Document:

Exhibit
10.6

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”), effective as of January 1 , 2021 (the “Effective Date”),
is made by and between Rex Merchant (the “Executive”) and Anebulo Pharmaceuticals, Inc., a Delaware corporation (together
with any of its subsidiaries and affiliates as may employ the Executive from time to time, and any successor(s) thereto, the “Company”).

 

RECITALS

 

A.
The Company and the Executive desire to enter into this Employment Agreement in the form hereof.

 

B.
The Company desires to assure itself of the services of the Executive by engaging the Executive to perform services under the terms hereof.

 

C.
The Executive desires to provide services to the Company on the terms herein provided.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below the parties hereto agree
as follows:

 

1.
Certain Definitions

 

(a)
“AAA” shall have the meaning set forth in Section 19.

 

(b)
“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled
by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the
Securities Act of 1933, as amended from time to time.

 

(c)
“Agreement” shall have the meaning set forth in the preamble hereto.

 

(d)
“Base Compensation” shall have the meaning set forth in Section 3(a).

 

(e)
“Board” shall mean the Board of Directors of the Company or any successor governing body.

 

(f)
The Company shall have “Cause” to terminate the Executive’s employment hereunder upon: (i) the Executive’s
willful failure to substantially perform the duties set forth herein (other than any such failure resulting from the Executive’s
Disability); (ii) the Executive’s willful failure to carry out, or comply with, in any material respect any lawful directive of
the Board; (iii) the Executive’s commission at any time of any act or omission that results in, or may reasonably be expected to
result in, a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony
or crime involving moral turpitude; (iv) the Executive’s unlawful use (including being under the influence) or possession of illegal
drugs on the Company’s premises or while performing the Executive’s duties and responsibilities hereunder; (v) the Executive’s
commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, conversion of assets of the Company
or breach of fiduciary duty against the Company (or any predecessor thereto or successor thereof); or (vi) the Executive’s material
breach of this Agreement or other agreements with the Company (including, without limitation, any breach of the restrictive covenants
of any such agreement); and which, in the case of clauses (i), (ii) and (vi), continues beyond thirty (30) days after the Company has
provided the Executive written notice of such failure or breach (to the extent that, in the reasonable judgment of the Board, such failure
or breach can be cured by the Executive), so long as such notice is provided within ninety (90) days after the Company knew or should
have known of such condition.

 

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(g)
“Change in Control” shall mean: (i) a Reorganization Event as that term is defined in the Company’s 2020 Stock
Incentive Plan

 

(h)
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(i)
“Company” shall, except as otherwise provided in Section 7(j), have the meaning set forth in the preamble hereto.

 

(j)
“Compensation Committee” shall mean the Compensation Committee of the Board, or if no such committee exists, the Board.

 

(k)
“Date of Termination” shall mean (i) if the Executive’s employment is terminated due to the Executive’s
death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated due to the Executive’s Disability,
the date determined pursuant to Section 4(a)(ii); (iii) if the Executive’s employment is terminated pursuant to Section 4(a)(iii)-(vi)
either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 4(b), whichever is earlier.

 

(l)
“Disability” shall mean the Executive’s inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for
a continuous period of not less than twelve (12) months as determined by a physician jointly selected by the Company and the Executive.

 

(m)
“Effective Date” shall have the meaning set forth in the preamble hereto.

 

(n)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(o)
“Excise Tax” shall have the meaning set forth in Section 6(b).

 

(p)
“Executive” shall have the meaning set forth in the preamble hereto.

 

(q)
“First Payment Date” shall have the meaning set forth in Section 5(b)(ii).

 

(r)
“Key Holder” shall have the meaning set forth in Schedule B of the Right of First Refusal and Co-Sale Agreement of
June 18, 2020.

 

(s)
The Executive shall have “Good Reason” to terminate the Executive’s employment hereunder within two (2) years
after the occurrence of one or more of the following conditions without the Executive’s written consent: (i) a material diminution
in the Executive’s authority, duties, or responsibilities, as described herein; (ii) a material diminution in the Executive’s
Annual Base Compensation,; (iii) a material change in the geographic location at which the Executive must perform the Executive’s
services hereunder that requires the Executive to relocate his residence to a location outside of the United States; or (iv) any other
action or inaction that constitutes a material breach of this Agreement by the Company; and which, in the case of any of the foregoing,
continues beyond thirty (30) days after the Executive has provided the Company written notice that the Executive believes in good faith
that such condition giving rise to such claim of Good Reason has occurred, so long as such notice is provided within ninety (90) days
after the initial existence of such condition.

 

(t)
Intentionally omitted.

 

(u)
“Installment Payments” shall have the meaning set forth in Section 5(b)(ii).

 

(v)
“Noncompete Option” shall mean the Company’s option, in its sole discretion, in the event of a termination of
employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term
by the Executive), to extend the Restricted Period through a date on or prior to the first (1st) anniversary of the Date of Termination,
upon advance written notice to the Executive not less than thirty (30) days prior to the end of the then-current Term in the case of
termination pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company), or not less than thirty (30) days following
such Notice of Non-Extension by Executive in case of termination pursuant to Section 4(a)(viii) (Non-Extension of Term by the Executive).

 

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(w)
“Notice of Termination” shall have the meaning set forth in Section 4(b).

 

(x)
“Other Stock-Based Award” shall mean an award of stock of the Company as defined in Sections 6-7 of the Company’s
2020 Stock Incentive Plan, subject to grant awards made by the Company.

 

(y)
“Original Employment Agreement” shall have the meaning set forth in the recitals hereto.

 

(z)
“Performance Targets” shall have the meaning set forth in Section 3(b).

 

(aa)
“Person” shall mean any individual, natural person, corporation (including any nonprofit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited
liability company or joint stock company), incorporated or unincorporated association, governmental authority, firm, society or other
enterprise, organization or other entity of any nature.

 

(bb)
“Proprietary Information” shall have the meaning set forth in Section 7(d).

 

(cc)
“Prorated Termination Bonus” shall have the meaning set forth in Section3(b).

 

(dd)
“Release” shall have the meaning set forth in Section 5(b)(ii).

 

(ee)
“Reorganization Event” shall have the meaning set forth in Section 8(b)(i) of the Company’s 2020 Stock Incentive
Plan.

 

(ff)
“Restricted Period” shall mean the period from the Effective Date through (i) with respect to any termination of employment,
the first (1st) anniversary of the Date of Termination.

 

(gg)
“Section 409A” shall mean Section 409A of the Code and the Department of Treasury regulations and other interpretive
guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective
Date.

 

(hh)
“Severance Payment” shall have the meaning set forth in Section 5(b)(i).

 

(ii)
“Severance Period” shall mean: (A) if the Executive’s employment shall be terminated by the Company without
Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), the period beginning
on the Date of Termination and ending on the first (1st) anniversary of the Date of Termination.

 

(jj)
“SIP” shall mean the Company’s 2020 Stock Incentive Plan adopted by the Company on or about June 18, 2020 and
any additional long-term incentive plan adopted in the future and identified by the Company, in the adopting resolution or otherwise,
as an “SIP” pursuant hereto, and all associated agreements and restrictions relating thereto.

 

(kk)
“Company Agreement” shall mean that certain Company Agreement of Anebulo Pharmaceuticals, Inc., as it may be amended,
modified or supplemented from time to time.

 

(ll)
Intentionally Omitted.

 

(mm)
“Total Payments” shall have the meaning set forth in Section 6(b).

 

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2.
Employment

 

(a)
In General. The Company shall employ the Executive and the Executive shall enter the employ of the Company in the position set
forth in Section 2(c), and upon the other terms and conditions herein provided.

 

(b)
At-Will Employment subject to Notice. Beginning on the Effective Date, subject to the Notice of Termination requirements of Section
4(b) of this Agreement, Executive shall be employed by the Company as an at-will employee and either the Executive or the Company may
terminate the employment relationship with or without Cause under the Circumstances set forth in Section 4(a) of this Agreement.

 

(c)
Position and Duties. During the Term, the Executive: (i) shall serve as Chief Financial Officer (“CFO”), with responsibilities,
duties and authority customary for such position, including directing research and development of the medical technologies of the Company;
(ii) shall report directly to the CEO; (iii) shall devote a substantial and primary, but not exclusive (estimated to be 35 hours per
week which Executive shall be responsible for reporting to the Board or its designee weekly), portion of the Executive’s working
time and efforts to the business and affairs of the Company and its subsidiaries, provided that the Executive may (1) serve on
corporate, civic, charitable, industry or professional association boards or committees, and engage in other professional business ventures,
subject to the Board’s prior written consent (which consent shall not unreasonably be withheld), (2) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (3) engage in part-time employment at hedge funds, so long as none of such
activities meaningfully interferes with the performance of the Executive’s duties and responsibilities hereunder, or involves a
conflict of interest with the Executive’s duties or responsibilities hereunder or a breach of the covenants contained in Section
7; and (iv) agrees to observe and comply with the Company’s rules and policies as adopted by the Company from time to time, which
have been made available to the Executive.

 

3.
Compensation and Related Matters

 

(a)
Annual Base Compensation. For services provided under this Agreement, Executive shall receive annual Base Compensation of USD
225,000, less applicable payroll tax withholdings and other authorized deductions, and which shall be paid in accordance with the customary
payroll practices of the Company, subject to review and adjustment by the Board in its sole discretion (the “Base Compensation”).
The Base Compensation will be increased to USD 275,000 upon the successful completion of an Initial Public Offering of the stock in
Anebulo Pharmaceuticals, Inc.

 

(b)
Benefits. The Executive is eligible to participate in any benefit plans which may be made available from time to time. Executive
shall be entitled to work from his personal offices.

 

(c)
Paid Time Off; Holidays. During the Term, the Executive shall be entitled to four (4) weeks of paid time off (“PTO”)
each full calendar year. The PTO shall be used for vacation time, personal days and sick days. Any vacation or personal time shall be
taken at the reasonable and mutual convenience of the Company and the Executive, and with prior approval of the Company, and shall be
counted as PTO. Any PTO that the Executive is entitled to in any calendar year that is not used by the end of such calendar year shall
be forfeited. Any unused accrued PTO will be paid to Executive at the time of termination from employment. Holidays shall be provided
in accordance with Company policy, as in effect from time to time.

 

(d)
Business Expenses. During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses
incurred by the Executive in the performance of the Executive’s duties to the Company in accordance with the Company’s applicable
expense reimbursement policies and procedures and Board directive.

 

4.
Termination

 

The
Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement
only under the following circumstances:

 

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(a)
Circumstances.

 

	 	(i)
    Death. The Executive’s employment hereunder shall terminate upon the Executive’s death.
	 	 
	 	(ii)
    Disability. If the Executive incurs a Disability, the Company may give the Executive written notice of its intention to terminate
    the Executive’s employment. In that event, the Executive’s employment with the Company shall terminate, effective on
    the later of the thirtieth (30th) day after receipt of such notice by the Executive or the date specified in such notice;
    provided that within the thirty (30) day period following receipt of such notice, the Executive shall not have returned to
    full-time performance of the Executive’s duties hereunder.
	 	 
	 	(iii)
    Termination for Cause. The Company may terminate the Executive’s employment for Cause.
	 	 
	 	(iv)
    Termination without Cause. The Company may terminate the Executive’s employment without Cause.
	 	 
	 	(v)
    Resignation for Good Reason. The Executive may resign from the Executive’s employment for Good Reason.
	 	 
	 	(vi)
    Resignation without Good Reason. The Executive may resign from the Executive’s employment without Good Reason.

 

(b)
Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive under this Section
4 (other than a termination pursuant to Section 4(a)(i) above) shall be communicated by a written notice to the other party hereto: (i)
indicating the specific termination provision in this Agreement relied upon, (ii) except with respect to a termination pursuant to Sections
4(a)(iv) or (vi), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated, and (iii) specifying a Date of Termination which, if submitted by the Executive (or, in
the case of a termination described in Section 4(a)(ii), by the Company), shall be at least thirty (30) days following the date of such
notice (a “Notice of Termination”); provided, however, that a Notice of Termination delivered by the Company
pursuant to Section 4(a)(ii) shall not be required to specify a Date of Termination, in which case the Date of Termination shall be determined
pursuant to Section 4(a)(ii); and provided, further, that in the event that the Executive delivers a Notice of Termination
to the Company, the Company may, in its sole discretion, accelerate the Date of Termination to any date that occurs following the date
of Company’s receipt of such Notice of Termination (even if such date is prior to the date specified in such Notice of Termination).
A Notice of Termination submitted by the Company may provide for a Date of Termination on the date the Executive receives the Notice
of Termination, or any date thereafter elected by the Company in its sole discretion. The failure by the Company or the Executive to
set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive
any right of the Company or the Executive hereunder or preclude the Company or the Executive from asserting such fact or circumstance
in enforcing the Company’s or the Executive’s rights hereunder. In connection with any termination of Executive’s employment
with the Company, Executive agrees to immediately tender written resignation of any officer or director positions to which he has been
appointed or elected, subject to the direction of the Board on timing.

 

5.
Company Obligations Upon Termination of Employment

 

(a)
In General. Upon a termination of the Executive’s employment for any reason, the Executive (or the Executive’s estate)
shall be entitled to receive: (i) any portion of the Executive’s Annual Base Compensation through the Date of Termination not theretofore
paid, (ii) any expenses owed to the Executive under Section 3(d), (iii) any accrued PTO owed to the Executive pursuant to Section 3(c),
and (iv) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements
under Section 3(b), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs
or arrangements. Except as otherwise set forth in Section 5(b) below, the payments and benefits described in this Section 5(a) shall
be the only payments and benefits payable in the event of the Executive’s termination of employment for any reason.

 

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(b)
Severance Payment

 

	 	(i)
    In the event of the Executive’s termination of employment under the circumstances described below, then, in addition to
    the payments and benefits described in Section 5(a) above, the Company shall, during the Severance Period, pay to the Executive
    an amount (the “Severance Payment”) calculated as described below:

 

	 	(A)
    If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s
    resignation for Good Reason pursuant to Section 4(a)(v), then the Severance Payment shall be an amount equal the remainder of the
    Annual Base Compensation for the year in which the Date of Termination occurs..
	 	 
	 	(B)

 

	 	(ii)
    The Severance Payment shall be in lieu of notice or any other severance benefits to which the Executive might otherwise be entitled.
    Notwithstanding anything herein to the contrary, (A) no portion of the Severance Payment shall be paid unless, on or prior to the
    thirtieth (30th) day following the Date of Termination, the Executive timely executes a general waiver and release of claims agreement
    substantially in the form attached hereto as Exhibit A (the “Release”), which Release shall not have been
    revoked by the Executive prior to the expiration of the period (if any) during which any portion of such Release is revocable under
    applicable law, and (B) as of the first date on which the Executive violates any covenant contained in Section 7, any remaining unpaid
    portion of the Severance Payment shall thereupon be forfeited. Subject to the provisions of Section 9, the Severance Payment shall
    be paid in equal installments during the Severance Period, at the same time and in the same manner as the Annual Base Compensation
    would have been paid had the Executive remained in active employment during the Severance Period, in accordance with the Company’s
    normal payroll practices in effect on the Date of Termination; provided that any installment that would otherwise have been
    paid prior to the first normal payroll payment date occurring on or after the thirtieth (30th) day following the Date of Termination
    (such payroll date, the “First Payment Date”) shall instead be paid on the First Payment Date. For purposes of
    Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department of Treasury Regulations),
    the Executive’s right to receive the Severance Payment in the form of installment payments (the “Installment Payments”)
    shall be treated as a right to receive a series of separate payments and, accordingly, each Installment Payment shall at all times
    be considered a separate and distinct payment.

 

(c)
The provisions of this Section 5 shall supersede in their entirety any severance payment provisions in any severance plan, policy, program
or other arrangement maintained by the Company.

 

6.
Change in Control

 

(a)
Golden Parachute Excise Tax Protection. Notwithstanding any provision of this Agreement, if any portion of the payments or benefits
provided to the Executive hereunder, or under any other agreement with the Executive or any plan, policy or arrangement of the Company
or any of its Affiliates (in the aggregate, “Total Payments”), would constitute an “excess parachute payment”
and would, but for this Section 6(b), result in the imposition on the Executive of an excise tax under Section 4999 of the Code (the
“Excise Tax”), then the Total Payments to be made to the Executive shall either be (i) delivered in full, or (ii)
reduced by such amount such that no portion of the Total Payments would be subject to the Excise Tax, whichever of the foregoing results
in the receipt by the Executive of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and
local income taxes and the Excise Tax). The determination of whether a reduction in Total Payments is necessary and the amount of any
such reduction shall be made by the Company in its reasonable discretion and in reliance on its tax advisors. If the Company so determines
that a reduction in Total Payments is required, such reduction shall apply first pro rata to (A) cash payments subject to Section 409A
of the Code as “deferred compensation” and (B) cash payments not subject to Section 409A of the Code (in each case with the
cash payments otherwise scheduled to be paid latest in time reduced first), and then pro rata to (C) equity-based compensation subject
to Section 409A of the Code as “deferred compensation” and (D) equity-based compensation not subject to Section 409A of the
Code.

 

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7.
Restrictive Covenants

 

(a)
In Executive’s role as CFO, the Company will provide, and has provided, Executive with access to the Proprietary Information (as
defined below at 7(d)) and other confidential information of the Company. As the CFO, Executive will also benefit from the business goodwill
of the Company that Company has spent considerable time, effort and expense to develop. In consideration for the Company’s agreement
to provide Executive with its Proprietary Information and other confidential information and in consideration of Executive benefitting
from the Company’s business goodwill, Executive agrees as follows: The Executive shall not, at any time during the Restricted Period,
directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business
or entity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages
in (either directly or through any subsidiary or Affiliate thereof) any business or activity (i) relating to pharmaceutical research
and the development of therapeutic antidotes for treatment of drugs of abuse, which competes with the business of the Company or any
entity owned by the Company, or (ii) which the Company or any of its Affiliates has taken active steps to engage in or acquire, but only
if the Executive directly or indirectly engages in, has any equity interest in, or manages or operates, such business or activity (whether
as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise). Notwithstanding the foregoing,
the Executive shall be permitted to acquire a passive stock or equity interest in such a business; provided that such stock or
other equity interest acquired is not more than five percent (5%) of the outstanding interest in such business.

 

(b)
In Executive’s role as CFO, the Company will provide, and has provided, Executive with access to the Proprietary Information and
other confidential information of the Company. As the CFO, Executive will also benefit from the business goodwill of the Company that
Company has spent considerable time, effort and expense to develop. In consideration for the Company’s agreement to provide Executive
with its Proprietary Information and other confidential information and in consideration of Executive benefitting from the Company’s
business goodwill, Executive agrees as follows: The Executive shall not, at any time during Executive’s employment or during the
twelve (12)-month period immediately following the Date of Termination, directly or indirectly, either for himself or on behalf of any
other entity, (i) recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the Company to terminate its
employment or arrangement with the Company, or otherwise change its relationship with the Company, or (ii) hire, or cause to be hired,
any person who was employed by the Company at any time during the twelve (12)-month period immediately prior to the Date of Termination.

 

(c)
The provisions contained in Sections 7(a) and (b) may be altered and/or waived to be made less restrictive on the Executive with the
prior written consent of the Board or the Compensation Committee.

 

(d)
Except as the Executive reasonably and in good faith determines to be required in the faithful performance of the Executive’s duties
hereunder or in accordance with Section 7(f), the Executive shall, during Executive’s employment and after the Date of Termination,
maintain in confidence and shall not directly or indirectly, use, disseminate, disclose or publish, or use for the Executive’s
benefit or the benefit of any person, firm, corporation or other entity, any confidential or proprietary information or trade secrets
of or relating to the Company, including, without limitation, information with respect to the Company’s operations, processes,
protocols, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing
methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment (“Proprietary
Information”), or deliver to any person, firm, corporation or other entity, any document, record, notebook, computer program
or similar repository of or containing any such Proprietary Information. The Executive’s obligation to maintain and not use, disseminate,
disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any Proprietary
Information after the Date of Termination will continue so long as such Proprietary Information is not, or has not by legitimate means
become, generally known and in the public domain (other than by means of the Executive’s direct or indirect disclosure of such
Proprietary Information) and continues to be maintained as Proprietary Information by the Company. The parties hereby stipulate and agree
that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the
businesses of the Company (and any successor or assignee of the Company).

 

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	 	(i)
    Defend Trade Secrets Act Notice. An individual shall not be held criminally or civilly liable under any Federal or
    State trade secret law for the disclosure of a trade secret that— (A) is made— (i) in confidence to a Federal, State,
    or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating
    a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing
    is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation
    of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding,
    if the individual—(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret,
    except pursuant to court order.

 

(e)
Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company
all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other
documents concerning the Company’s customers, business plans, marketing strategies, products or processes.

 

(f)
The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company (if lawfully permitted to
do so) the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company
and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such
process. Upon notification from Executive of such subpoena or other legal process, but only to the extent that such notification is provided
during the Restricted Period, the Company shall, at its reasonable expense, retain mutually acceptable legal counsel to represent Executive
in connection with Executive’s response to any such subpoena or other legal process. The Executive may also disclose Proprietary
Information if: (i) in the reasonable written opinion of counsel for the Executive furnished to the Company, such information is required
to be disclosed for the Executive not to be in violation of any applicable law or regulation or (ii) the Executive is required to disclose
such information in connection with the enforcement of any rights under this Agreement or any other agreements between the Executive
and the Company.

 

(g)
The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives,
equity holders or Affiliates, either orally or in writing, at any time; provided that the Executive may confer in confidence with
the Executive’s legal representatives, make truthful statements to any government agency in sworn testimony, or make truthful statements
as otherwise required by law. The Company agrees that, upon the termination of the Executive’s employment hereunder, it shall advise
its directors and executive officers not to disparage the Executive, either orally or in writing, at any time; provided that they
may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law.

 

(h)
Prior to accepting other employment or any other service relationship during the Restricted Period, the Executive shall provide a copy
of this Section 7 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any
employer or person with which the Executive discusses potential employment or any other service relationship.

 

(i)
In the event the terms of this Section 7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of
its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other
respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical
area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined
by such court in such action.

 

(j)
As used in this Section 7, the term “Company” shall include the Company, its parent, related entities, and any of its direct
or indirect subsidiaries.

 

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(k)
Executive acknowledges that Company’s Proprietary Information and other confidential information and Company’s ability to
reserve it for the exclusive knowledge and use of Company is of great competitive importance and commercial value to Company, and that
improper use or disclosure of the Proprietary Information or other confidential information by Employee will cause irreparable harm to
Company, for which remedies at law will not be adequate. In the event of a breach or threatened breach by Executive of any of the provisions
of this Agreement, Executive hereby consents and agrees that Company shall be entitled to seek, in addition to other available remedies,
a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction,
without the necessity of showing any actual damages or that monetary damages would not afford an adequate remedy, and without the necessity
of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary
damages or other available forms of relief. Executive further acknowledges that each member of Company is an intended third-party beneficiary
of this Agreement.

 

(l)
Proprietary Rights.

 

	 	(i)
    Work Product. Executive acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries,
    ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived
    or reduced to practice by Executive individually or jointly with others during the period of Executive’s employment by Company
    and relating in any way to the business or contemplated business, research or development of Company (regardless of when or where
    the Work Product is prepared or whose equipment or other resources is used in preparing the same) and all printed , physical and
    electronic copies, all improvements, rights and claims related to the foregoing, and other tangible embodiments thereof (collectively,
    “Work Product”), as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill),
    patents and other intellectual property rights therein arising in any jurisdiction throughout the world and all related rights of
    priority under international conventions with respect thereto, including all pending and future applications and registrations therefor,
    and continuations, divisions, continuations-in-part, reissues, extensions and renewals thereof (collectively, “Intellectual
    Property Rights”), shall be the sole and exclusive property of Company.
	 	 
	 	(ii)
    For purposes of this Agreement, Work Product includes, but is not limited to, Company information, including plans, publications,
    research, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, work in process,
    databases, manuals, results, developments, reports, drawings, market studies, formulae, communications, algorithms, product plans,
    product designs, models, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries,
    experimental processes, experimental results, specifications, customer information, customer lists, manufacturing information, marketing
    information, advertising information, and sales information.
	 	 
	 	(iii)
    Work Made for Hire; Assignment. Executive acknowledges that, by reason of being employed by Company at the relevant times,
    to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work ‘made for
    hire” as defined in the Copyright Act of 1976 (17 U.S.C. § 101), and such copyrights are therefore owned by Company. To
    the extent that the foregoing does not apply, Executive hereby irrevocably assigns to Company, for no additional consideration, Executive’s
    entire right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue,
    counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding
    thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit Company’s rights, title
    or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that Company would have had
    in the absence of this Agreement.

 

    	9

    	 

    

 

	 	(iv)
    Further Assurances; Power of Attorney. During and after Executive’s employment, Executive agrees to reasonably cooperate
    with Company to (i) apply for, obtain, perfect and transfer to Company the Work Product and Intellectual Property Rights in the Work
    Product in any jurisdiction in the world; and (ii) maintain, protect and enforce the same, including, without limitation, executing
    and delivering to Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents and
    instruments as shall be requested by Company. Executive hereby irrevocably grants Company power of attorney to execute and deliver
    any such documents on Executive’s behalf in Executive’s name and to do all other lawfully permitted acts to transfer
    the Work Product to Company and further the transfer, issuance, prosecution and maintenance of all Intellectual Property Rights therein,
    to the full extent permitted by law, if Executive does not promptly cooperate with Company’s request (without limiting the
    rights Company shall have in such circumstances by operation of law). The power of attorney is coupled with an interest and shall
    not be affected by Executive’s subsequent incapacity.
	 	 
	 	(v)
    Moral Rights. To the extent any copyrights are assigned under this Agreement, Executive hereby irrevocably waives, to the
    extent permitted by applicable law, any and all claims Executive may now or hereafter have in any jurisdiction to all rights of paternity,
    integrity, disclosure and withdrawal and any other rights that may be known as “moral rights” with respect to all Work
    Product and all Intellectual Property Rights therein.
	 	 
	 	(vi)
    No License. Executive agrees that this Agreement does not, and shall not be construed to grant Executive any license or right
    of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software,
    tools or other property, real, personal or intellectual, made available to Executive by Company.

 

(m)
Executive hereby consents to any and all uses and displays, by Company and its agents, of Executive’s name, voice, likeness, image,
appearance and biographical information in, on or in connection with any pictures, photographs, audio and video recordings, digital images,
websites, other advertising, sales and marketing brochures, books, magazines, other publications, COs, DVDs, tapes and all other printed
and electronic forms and media throughout the world , at any time during the period of Executive’s employment by Company, for all
legitimate business purposes of Company (“Permitted Uses”). Executive hereby forever releases Company and its directors,
officers, employees and agents from any and all claims, actions, damages, losses, costs, expenses and liability of any kind, arising
under any legal or equitable theory whatsoever at any time during or after the period of Executive’s employment by Company, m connection
with any Permitted Use.

 

8.
Injunctive Relief

 

The
Executive recognizes and acknowledges that a breach of the covenants contained in Section 7 will cause irreparable damage to the Company
and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach
will be inadequate. Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Section 7, in
addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive
relief.

 

9.
Section 409A

 

(a)
General. The parties hereto acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance
with, and incorporate the terms and conditions required by, Section 409A. Notwithstanding any provision of this Agreement to the contrary,
in the event that the Company determines that any amounts payable hereunder will be immediately taxable to the Executive under Section
409A, the Company reserves the right to (without any obligation to do so or to indemnify the Executive for failure to do so) (i) adopt
such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive
effect) that it determines to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Agreement,
to preserve the economic benefits of this Agreement and to avoid less favorable accounting or tax consequences for the Company and/or
(ii) take such other actions it determines to be necessary or appropriate to exempt the amounts payable hereunder from Section 409A or
to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder. Notwithstanding anything
herein to the contrary, no provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply
with the requirements of Section 409A from the Executive or any other individual to the Company or any of its Affiliates, employees or
agents.

 

    	10

    	 

    

 

(b)
Separation from Service under Section 409A; Section 409A Compliance. Notwithstanding anything herein to the contrary: (i) no termination
or other similar payments and benefits hereunder shall be payable unless the Executive’s termination of employment constitutes
a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations; (ii) if
the Executive is deemed at the time of the Executive’s separation from service to be a “specified employee” for purposes
of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of any termination or other similar payments
and benefits to which the Executive may be entitled hereunder (after taking into account all exclusions applicable to such payments or
benefits under Section 409A) is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such
portion of such payments and benefits shall not be provided to the Executive prior to the earlier of (x) the expiration of the six (6)-month
period measured from the date of the Executive’s “separation from service” with the Company (as such term is defined
in the Department of Treasury Regulations issued under Section 409A) or (y) the date of the Executive’s death; provided
that upon the earlier of such dates, all payments and benefits deferred pursuant to this Section 9(b)(ii) shall be paid in a lump sum
to the Executive, and any remaining payments and benefits due hereunder shall be provided as otherwise specified herein; (iii) the determination
of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of
the Executive’s separation from service shall be made by the Company in accordance with the terms of Section 409A (including, without
limitation, Section 1.409A-1(i) of the Department of Treasury Regulations and any successor provision thereto); (iv) to the extent that
any Installment Payments under this Agreement are deemed to constitute “nonqualified deferred compensation” within the meaning
of Section 409A, for purposes of Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department
of Treasury Regulations), each such payment that the Executive may be eligible to receive under this Agreement shall be treated as a
separate and distinct payment; (v) to the extent that any reimbursements or corresponding in-kind benefits provided to the Executive
under this Agreement are deemed to constitute “deferred compensation” under Section 409A, such reimbursements or benefits
shall be provided reasonably promptly, but in no event later than December 31 of the year following the year in which the expense was
incurred, and in any event in accordance with Section 1.409A-3(i)(1)(iv) of the Department of Treasury Regulations; and (vi) the amount
of any such payments or expense reimbursements in one calendar year shall not affect the expenses or in- kind benefits eligible for payment
or reimbursement in any other calendar year, other than an arrangement providing for the reimbursement of medical expenses referred to
in Section 105(b) of the Code, and the Executive’s right to such payments or reimbursement of any such expenses shall not be subject
to liquidation or exchange for any other benefit.

 

10.
Assignment and Successors

 

The
Company may assign its rights and obligations under this Agreement to any entity, including any successor to all or substantially all
the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement and its rights hereunder as security for
indebtedness of the Company and its Affiliates. The Executive may not assign the Executive’s rights or obligations under this Agreement
to any individual or entity. This Agreement shall be binding upon and inure to the benefit of the Company, the Executive and their respective
successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as
applicable.

 

11.
Governing Law

 

This
Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Texas, without
reference to the principles of conflicts of law of Texas or any other jurisdiction, and where applicable, the laws of the United States.
Venue of any action arising hereunder shall lie exclusively in Travis County, Texas.

 

    	11

    	 

    

 

12.
Validity

 

The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect.

 

13.
Notices

 

Any
notice, request, claim, demand, document and other communication hereunder to any party hereto shall be effective upon receipt (or refusal
of receipt) and shall be in writing and delivered personally or sent by telex, telecopy, or certified or registered mail, postage prepaid,
to the following address (or at any other address as any party hereto shall have specified by notice in writing to the other party hereto):

 

	 	(a)	If
    to the Company:
	 	 	 
	 	 	Anebulo
    Pharmaceuticals, Inc.
	 	 	Attn:
    Joseph F. Lawler, M.D., Ph.D.
	 	 	Email:
    Joe@jflcapitalmanagement.com
	 	 	 
	 	 	with
    copies to:
	 	 	 
	 	 	Daniel
    Schneeberger, CEO
	 	 	daniel@anebulo.com
	 	 	_____________________
	 	 	_____________________
	 	 	 
	 	(b)	If
    to the Executive, at the address set forth on the signature page hereto.

 

14.
Counterparts

 

This
Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute
one and the same Agreement.

 

15.
Entire Agreement

 

This
Agreement (together with any other agreements and instruments contemplated hereby or referred to herein) is intended by the parties hereto
to be the final expression of their agreement with respect to the employment of the Executive by the Company and may not be contradicted
by evidence of any prior or contemporaneous agreement (including, without limitation, any term sheet or offer letter). The parties hereto
further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence
whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement. This Agreement
expressly supersedes the Original Employment Agreement.

 

16.
Amendments; Waivers

 

This
Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized
officer of the Company and approved by the Board, which expressly identifies the amended provision of this Agreement. By an instrument
in writing similarly executed and approved by the Board, the Executive or a duly authorized officer of the Company may waive compliance
by the other party or parties hereto with any provision of this Agreement that such other party was or is obligated to comply with or
perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
failure to comply or perform. No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude
any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.

 

    	12

    	 

    

 

17.
No Inconsistent Actions

 

The
parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or
essential intent of this Agreement. Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner with respect
to the interpretation and application of the provisions of this Agreement.

 

18.
Construction

 

This
Agreement shall be deemed drafted equally by both of the parties hereto. Its language shall be construed as a whole and according to
its fair meaning. Any presumption or principle that the language is to be construed against any party hereto shall not apply. The headings
in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs,
subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also,
unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b)
“and” and “or” are each used both conjunctively and disjunctively; (c) “any,” “all,”
“each,” or “every” means “any and all,” and “each and every”; (d) “includes”
and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder”
and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph,
section or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular
or plural as the identity of the entities or persons referred to may require.

 

19.
Arbitration

 

Any
dispute or controversy based on, arising under or relating to this Agreement shall be settled exclusively by final and binding arbitration,
conducted before a single neutral arbitrator in Austin, Texas in accordance with the Employment Arbitration Rules and Mediation Procedures
of the American Arbitration Association (the “AAA”) then in effect. Arbitration may be compelled, and judgment may
be entered on the arbitration award in any court having jurisdiction; provided, however, that the Company shall be entitled to
seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions
of Section 7, and the Executive hereby consents that such restraining order or injunction may be granted without requiring the Company
to post a bond. Only individuals who are (a) lawyers engaged full-time in the practice of law and (b) on the AAA roster of arbitrators
shall be selected as an arbitrator. Within twenty (20) days of the conclusion of the arbitration hearing, the arbitrator shall prepare
written findings of fact and conclusions of law. The arbitrator shall be entitled to award any relief available in a court of law. Each
party shall bear its own costs and attorneys’ fees in connection with an arbitration; provided that the Company shall bear
the cost of the arbitrator and the AAA’s administrative fees.

 

20.
Enforcement

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term
of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid
or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain
in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as 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.

 

21.
Withholding

 

The
Company shall be entitled to withhold from any amounts payable under this Agreement, any federal, state, local or foreign withholding
or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if
any questions as to the amount or requirement of withholding shall arise.

 

    	13

    	 

    

 

22.
Absence of Conflicts; Executive Acknowledgement

 

The
Executive hereby represents that from and after the Effective Date the performance of the Executive’s duties hereunder will not
breach any other agreement to which the Executive is a party. The Executive acknowledges that the Executive has read and understands
this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company
other than those contained in writing herein, and has entered into this Agreement freely based on the Executive’s own judgment.

 

23.
Survival

 

The
expiration or termination of the Term shall not impair the rights or obligations of any party hereto which shall have accrued prior to
such expiration or termination.

 

[Signature
pages follow]

 

    	14

    	 

    

 

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

 

	 	COMPANY
	 		 
	 	 	 
	 	By:	/s/ Daniel Schneeberger
	 	Name:	Daniel
    Schneeberger
	 	Title:	Chief
    Executive Officer

 

	 	EXECUTIVE
	 	 
	 	/s/
    Rex Merchant
	 	Rex
    Merchant

 

Signature
Page to Employment Agreement

 

    	15Exhibit
10.8

 

JFL
Capital Management

1415
Ranch Road 620 South, Suite 201

Lakeway,
Texas 78734

 

August
15, 2020

 

Anebulo
Pharmaceuticals

 

	 	Re:	Premises
    at 1415 Ranch Road 620 South
	 	 	Lakeway,
    Texas 78734
	 	 	(“Leased
    Premises”)

 

Daniel:

 

We
are the tenant of the Leased Premises, leased by us from Prosperity Bank (“Lessor”), in accordance with the covenants, agreements,
terms, provisions and conditions of leases (“Leases”) for the Leased Premises.

 

This
letter confirms our sublease agreement with you concerning your sublease of a portion of the Leased Premises.

 

We
hereby sublet to you a portion of the Leased Premises, which right shall commence on the date hereof and shall terminate one day prior
to the expiration of the Lease. You shall use and occupy the portion of the Leased Premises for your general corporate and business purposes.
You shall not permit any other user or occupant without our consent. Your use of a portion of the Leased Premises pursuant to this sublease
agreement shall conform in all respects to the Lease and you shall not do nor permit any use or activity which would constitute a breach
of the Lease or permit Lessor to declare a default under the Lease.

 

We
shall have the right to permit other affiliates or subsidiaries to use and occupy portions of the Leased Premises or to enter into other
subleases with respect thereto without your consent.

 

Your
use and occupancy of the Leased Premises pursuant to this sublease agreement shall be on an “as is” basis we shall have no
obligation to perform any alterations or install any improvements to any portion of the Leased Premises.

 

You
shall advise us of any repair or restoration which may be required from time to time in any portion of the Leased Premises so that we
may notify Lessor and obtain performance of Lessor’s obligations under the Lease.

 

You
shall pay to us as rent hereunder an amount equal to a proportionate share of our annual rental and all other payments made by us as
additional rent or utility costs under the Lease equal to the proportion of the square footage of the Leased Premises that you use and
occupy under this agreement to the total square footage of the Leased Premises. These rental amounts shall be paid by you to us from
time to time as such costs are incurred by us and billed to you.

 

    	 

     

    

 

You
shall pay all insurance costs and costs arising from or related to compliance with laws or regulations applicable to your use and occupancy
of a portion of the Leased Premises as provided for herein. Any insurance coverage provided by you shall conform to the Lease and shall
cover any interests of Lessor and of the undersigned.

 

Please
countersign this letter to confirm your agreement.

 

	 	Very
    truly yours,
	 	 
	 	/s/
    Joseph F. Lawler
	 	Joseph
    F. Lawler
	 	JFL
    Capital Management

 

	AGREED
    TO:	 
	 	 	 
	Anebulo
    Pharmaceuticals	 
	 	 	 
	By:	/s/ Daniel Schneeberger	 
	Name:	Daniel Schneeberger	 
	Title:	CEO	 

 

	Monthly sub-lease	 	 	 	 	 	 	 	 	 
	Anebulo	 	Sq Ft	 	 	Rate	 	 	Cost	 
	Office 1	 	 	169	 	 	$	2.670	 	 	$	451.23	 
	Common space @ 50%	 	 	563	 	 	$	1.335	 	 	$	751.61	 
	Monthly insurance	 	 	450.5	 	 	$	0.03	 	 	$	14.63	 
	Total	 	 	 	 	 	 	 	 	 	$	1,202.84	 

 

    	 

     

    

 

 

August
1, 2022

 

Joseph
Lawler

JFL
Capital Management LLC

 

Re:
Amendment 1 to Sublease Agreement dated August 15, 2020

 

Dear
Joe,

 

This
is Amendment 1 to the office sublease agreement dated August 15, 2020 between Anebulo Pharmaceuticals, Inc. (“Anebulo’) and
JFL Capital Management LLC (“JFL’).

 

The
monthly rent payable is hereby increased to $1,262.98, effective August 1, 2022.

 

All
other lease terms remain unaffected by this amendment.

 

Sincerely,

 

	/s/
    Simon Allen	 
	Simon
    Allen, CEO	 
	Anebulo
    Pharmaceuticals, Inc.	 
	 	 
	Agreed
    and accepted:	 
	 	 
	/s/
    Joseph Lawler	 
	Joseph
    Lawler, Managing member	 
	JFL
    Capital Management LLC

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