Document:

Exhibit 10.3

 

INVESTORS’
RIGHTS AGREEMENT

 

THIS
INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of the 18th day of June, 2020,
by and among Anebulo Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each of the investors
listed on Schedule A hereto, each of which is referred to in this Agreement as an “Investor”, and any
Additional Purchaser (as defined in the Purchase Agreement) that becomes a party to this Agreement in accordance with Section
6.9 hereof.

 

RECITALS

 

WHEREAS,
the Company and the Investors are parties to that certain Series A Preferred Stock Purchase Agreement of even date herewith (the
“Purchase Agreement”); and

 

WHEREAS,
in order to induce the Company to enter into the Purchase Agreement and to induce the Investors to invest funds in the Company
pursuant to the Purchase Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of
the Investors to cause the Company to register shares of Common Stock issuable to the Investors, to receive certain information
from the Company, and to participate in future equity offerings by the Company, and shall govern certain other matters as set
forth in this Agreement;

 

NOW,
THEREFORE, the parties hereby agree as follows:

 

1. Definitions.
For purposes of this Agreement: 

 

1.1
“Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls,
is controlled by, or is under common control with such Person, including without limitation any general partner, managing member,
officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing
that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company
or investment adviser with, such Person.

 

1.2
“Board of Directors” means the board of directors of the Company.

 

1.3
“Certificate of Incorporation” means the Company’s Amended and Restated Certificate of Incorporation,
as amended and/or restated from time to time.

 

1.4
“Common Stock” means shares of the Company’s common stock, par value $0.001 per share.

 

1.5
“Competitor” means a Person engaged, directly or indirectly (including through any partnership, limited liability
company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in the business of the
development, commercialization or sale of products for the treatment or prevention of disease in humans, but shall not include
any financial investment firm or collective investment vehicle that, together with its Affiliates that are not operating companies,
holds less than twenty percent (20)% of the outstanding equity of any Competitor and does not, nor do any of its Affiliates, have
a right to designate any members of the board of directors of any Competitor.

 

    	 

    	 

    

 

1.6
“Damages” means any loss, damage, claim or liability (joint or several) to which a party hereto may become
subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability
(or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material
fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required
to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation
by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law,
or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

1.7
“Derivative Securities” means any securities or rights convertible into, or exercisable or exchangeable for
(in each case, directly or indirectly), Common Stock, including options and warrants.

 

1.8
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

1.9
“Excluded Registration”
means (i) a registration relating to the sale or grant of securities to employees of the Company or a subsidiary pursuant
to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145 transaction;
(iii) a registration on any form that does not include substantially the same information as would be required to be included
in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock
being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

1.10
“FOIA Party” means a Person that, in the reasonable determination of the Board of Directors, may be subject
to, and thereby required to disclose non-public information furnished by or relating to the Company under, the Freedom of Information
Act, 5 U.S.C. 552 (“FOIA”), any state public records access law, any state or other jurisdiction’s laws
similar in intent or effect to FOIA, or any other similar statutory or regulatory requirement.

 

1.11
“Form S-1” means such form
under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently
adopted by the SEC.

 

1.12
“Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form
under the Securities Act subsequently adopted by the SEC that permits forward incorporation of substantial information by reference
to other documents filed by the Company with the SEC.

 

1.13
“GAAP” means generally accepted accounting principles in the United States as in effect from time to time.

 

1.14
“Holder” means any holder of Registrable Securities who is a party to this Agreement.

 

1.15
“Immediate Family Member”
means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a natural person referred to herein.

 

    	2

    	 

    

 

1.16
“Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

1.17
“IPO”
means the Company’s first underwritten public offering of its Common Stock
under the Securities Act.

 

1.18
“Key Employee” means any
executive-level employee (including, division director and vice president-level positions) as well as any employee who, either
alone or in concert with others, develops, invents, programs, or designs any Company Intellectual Property (as defined in the
Purchase Agreement).

 

1.19
“Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds
at least 100,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization
or reclassification effected after the date hereof).

 

1.20
“New Securities” means, collectively, equity securities of the Company, whether or not currently authorized,
afs well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or
may become, convertible or exchangeable into or exercisable for such equity securities, but excluding the issuance of warrants
to purchase up to 1,149,401 shares of Preferred Stock pursuant to the terms of any warrant purchase agreement by and among the
Company and any Affiliate of 22NW, LP or Aron English.

 

1.21
“Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

1.22
“Preferred Stock” means shares of the Company’s Series A Preferred Stock.

 

1.23
“Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Series A Preferred
Stock, excluding any Common Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory
Conversion” provisions of the Certificate of Incorporation; and (ii) any Common Stock, or any Common Stock issued or issuable
(directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the
Investors after the date hereof; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant,
right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement
of, the shares referenced in clauses (i) and ii) above; excluding in all cases, however, any Registrable Securities
sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Subsection
6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Subsection
2.11 of this Agreement.

 

1.24
“Registrable Securities then outstanding” means the number of shares determined by adding the number of shares
of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly)
pursuant to then exercisable and/or convertible securities that are Registrable Securities.

 

1.25
“Restricted Securities” means the securities of the Company required to be notated with the legend set forth
in Subsection 2.10(b) hereof.

 

    	3

    	 

    

 

1.26
“SEC” means the Securities and Exchange Commission.

 

1.27
“SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

1.28
“SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

1.29
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.30
“Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable
to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder.

 

1.31
“Series A Director” means any director of the Company that the holders of record of the Series A Preferred
Stock are entitled to elect, exclusively and as a separate class, pursuant to the Certificate of Incorporation.

 

1.32
“Series A Preferred Stock” means shares of the Company’s Series A Preferred Stock, par value $0.001 per
share.

 

2.
Registration Rights. The Company covenants and agrees as follows: 

 

2.1 Company
Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company
for stockholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public
offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time,
promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after
such notice is given by the Company, the Company shall, subject to the provisions of Subsection 2.2, cause to be
registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The
Company shall have the right to terminate or withdraw any registration initiated by it under this Subsection 2.1
before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in
such registration. 

 

2.2 Underwriting
Requirements. 

 

(a)
If, pursuant to Subsection 2.1, the Company intends to engage an underwriter in connection with a registration pursuant
to Subsection 2.1, the underwriter(s) will be selected by the Board of Directors and shall be reasonably acceptable to
a majority in interest of the holders of Preferred Stock. In such event, the right of any Holder to include such Holder’s
Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and
the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing
to distribute their securities through such underwriting shall (together with the Company as provided in Subsection 2.3(e))
enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding
any other provision of this Subsection 2.2, if the managing underwriter(s) advise(s) the Initiating Holders in writing
that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise
all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities
that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating
Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other
proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable
Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first
entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company
or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

 

    	4

    	 

    

 

(b)
In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection
2.1, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless
the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such
quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company.
If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering
exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine
is compatible with the success of the offering, then the Company shall be required to include in the offering only that number
of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine
will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities
requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering
shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities
owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate
the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares
allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall the number of
Registrable Securities included in the offering be reduced below twenty percent (20%) of the total number of securities included
in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters
make the determination described above and no other stockholder’s securities are included in such offering. For purposes
of the provision in this Subsection 2.3 (b) concerning apportionment, for any selling Holder that is a partnership, limited
liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such
Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any
trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro
rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities
owned by all Persons included in such “selling Holder,” as defined in this sentence.

 

2.3
Obligations of the Company. Whenever required under this Section 2 to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably possible: 

 

(a)
prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days
or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however,
that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains,
at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in
such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered
on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall
be extended for up to 90 days, if necessary, to keep the registration statement effective until all such Registrable Securities
are sold;

 

    	5

    	 

    

 

(b)
prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection
with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of
all securities covered by such registration statement;

 

(c)
furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the
Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their
Registrable Securities;

 

(d)
use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such
other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided
that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such
states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by
the Securities Act;

 

(e)
in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the underwriter(s) of such offering;

 

(f)
use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be
listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar
securities issued by the Company are then listed;

 

(g)
provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP
number for all such Registrable Securities, in each case not later than the effective date of such registration;

 

(h)
promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant
to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by
the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause
the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested
by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy
of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(i)
notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has
been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(j)
after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend
or supplement such registration statement or prospectus.

 

    	6

    	 

    

 

In
addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities
of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s
directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

 

2.4 Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section
2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such
securities as is reasonably required to effect the registration of such Holder’s Registrable
Securities. 

 

2.5 Delay
of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any
registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation
or implementation of this Section 2. 

 

2.6 Indemnification.
If any Registrable Securities are included in a registration statement under this Section 2: 

(a)
To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers,
directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined
in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning
of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling
Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating
or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however,
that the indemnity agreement contained in this Subsection 2.6 (a) shall not apply to amounts paid in settlement of any
such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably
withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions
made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling
Person, or other aforementioned Person expressly for use in connection with such registration.

 

(b)
To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company,
and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls
the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined
in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any
such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based
upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling
Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other
aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any
claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity
agreement contained in this Subsection 2.6 (b) shall not apply to amounts paid in settlement of any such claim or proceeding
if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided
further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Subsections
2.6 (b) and 2.6(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid
by such Holder), except in the case of fraud or willful misconduct by such Holder.

 

    	7

    	 

    

 

(c)
Promptly after receipt by an indemnified party under this Subsection 2.6 of notice of the commencement of any action (including
any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim
in respect thereof is to be made against any indemnifying party under this Subsection 2.6, give the indemnifying party
notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent
the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified
party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests
between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the
indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any
liability to the indemnified party under this Subsection 2.6, to the extent that such failure materially prejudices the
indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than under this Subsection 2.6.

 

(d)
To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any
party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.6
but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration
of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding
the fact that this Subsection 2.6 provides for indemnification in such case, or (ii) contribution under the Securities
Act may be required on the part of any party hereto for which indemnification is provided under this Subsection 2.6, then,
and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which
they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each
of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted
in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether
the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to
information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such statement or omission; provided, however, that,
in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable
Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant to
this Subsection 2.6 (d), when combined with the amounts paid or payable by such Holder pursuant to Subsection 2.6 (b),
exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the
case of willful misconduct or fraud by such Holder.

 

(e)
Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the
provisions in the underwriting agreement shall control.

 

(f)
Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the
obligations of the Company and Holders under this Subsection 2.6 shall survive the completion of any offering of Registrable
Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

    	8

    	 

    

 

2.7 Reports
Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or
regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company shall: 

 

(a)
make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all
times after the effective date of the registration statement filed by the Company for the IPO;

 

(b)
use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements);
and

 

(c)
furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate,
a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety
(90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the
Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant
whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information
as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such
securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange
Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

2.8 Limitations
on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with
any holder or prospective holder of any securities of the Company that would provide to such holder or prospective holder the
right to include securities in any registration on other than either a pro rata basis with respect to the Registrable
Securities or on a subordinate basis after all Holders have had the opportunity to include in the registration and offering
all shares of Registrable Securities that they wish to so include; provided that this limitation shall not apply to
Registrable Securities acquired by any additional Investor that becomes a party to this Agreement in accordance with Subsection
6.9. 

 

    	9

    	 

    

 

2.9 “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of
shares of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1 or
Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred
eighty (180) days in the case of the IPO, or such other period as may be requested by the Company or an underwriter to
accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst
recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule
472(f)(4), or any successor provisions or amendments thereto), or ninety (90) days in the case of any registration other than
the IPO, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on
(1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but
not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or
amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any
option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or
indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or
indirectly) for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter
acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is
to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Subsection
2.9 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of
any shares to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided
that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further
that any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers
and directors are subject to the same restrictions and the Company uses commercially reasonable efforts to obtain a similar
agreement from all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common
Stock (after giving effect to conversion into Common Stock of all outstanding Series A Preferred Stock). The underwriters in
connection with such registration are intended third-party beneficiaries of this Subsection 2.9 and shall have the
right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to
execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are
consistent with this Subsection 2.9 or that are necessary to give further effect thereto. Any discretionary waiver or
termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to
all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements,
except that, notwithstanding the foregoing, the Company and the underwriters may, in their sole discretion, waive or
terminate these restrictions with respect to up to 25,000 shares of the Common Stock (subject to customary
adjustments). 

 

2.10
Restrictions on Transfer. 

 

(a)
The Series A Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company
shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or
transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the
provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Series
A Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the
provisions and upon the conditions specified in this Agreement.

 

(b)
Each certificate, instrument, or book entry representing (i) the Series A Preferred Stock, (ii) the Registrable Securities, and
(iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock
dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Subsection
2.10 (c)) be notated with a legend substantially in the following form:

 

THE
SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

    	10

    	 

    

 

THE
SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The
Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer set forth in this Subsection 2.10.

 

(c)
The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions
of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect
a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the
Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner
and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company,
shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal
opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction
may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect
that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation
by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel
to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without
registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or
transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company
will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144;
or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration;
provided that each transferee agrees in writing to be subject to the terms of this Subsection 2.10. Each certificate,
instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if
such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Subsection 2.12 (b), except
that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel
for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities
Act.

 

2.11 Termination
of Registration Rights. The right of any Holder to request inclusion of Registrable Securities in any registration
pursuant to Subsection 2.1 shall terminate upon the earliest to occur of:

 

(a)
the closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation;

 

(b)
such time after consummation of the IPO as Rule
144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares without
limitation during a three-month period without registration; and

 

(c)
the third anniversary of the IPO.

 

    	11

    	 

    

 

3. Information
and Observer Rights. 

 

3.1 Delivery
of Financial Statements. The Company shall deliver to each Major Investor, provided that the Board of Directors
has not reasonably determined that such Major Investor is a competitor of the Company: 

 

(a)
as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company
(i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and a comparison between
(x) the actual amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the
Budget (as defined in Subsection 3.1(e)) for such year, with an explanation of any material differences between such amounts
and a schedule as to the sources and applications of funds for such year, and (iii) a statement of stockholders’ equity
as of the end of such year, all such financial statements audited and certified by independent public accountants of regionally
recognized standing selected by the Company;

 

(b)
as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of
each fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance
sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared in accordance with GAAP
(except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes
thereto that may be required in accordance with GAAP);

 

(c)
as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of
each fiscal year of the Company, a statement showing the number of shares of each class and series of capital stock and securities
convertible into or exercisable for shares of capital stock outstanding at the end of the period, the Common Stock issuable upon
conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise
price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance,
if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in
the Company, and certified by the chief financial officer or chief executive officer of the Company as being true, complete, and
correct;

 

(d)
as soon as practicable, but in any event within
thirty (30) days of the end of each month, an unaudited income statement and statement of cash flows for such month, and an unaudited
balance sheet and statement of stockholders’ equity as of the end of such month,
all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments
and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(e)
as soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the
next fiscal year (collectively, the “Budget”), approved by the Board of Directors and prepared on a monthly
basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared,
any other budgets or revised budgets prepared by the Company; and

 

(f)
such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major
Investor may from time to time reasonably request; provided, however, that the Company shall not be obligated under
this Subsection 3.1 to provide information (i) that the Company reasonably determines in good faith to be a trade secret
or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company);
or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

    	12

    	 

    

 

If,
for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such
period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial
statements of the Company and all such consolidated subsidiaries.

 

Notwithstanding
anything else in this Subsection 3.1 to the contrary, the Company may cease providing the information set forth in this
Subsection 3.1 during the period starting with the date sixty (60) days before the Company’s good-faith estimate
of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable
to such registration statement and related offering; provided that the Company’s covenants under this Subsection
3.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to
cause such registration statement to become effective.

 

3.2 Inspection.
The Company shall permit each Major Investor (provided that the Board of Directors has not reasonably determined that such
Major Investor is a competitor of the Company), at such Major Investor’s expense, to visit and inspect the
Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and
accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however,
that the Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information that it
reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable
confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the
attorney-client privilege between the Company and its counsel. 

 

3.3 Termination
of Information. The covenants set forth in Subsection 3.1, and Subsection 3.2 shall terminate and be of no
further force or effect (i) immediately before the consummation of the IPO, or (ii) when the Company first becomes subject to
the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon the closing of a Deemed
Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever event occurs
first. 

 

3.4
Confidentiality. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use
for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant
to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such
confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection
3.4 by such Investor), (b) is or has been independently developed or conceived by such Investor without use of the Company’s
confidential information, or (c) is or has been made known or disclosed to such Investor by a third party without a breach of
any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor
may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary
to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any
Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Subsection
3.4; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor
in the ordinary course of business, provided that such Investor informs such Person that such information is confidential
and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, regulation,
rule, court order or subpoena, provided that such Investor promptly notifies the Company of such disclosure and takes reasonable
steps to minimize the extent of any such required disclosure. 

 

    	13

    	 

    

 

4.
Rights to Future Stock Issuances. 

 

4.1
Right of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws,
if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor.
A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems
appropriate, among (i) itself, (ii) its Affiliates and (iii) its beneficial interest holders, such as limited partners, members
or any other Person having “beneficial ownership,” as such term is defined in Rule 13d-3 promulgated under the Exchange
Act, of such Major Investor (“Investor Beneficial Owners”); provided that each such Affiliate or Investor
Beneficial Owner (x) is not a Competitor or FOIA Party, unless such party’s purchase of New Securities is otherwise consented
to by the Board of Directors, (y) agrees to enter into this Agreement and each of the Voting Agreement and Right of First Refusal
and Co-Sale Agreement of even date herewith among the Company, the Investors and the other parties named therein, as an “Investor”
under each such agreement (provided that any Competitor or FOIA Party shall not be entitled to any rights as a Major Investor
under Subsections 3.1, 3.2 and 4.1 hereof), and (z) agrees to purchase at least such number of New Securities
as are allocable hereunder to the Major Investor holding the fewest number of Series A Preferred Stock and any other Derivative
Securities.

 

(a)
The Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention
to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.

 

(b)
By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase
or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which
equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable
(directly or indirectly) upon conversion and/or exercise, as applicable, of the Series A Preferred Stock and any other Derivative
Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion
and/or exercise, as applicable, of all Series A Preferred Stock and any other Derivative Securities then outstanding). At the
expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire
all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure
to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor
may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to
that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the
Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon
conversion and/or exercise, as applicable, of Series A Preferred Stock and any other Derivative Securities then held, by such
Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or
exercise, as applicable, of the Series A Preferred Stock and any other Derivative Securities then held, by all Fully Exercising
Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Subsection 4.1(b) shall
occur within the later of one hundred twenty (120) days of the date that the Offer Notice is given and the date of initial sale
of New Securities pursuant to Subsection 4.1 (c).

 

    	14

    	 

    

 

(c)
If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection
4.1(b), the Company may, during the ninety (90) day period following the expiration of the periods provided in Subsection
4.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less
than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter
into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty
(30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not
be offered unless first reoffered to the Major Investors in accordance with this Subsection 4.1.

 

(d)
The right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate
of Incorporation); (ii) shares of Common Stock issued in the IPO; (iii) the issuance of shares of Series A Preferred Stock to
Additional Purchasers pursuant to Subsection 1.3 of the Purchase Agreement or any Warrant Purchase Agreement (as defined
in the Purchase Agreement).

 

(e)
Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this Subsection 4.1,
the Company may elect to give notice to the Major Investors within thirty (30) days after the issuance of New Securities. Such
notice shall describe the type, price, and terms of the New Securities. Each Major Investor shall have twenty (20) days from the
date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor,
maintain such Major Investor’s percentage-ownership position, calculated as set forth in Subsection 4.1(b) before
giving effect to the issuance of such New Securities.

 

4.2
Termination. The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i)
immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements
of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon the closing of a Deemed Liquidation Event, as such term is defined
in the Certificate of Incorporation, whichever event occurs first.

 

5.
Additional Covenants. 

 

5.1
Insurance. The Company shall obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers
Directors and Officers liability insurance in an amount and on terms and conditions satisfactory to the Board of Directors, and
will use commercially reasonable efforts to cause such insurance policies to be maintained until such time as the Board of Directors
determines that such insurance should be discontinued. The policy shall not be cancelable by the Company without prior approval
by the Board of Directors including the Series A Director. Notwithstanding any other provision of this Section 5.1 to the
contrary, for so long as a Series A Director (as defined in the Certificate of Incorporation) is serving on the Board of Directors,
the Company shall not cease to maintain a Directors and Officers liability insurance policy in an amount of at least three (3)
million unless approved by such Series A Director. 

 

5.2 Employee
Agreements. The Company will cause (i) each Person now or hereafter employed by it or by any subsidiary (or engaged by
the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade
secrets to enter into a nondisclosure and proprietary rights assignment agreement; and (ii) each Key Employee to enter into a
one (1) year noncompetition, to the extent legally permissible, and nonsolicitation agreement, substantially in the form
approved by the Board of Directors. In addition, the Company shall not amend, modify, terminate, waive, or otherwise alter,
in whole or in part, any of the above-referenced agreements or any restricted stock agreement between the Company and any
employee, without the consent of the Series A Directors. 

 

    	15

    	 

    

 

5.3 Employee
Stock. Unless otherwise approved by the Board of Directors, all future employees and consultants of the Company who
purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after the date hereof
shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a
four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of
continued employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six
(36) months, and (ii) a market stand-off provision substantially similar to that in Subsection 2.9. Without the prior
approval by the Board of Directors, the Company shall not amend, modify, terminate, waive or otherwise alter, in whole or in
part, any stock purchase, stock restriction or option agreement with any existing employee or service provider if such
amendment would cause it to be inconsistent with this Subsection 5.3. In addition, unless otherwise approved by the Board of
Directors, the Company shall retain (and not waive) a “right of first refusal” on employee transfers until the
Company’s IPO and shall have the right to repurchase unvested shares at cost upon termination of employment of a holder
of restricted stock. 

 

5.4 Matters
Requiring Investor Director Approval. So long as the holders of Series A Preferred Stock are entitled to elect a Series A
Director, the Company hereby covenants and agrees with each of the Investors that it shall not, without approval of the Board
of Directors, which approval must include the affirmative vote of the Series A Director: 

 

(a)
otherwise enter into or be a party to any transaction with any director, officer, or employee of the Company or any “associate”
(as defined in Rule 12b-2 promulgated under the Exchange Act) of any such Person, including without limitation any “management
bonus” or similar plan providing payments to employees in connection with a Deemed Liquidation Event, as such term is defined
in the Certificate of Incorporation, except for transactions contemplated by this Agreement, the Purchase Agreement (including
the Warrant Purchase Agreement), and transactions resulting in payments to or by the Company in an aggregate amount less than
$60,000 per year; or transactions made in the ordinary course of business and pursuant to reasonable requirements of the Company’s
business and upon fair and reasonable terms that are approved by a majority of the Board of Directors;

 

5.5 Board
Matters. Unless otherwise determined by the vote of a majority of the directors then in office, the Board of Directors
shall meet at least quarterly in accordance with an agreed-upon schedule. The Company shall reimburse the nonemployee
directors for all reasonable out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in
connection with attending meetings of the Board of Directors. 

 

5.6
Successor Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other
Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary,
proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with
respect to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such
obligations are contained in the Company’s Bylaws, the Certificate of Incorporation, or elsewhere, as the case may be. 

 

    	16

    	 

    

 

5.7 Indemnification
Matters. The Company hereby acknowledges that one (1) or more of the directors nominated to serve on the Board of
Directors by the Investors (each an “Investor Director”) may have certain rights to indemnification,
advancement of expenses and/or insurance provided by one or more of the Investors and certain of their Affiliates
(collectively, the “Investor Indemnitors”). The Company hereby agrees (a) that it is the indemnitor of
first resort (i.e., its obligations to any such Investor Director are primary and any obligation of the Investor
Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Investor
Director are secondary), (b) that it shall be required to advance the full amount of expenses incurred by such Investor
Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement
by or on behalf of any such Investor Director to the extent legally permitted and as required by the Company’s
Certificate of Incorporation or Bylaws of the Company (or any agreement between the Company and such Investor Director),
without regard to any rights such Investor Director may have against the Investor Indemnitors, and, (c) that it irrevocably
waives, relinquishes and releases the Investor Indemnitors from any and all claims against the Investor Indemnitors for
contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no
advancement or payment by the Investor Indemnitors on behalf of any such Investor Director with respect to any claim for
which such Investor Director has sought indemnification from the Company shall affect the foregoing and the Investor
Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of
the rights of recovery of such Investor Director against the Company. The Investor Directors and the Investor Indemnitors are
intended third-party beneficiaries of this Subsection 5.7 and shall have the right, power and authority to enforce the
provisions of this Subsection 5.7 as though they were a party to this Agreement. 

 

5.8
Right to Conduct Activities. The Company hereby agrees and acknowledges that 22NW, LP (together with its Affiliates, “22NW”)
is a professional investment organization, and as such reviews the business plans and related proprietary information of many
enterprises, some of which may compete directly or indirectly with the Company’s business (as currently conducted or as
currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, 22NW shall not
be liable to the Company for any claim arising out of, or based upon, (i) the investment by 22NW in any entity competitive with
the Company, or (ii) actions taken by any partner, officer, employee or other representative of 22NW to assist any such competitive
company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise,
and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve
(x) any of the Investors from liability associated with the unauthorized disclosure of the Company’s confidential information
obtained pursuant to this Agreement, or (y) any director or officer of the Company from any liability associated with his or her
fiduciary duties to the Company. 

 

5.9 Termination
of Covenants. The covenants set forth in this Section 5, except for Subsections 5.6, and 5.7, shall
terminate and be of no further force or effect (i) immediately before the consummation of the IPO or (ii) when the Company
first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a
Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever event occurs
first. 

 

6. Miscellaneous.

 

6.1 Successors
and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a
transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s
Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder’s
Immediate Family Members; or (iii) after such transfer, holds at least 100,000 shares of Registrable Securities (subject to
appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations); provided, however,
that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address
of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such
transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of
this Agreement, including the provisions of Subsection 2.9. For the purposes of determining the number of shares of
Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a
Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust
for the benefit of an individual Holder or such Holder’s Immediate Family
Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who
would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single
attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The
terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted
assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under
or by reason of this Agreement, except as expressly provided herein. 

 

    	17

    	 

    

 

6.2 Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law
principles that would result in the application of any law other than the law of the State of Delaware. 

 

6.3
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com)
or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes. 

 

6.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in
construing or interpreting this Agreement. 

 

6.5
Notices. 

 

(a)
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic
mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the
recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight
courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company
and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or
address as subsequently modified by written notice given in accordance with this Subsection 6.5. If notice is given to
the Company, a copy shall also be sent to Faber Daeufer & Itrato PC, 890 Winter Street, Suite 315, Waltham, MA 02451.

 

(b)
Consent to Electronic Notice. Each Investor and Key Holder consents to the delivery of any stockholder notice pursuant
to the Delaware General Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic transmission
pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number set forth
below such Investor’s or Key Holder’s name on the Schedules hereto, as updated from time to time by notice to the
Company, or as on the books of the Company. To the extent that any notice given by means of electronic transmission is returned
or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected electronic
mail address has been provided, and such attempted Electronic Notice shall be ineffective and deemed to not have been given. Each
Investor and Key Holder agrees to promptly notify the Company of any change in such stockholder’s electronic mail address,
and that failure to do so shall not affect the foregoing.

 

    	18

    	 

    

 

6.6 Amendments
and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this
Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with
the written consent of the Company and the holders of at least a majority of the Registrable Securities then outstanding; provided
that the Company may in its sole discretion waive compliance with Subsection 2.10(c) (and the Company’s failure
to object promptly in writing after notification of a proposed assignment allegedly in violation of Subsection 2.10(c)
shall be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on
such party’s own behalf, without the consent of any other party.
Notwithstanding the foregoing, (a) this Agreement may not be amended, modified or terminated and the observance of any term
hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment,
modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the
provisions of Section 4 with respect to a particular transaction shall be deemed to apply to all Investors in the same
fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement
with the Company, purchase securities in such transaction) and (b) Subsections 3.1 and 3.2, Section 4
and any other section of this Agreement applicable to the Major Investors (including this clause (b) of this Subsection
6.6) may not be amended, modified, terminated or waived without the written consent of the holders of at least a majority
of the Registrable Securities then outstanding and held by the Major Investors. Further, this Agreement may not be amended,
modified or terminated, and no provision hereof may be waived, in each case, in any way which would adversely affect the
rights of the Key Holders hereunder in a manner disproportionate to any adverse effect such amendment, modification,
termination or waiver would have on the rights of the Investors hereunder, without also the written consent of the holders of
at least a majority of the Registrable Securities held by the Key Holders then providing servies to the Company as offiers,
directors, employees or consultants. Notwithstanding the foregoing, Schedule A hereto may be amended by the Company
from time to time to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the
consent of the other parties; and Schedule A hereto may also be amended by the Company after the date of this
Agreement without the consent of the other parties to add information regarding any additional Investor who becomes a party
to this Agreement in accordance with Subsection 6.9. The Company shall give prompt notice of any amendment,
modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment,
modification, termination, or waiver. Any amendment, modification, termination, or waiver effected in accordance with this Subsection
6.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or
exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or
construed as a further or continuing waiver of any such term, condition, or provision. 

 

6.7 Severability.
In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this
Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid,
legal, and enforceable to the maximum extent permitted by law. 

 

6.8 Aggregation
of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such
rights as among themselves in any manner they deem appropriate. 

 

    	19

    	 

    

 

6.9 Additional
Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the
Company’s Series A Preferred Stock after the date hereof, whether pursuant to the Purchase Agreement or otherwise, any
purchaser of such shares of Series A Preferred Stock may become a party to this Agreement by executing and delivering an
additional counterpart signature page to this Agreement, and thereafter shall be deemed an “Investor” for all
purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such
additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an
“Investor” hereunder.

 

6.10 Entire
Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and
agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to
the subject matter hereof existing between the parties is expressly canceled. 

 

6.11 Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of
Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any
suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or
other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States
District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense,
or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding
is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or
the subject matter hereof may not be enforced in or by such court. 

 

Waiver
of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND
ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS
SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH
PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

6.12 Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such
nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or
default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this
Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

 

[Remainder
of Page Intentionally Left Blank]

 

    	20

    	 

    

 

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

 

	 	ANEBULO
    PHARMACEUTICALS, INC.
	 	 
	 	By:	 
	 	Name:
    	Joseph
    F. Lawler
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	INVESTOR:
	 	 
	 	22NW,
    LP
	 	 
	 	By:	 
	 	Name:
    	Aron
    English
	 	Title:	President

 

SIGNATURE
PAGE TO INVESTORS’
RIGHTS AGREEMENT

 

    	 

    	 

    

 

SCHEDULE
A

 

Investors

 

22NW,
LP

 

1455
NW Leary Way, Ste 400

Seattle,
WA 98107Exhibit
10.4

 

LICENCE
AGREEMENT

 

Dated

 

26
May 2020

 

(1)
Vernalis (R&D) Limited

 

(2)
Anebulo Pharmaceuticals, Inc.

  

    	 

    	 

    

 

CONTENTS

  

	 	 	Page
	 	 	 
	1	Definitions	2
	 	 	 
	2	Licence	12
	 	 	 
	3	Conduct
    of Development and Commercialisation	14
	 	 	 
	4	Diligence
    and Reporting	15
	 	 	 
	5	Fees,
    Milestone and Royalty Payments	17
	 	 	 
	6	Intellectual
    Property – Ownership	22
	 	 	 
	7	Intellectual
    Property – Prosecution and Maintenance	22
	 	 	 
	8	Representation,
    Warranties and Covenants	22
	 	 	 
	9	Indemnification
    and Liability	24
	 	 	 
	10	Confidentiality	26
	 	 	 
	11	Term
    and Termination	29
	 	 	 
	12	Consequences
    of Termination	30
	 	 	 
	13	Assignment
    and Change of Control	31
	 	 	 
	14	Dispute
    Resolution and Governing Law	31
	 	 	 
	15	Waiver	32
	 	 	 
	16	Severance
    of Terms	32
	 	 	 
	17	Entire
    Agreement/Variations	32
	 	 	 
	18	Notices	32
	 	 	 
	19	Counterparts	34
	 	 	 
	20	This
    Agreement not to Constitute a Partnership	34
	 	 	 
	21	Costs	34
	 	 	 
	22	Announcements	34
	 	 	 
	23	Anti-Bribery
    and Anti-Corruption	34
	 	 	 
	Schedule
    1 API	36
	 	 
	Schedule
    2 Vernalis Bank Details	37
	 	 
	Schedule
    3 V24343	

 

    	Page 1

    	 

    

 

This
Licence Agreement is made the 26th day of May, 2020

 

Between:

 

	(1)	Vernalis
    (R&D) Limited a company incorporated under the laws of England and Wales with company registration number 01985479
    whose registered office is at Granta Park, Great Abington, Cambridge, CB21 6GB, United Kingdom (“Vernalis”);
    and
	 	 
	(2)	Anebulo
    Pharmaceuticals, Inc. a company incorporated under the laws of the state of Delaware, U.S.A., whose corporate office is
    at c/o JFL Capital Management, 1415 Ranch Road 620 South, Suite 201, Lakeway, Texas 78734 (“Anebulo”).

 

Whereas:

 

	(A)	Vernalis
    is an R&D-based specialty biopharmaceutical company and is a world- leader in fragment and structure-based drug discovery.
	 	 
	(B)	Anebulo
    is a biotechnology company established to develop and commercialise pharmaceutical products.
	 	 
	(C)	Vernalis
    has discovered and developed a CB1 antagonist compound known as V24343 and owns and controls various data and know how relating
    thereto.
	 	 
	(D)	Anebulo
    wishes to develop and commercialise V24343 as a pharmaceutical product, and Vernalis wishes to grant Anebulo an exclusive
    licence under its data and know how relating to V24343 to do the same.

 

It
is now agreed as follows:

 

	 	1	Definitions

 

	 	1.1	In
    this Agreement the following definitions shall apply unless the context requires otherwise:
	 	 	 
	 	 	“Affiliate”
    means any company, partnership or other business entity that Controls, is Controlled by or is under common Control with either
    Party from time to time.
	 	 	 
	 	 	“Agreement”
                                         means this document and any and all schedules to it as may be varied from time to time
                                         in accordance with the provisions of this agreement.

         

        “Anebulo
        Arising IP” means Patent Rights and Know How Controlled by Anebulo after the Commencement Date at any time during
        the Term that cover or claim a Vernalis Licensed Compound or Licensed Product (in respect of Patent Rights), or are necessary
        or reasonably useful to Exploit (in respect of Know How) a Vernalis Licensed Compound or Licensed Product, but excluding
        Vernalis Licensed IP.

         

        “Anebulo
Background IP” means Patent Rights and Know How Controlled by Anebulo as at the Commencement Date that cover or claim
a Vernalis Licensed Compound or Licensed Product (in respect of Patent Rights), or are necessary or reasonably useful to Exploit
(in respect of Know How) a Vernalis Licensed Compound or Licensed Product, but excluding Vernalis Licensed IP. 

 

    	Page 2

    	 

    

 

	 	 	“Anebulo
                                         Indemnity Claim” has the meaning attributed to it in Clause 9.2.

         

        “Anebulo
        Indemnified Parties” has the meaning attributed to it in Clause 9.2.1.

         

        “Anebulo
        IP” means Anebulo Background IP and Anebulo Arising IP.

         

        “Anebulo
        Patent Rights” means those Patent Rights Controlled by Anebulo before, on or after the Commencement Date at
        any time during the Term which constitute Anebulo IP.

         

        “Annual”
        means per calendar year.

         

        “API”
        means the active pharmaceutical ingredient of the Vernalis Licensed

        Compound
        listed in Schedule 1.

         

	 	 	“Applicable
                                         Law” means any present or future law, regulation, directive, instruction, direction
                                         or rule of any Government Authority or Regulatory Authority including any amendment,
                                         extension or replacement thereof which is from time to time in force.

         

	 	 	“Business
                                         Day” means 9.00 am to 5.00 pm local time on a day other than a Saturday, Sunday,
                                         or a bank or other public holiday in England and Wales or the United States.

         

        “Combination
        Product” means a Licensed Product which also (a) contains a separate therapeutically active ingredient in addition
        to the Vernalis Licensed Compound; or (b) is administered as a combination therapy in combination with another pharmaceutical
        product.

         

        “Commencement
        Date” means the date stated at the start of this Agreement.

	 	 	 
	 	 	“Commercialisation”
    means all activities relating to the export, import, promotion, marketing (including pre-launch, post-launch marketing and
    marketing research), post approval clinical trials, detailing, distribution, pricing and reimbursement, storage, handling,
    preparation for sale, offering for sale and sale of a Licensed Product and customer service and support, adverse events reporting
    and interacting and communicating with Regulatory Authorities in relation to a Licensed Product. When used as a verb, “to
    Commercialise” and “Commercialising” means to engage in Commercialisation, and “Commercialised”
    has a corresponding meaning.

 

    	Page 3

    	 

    

 

	 	 	“Commercially
                                         Reasonable Efforts” means, with respect to the performance of Development or
                                         Commercialisation activities with respect to the Vernalis Licensed Compound or Licensed
                                         Product by Anebulo, directly or through its Affiliates or Sublicensees, the carrying
                                         out of such activities in a sustained and diligent manner using such efforts and resources
                                         as would be applied to the research, development and commercialisation of pharmaceutical
                                         products by a similarly situated biopharmaceutical company for compounds or products
                                         of similar market potential, profit potential and strategic value at a similar stage
                                         in development or product life, taking into consideration the payments due to Vernalis
                                         under this Agreement and all other relevant factors, including the nature of the product,
                                         expected and actual cost and time to develop, the clinical setting in which it is expected
                                         to be used, stage of development, mechanism of action, efficacy and safety relative to
                                         competitive products in or expected to be introduced into the marketplace, difficulties
                                         associated with technology transfer, process development, scale- up or manufacturing,
                                         safety issues, the nature and extent of market exclusivity (including patent coverage
                                         and regulatory exclusivity), expected and actual cost and likelihood of obtaining regulatory
                                         approval, and projected economic return. “Commercially Reasonable Efforts”
                                         shall be determined on a market-by-market and indication-by-indication basis, and will
                                         change over time, reflecting changes in the status of the product and the markets involved.

         

        “Confidentiality
        Agreement” means the confidentiality agreement between Vernalis and JFL Capital Management, LLC dated 29 January
        2020.

	 	 	 
	 	 	“Confidential
    Information” means (a) information disclosed by either Party to the other Party prior to the Commencement Date pursuant
    to the Confidentiality Agreement, to the extent such information is subject to the confidentiality obligations of that agreement
    (where for the purpose of this definition only, Anebulo as a Party shall include JFL Capital Management, LLC), which will
    be deemed the Confidential Information of the disclosing Party, (b) the terms of this Agreement, and any discussion regarding
    this transaction which will be the Confidential Information of both Parties (and each Party shall be treated as both a disclosing
    Party and receiving Party with respect thereto), (c) Vernalis Know How, which shall be the Confidential Information of Vernalis,
    (d) Know How comprising the Anebulo IP (but excluding Vernalis Know How), which shall be the Confidential Information of Anebulo,
    and (e) any technical, business, or other information, including (i) information relating to the scientific, regulatory or
    business affairs or other activities of a Party, and (ii) information relating to Vernalis Licensed Compound or Licensed Product,
    and any Exploitation of Vernalis Licensed Compound or Licensed Product, and any Know How with respect thereto, disclosed by
    or on behalf of one Party or its Affiliates to the other Party in connection with this Agreement, whether prior to, on, or
    after the Commencement Date, which shall be the Confidential Information of the disclosing Party.
	 	 	 
	 	 	“Control”
                                                         means (i) with respect the definition of “Affiliate” only, the ownership either directly or indirectly of 50% or
                                                         more of the issued share capital or any comparable equity or ownership interest with respect to a business entity or the
                                                         legal power to direct or cause the direction of the general management and policies of the party in question; or (ii) with
                                                         respect to any Know How and Patent Rights, that a Party has the legal authority or right (whether by ownership, license or
                                                         otherwise) to grant a license, sublicense, access or right to use (as applicable) under such Know How or Patent Rights to the
                                                         other Party on the terms and conditions set forth herein at the time of such grant, in each case without breaching the terms
                                                         of any agreement with a Third Party.

 

    	Page 4

    	 

    

 

	 	 	“Data
    Room” means the virtual data room maintained by Box.com with project name V24343.
	 	 	 
	 	 	“Development”
                                         means all activities related to research, pre-clinical and other non-clinical testing,
                                         test method development and stability testing, toxicology, formulation, process development,
                                         manufacturing scale-up, qualification and validation, quality assurance, quality control,
                                         clinical studies, including manufacturing in support thereof, statistical analysis and
                                         report writing, the preparation and submission of applications for Marketing Authorisations,
                                         the regulatory affairs with respect to the foregoing and all other activities necessary
                                         or reasonably useful or otherwise requested or required by a Regulatory Authority as
                                         a condition or in support of obtaining or maintaining a Marketing Authorisation. When
                                         used as a verb, “Develop” means to engage in Development.

         

        “Development
        Milestone” has the meaning attributed to it in Clause 5.2.1.

	 	 	 
	 	 	“Documents”
    means reports, research notes, charts, graphs, comments, computations, analyses, recordings, photographs, paper, notebooks,
    books, files, ledgers, records, tapes, discs, diskettes, CD-ROM, computer programs and documents thereof, computer information
    storage means, samples of material, other graphic or written data and any other media on which Know How can be permanently
    stored.
	 	 	 
	 	 	“EMA”
    means the European Medicines Agency or any successor agency thereto.
	 	 	 
	 	 	“Europe”
    means any country for which the EMA is responsible for the protection and promotion of public health through the evaluation
    and supervision of medicines for human use as at the Commencement Date or any additional country which may be added to the
    EMA’s remit from time to time but excluding the UK.
	 	 	 
	 	 	“Exploit”
    means to make, have made, use, have used, Develop, Commercialise, Manufacture, have Manufactured, hold, or keep (whether for
    disposal or otherwise), transport, distribute or otherwise dispose of any Vernalis Licensed Compound or Licensed Product.
	 	 	 
	 	 	“Field”
                                         means all human therapeutic, diagnostic and prophylactic indications.

         

        “First
        Commercial Sale” means, with respect to a Licensed Product and a country, the first sale for monetary value
        for use or consumption by any Third Party after a Marketing Authorisation (including any pricing and reimbursement approvals)
        is granted for such Licensed Product in such country. A sale of Licensed Product which is being tested or investigated
        for an indication not covered by a Marketing Authorisation for use in each case for free or at cost (of goods and commercially
        reasonable overheads) in a clinical trial, on a named patient basis or for compassionate use purposes shall not constitute
        a commercial sale for the purposes of this definition.

 

    	Page 5

    	 

    

 

	 	 	“Generic
Competition” means, with respect to the Licensed Products in any country in the Territory in a given Quarter, that,
during such Quarter, (a) one or more Generic Products are commercially available in such country, and (b) Net Sales of the Licensed
Products in such country in such Quarter equal less than seventy-five percent (75%) of the average Net Sales of the Licensed Products
over the four (4) consecutive Quarters immediately prior to the Quarter in which one or more Generic Products first became commercially
available in such country. 

	 	 	 
	 	 	“Generic
    Product” means with respect to a Licensed Product, any pharmaceutical product that (a) is sold by a Third Party
    that is not a Sublicensee (or any of its Affiliates) under a Marketing Authorisation granted by a Regulatory Authority to
    a Third Party; (b) contains as an active ingredient the same compound as a Licensed Product; and (c) (i) in the United States,
    is approved in reliance on the prior approval of such Licensed Product as determined by the applicable Regulatory Authority
    in the United States pursuant to Section 505(j) of the United States Food, Drug and Cosmetic Act (21 U.S.C. 355(j)), (ii)
    in the EEA , is authorised as a “generic” as defined in Article 10(2)(b) of Parliament and Council Directive 2001/83/EC
    as amended, or (iii) in any other country or jurisdiction, is approved pursuant to all equivalents of the provision described
    in (c)(i) or (c)(ii) above. A Licensed Product licensed or produced by a Sublicensee in compliance with its sublicense agreement
    will not constitute a Generic Product.
	 	 	 
	 	 	“Government
    Authority” means any national or supranational agency, authority, department of any government of any country having
    jurisdiction over any of the activities contemplated by this Agreement or over the Parties, including the European Commission.
	 	 	 
	 	 	“IND”
                                         means an Investigational New Drug application as defined in the FFDCA, or a clinical
                                         trial authorization application for a pharmaceutical product filed with a Regulatory
                                         Authority in any other regulatory jurisdiction outside the U.S., the filing of which
                                         is necessary to commence or conduct clinical testing of such pharmaceutical product in
                                         humans in such jurisdiction.

         

        “Indemnity
        Claim” has the meaning attributed to it in Clause 9.3.

	 	 	 
	 	 	“Indemnified
                                         Party” has the meaning attributed to it in Clause 9.3.

         

        “Indemnifying
        Party” has the meaning attributed to it in Clause 9.3.

	 	 	 
	 	 	“Know
    How” means technical and other information which is not in the public domain, including information comprising or
    relating to concepts, discoveries, data, designs, formulae, ideas, inventions, methods, models, assays, research plans, procedures,
    designs for experiments and tests and results of experimentation and testing (including results of research or development),
    processes (including Manufacturing processes, specifications and techniques), laboratory records, chemical, pharmacological,
    toxicological, clinical, analytical and quality control data, trial data, case report forms, data analyses, reports, Manufacturing
    data or summaries and information contained in submissions to and information from ethical committees and Regulatory Authorities.
    Know How includes Documents containing Know How, including but not limited to any rights including trade secrets, copyright,
    database or design rights protecting such Know How. The fact that an item is known to the public shall not be taken to preclude
    the possibility that a compilation including the item, or a development relating to the item, is not known to the public.

 

    	Page 6

    	 

    

  

	 	 	“Licensed
    Product” means any pharmaceutical product containing a Vernalis Licensed Compound in any and all forms, presentations,
    delivery systems, dosages, and formulations.
	 	 	 
	 	 	“Manufacture”
    and “Manufacturing” means all activities related to the production, manufacture, processing, filling, finishing,
    packaging, labelling, shipping, and holding of any Vernalis Licensed Compound, any Licensed Product, or any intermediate thereof,
    including process development, process qualification and validation, scale-up, pre-clinical, clinical and commercial manufacture
    and analytic development, product characterization, stability testing, quality assurance, and quality control.
	 	 	 
	 	 	“Marketing
    Authorisation” means the approval of an NDA or sNDA submitted to the Food and Drug Administration for the marketing
    of a Licensed Product in the United States, or with respect to any other country in the Territory, any and all approvals (including
    and pricing and reimbursement approvals) required from any Regulatory Authority to market a Licensed Product in that country.
	 	 	 
	 	 	“NDA”
                                         means a new drug application filed with the Food and Drug Administration for a Licensed
                                         Product in the USA, or any comparable application filed with the Regulatory Authorities
                                         of any other country in the Territory (or any Regulatory Authority covering that country
                                         in the case of a supranational Regulatory Authority) to obtain a Marketing Authorisation
                                         for that Licensed Product in that country.

                                                          

        “Net
        Sales” means the gross amounts invoiced by Anebulo, its Sublicensees or its or their Affiliates in arm’s
        length transactions to Third Parties, for all sales of Licensed Product less the following items to the extent that they
        are paid or actually allowed:

 

	 	(a)	quantity,
    trade or cash discounts or consumer discount programs actually granted for such Licensed Product;
	 	 	 
	 	(b)	amounts
    repaid or credited and allowances including cash, credit or free goods allowances, given by reason of chargebacks, retroactive
    price reductions or billing errors, reimbursements and rebates (including government-mandated rebates or other government
    charges, reimbursements or similar payments granted to wholesalers or other distributors, buying groups, health care insurance
    carriers or managed care entities) for such Licensed Product;
	 	 	 
	 	(c)	amounts
    refunded or credited for Licensed Product which was rejected, spoiled, damaged, outdated or returned;
	 	 	 
	 	(d)	charges
    for packing for transportation, freight, shipping and insurance;
	 	 	 
	 	(e)	non-collectible
    receivables for such Licensed Product; and

 

    	Page 7

    	 

    

 

	 	(f)	taxes,
    tariffs, customs duties and surcharges and other governmental charges incurred in connection with the sale, exportation or
    importation of Licensed Product,
	 	 	 
	 	provided
always that sums under (a) to (f) shall be calculated in accordance with generally accepted accounting principles, or international
financial reporting standards, consistently applied.

                                                                                           

The
transfer of Licensed Product by (i) Anebulo or a Sublicensee or one of its or their Affiliates to an Affiliate of such party,
(ii) Anebulo or its Affiliate to a Sublicensee or (iii) a Sublicensee to a further tier Sublicensee, shall not be considered a
sale. In such cases Net Sales shall be determined based on the invoiced sale price by the Affiliate (in the case of (i)), or the
Sublicensee (in the case of (ii)) or the further tier Sublicensee (in the case of (iii)) to the first third party arm’s-length
trade purchaser, less the deductions allowed under this definition.

 

Subject to the following paragraph, upon any
sale or other disposal of Licensed Product by or on behalf of Anebulo, Sublicensees or its or their Affiliates other than a bona
fide arm’s length transaction exclusively for money, such sale or other disposal shall be deemed to constitute a sale at
the then current average selling price in the country in which such sale or other disposal occurs or, if there is no current average
selling price, the most recent average selling price (and if none, a price agreed in good faith between the Parties assessed on
an arm’s length basis). Transfers or dispositions of Licensed Product by Anebulo or Sublicensees or its or their Affiliates
(i) as free promotional or advertising samples or charitable donations, or under its or their patient assistance programs, in
each case to the extent provided for no monetary or other consideration, and (ii) for free or at cost (of goods and commercially
reasonable overheads) for use in clinical trials, or provided on a named patient or compassionate use basis for an indication(s)
not covered by a Marketing Authorisation(s), shall not be considered in determining Net Sales under this definition provided that
in each case, such transfers or dispositions are in quantities common in the industry for the type of product in the relevant
country.

 

In
the event the Licensed Product is sold in a Combination Product, the Net Sales shall be determined as follows:

 

	 	A	 		
	 	A+B	 	X	Net
    Sales of the Combination Product, where:
	 	 	 	 	 
	 	A
    =	 	Average
    invoice price of the ready-for-sale form of a Licensed Product containing the same amount of Vernalis Licensed Compound as
    its sole active ingredient or ingredients as the Combination Product in question contains, in the given country for a given
    calendar quarter; and
	 	 	 	 
	 	B
    =	 	Average
    invoice price of the ready●for●sale form of a product containing the same amount of the other therapeutically active
    ingredient(s) as is contained in the Combination Product in question, in the given country for a given calendar quarter,

 

    	Page 8

    	 

    

  

	 	 	provided
    that if, in a specific country: (a) A is known but the other therapeutically active ingredient(s) in such Combination Product
    are not sold separately in that country in products with the same quantity of active ingredient, Net Sales shall be adjusted
    by multiplying actual Net Sales of such Combination Product by the fraction A/C, where C is the average invoice price in that
    country of that Combination Product for a given calendar quarter; or (b) B is known but a Licensed Product containing the
    same amount of such Vernalis Licensed Compound is not sold separately in that country, Net Sales shall be calculated by multiplying
    actual Net Sales of such Combination Product for such calendar quarter by the fraction (C-B)/C. If, in a specific country,
    A and B are not known, the allocation of Net Sales for such Combination Product shall be negotiated by the Parties in good
    faith.
	 	 	 
	 	 	“Party”
    means either Anebulo or Vernalis and “Parties” shall be construed accordingly.
	 	 	 
	 	 	“Patent
                                         Rights” means patent applications and patents, and all foreign counterparts
                                         thereof in all countries, including any renewals, re-examinations, continuations, continuations-in-part,
                                         divisionals, patents of addition, extensions, (including patent term extensions,) reissues,
                                         substitutions, confirmations, and any equivalents of the foregoing in any and all countries
                                         of or to any of them, as well as any supplementary protection certificates, and equivalent
                                         protection rights in respect of any of them.

         

        “Phase
        II Clinical Trial” means a human clinical trial where a product is tested for the purpose of determining an
        initial indication of efficacy of a product for a therapeutic or prophylactic use, or to perform dose ranging, or obtain
        expanded evidence of safety.

	 	 	 
	 	 	“Pivotal
                                         Clinical Trial” means a pivotal human clinical trial conducted in a sufficient
                                         number of patients to establish safety and efficacy in the particular indication tested,
                                         the data and results of which (if favourable) would be sufficient to obtain Marketing
                                         Authorisation in any country.

         

        “Publication”
        has the meaning attributed to it in Clause 22.

	 	 	 
	 	 	“Quarter”
                                         means each period of three months ending on 31 March, 30 June,

        30
        September or 31 December and “Quarterly” shall be construed accordingly.

	 	 	 
	 	 	“Regulatory
    Authority” means any national, supranational (including the European Commission, the Council of the European Union,
    and the EMA), regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity
    including the United States Food and Drug Administration, in each country involved in the granting of Marketing Authorisations
    or pricing approvals for Licensed Product.
	 	 	 
	 	 	“Regulatory
Exclusivity” means the marketing or data exclusivity conferred by any Regulatory Authority designed to restrict the
entry of Generic Product(s) onto the market, including new chemical entity exclusivity, new use or indication exclusivity, new
formulation exclusivity, orphan drug exclusivity, paediatric exclusivity and 180-day generic product exclusivity, or any equivalent
of the foregoing in any country in the world. 

 

    	Page 9

    	 

    

 

	 	 	 “Regulatory
Materials” means in respect of the Vernalis Licensed Compound, regulatory applications, filings, submissions, notifications,
registrations, , or other submissions, including any written correspondence or meeting minutes, made to, made with, or received
from any Regulatory Authority submitted to a Regulatory Authority in any country for the purpose of obtaining Marketing Authorisations
from that Regulatory Authority (including all INDs, NDAs, and associated common technical documents) and any amendments and supplements
thereto, and all data and other information contained in, and Regulatory Authority correspondence relating to, any of the foregoing.
For avoidance of doubt, Regulatory Materials include the INDs concerning the Vernalis Licensed Compound, and amendments and supplements
thereto.

         

        “Reversion
        Assets” has the meaning attributed to it in Clause 12.2.1.

         

        “Reversion
        Transfer” has the meaning attributed to it in Clause 12.2.1

	 	 	 
	 	 	“Royalty
    Term” has the meaning attributed to it in Clause 5.4.3.
	 	 	 
	 	 	“Royalties”
    has the meaning attributed to it in Clause 5.4.1.
	 	 	 
	 	 	“sNDA”
    means a supplemental new drug application filed with the Food and Drug Administration to obtain a supplemental Marketing Authorisation
    for a Licensed Product in the USA, or any comparable application filed with the Regulatory Authorities of any other country
    (or any Regulatory Authority covering that country in the case of a supranational Regulatory Authority) to obtain a supplemental
    Marketing Authorisation for a Licensed Product in or covering that country.
	 	 	 
	 	 	“Sublicensee”
    has the meaning attributed to it in Clause 2.2.1.
	 	 	 
	 	 	“Territory”
    means the world.
	 	 	 
	 	 	“Term”
    has the meaning attributed to it in Clause 11.1.
	 	 	 
	 	 	“Third
    Party” means a person or entity other than (a) Anebulo or (b) Vernalis or an Affiliate of either of them.
	 	 	 
	 	 	“UK
                                         GAAP” means the generally accepted accounting practice in the United Kingdom
                                         as developed and maintained by the UK’s Financial Reporting Council or any successor
                                         body thereto.

         

        “USD”
        means United States Dollars.

	 	 	 
	 	 	“VAT”
    means United Kingdom value added tax imposed in accordance with the United Kingdom Value Added Tax Act 1994 or any similar
    tax imposed in addition to or in substitution therefor or imposed in any other jurisdiction.
	 	 	 
	 	 	“V24343”
means the molecule and structure further described at Schedule 3 and any metabolite, salt, ester, hydrate, solvate, isomer, enantiomer,
free acid form, pro-drug (including ester pro-drug) form, racemate, polymorph, chelate, stereoisomer, tautomer, resinate or optically
active form thereof. 

 

    	Page 10

    	 

    

 

	 	 	“Vernalis
Indemnity Claim” has the meaning attributed to it in Clause 9.1. “Vernalis Indemnified Parties” has
the meaning attributed to it in Clause 9.1.1.

	 	 	 
	 	 	“Vernalis
                                         Know How” means all Know How Controlled by Vernalis at the Commencement Date
                                         that is necessary or reasonably useful to Exploit any Vernalis Licensed Compound or Licensed
                                         Product.

         

        “Vernalis
        Licensed Compound” means V24343.

         

        “Vernalis
        Licensed Compound Information” has the meaning attributed to it in Clause 3.5.

         

        “Vernalis
        Licensed IP” means any and all Vernalis Know How including the Vernalis Regulatory Materials and Vernalis Licensed
        Compound Information.

         

        “Vernalis
        Regulatory Materials” has the meaning attributed to it in Clause 3.5.

 

	 	1.2	Interpretation
	 	 	 	 
	 	 	Unless
    the context otherwise requires, the following rules of interpretation shall apply to this Agreement:
	 	 	 	 
	 	 	1.2.1	The
    headings in this Agreement are inserted for convenience only and shall not affect its construction.
	 	 	 	 
	 	 	1.2.2	Any
    and all Schedules to this Agreement form part of (and are incorporated into) this Agreement.
	 	 	 	 
	 	 	1.2.3	Any
    words following the terms “including”, “include” or any similar expression shall be construed as illustrative
    and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.
	 	 	 	 
	 	 	1.2.4	The
    word “or” has the inclusive meaning represented by the phrase “and/or”.
	 	 	 	 
	 	 	1.2.5	Words
    in the singular include the plural and in the plural include the singular.
	 	 	 	 
	 	 	1.2.6	Use
    of any gender includes the other genders and neuter.
	 	 	 	 
	 	 	1.2.7	References
    to “Clauses” and “Schedules” are to clauses of, and schedules to, this Agreement.

 

    	Page 11

    	 

    

 

	 	1.2.8	References
    to a “person” shall be construed so as to include:
	 	 	 	 
	 	 	(a)	any
    individual, firm, body corporate, authority, joint venture, association, undertaking, partnership or limited partnership (whether
    or not having separate legal personality); and
	 	 	 	 
	 	 	(b)	a
    reference to the successors, permitted transferees and permitted assignees of any of the persons referred to in Clause 1.2.8(a).
	 	 	 	 
	 	1.2.9	References
    to “written” or “writing” shall include all data in written form whether represented in hand-writing,
    facsimile, printed.
	 	 	 
	 	1.2.10	Any
    express obligation or liability of a Party to ensure or procure the performance of any obligation by any other person shall
    not be reduced or discharged by any act or omission of any other person.
	 	 	 
	 	1.2.11	References
    to any indemnity being given on an “after-tax basis” mean that the amount payable pursuant to that indemnity shall
    be calculated in such a manner as will ensure that, after taking into account:
	 	 	 	 
	 	 	(a)	any
    tax (or amount in respect of tax) required to be deducted or withheld from the indemnity payment; and
	 	 	 	 
	 	 	(b)	any
    other tax chargeable as a result of the making or receipt of the indemnity payment,
	 	 	 	 
	 	 	the
    person entitled to the benefit of the indemnity is left with the same net amount as it would have had in the absence of such
    deduction, withholding or other tax.

 

	 	2	Licence
	 	 	 	 
	 	2.1	Licence
    Grant
	 	 	 	 
	 	 	2.1.1	Subject
    to the terms of this Agreement, Vernalis hereby grants to Anebulo an exclusive, royalty-bearing licence (with the right to
    grant sublicenses pursuant to Section 2.2) under the Vernalis Licensed IP to Exploit the Vernalis Licensed Compounds and the
    Licensed Products in the Field in the Territory.
	 	 	 	 
	 	 	2.1.2	Vernalis
    hereby grants to Anebulo (and its Affiliates and Sublicensees) access to, and a right of reference with respect to, any Regulatory
    Materials, to the extent Controlled by Vernalis at the Commencement Date, for the purposes of Exploiting the Vernalis Licensed
    Compound and Licensed Products in the Field in the Territory. Vernalis agrees to execute, acknowledge, and deliver any further
    documents or instruments and to perform all such other acts as may be reasonably necessary or appropriate in order to effect
    such right of reference.

 

    	Page 12

    	 

    

 

	 	 	2.1.3	The
    licence granted in Clause 2.1.1 has been made exclusive on the following basis (i) the parties believe, in good faith, that
    the licence will facilitate the introduction of a new pharmaceutical drug in the Territory; (ii) the parties believe there
    is a high risk of failure in respect of the commercial viability of the Development contemplated by this Agreement, because
    it involves development and regulatory approval of a new drug, the safety and efficacy of which is not yet known; (iii) in
    order to obtain necessary regulatory approvals and to develop a commercially marketable Licensed Product, Anebulo will be
    obliged to finance and support substantial research, including development of Anebulo Arising IP, which will require Anebulo
    and/or its Affiliates and Sublicensees to make a large investment of time and capital; (iv) in order to Manufacture and market
    a Licensed Product, Anebulo will be obliged to make a considerable investment in product development, clinical testing, and
    tooling-up or re-tooling of existing facilities and to accommodate an attendant period of lead-time; and (v) the investments
    referred to in (iii) and (iv) may ultimately result in no appreciable return to Anebulo.
	 	 	 	 
	 	2.2	Sublicensing
	 	 	 	 
	 	 	2.2.1	Anebulo
    shall be entitled to sublicense (including through multiple tiers) the rights granted to it under Clause 2.1 above to any
    person with similar or greater financial resources and expertise as Anebulo, provided such person is not developing or commercialising
    any product (whether a pipeline asset or a marketed product) which (i) contains a CB1 antagonist or (ii) is for the same indication
    covered or proposed to be covered by a Phase II Clinical Trial, a Pivotal Clinical Trial, an application for a Marketing Authorisation
    or a granted Marketing Authorisation for the Licensed Product. If Anebulo or a Sublicensee wishes to grant a sub-license to
    any person that does not meet the above criteria then it shall not do so without Vernalis’ prior written consent (such
    consent not to be unreasonably withheld or delayed). Any person to which Anebulo grants a sublicence and to which any further
    tiers of sublicence are granted, each pursuant to this Clause 2.2.1, shall be a “Sublicensee”. In the event
    that Anebulo grants one or more sublicences pursuant to Clause 2.2.1, Anebulo shall remain responsible for all of its obligations
    under this Agreement and shall cause each Sublicensee to comply with the applicable terms and conditions of this Agreement.
    If the acts or omissions of any Sublicensee cause Anebulo to be in breach of this Agreement, Anebulo shall be responsible
    for such breach regardless of any remedy which either (a) Vernalis may have against the Sublicensee or (b) Anebulo may have
    against the Sublicensee for breach of the sublicense; provided, however, that if default by a Sublicensee of its material
    obligations gives rise to Vernalis’ right of termination under this Agreement, Vernalis shall not be entitled to terminate
    this Agreement if, within sixty (60) days after receipt of written notice thereof from Vernalis (or thirty (30) days in the
    case of breach of a payment obligation), Anebulo has either (i) caused such Sublicensee to take actions to cure such default,
    or (ii) terminated its sublicense agreement with such Sublicensee and taken actions to cure such default. Any such permitted
    sublicences shall be consistent with and expressly made subject to the terms and conditions of this Agreement. Anebulo shall
    provide a copy of any sublicence agreement executed by Anebulo or any Sublicensee to Vernalis within ten (10) Business Days
    of its execution, (which copy may be redacted  to delete information not relevant to determining whether such sublicense
    is consistent with the provisions of this Agreement).

 

    	Page 13

    	 

    

 

	 	 	2.2.2	In
    the event of termination of this Agreement with respect to any Vernalis Licensed Compound or Licensed Product, any sublicence
    granted by Anebulo pursuant to Clause 2.2.1 shall automatically terminate. In event of such termination, any Sublicensee that
    Anebulo notifies to Vernalis in writing is in good standing under its sublicense agreement with Company will have the right
    to request a new direct license with Vernalis on substantially the same terms and conditions as those in this Agreement and
    Vernalis agrees to consider such request and negotiate any license in good faith, provided that Vernalis shall have no obligation
    to grant any such license or assume or agree to any additional obligations beyond those set forth in this Agreement.
	 	 	 	 
	 	2.3	No
    Other Rights Granted by Vernalis
	 	 	 	 
	 	 	Except
    as expressly provided in this Clause 2, Vernalis grants no other right or licence, including any rights or licences to the
    Vernalis Licensed IP or any other Know How or intellectual property rights not otherwise expressly granted in this Clause
    2.
	 	 	 	 
	 	3	Conduct
    of Development and Commercialisation
	 	 	 	 
	 	3.1	API
    Purchase
	 	 	 	 
	 	 	Anebulo
    shall have the right (but not the obligation) to purchase the API from Vernalis on an “as is” basis with no product
    warranties as to quality, fitness for purpose or anything else for the sum of twenty thousand USD ($20,000). If Anebulo wishes
    to exercise this right Anebulo must notify Vernalis in writing within six (6) months of the Commencement Date and the API
    will be supplied upon delivery terms to be agreed before the API is shipped Vernalis shall issue an invoice for the amount
    due and Anebulo shall pay such amount within thirty (30) days of the invoice date, to the bank account stipulated at Schedule
    2 or such other bank account as Vernalis may notify to Anebulo from time to time.
	 	 	 	 
	 	3.2	Decision
    Making and Costs
	 	 	 	 
	 	 	As
    between the Parties, all decisions relating to the Exploitation of any Vernalis Licensed Compounds and Licensed Product shall
    be in the sole discretion of Anebulo and shall be carried out by Anebulo or its Sublicensees and they shall be responsible
    for all costs and expenses in connection with the Exploitation of Vernalis Licensed Compound and Licensed Product.
	 	 	 	 
	 	3.3	Compliance
    with Applicable Law
	 	 	 	 
	 	 	Anebulo
    shall, and shall cause its Sublicensees to, comply with all Applicable Law with respect to the Exploitation of Vernalis Licensed
    Compounds and Licensed Products.

 

    	Page 14

    	 

    

 

	 	3.4	Marketing
    Authorisations
	 	 	 	 
	 	 	Anebulo
    or its Sublicensees shall have the sole right and responsibility for conducting communications with Regulatory Authorities
    with respect to Licensed Product in the Territory, and for preparing, submitting, prosecuting and maintaining all filings
    and applications required to be made to any Regulatory Authority to obtain any necessary or commercially desirable Marketing
    Authorisations and other approvals, consents or licences to Exploit Licensed Products, including any filings and applications
    to any Regulatory Authority for any pricing or reimbursement approval required or commercially desirable. Anebulo or its Sublicensees
    shall, respectively, own all right, title and interest in all the filings and applications made to, and all the approvals,
    consents or licences issued by, any Regulatory Authority and they shall be responsible for all costs and expenses in connection
    with clinical trials and securing regulatory approvals.
	 	 	 	 
	 	3.5	Transfer
    of Regulatory Materials and Other Data.
	 	 	 	 
	 	 	For
    a period of six (6) months from the Commencement Date Anebulo shall have access to the Regulatory Materials Controlled by
    Vernalis stored in the Data Room to print, download or otherwise transfer (the “Vernalis Regulatory Materials”)
    including any study reports that are owned or Controlled by Vernalis from all non-clinical trials and clinical trials for
    the Vernalis Licensed Compounds and Licensed Products (the “Vernalis Licensed Compound Information”). During
    that six (6) month period Vernalis will provide reasonable assistance to Anebulo with respect to questions it may have on
    the Vernalis Regulatory Materials and/or the Vernalis Licensed Compound Information and provide access to such additional
    supporting information that is in existence and Controlled by Vernalis as Anebulo may reasonably request provided that Vernalis
    shall have no obligation to create new data or documents for this purpose.

 

	 	4	Diligence
    and Reporting
	 	 	 	 	 
	 	4.1	Diligence
	 	 	 	 	 
	 	 	4.1.1	Anebulo
    shall use Commercially Reasonable Efforts to Exploit the Vernalis Licensed Compound or Licensed Product, at its own cost and
    expense, including to obtain and maintain Marketing Authorisations and any necessary or desirable pricing or reimbursement
    approvals for one or more Licensed Products in the Field throughout the Territory, and to maximise sales for the benefit of
    all Parties. The Parties agree that Anebulo’s diligence obligations under this Agreement shall be deemed satisfied through
    use of Commercially Reasonable Efforts to Exploit the Vernalis Licensed Compound or Licensed Product in at least i) the USA
    or ii) each of the UK, France, Germany, Spain and Italy .
	 	 	 	 	 
	 	 	4.1.2	Without
    limitation to the foregoing, Anebulo shall use Commercially Reasonable Efforts (and shall keep Vernalis fully informed of
    such efforts) to, in each case, within the time period set forth below with respect to each obligation:
	 	 	 	 
	 	 	 	(a)	dose
    a patient as part of a Phase II Clinical Trial of Licensed Product in the Field in the Territory within twenty-four (24) months
    of the Commencement Date; and

 

    	Page 15

    	 

    

 

	 	 	 	(b)	dose
    a patient as part of a Pivotal Clinical Trial of Licensed Product in the Field in the Territory within forty-eight (48) months
    of the Commencement Date.
	 	 	 	 	 
	 	 	4.1.3	At
    the request of Anebulo the time periods specified in Clause 4.1.2(a) and/or Clause 4.1.2(b) can be extended by a further twelve
    (12) months in return for the payment by Anebulo to Vernalis of one hundred thousand USD ($100,000) for each such extension.
    If Anebulo wishes to extend either of these periods it must notify Vernalis in writing before the expiry of the relevant period
    whereupon Vernalis shall issue an invoice for the amount due and Anebulo shall pay such amount within thirty (30) days of
    the invoice date, to the bank account stipulated at Schedule 2 or such other bank account as Vernalis may notify to Anebulo
    from time to time.

 

	 	4.2	Records
	 	 	 	 
	 	 	Anebulo
    shall maintain records in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes,
    and in compliance with Applicable Law, which shall be materially complete and accurate and shall properly reflect all work
    done and results achieved in the performance of its Development and Commercialisation activities. Such records shall be retained
    by Anebulo for such period as may be required by Applicable Law.
	 	 	 	 
	 	4.3	Reports
    and requests for additional information
	 	 	 	 
	 	 	4.3.1	Upon
    the first anniversary of the Commencement Date and thereafter at least once every 12 months with respect to each Licensed
    Product and Vernalis Licensed Compound, Anebulo shall provide Vernalis with a detailed report summarizing the Development
    and Commercialisation activities that it, together with each Affiliate and Sublicensee, has performed, or caused to be performed,
    since the preceding report, and the future activities it expects it and them to initiate during the ensuing 12 month period
    and shall answer any questions Vernalis may have on such report.
	 	 	 	 
	 	 	4.3.2	Anebulo
    shall notify Vernalis within thirty (30) days after the grant of a Marketing Authorisation.
	 	 	 	 
	 	 	4.3.3	If
    at any time Vernalis has a reasonable basis to believe that Anebulo is in breach of its obligations under Clause 4.1, then
    Vernalis shall so notify Anebulo, specifying the basis for its belief and, without limitation to any other right or remedy
    available to Vernalis hereunder, at Vernalis’ request, the Parties shall meet within thirty (30) days after such notice
    to discuss in good faith Vernalis’ concerns with respect to each Licensed Product and Vernalis Licensed Compound.
	 	 	 	 
	 	4.4	Breach
    shall constitute material breach
	 	 	 	 
	 	 	Vernalis
    shall be entitled to treat any breach by Anebulo of its obligations under Clause 4.1 as a material breach of this Agreement
    for the purposes of Clause 11.2.1. 

 

    	Page 16

    	 

    

 

	 	5	Fees,
    Milestone and Royalty Payments
	 	 	 	 
	 	5.1	Signature
    Fee
	 	 	 	 
	 	 	Within
    five (5) Business Days of the execution of this Agreement, Anebulo shall pay to Vernalis a non-refundable signature fee of
    one hundred and fifty thousand USD ($150,000).
	 	 	 
	 	5.2	Development
    Milestones
	 	 	 	 
	 	 	5.2.1	Anebulo
    shall pay to Vernalis each of the following non-refundable amounts for the Licensed Product when it achieves the relevant
    milestone event set out below (each a “Development Milestone”).

 

	Milestone	 	Payment
    Obligation Upon Achievement of a Development Milestone
	1	Dosing
    of the first patient in the first Phase II Clinical Trial for a Licensed Product	 	Three
    hundred and fifty thousand USD ($350,000) once only
	 	 	 	 
	2	Dosing
    of the first patient in the first Pivotal Clinical Trial for a Licensed Product	 	One
    million USD ($1,000,000) once only
	 	 	 	 
	3	Acceptance
    for filing of a Marketing Authorisation by the relevant Regulatory Authority in Europe, the UK, the USA, China or Japan	 	Five
    hundred thousand ($500,000) for each of the first three such acceptances
	 	 	 	 
	4	Grant
    of a Marketing Authorisation for a Licensed Product in the USA	 	Three
    million USD ($3,000,000) for each of the first three such grants
	 	 	 	 
	5	Grant
    of a Marketing Authorisation for a Licensed Product covering a European country or the UK	 	Three
    million USD ($3,000,000) for each of the first three such grants
	 	 	 	 
	6	Grant
    of a Marketing Authorisation for a Licensed Product in China or Japan	 	Three
    million USD ($3,000,000) for each of the first three such grants

 

	 	 	5.2.2	The
    total development milestone payments for which Anebulo may be obligated to pay Vernalis under this Agreement is twenty-nine
    million eight hundred and fifty thousand USD ($29,850,000).

 

    	Page 17

    	 

    

 

	 	 	5.2.3	The
amount stipulated as payable for each Development Milestone in the table above shall be payable by Anebulo to Vernalis in accordance
with Clause 5.2.4for the number of occurrences set out in Clause 5.2.1, irrespective of the number of Licensed Products or the
number of times a Development Milestone is achieved beyond this number, whether by Anebulo alone or in combination with or by
one or more Affiliates or Sublicensees. Where the regulatory process for a Licensed Product is accelerated such that a particular
Development Milestone in any of rows 1-2 in the table above is not required by the relevant Regulatory Authority, the payment
in respect of such Development Milestone(s) shall become due and payable upon the occurrence of the next Development Milestone
in the table above. If either of the Development Milestones in rows 1-2 of the table above has not been paid at the time of filing
of the first Marketing Authorisation in any of the USA, Europe, the UK, China or Japan then such Development Milestones shall
become due and payable immediately. 

	 	 	 	 
	 	 	5.2.4	Anebulo
    shall provide Vernalis with written notice promptly upon each occurrence of the achievement of a Development Milestone for
    which a payment is due to Vernalis pursuant to Clause 5.2.1. On such occurrence, Vernalis shall issue an invoice for the amount
    due and Anebulo shall pay such amount within thirty (30) days of such occurrence, to the bank account stipulated at Schedule
    2 or such other bank account as Vernalis may notify to Anebulo from time to time.
	 	 	 	 
	 	5.3	Sales
    Milestones
	 	 	 	 
	 	 	5.3.1	Anebulo
    shall pay to Vernalis each of the following non-refundable amounts if a Licensed Product achieves the relevant milestone event
    set out below (each a “Sales Milestone”).

 

	Sales
    Milestone	 	Payment
    Obligation Upon Achievement of Sales Milestone
	1	First
    calendar year when cumulative Annual Net Sales of Licensed Product in the Territory exceed five hundred million USD ($500,000,000)	 	Ten
    million USD ($10,000,000) once only
	 	 	 	 
	2	First
    calendar year when cumulative Annual Net Sales of Licensed Product in the Territory exceed one thousand million USD ($1,000,000,000)	 	Twenty-five
    million USD ($25,000,000) once only

 

	 	 	5.3.2	The
    amount stipulated as payable for each Sales Milestone in the table above shall be payable by Anebulo to Vernalis in accordance
    with Clause 5.3.3 when the Sales Milestone is achieved, whether by Anebulo alone or in combination with or by one or more
    Affiliates or Sublicensees.
	 	 	 	 
	 	 	5.3.3	Anebulo
    shall provide Vernalis with written notice promptly upon each occurrence of the achievement of a Sales Milestone. On such
    occurrence, Vernalis shall issue an invoice for the amount due and Anebulo shall pay such amount within thirty (30) days of
    such occurrence, to the bank account stipulated at Schedule 2 or such other bank account as Vernalis may notify to Anebulo
    from time to time.

 

    	Page 18

    	 

    

  

	 	5.4	Royalties
	 	 	 	 
	 	 	5.4.1	In
    further consideration of the licence granted by Vernalis to Anebulo under Clause 2.1, subject to Clause 5.4.5, Anebulo shall,
    subject to the other terms and conditions of this Agreement, pay Vernalis royalties on a Licensed Product-by-Licensed Product
    basis (“Royalties”), according to the portions of Annual Net Sales at the rates set out below:

 

	 	Annual
    Net Sales of Licensed Product in the Territory in USD($)	 	Royalty
    percentage payable on portion of Net Sales of such Licensed Product (%)
	 	Less
    than five hundred million USD ($500,000,000)	 	2
	 	 	 	 
	 	Five
    hundred million USD ($500,000,000) or more and less than or equal to one billion USD ($1,000,000,000)	 	4
	 	 	 	 
	 	One
    billion USD ($1,000,000,000) or more and less than or equal to one billion five hundred million USD ($1,500,000,000)	 	5
	 	 	 	 
	 	In
    excess of one billion five hundred million USD ($1,500,000,000)	 	6

 

	 	 	5.4.2	All
    Licensed Product containing the Vernalis Licensed Compound shall be treated as a single Licensed Product for the basis of
    this calculation, regardless of its form, presentation, delivery system, dosage or formulation.
	 	 	 	 
	 	 	5.4.3	Anebulo’s
    obligation to pay Royalties to Vernalis under Clause 5.4.1 on Net Sales shall, on a Licensed Product-by-Licensed Product and
    country-by-country basis, begin on First Commercial Sale and shall terminate on the later to occur of:
	 	 	 	 	 
	 	 	 	(a)	the
    tenth (10th) anniversary of the First Commercial Sale of the given Licensed Product in such country in the Territory; and
	 	 	 	 	 
	 	 	 	(b)	the
expiration date in such country of the Regulatory Exclusivity applicable to the given Licensed Product, 
	 	 	 	 	 
	 	 	 	(the “Royalty Term”).

 

    	Page 19

    	 

    

 

	 	 	5.4.4	Upon
    expiry of the Royalty Term with respect to a Licensed Product in a country the licence granted to Anebulo in Clause 2.1 shall
    become non-exclusive, irrevocable and fully paid-up (subject to any outstanding Sales Milestones) with respect to such Licensed
    Product in such country and Net Sales of such Licensed Product in such country shall be excluded from the Royalty calculations
    set out in Clause 5.4.1. For the avoidance of doubt, the expiry of the Royalty Term with respect to a particular country for
    a given Licensed Product shall not result in the termination of the Royalty Term for any other Licensed Product with respect
    to that country or any other country.
	 	 	 	 
	 	 	5.4.5	If,
    during a given Calendar Quarter during the Royalty Term on a Licensed Product-by-Licensed Product and country-by-country basis
    a first commercial sale is made of a Generic Product in the relevant country, but there is not Generic Competition in such
    country, then the royalty rate set forth in Clause 5.4.1 shall be reduced by 25% for Net Sales of such Licensed Product in
    such country. For example, for sales of less than five hundred million USD ($500,000,000) of Licensed Product, the royalty
    rate shall be reduced from 2% to 1.5%. Notwithstanding the foregoing, if any a given Calendar Quarter there is there is Generic
    Competition in such country, then the royalty rate set forth in Clause 5.4.1 shall be reduced to 50% of the royalty rate that
    would be applicable for Net Sales of such Licensed Product in such country. For example, for sales of less than five hundred
    million USD ($500,000,000) of Licensed Product, the royalty rate shall be reduced from 2% to 1%.
	 	 	 	 
	 	5.5	Royalty
    Procedures
	 	 	 	 
	 	 	5.5.1	During
    the Term, following the First Commercial Sale of Licensed Product, Anebulo shall on or before the thirtieth (30th) day following
    the end of each Quarter deliver to Vernalis a written report for that Quarter showing, in each case on a country-by-country
    and Licensed Product-by-Licensed Product basis: (i) invoiced sales and Net Sales; (ii) the exchange rates used to calculate
    such Royalties, which shall be in accordance with Clause 5.5.4; (iii) the number of units of Licensed Product sold; and (iv)
    the amount of Royalties due on such Net Sales (calculated in accordance with Clause 5.4).
	 	 	 	 
	 	 	5.5.2	Vernalis
    shall issue an invoice for the Royalties payable according to this Agreement and the written report delivered by Anebulo to
    Vernalis in accordance with Clause 5.5.1. Anebulo acknowledges and agrees that all such invoices shall be issued by Vernalis
    in reliance on the information provided by Anebulo. Neither the issue of any such invoice nor receipt of payment, shall be,
    nor shall either be deemed to be, acceptance by Vernalis of the accuracy of any written report and shall in each case be without
    prejudice to Vernalis’ rights to audit or dispute the amount of Royalties payable.
	 	 	 	 
	 	 	5.5.3	Anebulo
    shall, within thirty (30) days of receipt of the relevant invoice in accordance with Clause 5.5.2, pay to Vernalis, in USD
    ($) by telegraphic transfer to the bank account set out at Schedule 2 (or such other bank account as Vernalis may notify to
    Anebulo from time to time) the amount stated in such invoice.

 

    	Page 20

    	 

    

 

	 	 	5.5.4	The
    functional currency for accounting will be USD. Except as the Parties otherwise mutually agree, for billing and reporting,
    Net Sales will be converted into USD using the currency exchange rates quoted by Bloomberg Professional, a service
    of Bloomberg L.P., or in the event Bloomberg Professional is not available then The Wall Street Journal using
    the average monthly rate of exchange for the month to which Net Sales were dated.
	 	 	 	 
	 	5.6	Records
    and Audits
	 	 	 	 
	 	 	5.6.1	Anebulo
    shall keep, and shall cause its Sublicensees and its and their Affiliates to keep, complete and accurate books and financial
    records containing all data necessary for the calculation of the amounts payable by Anebulo pursuant to this Agreement, which
    books and financial records shall be kept in accordance with UK GAAP (or the generally accepted accounting practice in the
    country in which the Sublicensee and any Affiliate of Anebulo or any Sublicensee is established), consistently applied, and
    shall be retained by Anebulo, its Sublicensees and its and their Affiliates as appropriate, until six (6) years after the
    end of the calendar year to which they relate.
	 	 	 	 
	 	 	5.6.2	Upon
    the written request of Vernalis, and not more than once each calendar year, Anebulo shall permit (and shall procure that its
    Sublicensees and its and their Affiliates shall permit) an independent certified public accounting firm of internationally
    recognised standing selected by Vernalis, and reasonably acceptable to Anebulo, to inspect and audit, during normal business
    hours and upon reasonable prior written notice, such of the records of Anebulo, its Sublicensees and its or their Affiliates
    as may be reasonably necessary to verify the accuracy of the reports provided in accordance with Clause 5.6.1 for any year
    ending not more than six (6) years prior to the date of such request for the sole purpose of verifying the basis and accuracy
    of the royalty payments made under this Agreement in respect of Licensed Products. If such accounting firm concludes that
    Anebulo owed additional amounts to Vernalis during such period, Anebulo shall pay Vernalis the difference between the amount
    actually owed, as determined by the accounting firm, and the amount actually paid by Anebulo, with interest calculated in
    accordance with Clause 5.6.3 from the date originally due to the date of payment, within thirty (30) days after the date on
    which such accounting firm’s written report is delivered to Anebulo. If the accounting firm determines that there has
    been an underpayment of more than five per cent (5%), Anebulo shall bear all costs related to such audit otherwise Vernalis
    shall bear the cost of such audit. All books and financial records made available for inspection or audit shall be deemed
    to be Anebulo’s or its Sublicensees’ Confidential Information. For the avoidance of doubt, any such independent
    accounting firm shall, prior to such inspection, enter into a confidentiality agreement in a form reasonably acceptable to
    Anebulo and its Sublicensees. The accounting firm shall disclose to the Parties whether or not the payment in question was
    accurately calculated by Anebulo and the specific details concerning any discrepancies but no other information shall be provided
    to Vernalis.

 

    	Page 21

    	 

    

 

	 	 	5.6.3	Any
    payment that is not paid on the date such payment is due under this Agreement shall bear interest at a rate equal to the lesser
    of one percent (1%) per annum above the Bank of England’s base rate and the maximum rate permitted by law, calculated
    on the number of days such payment is delinquent, compounded monthly.
	 	 	 	 
	 	5.7	Withholding
	 	 	 	 
	 	 	5.7.1	All
    sums payable to Vernalis under or in connection this Agreement shall be paid free and clear of any deduction or withholding
    for or on account of tax, set-offs or counterclaims whatsoever, save for any deduction or withholding required by Applicable
    Law. If any deduction or withholding is required by Applicable Law to be made from such a sum, Anebulo shall pay to Vernalis
    such additional amount as is necessary to ensure that, after any such deduction or withholding, Vernalis is left with the
    same net amount it would have received in the absence of any requirement to make a deduction or withholding..
	 	 	 	 
	 	 	5.7.2	Any
    such deduction or withholding which is required to be made shall be made in the minimum amount required by Applicable Law
    and Anebulo shall on request provide to Vernalis evidence reasonably satisfactory to Vernalis that the withholding or deduction
    has been made and duly accounted for to the relevant tax authority.
	 	 	 	 
	 	5.8	VAT
	 	 	 	 
	 	 	All
    sums payable to Vernalis under this Agreement are stated exclusive of VAT. Accordingly, Anebulo shall (on receipt of a valid
    VAT invoice) pay to Vernalis, in addition to any other amounts payable under this Agreement, an amount equal to any VAT for
    which Vernalis (or any member of any VAT group of which Vernalis is a member) is liable to account in relation to any supply
    made or deemed for VAT purposes to be made in connection with this Agreement or the transactions contemplated by it.
	 	 	 	 
	 	6	Intellectual
    Property – Ownership
	 	 	 	 
	 	6.1	As
    between the Parties any and all Vernalis Licensed IP is and shall remain owned solely by Vernalis.
	 	 	 
	 	6.2	As
    between the Parties any and all Anebulo IP is and shall remain owned solely by Anebulo.
	 	 	 
	 	7	Intellectual
    Property – Prosecution, Enforcement and Maintenance of Anebulo Patent Rights
	 	 	 	 
	 	 	Anebulo
    shall have the sole right (but not the obligation), at its own cost and expense, to file, prosecute, enforce and maintain
    the Anebulo Patent Rights in its own name.
	 	 	 	 
	 	8	Representation,
    Warranties and Covenants
	 	 	 
	 	8.1	Mutual
    Representations and Warranties
	 	 	 	 
	 	 	Vernalis
    and Anebulo each represents and warrants, as of the Commencement Date, as follows:
	 	 	 	 
	 	 	8.1.1	it
    is a company duly organised, validly existing, and in good standing under the laws of the jurisdiction of its organisation,
    and has all requisite power and authority, corporate or otherwise, to execute, deliver, and perform this Agreement;

 

    	Page 22

    	 

    

 

	 	 	8.1.2	it
    is not under any obligation, contractual or otherwise, to any person that conflicts with or is inconsistent in any material
    respect with the terms of this Agreement, or that would have a material adverse effect on the diligent and complete fulfilment
    of its obligations under this Agreement;
	 	 	 	 
	 	 	8.1.3	this
    Agreement is a legal, valid, and binding obligation of such Party enforceable against it in accordance with its terms and
    conditions, subject to the effects of bankruptcy, insolvency, or other laws of general application; and
	 	 	 	 
	 	 	8.1.4	neither
    it nor any of its Affiliates or employees is a party to any dispute, investigation or similar action that would have a material
    adverse impact on its ability to perform and comply with the terms of this Agreement.
	 	 	 	 
	 	8.2	Additional
    Representations, Warranties and Covenants of Vernalis
	 	 	 
	 	 	Vernalis
    further represents and warrants, as of the Commencement Date, and in respect of Clause 8.2.3 only covenants as follows:
	 	 	 	 
	 	 	8.2.1	Vernalis
    Controls the Vernalis Licensed IP, the Vernalis Regulatory Materials and Vernalis Licensed Compound Information as of the
    Commencement Date (and no Third Party has any right or interest in them) and has the right to grant the licences specified
    in this Agreement;
	 	 	 	 
	 	 	8.2.2	Vernalis
    has not received any written notice of, and has not been served with, any Third Party claims, suits or actions issued in any
    court or competent tribunal alleging either infringement or misappropriation of intellectual property rights owned or controlled
    by such Third Party by the manufacture, use or sale of the Vernalis Licensed Compound;
	 	 	 	 
	 	 	8.2.3	As
    of the Commencement Date and during the Term, Vernalis has not and will not, and will cause its Affiliates not to, grant to
    any Third Party rights that encumber, diminish, or conflict with the rights granted to Anebulo hereunder with respect to the
    Vernalis Licensed Compound, Vernalis Licensed IP, the Vernalis Regulatory Materials and Vernalis Licensed Compound Information;
    and
	 	 	 	 
	 	 	8.2.4	Neither
    Vernalis nor any of its Affiliates has been debarred nor is or are subject to debarment, nor have they have used in any capacity,
    in connection with the Development and Manufacture of the Vernalis Licensed Compound prior to the Commencement Date, any person
    who has been debarred pursuant to Section 306 of the United States Food, Drug, and Cosmetic Act, or any equivalent legislation
    in any other jurisdiction, or who is the subject of a conviction described in such section or equivalent legislation.

 

    	Page 23

    	 

    

 

	 	8.3	Additional
    Representations, Warranties and Covenants of Anebulo
	 	 	 
	 	 	Anebulo
    further represents and warrants to Vernalis, as of the Commencement Date, and covenants as follows:
	 	 	 	 
	 	 	8.3.1	Anebulo
    (a) agrees it will need to conduct its own investigation and analysis of (i) the Patent Rights and other proprietary rights
    of Third Parties as such rights relate to the Exploitation of the Licensed Compound and Licensed Product and (ii) the potential
    infringement thereof, (b) understands the complexity and uncertainties associated with possible claims of infringement of
    Patent Rights or other proprietary rights of Third Parties, particularly those relating to pharmaceutical products, and (c)
    acknowledges and agrees that it is solely responsible for the risks of such claims;
	 	 	 	 
	 	 	8.3.2	neither
    Anebulo nor any of its Affiliates owns, or is a licensee of, any Patent Rights which cover (i) a Vernalis Licensed Compound
    or (ii) a Licensed Product; and
	 	 	 	 
	 	 	8.3.3	Neither
    Anebulo nor any of its Affiliates or Sublicensees has been debarred nor is or are subject to debarment, and it will not, and
    shall procure that its Affiliates and Sublicensees will not, use in any capacity, in connection with the work to be performed
    under this Agreement, any person who has been debarred pursuant to Section 306 of the United States Food, Drug, and Cosmetic
    Act, or any equivalent legislation in any other jurisdiction, or who is the subject of a conviction described in such section
    or equivalent legislation. Anebulo shall inform Vernalis in writing promptly if it or any such person is debarred or is the
    subject of a conviction described in Section 306 or any equivalent legislation in any jurisdiction, or any investigation or
    claim in relation to the same.
	 	 	 	 
	 	8.4	 Disclaimer of Warranties
	 	 	 	 
	 	 	Except
    for the express warranties set forth in this Agreement, neither Party makes any representations or grants any warranties,
    express or implied, either in fact or by operation of Applicable Law or otherwise, and each Party specifically disclaims any
    other warranties, whether written or oral, or express or implied, including any warranty of quality, merchantability, or fitness
    for a particular use or purpose or any warranty as to the validity of any Patent Rights or the non- infringement of any Patent
    Rights of Third Parties.
	 	 	 	 
	 	9	Indemnification
    and Liability
	 	 	 
	 	9.1	Indemnification
    by Anebulo
	 	 	 
	 	 	Anebulo
    shall fully indemnify, and at all times keep Vernalis, its Affiliates and their Personnel (the “Vernalis Indemnified
    Parties”) fully indemnified against any and all:
	 	 	 	 
	 	 	9.1.1	liabilities,
    damages, costs, expenses and other sums paid or payable by the Indemnified Parties to a Third Party arising from any claim,
    action or proceeding brought by a Third Party against a Vernalis Indemnified Party to the extent that such claim, action or
    proceeding arises out of or results from:

 

	 	 	 	(a)	any
    breach by Anebulo of its representations, warranties or obligations under this Agreement, or Anebulo’s negligence or
    wilful misconduct;

 

    	Page 24

    	 

    

 

	 	 	 	(b)	any
    Exploitation by or on behalf of Anebulo, its Sublicensees, or its or their Affiliates of the Vernalis Licensed Compound or
    Licensed Product;
	 	 	 	 	 
	 	 	 	(c)	any
    possession or use by a Third Party of the Vernalis Licensed Compound or Licensed Product manufactured or supplied by or on
    behalf of Anebulo, its Sublicensees, or its or their Affiliates; and
	 	 	 	 	 
	 	 	 	(d)	any
    breach by Anebulo, its Sublicensees, or its or their Affiliates of Applicable Law 
	 	 	 	 
	 	 	(a
    “Vernalis Indemnity Claim”); and
	 	 	 	 
	 	 	9.1.2	the
    Vernalis Indemnified Parties’ reasonable and documented legal expenses and expert’s fees incurred in relation
    to any Indemnity Claim, 
	 	 	 	 
	 	 	provided, however, that Anebulo shall not be responsible for the indemnification or defense of any Vernalis Indemnified Party to the extent arising from any negligent or intentional acts by any Vernalis Indemnified Party, or the breach by Vernalis of any representation, warranty or obligation under this Agreement.
	 	 	 	 
	 	9.2	Indemnification
    by Vernalis
	 	 	 	 	 
	 	 	Vernalis
    shall fully indemnify, and at all times keep Anebulo, its Affiliates and their Personnel (the “Anebulo Indemnified
    Parties”) fully indemnified against any and all:
	 	 	 	 	 
	 	 	9.2.1	liabilities,
    damages, costs, expenses and other sums paid or payable by the Anebulo Indemnified Parties to a Third Party arising from any
    claim, action or proceeding brought by a Third Party against a Anebulo Indemnified Party to the extent that such claim, action
    or proceeding arises out of or results from:
	 	 	 	 	 
	 	 	 	(a)	any
    breach by Vernalis of its representations, warranties or obligations under this Agreement, or Vernalis’ negligence or
    willful misconduct; and
	 	 	 	 	 
	 	 	 	(b)	any
    breach by Vernalis or its Affiliates of Applicable Law
	 	 	 	 	 
	 	 	 	(an
    “Anebulo Indemnity Claim”); and

 

    	Page 25

    	 

    

 

	 	 	9.2.2	the
    Anebulo Indemnified Parties’ reasonable and documented legal expenses and expert’s fees incurred in relation to
    any Anebulo Indemnity Claim,
	 	 	 	 
	 	 	provided, however, that Vernalis shall not be responsible for the indemnification or defense of any Anebulo Indemnified Party to the extent arising from any negligent or intentional acts by any Anebulo Indemnified Party, or the breach by Anebulo of any representation, warranty or obligation under this Agreement.
	 	 	 	 
	 	9.3	Indemnification
    Procedure
	 	 	 
	 	 	Each
    Party (the “Indemnified Party”) shall, promptly after notification from the other Party (the “Indemnifying
    Party”) of a Vernalis Indemnity Claim or Anebulo Indemnity Claim, as applicable (each, an “Indemnity Claim”),
    assume conduct of the Indemnity Claim, including the right to conduct any proceedings or action, negotiate the settlement
    of the Indemnity Claim and conduct all discussions and dispute resolution efforts in connection with the Indemnity Claim.
    The Indemnified Party shall, at the Indemnifying Party’s cost and expense and reasonable request, give the Indemnifying
    Party reasonable assistance in connection with the conduct of the Indemnity Claim. The Indemnifying Party shall not (and shall
    procure that its respective Indemnified Parties do not) admit liability in respect of, or compromise or settle, any Indemnity
    Claim without the Indemnifying Party’s prior written consent (such consent not to be unreasonably withheld or delayed)
	 	 	 
	 	9.4	Indirect,
    consequential and other losses
	 	 	 
	 	 	Except
    to the extent resulting from a Party’s gross negligence or wilful misconduct, neither Party shall be liable to the other
    for any special, incidental, punitive or consequential damages arising out of this Agreement or the exercise of its rights
    hereunder, whether in contract, tort, negligence, breach of statutory duty or otherwise, regardless of any notice of such
    damages. Nothing in this Section 9.4 is intended to limit or restrict the indemnification rights or obligations of either
    Party under this Clause 9, or damages available for breaches of confidentiality obligations in Clause 10.
	 	 	 
	 	9.5	Insurance
	 	 	 
	 	 	Anebulo
    shall have and maintain at its own expense with a reputable insurance company such type and amounts of insurance covering
    its Exploitation of the Vernalis Licensed Compound and Licensed Product as is (a) normal and customary in the pharmaceutical
    industry generally for parties similarly situated and (b) otherwise required by Applicable Law. Upon request by Vernalis,
    Anebulo shall provide certificates of insurance evidencing compliance with this Clause 9.5.
	 	 	 
	 	10	Confidentiality
	 	 	 	 
	 	10.1	 Each Party shall, and shall cause its officers, directors, employees and agents to:
	 	 	 	 
	 	 	10.1.1	keep
    confidential and not publish or otherwise disclose to a Third Party and not use, directly or indirectly, for any purpose,
    any Confidential Information furnished or otherwise made known to it, directly or indirectly, by the other Party, except to
    the extent such disclosure or use is expressly permitted by the terms of this Agreement or is reasonably necessary for the
    performance of, or the exercise of such Party’s rights under, this Agreement; and

 

    	Page 26

    	 

    

 

	 	 	10.1.2	ensure
    that only those of its officers, directors, employees, and agents have access to the Confidential Information on a “need
    to know” basis and are informed of the secret and confidential nature of it.
	 	 	 	 
	 	10.2	 The obligations of confidentiality and non-use set out in Clause 10.1 shall not extend to any Confidential Information which:
	 	 	 	 
	 	 	10.2.1	is
    or hereafter becomes part of the public domain by public use, publication, general knowledge or the like through no wrongful
    act, fault or negligence on the part of the receiving Party;
	 	 	 	 
	 	 	10.2.2	can
    be demonstrated by documentation or other competent proof to have been in the receiving Party’s possession prior to
    disclosure by the disclosing Party without any obligation of confidentiality with respect to such information;
	 	 	 	 
	 	 	10.2.3	is
    subsequently received by the receiving Party from a Third Party who is not bound by any obligation of confidentiality with
    respect to such information;
	 	 	 	 
	 	 	10.2.4	has
    been published by a Third Party or otherwise enters the public domain through no fault of the receiving Party in breach of
    this Agreement; or
	 	 	 	 
	 	 	10.2.5	can
    be demonstrated by documentation or other competent evidence to have been independently developed by or for the receiving
    Party without reference to the disclosing Party’s Confidential Information.
	 	 	 	 
	 	 	Specific
    aspects or details of Confidential Information shall not be deemed to be within the public domain or in the possession of
    the receiving Party merely because the Confidential Information is embraced by more general information in the public domain
    or in the possession of the receiving Party. Further, any combination of Confidential Information shall not be considered
    in the public domain or in the possession of the receiving Party merely because individual elements of such Confidential Information
    are in the public domain or in the possession of the receiving Party unless the combination and its principles are in the
    public domain or in the possession of the receiving Party.
	 	 	 	 
	 	10.3	Each
    Party may disclose Confidential Information to the extent that such disclosure is:
	 	 	 	 
	 	 	10.3.1	made
    in response to a valid order of a court of competent jurisdiction or other Government Authority or, if in the reasonable opinion
    of the receiving Party’s legal counsel, such disclosure is otherwise required by a securities regulator with which such
    Party or its Affiliates are listed; provided, however, that the receiving Party shall first have given notice to the disclosing
    Party and given the disclosing Party a reasonable opportunity to quash such order or to obtain a protective order or confidential
    treatment requiring that the Confidential Information and documents that are the subject of such order be held in confidence
    by such court or agency or, if disclosed, be used only for the purposes for which the order was issued; and provided further
    that the Confidential Information disclosed in response to such court or order of a Government Authority shall be limited
    to that information which is legally required to be disclosed in response to such court or governmental order;

 

    	Page 27

    	 

    

 

	 	 	10.3.2	made
    by or on behalf of the receiving Party to the Government Authorities or Regulatory Authorities as required in connection with
    any filing, application or request for Marketing Authorisation, or to comply with the requirements of any securities exchange,
    including, without limitation, in connection with a public offering, or to a tax authority in connection with the tax affairs
    of the relevant Party; provided, however, that reasonable measures shall be taken to assure confidential treatment of such
    information to the extent practicable and consistent with Applicable Law; or
	 	 	 	 
	 	 	10.3.3	made
    by or on behalf of the receiving Party to the receiving Party’s Affiliates, and actual or potential acquirers, merger
    partners, licensors, licensees, Sublicensees, assignees, subcontractors, investment bankers, investors, other potential financial
    partners and independent contractors, and their respective officers, directors, employees, and agents, in each case who are
    or may become directly involved in or concerned with the carrying out of this Agreement or engaged in advising the receiving
    Party on business or financial matters, on a “need to know” basis; provided, however, that: (i) such persons and
    entities shall use such Confidential Information solely for the purpose of carrying out this Agreement or advising the receiving
    Party on business or financial matters or assessing whether to provide investment or funding to the receiving Party; and (ii)
    such persons and entities are either subject to confidentiality and non-use obligations at least as stringent as the confidentiality
    and non-use obligations provided for in this Clause 10 or bound by substantially similar obligations under law or pursuant
    to rules of professional ethics.
	 	 	 	 
	 	10.4	 Upon the effective date of the termination of this Agreement for any reason, either Party may request in writing, and the other Party shall either, with respect to Confidential Information to which such first Party does not retain rights under the surviving provisions of this Agreement: (a) promptly destroy all copies of such Confidential Information in the possession of the other Party and confirm such destruction in writing to the requesting Party; or (b) promptly deliver to the requesting Party, at the other Party’s expense, all copies of such Confidential Information in the possession of the other Party; provided, however, the other Party shall be permitted to retain one (1) copy of such Confidential Information for the sole purpose of performing any continuing obligations under this Agreement or for archival purposes. Notwithstanding the foregoing, such other Party also shall be permitted to retain such additional copies of or any computer records or files containing such Confidential Information that have been created solely by such Party’s automatic archiving and back-up procedures, to the extent created and retained in a manner consistent with such other Party’s standard archiving and back-up procedures, but not for any other use or purpose. All Confidential Information shall continue to be subject to the terms of this Agreement for the period stated in Clause 10.1.

 

    	Page 28

    	 

    

 

	 	11	Term
    and Termination
	 	 	 
	 	11.1	Term
	 	 	 	 
	 	 	This
    Agreement shall come into force on the Commencement Date and shall continue unless and until terminated in accordance with
    its provisions or until such time as all Royalties and other sums in respect of the Exploitation of the Licensed Product cease
    to be payable in respect of all countries in the Territory in accordance with the terms herein. The period from the Commencement
    Date until the date of expiration of the entire Agreement or termination of this Agreement in its entirety shall be the “Term”.
	 	 	 
	 	11.2	Termination
    for Cause or Insolvency
	 	 	 
	 	 	11.2.1	Each
    of the Parties shall have the right to terminate this Agreement for cause with immediate effect upon giving written notice
    of termination to the other (the “Defaulting Party”) if the Defaulting Party commits a material breach
    of this Agreement which shall not have been remedied within sixty (60) days (or for breaches of payment obligations, thirty
    (30) days) of the receipt by it of a written notice from the other Party identifying the breach and requiring its remedy;
    provided, however, that in the event of a good faith dispute with respect to the existence of a material breach, this Agreement
    shall not be terminated until the dispute is withdrawn or settled in accordance with Clause 14, and the breaching Party fails
    to cure such breach within sixty (60) days (or thirty (30) days for breaches of payment obligations) thereafter.
	 	 	 	 
	 	 	11.2.2	In
    the event that either Party (a) files for protection under bankruptcy or insolvency laws, (b) makes an assignment for the
    benefit of creditors, (c) appoints or suffers appointment of a receiver or trustee over substantially all of its property
    that is not discharged within ninety (90) days after such filing, (d) proposes a written agreement of composition or extension
    of its debts, (e) proposes or is a party to any dissolution or liquidation, (f) files a petition under any bankruptcy or insolvency
    act or has any such petition filed against that is not discharged within sixty (60) days of the filing thereof, or (g) ceases
    for any reason to carry on business, then the other Party may terminate this Agreement in its entirety effective immediately
    upon written notice to such Party, provided that until such notice is served each Party shall have the right to retain and
    enforce their rights under this Agreement
	 	 	 	 
	 	11.3	Termination
    at Will
	 	 	 
	 	 	Anebulo
    may terminate this Agreement at will in its entirety on sixty (60) days’ prior written notice to Vernalis provided that
    Anebulo has not received any written notice pursuant to Clause 11.2.1.

 

    	Page 29

    	 

    

 

	 	12	Consequences
    of Termination
	 	 	 
	 	12.1	In
    the event of termination of this Agreement for any reason:
	 	 	 
	 	 	12.1.1	all
    rights and licences granted by Vernalis to Anebulo under this Agreement shall immediately terminate;
	 	 	 	 
	 	 	12.1.2	all
    outstanding sums due and payable by Anebulo to Vernalis as of the effective date of such termination shall immediately become
    due and payable; and
	 	 	 	 
	 	 	12.1.3	Anebulo
    shall return to Vernalis or, at Vernalis’ request, destroy any Vernalis Regulatory Materials and/or Vernalis Licensed
    Compound Information and any unused API purchased under Clause 3.1.
	 	 	 	 
	 	12.2	If
    Vernalis terminates this Agreement pursuant to Clause 11.2.1 (material breach), or Clause 11.2.2 (insolvency)
    or if Anebulo terminates this Agreement pursuant to Clause 11.3 (termination at will), then:
	 	 	 	 
	 	 	12.2.1	the
    Parties will, following such termination, negotiate in good faith the terms and conditions under which Anebulo would grant
    Vernalis a licence under all of the Anebulo IP to Exploit the Vernalis Licensed Compound and Licensed Product and those Documents
    and Regulatory Materials within Anebulo’s Control that are reasonably required to enable Vernalis to continue the Exploitation
    of the Vernalis Licensed Compound and Licensed Product and any regulatory Documents and regulatory applications submitted
    to Regulatory Authorities for the Licensed Product and, if termination of this Agreement occurs after the Licensed Product
    has received Marketing Authorisation or pricing and reimbursement approval, Marketing Authorisations and pricing and reimbursement
    approvals (collectively, “Reversion Assets”, and such license, the “Reversion Transfer”);
    and
	 	 	 	 
	 	 	12.2.2	the
    terms and conditions of the Reversion Transfer will include appropriate compensation to Anebulo for its Development and Exploitation
    efforts up to the date of termination. Anebulo shall not be required to effect the Reversion Transfer of any Reversion Asset
    it does not have the right to license, or to obtain such rights from Third Parties necessary to effect such transfer, assignment
    or license, but shall, acting in good faith, promptly collaborate with Vernalis to obtain such rights from such Third Parties
    to the extent needed for the Exploitation of the Reversion Assets. In the event the Parties do not, despite good faith negotiations,
    reach an agreement on the terms and conditions for the Reversion Transfer within six (6) months of the termination of the
    Agreement, Anebulo shall have no further obligations under this Clause 12.2.
	 	 	 	 
	 	12.3	Save
    as may be expressly specified otherwise in this Agreement the provisions of Clauses 1, 2.2.2, 4.2, 5, 6, 8.4, 9, 10, 12, 14,
    15, 16, 18 and 22 shall survive termination of this Agreement.

 

    	Page 30

    	 

    

 

	 	13	Assignment
    and Change of Control
	 	 	 
	 	13.1	This
    Agreement and the licences herein granted shall be binding upon and inure to the benefit of the successors in interest of the
    respective Parties. Neither this Agreement nor any interest hereunder shall be assignable by either Party without the written
    consent of the other provided, however, that Vernalis may assign this Agreement or any part of its rights and obligations
    hereunder to any Affiliate or to any company with which Vernalis may merge or consolidate, or to which it may transfer all or
    substantially all of its assets to which this Agreement relates, without obtaining the consent of Anebulo and Anebulo may
    assign this Agreement or any part of its rights and obligations hereunder to any Affiliate or to any company with which
    Anebulo may merge or consolidate, or to which it may transfer all or substantially all of its assets to which this Agreement
    relates without obtaining the consent of Vernalis provided such Affiliate or company has similar or greater financial
    resources and expertise as Anebulo and is not developing or commercialising any product (whether a
    pipeline asset or a marketed product) which (i) contains a CB1 antagonist or (ii) is for the same
    indication covered or proposed to be covered by a Phase II Clinical Trial, a Pivotal Clinical Trial, an application for a
    Marketing Authorisation or a granted Marketing Authorisation for the Licensed Product. Any assignment not in compliance with
    this Clause 13.1 shall be void and of no effect.
	 	 	 
	 	13.2	Each
    Party shall promptly notify the other Party in writing upon the occurrence of any assignment pursuant to Clause 13.1 in accordance
    with Clause 18.
	 	 	 
	 	14	Dispute
    Resolution and Governing Law
	 	 	 
	 	14.1	If
    the Parties are unable to resolve any dispute arising out of or in connection with this Agreement, either Party may, by written
    notice to the other, have such dispute referred to their respective CEOs (or their authorised designees) for attempted resolution
    by good faith negotiations within ten (10) Business Days after such notice is received. In such event, the Parties shall cause
    their respective officers or their designees to meet (face-to-face or by teleconference) and be available to attempt to resolve
    such issue. If the Parties should resolve such dispute, a memorandum setting forth their agreement shall be prepared and signed
    by both Parties at either Party’s request.
	 	 	 
	 	14.2	In
    the event that the Parties are unable to resolve any dispute pursuant to Clause 14.1 then either Party may initiate arbitration
    pursuant to this Clause 14.2. Any arbitration under this Clause 14.2 shall be held in London, UK., and administered by the
    London Court of International Arbitration pursuant to LCIA Rules (the “Rules”) by three (3) arbitrators appointed
    in accordance with such Rules. The arbitrators shall allow reasonable discovery, in an amount determined by the arbitrators
    to be necessary in view of the issues in dispute. The costs of such arbitration shall be shared equally by the Parties, and
    each Party shall bear its own expenses in connection with the arbitration. The parties shall use good faith efforts to complete
    arbitration under this Clause 14.2 within six (6) months following the initiation of such arbitration. The arbitrators shall
    establish reasonable additional procedures to facilitate and complete such arbitration within such six (6) month period. The
    arbitrators shall have discretion to award all or any part of the costs of the arbitration, including reasonable attorneys’
    fees, to the prevailing Party. Nothing in this Agreement shall limit the right of either Party to seek any equitable or interim
    relief or provisional remedy, including injunctive relief, from any court of competent jurisdiction. Judgment on the award
    may be entered in any court of competent jurisdiction. The existence of and proceedings in the arbitration shall be considered
    the Confidential Information of both Parties and shall be subject to the terms of Clause 10.

 

    	Page 31

    	 

    

 

	 	14.3	This
    Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual
    disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.
	 	 	 
	 	15	Waiver
	 	 	 
	 	 	The
    failure on the part of either Party to exercise or enforce any right conferred upon it hereunder shall not be deemed to be
    a waiver of any such right or operate to bar the enforcement thereof at any time or times thereafter.
	 	 	 
	 	16	Severance
    of Terms
	 	 	 
	 	16.1	If
    any provision or part-provision of this Agreement shall be held to be illegal, void, invalid or unenforceable under the law
    of any jurisdiction:
	 	 	 	 
	 	 	16.1.1	that
    provision or part-provision shall, to the extent required, be deemed to be deleted, and the validity and enforceability of
    the other provisions of this Agreement shall not be affected; and
	 	 	 	 
	 	 	16.1.2	the
    legality, validity and enforceability of the whole of this Agreement in any other jurisdiction shall not be affected.
	 	 	 	 
	 	 	Additionally,
    the Parties will work in good faith to replace the severed provision with one achieving the purpose of the severed provision
    that is valid and enforceable.
	 	 	 
	 	17	Entire
    Agreement/Variations
	 	 	 
	 	17.1	This
    Agreement, together with all Schedules hereto, constitutes the whole agreement between the Parties and supersedes any previous
    agreement between the Parties relating to its subject matter, including without limitation the Confidentiality Agreement,
    which is hereby terminated as of the Effective Date and shall have no more force and effect. Each Party acknowledges that
    in entering into this Agreement, it does not rely on any representation, warranty or other provision, except as expressly
    provided for under this Agreement.
	 	 	 
	 	17.2	No
    variation, amendments, modification or supplement to this Agreement shall be valid unless agreed in writing in the English
    language and signed by a duly authorised representative of each Party.
	 	 	 
	 	18	Notices
	 	 	 
	 	18.1	All
    notices required or permitted to be given under this Agreement, including all invoices provided by Vernalis to Anebulo, shall
    be in writing and shall be deemed given if delivered personally, by email, mailed by certified or registered mail postage
    prepaid, or sent by an internationally recognised courier, to the Parties at the following addresses, or at such other address
    for a Party as shall be specified by like notice, provided that notices of a change of address shall be effective only upon
    receipt thereof.

 

    	Page 32

    	 

    

 

	 	18.2	Address
    for notices:
	 	 	 	 	 
	 	 	 	Anebulo:	 
	 	 	 	 	 
	 	 	 	Address:	Anebulo
    Pharmaceuticals, Inc
	 	 	 	 	c/o
    JFL Capital Management
	 	 	 	 	1415
    Ranch Road 620 South
	 	 	 	 	Suite
    201
	 	 	 	 	Lakeway,
    Texas 78734
	 	 	 	 	 
	 	 	 	 	For
    the attention of: Joseph Lawler, CEO
	 	 	 	 	Email:
    Joe@jflcapitalmanagement.com
	 	 	 	 	 
	 	 	 	Vernalis:	 
	 	 	 	 	 
	 	 	 	Address:	Vernalis
    (R&D) Limited
	 	 	 	 	Granta
    Park
	 	 	 	 	Great
    Abington
	 	 	 	 	Cambridge
	 	 	 	 	CB21
    6GB
	 	 	 	 	United
    Kingdom
	 	 	 	 	 
	 	 	 	 	For
    the attention of: Company Secretary
	 	 	 	 	Email:
    companysecretary@vernalis.com

 

	 	18.3	The
    date of receipt of any notice given under this Agreement, including any invoice provided by Vernalis to Anebulo, shall be
    deemed to be:
	 	 	 
	 	 	18.3.1	the
    date given if delivered personally;
	 	 	 	 
	 	 	18.3.2	on
    the date of dispatch of the notice by e-mail (if no delivery failure is reported to or at the senders’ e-mail server),
    provided that notice dispatched by e-mail after 17.30 hours on a Business Day or any time on a non Business Day at the place
    at which such e-mail is to be received shall be deemed to be received at 09.30 hours at that place on the next following Business
    Day;
	 	 	 	 
	 	 	18.3.3	five
    (5) days after the date mailed if mailed by registered or certified mail return receipt requested, postage prepaid to a destination
    within the same jurisdiction;
	 	 	 	 
	 	 	18.3.4	ten
    (10) days after the date mailed if mailed by registered or certified mail return receipt requested, postage prepaid to a destination
    outside the jurisdiction of the Party sending the notice; and
	 	 	 	 
	 	 	18.3.5	two
    (2) Business Days after the date sent if sent by an internationally recognised courier service.

 

    	Page 33

    	 

    

 

	 	19	Counterparts
	 	 	 
	 	 	This
    Agreement may be executed in any number of counterparts, each of which, when executed, shall be an original, and all the counterparts
    together shall constitute one and the same instrument.
	 	 	 
	 	20	This
    Agreement not to Constitute a Partnership
	 	 	 
	 	 	Nothing
    in this Agreement and no action taken by the Parties pursuant to this Agreement shall constitute or be deemed to constitute
    a partnership, association, joint venture or other co-operative entity between the Parties and neither Party shall have any
    authority to bind the other in any way except as provided in this Agreement.
	 	 	 
	 	21	Costs
	 	 	 
	 	 	Each
    Party shall bear its own costs, legal fees and other expenses incurred in the negotiation, preparation, execution and implementation
    of this Agreement and the documents referred to herein.
	 	 	 
	 	22	Announcements
	 	 	 
	 	22.1	Subject
    to Clause 10, neither Party shall issue any press release, publication or other similar public communication relating to this
    Agreement, its subject matter or the transactions covered by it, or the activities of the Parties under or in connection with
    this Agreement (a “Publication”) without first obtaining written permission from the other Party, except
    for information that has been previously disclosed publicly without breach of this Clause 22.1.
	 	 	 
	 	23	Anti-Bribery
    and Anti-Corruption
	 	 	 
	 	23.1
    	Both Parties shall, to the extent applicable to the Parties’ performance of activities under this Agreement, including
    the place of such performance, and/or if required by the Relevant Requirements (as defined below):
	 	 	 
	 	 	23.1.1	at
    all times comply with all applicable laws, statutes, regulations and codes relating to anti-bribery and anti-corruption, including
    the Bribery Act 2010 (“Relevant Requirements”);
	 	 	 	 
	 	 	23.1.2	not
    do anything which if done in the UK would constitute an offence under sections 1, 2 or 6 of the Bribery Act 2010 (respectively,
    bribing another person, being bribed and bribing a foreign public official);
	 	 	 	 
	 	 	23.1.3	have
    and shall maintain in place throughout the Term its own policies and procedures to ensure compliance with the Relevant Requirements,
    and Clause 23.1.2, and will enforce them where appropriate;
	 	 	 	 
	 	 	23.1.4	promptly
    report to the other Party any request or demand for any undue financial or other advantage of any kind received in connection
    with the performance of this Agreement; and
	 	 	 	 
	 	 	23.1.5	promptly
    notify the other Party in writing if a foreign public official becomes an officer or employee of the notifying Party or acquires
    a direct or indirect interest in the notifying Party.
	 	 	 
	 	23.2	Each
    Party shall be solely responsible for the observance and performance of the Relevant Requirements by each of its Affiliates,
    and in the case of Anebulo by each Sublicensee, and shall be directly liable to the other Party for any breach by its Affiliates,
    and in the case of Anebulo any breach by any Sublicensee, of any of the Relevant Requirements.
	 	 	 
	 	23.3	For
    the purpose of this Clause 23, the meaning of foreign public official shall be determined in accordance with the Bribery Act
    2010 (and any guidance issued under section 9 of that Act).

 

    	Page 34

    	 

    

 

In
witness whereof the Parties have executed this Agreement as of the Commencement Date.

 

	Signed
    by	Charles S. Berkman
	Title	SVP, General Counsel and Secretary
	Date	May 26, 2020

 

	For
    and on behalf of Vernalis (R&D) Limited	

 

	Signed
    by	 
	Title	Founder
	Date	May
    26, 2020

 

	For
    and on behalf of Anebulo Pharmaceuticals, Inc.	 

 

    	Page 35

    	 

    

 

Schedule
1

API

 

	 	●	90g solid sample of bulk working standard stored at -20°C under non-GMP conditions
	 	 	 	 	 
	 	 	 	●	Dated
    02/04/2007
	 	 	 	 	 
	 	●	12 x 500mg samples from the sample batch stored at -20°C under non-GMP conditions

 

    	Page 36

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]