Document:

EX-10.6

 Exhibit 10.6 

KENSINGTON CAPITAL ACQUISITION CORP. V 

1400 Old Country Road, Suite 301 

Westbury, New York 11590 

August 12, 2021 
 DEHC LLC 

3355 Pierson Drive 
 Wilmington, Delaware 19810 

 

	 	Re:	 Services Agreement 

Ladies and Gentlemen: 
 This letter agreement by
and between Kensington Capital Acquisition Corp. V (the “Company”) and DEHC LLC (the “Provider”), dated as of the date of this letter agreement, will confirm our agreement that, commencing on the date the securities
of the Company are first listed on the New York Stock Exchange (the “Listing Date”), and continuing until the earliest of (a) the consummation by the Company of an initial business combination (the “Business
Combination”), (b) the Company’s liquidation and (c) the 18-month anniversary of the Listing Date (such earliest date hereinafter referred to as the “Termination Date”) (in
the case of clauses (a) and (b), as described in and pursuant to Registration Statements on Form S-1 and a prospectus filed with the U.S. Securities and Exchange Commission (together, the
“Registration Statement”): 
 (i) The Provider shall make available, or cause to be made available, to the Company, such
administrative and other services of Daniel Huber as may be reasonably requested by the Company. In exchange therefor, the Company shall pay to the Provider the sum of $20,000 per month on the Listing Date and continuing monthly thereafter until the
Termination Date; provided, that such payments shall not exceed $360,000 in the aggregate; and provided further, that, upon the consummation of the Business Combination, any portion of such $360,000 that has not yet been paid will accelerate and
become due. 
 (ii) The Provider hereby irrevocably waives any and all right, title, interest, causes of action and claims of any kind as a
result of, or arising out of, this letter agreement (each, a “Claim”) in or to, and any and all right to seek payment of any amounts due to it out of, the trust account established for the benefit of the public shareholders of the
Company and into which substantially all of the proceeds of the Company’s initial public offering will be deposited (the “Trust Account”), and hereby irrevocably waives any Claim it may have in the future, which Claim would
reduce, encumber or otherwise adversely affect the Trust Account or any monies or other assets in the Trust Account, and further agrees not to seek recourse, reimbursement, payment or satisfaction of any Claim against the Trust Account or any monies
or other assets in the Trust Account for any reason whatsoever. 
 This letter agreement constitutes the entire agreement and understanding
of the parties hereto in respect of its subject matter and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the
transactions contemplated hereby. 

 This letter agreement may not be amended, modified or waived as to any particular provision,
except by a written instrument executed by the parties hereto. 
 No party hereto may assign either this letter agreement or any of its
rights, interests, or obligations hereunder without the prior written approval of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or
title to the purported assignee. 
 Any litigation between the parties (whether grounded in contract, tort, statute, law or equity) shall be
governed by, construed in accordance with, and interpreted pursuant to the laws of the State of New York that apply to contracts made and performed entirely within such State. 

[Signature Page Follows] 

  
 2 

 
			
	Very truly yours,
	
	KENSINGTON CAPITAL ACQUISITION CORP. V
		
	By:	 	/s/ Justin Mirro
		 	Name: Justin Mirro
		 	Title:   Chairman and Chief Executive Officer

  

			
	Agreed:
	
	DEHC LLC
		
	By:	 	/s/ Daniel Huber
		 	Name: Daniel Huber
		 	Title: Managing Member

 [Signature Page to Services Agreement] 

  
 3Exhibit 10.1

 

	1 July 2020	 	 
	 	 	ABN 93 096 635 246
		 	Level 25 Rialto South
	Mr Joel Latham 26 Highbury Road	 	525 Collins Street
	North Kellyville NSW 2155	 	Melbourne VIC 3000

 

Dear Joel,

 

Change in employment arrangements

 

It is with pleasure that I provide you with documentation setting out
revised arrangements for your employment with Incannex Healthcare Limited {"IHL"}, effective from 1 July 2020.

 

The new remuneration and benefit terms in the role of Managing Director
will take effect upon your signing and return of this document.

 

Please review the document and contact me should you have any questions
prior to signing and return.

 

For and on behalf of the Board - Glenn Fowles - Company Secretary

 

    1

     

    

 

Table of Contents

Incannex Healthcare Limited - Employment
Contract

01 July 2020

 

	 	 	Category	 	Sub Category	 	Page
	1.	 	Employment	 	 	 	3
	1.1	 	 	 	Engagement	 	3
	1.2	 	 	 	Employment Commencement Date	 	3
	1.3	 	 	 	Exclusivity	 	3
	1.4	 	 	 	Employment Contract Term	 	3
	2.	 	Employment Duties	 	 	 	3
	2.1	 	 	 	Your Duties	 	3
	2.2	 	 	 	Hours of Work	 	3
	2.3	 	 	 	Reporting Relationship	 	3
	2.4	 	 	 	Work Location	 	4
	2.5	 	 	 	Adherence to Policies & Procedures	 	4
	3.	 	Remuneration Package	 	 	 	4
	3.1	 	 	 	Salary	 	3
	3.2	 	 	 	Superannuation	 	
	3.3	 	 	 	Salary Review	 	
	3.4	 	 	 	Short Term Incentive (STI)	 	
	3.5	 	 	 	Long Term Incentive (LTI)	 	
	3.6	 	 	 	Travel & Business Expenses	 	
	4.	 	Leave	 	 	 	4
	4.1	 	 	 	Annual Leave	 	4
	4.2	 	 	 	Sick Leave	 	4
	4.3	 	 	 	Long Service Leave	 	4
	4.4	 	 	 	Special leave	 	4
	5.	 	Confidentiality & Intellectual Property	 	 	 	4
	5.1	 	 	 	Confidentiality	 	4
	5.2	 	 	 	Intellectual Property	 	4
	6.	 	Workplace Health & Safety	 	 	 	4
	 	 	 	 	 	 	
	7.	 	Dispute Resolution	 	 	 	5
	7.1	 	 	 	Dispute Resolution procedure	 	5
	7.2	 	 	 	General Dispute Resolution	 	5
	8.	 	Unsatisfactory Work Performance	 	 	 	 
	8.1	 	 	 	Unsatisfactory Work Performance Procedure	 	5
	9.	 	Termination	 	 	 	6
	9.1	 	 	 	Termination for Unsatisfactory Performance or Behaviour	 	6
	9.2	 	 	 	Termination Regarding a Serious Breach	 	6
	9.3	 	 	 	Voluntary Resignation	 	6
	9.4	 	 	 	Termination with Notice	 	7
	9.5	 	 	 	Redundancy	 	7
	9.6	 	 	 	Termination Payment	 	7
	9.7	 	 	 	Return of Company Property	 	7
	10.	 	Restraint on your Conduct	 	 	 	7
	10.1	 	 	 	Involuntary termination	 	7
	10.2	 	 	 	Voluntary termination	 	8
	11.	 	Other	 	 	 	8
	11.1	 	 	 	Governing Law	 	8
	11.2	 	 	 	Waiver	 	8
	11.3	 	 	 	Severance	 	8
	11.4	 	 	 	Contract Amendment	 	8
	 	 	Contract Signatures	 	 	 	9
	 	 	Schedule 1	 	 	 	10
	 	 	Remuneration Summary	 	 	 	10

 

    2

     

    

 

Incannex
Healthcare Limited (IHL)

Employment
Contract for Senior Staff – Joel Latham

1
July 2020

 

	1.	Employment	 	 
	 	 	 	 
	1.1	Engagement	 	Incannex
    Healthcare Limited (IHL) agrees to employ you to perform the duties as outlined in your current position description any associated
    performance agreements, which fall within your position scope.

     

    Subject
    to the relevant laws, this employment contract (referred to as 'Contract') constitutes your entire contract of employment with IHL.

     

    It
    supersedes any prior understanding or employment Contract between you and IHL and/or its subsidiary companies.

	 	 	 	 
	1.2	Employment
    Commencement Date	 	Your
    employment under this contract commenced on 1 July 2018 and your employment contract is open ended.

     

    The
    revised remuneration terms are updated for FY21 and beyond (where applicable) within Schedule 1

	 	 	 	 
	1.3	Exclusivity	 	You
    agree that your services shall be exclusive to IHL during the term of this Contract and that you will not during this period, without
    the prior written consent of IHL, be engaged in or undertake any work for any other person, firm or corporation.
	 	 	 	 
	1.4	Employment
    Contract Term	 	The
    terms of the contract are open ended and will remain in force until termination by either the Employer or Employee. Termination arrangements
    are defined in Clause 9.
	 	 	 	 
	2.	Employment
    Duties
	 	 
	2.1	Work
    Duties	 	During
    the term of your employment, you will do the following:

    

    

    

    

    

	 	 	 	 
	 	 	 	1. 	Faithfully
    and diligently perform the duties and exercise the powers consistent with the position that may be assigned to them by IHL.
	 	 	 	 	 
	 	 	 	2. 	Comply
    with all reasonable directions given by IHL.
	 	 	 	 	 
	 	 	 	3. 	Observe
    and comply with the provisions set out in any existing written policy, practice or procedure circulated by IHL.
	 	 	 	 	 
	 	 	 	4. 	Use
    your best endeavours to promote the interests of IHL.
	 	 	 	 	 
	 	 	 	5. 	Protect
    the property of IHL from theft, loss, damage, or neglect and without delay give notice immediately to the Company of any theft, loss,
    damage or neglect of that property which may come to your knowledge.
	 	 	 	 	 
	2.2	Hours
    of Work	 	The
    normal hours of work will be a minimum of 40 hours per week to be worked flexibly between the hours of 7am and 7pm Monday to Friday.

                                                                                                 

    As
    this is a professional role you may be required to work outside these hours as reasonably necessary to perform the work.

	 	 	 	 
	2.3	Reporting
    Relationship	 	You
    will report to the Chairman of the Board of IHL.

     

    Your
    reporting relationship may change from time to time to respond to the future needs of the business.

 

    3

     

    

 

	2.4	Work
    Location	 	You
    will work, primarily, in premises provided by IHL location in Sydney.
	 	 	 	 
	2.5	Adherence
    to IHL Policies and Procedures	 	It
    is a condition of employment that you abide by all IHL policies and procedures as developed over time and communicated to you.
	 	 	 	 
	3.	Remuneration
    Package	 	 
	 	 	 	 
	3.1	Remuneration	 	Your
    remuneration and the terms and duration of the applicable items of remuneration are set out in Schedule 1
	 	 	 	 
	4.	Leave	 	 
	 	 	 	 
	4.1	Annnual
    Leave	 	1.	You
                                            will be provided with 20 days paid annual leave per annum which can be taken in accordance
                                            with IHL policy.

    

    

	 	 	 	 
	 	 	 	2. 	No
    more than 2 year's annual leave can be accrued at any one time.
	 	 	 	 
	 	 	 	3. 	Annual
    Leave will be taken to suit both the ongoing business requirements and your preferences.
	 	 	 	 	 
	4.2	Sick
    Leave	 	1.	You
                                            will be provided with up to 10 days sick leave per annum which does not accumulate nor will
                                            it be paid out on departure.

    

	 	 	 	 
	 	 	 	2. 	In
    the case of any long-term sickness, leave will be given at the discretion of the Chairman.
	 	 	 	 	 
	4.3	Long
    Service Leave	 	Long
    Service Leave will be payable in line with government legislated provisions.
	 	 	 	 
	4.4	Special
    Leave	 	At
    the discretion of the Chairman, you may be granted special leave for other purposes than those described above.
	 	 	 	 
	5.	Confidentiality
    and Intellectual Property	 	 
	 	 	 	 
	5.1	Confidentiality	 	You
    will not without prior written consent of IHL, disclose or use any confidential information of any kind concerning the business,
    affairs or customs of IHL which may come to your knowledge, except:

     

    Disclose
    or use in the proper course of your duties;

     

    Information
    which is freely available to the public;

    

    

	 	 	 	 
	 	 	 	●	To
    the extent you are required to disclose information by law or requirement of any regulatory body.
	 	 	 	 
	 	 	 	●	The
    obligations under this clause survive the termination of this Contract for a period of 12 months.
	 	 	 	 
	5.2	Intellectual
    Property Rights	 	You
    will acknowledge that copyright in any original material created by you in the course of your duties will vest with IHL.
	 	 	 	 
	6.	Workplace
    Health & Safety (OHS)	 	 
	 	 	 	 
	6.1	 	 	1.	IHL
                                            agrees to comply with State and Commonwealth Occupational Health & Safety (OH&S)
                                            laws and any relevant industry codes of practice.

    

    

    

    

	 	 	 	 
	 	 	 	2. 	You
    will agree to carry out any instructions, policies and decisions made to promote and maintain a safe workplace required by relevant
    OH&S legislation, including any further requirements specific to the employer's industry and workplace - even if not specified
    in the legislation.
	 	 	 	 
	 	 	 	3. 	Smoking
    is not permitted in any of the work areas.
	 	 	 	 
	 	 	 	4. 	IHL
    requires that you not be affected by alcohol or illegal drugs during working hours for your own safety and for that of others.
	 	 	 	 
	 	 	 	5.	If
    you are temporarily under medication or any condition that may affect or limit your ability to carry out normal job tasks, you are
    to advise IHL and, if required, alternative work arrangements may be made.

 

    4

     

    

 

	7.	Dispute
    Resolution	 	 
	 	 	 	 
	7.1	Dispute
    Resolution Procedure	 	During
    the life of this employment contract if IHL or you are in dispute with one another then the following process is agreed to:

     

    Step
    1 – You and the Chairman

     

    Both
    an IHL manager and you agree to attempt to resolve the matter at the workplace level by meeting and discussing the matter.

     

    Step
    2 – You and the Board

     

    If
    the matter is not settled at such a meeting, you may arrange further discussions involving the full Board members.

     

    Both
    parties agree to the right of IHL or you to appoint, in writing, another person to represent, or assist in settling the matter at
    the workplace level.

     

    Step
    3 – External mediation

     

    If
    the matter cannot be resolved at the workplace level, then if both parties agree, a dispute may be referred to mediation by a mutually
    agreed independent person or organisation.

     

    If
    a matter is referred to mediation, both parties must participate in the mediation process in good faith and a willingness to settle.

	 	 	 	 
	7.2	General
    Dispute Resolution	 	1. 
	During
                                            any of the steps above IHL and you will continue to work according to the employment contract
                                            unless you have a 'reasonable concern' about an immediate risk to your health or safety.

    

    

    

	 	 	 	 
	 	 	 	2. 	Even
    with this 'reasonable concern' but subject to relevant provisions of any State or Territory occupational health and safety law, you
    must not unreasonably fail to comply with an instruction by IHL to perform other available work.
	 	 	 	 	 
	 	 	 	3. 	Available
    work may be at the same workplace or another reasonably accessible workplace. Such work must be safe and appropriate for you to perform.
	 	 	 	 	 
	 	 	 	4. 	During
    the term of the dispute, the parties agree not to commence legal action unless the party commencing the action has genuinely attempted
    to settle the dispute at the workplace level.
	 	 	 	 
	8.	Unsatisfactory
    Work Performance	 	 
	 	 	 	 
	8.1	Unsatisfactory
    Work Performance Procedure	 	Step
    1: Discussion and First Warning

    

    

    

    

    

    

    

    

    

    

	 	 	 	 
	 	 	 	1. 	If
    IHL is concerned about your work performance or conduct, a manager will meet with you and explain their concerns to you.
	 	 	 	 	 
	 	 	 	2. 	The
    manager will advise you, in writing, of the standard of work or behaviour that is required and discuss ways and methods to improve
    your work and/or conduct.

 

    5

     

    

 

	 	 	 	3. 	The
    manager and you will sign and date this written document.
	 	 	 	 	 
	 	 	 	4. 	This
    written warning will be placed on your personnel file.
	 	 	 	 	 
	 	 	 	5. 	The
    manager will then provide you with a reasonable period of time to reach an acceptable work performance or conduct and you will be
    warned that your employment will be ended if acceptable performance levels or appropriate behaviour are not reached.
	 	 	 	 
	 	 	 	Step
    2: IHL Feedback on Progress and Second Warning
	 	 	 	 
	 	 	 	1. 	During
    the set period, the manager will discuss with you whether there has been any improvement and, if necessary, to further warn you,
    in writing, that your employment will end if that improvement is not reached.
	 	 	 	 
	 	 	 	2. 	Again,
    the manager and you will sign and date this written document.
	 	 	 	 
	 	 	 	Step
    3: Termination
	 	 	 	 
	 	 	 	If
    your performance or behaviour has not improved after the 2 meetings and the written warnings above a senior manager will work towards
    terminating your employment.
	 	 	 	 
	9.	Termination	 	 
	 	 	 	 
	9.1	General	 	IHL
    may terminate your employment if your performance or behaviour is unsatisfactory by giving you notice. The general procedure outlined
    in Clause 8.1 of this contract will be adhered to before termination of employment is considered.

    

    

	 	 	 	 
	 	 	 	1. 	IHL
    may pay you in lieu of the required period of notice. Such payment will be calculated on your Fixed Reward in Schedule 1.
	 	 	 	 
	 	 	 	2. 	If
    you resign from IHL's employment you must give a minimum of 3 month's notice.
	 	 	 	 
	9.2	Termination
    where there is a Breach by you	 	IHL
    may immediately terminate this Contract, in writing and without any notice period or payment, where you:

    

    

    

    

    

	 	 	 	 
	 	 	 	●	Commit
    any serious breach of this Contract, including, without limitation, intentional disobedience, dishonesty, serious or persistent breach
    of duty or serious or persistent neglect;
	 	 	 	 
	 	 	 	●	Materially
    breach this Contract and do not remedy that breach within an acceptable time after receiving written notice from the IHL specifying
    the breach;
	 	 	 	 
	 	 	 	●	Become
    of unsound mind or whose person or estate is liable to be dealt with in any way under the laws relating to mental health;
	 	 	 	 
	 	 	 	●	Are
    convicted of a criminal offence, which, in the reasonable opinion of IHL, will detrimentally affect the Company.
	 	 	 	 
	 	 	 	At
    IHL's discretion, you may be given 14 days to rectify the breach before termination is considered.
	 	 	 	 
	9.3	Voluntary
    Resignation	 	●	If
                                            you resign from IHL's employment you must give a minimum of 3 month's notice; and

    

	 	 	 	 	 
	 	 	 	●	There
    will be no further notice payment in these circumstances.

 

    6

     

    

 

	9.4	Termination
    with Notice	 	IHL
    reserves the right to issue you with a termination notice at any time. In such circumstances, you will be entitled to 3 months' salary,
    based upon your Fixed Reward applicable at the date of such notice.
	 	 	 	 
	9.5	Termination
    due to Redundancy	 	In
    the event of your position becoming redundant your employment may be terminated. In such circumstances, you may be eligible for redundancy
    entitlements in accordance with relevant legislation and IHL's Redundancy Policy that applies at that time. In such event the applicable
    notice period or payment in lieu thereof is either the period described in 9.4 above or the period provided for in accordance with
    relevant legislation, or the IHL Redundancy Policy, whichever is greater
	 	 	 	 
	9.6	Termination
    Payment	 	 If your employment is terminated by IHL under Clauses 9.1 and 9.2, the company will not be obliged to pay the employee any monies other than the following:
	 	 	 	 	 
	 	 	 	●	Any
    accrued salary to which you are entitled on the date your employment is terminated.
	 	 	 	 	 
	 	 	 	●	You
    will be paid your required notice period and it may be paid in lieu if you have been terminated because of performance or
    behaviour. Such
    payment will be calculated on your Fixed Reward in Schedule 1
	 	 	 	 	 
	 	 	 	̜●	You
    will not be paid any notice period if a serious breach has been determined.
	 	 	 	 	 
	 	 	 	●	Any
    amount to which you may be entitled in lieu of unused annual leave;
	 	 	 	 	 
	 	 	 	●	Any
    amount to which you are entitled under the state long service leave legislation.
	 	 	 	 	 
	9.7	Return
    of Company Property	 	On
    termination of this Contract you will immediately return to IHL all company property which may then be in your possession, power
    or control.
	 	 	 	 
	10.	Restraint
    on your Conduct	 	 
	 	 	 	 
	10.1	 	 	If
    IHL terminates If IHL terminates your employment as per clause 9 you will be subject to the following restraints on your future employment:

     

    There
    will be a 3-month restraint period where you must not:

    

    

    

    

	 	 	 	 
	 	 	 	1.	Solicit,
    canvas, approach or accept any approach from any person who was at any time during your last 12 months with IHL a client of the company
    in that part or parts of the business in which you were employed, with a view to obtaining the custom of that person in a business
    that is the same or similar to the business conducted by IHL; or
	 	 	 	 	 
	 	 	 	2.	Interfere
    with the business or employment relationship between IHL and its customers, employees or suppliers.
	 	 	 	 	 
	 	 	 	3.	Other
    than the obligation for payment determined under the relevant items in clause 9, IHL is under no obligation to make any additional
    payment in respect of the restraint period of this clause 10
	 	 	 	 	 
	 	 	 	4.	IHL
    reserves the absolute right to waive such restraint terms

 

    7

     

    

 

	10.2	 	 	If
    you voluntarily resign from IHL employment as per clause 9:

    

    

    

	 	 	 	 
	 	 	 	1. 	The
    restraint terms of Clause 10.1 (1) to 10.1 (4) above will apply during the notice period; and
	 	 	 	 
	 	 	 	2. 	During
    the 3 month restraint period you must not engage or prepare to engage in any business or activity that is the same or similar to
    that part or parts of the business carried on by IHL in which you were employed at any time during your last 12 months of employment
    with IHL; and
	 	 	 	 
	 	 	 	3. 	the
    restraint period will run concurrently with the notice period.
	 	 	 	 
	11.	Other	 	 
	 	 	 	 
	11.1	Governing
    Law	 	This
    Contract shall be read and construed in accordance with the laws of Victoria and the parties agree to submit to the jurisdiction
    of the Courts of Victoria.
	 	 	 	 
	11.2	Waiver	 	No
    failure or delay to exercise any right, power or remedy under this Contract will operate as a waiver to any clauses now or in the
    future.
	 	 	 	 
	11.3	Severance	 	Any
    provision of this Contract which is prohibited or unenforceable in any jurisdiction will be ineffective to the extent of the prohibition
    or unenforceability. That will not invalidate the remaining provisions of this Contract nor affect the validity or enforceability
    of that provision in any other jurisdiction.
	 	 	 	 
	11.4	Contract
    Amendment	 	This
    Contract may be amended only in writing and agreed to by both parties
	 	 	 

 

    8

     

    

 

Employment
Contract Signatures

 

This
Employment Contract is between:

 

Incannex
Healthcare Limited ACN 096 635 246 (IHL)

incorporated in the State of Victoria

 

and

 

Joel
Latham

 

IHL
has agreed to employ you, Joel Latham, and you have agreed to serve IHL on the terms contained in this Employment Contract.

 

		1.	Signed
                                            on behalf of Incannex Health Limited (ACN 096 635 246) by order of the Board of Directors

 

	Glenn Fowles	 
	Company Secretary	Date
                                            01 July 2020

 

		2.	Signed
                                            by:

 

	Joel Latham	Date
                                                 July 2020

 

    9

     

    

 

Schedule
1 Incannex Healthcare Limited (IHL) Employment Contract

 

Joel
Latham - Remuneration

 

	Remuneration
    Item	 	Specifics
	1.
    Base Salary	 	You
    will be paid $230,000 per annum with your base salary payable in equal instalments in line with normal IHL payroll cycles.
	 	 	 
	2.
    Director’s Fees	 	In
    addition to your Base Salary, you will be paid $30,000 per annum as Director's Fees from the date of your appointment as a director
    up until the date of your resignation or termination from the Board. This amount will be added to your Base Salary and paid in equal
    instalments in line with normal IHL payroll cycles and be subject to PAYG income tax
	 	 	 
	3.
    Superannuation	 	Your
    Base Salary will be exclusive of the Superannuation Guarantee Charge (SGC) of 9.5% applicable which will be paid in line with legislation
    changes as and when it is enacted.

     

    Your
    Director's Fees are inclusive of SGC.

     

    Both
    the SGC contribution and any other employee contributions can be salary sacrificed, monthly, into an approved superannuation fund.

	 	 	 
	4.
    Vehicle Allowance	 	You
    are also entitled to a Vehicle Allowance as described in your original employment contract and applicable from 1 July 2018
	 	 	 
	5.
    Equity Component	 	(i)  
	You
                                            will also receive an annual allocation of equity in the form of Shares and Options.

    

    

    

    

    

    

	 	 	 
	 	 	(ii) 	Shares
    and Options will be issued as at 1 July each year.
	 	 	 
	 	 	(iii) 	The
    quantity of the share allocations will be determined annually based on the share price at the date of issue.
	 	 	 
	 	 	(iv) 	Options
    will be issued with a strike price equal to 100% of the 15-day VWAP price of shares traded on ASX immediately prior to the date of
    issue and rounded to the nearest whole cent.
	 	 	 
	 	 	(v) 	Shares
    issued will be subject to voluntary escrow and vesting terms set down in Table 1 of this Schedule 1.
	 	 	 
	 	 	(vi) 	Options
    issued will be subject to voluntary escrow, vesting and expiry terms set out in Table 2 of this Schedule 1.
	 	 	 
	 	 	(vii) 	All
    share and options issuance will be subject to shareholder approval as required by ASX Listing Rules.
	 	 	 
	6. Short Term Incentive
    (“STI”)
	 	(i) 
	You
may also be eligible to participate in an STI of up to 50% of your Base Salary.

    

	 	 	 
	 	 	(ii) 	Your
    reward in the STI will be completely at the discretion of the board of directors and subject to any approvals required under ASX
    Listing Rules.
	 	 	 
	 	 	(iii) 	STI
    rewards, at the election of the employee the subject of this agreement, can be made paid to that employee in the form of ordinary
    fully paid shares at a price determined as 75% of the 15-day VWAP price of shares traded on ASX immediately prior to the date of
    issue.

 

    10

     

    

 

TABLE
1 - Terms and conditions Equity Component - Shares

 

	Quantity	 	2,952,619
    Shares on 1 July 2020.
	 	 	 
	 	 	The
    same equivalent $ value each year thereafter. For the avoidance of doubt the quantity of shares issued on 1 July 2020 and thereafter
    will be determined by the following formula: 1,750,000 x the 15-day VWAP share price on the ASX as at 1 July 2019/15 day VWAP on
    the day of issue.
	 	 	 
	 	 	For
    this issue:
	 	 	 
	 	 	 	●	15-day VWAP of 1
    July 2019 = $0.0822080
	 	 	 	 
	 	 	 	●	15-day VWAP of 1
    July 2020 = $0.0487242
	 	 	 	 
	 	 	 	●	1,750,000 x (0.0822080/0.0487242)
    = 2,952,619
	 	 	 	 
	Description of
    Shares	 	IHL
    restricted ordinary shares
	 	 	 
	Issue date	 	1 July
    2019 and each year thereafter.
	 	 	 
	Vesting	 	1/3rd
    of the Quantity each vesting on the 1st, 2nd and 3rd anniversary of the Issue date {"Share Vesting Date"} into fully paid
    IHL ordinary shares (unrestricted) on the condition that the employee remains under employment contract as at the applicable Share
    Vesting Date
	 	 	 
	Forfeiture	 	All
    unvested Shares are forfeited and cancelled upon the employee's resignation or termination of employment under clause 9.2 of this
    agreement.

 

TABLE
2 - Terms and conditions Equity Component - Options

 

	Quantity	 	2,250,000
    Options
	 	 	 
	Description
    of Options	 	IHL
    unlisted CEO options
	 	 	 
	Strike
    Price	 	15-day
    VWAP rounded to nearest cent at issue date.
	 	 	 
	 	 	For
    this issue:
	 	 	 
	 	 	 	●	15-day
    VWAP of 1 July 2020 = $0.0487242
	 	 	 	 	 
	 	 	 	●	Rounded
    to nearest cent = $0.05
	 	 	 	 	 
	Issue
    date(s)	 	Annually
    on 1 July
	 	 	 
	Vesting	 	Each
    series of options will vest 3 years from the date of issue ("Options Vesting Date") on the condition that the employee
    remains under employment contract as at the applicable Options Vesting Date
	 	 	 
	Exercise
    date	 	7
    years from each series Options Vesting Date
	 	 	 
	Forfeiture	 	All
    unvested options are forfeited and cancelled upon the employee's resignation or termination of employment under clause 9.2 of this
    agreement.

 

 

 

11

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