Document:

Exhibit 10.2

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated Employment Agreement
(this “Agreement”) is made as of February 24, 2021, and effective November 6, 2020 (the “Effective
Date”), between 180 Life Sciences Corp., a Delaware corporation (the “Company”), and James
N. Woody (“Executive”) (collectively, the Company and Executive are the “Parties”).
This Agreement amends, supersedes, and replaces in its entirety that certain Employment Agreement between the Executive and 180
Life Corp. (formerly 180 Life Sciences Corp.), a Delaware corporation dated July 1, 2020, as amended from time to time (the “Prior
Agreement”), effective as of the Effective Date.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1. Start
Date; Employment Term. Executive’s employment with the Company pursuant to this Agreement will commence on the Effective
Date (the “Start Date”) and end on the third (3rd) anniversary of the Start Date (the “Initial
Term”), provided, however, that at the end of Initial Term and on each anniversary thereafter (each, an “Extension
Date” the term of Executive’s employment under this Agreement shall be automatically extended for an additional
one (1) year period (each, a “Renewal Term”), unless the Company or the Executive provides the other
at least 90 (ninety) days’ prior written notice before the next Extension Date that the Initial Term or Renewal Term, as
applicable, shall not be so extended. The period of time from the Start Date through the termination of this Agreement and Executive’s
employment hereunder pursuant to its terms is hereafter referred to as the “Employment Term”.

 

2. Position
and Duties. During the Employment Term, Executive shall serve as the President and Chief Executive Officer, reporting to Board
of Directors (the “Board”). Executive shall also serve as a Director on the Company’s Board. During
the Employment Term, Executive shall perform such duties and responsibilities on behalf of the Company and its affiliates consistent
with Executive’s position and titles, including, without limitation: (a) overall responsibility for creating, planning and
integrating the strategic direction of the Company (b) the engagement and retention of advisors and all other key employees and
consultants of the Company; (c) the review and approval of the Company’s budgets; (d) review and approval of the Company’s
annual strategic plan and (e) review and approval of all mergers and acquisitions of other companies and assets including disposition
and licensing of all intellectual property and patents.

 

3.  Compensation.

 

(a)
Base Salary: Executive’s annual base salary will initially be $450,000 per year, payable in accordance with the Company’s
normal payroll procedures, less all applicable withholdings and deductions. With the completion of the next financings, of over
$20,000,000 cumulative, the terms of the base salary will be renegotiated. On the first anniversary of the Start Date and on each
anniversary thereafter, the then-current base salary shall be increased by five percent (5%). The base salary, as increased in
accordance with this Section, will hereinafter be referred to as the “Base Salary”.

 

     

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(b) Bonus:
Executive will be eligible to receive an annual bonus, with a target bonus opportunity equal to forty-five percent (45%) of Executive’s
then-current Base Salary, based upon the Company’s achievement of performance and management objectives as set and approved
by the Board and/or Compensation Committee in consultation with the Executive. The annual bonus shall be paid on or before March
31 of the year following the year in which the bonus is earned. At the choice of the Executive, the annual bonus can be paid in
cash or the equivalent value of the Company’s common stock or a combination of both. Executive must be employed by the Company
on the date of payment in order to earn and receive any annual bonus unless Executive is terminated without Cause or resigns with
Good Reason. For calendar 2020, such Bonus payment will be prorated for the approximately 2 months after the Start Date. The Board,
as recommended by the Compensation Committee, may also award the Executive a bonus from time to time (in stock, options, cash,
or other forms of consideration) in its discretion.

 

(c) Equity
Award: Concurrent with the parties entry into this Agreement, the Company shall grant the Executive incentive stock options
to purchase one million four hundred thousand (1,400,000) shares of the Company’s common stock (the “Options”).
The Options shall have a term of ten (10) years; an exercise price equal to the Fair Market Value of the Company’s common
stock on the date of grant; as defined in the Company’s 2020 Omnibus Incentive Plan (the “Plan”), shall be subject
to such Plan; shall be evidenced by a stock option agreement entered into by the Company, and shall vest at the rate of (a) 1/5th
of such Options on the execution date of this Agreement; and (b) the remaining 4/5th of such options will vest ratably
on a monthly basis over the following 36 months on the last day of each calendar month; provided, however, that the equity awards
will vest immediately upon Executive’s death or disability (as defined in section 4(b)), termination without Cause or a termination
by Executive for Good Reason, a change in control of the Company (as defined in the Company’s equity incentive plan or agreement)
or upon a sale of the Company. Such equity awards shall be subject to such other provisions to be set forth in Company’s
equity incentive plan and the applicable grant agreement(s) to be entered into between Executive and the Company, which grant agreement
shall be no less favorable than that for other senior executives and directors of the Company. Future equity awards, particularly
upon the completion of new financings within the first year of this contract, may be recommended by the Compensation Committee
of the Company’s Board of Directors and approved by the Company’s Board of Directors. In addition, after the initial
year of this contract, future equity grants will be determined in future years.

 

(d) Benefits:
Executive will be eligible to participate in the benefits offered by the Company, including, without limitation, any health insurance,
retirement, and fringe benefits offered by the Company, in accordance with the applicable terms of the benefit program, plan, or
arrangement. Executive is authorized for first class travel in the performance of his duties.

 

(e) Vacation:
The executive is entitled to up to 30 days of vacation per year. If not taken, unused vacation is paid out in cash at the end of
each year of the Agreement.

 

(f) Expenses:
All expenses associated with Company’s business will be 100% reimbursed on the submission of receipts for payment. Payment
shall be made within 30 days of receipt of documentation. Executive shall receive prior authorization for expenses exceeding $5,000.
All reimbursements shall be made in accordance with the Company’s reimbursement policies.

 

     

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(g) Office.
The Company shall provide the Executive and his executive team with office space located near Palo Alto, California with sufficient
staff, supplies and equipment to operate an office.

 

(h) Other
Activities: Nothing in this agreement shall prevent the Executive from undertaking any other business activities while this
agreement is in force, provided that:

 

(i) such
activity does not cause a breach of any of the Executive’s obligations under this agreement; and

 

(ii)
the Executive shall not engage in any such activity if it relates to a business which is similar to or in any way competitive with
the business of the Company (or any Group Company) without the prior written consent of the Company; and

 

(iii) any
activities that were initiated prior to the signing of this Agreement, that were noncompeting, and disclosed in writing to the
Company.

 

4. Termination
of Employment. The Company or the Executive may terminate the Executive’s employment pursuant to this Section 4. Upon
any termination of the Executive’s employment, the Company shall have no further obligations to the Executive under this
Agreement other than for payment of any accrued but unpaid base salary, properly incurred but unreimbursed business expenses, accrued
but unused vacation, and severance payments, if any, required under Section 5. Rights and benefits of the Executive under the benefit
plans and programs of the Company shall be determined in accordance with the provisions of such plans and programs.

 

a. Death.
The Executive’s employment will terminate upon the Executive’s death. If such an event should occur all compensation
due, and equity shall be awarded to the Executive’s spouse, Suzanne Mann Moore within 90 days.

 

b. Disability.
The Company may terminate the Executive’s employment by reason of the Executive’s becoming subject to a Disability
(as defined in the following sentence) upon the Company providing thirty (30) days’ prior notice to Executive of its intention
to terminate Executive’s employment due to his or her Disability. For purposes of this Agreement, “Disability”
means the Executive is unable to perform the essential functions of his or her position, with or without a reasonable accommodation,
for a period of ninety (90) consecutive calendar days or one-hundred and eighty (180) non-consecutive calendar days within any
rolling twelve (12) month period.

 

c. Cause.
The Company may terminate the Executive’s employment under this Agreement for “Cause.” For purposes
of this Agreement, “Cause” means any of the following: (i) Executive’s engaging in any acts of
fraud, theft, or embezzlement involving the Company; (ii) Executive’s conviction, including any plea of guilty or nolo contendere,
of any felony crime which is relevant to the Executive’s position with the Company; and (iii) Executive’s material
violation of this Agreement which is materially damaging to the reputation or business of the Company, provided that prior to terminating
Executive for Cause, the Board must first (A) provide notice to Executive specifying in reasonable detail the condition giving
rise to Cause for termination no later than the sixtieth (60th) day following the occurrence of that condition; (B) provide the
Executive a period of thirty (30) days to remedy the condition, if subject to remedy, and so specify in the notice; and (C) terminate
his employment for Cause within thirty (30) days following the expiration of the period to remedy if the Executive fails to remedy
the condition.

 

     

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d. Without
Cause. The Company may terminate the Executive’s employment without Cause on sixty (60) days’ prior written notice
to the Executive.

 

e. By
the Executive for Good Reason. The Executive may terminate his employment for Good Reason by (A) providing notice to the Company
specifying in reasonable detail the condition giving rise to the Good Reason no later than the sixtieth (60th) day following the
occurrence of that condition; (B) providing the Company a period of thirty (30) days to remedy the condition if subject to remedy,
and so specifying in the notice; and (C) terminating his employment for Good Reason within thirty (30) days following the expiration
of the period to remedy if the Company fails to remedy the condition. The following, if occurring without the Executive’s
consent, shall constitute “Good Reason” for termination by the Executive: (i) a material diminution in
the nature or scope of the Executive’s title, authority or responsibilities, causing them to be inconsistent with the position
of President and Chief Executive Officer of a public company of similar stature, industry, market capitalization and development
as the Company; (ii) a material adverse change in the Executive’s duties, including, without limitation, such duties set
forth in Section 2, causing them to be inconsistent with the position of President and Chief Executive Officer of a public company
of similar stature, industry, market capitalization and development as the Company; (iii) a requirement that the Executive report
to any person other than the Board; (iv) a material reduction in Base Salary or target bonus opportunity; or (v) the Company’s
breach of a material provision of this Agreement.

 

f. By
the Executive without Good Reason. The Executive may terminate his employment hereunder at any time upon thirty (30) days’
prior written notice to the Company.

 

g. Expiration.
Executive’s employment will terminate automatically upon the expiration of the Initial Term or Renewal Term, as applicable,
if either party has elected not to extend the Initial Term or Renewal Term in accordance with Section 1.

 

5. Payments
on Termination.

 

a. Termination
Without Cause; For Good Reason. Subject to Section 5(b), in the event the Company terminates the employment of Executive without
Cause pursuant to Section 4(d), Executive resigns for Good Reason pursuant to Section 4(e), or the Executive’s employment
terminates clue to expiration of the Employment Term in accordance with Section 4(g) following the Company’s delivery to
Executive of a notice of intent not to renew pursuant to Section 1, then the Company shall pay to the Executive, in addition to
any amounts payable under Section 4, (i) severance payments in the form of continued Base Salary, at Executive’s Base Salary
as then in effect, for the lesser of eighteen (18) months or the then remaining term (notwithstanding any subsequent Renewal Terms)
of the Agreement, (ii) payment of any accrued and unpaid annual bonus for any year preceding the year in which Executive's employment
terminates; (iii) payment of a pro rata annual bonus for the year in which Executive’s employment terminates calculated
by multiplying the target bonus amount by a fraction, the numerator of which is the number of calendar days elapsed in the year
as of the effective date of Executive’s termination of employment and the denominator of which is 365; and (iv) payment
by the Company of Executive’s monthly health insurance premiums for a period matching the period that Executive is entitled
to severance payments pursuant to section 5(a) hereof. The severance in 5(a)(i) and (iv) will be paid pursuant to the Company’s
payroll schedule then in effect commencing on the thirtieth (30th) day following the last day of employment and the payments in
S(a)(ii) and (iii) will be paid on the thirtieth (30th) day following the last day of employment.

 

     

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b. Requirement
of Release. As a condition precedent to receiving any of the severance payments pursuant to Section 5(a), Executive must execute
(without revocation) a general release of claims in a form mutually agreed to by the Company and the Executive (the “Release”).
The Release must be effective and irrevocable prior to the sixtieth (60th) day following the Executive’ s last day of employment.
If the Executive fails to execute the Release pursuant to this Section 5(b), the Executive shall forfeit and not be entitled to
any severance payments under Sections 5(a).

 

6.
Confidential/Trade Secret Information/Non-Solicitation.

 

a. Confidential/Trade
Secret Information Defined. During the course of Executive’s employment, Executive will have access to various Confidential/Trade
Secret Information of the Company and information developed for the Company. For purposes of this Agreement, the term “Confidential/Trade
Secret Information” is information that is not generally known to the public and, as a result, is of economic benefit
to the Company in the conduct of its business, and the business of the Company’s subsidiaries. Executive and the Company
agree that the term “Confidential/Trade Secret Information” includes but is not limited to all information
developed or obtained by the Company, including its affiliates, and predecessors, and comprising the following items, whether or
not such items have been reduced to tangible form (e.g., physical writing, computer hard drive, disk, tape, e-mail, etc.): all
methods, techniques, processes, ideas, research and development, product designs, engineering designs, plans, models, production
plans, business plans, add-on features, trade names, service marks, slogans, forms, pricing structures, menus, business forms,
marketing programs and plans, layouts and designs, financial structures, operational methods and tactics, cost information, the
identity of and/or contractual arrangements with suppliers and/or vendors, accounting procedures, and any document, record or other
information of the Company relating to the above. Confidential/Trade Secret Information includes not only information directly
belonging to the Company which existed before the date of this Agreement, but also information developed by Executive for the Company,
including its subsidiaries, affiliates and predecessors, during the term of Executive’s employment with the Company. Confidential/Trade
Secret Information does not include any information which (a) was in the lawful and unrestricted possession of Executive prior
to its disclosure to Executive by the Company, its subsidiaries, affiliates or predecessors, (b) is or becomes generally available
to the public by lawful acts other than those of Executive after receiving it, or (c) has been received lawfully and in good faith
by Executive from a third party who is not and has never been an executive of the Company, its subsidiaries, affiliates or predecessors,
and who did not derive it from the Company, its subsidiaries, affiliates or predecessors.

 

     

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b. Prohibition
Against Unfair Competition/ Non-Solicitation of Customers. Executive agrees that at no time after his employment with the Company
will he engage in competition with the Company while making any use of the Confidential/Trade Secret Information, or otherwise
exploit or make use of the Confidential/Trade Secret Information. Executive agrees that during the 24-month period following the
date of termination of this employment hereunder (the “Termination Date”), he will not directly or indirectly
accept or solicit, in any capacity, the business of any customer of the Company with whom Executive worked or otherwise had access
to the Confidential/Trade Secret Information pertaining to the Company’s business with such customer during the last year
of Executive’s employment with the Company, or solicit, directly or indirectly, or encourage any of the Company’s customers
or suppliers to terminate their business relationship with the Company, or otherwise interfere with such business relationships.

 

c.
Non-Solicitation of Employees. Executive agrees that during the 24-month period following the Termination Date, he shall
not, directly or indirectly, solicit or otherwise encourage any employees of the Company to leave the employ of the Company, or
solicit, directly or indirectly, any of the Company’s employees for employment.

 

d. Non-Solicitation
During Employment. During his employment with the Company, Executive shall not: (a) interfere with the Company’s business
relationship with its customers or suppliers, (b) solicit, directly or indirectly, or otherwise encourage any of the Company’s
customers or suppliers to terminate their business relationship with the Company, or (c) solicit, directly or indirectly, or otherwise
encourage any employees of the Company to leave the employ of the Company, or solicit any of the Company’s employees for
employment.

 

e. Breach
of Provisions. If Executive materially breaches any of the provisions of this Section 6, or in the event that any such breach
is threatened by Executive, in addition to and without limiting or waiving any other remedies available to the Company at law or
in equity, the Company shall be entitled to immediate injunctive relief in any court, domestic or foreign, having the capacity
to grant such relief, to restrain any such breach or threatened breach and to enforce the provisions of this Section 6.

 

f.
Reasonable Restrictions. The parties acknowledge that the foregoing restrictions are under all of the circumstances reasonable
and necessary for the protection of the Company and its business.

 

     

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g. Specific
Performance. Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of
any of the provisions of Section 6 hereof would be inadequate and, in recognition of this fact, Executive agrees that, in the event
of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled
to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction
or any other equitable remedy which may then be available.

 

7. Section
409A Compliance. This Agreement and any payments or benefits provided hereunder shall be interpreted, operated and administered
in a manner intended to avoid the imposition of additional taxes under Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). Further, the Company and Executive acknowledge and agree that the form and timing of the
payments and benefits to be provided pursuant to this Agreement are intended to be exempt from, or to comply with, one or more
exceptions to the requirements of Section 409A of the Code. Notwithstanding anything contained herein to the contrary, to the extent
required to avoid accelerated taxation or tax penalties under Section 409A of the Code, Executive shall not be considered to have
terminated employment for purposes of this Agreement and no payments shall be due to Executive under this Agreement that are payable
upon Executive’s tem1ination of employment until Executive would be considered to have incurred a “separation
from service” from the Company within the meaning of Section 409A of the Code. In addition, for purposes of this
Agreement, each amount to be paid or benefit to be provided to Executive pursuant to this Agreement shall be construed as a separate
identified payment for purposes of Section 409A of the Code. If the Executive is deemed on the date of termination to be a “specified
employee” within the meaning of that term under Section 409A(a)(2)(B), then with regard to any payment or the provision
of any benefit that is considered defined compensation under Section 409A payable on account of a “separation from
service,“ such payment or benefit shall not be made or provided until the date which is the earlier of (i) the expiration
of the six (6)-month period measured from the date of such “separation from service” of the Executive,
and (ii) the date of the Executive’s death, to the extent required under Section 409A. Upon the expiration of the foregoing
delay period, all payments and benefits delayed pursuant to this Section 6 (whether they would have otherwise been payable in a
single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein. With respect to expenses eligible for reimbursement under the terms of this Agreement: (i) the amount
of such expenses eligible for reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in another
taxable year; and (ii) any reimbursements of such expenses shall be made no later than the end of the calendar year following the
calendar year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement
does not provide for a “deferral of compensation” within the meaning of Section 409A of the Code.

 

8. Inventions
and Patents. Executive acknowledges that all inventions, innovations, improvements, developments,
methods,· designs, analyses, drawings, reports and all similar or related information (whether or not patentable) which
relate to the Company’s or any of its affiliates or subsidiaries actual or anticipated business, research and development
or existing or future products or services and which are conceived, developed or made by Executive while employed by the Company
and its affiliates and subsidiaries (collectively, “Work Product”)
belong to the Company or such affiliate or subsidiary, as applicable. Executive shall promptly disclose such Work Product to the
Board and perform all actions reasonably requested by the Board (whether during or after the term hereof) to establish and confirm
such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).

 

     

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9. Representations.
Executive represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by Executive
does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment
or decree to which Executive is a party or by which Executive is bound, (b) Executive is not a party to or bound by any employment
agreement, non-competition agreement or confidentiality agreement with any other person or entity (other than any such agreement
with any subsidiary or predecessor of the Company) and (c) upon the execution and delivery of this Agreement by the Company, this
Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms.

 

10. Survival.
Executive acknowledges and agrees that Sections 5-10 of this Agreement shall survive the separation of Executive’s employment
for any reason.

 

11. Severability.
The Parties intend for this Agreement to be enforced as written. However, if any section or portion of a section of this Agreement
shall to any extent be declared illegal or unenforceable by a duly authorized court having jurisdiction, (a) then the remainder
of this Agreement, or the application of such section or portions of such section in circumstances other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby, and each section or portion of such section of this
Agreement shall be valid and enforceable to the fullest extent permitted by law; and/or (b) because of the scope of a section or
portion of such section is found to be unreasonable, the Company and Executive agree that the court making such determination shall
have the power to “blue-pencil” the Agreement as necessary to make it reasonable in scope; and in its
reduced or blue-penciled fo1m such section or portion of such section shall then be enforceable and shall be enforced.

 

12.
Miscellaneous.

 

a. Deductions
and Withholding. Executive agrees that the Company and/or its subsidiaries or affiliates shall withhold from any and all compensation
paid to or required to be paid to Executive pursuant to this Agreement all federal, state, local and/or other taxes which the Company
determines are required to be withheld in accordance with applicable statutes and/or regulations from time to time in effect and
all amounts required to be deducted in respect of Executive ‘ s coverage under applicable employee benefit plans.

 

b. Integration.
This Agreement embodies the entire agreement and understanding between the Parties with respect to the subject matter hereof and
supersedes all prior oral or written agreements and understandings relating to the subject matter hereof, including, but not limited
to the Prior Agreement. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this
Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

 

     

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c. Successors.
This Agreement shall inure to the benefit of and be enforceable by Executive’s personal representatives, executors, administrators,
heirs, distributees, devisees and legatees. The Company shall take commercially reasonable effo1ts to require any successor to
the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place. Executive’s rights and obligations under this Agreement
may not be assigned by Executive without the prior written consent of the Company.

 

d. Beneficiaries.
In the event of the death, disability or termination not for cause, of the Executive, all accumulated assets cash, equity, 409a
accounts, accrued vacation time, etc., or other entitlement payments shall, within 90 days, be distributed to his spouse Suzanne
Mann Moore, per her instructions.

 

e. Waiver.
No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any
party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this
Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

f. Amendment.
This Agreement may be amended or modified only by a written instrument signed by Executive and by a duly authorized representative
of the Company.

 

g. Governing
Law. This Agreement shall be governed by and enforced in accordance with the internal laws of the State of California without
regard to principles of conflict of laws.

 

h. Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same document.

 

13. Indemnification.
The Company agrees to indemnify and hold the Executive harmless from and against any and all
loss, damage, cost and expense of every kind, including reasonable attorneys’ fees (each, a “Loss”)
resulting from any claim by a third party relating to the services rendered in connection with this Agreement, or prior statements,
obligations, commitments, verbal or written or otherwise communicated, made by the Company before the date of this Agreement, and
to any injury or death alleged to have been caused by or attributable to any drug, device or biologic relating to services rendered
pursuant to this Agreement, unless such Loss arises out of the gross negligence, willful misconduct or breach of this Agreement
by the Executive. The Company agrees to acquire sufficient D&O insurance to cover the Executive under usual conditions.

 

[Signature Page Follows]

 

     

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IN WITNESS WHEREOF,
the parties have executed this Agreement effective on the date and year first above written

 

	180
    Life Sciences Corp.	 	James
    N. Woody MD, PhD
	 	 	 	 	 
	By:	/s/ Marc Feldmann 	 	By:	/s/
    James N. Woody
	 	 	 	 	 
	Name	Sir Marc Feldmann 	 	Name: 	James
    N. Woody
	 	 	 	 	 
	Print
    Name: 	 	 	 	 
	 	 	 	 	 
	Title:	Co-Chairman
    Board of Directors, 

180 Life Sciences Corp.	 		  
	 	 	 	 	 
	Date:	03/03/2021	 	Date:
    2/25/2021Exhibit 10.3

 

180 LIFE SCIENCES CORP.

 

2020 OMNIBUS INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

Unless otherwise defined
herein, the terms in the Stock Option Agreement (the “Option Agreement”) have the same meanings as defined
in the 180 Life Sciences Corp. 2020 Omnibus Incentive Plan (as amended from time to time)(the “Plan”).

 

I.
NOTICE OF STOCK OPTION GRANT

 

Optionee: James
N. Woody

 

Address: ___________________________________

 

You have been granted
an Option to purchase Company Common Stock of the Company (the “Option”), subject to the terms and conditions
of the Plan and this Option Agreement, as follows:

 

Grant Date: February
26, 2021

 

Vesting Commencement
Date: February 26, 2021

 

Exercise Price
per Share: $4.43

 

Total Number of
Shares Granted: 1,400,000

 

Total Exercise
Price: $6,202,000

 

Type of Option:
Incentive as to the first $100,00 of value which vests each year and Non-Qualified for any additional value which vests each
year

 

Expiration Date:
February 26, 2031

 

Vesting Schedule: The
Options vest at the rate of (a) 1/5th of such options on the Grant Date; and (b) 4/5th of such options vesting ratably on a monthly
basis over the following 36 months on the last day of each calendar month, subject to the Optionee’s continued service to
the Company. Notwithstanding the above, all of the unvested Options shall vest immediately upon Optionee’s death or Disability,
termination of employment without cause or a termination of Optionee for good reason (each as defined and described in Optionee’s
employment agreement), a Change in Control of the Company.

 

To the extent vested,
this Option will be exercisable for three (3) months following the termination of service of Optionee, unless termination is due
to Optionee’s death or Disability, in which case this Option will be exercisable for twelve (12) months following
the termination of service of Optionee. In the event of termination due to Optionee’s death, the Company shall use commercially
reasonable efforts to notify Optionee’s estate of the exercisability of the Option following Optionee’s death. Notwithstanding
the foregoing sentence, in no event may this Option be exercised following the termination of service of Optionee as determined
by the Company’s Board to be for Cause or after the Expiration Date as provided above and this Option may be subject to
earlier termination as provided in the Plan.

 

     

     

    

 

“Cause”
has the meaning ascribed to such term or words of similar import in Optionee’s written employment or service contract with
the Company or its parent or any subsidiary and, in the absence of such agreement or definition, means Optionee’s (i) conviction
of, or plea of nolo contendere to, a felony or any other crime involving moral turpitude; (ii) fraud on or misappropriation
of any funds or property of the Company or its subsidiaries, or any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than minor traffic violations or similar
offenses), or breach of fiduciary duty which involves personal profit; (iv) willful misconduct in connection with Optionee’s
duties or willful failure to perform Optionee’s responsibilities in the best interests of the Company or its subsidiaries;
(v) illegal use or distribution of drugs; (vi) violation of any material rule, regulation, procedure or policy of the
Company or its subsidiaries, the violation of which could have a material detriment to the Company; or (vii) material breach
of any provision of any employment, non-disclosure, non-competition, non-solicitation or other similar agreement executed by Optionee
for the benefit of the Company or its subsidiaries, all as reasonably determined by the Company’s Board of Directors, which
determination will be conclusive.

 

Legends.

 

(a) All
certificates representing the Shares issued upon exercise of this Option shall, prior to such date as the Plan and Company Common
Stock hereunder are covered by a valid Form S-8 or similar U.S. federal registration statement, where applicable, have endorsed
thereon the following legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT
TO THE RELEVANT PROVISIONS OF U.S. FEDERAL, STATE AND FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER U.S. FEDERAL, STATE AND FOREIGN SECURITIES LAWS IS NOT REQUIRED.

 

    2020 Stock Option Agreement
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(b) If
the Option is an incentive stock option (ISO), then the following legend will be included:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED UPON EXERCISE OF AN INCENTIVE STOCK OPTION, AND THE COMPANY MUST BE NOTIFIED
IF THE SHARES SHALL BE TRANSFERRED BEFORE THE LATER OF THE TWO (2) YEAR ANNIVERSARY OF THE DATE OF GRANT OF THE OPTION OR THE
ONE (1) YEAR ANNIVERSARY OF THE DATE ON WHICH THE OPTION WAS EXERCISED. THE REGISTERED HOLDER MAY RECOGNIZE ORDINARY INCOME IF
THE SHARES ARE TRANSFERRED BEFORE SUCH DATE.

 

II. AGREEMENT

 

1. Grant of Option.
The Administrator grants to the Optionee named in the Notice of Stock Option Grant in Part I of this Option Agreement,
an Option to purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise price per Share set
forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the terms and conditions
of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms and conditions of the Plan
and this Option Agreement, the terms and conditions of the Plan prevail.

 

If designated in the
Notice of Stock Option Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as
defined in Code section 422. Nevertheless, to the extent that it exceeds the $100,000 rule of Code section 422(d), this
Option will be treated as a Nonstatutory/Non-Qualified Stock Option.

 

2. Exercise of
Option.

 

(a) Right to Exercise.
This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant
and with the applicable provisions of the Plan and this Option Agreement.

 

(b) Method of Exercise.
This Option is exercisable by (i) delivery of an exercise notice in the form attached as Exhibit A (the “Exercise
Notice”) or in a manner and pursuant to procedures as the Administrator may determine, which will state the election
to exercise the Option, the number of Shares with respect to which the Option is being exercised, and other representations and
agreements as may be required by the Company and (ii) paying the Company in full the aggregate Exercise Price as to all Shares
being acquired, together with any applicable tax withholding.

 

This Option will be
deemed to be exercised upon receipt by the Company of a fully executed Exercise Notice accompanied by the aggregate Exercise Price,
together with any applicable tax withholding.

 

    2020 Stock Option Agreement
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No Shares will be issued
pursuant to the exercise of an Option unless the issuance and exercise of Shares complies with applicable state and federal laws
(“Applicable Laws”). Assuming compliance, for income tax purposes the Shares will be considered transferred
to the Optionee on the date on which the Option is exercised with respect to the Shares.

 

3. Method of Payment.
The aggregate Exercise Price may be paid by any of the following, or a combination thereof, at the election of the Optionee:

 

(a) cash;

 

(b) check;

 

(c) to the extent not
prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a promissory note;

 

(d) other shares of
Company Common Stock, provided Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price
of the Shares as to which said Option will be exercised;

 

(e) by asking the Company
to withhold Shares from the total Shares to be delivered upon exercise equal to the number of Shares having a value equal to the
aggregate Exercise Price of the Shares being acquired;

 

(f) any combination
of the foregoing methods of payment; or

 

(g) such other
consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

 

4. Restrictions
on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any Applicable Laws. The Company will be relieved of any liability
with respect to any delayed issuance of shares or its failure to issue shares if such delay or failure is necessary to comply
with Applicable Laws.

 

5. Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement are binding
upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

6. Term of Option.
This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during the
term only in accordance with the Plan and the terms of this Option.

 

    2020 Stock Option Agreement
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7. Tax Obligations.

 

(a) Withholding Taxes.
Optionee agrees to arrange for the satisfaction of all Federal, state, local and foreign income and employment tax withholding
requirements applicable to the Option exercise. Optionee acknowledges and agrees that the Company may refuse to honor the exercise
and refuse to deliver the Shares if withholding amounts are not delivered at the time of exercise.

 

(b) Notice of Disqualifying
Disposition of ISO Shares. If the Option granted to Optionee is an Incentive Stock Option (“ISO”),
and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the
date two (2) years after the Grant Date, or (ii) the date one (1) year after the date of exercise, the Optionee must immediately
notify the Company of the disposition in writing. Optionee agrees that Optionee may be subject to income tax withholding by the
Company on the compensation income recognized by the Optionee.

 

(c) Code Section
409A. Under Code section 409A, an Option that was granted with a per Share exercise price that is determined by the Internal
Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the Grant Date (a “discount
option”) may be considered deferred compensation. An Option that is a discount option may result in (i) income recognition
by the Optionee prior to the exercise of the Option, (ii) an additional tax, and (iii) potential penalty and interest charges.
Optionee acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share Exercise Price
of this Option equals or exceeds Fair Market Value of a Share on the Grant Date in a later examination. Optionee agrees that if
the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share
on the Grant Date, Optionee will be solely responsible for any and all resulting tax consequences.

 

8. No Guarantee
of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF
IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE AND/OR DIRECTOR (AS APPLICABLE) AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY
EMPLOYING OR RETAINING OPTIONEE) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER.
OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE
SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE AND/OR DIRECTOR (AS APPLICABLE)
FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE RIGHT
OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING OPTIONEE) TO TERMINATE OPTIONEE’S RELATIONSHIP AS AN
EMPLOYEE OR DIRECTOR AT ANY TIME, WITH OR WITHOUT CAUSE.

 

    2020 Stock Option Agreement
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9. Notices.
All notices or other communications which are required or permitted hereunder will be in writing and sufficient if (i) personally
delivered or sent by telecopy, (ii) sent by nationally-recognized overnight courier or (iii) sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

 

(a) if to the Optionee,
to the address (or telecopy number) set forth on the Notice of Stock Option Grant; and

 

(b) if to the Company,
to its principal executive office as specified in any report filed by the Company with the Securities and Exchange Commission
or to such address as the Company may have specified to the Optionee in writing, Attention: Corporate Secretary;

 

or to any other address
as the party to whom notice is to be given may have furnished to the other party in writing in accordance herewith. Any communication
will be deemed to have been given (i) when delivered, if personally delivered, or when telecopied, if telecopied, (ii) on the
first Business Day (as hereinafter defined) after dispatch, if sent by nationally-recognized overnight courier and (iii) on the
fourth Business Day following the date on which the piece of mail containing the communication is posted, if sent by mail. As
used herein, “Business Day” means a day that is not a Saturday, Sunday or a day on which banking institutions
in the city to which the notice or communication is to be sent are not required to be open.

 

10. Specific Performance.
Optionee expressly agrees that the Company will be irreparably damaged if the provisions of this Option Agreement and the Plan
are not specifically enforced. Upon a breach or threatened breach of the terms, covenants and/or conditions of this Option Agreement
or the Plan by the Optionee, the Company will, in addition to all other remedies, be entitled to a temporary or permanent injunction,
without showing any actual damage, and/or decree for specific performance, in accordance with the provisions hereof and thereof.
The Administrator has the power to determine what constitutes a breach or threatened breach of this Option Agreement or the Plan.
The Administrator’s determinations will be final and conclusive and binding upon the Optionee.

 

11. No Waiver.
No waiver of any breach or condition of this Option Agreement will be deemed to be a waiver of any other or subsequent breach
or condition, whether of like or different nature.

 

12. Optionee Undertaking.
The Optionee agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable
judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on
the Optionee pursuant to the express provisions of this Option Agreement.

 

13. Modification
of Rights. The rights of the Optionee are subject to modification and termination in certain events as provided in this Option
Agreement and the Plan.

 

    2020 Stock Option Agreement
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14. Governing Law.
This Agreement is governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to its
conflict or choice of law principles that might otherwise refer construction or interpretation of this Agreement to the substantive
law of another jurisdiction.

 

15. Counterparts;
Facsimile Execution. This Option Agreement may be executed in one or more counterparts, each of which will be deemed to be
an original, but all of which together constitute one and the same instrument. Facsimile execution and delivery of this Option
Agreement is legal, valid and binding execution and delivery for all purposes.

 

16. Entire Agreement.
The Plan, this Option Agreement, and upon execution, the Exercise Notice, constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and
Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except
by means of a writing signed by the Company and Optionee.

 

17. Severability.
In the event one or more of the provisions of this Option Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Option
Agreement, and this Option Agreement will be construed as if such invalid, illegal or unenforceable provision had never been contained
herein.

 

18. WAIVER OF JURY
TRIAL. THE OPTIONEE EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS OPTION AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[Remainder of page left intentionally blank.]

 

    2020 Stock Option Agreement
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Optionee acknowledges
receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and accepts this
Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has
had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the
Option. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon
any questions arising under the Plan or this Option. Optionee further agrees to notify the Company upon any change in the residence
address indicated below.

 

	OPTIONEE	 	180 LIFE SCIENCE CORP.
	 	 	 
	 	 	 
	Signature	/s/ James N. Woody	 	By:	    /s/ Sir Marc Feldmann
	 	 	 
	Print Name: 	James N. Woody	 	Print Name: 	Sir Marc Feldmann
	 	 	 
	Address:	 	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	Date Signed: 	March 2, 2021	 	Date Signed: 	03/03/2021

 

    2020 Stock Option Agreement
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EXHIBIT A

 

2020 OMNIBUS INCENTIVE PLAN

 

EXERCISE NOTICE

 

180 Life Sciences Corp.

30 Menlo Avenue, Suite 100

Menlo Park, CA 94025

 

Attention: 180 Life Science Corp., Corporate
Secretary

 

1.  Exercise
of Option. Effective as of today, _____________, _____, the undersigned (“Optionee”) elects to exercise
Optionee’s option to purchase ___________ shares of the Company Common Stock (the “Shares”) of
180 Life Sciences Corp. (the “Company”) under and pursuant to the 180 Life Science Corp. 2020 Omnibus
Incentive Plan (as amended from time to time, the “Plan”) and the Stock Option Agreement effective February
26, 2021 (the “Option Agreement”).

 

2.  Delivery
of Payment. Optionee herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement,
and any and all withholding taxes due in connection with the exercise of the Option.

 

3.  Representations
of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

 

4.  Rights
as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder exists
with respect to the Optioned Stock, notwithstanding the exercise of the Option. Subject to the requirements of Section
6 below, the Shares will be issued to the Optionee as soon as practicable after the Option is exercised in accordance
with the Option Agreement. No adjustment will be made for a dividend or other right for which the record date is prior to the
date of issuance except as provided in the Plan.

 

5.  Tax
Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase
or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable
in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 

6.  Refusal
to Transfer. The Company will not (i) transfer on its books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of this Exercise Notice, or (ii) be required to treat as owner of such Shares or to accord the right
to vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred.

 

    2020 Stock Option Agreement
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7.  Successors
and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this
Exercise Notice inures to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein
set forth, this Exercise Notice is binding upon Optionee and his or her heirs, executors, administrators, successors and assigns.

 

8.  Interpretation.
Any dispute regarding the interpretation of this Exercise Notice will be submitted by Optionee or by the Company forthwith to
the Administrator for review at its next regular meeting. The resolution of disputes by the Administrator will be final and binding
on all parties.

 

9.  Governing
Law; Severability. This Exercise Notice is governed by, and construed in accordance with, the laws of the State of Delaware,
without giving effect to its conflict or choice of law principles that might otherwise refer construction or interpretation of
this Exercise to the substantive law of another jurisdiction. In the event that any provision hereof becomes or is declared by
a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice will continue in full force and effect.

 

10.
Optionee Representations.

 

(a) With
respect to a transaction occurring prior to such date as the Plan and Company Common Stock thereunder are covered by a valid Form
S-8 or similar U.S. federal registration statement, Optionee agrees that in no event shall Optionee make a disposition of any
of the Company Common Stock, unless and until: (i) Optionee shall have notified the Company of the proposed disposition and shall
have furnished the Company with a statement of the circumstances surrounding the proposed disposition; and (ii) Optionee shall
have furnished the Company with an opinion of counsel satisfactory to the Company to the effect that (A) such disposition will
not require registration or qualification of such Company Common Stock under applicable U.S. federal, state or foreign securities
laws or (B) appropriate action necessary for compliance with the U.S. federal, state or foreign securities laws has been taken;
or (iii) the Company shall have waived, expressly and in writing, its rights under clauses (i) and (ii) of this Subsection.

 

(b) Optionee
understands that if a registration statement covering the Company Common Stock under the Securities Act is not in effect when
Optionee desires to sell the Company Common Stock, Optionee may be required to hold the Company Common Stock for an indeterminate
period. Optionee also acknowledges that Optionee understands that any sale of the Company Common Stock which might be made by
Optionee in reliance upon Rule 144 under the Securities Act may be made only in limited amounts in accordance with the terms and
conditions of that Rule.

 

    2020 Stock Option Agreement
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11. Other
Documents. Optionee hereby acknowledges receipt or the right to receive a document providing the information required by Rule
428(b)(1) promulgated under the Securities Act of 1933, as amended, including, but not limited to, the information required by
Part I of Form S-8, if applicable.

 

12.  Notices.
Any notice required or permitted hereunder will be provided in writing and deemed effective if provided in the manner specified
in the Option Agreement.

 

13.  Further
Instruments. The parties agree to execute any further instruments and to take any further action as may be reasonably necessary
to carry out the purposes and intent of the Option Agreement and this Exercise Notice.

 

14.  Entire
Agreement. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan, and the Option
Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee.

 

[Signature page follows.]

 

    2020 Stock Option Agreement
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	Submitted by:	 	Accepted by:
	 	 	 
	OPTIONEE	 	180 LIFE SCIENCES CORP.
	 	 	 
	Signature	 	 	By:	    
	 	 	 
	Print Name:  	James N. Woody	 	Print Name:	 
	 	 	 
	Address:	 	 	 
	 	 	 
	 	 	Date Received:	 

 

2020 Stock Option Agreement

Page 12 of 12

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