Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 48

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 48
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 Company will obtain stockholder approval
of any amendment to the Amended 2023 Plan if such approval is necessary to comply with any tax or regulatory requirement applicable to
the Amended 2023 Plan (including, without limitation, as necessary to comply with any rules or requirements of any securities exchange
or inter-dealer quotation system on which the shares may be listed or quoted). No amendment, suspension or termination of the Amended
2023 Plan can, without the consent of the participant, materially and adversely affect the rights of any participant under his or her
outstanding Award(s). No award may be granted pursuant to the Amended 2023 Plan after the tenth anniversary of the date on which our board
of directors adopted the 2023 Plan.

Duration of Amended 2023 Plan. The Amended
2023 Plan will expire by its terms on November 20, 2033.

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Federal Income Tax Considerations

The material federal income tax consequences of
the issuance and exercise of stock options and other awards under the Amended 2023 Plan, based on the current provisions of the Code
and regulations, are as follows. Changes to these laws could alter the tax consequences described below. This summary assumes that all
awards granted under the Amended 2023 Plan are exempt from or comply with, the rules under Section 409A of the Code related to nonqualified
deferred compensation.

| Incentive Stock Options: |     | Incentive stock options are intended to qualify for treatment under Section 422 of the Code. An incentive stock option does not result in taxable income to the optionee or deduction to us at the time it is granted or exercised, provided that no disposition is made by the optionee of the shares acquired pursuant to the option within two years after the date of grant of the option nor within one year after the date of issuance of shares to the optionee (referred to as the “ISO holding period”). However, the difference between the fair market value of the shares on the date of exercise and the option price will be an item of tax preference includible in “alternative minimum taxable income” of the optionee. Upon disposition of the shares after the expiration of the ISO holding period, the optionee will generally recognize long term capital gain or loss based on the difference between the disposition proceeds and the option price paid for the shares. If the shares are disposed of prior to the expiration of the ISO holding period, the optionee