Exhibit 10.7


 


ANEBULO
PHARMACEUTICALS, INC.


 


2020
STOCK INCENTIVE PLAN


 


	1.	Purpose.


 


The
purpose of this 2020 Stock Incentive Plan (the “Plan”) of Anebulo Pharmaceuticals, Inc., a Delaware corporation
(the “Company”), is to advance the interests of the Company’s stockholders by enhancing the Company’s
ability to attract, retain and motivate persons who are expected to make important contributions to the Company and by providing
such persons with equity ownership opportunities and performance-based incentives that are intended to better align the interests
of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company”
shall include any of the Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or
(f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”)
and any other business venture (including, without limitation, joint venture or limited liability company) in which the Company
has a controlling interest, as determined by the Board of Directors of the Company (the “Board”).


 


	2.	Eligibility.


 


All
of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted options, restricted
stock, restricted stock units (“RSUs”) and other stock-based awards (each, an “Award”) under
the Plan. Each person who receives an Award under the Plan is deemed a “Participant”.


 


	3.	Administration
    and Delegation.


 


(a)
Administration by Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant
Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem
advisable. The Board may construe and interpret the terms of the Plan and any Award agreements entered into under the Plan. The
Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to
the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency.
All decisions by the Board shall be made in the Board’s sole discretion and shall be final and binding on all persons having
or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the
Board shall be liable for any action or determination relating to or under the Plan made in good faith.


 


(b)
Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its powers under
the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan
to the “Board” shall mean the Board or a Committee of the Board or the officers referred to in Section 3(c)
to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee or officers. The
Board may abolish any Committee at any time and re-vest in itself any previously delegated authority.


 


(c)
Delegation to Officers. To the extent permitted by applicable law, the Board may delegate to one or more officers of the
Company the power to grant Awards (subject to any limitations under the Plan) to employees or officers of the Company or any of
its present or future subsidiary corporations and to exercise such other powers under the Plan as the Board may determine, provided
that the Board shall fix the terms of the Awards to be granted by such officers (including the exercise price of such Awards,
which may include a formula by which the exercise price will be determined) and the maximum number of shares subject to Awards
that the officers may grant; provided further, however, that no officer shall be authorized to grant Awards to any “executive
officer” of the Company (as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act). The Board may
rescind any such delegation at any time and re-vest in itself any previously delegated authority.


 




    	 



    	 



    

 


	4.	Stock
    Available for Awards.


 


(a)
Number of Shares. Subject to adjustment under Section 8 hereof, Awards may be made under the Plan covering up to 275,000
shares of common stock of the Company (the “Common Stock”). If any Award expires, lapses, or is terminated,
surrendered or canceled without having been fully exercised or is forfeited in whole or in part (including as the result of shares
of Common Stock subject to such Award being repurchased by the Company at or below the original issuance price), in any case in
a manner that results in any shares of Common Stock covered by such Award not being issued or being so reacquired by the Company,
the unused Common Stock covered by such Award shall again be available for the grant of Awards under the Plan. Further, shares
of Common Stock delivered (whether by actual delivery or attestation) or tendered to the Company by a Participant to satisfy the
applicable exercise or purchase price of an Award and/or to satisfy any applicable tax withholding obligation (including shares
retained by the Company from the Award being exercised or purchased and/or creating the tax obligation) shall be added to the
number of shares of Common Stock available for the grant of Awards under the Plan. However, in the case of Incentive Stock Options
(as hereinafter defined), the foregoing provisions shall be subject to any limitations under the Code. Shares of Common Stock
issued under the Plan may consist in whole or in part of authorized but unissued shares, shares purchased on the open market,
or treasury shares. At no time while there is any Option (as defined below) outstanding and held by a Participant who was a resident
of the State of California on the date of grant of such Option, shall the total number of shares of Common Stock issuable upon
exercise of all outstanding options and the total number of shares provided for under any stock bonus or similar plan or agreement
of the Company exceed the applicable percentage as calculated in accordance with the conditions and exclusions of Section 260.140.45
of the California Code of Regulations (the “California Regulations”), based on the shares of the Company which
are outstanding at the time the calculation is made.


 


(b)
Substitute Awards. In connection with a merger or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Awards in substitution for any options or other stock or stock-based
awards granted prior to such merger or consolidation by such entity or an affiliate thereof. Substitute Awards may be granted
on such terms as the Board deems appropriate in the circumstances, notwithstanding any limitations on Awards contained in the
Plan. Substitute Awards shall not count against the overall share limit set forth in Section 4(a) hereof, except as may be required
by reason of Section 422 and related provisions of the Code.


 


	5.	Stock
    Options.


 


(a)
General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine the
number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations
applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable. An Option that is not intended to be an Incentive Stock Option (as hereinafter defined) shall
be designated a “Nonstatutory Stock Option”.


 




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(b)
Incentive Stock Options. An Option that the Board intends to be an “incentive stock option” as defined in Section
422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of the Company, any of the
Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Code, and any
other entities the employees of which are eligible to receive Incentive Stock Options under the Code. All Options intended to
qualify as Incentive Stock Options shall be subject to and shall be construed consistently with the requirements of Section 422
of the Code, and without limiting generality of the foregoing, such Options shall be deemed to include terms that comply with
the eligibility standards described section 422(b) of the Code. Subject to the remaining provisions of this Section 5(b), if an
Option intended to qualify as an Incentive Stock Option does not so qualify, the Board may, at its discretion, amend the Plan
and Award with respect to such Option so that such Option qualifies as an Incentive Stock Option. To the extent that the aggregate
Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by any Participant during any calendar year (under all plans of the Company and any affiliates) exceeds $100,000
(or such other limit established in the Code) or otherwise does not comply with the rules governing Incentive Stock Options, the
Options or portions thereof that exceed such limit (according to the order in which they were granted) or otherwise do not comply
with the rules will be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Award.
Neither the Company nor the Board shall have any liability to a Participant, or any other party, (i) if an Option (or any part
thereof) which is intended to qualify as an Incentive Stock Option fails to qualify as such or (ii) for any action or omission
by the Company or Board that causes an Option not to qualify as an Incentive Stock Option, including without limitation the conversion
of an Incentive Stock Option to a Nonstatutory Stock Option or the grant of an Option intended as an Incentive Stock Option that
fails to satisfy the requirements under the Code applicable to an Incentive Stock Option.


 


(c)
Exercise Price. The Board shall establish the exercise price of each Option and specify the exercise price in the applicable
option agreement. The exercise price shall be not less than 100% of the Fair Market Value on the date the Option is granted. In
the case of an Incentive Stock Option granted to an employee who, at the time of grant of the Option, owns (or is treated as owning
under Section 424 of the Code) stock representing more than 10% of the voting power of all classes of stock of the Company (or
a “parent corporation” or “subsidiary corporation” thereof within the meaning of Sections 424(e) or 424(f)
of the Code, respectively), the per share exercise price shall be no less than 110% of the Fair Market Value on the date the Option
is granted.


 


(d)
Duration of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board
may specify in the applicable option agreement, provided that the term of any Option shall not exceed ten years. In the
case of an Incentive Stock Option granted to an employee who, at the time of grant of the Option, owns (or is treated as owning
under Section 424 of the Code) stock representing more than 10% of the voting power of all classes of stock of the Company (or
a “parent corporation” or “subsidiary corporation” thereof within the meaning of Sections 424(e) or 424(f)
of the Code, respectively), the term of the Option shall not exceed five years.


 


(e)
Exercise of Option; Notification of Disposition. Options may be exercised by delivery to the Company of a written notice
of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Board together
with payment in full as specified in Section 5(f) for the number of shares for which the Option is exercised. Unless otherwise
determined by the Board, an Option may not be exercised for a fraction of a share of Common Stock. Shares of Common Stock subject
to the Option will be delivered by the Company as soon as practicable following exercise. If an Option is designated as an Incentive
Stock Option, the Participant shall give prompt notice to the Company of any disposition or other transfer of any shares of Common
Stock acquired from the Option if such disposition or transfer is made (i) within two years from the grant date with respect to
such Option or (ii) within one year after the transfer of such shares to the Participant (other than any such disposition made
in connection with a Reorganization Event). Such notice shall specify the date of such disposition or other transfer and the amount
realized, in cash, other property, assumption of indebtedness or other consideration, by the Participant in such disposition or
other transfer.


 




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(f)
Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for as
follows:


 


(i)
in cash or by check, payable to the order of the Company;


 


(ii)
when the Common Stock is registered under the Exchange Act, except as may otherwise be provided in the applicable option agreement,
by (A) delivery of an irrevocable and unconditional undertaking by a creditworthy broker acceptable to the Company to deliver
promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (B) delivery by the Participant
to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker acceptable to the Company to deliver
promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding;


 


(iii)
when the Common Stock is registered under the Exchange Act and to the extent provided for in the applicable option agreement or
approved by the Board, in its sole discretion, by delivery (either by actual delivery or attestation) of shares of Common Stock
owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Board (“Fair
Market Value”), provided (A) such method of payment is then permitted under applicable law, (B) such Common Stock,
if acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be established
by the Board in its discretion and (C) such Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or
other similar requirements;


 


(iv)
to the extent permitted by applicable law and provided for in the applicable option agreement or approved by the Board, in its
sole discretion, by (A) delivery of a promissory note of the Participant to the Company on terms determined by the Board, or (B)
payment of such other lawful consideration as the Board may determine; or


 


(v)
by any combination of the above permitted forms of payment.


 


(g)
Early Exercise of Options. The Board may provide in the terms of an option agreement that the Participant may exercise
an Option in whole or in part prior to the full vesting of the Option in exchange for unvested shares of Restricted Stock (as
defined below) with respect to any unvested portion of the Option so exercised. Shares of Restricted Stock acquired upon the exercise
of any unvested portion of an Option shall be subject to such terms and conditions as the Board shall determine.


 


	6.	Restricted
    Stock; Restricted Stock Units.


 


(a)
General. The Board may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted Stock”),
subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price
(or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the
Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by
the Board for such Award. Instead of granting Awards for Restricted Stock, the Board may grant Awards entitling the recipient
to receive shares of Common Stock or cash to be delivered at the time such Award vests (“Restricted Stock Units”)
(Restricted Stock and Restricted Stock Units are each referred to herein as a “Restricted Stock Award”).


 


(b)
Terms and Conditions for All Restricted Stock Awards. The Board shall determine and set forth in the applicable award agreement
the terms and conditions of a Restricted Stock Award, including the conditions for vesting and repurchase (or forfeiture) and
the issue price, if any.


 




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(c)
Additional Provisions Relating to Restricted Stock.


 


(i)
Dividends. Participants holding shares of Restricted Stock will be entitled to all ordinary cash dividends paid with respect
to such shares to the extent such dividends have a record date that is on or after the date on which the Participant to whom such
Restricted Stock is granted becomes the record holder of such Restricted Stock, unless otherwise provided by the Board. Unless
otherwise provided by the Board, if any dividends or distributions are paid in shares, or consist of a dividend or distribution
to holders of Common Stock other than an ordinary cash dividend, the shares or other property will be subject to the same restrictions
on transferability and forfeitability as the shares of Restricted Stock with respect to which they were paid. Each dividend payment
will be made as provided in the applicable award agreement, but no later than the end of the calendar year in which the dividends
are paid to shareholders of that class of stock or, if later, the 15th day of the third month following the later of (A) the date
the dividends are paid to shareholders of that class of stock and (B) the date the dividends are no longer subject to forfeiture.


 


(ii)
Stock Certificates. The Company may require that any stock certificates issued in respect of shares of Restricted Stock
shall be deposited in escrow by the Participant, together with a stock power endorsed in blank, with the Company (or its designee).
At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer
subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined
by the Board, by a Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s
death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, “Designated
Beneficiary” shall mean the Participant’s estate.


 


(d)
Additional Provisions Relating to Restricted Stock Units.


 


(i)
Settlement. Upon the vesting of a Restricted Stock Unit, the Participant shall be entitled to receive from the Company
one share of Common Stock or an amount of cash or other property equal to the Fair Market Value of one share of Common Stock on
the settlement date, as the Board shall determine and as provided in the applicable award agreement. The Board may provide that
settlement of Restricted Stock Units shall occur upon or as soon as reasonably practicable after the vesting of the Restricted
Stock Units or shall instead be deferred, on a mandatory basis or at the election of the Participant, in a manner that complies
with Section 409A of the Code.


 


(ii)
Voting Rights. A Participant shall have no voting rights with respect to any Restricted Stock Units unless and until shares
are delivered in settlement thereof.


 


(iii)
Dividend Equivalents. To the extent provided by the Board, a grant of Restricted Stock Units may provide a Participant
with the right to receive Dividend Equivalents. Dividend Equivalents may be paid currently or credited to an account for the Participant,
may be settled in cash and/or shares of Common Stock and may be subject to the same restrictions on transfer and forfeitability
as the Restricted Stock Units with respect to which the Dividend Equivalents are paid, as determined by the Board, subject, in
each case, to such terms and conditions as the Board shall establish and set forth in the applicable award agreement. “Dividend
Equivalents” means a right granted to a Participant to receive the equivalent value (in cash or shares of Common Stock)
of dividends paid on shares of Common Stock.


 


	7.	Other
    Stock-Based Awards.


 


Other
Awards of shares of Common Stock, and other Awards that are valued in whole or in part by reference to, or are otherwise based
on, shares of Common Stock or other property, may be granted hereunder to Participants (“Other Stock-Based Awards”),
including without limitation stock appreciation rights (“SARs”) and Awards entitling recipients to receive
shares of Common Stock to be delivered in the future. Such Other Stock-Based Awards shall also be available as a form of payment
in the settlement of other Awards granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise
entitled. Other Stock-Based Awards may be paid in shares of Common Stock or cash, as the Board shall determine. Subject to the
provisions of the Plan, the Board shall determine the terms and conditions of each Other Stock-Based Award, including any purchase
price, transfer restrictions, vesting conditions and other terms and conditions applicable thereto.


 




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	8.	Adjustments
    for Changes in Common Stock and Certain Other Events.


 


(a)
In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification
of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders of Common Stock
other than an ordinary cash dividend, (i) the number and class of securities available under this Plan, (ii) the number and class
of securities and exercise price per share of each outstanding Option, (iii) the number of shares subject to and the repurchase
price per share subject to each outstanding Restricted Stock Award, and (iv) the terms of each other outstanding Award shall be
equitably adjusted by the Company (or substituted Awards may be made, if applicable) in the manner determined by the Board; provided
that, unless otherwise determined by the Board, such changes to the Options shall comply with section 1.424-1 of the Treasury
Regulations. Without limiting the generality of the foregoing, in the event the Company effects a split of the Common Stock by
means of a stock dividend and the exercise price of and the number of shares subject to an outstanding Option are adjusted as
of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an optionee who exercises
an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution
date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise, notwithstanding the fact
that such shares were not outstanding as of the close of business on the record date for such stock dividend.


 


(b)
Reorganization Events.


 


(i)
Definition. A “Reorganization Event” means the consummation of: (A) the dissolution or liquidation of
the Company, (B) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person
or entity, (C) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting
power immediately prior to such transaction do not own a majority of the outstanding voting power of the surviving or resulting
entity (or its ultimate parent, if applicable), (D) the acquisition of all or a majority of the outstanding voting stock of the
Company in a single transaction or a series of a related transactions by a person or group of persons, or (E) any other acquisition
of the business of the Company, as determined by the Board; provided, however, that the first firm commitment underwritten
public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer
and sale by the Company of its equity securities, as a result of or following which the Common Stock shall be public, any subsequent
public offering or another capital raising event, or a merger effected solely to change the Company’s domicile shall not
constitute a “Reorganization Event.”


 




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(ii)
Consequences of a Reorganization Event on Awards Other than Restricted Stock Awards. In connection with a Reorganization
Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding Awards other
than Restricted Stock Awards on such terms as the Board determines: (A) provide that Awards shall be assumed, or substantially
equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof); provided that,
unless otherwise determined by the Board, such assumption or substitution of the Options shall comply with section 1.424-1 of
the Treasury Regulations, (B) upon written notice to a Participant, provide that the Participant’s unexercised Awards will
terminate immediately prior to the consummation of such Reorganization Event unless exercised by the Participant within a specified
period following the date of such notice, (C) provide that outstanding Awards shall become exercisable, realizable, or deliverable,
or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization Event, (D) in the
event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash
payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for
a cash payment to a Participant equal to the excess, if any, of (I) the Acquisition Price times the number of shares of Common
Stock subject to the Participant’s Awards (to the extent the exercise price does not exceed the Acquisition Price) over
(II) the aggregate exercise price of all such outstanding Awards and any applicable tax withholdings, in exchange for the termination
of such Awards, (E) provide that, in connection with a liquidation or dissolution of the Company, Awards shall convert into the
right to receive liquidation proceeds (if applicable, net of the exercise price thereof and any applicable tax withholdings) and
(F) any combination of the foregoing. In taking any of the actions permitted under this Section 8(b), the Board shall not be obligated
by the Plan to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically.


 


For
purposes of clause (A) above, an Option shall be considered assumed if, following consummation of the Reorganization Event, the
Option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation
of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization
Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization
Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of
the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Reorganization
Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the
consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of Options
to consist solely of common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as
determined by the Board) to the per share consideration received by holders of outstanding shares of Common Stock as a result
of the Reorganization Event.


 


(iii)
Consequences of a Reorganization Event on Restricted Stock Awards. Upon the occurrence of a Reorganization Event other
than a liquidation or dissolution of the Company, the repurchase and other rights of the Company under each outstanding Restricted
Stock Award shall inure to the benefit of the Company’s successor and shall, unless the Board determines otherwise, apply
to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization
Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. Upon
the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent specifically
provided to the contrary in the instrument evidencing any Restricted Stock Award or any other agreement between a Participant
and the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall automatically be deemed
terminated or satisfied.


 


	9.	General
    Provisions Applicable to Awards.


 


(a)
Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold,
assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation
of law, except by will or the laws of descent and distribution or, other than in the case of an Incentive Stock Option, pursuant
to a qualified domestic relations order, and, during the life of the Participant, shall be exercisable only by the Participant.
References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.


 




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(b)
Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine.
Each Award may contain terms and conditions in addition to those set forth in the Plan.


 


(c)
Board Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation
to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly.


 


(d)
Termination of Status. The Board shall determine the effect on an Award of the disability, death, retirement, termination
or other cessation of employment, authorized leave of absence or other change in the employment or other status of a Participant
and the extent to which, and the period during which, the Participant, or the Participant’s legal representative, conservator,
guardian or Designated Beneficiary, may exercise rights under the Award.


 


(e)
Withholding. The Company shall not be obligated to deliver certificates, release from forfeiture, otherwise recognize a
Participant’s unrestricted ownership in an Award or the cash or property proceeds therefrom, until the Company satisfies
all applicable federal, state, and local or other income and employment tax withholding obligations. In its sole discretion, the
Company may satisfy such withholding obligations by any of the following means or by a combination of such means: (i) causing
the Participant to tender to the Company cash payment; (ii) withholding cash from an Award settled in cash; (iii) withholding
from amounts otherwise payable by the Company to the Participant, including but not limited to additional withholding on the Participant’s
salary or wages, or from proceeds from the sale of Common Stock issued pursuant to an Award; (iv) delivery of shares of Common
Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value; provided, however,
except as otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy such tax obligations
cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income), and provided,
further, shares surrendered to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirements; or (v) by such other method as determined by the Board.


 


(f)
Amendment of Award.


 


(i)
The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award
of the same or a different type, changing the date of exercise or settlement, and converting an Incentive Stock Option to a Nonstatutory
Stock Option. The Participant’s consent to such action shall be required unless (A) the Board determines that the action,
taking into account any related action, would not materially and adversely affect the Participant’s rights under the Plan,
(B) the change is permitted under Section 8 hereof, or (C) the change is to ensure that an Option intended to qualify as an Incentive
Stock Option qualifies as such.


 


(ii)
The Board may, without stockholder approval, amend any outstanding Award granted under the Plan to provide an exercise price per
share that is lower than the then-current exercise price per share of such outstanding Award. The Board may also, without stockholder
approval, cancel any outstanding award (whether or not granted under the Plan) and grant in substitution therefor new Awards under
the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the
then-current exercise price per share of the cancelled award.


 




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(g)
Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the
Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been
met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and
any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the
Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is determined by the Board to be necessary to the lawful issuance and sale of any securities hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such shares at to which such requisite authority shall
not have been obtained.


 


(h)
Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in part,
free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be.


 


	10.	Miscellaneous.


 


(a)
No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of
an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company.
The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan, except as expressly provided in the applicable Award.


 


(b)
No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall
have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming
the record holder of such shares. Notwithstanding any other provision of the Plan, unless otherwise determined by the Board or
required by any applicable laws, the Company shall not be required to deliver to any Participant certificates evidencing shares
of Common Stock issued in connection with any Award and instead such shares of Common Stock may be recorded in the books of the
Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on any stock certificates
issued under the Plan deemed necessary or appropriate by the Board in order to comply with applicable laws.


 


(c)
Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the Board. No Awards
shall be granted under the Plan after the expiration of 10 years from the earlier of (i) the date on which the Plan was adopted
by the Board or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted may extend
beyond that date.


 


(d)
Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time; provided that
if at any time the approval of a Company stockholder is required as to any modification or amendment under Section 422 of
the Code or any successor provision with respect to Incentive Stock Options, the Board may not effect such modification or amendment
without the consent of the affected Participant. Unless otherwise specified in the amendment, any amendment to the Plan adopted
in accordance with this Section 10(d) shall apply to, and be binding on the holders of, all Awards outstanding under the Plan
at the time the amendment is adopted, provided the Board determines that such amendment does not materially and adversely
affect the rights of Participants under the Plan.


 


(e)
Authorization of Sub-Plans. The Board may from time to time establish one or more sub-plans under the Plan for purposes
of satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by
adopting supplements to this Plan containing (i) such limitations on the Board’s discretion under the Plan as the Board
deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board
shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement
shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any
supplement to Participants in any jurisdiction which is not the subject of such supplement.


 




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(f)
Compliance with Code Section 409A. Unless otherwise expressly provided for in an Award, the Plan and Award will be interpreted
to the greatest extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A of the
Code, and, to the extent not so exempt, in compliance with Section 409A of the Code. If the Board determines that any Award granted
hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Award will incorporate the terms and conditions
necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and to the extent an Award is silent on terms
necessary for compliance, such terms as deemed necessary by the Board in its sole discretion are hereby incorporated by reference
into the Award. Without limiting the generality of the foregoing, if shares of Common Stock are publicly traded, and if a Participant
holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee”
for purposes of Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation
from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued
or paid before the date that is six (6) months following the date of such Participant’s “separation from service”
or, if earlier, the date of the Participant’s death, unless such distribution or payment can be made in a manner that complies
with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six (6) month period
elapses, with the balance paid thereafter on the original schedule. The Company shall have no liability to a Participant, or any
other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant
or for any other action taken by the Board.


 


(g)
Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance
with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application
of the laws of a jurisdiction other than such state.


 


(h)
Data Privacy. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection,
use and transfer, in electronic or other form, of personal data as described in this paragraph by and among, as applicable, the
Company and its subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing the Participant’s
participation in the Plan. The Company and its subsidiaries and affiliates may hold certain personal information about a Participant,
including but not limited to, the Participant’s name, home address and telephone number, date of birth, social security
or insurance number or other identification number, salary, nationality, job title(s), any shares of stock held in the Company
or any of its subsidiaries and affiliates, details of all Awards, in each case, for the purpose of implementing, managing and
administering the Plan and Awards (the “Data”). The Company and its subsidiaries and affiliates may transfer
the Data amongst themselves as necessary for the purpose of implementation, administration and management of a Participant’s
participation in the Plan, and the Company and its subsidiaries and affiliates may each further transfer the Data to any third
parties assisting the Company in the implementation, administration and management of the Plan. These recipients may be located
in the Participant’s country, or elsewhere, and the Participant’s country may have different data privacy laws and
protections than the recipients’ country. Through acceptance of an Award, each Participant authorizes such recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering
and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required
to a broker or other third party with whom the Company or the Participant may elect to deposit any shares of Common Stock. The
Data related to a Participant will be held only as long as is necessary to implement, administer, and manage the Participant’s
participation in the Plan. A Participant may, at any time, view the Data held by the Company with respect to such Participant,
request additional information about the storage and processing of the Data with respect to such Participant, recommend any necessary
corrections to the Data with respect to the Participant or refuse or withdraw the consents herein in writing, in any case without
cost, by contacting his or her local human resources representative. The Company may cancel Participant’s ability to participate
in the Plan and, in the Board’s discretion, the Participant may forfeit any outstanding Awards if the Participant refuses
or withdraws his or her consents as described herein. For more information on the consequences of refusal to consent or withdrawal
of consent, Participants may contact their local human resources representative.


 


(i)
Restrictions on Shares; Claw-back Provisions. Shares of Common Stock acquired in respect of Awards shall be subject to
such terms and conditions as the Board shall determine, including, without limitation, restrictions on the transferability of
shares of Common Stock, the right of the Company to repurchase shares of Common Stock, the right of the Company to require that
shares of Common Stock be transferred in the event of certain transactions, tag-along rights, bring-along rights, redemption and
co-sale rights and voting requirements. Such terms and conditions may be additional to those contained in the Plan and may, as
determined by the Board, be contained in the applicable Award Agreement or in an exercise notice, stockholders’ agreement
or in such other agreement as the Board shall determine, in each case in a form determined by the Board. The issuance of such
shares of Common Stock shall be conditioned on the Participant’s consent to such terms and conditions and the Participant’s
entering into such agreement or agreements. All Awards (including any proceeds, gains or other economic benefit actually or constructively
received by Participant upon any receipt or exercise of any Award or upon the receipt or resale of any shares of Common Stock
underlying the Award) shall be subject to the provisions of any claw-back policy implemented by the Company, including, without
limitation, any claw-back policy adopted to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection
Act and any rules or regulations promulgated thereunder, to the extent set forth in such claw-back policy and/or in the applicable
Award Agreement.


 




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ANEBULO
PHARMACEUTICALS, INC.


 


2020
STOCK INCENTIVE PLAN


 


CALIFORNIA
SUPPLEMENT


 


Pursuant
to Section 10(e) of the Plan, the Board has adopted this supplement for purposes of satisfying the requirements of Section 25102(o)
of the California Law:


 


Any
Awards granted under the Plan to a Participant who is a resident of the State of California on the date of grant (a “California
Participant”) shall be subject to the following additional limitations, terms and conditions:


 


	1.	Additional
    Limitations on Options.


 


(a)
Minimum Vesting Rate. Except in the case of Options granted to California Participants who are officers, directors, managers,
consultants or advisors of the Company or its affiliates (which Options may become exercisable at whatever rate is determined
by the Board), Options granted to California Participants shall become exercisable at a rate of not less than 20% per year over
five years from the date of grant; provided, that, such Options may be subject to such reasonable forfeiture conditions
as the Board may choose to impose and which are not inconsistent with Section 260.140.41 of the California Regulations.


 


(b)
Minimum Exercise Price. The exercise price of Options granted to California Participants may not be less than 85% of the
Fair Market Value of the Common Stock on the date of grant in the case of a Nonstatutory Stock Option or less than 100% of the
Fair Market Value of the Common Stock on the date of grant in the case of an Incentive Stock Option; provided, however,
that if the California Participant is a person who owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or its parent or subsidiary corporations, the exercise price shall be not less than 110% of the
Fair Market Value of the Common Stock on the date of grant.


 


(c)
Maximum Duration of Options. No Options granted to California Participants shall have a term in excess of 10 years measured
from the Option grant date.


 


(d)
Minimum Exercise Period Following Termination. Unless a California Participant’s employment is terminated for cause
(as defined by applicable law, the terms of any contract of employment between the Company and such Participant, or in the instrument
evidencing the grant of such Participant’s Option), in the event of termination of employment of such Participant, such
Participant shall have the right to exercise an Option, to the extent that he or she was otherwise entitled to exercise such Option
on the date employment terminated, as follows: (i) at least six months from the date of termination, if termination was caused
by such Participant’s death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the
Code) and (ii) at least 30 days from the date of termination, if termination was caused other than by such Participant’s
death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code).


 


(e)
Limitation on Repurchase Rights. If an Option granted to a California Participant gives the Company the right to repurchase
shares of Common Stock issued pursuant to the Plan upon termination of employment of such Participant, the terms of such repurchase
right must comply with Section 260.140.41(k) of the California Regulations.


 




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	2.	Additional
    Limitations for Restricted Stock Awards.


 


(a)
Minimum Purchase Price. The purchase price for a Restricted Stock Award granted to a California Participant shall be not
less than 85% of the Fair Market Value of the Common Stock at the time such Participant is granted the right to purchase shares
under the Plan or at the time the purchase is consummated; provided, however, that if such Participant is a person who
owns stock possessing more than 10% of the total combined voting power or value of all classes of stock of the Company or its
parent or subsidiary corporations, the purchase price shall be not less than 100% of the Fair Market Value of the Common Stock
at the time such Participant is granted the right to purchase shares under the Plan or at the time the purchase is consummated.


 


(b)
Limitation of Repurchase Rights. If a Restricted Stock Award granted to a California Participant gives the Company the
right to repurchase shares of Common Stock issued pursuant to the Plan upon termination of employment of such Participant, the
terms of such repurchase right must comply with Section 260.140.42(h) of the California Regulations.


 


	3.	Additional
    Limitations for Other Stock-Based Awards.


 


The
terms of all Awards granted to a California Participant under Section 7 of the Plan shall comply, to the extent applicable, with
Section 260.140.41 or Section 260.140.42 of the California Regulations.


 


	4.	Additional
    Requirement to Provide Information to California Participants.


 


The
Company shall provide to each California Participant and to each California Participant who acquires Common Stock pursuant to
the Plan, not less frequently than annually, copies of annual financial statements (which need not be audited). The Company shall
not be required to provide such statements to key employees whose duties in connection with the Company assure their access to
equivalent information.


 


	5.	Additional
    Limitations on Timing of Awards.


 


No
Award granted to a California Participant shall become exercisable, vested or realizable, as applicable to such Award, unless
the Plan has been approved by the holders of a majority of the Company’s outstanding voting securities within 12 months
before or after the date the Plan was adopted by the Board.


 


	6.	Additional
    Limitations Relating to Definition of Fair Market Value.


 


For
purposes of Section 1(b) and 2(a) of this supplement, “Fair Market Value” shall be determined in a manner not inconsistent
with Section 260.140.50 of the California Regulations.


 


	7.	Additional
    Restriction Regarding Recapitalizations, Stock Splits, Etc.


 


For
purposes of Section 8 of the Plan, in the event of a stock split, reverse stock split, stock dividend, recapitalization, combination,
reclassification or other distribution of the Company’s securities, the number of securities allocated to each California
Participant must be adjusted proportionately and without the receipt by the Company of any consideration from any California Participant.


 




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