Plan, including, but not limited to, the
vesting terms or schedule, exercise price, grant price, purchase price, payment, or any restrictions or limitations on the Award, any
schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, any accelerations or waivers of conditions,
and any provisions related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Committee
in its sole discretion determines;

 

(f) determine
whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid
in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(g) prescribe
the form of each Award Agreement, which need not be identical for each Participant;

 

(h) decide
all other matters that must be determined in connection with an Award;

 

(i) establish,
adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;

 

(j) interpret
the terms of, and any matter arising pursuant to, the Plan or any Award Agreement;

 

(k) amend
terms and conditions of Award Agreements; and

 

(l) make
all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary or advisable to administer
the Plan, including designing and adopting from time to time new types of Awards that are in compliance with Applicable Laws.

 

10.4 Decisions
Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Award Agreement and all decisions
and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all Participants.

 

ARTICLE
XI

EFFECTIVE AND EXPIRATION DATE

 

11.1 Effective
Date. The Plan shall become effective as of the date on which the Board adopts the Plan or as otherwise specified by the Board when
adopting the Plan (the “Effective Date”).

 

    - 17 -

     

    

 

11.2 Expiration
Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the tenth anniversary of the Effective Date.
Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according to the terms of the Plan
and the applicable Award Agreement.

 

ARTICLE
XII

AMENDMENT, MODIFICATION, AND TERMINATION

 

12.1 Amendment,
Modification, and Termination. At any time and from time to time, the Board may terminate, amend or modify the Plan; provided,
however, that (a) to the extent necessary and desirable to comply with Applicable Laws or stock exchange rules, the Company shall obtain
shareholder approval of any Plan amendment in such a manner and to such a degree as required, unless the Company decides to follow home
country practice, and (b) unless the Company decides to follow home country practice, shareholder approval is required for any amendment
to the Plan that (i) increases the number of Shares available under the Plan (other than any adjustment as provided by Article 9 or Section
3.1(a)), or (ii) permits the Committee to extend the term of the Plan or the exercise period for an Option beyond ten years from the date
of grant.

 

12.2 Awards
Previously Granted. Except with respect to amendments made pursuant to Section 12.1, no termination, amendment, or modification of
the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent
of the Participant.

 

ARTICLE
XIII

GENERAL PROVISIONS

 

13.1 No
Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any Award pursuant to the Plan, and
neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly.

 

13.2 No
Shareholders Rights. No Award gives the Participant any of the rights of a shareholder of the Company unless and until Shares are
in fact issued to such person in connection with such Award.

 

13.3 Taxes. No
Shares shall be issued, transferred or delivered under the Plan to any Participant until such Participant has made arrangements
acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws. The
Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy all applicable taxes (including the Participant’s payroll tax obligations) required
or permitted by Applicable Laws to be withheld with respect to any taxable event concerning a Participant arising as a result of the
Plan. The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the
Company withhold Shares otherwise issuable under an Award (or, subject to all Applicable Laws, allow the return of Shares) having a
Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares
which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the
Participant of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy any income and
payroll tax liabilities applicable to the Participant with respect to the issuance, vesting, exercise or payment of the Award shall,
unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of
withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for the
applicable income and payroll tax purposes that are applicable to such supplemental taxable income.

 

    - 18 -

     

    

 

13.4 No
Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or limit in any way the right of
the Service Recipient to terminate any Participant’s employment or services at any time, nor confer upon any Participant any right
to continue in the employment or services of any Service Recipient.

 

13.5 Unfunded
Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments
not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any
rights that are greater than those of a general creditor of the relevant Group Entity.

 

13.6 Indemnification.
To the extent allowable pursuant to Applicable Laws, each member of the Committee or of the Board shall be indemnified and held harmless
by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection
with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved
by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction
of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at
its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant
to the Company’s Memorandum of Association and Articles of Association, as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless.

 

13.7 Relationship
to Other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits pursuant to any pension,
retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the any Group Entity except to the extent otherwise
expressly provided in writing in such other plan or an agreement thereunder.

 

13.8 Expenses.
The expenses of administering the Plan shall be borne by the Group Entities.

 

13.9 Titles
and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict,
the text of the Plan, rather than such titles or headings, shall control.

 

    - 19 -

     

    

 

13.10 Fractional
Shares. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in
lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding down.

 

13.11 Government
and Other Regulations. The obligation of the Company to make payment of awards in Shares or otherwise shall be subject to all Applicable
Laws, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register any of the
Shares paid pursuant to the Plan under the Securities Act or any other similar law in any applicable jurisdiction. If the Shares paid
pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act or other Applicable Laws,
the Company may restrict the transfer of such Shares in such manner as it deems advisable to ensure the availability of any such exemption.

 

13.12 Governing
Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the Cayman Islands, without
regard to conflicts of laws thereof.

 

13.13 Section
409A. To the extent that the Committee determines that any Award granted under the Plan is or may become subject to Section 409A of
the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To
the extent applicable, the Plan and the Award Agreements shall be interpreted in accordance with Section 409A of the Code and the U.S.
Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulation
or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event
that following the Effective Date the Committee determines that any Award may be subject to Section 409A of the Code and related Department
of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Committee may adopt
such amendments to the Plan and the applicable Award agreement or adopt other policies and procedures (including amendments, policies
and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (a)
exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the
Award, or (b) comply with the requirements of Section 409A of the Code and related U.S. Department of Treasury guidance.

 

13.14 Appendices.
Subject to Section 12.1, the Committee may approve such supplements, amendments or appendices to the Plan as it may consider necessary
or appropriate for purposes of compliance with Applicable Laws or otherwise and such supplements, amendments or appendices shall be considered
a part of the Plan; provided, however, that no such supplements shall increase the share limitation contained in Section
3.1 of the Plan without the approval of the Board with the authority granted by the shareholders of the Company.

 

 

    - 20 -Exhibit 10.2

 

FORM OF DIRECTOR AND EXECUTIVE OFFICER
INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT
(this “Agreement”) is made as of ____________, by and between Xiao-I Corporation, an exempted company duly incorporated
and validly existing under the law of the Cayman Islands (the “Company”), and __________ (the “Indemnitee”),
a director/an executive officer of the Company.

 

WHEREAS, the Indemnitee has
agreed to serve as a director/an executive officer of the Company and in such capacity will render valuable services to the Company; and

 

WHEREAS, in order to induce
and encourage highly experienced and capable persons such as the Indemnitee to serve as directors/executive officers of the Company, the
board of directors of the Company (the “Board of Directors”) has determined that this Agreement is not only reasonable
and prudent, but necessary to promote and ensure the best interests of the Company and its shareholders;

 

NOW, THEREFORE, in consideration
of the premises and mutual agreements hereinafter set forth, and other good and valuable consideration, including, without limitation,
the service of the Indemnitee, the receipt of which hereby is acknowledged, and in order to induce the Indemnitee to serve as a director/an
executive officer of the Company, the Company and the Indemnitee hereby agree as follows:

 

 1. Definitions. As used in this Agreement:

 

(a)   “Change
in Control” shall mean a change in control of the Company of a nature that would be required to be reported in response to Item
6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar or successor schedule or form) promulgated under
the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the
“Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without
limitation, such a Change in Control shall be deemed to have occurred (irrespective of the applicability of the initial clause of this
definition) if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Act, but excluding any trustee or
other fiduciary holding securities pursuant to an employee benefit or welfare plan or employee share plan of the Company or any subsidiary
of the Company, or any entity organized, appointed, established or holding securities of the Company with voting power for or pursuant
to the terms of any such plan) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly,
of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities
without the prior approval of at least two-thirds of the Continuing Directors (as defined below) in office immediately prior to such person’s
attaining such interest; (ii) the Company is a party to a merger, consolidation, scheme of arrangement, sale of assets or other reorganization,
or a proxy contest, as a consequence of which Continuing Directors in office immediately prior to such transaction or event constitute
less than a majority of the Board of Directors of the Company (or any successor entity) thereafter; or (iii) during any period of two
(2) consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (including for
this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of
at least two-thirds of the directors then still in office who were directors at the beginning of such period) (such directors being referred
to herein as “Continuing Directors”) cease for any reason to constitute at least a majority of the Board of Directors
of the Company.

 

     

     

    

 

(b)   “Disinterested
Director” with respect to any request by the Indemnitee for indemnification or advancement of expenses hereunder shall mean
a director of the Company who neither is nor was a party to the Proceeding (as defined below) in respect of which indemnification or advancement
is being sought by the Indemnitee.

 

(c)   The
term “Expenses” shall mean, without limitation, expenses of Proceedings, including attorneys’ fees, disbursements
and retainers, accounting and witness fees, expenses related to preparation for service as a witness and to service as a witness, travel
and deposition costs, expenses of investigations, judicial or administrative proceedings and appeals, amounts paid in settlement of a
Proceeding by or on behalf of the Indemnitee, costs of attachment or similar bonds, any expenses of attempting to establish or establishing
a right to indemnification or advancement of expenses, under this Agreement, the Company’s memorandum and articles of association
as currently in effect (the “Articles”), applicable law or otherwise, and reasonable compensation for time spent by
the Indemnitee in connection with the investigation, defense or appeal of a Proceeding or action for indemnification for which the Indemnitee
is not otherwise compensated by the Company or any third party. The term “Expenses” shall not include the amount of judgments,
fines, interest or penalties, or excise taxes assessed with respect to any employee benefit or welfare plan, which are actually levied
against or sustained by the Indemnitee to the extent sustained after final adjudication.

 

(d)   The
term “Independent Legal Counsel” shall mean any firm of attorneys reasonably selected by the Board of Directors of
the Company, so long as such firm has not represented the Company, the Company’s subsidiaries or affiliates, the Indemnitee, any
entity controlled by the Indemnitee, or any party adverse to the Company, within the preceding five (5) years. Notwithstanding the foregoing,
the term “Independent Legal Counsel” shall not include any person who, under applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the
Indemnitee’s right to indemnification or advancement of expenses under this Agreement, the Company’s Articles, applicable
law or otherwise.

 

(e)   The
term “Proceeding” shall mean any threatened, pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, or other proceeding (including, without limitation, an appeal therefrom), formal or informal, whether brought in the name of
the Company or otherwise, whether of a civil, criminal, administrative or investigative nature, and whether by, in or involving a court
or an administrative, other governmental or private entity or body (including, without limitation, an investigation by the Company or
its Board of Directors), by reason of (i) the fact that the Indemnitee is or was a director/an executive officer of the Company, or is
or was serving at the request of the Company as an agent of another enterprise, whether or not the Indemnitee is serving in such capacity
at the time any liability or expense is incurred for which indemnification or reimbursement is to be provided under this Agreement, (ii)
any actual or alleged act or omission or neglect or breach of duty, including, without limitation, any actual or alleged error or misstatement
or misleading statement, which the Indemnitee commits or suffers while acting in any such capacity, or (iii) the Indemnitee attempting
to establish or establishing a right to indemnification or advancement of expenses pursuant to this Agreement, the Company’s Articles,
applicable law or otherwise.

 

    -2-

     

    

 

(f)   The
phrase “serving at the request of the Company as an agent of another enterprise” or any similar terminology shall mean,
unless the context otherwise requires, serving at the request of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign or domestic.
The phrase “serving at the request of the Company” shall include, without limitation, any service as a director/an executive
officer of the Company which imposes duties on, or involves services by, such director/executive officer with respect to the Company or
any of the Company’s subsidiaries, affiliates, employee benefit or welfare plans, such plan’s participants or beneficiaries
or any other enterprise, foreign or domestic. In the event that the Indemnitee shall be a director, officer, employee or agent of another
corporation, partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign
or domestic, 50% or more of the ordinary shares, combined voting power or total equity interest of which is owned by the Company or any
subsidiary or affiliate thereof, then it shall be presumed conclusively that the Indemnitee is so acting at the request of the Company.

 

2.   Services
by the Indemnitee. [For a director: The Indemnitee agrees to serve as a director of the Company under the terms of the Indemnitee’s
agreement with the Company for so long as the Indemnitee is duly elected or appointed or until such time as the Indemnitee tenders a resignation
in writing or is removed as a director; provided, however, that the Indemnitee may at any time and for any reason resign from such position
(subject to any other contractual obligation or other obligation imposed by operation of law).][For an executive officer: The Indemnitee
agrees to serve as an executive officer of the Company under the terms of the Indemnitee’s agreement with the Company until such
time as the Indemnitee’s employment is terminated for any reason.]

 

3.   Proceedings
By or In the Right of the Company. The Company shall indemnify the Indemnitee if the Indemnitee is a party to or threatened to be
made a party to or is otherwise involved in any Proceeding by or in the right of the Company to procure a judgment in its favor by reason
of the fact that the Indemnitee is or was a director/an executive officer of the Company, or is or was serving at the request of the Company
as an agent of another enterprise, against all Expenses, judgments, fines, interest or penalties, and excise taxes assessed with respect
to any employee benefit or welfare plan, which are actually and reasonably incurred by the Indemnitee in connection with the defense or
settlement of such a Proceeding, to the fullest extent permitted by applicable law.

 

4.   Proceeding
Other Than a Proceeding By or In the Right of the Company. The Company shall indemnify the Indemnitee if the Indemnitee is a party
to or threatened to be made a party to or is otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Company),
by reason of the fact that the Indemnitee is or was a director/an executive officer of the Company, or is or was serving at the request
of the Company as an agent of another enterprise, against all Expenses, judgments, fines, interest or penalties, and excise taxes assessed
with respect to any employee benefit or welfare plan, which are actually and reasonably incurred by the Indemnitee in connection with
such a Proceeding, to the fullest extent permitted by applicable law; provided, however, that any settlement of a Proceeding must be approved
in advance in writing by the Company (which approval shall not be unreasonably withheld).

 

    -3-

     

    

 

5.   Indemnification
for Costs, Charges and Expenses of Witness or Successful Party. Notwithstanding any other provision of this Agreement (except as set
forth in subparagraph 9(a) hereof), and without a requirement for determination as required by Paragraph 8 hereof, to the extent that
the Indemnitee (a) has prepared to serve or has served as a witness in any Proceeding in any way relating to (i) the Company or any of
the Company’s subsidiaries, affiliates, employee benefit or welfare plans or such plan’s participants or beneficiaries or
(ii) anything done or not done by the Indemnitee as a director/an executive officer of the Company or in connection with serving at the
request of the Company as an agent of another enterprise, or (b) has been successful in defense of any Proceeding or in defense of any
claim, issue or matter therein, on the merits or otherwise, including the dismissal of a Proceeding without prejudice or the settlement
of a Proceeding without an admission of liability, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred
by the Indemnitee in connection therewith to the fullest extent permitted by applicable law.

 

6.   Partial
Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion
of the Expenses, judgments, fines, interest or penalties, or excise taxes assessed with respect to any employee benefit or welfare plan,
which are actually and reasonably incurred by the Indemnitee in the investigation, defense, appeal or settlement of any Proceeding, but
not, however, for the total amount of the Indemnitee’s Expenses, judgments, fines, interest or penalties, or excise taxes assessed
with respect to any employee benefit or welfare plan, then the Company shall nevertheless indemnify the Indemnitee for the portion of
such Expenses, judgments, fines, interest penalties or excise taxes to which the Indemnitee is entitled.

 

7.   Advancement
of Expenses. The Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly by the Company in advance of the final
disposition of the Proceeding at the written request of the Indemnitee to the fullest extent permitted by applicable law; provided, however,
that the Indemnitee shall set forth in such request reasonable evidence that such Expenses have been incurred by the Indemnitee in connection
with such Proceeding, a statement that such Expenses do not relate to any matter described in subparagraph 9(a) of this Agreement, and
an undertaking in writing to repay any advances if it is ultimately determined as provided in subparagraph 8(b) of this Agreement that
the Indemnitee is not entitled to indemnification under this Agreement.

 

8.   Indemnification
Procedure; Determination of Right to Indemnification.

 

(a)   Promptly
after receipt by the Indemnitee of notice of the commencement of any Proceeding, the Indemnitee shall, if a claim for indemnification
or advancement of Expenses in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement
thereof in writing. The omission to so notify the Company will not relieve the Company from any liability which the Company may have to
the Indemnitee under this Agreement unless the Company shall have lost significant substantive or procedural rights with respect to the
defense of any Proceeding as a result of such omission to so notify.

 

(b)   The
Indemnitee shall be conclusively presumed to have met the relevant standards of conduct, if any, as defined by applicable law, for indemnification
pursuant to this Agreement and shall be absolutely entitled to such indemnification, unless a determination is made that the Indemnitee
has not met such standards by (i) the Board of Directors by a majority vote of a quorum thereof consisting of Disinterested Directors,
(ii) the shareholders of the Company by majority vote of a quorum thereof consisting of shareholders who are not parties to the Proceeding
due to which a claim for indemnification is made under this Agreement, (iii) Independent Legal Counsel as set forth in a written opinion
(it being understood that such Independent Legal Counsel shall make such determination only if the quorum of Disinterested Directors referred
to in clause (i) of this subparagraph 8(b) is not obtainable or if the Board of Directors of the Company by a majority vote of a quorum
thereof consisting of Disinterested Directors so directs), or (iv) a court of competent jurisdiction; provided, however, that if a Change
of Control shall have occurred and the Indemnitee so requests in writing, such determination shall be made only by a court of competent
jurisdiction.

 

    -4-

     

    

 

(c)   If
a claim for indemnification or advancement of Expenses under this Agreement is not paid by the Company within thirty (30) days after receipt
by the Company of written notice thereof, the rights provided by this Agreement shall be enforceable by the Indemnitee in any court of
competent jurisdiction. Such judicial proceeding shall be made de novo. The burden of proving that indemnification or advances are not
appropriate shall be on the Company. Neither the failure of the directors or shareholders of the Company or Independent Legal Counsel
to have made a determination prior to the commencement of such action that indemnification or advancement of Expenses is proper in the
circumstances because the Indemnitee has met the applicable standard of conduct, if any, nor an actual determination by the directors
or shareholders of the Company or Independent Legal Counsel that the Indemnitee has not met the applicable standard of conduct shall be
a defense to an action by the Indemnitee or create a presumption for the purpose of such an action that the Indemnitee has not met the
applicable standard of conduct. The termination of any Proceeding by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself (i) create a presumption that the Indemnitee did not act in good faith and in a
manner which he reasonably believed to be in the best interests of the Company and/or its shareholders, and, with respect to any criminal
Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was unlawful or (ii) otherwise adversely affect the rights
of the Indemnitee to indemnification or advancement of Expenses under this Agreement, except as may be provided herein.

 

(d)   If
a court of competent jurisdiction shall determine that the Indemnitee is entitled to any indemnification or advancement of Expenses hereunder,
the Company shall pay all Expenses actually and reasonably incurred by the Indemnitee in connection with such adjudication (including,
but not limited to, any appellate proceedings).

 

(e)   With
respect to any Proceeding for which indemnification or advancement of Expenses is requested, the Company will be entitled to participate
therein at its own expense and, except as otherwise provided below, to the extent that it may wish, the Company may assume the defense
thereof, with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election to assume
the defense of a Proceeding, the Company will not be liable to the Indemnitee under this Agreement for any Expenses subsequently incurred
by the Indemnitee in connection with the defense thereof, other than as provided below. The Company shall not settle any Proceeding in
any manner which would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written consent. The Indemnitee
shall have the right to employ his own counsel in any Proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of its assumption of the defense of the Proceeding shall be at the expense of the Indemnitee, unless (i) the employment of
counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and the Indemnitee in the conduct of the defense of a Proceeding, or (iii) the Company shall
not in fact have employed counsel to assume the defense of a proceeding, in each of which cases the fees and expenses of the Indemnitee’s
counsel shall be advanced by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf
of the Company or as to which the Indemnitee has reasonably concluded that there may be a conflict of interest between the Company and
the Indemnitee.

 

9.   Limitations
on Indemnification. No payments pursuant to this Agreement shall be made by the Company:

 

(a)   To
indemnify or advance funds to the Indemnitee for Expenses with respect to (i) Proceedings initiated or brought voluntarily by the Indemnitee
and not by way of defense, except with respect to Proceedings brought to establish or enforce a right to indemnification under this Agreement
or any other statute or law or otherwise as required under applicable law or (ii) Expenses incurred by the Indemnitee in connection with
preparing to serve or serving, prior to a Change in Control, as a witness in cooperation with any party or entity who or which has threatened
or commenced any action or proceeding against the Company, or any director, officer, employee, trustee, agent, representative, subsidiary,
parent corporation or affiliate of the Company, but such indemnification or advancement of Expenses in each such case may be provided
by the Company if the Board of Directors finds it to be appropriate;

 

    -5-

     

    

 

(b)   To
indemnify the Indemnitee for any Expenses, judgments, fines, interest or penalties, or excise taxes assessed with respect to any employee
benefit or welfare plan, and sustained in any Proceeding for which payment is actually made to the Indemnitee under a valid and collectible
insurance policy, except in respect of any excess beyond the amount of payment under such insurance;

 

(c)   To
indemnify the Indemnitee for any Expenses, judgments, fines, expenses or penalties sustained in any Proceeding for an accounting of profits
made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Act or
similar provisions of any foreign or United States federal, state or local statute or regulation;

 

(d)   To
indemnify the Indemnitee for any Expenses, judgments, fines, interest or penalties, or excise taxes assessed with respect to any employee
benefit or welfare plan, for which the Indemnitee is indemnified by the Company otherwise than pursuant to this Agreement;

 

(e)   To
indemnify the Indemnitee for any Expenses (including without limitation any Expenses relating to a Proceeding attempting to enforce this
Agreement), judgments, fines, interest or penalties, or excise taxes assessed with respect to any employee benefit or welfare plan, on
account of the Indemnitee’s conduct if such conduct shall be finally adjudged to have been knowingly fraudulent, deliberately dishonest
or willful misconduct, including, without limitation, breach of the duty of loyalty; or

 

(f)   If
a court of competent jurisdiction finally determines that any indemnification hereunder is unlawful. In this respect, the Company and
the Indemnitee have been advised that the U.S. Securities and Exchange Commission takes the position that indemnification for liabilities
arising under securities laws is against public policy and is, therefore, unenforceable.

 

10.   Continuation
of Indemnification. All agreements and obligations of the Company contained herein shall continue during the period that the Indemnitee
is a director/an executive officer of the Company (or is or was serving at the request of the Company as an agent of another enterprise,
foreign or domestic) and shall continue thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason of
the fact that the Indemnitee was a director/an executive officer of the Company or serving in any other capacity referred to in this Paragraph
10.

 

11.   Indemnification
Hereunder Not Exclusive. The indemnification provided by this Agreement shall not be deemed to be exclusive of any other rights to
which the Indemnitee may be entitled under the Company’s Articles, any agreement, vote of shareholders or vote of Disinterested
Directors, provisions of applicable law, or otherwise, both as to action or omission in the Indemnitee’s official capacity and as
to action or omission in another capacity on behalf of the Company while holding such office.

 

    -6-

     

    

 

12.   Successors
and Assigns.

 

(a)   This
Agreement shall be binding upon the Indemnitee, and shall inure to the benefit of, the Indemnitee and the Indemnitee’s heirs, executors,
administrators and assigns, whether or not the Indemnitee has ceased to be a director/an executive officer, and the Company and its successors
and assigns. Upon the sale of all or substantially all of the business, assets or share capital of the Company to, or upon the merger
of the Company into or with, any corporation, partnership, joint venture, trust or other person, this Agreement shall inure to the benefit
of and be binding upon both the Indemnitee and such purchaser or successor person. Subject to the foregoing, this Agreement may not be
assigned by either party without the prior written consent of the other party hereto.

 

(b)   If
the Indemnitee is deceased and is entitled to indemnification under any provision of this Agreement, the Company shall indemnify the Indemnitee’s
estate and the Indemnitee’s spouse, heirs, executors, administrators and assigns against, and the Company shall, and does hereby
agree to assume, any and all Expenses actually and reasonably incurred by or for the Indemnitee or the Indemnitee’s estate, in connection
with the investigation, defense, appeal or settlement of any Proceeding. Further, when requested in writing by the spouse of the Indemnitee,
and/or the Indemnitee’s heirs, executors, administrators and assigns, the Company shall provide appropriate evidence of the Company’s
agreement set out herein to indemnify the Indemnitee against and to itself assume such Expenses.

 

13.   Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable
the Company effectively to bring suit to enforce such rights.

 

14.   Severability.
Each and every paragraph, sentence, term and provision of this Agreement is separate and distinct so that if any paragraph, sentence,
term or provision thereof shall be held to be invalid, unlawful or unenforceable for any reason, such invalidity, unlawfulness or unenforceability
shall not affect the validity, unlawfulness or enforceability of any other paragraph, sentence, term or provision hereof. To the extent
required, any paragraph, sentence, term or provision of this Agreement may be modified by a court of competent jurisdiction to preserve
its validity and to provide the Indemnitee with the broadest possible indemnification permitted under applicable law. The Company’s
inability, pursuant to a court order or decision, to perform its obligations under this Agreement shall not constitute a breach of this
Agreement.

 

15.   Savings
Clause. If this Agreement or any paragraph, sentence, term or provision hereof is invalidated on any ground by any court of competent
jurisdiction, the Company shall nevertheless indemnify the Indemnitee as to any Expenses, judgments, fines, interest or penalties, or
excise taxes assessed with respect to any employee benefit or welfare plan, which are incurred with respect to any Proceeding to the fullest
extent permitted by any (a) applicable paragraph, sentence, term or provision of this Agreement that has not been invalidated or (b) applicable
law.

 

16.   Interpretation;
Governing Law. This Agreement shall be construed as a whole and in accordance with its fair meaning and any ambiguities shall not
be construed for or against either party. Headings are for convenience only and shall not be used in construing meaning. This Agreement
shall be governed and interpreted in accordance with [the laws of the State of New York] without regard to the conflict of laws principles
thereof.

 

17.   Amendments.
No amendment, waiver, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by the party
against whom enforcement is sought. The indemnification rights afforded to the Indemnitee hereby are contract rights and may not be diminished,
eliminated or otherwise affected by amendments to the Company’s Articles, or by other agreements, including directors’ and
officers’ liability insurance policies, of the Company.

 

18.   Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each party and delivered to the other.

 

19.   Notices.
Any notice required to be given under this Agreement shall be directed to the Chief Financial Officer of the Company at [ADDRESS] People’s
Republic of China, and to the Indemnitee at ________________________________ or to such other address as either shall designate to the
other in writing.

 

[The remainder of this page is intentionally
left blank.]

 

    -7-

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Indemnification Agreement as of the date first written above.

 

	INDEMNITEE	 
	 	 
	 	 
	Name:  	                    	 
	 	 

 

	Xiao-I Corporation	 
	 	 
	By:	                  	 
	 	 
	Name:  	 	 
	Title:	 	 

 

 

-8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]