Document:

Exhibit 4.1

 

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

 

Dear Joel,

 

Change in employment arrangements

 

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

 

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

 

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

 

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

 

    1

     

    

 

Table of Contents

Incannex Healthcare Limited - Employment
Contract

01 July 2020

 

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

 

    2

     

    

 

Incannex
Healthcare Limited (IHL)

Employment
Contract for Senior Staff – Joel Latham

1
July 2020

 

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

     

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

     

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

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

     

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

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

    

    

    

    

    

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

                                                                                                 

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

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

     

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

 

    3

     

    

 

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

    

    

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

    

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

     

    Disclose
    or use in the proper course of your duties;

     

    Information
    which is freely available to the public;

    

    

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

    

    

    

    

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

 

    4

     

    

 

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

     

    Step
    1 – You and the Chairman

     

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

     

    Step
    2 – You and the Board

     

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

     

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

     

    Step
    3 – External mediation

     

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

     

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

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

    

    

    

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

    

    

    

    

    

    

    

    

    

    

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

 

    5

     

    

 

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

    

    

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

    

    

    

    

    

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

    

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

 

    6

     

    

 

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

     

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

    

    

    

    

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

 

    7

     

    

 

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

    

    

    

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

 

    8

     

    

 

Employment
Contract Signatures

 

This
Employment Contract is between:

 

Incannex
Healthcare Limited ACN 096 635 246 (IHL)

incorporated in the State of Victoria

 

and

 

Joel
Latham

 

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

 

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

 

	Glenn Fowles	 
	Company Secretary	Date
                                            01 July 2020

 

		2.	Signed
                                            by:

 

	Joel Latham	Date
                                                 July 2020

 

    9

     

    

 

Schedule
1 Incannex Healthcare Limited (IHL) Employment Contract

 

Joel
Latham - Remuneration

 

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

     

    Your
    Director's Fees are inclusive of SGC.

     

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

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

    

    

    

    

    

    

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

    

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

 

    10

     

    

 

TABLE
1 - Terms and conditions Equity Component - Shares

 

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

 

TABLE
2 - Terms and conditions Equity Component - Options

 

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

 

 

 

11Exhibit 4.2

 

 

 

23 July 2019

 

Mr Sudhanshu Agarwal 26 Linlithgow Road

Toorak VIC 3142

 

Email: sud@cannvalate.com.au

 

Dear Sud,

 

Impression Healthcare Limited - Appointment as Chief Medical Officer

 

This letter of appointment confirms the basis
of your appointment as Chief Medical Officer of Impression Healthcare Limited ACN 096 635 246 (Company).

 

This letter contains the terms and conditions
of your appointment and confirms the Company's policies and procedures.

 

DETAILS OF YOUR APPOINTMENT

 

		1.	Term of appointment

 

		1.1	Your appointment as a Chief Medical Officer will commence on the 23rd July 2019 and continue for a minimum of 12 months in duration
(initial Period). If at any time you wish to interpose a corporate entity, you may nominate a corporate entity which employs you
as principal consultant.

 

		1.2	At any time during your tenure your performance as Chief Medical Officer may be reviewed in accordance with the processes agreed by
the Board from time to time. A recommendation as to your re-appointment may be made in notices of meeting or other material provided to
shareholders. You agree to participate in such reviews.

 

		1.3	You may resign at any time on 90 days' notice.

 

		1.4	Either party may terminate this agreement immediately if the other commits a material breach of this agreement, which is not cured
for 14 days after notice is provided from the non-defaulting party.

 

		1.5	Either party may terminate immediately if the other party becomes insolvent.

 

		1.6	On termination, resignation, retirement or removal from office as Chief Medical Officer in accordance with this agreement, you shall
not be entitled to any damages for, or make any claim against the Company or its officers in relation to, loss of office and, unless expressly
agreed by the Board to the contrary, no fee will be payable to you in respect of your retirement or any unexpired portion of the term
of your appointment.

 

		1.7	This letter refers only to your appointment as Chief Medical Officer.

 

		2.	Time commitment

 

		3.	Your anticipated time commitment is approximately 40 hours per month.

 

     

     

    

 

		4.	You will be expected to perform the milestone activities as set out in Schedule 1 to this letter
and as amended from time to time (and are accepted by you) and any other duties reasonably contemplated by your office.

 

		4.1	As you will appreciate, your time commitment will be affected by the issues confronting the Company from time to time. You are expected
to meet any extra time commitments from time to time within reason as required.

 

		4.2	By accepting your appointment, you will be taken to have confirmed that you will be able to devote sufficient time to appropriately
perform your duties and responsibilities as Chief Medical Officer of the Company. You should seek the Board's consent before you take
on any added or other commitments that are likely to affect your anticipated ability to devote the required time to the performance of
your duties and obligations as Chief Medical Officer of the Company.

 

		5.	Remuneration

 

		5.1	Your Annual Chief Medical Officer's Fee is $90,000 per annum ($7,500 per month). You agree to invoice the Company on a monthly basis
for the Annual Chief Medical Officer's Fee.

 

		5.2	In addition to the Annual Chief Medical Officer's Fee, you are also entitled to:

 

		5.2.1	Performance rights over shares in the Company conditional on the achievement of certain milestone activities (Milestone Performance
Rights) as set out in Schedule 1 to this letter;

 

		5.2.2	Performance rights over shares in the company conditional on the performance of the Company (Value Based Performance Rights) as
set out in Schedule 2; and

 

		5.2.3	200,000,000 options to acquire new fully paid shares of the Company on the terms set out in Schedule 3 (CMO Options).

 

		5.3	The issue of the shares and options to you is also conditional on the approval of the Company's shareholders. The Company will have
the Milestone Performance Rights, Value Based Performance Rights and CMO Options put to its shareholders for approval under ASX Listing
Rule 10.11 at the Company's AGM to be held no later than 30 November 2019.. Where equity securities are to be issued later than 3 months
from the date of the meeting, a waiver from ASX LR 10.3.3 will be sought.

 

		5.4	You may receive or be entitled to a retirement allowance or other equity or incentive based remuneration at the discretion of the
Board (subject, if required, to the approval of the shareholders).

 

		5.5	If there is any dispute as to your entitlement to Milestone Performance Rights, Value Based Performance Rights and CMO Options, a
suitable expert being an accounting partner from a mid-tier accounting firm (Grant Thornton, Pitcher Partners, RSM, BOO or William Buck)
is to be appointed within seven days of the formal notice of dispute being provided by you. The expert will determine the dispute including
who should pay for their costs.

 

		5.6	The amount of Milestone Performance Shares, Value Based Performance Rights or CMO Options or the nature of the benefit may be changed
by the shareholders or by the Board by mutual written agreement with you, at any time prior to being approved by shareholders at the Company's
AGM.

 

		5.7	If you are required to perform services for the Company that, in the opinion of the directors, are outside the scope of the ordinary
duties of a Chief Medical Officer, the Company may pay you for those services in addition to, or instead of, your remuneration under paragraph
5.1.

 

		5.8	Subject at all times to the policies of the Company, you will be entitled to be paid travelling, hotel and other expenses properly
incurred by you in attending and returning from any Board meetings, any committee meetings, general meetings or otherwise in connection
with the Company's business. Where required by the policies of the Company, you should obtain the approval of the Board before you incur
any expense.

 

    2 

     

    

 

		6.	Other interests

 

		6.1	You confirm that you have:

 

		6.1.1	provided to the Company all of the relevant information about you which the Company reasonably needs to know in order to make an informed
decision to appoint you to the position of Chief Medical Officer;

 

		6.1.2	provided the Company with details of your present directorships or offices with other companies or organisations, business and other
interests;

 

		6.1.3	declared any actual or potential conflicts of interest; and

 

		6.1.4	declared that these other existing commitments and/or interests will not affect your ability to perform or discharge your responsibilities
as a Chief Medical Officer of the Company.

 

		6.2	You agree that you will:

 

		6.2.1	not accept any seek any other appointments or offers of employment that may conflict with your position as Chief Medical Officer of
the Company unless and until you have informed the Board (where practicable) of your intention to accept that office and paid due regard
to any objections or issues raised by the Board in relation to that appointment; and

 

		6.2.2	fully and frankly tell the Board in a timely manner about anything that:

 

		(a)	affects you which, if known, may have an adverse impact on the Company's reputation or public profile;

 

		(b)	may lead to an actual or potential conflict of interest or duty; and

 

		(c)	may lead to a reasonable perception of an actual or potential conflict of interest or duty.

 

		6.3	You agree to tell the Company about any interest you may have in the securities of the Company or a related body corporate or interests
in any contract relating to those securities.

 

		7.	Share trading

 

The Company has in place a share trading policy detailing
when you can and cannot deal in the Company's securities and other securities. You must familiarise yourself with, and comply with

 

    3 

     

    

 

		8.	Defined terms and interpretation

 

		8.1	In Part B of this letter:

 

Annual Chief Medical Officer's Fee is given meaning
in section 5.1 of this letter.

 

Business Day means Monday to Friday inclusive, except
New Year's Day, Good Friday, Easter Monday, Christmas Day, Boxing Day and any other day that ASX declares is not a business day.

 

Corporate Action means a transaction implemented by
the Company, including a bonus issue, rights issue, reconstruction of capital (including consolidation, subdivision, reduction or return),
scheme of arrangement or dividend reinvestment plan.

 

CMO Options means the entitlement to options to acquire
shares in the Company conditional upon the performance of the company in accordance with Schedule 3 of this Letter, and conditional
upon the approval of shareholders of the Company.

 

Milestone Performance Rights means the entitlement
to shares in the Company conditional upon the achievement of milestones calculated in accordance with Schedule 1 of this letter,
and conditional upon the approval of shareholders.

 

Value Based Performance Rights means the entitlement
of shares in the Company conditional upon the performance of the Company calculated in accordance with Schedule 2 of this letter,
and conditional upon the approval of shareholders of the Company.

 

		8.2	Your appointment is governed by the laws of Victoria.

 

Please confirm your acknowledgment that you have
read and understood the contents of this letter and that you agree to act as a Chief Medical Officer of the Company on the terms set out
above by signing and returning to me the enclosed copy of this letter.

 

Yours sincerely

Impression Healthcare Limited

 

Troy Valentine

Chairman

 

YOUR ACCEPTANCE

 

I accept and agree to be bound by the terms of this letter.

 

	 	Date	 	 
	 	 	 	 
	 	 	 	 
	 	Signed	 	 
	 	 	 	 
	 	Name (print)	Sudhanshu Agarwal	 

 

    4 

     

    

 

SCHEDULE 1 – MILESTONE PERFORMANCE RIGHTS

 

	Item
    and Milestone Date	 	Milestone
    Activity	 	Approximate
    Commitment (Hrs)	 	Milestone
    Performance Rights
	
    #1 

    30 August 2019

     
	 	Rebrand Company and create four sub-brands for Four Products with clinical feel

                                                                          
	 	4	 	 
	 	Set up medical board, negotiate commercial terms with the board of the Company

                                                                          
	 	8	 	 
	 	Clinical literature appraisal for each of the research areas related to the Four Products

                                                                          
	 	9	 	 
	 	Create presentation for each of the Four Product trial areas

                                                                          
	 	16	 	 
	 	Total for August 2019 Milestone

                                                                          
	 	36	 	1,000,000 Company shares
	
    #2 

    30 September 2019

     
	 	Clinical interviews with each Four Product champion

                                                                          
	 	8	 	 
	 	Investment Roadshow

                                                                          
	 	20	 	 
	 	Medical briefing papers (clinician facing document for each trial)

                                                                          
	 	6	 	 
	 	Total for September 2019 Milestone

                                                                          
	 	34	 	1,000,000 Company shares
	
    #3 

    31 October 2019

     
	 	Commercialisation Strategy for each Four products

                                                                          
	 	25	 	 
	 	Formulation Strategy for Four products

                                                                          
	 	25	 	 
	 	Total for October 2019 Milestone

                                                                          
	 	36	 	1,000,000 Company shares
	
    #4

    30 November 2019
	 	Branding and packaging for Four Products

                                                                          
	 	12	 	 
	 	Research on defendable IP for Four Products

                                                                          
	 	40	 	 
	 	Total for November 2019 Milestone

                                                   
	 	36	 	1,000,000 Company shares
	
    #5 

    31 December 2019

     
	 	
    Medical patent lodgement

    

     
	 	40 (10 hours x Four Products)	 	 
	 	Total for August 2019 Milestone

                                                   
	 	40	 	1,000,000 Company shares
	
    #6 

    31 January 2020

     
	 	Presentation to Institutional Investors with medical sector analysts

                                                                          
	 	20	 	 
	 	Draft new presentation update on the Four Product Trials

                                                                          
	 	16	 	 
	 	Attendance at medical board dinner and catch-up

                                                                          
	 	4	 	 
	 	Total for January 2020 Milestone	 	40	 	1,000,000 Company shares

 

*Note 1: reference to Four Products means products originating from
four clinical trials being conducted by the Company and Cannvalate Pty Ltd, consisting of four separate phase 1 trials for Sleep Apnoea
, Concussion, Gum Disease and TMJ Disorder.

 

** Note 2: Milestone Activities within a Milestone Item must be satisfied
by the relevant Milestone Date in order for Milestone Performance Rights to be issued. Once the Board of the Company is satisfied that
the relevant Milestone Activity has been achieved, the Milestone Performance Rights must be issued within five (5) business days.

 

Note 3: Other terms of the Milestone Performance Rights as set out
in Schedule 4.

 

    5 

     

    

 

SCHEDULE 2 - VALUE BASED PERFORMANCE RIGHTS

 

	Performance Milestone	 	Number of Value Based Performance Rights
	A fully diluted market capitalisation of $60M*	 	1,600,000 shares
	A fully diluted market capitalisation of $125M*	 	7,263,280 shares
	A fully diluted market capitalisation of $150M*	 	9,403,048 shares
	A fully diluted market capitalisation of $200M*	 	12,037,265 shares

 

*The Performance Milestone is satisfied upon the fully diluted market
capitalisation being at or above the specified milestone value at the close for any five trading days.

 

Note 1: Fully Diluted Market Capitalisation is defined as all
fully paid ordinary and in-the-money option securities multiplied by the ASX closing price of the Company shares minus the aggregated
exercise value of option securities.

 

Note 2: Other terms of the Value Based Performance Rights as set out
in Schedule 4.

 

    6 

     

    

 

SCHEDULE 3 - CMO OPTIONS

 

Terms of CMO Options

 

		1.	The CMO Options comprise of 200,000,000 Options to acquire new fully paid ordinary shares of the Company. Each Option has an Exercise
Price of $0.20 and an Expiry Date of 30 September 2021. Each Option also has a vesting condition (refer to paragraph 2 below).

 

		2.	The CMO Options vest upon the shares of the Company having a closing price of $0.20 per share or more for any five (5) trading days,
at any time from the date of grant of the CMO Options until the Expiry Date.

 

		3.	If, prior to the exercise of CMO Options, there is a reorganisation of capital of the Company then your rights as a holder of the
CMO Options (including the number of CMO Options, the number of Company shares to which you are entitled upon the exercise of your CMO
Options, or the Exercise Price) are amended in accordance with the ASX Listing Rules or as would be required by the ASX Listing Rules
applying to a reorganisation of capital at the time of the reorganisation.

 

		4.	Any additional terms of the CMO Options will be mutually agreed in writing.

 

    7 

     

    

 

Schedule 4 -Terms of Performance Rights

 

These rights are rights to which Subdivision 83A-C of the Income Tax
Assessment Act (Cth) 1997 applies (subject to the conditions in that Act).

 

The following is a summary of the key terms and conditions of the Performance
Ri ghts:

 

		(a)	(Performance Rights): each Performance Right is a right to a fully paid ordinary share (Share) in the capital of the
Company.

 

		(b)	(General Meetings): each Performance Right does not confer upon the holder (Holder) the right to receive notices of
general meetings and financial reports and accounts of the Company that are circulated to holders of fully paid ordinary shares in the
capital of the Company (Members).

 

		(c)	(Dividend and Voting Rights): a Performance Right does not confer upon the Holder an entitlement to vote or receive dividends.

 

		(d)	(No rights to return of capital): a Performance Right does not entitle the Holder to a return of capital, whether in a winding
up, upon a reduction of capital or otherwise.

 

		(e)	(Share ranking): all Shares issued upon exercise of the Performance Rights will upon issue rank pari passu in all respects
with all other Shares.

 

		(f)	(Listing of Shares on ASX): At the time of exercise of the Performance Rights and issue of Shares, the Company will apply for
quotation of all Shares issued pursuant to the exercise of Performance Rights on ASX within the period required by ASX.

 

		(g)	(Transfer of Performance Rights) : a Performance Right is not transferable (including encumbering the Performance Ri ghts).
Unless the relevant dealing is effected by force of law on death or legal incapacity to the Holder's legal personal representative or
the Board otherwise determines, a Holder may not dispose of a Performance Right that has been granted to them. The Company may require
that a Performance Right be forfeited if a disposal occurs or is purported to occur other than in accordance with these terms.

 

		(h)	(Participation in new issues): there are no participation rights or entitlements inherent in the Performance Rights and holders
will not be entitled to participate in new issues of capital offered to Members during the currency of the Performance Rights.

 

		(i)	(Adjustment for reconstruction): if, at any time, the issued capital of the Company is reorganised (including consolidation,
subdivision, reduction or return), all rights of a holder of a Performance Right (including the exercise conditions) are to be changed
in a manner consistent with the Corporations Act 2001 (Cth) and the ASX Listing Rules at the time of the reorganisation.

 

		(j)	(Exercise of Performance Rights) : subject to paragraph (I), each Performance Right confers upon the Holder the right to be
issued one Share at a nil exercise price upon the receipt of a written notice from the relevant Holder requesting that the Performance
Right is exercised following the later of (i) any ASX imposed escrow period on the relevant Holder and (ii) achievement of the milestones
as set out in the relevant Schedule (Milestones).

 

    8 

     

    

 

		(k)	(Deferral of Exercise if resulting in a prohibited acquisition of Shares): if the exercise of a Performance Right would result
in any person being in contravention of section 606(1) of the Corporations Act 2001 (Cth) (Prohibition), the exercise of those
Performance Rights shall be deferred until such time or times when the exercise would not result in a contravention of the Prohibit ion.
In assessing whether the exercise of a Performance Right would result in any person being in contravention of the Prohibition:

 

		(i)	Holders may give written notice to the Company if they consider that the exercise of a Performance Right may result in contravention
of the Prohibition. The absence of such written notice from the Holder will entitle the Company to assume that the exercise of a Performance
Right will not result in any person being in contravention of the Prohibition.

 

		(ii)	the Company may (but is not obliged to) by written notice to a Holder request that a Holder provides the written notice referred to
in paragraph (k)(i) within 7 days if the Company considers that the exercise of a Performance Right may result in the contravention of
the Prohibition. The absence of such written notice from the Holder will entitle the Company to assume that the exercise of a Performance
Right will not result in any person being in contravention of the Prohibition.

 

		(l)	(Lapse if Milestone not achieved): if the relevant Milestone is not achieved by the required date, then each Performance Right
in that class will automatically lapse on non-satisfaction of the Milestone.

 

		(m)	(Expiry): the Performance Rights (not yet exercised) will automatically lapse on the fifth anniversary of the date of this
Agreement.

 

		(n)	(Exercise procedure): the Company will issue the Holder with a new holding statement for any Share issued upon exercise of
a Performance Right within 10 business days following exercise.

 

		(o)	(Tranches): Performance Rights issued to a Holder may be exercised in tranches at the request of the Holder subject to paragraph
(j).

 

		(p)	(Continued service): a Holder must be a Director, consultant or employee of the Company or a subsidiary thereof. A Holder's
entitlement to any Performance Rights in relation to Milestones that have not been met, ceases upon the date the Holder ceases to be a
employee of the Company. For the avoidance of doubt, for any Milestone met prior to the date of cessation of service, the Holder remains
entitled to exercise the relevant Performance Rights and be issued Shares, regardless of whether the Holder remains a Director , consultant
or employee of the Company or a subsidiary thereof at the time of exercise.

 

		(q)	(Control Events): Performance Rights issued to a Holder will be immediately exercised and Shares issued to the Holder on the
occurrence of any of the following events:

 

		(i)	a Takeover Bid is made to acquire all or some of the ordinary shares in the capital of the Company and the directors of the Company
recommend to shareholders that the Takeover Bid be accepted;

 

		(ii)	a court approves a Scheme of Arrangement which would result in a person having a Relevant Interest in more than 50% of the ordinary
shares in the capital of the Company; or

 

		(iii)	the Company announces to the ASX an intention to sell all or substantially all of its business undertakings or assets.

 

		(r)	(Definitions):

 

		(i)	Relevant Interest has the meaning given to it in the Corporations Act 2001 (Cth).

 

		(ii)	Scheme of Arrangement has the meaning given to it in the Corporations Act 2001 (Cth).

 

		(iii)	Takeover Bid has the meaning given to it in the Corporations Act 2001 (Cth).

 

 

9

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