Document:

Exhibit 10.7

 

Immuron Limited

ACN 063 114 045

 

Executive Share Option Plan

 

Middletons Lawyers

 

Melbourne office

 Ref:AXG

 

     

     

    

 

Table of Contents

 

	1.	The plan	1
	 	 	 
	2.	Eligibility	1
	 	 	 
	3.	Participation	1
	3.1	Invitation to participate	1
	3.2	Application form	1
	3.3	Participant bound by application form, rules and constitution	2
	 	 	 
	4.	Grant of options	2
	4.1	Grant of options	2
	4.2	No payment for options	2
	4.3	Options non-transferable	2
	4.4	Option certificate	2
	4.5	Limit on issues of new shares	2
	 	 	 
	5.	Exercise of options	3
	5.1	Manner of exercise of options	3
	5.2	Exercise conditions	3
	5.3	Control event	3
	5.4	Issue or transfer of shares on exercise	3
	5.5	Shares rank equally	3
	5.6	Quotation on ASX	3
	5.7	Financial assistance	4
	 	 	 
	6.	Cessation of employment and lapsing of options	4
	6.1	Resignation, retirement, redundancy and Permanent Disability	4
	6.2	Death	4
	6.3	Cessation for any other reason	4
	6.4	Liquidation	5
	6.5	Fraud	5
	6.6	Forfeiture conditions	5
	6.7	Lost Options	5
	6.8	End of exercise period	5
	 	 	 
	7.	Changes in circumstances	5
	7.1	Reconstruction	5
	7.2	Participation in new issues	6
	7.3	Adjustment to number of underlying securities - bonus issues	6
	 	 	 
	8.	Amendment	6
	 	 	 
	9.	Powers of the Board	6
	9.1	Powers of the Board	6
	9.2	Indemnification	6
	9.3	Commencement of Plan	7
	9.4	Termination or suspension of Plan	7
	9.5	Resolution to terminate, suspend, supplement or amend	7
	 	 	 
	10.	Powers of the administrator	7
	10.1	Appointment of administrator	7

 

     

     

    

  

Table of Contents (ctd)

 

	10.2	Role of administrator	7
	 	 	 
	11.	Contracts of employment and other employment rights	7
	11.1	Discretion of board	7
	11.2	No right to grant of options	7
	11.3	Calculation of employee benefits	7
	11.4	No right to future employment etc.	7
	11.5	Acknowledgment by Participant	8
	 	 	 
	12.	Connection with other plans	8
	 	 	 
	13.	Notices	8
	 	 	 
	14.	General	8
	 	 	 
	15.	Plan costs	8
	15.1	Plan Costs	8
	15.2	Reimbursement	8
	 	 	 
	16.	Overseas Eligible Persons	8
	 	 	 
	17.	Governing law	9
	 	 	 
	18.	Definitions and interpretation	9
	18.1	Definitions	9
	18.2	Interpretation	11

 

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Immuron
Limited Executive Share Option Plan

 

		1.	The plan

 

The purpose of the Plan is to
provide Eligible Persons with an incentive to remain with or continue the provision of services to, the Group and to improve the
longer-term performance of the Company and its return to shareholders. It is intended that the Plan will enable the Group to retain
and attract skilled and experienced employees, consultants and advisers by providing them with additional motivation to make the
Group more successful.

 

The Plan shall only apply to Options
to acquire Shares in the Company

 

		2.	Eligibility

 

The Board may determine at any
time that any Eligible Person is not entitled to participate in the Plan if the Eligible Person’s participation would be
unlawful.

 

		3.	Participation

 

		3.1	Invitation to participate

 

Subject to these rules, the Board
may invite any Eligible Person selected by it to complete an Application Form relating to a specified number of Options allocated
to that Eligible Person by the Board. The Eligible Person may by notice in writing to the Board accept a lesser number of Options
specified in the offer and may nominate a Permitted Nominee to accept the whole or lesser number of Options offered. The Board
must approve in writing any Options being granted to a Permitted Nominee.

 

		3.2	Application form

 

The Board must give to each Eligible
Person invited to complete an Application Form, an Application Form together with the following information relating to the Options
allocated to the Eligible Person:

 

		(a)	the date of grant or intended date of grant;

 

		(b)	the total number of Options to be granted;

 

		(c)	the Exercise Period;

 

		(d)	the Exercise Price or the method of determining the Exercise Price;

 

		(e)	the Exercise Conditions attaching to the Options (if any);

 

		(f)	the Disposal Restrictions attaching to any Shares issued on exercise (if any);

 

		(g)	the Forfeiture Conditions attaching to the Options (if any);

 

		(h)	any other terms and conditions relating to the grant which, in the opinion of the Board, are fair
and reasonable but not inconsistent with these rules;

 

		(i)	in respect of the initial grant made to an Eligible Person, a summary, or a copy of these rules;
and

 

     

     

    

  

		(j)	any other information or documents required to be notified by the Corporations Act or the Listing
Rules.

 

		3.3	Participant bound by application form, rules and constitution

 

By completing and returning the
Application Form, a Participant agrees to be bound by the terms of the Application Form, these rules and the Constitution.

 

		4.	Grant of
                                         options

 

		4.1	Grant of options

 

The Board may grant Options to
a Participant on acceptance of a duly signed and completed Application Form.

 

		4.2	No payment for options

 

Unless otherwise determined by
the Board, no payment is required for the grant of Options under the Plan.

 

		4.3	Options non-transferable

 

An Option granted under the Plan
is not capable of being transferred or encumbered by a Participant or a Permitted Nominee, unless the Board determines otherwise.
The Company has no obligation to apply for quotation of the Options on the ASX.

 

		4.4	Option certificate

 

The Company must issue a Certificate
to a Participant in respect of the Options granted to that Participant. The Company must comply with the provisions of the Constitution,
the Listing Rules and the Corporations Act relating to the issue of the Certificate.

 

		4.5	Limit on issues of new shares

 

The Company shall not offer or
issue Options to any Eligible Person in accordance with the Plan if the total number of Shares the subject of Options when aggregated
with:

 

		a)	the number of options to be granted;

 

		b)	the number of Shares which would be issued if all current Options granted under any Group company
employee incentive scheme (including the Plan) were exercised;

 

		c)	the number of Shares which would have issued as a result of the exercise of Options granted under
any Group company employee incentive scheme (including the Plan) of the Company where Options were granted during the preceding
five years; and

 

		d)	all other Shares issued pursuant to any Group company employee incentive scheme (including the
Plan) of the Company during the preceding five years,

 

would exceed 5% of the total number
of issued shares as at the time of the proposed offer.

 

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		5.	Exercise
                                         of options

 

		5.1	Manner of exercise of options

 

The exercise of any Option granted
under the Plan may only be affected in such form and manner as the Board may prescribe.

 

		5.2	Exercise conditions

 

Subject to rules 5.3 and 6, an
Option granted under the Plan may only be exercised:

 

		(a)	if all the Exercise Conditions have been met;

 

		(b)	if the Exercise Price has been paid to the Company or as the Company may direct; and

 

		(c)	within the Exercise Period relating to the Option.

 

An Option granted under the Plan
may not be exercised once it has lapsed.

 

		5.3	Control event

 

Notwithstanding rule 5.2, the
Board may determine that an Option may be exercised, whether or not any or all applicable Exercise Conditions have been met, on
the occurrence of a Control Event.

 

		5.4	Issue or transfer of shares on exercise

 

Following exercise of an Option
by a Participant, the Company must, within such time as the Board determines, allot and issue or procure the transfer to the Participant
of the number of Shares in respect of which the Option has been exercised, credited as fully paid.

 

		5.5	Shares rank equally

 

Subject to the satisfaction of
any applicable Disposal Restrictions, Shares allotted and issued under the Plan will rank equally in all respects with all other
Shares from the date of allotment and issue, including:

 

		(a)	voting rights; and

 

		(b)	entitlements to participate in:

 

		(i)	distributions and dividends; and

 

		(ii)	future rights issues and bonus issues,

 

where the record date for determining
entitlements falls on or after the date of allotment and issue.

 

		5.6	Quotation on ASX

 

The Company must apply for quotation
on the official list of the ASX of Shares allotted and issued on the exercise of Options as soon as practicable after the allotment
and issue of those Shares, so long as Shares are quoted on the official list of ASX at that time.

 

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		5.7	Financial assistance

 

The Company may financially assist
a person through the provision of loan funds on a fully recourse basis to pay for the grant of an Option, to pay any Exercise Price
for an Option or to acquire Shares under the Plan, subject to compliance with the provisions of the Corporations Act and the Listing
Rules relating to financial assistance. Shares issued through the exercise of Options and paid for with loan funds provided by
the Company will be placed in escrow and will have Disposal Restrictions placed on those Shares.

 

		6.	Cessation
                                         of appointment/employment and lapsing of options

 

		6.1	Resignation, retirement, redundancy and Permanent Disability

 

If a Participant ceases to be
appointed as director or employed by or, in the case of a consultant, contracted by any member of the Group due to his or her resignation,
retirement, retrenchment by reason of redundancy or Permanent Disability:

 

		(a)	all Options granted to that Participant as at the date of cessation which are Vested Options
may be exercised by that Participant in the 6 month period following the date of cessation of appointment or employment (and
the Exercise Period is amended accordingly), after which those Vested Options will lapse; and

 

		(b)	all other Options granted (but not vested) to that Participant will lapse, unless the Board
determines otherwise, in which event the Board will determine the period within which those other Options may be exercised following
the date of cessation of appointment or employment (and the Exercise Period is amended accordingly), after which those other Options
will lapse.

 

		6.2	Death

 

If a Participant ceases to be
appointed or employed by or contract to any member of the Group due to his or her death:

 

		(a)	all Options granted to that Participant as at the date of cessation which are Vested Options may
be exercised in the 12 month period following the date of cessation of appointment or employment (and the Exercise Period is amended
accordingly), after which those Vested Options will lapse; and

 

		(b)	all other Options granted (but not vested) to that Participant will lapse, unless the Board determines
otherwise, in which event the Board will determine the period within which those other Options may be exercised following the date
of cessation of appointment or employment (and the Exercise Period is amended accordingly), after which those other Options will
lapse.

 

		6.3	Cessation for any other reason

 

If a Participant ceases to be
appointed, employed or in the case of a consultant engaged by any member of the Group for any reason other than those contemplated
by rules 6.1 and 6.2:

 

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		(a)	all Options granted to that Participant as at the date of cessation which are Vested Options and
which have been vested for a period of six months prior to the date of cessation may be exercised in the 3 month period following
the date of cessation of appointment or employment (and the Exercise Period is amended accordingly), after which those Vested Options
will lapse; and

 

		(b)	all other Options granted (but not vested) to that Participant will lapse, unless the Board determines
otherwise, in which event the Board will determine the period within which the Options may be exercised following the date of cessation
of appointment or employment (and the Exercise Period is amended accordingly), after which the Options will lapse.

 

		6.4	Liquidation

 

On Liquidation, all Options which
are not Vested Options will lapse.

 

		6.5	Fraud

 

If, in the opinion of the Board,
a Participant (or, where a Participant is a person nominated by an Eligible Person, the employee or director who nominated the
Participant) has acted fraudulently or dishonestly, the Board may determine that any Option granted to that Participant should
lapse, and the Option will lapse accordingly.

 

		6.6	Forfeiture conditions

 

An Option will lapse on the occurrence
of a Forfeiture Condition relating to that Option, unless the Board determines otherwise.

 

		6.7	Lost Options

 

A Participant may submit a request
to the Board that an Option granted to that Participant should lapse. On receipt of that request, the Board may determine that
the Option should lapse, in which case the option will lapse accordingly.

 

		6.8	End of exercise period

 

If an Option has not lapsed earlier
in accordance with this rule 6, it will lapse at the end of the Exercise Period.

 

		6.9	Financial assistance on cessation of appointment/employment

 

Where the expiry dates of vested
options are varied due to the circumstances set out in 6.1(a), 6.1(b), 6.2(a) and 6.2(b) above the Board may at its discretion
provide financial assistance in accordance with clause 5.7 to the Eligible Person or the Eligible Person’s representative.

 

		7.	Changes
                                         in circumstances

 

		7.1	Reconstruction

 

In the event of any reconstruction
(including consolidation, subdivision, reduction, capital return, buy back or cancellation) of the share capital of the Company,
the number of Options to which each Participant is entitled and/or the Exercise Price of those Options must be reconstructed in
accordance with the Listing Rules. Options must be reconstructed in a manner which will not result in any additional benefits being
conferred on Participants which are not conferred on other shareholders of the Company.

 

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		7.2	Participation in new issues

 

Subject to the Listing Rules,
a Participant is only entitled to participate (in respect of Options granted under the Plan) in a new issue of Shares to existing
shareholders generally if the Participant has validly exercised his or her Options within the relevant Exercise Period and become
a Shareholder prior to the relevant record date, and is then only entitled to participate in relation to Shares of which the Participant
is the registered holder.

 

		7.3	Adjustment to number of underlying securities - bonus issues

 

If there is a Bonus Issue or any
other pro rata issue to the holders of Shares, the terms for all existing Options on issue will be amended in the manner provided
by the Listing Rules (including without limitation under Chapter 6 of the Listing Rules).

 

		8.	Amendment

 

Subject to the Listing Rules,
these rules may be amended or supplemented by resolution of the Board. Unless the resolution of the Board expressly states otherwise,
any amendment or supplement to these rules will not apply to any Options granted under these rules which have not yet been exercised.

 

		9.	Powers
                                         of the Board

 

		9.1	Powers of the Board

 

The Plan will be managed by the
Board, which will have power to:

 

		(a)	determine appropriate procedures for the administration of the Plan consistent with these rules;

 

		(b)	resolve conclusively all questions of fact or interpretation arising in connection with the Plan;

 

		(c)	determine matters falling for determination under these rules in its discretion having regard to
the interests of and for the benefit of the Company;

 

		(d)	exercise the discretions conferred on it by these rules or which may otherwise be required in relation
to the Plan; and

 

		(e)	delegate to any one or more persons (for such period and on such conditions as it may determine)
the exercise of any of its powers or discretions arising under the Plan.

 

		9.2	Indemnification

 

The Company must indemnify, and
keep indemnified, to the full extent permitted by law, each person who is or has been a director or alternate director and an officer
of the Company against all proceedings, actions, claims, demands, losses, liabilities, damages, costs and expenses which may be
made, brought against, suffered or incurred by the person arising directly or indirectly out of or in connection with the administration
of the Plan.

 

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		9.3	Commencement of Plan

 

The Plan will take effect on and
from such date as the Board may resolve.

 

		9.4	Termination or suspension of Plan

 

The Board may terminate or suspend
the operation of the Plan at any time.

 

		9.5	Resolution to terminate, suspend, supplement or amend

 

In passing a resolution to terminate
or suspend the operation of the Plan or to supplement or amend these rules, the Board must consider and endeavour to ensure that
there is fair and equitable treatment of all Participants.

 

		10.	Powers
                                         of the administrator

 

		10.1	Appointment of administrator

 

The Board may appoint an Administrator
and may determine the terms and conditions of the Administrator’s appointment. The Board may remove the Administrator.

 

		10.2	Role of administrator

 

The Administrator must administer
the Plan in accordance with these rules and any procedures determined by the Board and agreed to as between the Board and the Administrator.

 

		11.	Contracts
                                         of employment and other employment rights

 

		11.1	Discretion of board

 

It is a condition of these rules
that the Plan may be terminated at any time at the discretion of the Board and that no compensation under any employment contract
will arise as a result.

 

		11.2	No right to grant of options

 

Participation in the Plan does
not confer on any Eligible Person any right to a grant of Options.

 

		11.3	Calculation of employee benefits

 

The value of the Options do not
increase a Participant’s income for the purpose of calculating any employee benefits (for example in calculating holiday
pay, salary entitlements on termination).

 

		11.4	No right to future employment etc.

 

Participation in the Plan does
not confer on any Participant any right to future employment or engagement as a consultant and does not affect any rights which
the Company may have to terminate the employment of any Participant.

 

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		11.5	Acknowledgment by Participant

 

It is acknowledged and accepted
by each Participant that the terms of the Plan do not form part of the terms and conditions of the Participant’s employment
contract, nor do the terms of the Plan constitute a contract or arrangement (including any related condition or collateral arrangement)
in relation to the Participant’s employment contract.

 

		12.	Connection
                                         with other plans

 

Unless the Board otherwise determines,
participation in the Plan does not affect, and is not affected by, participation in any other incentive or other plan operated
by the Company unless the terms of that other plan provide otherwise.

 

		13.	Notices

 

Any notice or direction given
under these rules is validly given if it is handed to the person concerned or sent by ordinary prepaid post to the person’s
last known address or given in any reasonable manner which the Board from time to time determines.

 

		14.	General

 

Notwithstanding any rule, Shares
may not be allotted and issued, acquired, transferred or otherwise dealt with under the Plan if to do so would contravene the Corporations
Act, the Listing Rules, or any other applicable laws.

 

		15.	Plan costs

 

		15.1	Plan Costs

 

Unless otherwise determined by
the Board, the Company must pay all costs, charges and expenses relating to the establishment and operation of the Plan, including
all costs incurred in or associated with an allotment, issue or acquisition of Shares for the purposes of enabling Participants
to exercise Options granted to them under the Plan.

 

		15.2	Reimbursement

 

The Company and any Associated
Body Corporate of the Company may provide money to the trustee of any trust or any other person to enable them to acquire Shares
to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by
the Corporations Act. In addition, the Company may require any Associated Body Corporate to enter into any other agreement or arrangement
as it considers necessary to oblige that Associated Body Corporate to reimburse the Company for any amounts paid by the Company
in connection with this Plan, directly or indirectly, in relation to any employee or director of that Associated Body Corporate.

 

		16.	Overseas
                                         Eligible Persons

 

The Company at the Board’s
discretion may:

 

		(a)	grant options to Eligible Persons and Participants who are resident outside of Australia; and

 

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		(b)	make regulations for the operation of the Plan which are not inconsistent with these rules to apply
to Eligible Persons and Participants who are resident outside of Australia.

 

		17.	Governing
                                         law

 

The laws of Victoria, Australia,
govern these rules.

 

		18.	Definitions
                                         and interpretation

 

		18.1	Definitions

 

In this document, unless the context
requires otherwise:

 

Accounting Standards means
the Australian Accounting Standards from time to time and if and to the extent that any matter is not covered by Australian Accounting
Standards means generally accepted accounting principles applied from time to time in Australia for a business similar to the Business.

 

Administrator means the
person (if any) selected by the Board to carry out the day to day administration of the Plan as contemplated by rule 10.1.

 

Application Form means
the form that the Board determines is to be used by an Eligible Person to apply for Options under the Plan.

 

Associated Body Corporate of
the Company means each:

 

		(a)	related body corporate of the Company, within the meaning of section 50 of the Corporations Act;

 

		(b)	body corporate that has voting power in the Company of not less than 20%; or

 

		(c)	body corporate in which the Company has voting power of not less than 20%,

 

where “voting
power” has the meaning in section 610 of the Corporations Act.

 

ASX means ASX Limited ACN
008 624 691.

 

Board means the board of
directors of the Company or a committee appointed by the board of directors of the Company.

 

Bonus Issue means a Pro
Rata Issue of Shares to holders of Shares for which no consideration is payable by them.

 

Certificate means, in relation
to a Participant, the certificate or statement (in a form approved by the Board) issued to the Participant which discloses the
number of Options entered in the register of Option holders in the name of the Participant.

 

Company means Immuron
Limited ACN 063 114 045.

 

Constitution means the
constitution of the Company.

 

Control of an entity means
having the right:

 

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		(a)	to vote 50% (or more) of the votes that can be cast on the election or removal of the entity’s
directors;

 

		(b)	to appoint or remove directors who possess 50% (or more) of the votes exercisable by all directors
of the entity; or

 

		(c)	to 50% (or more) of the profits or distributions of the entity or of its net liquidation proceeds.

 

For this definition, if the entity
does not have a board of directors, ‘director’ means a member of the entity’s governing body with a role similar
to a board of directors.

 

Control Event means any
of the following:

 

		(a)	an offer is made by a person for the whole of the issued ordinary share capital of the Company
(or any part as is not at the time owned by the offeror or any person acting in concert with the offeror) and after announcement
of the offer the offeror (being a person who did not Control the Company prior to the offer) acquires Control of the Company;

 

		(b)	any other event occurs which causes a change in Control of the Company; or

 

		(c)	any other event which the Board reasonably considers should be regarded as a Control Event.

 

Corporations
Act means Corporations Act 2001 (Cth).

 

Disposal Restrictions means,
in relation to an Option, the restrictions (if any) determined by the Board that are required to be satisfied before a Share acquired
as a result of the exercise of the Option by the Participant can be sold, transferred or otherwise dealt with by a Participant.

 

Eligible Person means an
employee, a director of or in the case of a consultant any person engaged to provide services to any member of the Group who is
determined by the Board to be an Eligible Person for the purposes of the Plan, or any other person who is determined by the Board
to be an Eligible Person for the purposes of the Plan.

 

Exercise Conditions means,
in relation to an Option, the period of time, performance hurdles and other conditions (if any) determined by the Board that are
required to be satisfied before the Option can be exercised.

 

Exercise Period means,
in relation to an Option, the period in which the Option may be exercised specified by the Board under rule 3.2, subject to any
variation under rules 5.3 and 6.

 

Exercise Price means the
Market Price of a Share determined on the date a participant was invited to complete an Application Form relating to the Option
under rule 3.1 or any other amount that is specified by the Board under rule 3.2, subject to any adjustment under rule 7.

 

Forfeiture Conditions means,
in relation to an Option, the conditions (if any) determined by the Board that will result in the Option lapsing if satisfied.

 

Group means the Company
and each Associated Body Corporate of the Company.

 

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Liquidation means the passing
of a resolution for voluntary winding up, or the making of an order for the compulsory winding up of the Company.

 

Listing Rules means the
listing rules (as defined in the Corporations Act) made or adopted by the ASX.

 

Market Price means, in
relation to an Option, the volume weighted average market price of Shares sold on the ASX on the 5 trading days immediately before
the date of determination.

 

Option means a right to
subscribe for or acquire a Share, subject to any adjustment under rule 7.31 and 7.3.

 

Participant means an Eligible
Person who has been invited to participate in the Plan and any other person who is nominated by that Eligible Person (following
receipt of an invitation by the Board under rule 3.1) and who is determined by the Board to be a Permitted Nominee for the purposes
of the Plan.

 

Permitted Nominee means
if Options are issued to a Permitted Nominee of a Participant, the Participant must, without limiting any provisions of these rules,
ensure that the Permitted Nominee complies with these rules.

 

Permanent Disability means,
in relation to a Participant, the inability, by reason of physical condition, mental illness or accident, of the Participant to
perform substantially all of the duties of the position in which the Participant has been employed or appointed or engaged (in
the case of a consultant) – in any case as determined by the Board.

 

Plan means the Immuron
Executive Share Option Plan established and operated in accordance with these rules.

 

Pro Rata Issue means an
issue which has been offered to all holders of Shares on a pro rata basis.

 

Share means a fully paid
ordinary share in the capital of the Company.

 

Vested Option means an
Option in respect of which all Exercise Conditions have been met or which are otherwise exercisable (including as contemplated
by rules 5.32 and 6).

 

		18.2	Interpretation

 

In these rules, unless the context
otherwise requires:

 

		(a)	a reference to any thing (including an amount or a provision of this document) is a reference to
the whole and each part of it;

 

		(b)	the singular includes the plural, and vice versa;

 

		(c)	the word ‘person’ includes an individual, a body corporate, a firm, an unincorporated
body, a society, an association and an authority;

 

		(d)	a reference to a particular person includes their legal personal representatives, administrators,
successors, substitutes and permitted assigns;

 

		(e)	a reference to ‘costs’ includes charges, expenses and legal costs;

 

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		(f)	a reference to a “rule” or “these rules” is to the rule or these rules
(as the case may be) as amended or replaced;

 

		(g)	a reference to the Constitution includes a reference to any provision having substantially the
same effect which is substituted for or replaces the Constitution;

 

		(h)	where a Participant is a director of any member of the Group, but is not also an employee of any
member of the Group, a reference to the employment with any member of the Group of that Participant is a reference to that Participant
holding office as a director of any member of the Group;

 

		(i)	where a Participant is a person nominated by an Eligible Person, a reference to the employment
with any member of the Group of that Participant is a reference to the employment with any member of the Group of that Eligible
Person;

 

		(j)	a Participant does not cease to be employed by any member of the Group where the Participant ceases
to be employed by one member of the Group but commences employment with another member of the Group provided that the new employment
commences within 60 days from the date of termination or such other period as the Board may determine by notice in writing;

 

		(k)	a reference to ‘law’ means statute law, common law and equitable principles;

 

		(l)	a reference to a particular law includes that law and any subordinate legislation (such as regulations)
under it, in each case as amended, replaced, re-enacted or consolidated;

 

		(m)	a reference to an accounting term is to that term as it is used in the Accounting Standards;

 

		(n)	a reference to ‘dollars’, ‘$‘or ‘A$’ is to the lawful currency
of Australia;

 

		(o)	a time means that time in Melbourne, Australia;

 

		(p)	a reference to a day or a month means a calendar day or calendar month;

 

		(q)	if a period of time starts from a given day (or event), it is to be calculated exclusive of that
day (or the day the event occurs);

 

		(r)	the masculine includes the feminine, and vice versa;

 

		(s)	the meaning of any general language is not restricted by any accompanying example and the words
‘includes’, ‘including’ ‘such as’ or ‘for example’ (or similar phrases) are not
words of limitation; and

 

		(t)	headings in this document are for convenience only and do not affect its meaning.

 

If (but for this rule) a provision
of this document would be illegal, void or unenforceable or contravene the law, this document is to be interpreted as if the provision
was omitted.

 

    	 	12Exhibit 10.9

 

LEASE

 

PREMISES:
Units 4 & 10

25-37
Chapman Street,

Blackburn
North VIC 3130

 

    	 	 	 Page 1 of 8

     

    

  

	THIS AND THE FOLLOWING PAGES FORM THE LEASE BETWEEN WATTLE LABORATORIES PTY LTD ATF THE ADVANCED CULTURE SYSTEMS UNIT TRUST ABN 12 234 517 721 AND IMMURON LTD ABN 80 063 114 045

  

Commercial
Lease Agreement

 

		1.	Landlord. Wattle Laboratories Pty Ltd ABN 12 234 517 721 the registered office of which
is situated at "Lifestyle Building", Level 1, Suite 10, 248 Maroondah Highway, Chirnside Park in the State of Victoria.
The postal address is Unit 10, 2537 Chapman Street, Blackburn North, VIC, 3130.

 

		2.	Tenant. Immuron Ltd ABN 80 063 114 045 of Unit 10, 25-37 Chapman Street, Blackburn North,
in the said State.

 

		3.	Premises. 10, 25-37 Chapman Street, Blackburn North in the said State (inclusive of car
park spaces).

 

		4.	Landlord's Installations. Includes all current services as per last inspection.

 

5.   Term
of Lease. Three (3) years commencing onFriday 1st January 2016.

 

		6.	Further Term. One (1) further term of three (3) years.

 

		6.1.	The Tenant may exercise its option to renew the lease for the Further Term by written request to
the Landlord before the final date as specified in clause 6.2.

 

		6.2.	The final date for exercising the option under clause 6.1 is Monday 15th October
2018.

 

		6.3.	The renewed lease will be for the duration of the Further Term, and will be governed by the same
terms and conditions as this agreement unless the parties agree otherwise.

 

		6.4.	Rent payable for the Further Term will be determined by the parties prior to renewal of the lease
for the Further Term.

 

		6.5.	At least six (6) months, and no more than twelve (12)
months, prior to the final date specified in clause 6.2, the Landlord must write to the Tenant notifying it of the final date.

 

		6.6.	The Landlord does not have to comply with clause 6.5 if the Tenant exercises or purports to exercise
the option before being notified by the Landlord.

 

		7.	Permitted Use of Premises. These Premises may be used for office accommodation and warehousing
facility.

 

		8.	Rent. The rent for one year is thirty eight thousand and nine hundred and forty dollars
plus GST which includes a proportion of outgoings ($38,940 plus GST). Tenant will pay this yearly rent to the Landlord in twelve
equal payments of Three thousand two hundred and forty five dollars plus GST ($3,245 plus GST per month).

 

    	 	 	 Page 2 of 8

     

    

  

		9.	Rent Review.

 

	 	CPI Review	Annually on each anniversary date of the commencement of this lease.

 

Further Terms 

	 	CPI Review	Annually on each anniversary of the commencement date of this lease

 

		10.	Repairs, Maintenance, Fire Prevention & Requirements of Authorities.

 

		10.1	Subject to Clause 10.3, the tenant must :-

 

		10.1.1	keep the premises in the same condition as at the start of the lease, except for fair wear and
tear; and

 

		10.1.2	comply with all notices and orders affecting the premises which are issued during the term.

 

		10.2	In addition to its obligations under clause 3.1, the tenant must -

 

		10.2.1	repaint or refinish all painted or finished surfaces in a workmanlike manner with as good quality
materials as previously at least once every 5 years during the term and any further term viewed as one continuous period.

 

		10.2.2	keep the premises properly cleaned and free of rubbish, keep waste in proper containers and have
it removed regularly.

 

		10.2.3	immediately replace glass which becomes cracked or broken with glass of the same thickness and
quality.

 

		10.2.4	immediately repair defective windows, light fittings, doors, locks and fastenings, and replace
missing or inoperative light- globes and fluorescent tubes, keys and key cards.

 

		10.2.5	maintain in working order all plumbing, drainage, gas, electric, solar and sewerage installations.

 

		10.2.6	promptly give written notice to the landlord or landlord's agent of -

 

		a)	damage to the premises or of any defect in the structure of, or any of the services to, the premises,

		b)	receipt of an notice or order affecting the premises,

		c)	any hazards threatening or affecting the premises, and

		d)	any hazards arising from the premises for which to landlord might be liable.

 

		10.2.7	immediately make good damage caused to adjacent property by the tenant or the tenant's agents.

 

    	 	 	 Page 3 of 8

     

    

 

		10.2.8	permit the landlord, its agents or workmen to enter the premises during normal business hours,
after giving reasonable notice (except in cases or emergency) -

		a)	to inspect the premises,

		B)	to carry out repairs or agreed alterations, and

		c)	to do anything to comply with notice or orders of any relevant authority,

bringing any necessary material
and equipment.

 

		10.2.9	carry out repairs within 14 days of being serviced with a written notice of any defect or lack
of repair which the tenant is obliged to make good under this lease. If the tenant does not comply with the notice, the landlord
may carry out the repairs and the tenant must repay the cost to the landlord within 7 days of a request.

 

		10.2.10	only use persons approved by the landlord to repair and maintain the premises, but, if the Act
applies, only use person who are suitable qualified.

 

		10.2.11	comply with all reasonable directions of the landlord or the insurer of the premises as to the
prevention, detection and control of fire.

 

		10.2.12	on vacating the premises, remove all signs and make good any damage caused by the installation
or removal.

 

		10.2.13	take reasonable precautions to secure the premises and their contents from theft, keep all doors
and windows locked when the premises are not in use and comply with the landlord's directions for the use and return of keys or
key cards.

 

		10.2.14	permit the landlord or its agent access to the premises at reasonable times by appointment to show
the premises –

		a)	to valuers and to the landlord's consultants,

		b)	to prospective purchases at any time during the terms, and

		c)	to prospective tenants within 3 months before the end of the term (unless the tenant has exercised an option to renew this
lease)

and to affix "for sale" or "to let"
signs in a way that does not unduly interfere with the permitted use.

 

		10.2.15	maintain any grounds and gardens of the premises in good condition, tidy, free from weeds and well-watered.

 

		10.2.16	maintain and keep in good repair any heating, cooling or air conditioning equipment exclusively
serving the premises.

 

    	 	 	 Page 4 of 8

     

    

 

		10.3	The tenant is not obliged -

 

		10.3.1	to repair damage against which the landlord must insure unless the landlord loses the benefit of the insurance because of acts
or omissions by the tenant or the tenants agent's.

 

		10.3.2	to carry our structural or capital repairs or alterations or make payments of a capital nature unless the need for them results
from -

 

		a)	negligence by the tenant or the tenant's agents,

		b)	failure by the tenant to perform its obligation under this lease,

		c)	then tenant's use of the premises, other than reasonable use for the permitted use, or

		d)	the nature, location or use the tenant's installation, in which case the repairs, alterations or
payments are the responsibility of the tenant.

 

		11.	Risks which the insurance policies must cover:

 

Fire

Flood

Lightning

Storm and Tempest

Explosion

Riot and civil commotion

Strikes

Malicious damage

Earthquake

Impact by vehicles

Impact by Aircraft and articles dropped from them

Internal flood water

and such other risks as the Landlord reasonable requires
from time-to-time.

 

		12.	Amount of Public Risk.
                                         Ten million dollars ($10,000,000) or any other amount reasonable specified from time-to-time
                                         fixed by the Landlord.

 

		13.	Interest rate on overdue money. An amount which is 2% per annum more that the rate from
time-to-time fixed by the Penalty Interest Rates Act 1983 (VIC).

 

		14.	Building Outgoings which
                                         the tenant must pay or reimburse: Included in annual rental.

 

		15.	Cost to Operate Services. Included in annual rental.

 

		16.	Makegood. The Tenant will be obliged to Makegood and will leave the premises in a good and
tenantable condition subject to fair wear and tear. Any damaged caused, if fittings are removed will be made good.

 

		17.	Landlord's Obligations.

		17.1	The landlord must give the tenant quiet possession for the premises without any interruption by
the landlord or any connected with the landlord as long as the tenant does what it must under the lease.

 

    	 	 	 Page 5 of 8

     

    

 

		17.2	The landlord must take out at the start of the term and keep current policies of insurance for
the risks against -

		17.2.1	damage to and destruction of the building, for its replacement value,

		17.2.2	removal of debris,

		17.2.3	breakdown of landlord's installation, and

		17.2.4	breakage of glass, for its replacement value.

 

		17.3	The landlord must give the tenant the written consent to this lease of each mortgagee whose interest
would otherwise have priority over this lease by endorsement on this lease in the terms set out following the "execution and
attestation" section.

 

		17.4	The landlord must keep the structure (including the external faces and roof) to the building and
landlord's installation in a condition consistent with their condition at the start of the lease, but is not responsible for repairs
which are the responsibility of the tenant.

 

		18.	Legal Costs. Each Party to bear its own legal costs.

 

		19.	Governing Law and Arbitration. This agreement in performance hereunder shall in all respects
be governed by the laws of Victoria. Any controversy or claim arising out of or relating to this agreement or a breach hereof,
shall be settled by arbitration in Melbourne, Victoria, in accordance with the rules of the Australian Arbitration Association
or like organisation, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

		20.	Notices. Unless otherwise specified in this agreement, all notices required or permitted
to be given under it shall be in writing and sent by Australia Post certified mail to the principal office of the other party indicated
in this agreement or at such other address as the parties may designate in writing.

 

		21.	Amendment. This Agreement may be modified or amended, if the amendment is made in writing
and is signed by both parties.

 

		22.	Severability. If any provision of this Agreement shall be held to be invalid or unenforceable
for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this
Agreement is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision
shall be deemed to be written, construed, and enforced as so limited.

 

		23.	Waiver Of Contractual Right. The failure of either party to enforce any provision of this
Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance
with every provision of this Agreement.

 

		24.	No Representation. Neither party has made any representations nor promises, other than those
contained in this agreement or in some further writing signed by the party making the representation or promise.

 

    	 	 	 Page 6 of 8

     

    

 

		25.	Interpretation. This Agreement will in all events be construed as a whole, according to
its fair meaning, and not strictly for or against a party merely because that party (or the party's legal counsel) drafted the
Agreement. The headings, captions, and titles in this legal Agreement are merely for reference and do not define, limit, extend,
or describe the scope of this Agreement or any provision herein. Unless the context requires otherwise, (a) the gender (or lack
of gender) of all words used in this Agreement includes the masculine, feminine, and neuter, and (b) the word including means including
without limitation.

 

		26.	Advice Of Legal Counsel. Each individual party to this Agreement represents and warrants
to each other party that such party has read and fully understands the terms and provisions hereof, has had an opportunity to review
this Agreement with legal counsel, and has executed this Agreement based upon such party's own judgment and advice of independent
legal counsel.

 

		27.	Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or
unenforceable under any present or future law, then that provision will be fully severable. This Agreement will be construed and
enforced as if the illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable
provision or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid, or unenforceable provision,
there will be added automatically, as a part of this Agreement, a provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

 

		28.	Further Assurances. In connection with this Agreement and the transactions contemplated
hereby, each party to this Agreement will execute and deliver any additional documents and perform any additional acts that may
be necessary or appropriate to effectuate and perform its obligations under this Agreement and the transactions contemplated hereby.

 

		29.	Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.

 

		30.	Entire Agreement. This agreement supersedes and cancels any and all prior agreements between
the parties, express or implied. This instrument sets forth the entire agreement between the parties; it may not be changed, altered
or amended except in writing signed by both parties to it.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

    	 	 	 Page 7 of 8

     

    

 

IN WITNESS WHEREOF, the parties
have executed this agreement on this the 9th Day of June, 2016.

 

LANDLORD

 

WATTLE LABORATORIES PTY LTD ATF THE ADVANCED CULTURE SYSTEMS
UNIT TRUST (ABN 12 234 517 721)

 

Duly executed by:

 

	/s/ Peter Anastasiou	 	/s/ Stephen Anastasiou
	Name:     	Peter Anastasiou	 	Name:   	Stephen Anastasiou
	Tile:	Director	 	Title:	Director
	Address:	7 Rookwood Street,	 	Address:	18 County Terrace
	 	Balwyn North VIC 3104.	 	 	Templestowe, VIC 3106

 

- - - / - - -

 

TENANT

 

IMMURON LIMITED (80 063 114 045)

 

Duly executed by:

 

	/s/ Roger Aston	 	/s/ Daniel Pollock
	Name:     	Roger Aston	 	Name:    	Daniel Pollock
	Tile:	Non-Executive Chairman	 	Title:	Non-Executive Director

 

    	 	 	 Page 8 of 8

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