Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”), effective as of February 1, 2022 (the “Effective Date”),
is made by and between Simon Allen (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.

 

    	 

     

    

 

(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; 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.

 

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(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).

 

(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 non profit 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)
Intentionally omitted.

 

(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.

 

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(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).

 

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 employment the Executive: (i) shall serve as Chief Executive Officer (“CEO”), with responsibilities,
duties and authority customary for such position; (ii) shall report directly to the Board and shall join the Board as a Director; (iii)
shall devote a substantial and primary, but not exclusive 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) manage his personal investments, 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 (4) 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 an annual salary of USD $450,000,
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”).

 

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(b)
Other Stock-Based Awards. Executive understands and agrees that the significant portion of the compensation for his services shall
be derived from the Other Stock-Based Awards under the SIP upon the reaching of certain Performance Targets (including dates) set forth
below, and as approved by the Board, to the satisfaction of the Board on or before the dates set forth in the chart below. A separate
grant document will be issued for the Other Stock-Based Award. All Other Stock-Based Awards under the SIP shall be subject to all terms
and conditions imposed by the SIP, Company Agreements, and any other agreements concerning the sale, disposal, encumberment, transfer
or ownership rights of such Other Stock-Based Award and/or class of shares, as well as timely execution by Executive of all agreements
associated with such Other Stock-Based Award in the discretion of the Company and its advisors. All Performance Targets which have not
been achieved upon the fourth anniversary of the Effective Date of this Agreement shall be forfeit. The Board may elect to revive a forfeited
award or provide new Other Stock-Based Awards at its sole discretion.

 

	Date
    

    

    or
    

    

    Event
	 	Performance
    Target

    

    or
    Date
	 	Other
    Stock-Based Award
	4/1/22

    7/1/22

    10/1/22

    1/1/23

    4/1/23

    7/1/23

    10/1/23

    1/1/24

    4/1/24

    7/1/24

    10/1/24

    1/1/25

    4/1/25

    7/1/25

    10/1/25

    1/1/26
	 	Options
    to purchase common equity shares at the price the Company stock is trading at on the close of the business day on the date of Executive’s
    hire shall vest ratably in 16 quarterly installments (option to purchase 39,062.50 shares each Quarter) on the dates listed herein
    over a 4 year period from April 1, 2022 through January 1, 2026, provided Executive is employed with the Company on the respective
    Date. 	 	625,000
    shares total

     

     

	 	 	 	 	 
	Event	 	The
    closing of a Board approved sale of the Company provided that Executive was employed with the Company on the date of the approval
    of the sale by the Board. 	 	Immediate
    vesting of stock options referenced (above) 

 

(c)
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.

 

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(d)
Paid Time Off; Holidays. During the Term, the Executive shall be entitled to 3 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.

 

(e)
Business Expenses. During employment 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.

 

(f)
Bonus Opportunity. In the event of a Board approved sale of the Company for a sale price equal to or greater than Five Hundred
Million Dollars ($500,000,000 USD), the Company shall pay Employee a Bonus in the amount of One Million Five Hundred Thousand Dollars
($1,500,000 USD), less applicable taxes and payroll withholdings, provided that Executive was employed with the Company on the date of
the approval of the sale by the Board. This Bonus shall be paid no later than 30 days after the closing date of any such qualifying sale
of the Company.

 

There
are no other planned bonus payments to Executive; however, the Board may award Executive a bonus at any time. Whether to award an additional
bonus, and in what amount, shall be in the sole discretion of the Board.

 

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:

 

(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.

 

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(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(e), (iii) any accrued PTO owed to the Executive pursuant to Section 3(d),
and (iv) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements
under Section 3(c), 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.

 

(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 to nine (9) months of the
Annual Base Compensation plus reimbursement for COBRA premiums paid by Employee for a maximum of 12 months.

 

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(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)
Other Stock-Based Awards. Notwithstanding anything to the contrary in this Agreement or any other agreement, including the SIP
and any award agreement thereunder, all Other Stock-Based Awards granted to the Executive under the SIP and held by the Executive, but
which have not yet been completed, as of immediately prior to a Change in Control, to the extent unvested, shall immediately become 100%
vested on a date set by the Board, provided Executive was employed by the Company on the date of the Change in Control.

 

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(b)
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.

 

7.
Restrictive Covenants

 

(a)
In Executive’s role as CEO, 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 CEO, 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 CEO, the Company will provide, and has provided, Executive with access to the Proprietary Information and
other confidential information of the Company. As the CEO, 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.

 

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(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).

 

(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.

 

    	10

    	 

    

 

(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.

 

(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.

 

    	11

    	 

    

 

(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.

 

(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.

 

    	12

    	 

    

 

(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.

 

    	13

    	 

    

 

(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.

 

    	14

    	 

    

 

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

 

	 	(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.

 

    	15

    	 

    

 

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.

 

    	16

    	 

    

 

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.

 

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]

 

    	17

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on December 31, 2021.

 

	 	COMPANY
	 	 	 
	 	Anebulo
    Pharmaceuticals, Inc.
	 	 	 
	 	By:	/s/ Joseph
    Lawler
	 	Name:
    	Joseph
    Lawler
	 	Title:
    	Chairman
    of the Board of Directors
	 	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Simon
    Allen
	 	Simon
    Allen

 

    	18

    	 

    

 

EXHIBIT
A

 

FORM
OF RELEASE

 

In
consideration for the payment of the Severance Payment provided for per the terms of the Employment Agreement between the Company and
Simon Allen, Simon Allen (the “Executive”) agrees for the Executive, the Executive’s spouse and child or children
(if any), the Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives, successors
and assigns, hereby forever to release, discharge, and covenant not to sue Anebulo Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), and any of its past, present, or future parent, affiliated, related, and/or subsidiary entities, and all
of the past and present directors, shareholders, officers, general or limited partners, employees, agents, and attorneys, and agents
and representatives of such entities, and employee benefit plans in which the Executive is or has been a participant by virtue of his
employment with the Company (collectively, the “Releasees”), from any and all claims, debts, demands, accounts, judgments,
rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits,
expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs),
whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which the Executive has or may have had
against such Releasees based on any events or circumstances arising or occurring on or prior to the date this release (the “Release”)
is executed, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever, (a) the Executive’s
employment with the Company or its subsidiaries or the termination thereof or (b) the Executive’s status at any time as a holder
of any securities of the Company, and any and all claims arising under federal, state, or local laws relating to employment, or securities,
including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation,
or liability in tort, claims of any kind that may be brought in any court or administrative agency, any claims arising under Title VII
of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards
Act, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Securities Act of 1933, the Securities Exchange
Act of 1934, the Sarbanes-Oxley Act, and similar state or local statutes, ordinances, and regulations; provided, however,
notwithstanding anything to the contrary set forth herein, that this Release shall not extend to (i) benefit claims under employee pension
or welfare benefit plans in which the Executive is a participant by virtue of his employment with the Company or its subsidiaries, (ii)
any rights under that certain Amended and Restated Employment Agreement, dated as of March 1, 2017, by and between the Company and the
Executive, (iii) any rights of indemnification the Executive may have under any written agreement between the Executive and the Company
(or its affiliates), the Company’s Certificate of Incorporation, the Partnership’s LP Agreement, the General Corporation
Law of the State of Delaware, any applicable statute or common law, or pursuant to any applicable insurance policy, (iv) unemployment
compensation, (v) contractual rights to vested equity awards, (vi) COBRA benefits and (viii) any rights that may not be waived as a matter
of law.

 

The
Executive understands that this Release includes a release of claims arising under the Age Discrimination in Employment Act (ADEA). The
Executive understands and warrants that he has been given a period of 21 days to review and consider this Release. The Executive further
warrants that he understands that he may use as much or all of his 21-day period as he wishes before signing, and warrants that he has
done so. The Executive further warrants that he understands that, with respect to the release of age discrimination claims only, he has
a period of seven (7) days after executing on the second signature line below to revoke the release of age discrimination claims by notice
in writing to the Company.

 

    	A-1

    	 

    

 

The
Executive is hereby advised to consult with an attorney prior to executing this Release. By his signature below, the Executive warrants
that he has had the opportunity to do so and to be fully and fairly advised by that legal counsel as to the terms of this Release.

 

ACKNOWLEDGEMENT
(AS TO ALL CLAIMS

OTHER THAN AGE DISCRIMINATION CLAIMS)

 

The
undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of
this Release (other than as it relates to age discrimination claims) by his signature below.

 

	 	Simon
    Allen	Date	_______________________
	 	_______________________	 _____________________________

 

ACKNOWLEDGEMENT
(AGE DISCRIMINATION CLAIMS)

 

The
undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of
this Release (as it relates to age discrimination claims) by his signature below.

 

	 	Simon
    Allen	Date	_______________________
	 	_________________________	 ___________________________
	 		 	 

 

    	A-2Exhibit 10.1

        

     

      

    CHANGE IN CONTROL SEVERANCE AGREEMENT

    THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is made and entered into as of this 3rd day
      of January, 2022 (the “Commencement Date”), by and between Security Federal Bank (the “Bank”) (which, together with any successor thereto which executes and delivers the assumption agreement provided for in Section 6(a) hereof or which otherwise becomes bound by all of the terms and provisions of this Agreement by operation of law, is hereinafter sometimes referred to as “Security Federal”), and Philip Wahl (the
      “Employee”).  The Bank is a wholly-owned subsidiary of Security Federal Corporation (the “Company”).

    WHEREAS, the Employee is currently serving as President of the Bank; and

    WHEREAS, the board of directors of the Company and the board of directors of the Bank (collectively, the “Board of
      Directors”, and separately the “Company Board or Directors” and the “Bank Board of Directors”, respectively) recognize the possibility of a change in control of the Company or the Bank may occur and that such possibility, and the uncertainty and
      questions which may arise among management, may result in the departure or distraction of key management to the detriment of the Bank, the Company and its shareholders;

    WHEREAS, the Bank Board of Directors believes it is in the best interests of Security Federal to enter into this
      Agreement with the Employee in order to assure continuity of management of the Bank and to reinforce and encourage the continued attention and dedication of the Employee to the Employee's assigned duties without distraction in the face of potentially
      disruptive circumstances arising from the possibility of a change in control of the Company and/or the Bank, although no such change is now contemplated; and

    WHEREAS, the Bank’s Board of Directors has approved and authorized the execution of this Agreement with the Employee;

    NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements of the parties
      herein, it is AGREED as follows:

    1. Certain Definitions.

    “Agreement Renewal Date” shall mean the January 1 next following the Commencement Date and each anniversary thereof.

    “Change in Control” means (1) an offer or other than the Company purchases shares of stock of the Company or the Bank pursuant to a tender
      or exchange offer for such shares; (2) an event of a nature that results in the acquisition of control of the Company or the Bank within the meaning of the Bank Holding Company Act of 1956, as amended, under 12 U.S.C. Section 1841 (or any successor
      statute and applicable regulation), or requires the filing of a change of control notice with the Federal Reserve Board (“Federal Reserve”) or the Federal Deposit Insurance Corporation (“FDIC”) under 12 U.S.C. 1817(j) (or any successor statute or
      applicable regulation); (3) any person (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”)) that is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) directly or
      indirectly of securities of the Company or the Bank representing 35% or more of the combined voting power of the Company's or the Bank’s outstanding securities; (4) individuals who are members of the Company Board of Directors immediately following
      the Commencement Date or who are members of the Bank Board of Directors immediately following the Commencement Date (in each case, the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequently whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for
      election by the Company's or the Bank’s stockholders was approved by the nominating committee serving under an Incumbent Board, shall be considered a member of the Incumbent Board; or 

     

    

     

    

    
      
        

    

    
     

    

    (5) consummation of a plan of reorganization, merger, acquisition, consolidation, sale of all or substantially all of the assets of the
      Company or a similar transaction in which the Company is not the resulting entity, provided that the term “Change in Control” shall not include an acquisition of securities by
      an employee benefit plan of the Bank or the Company.

    

    

    “Code” means the Internal Revenue Code of 1986, as amended.

    “Commencement Date” means the date of this Agreement.

    “Consolidated Subsidiaries” means any subsidiary or subsidiaries of the Bank (or its successors) that are part of the
      affiliated group (as defined in Section 1504 of the Code, without regard to subsection (b) thereof) that includes the Bank.

    “Date of Termination” means the date upon which the Employee ceases to serve as an employee of Security Federal.

    “Involuntary Termination” means the termination of the employment of Employee (i) by  the Bank, without his express
      written consent; or (ii) by the Employee by reason of a material diminution of or interference with his duties, responsibilities or benefits, including (without limitation) any of the following actions unless consented to in writing by the Employee:
      (1) a requirement that the Employee be based at any place other than Aiken, South Carolina, or within a radius of 30 miles, except for reasonable travel on  Bank business; (2) a material demotion of the Employee; (3) a material reduction in the
      number or seniority of personnel reporting to the Employee or a material reduction in the frequency with which, or in the nature of the matters with respect to which such personnel are to report to the Employee, other than as part of a Bank--wide
      reduction in staff; (4) a reduction in the Employee's salary other than as part of an overall program applied uniformly and with equitable effect to all members of the senior management of the Bank; (5) a material permanent increase in the required
      hours of work or the workload of the Employee; or (6) any purported termination of the Employee's employment, except for Termination for Cause, which purported termination shall not be effective for purposes of this Agreement. The term “Involuntary
      Termination” does not include Termination for Cause, retirement or suspension or temporary or permanent prohibition from participation in the conduct of the Bank's affairs under Section 8 of the Federal Deposit Insurance Act (“FDIA”).

    “Restriction Period” shall mean the one-year period commencing on the date of the Employee’s Date of Termination.

    

    

    “Restrictive Covenants” shall mean the covenants and restrictions described in Section 4.

    

    

    “Section 409A” shall mean Section 409A of the Code and the regulations and guidance of general applicability issued
      thereunder.

    “Termination for Cause” and “Terminated for Cause” mean termination of the employment of the Employee because of the
      Employee's personal dishonesty, willful misconduct, breach of a fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, or regulation (other than traffic violations or similar
      offenses) or final cease-and-desist order, or (except as provided below) material breach of any provision of this Agreement. No act or failure to act by the Employee shall be considered willful unless the Employee acted or failed to act with an
      absence of good faith and without a reasonable belief that his action or failure to act was in the best interest of the  Bank. The Employee shall not be deemed to have been Terminated for Cause unless and until there shall have been delivered to the
      Employee a copy of a resolution, duly adopted by the affirmative vote of 

     

    

    
      2

      
        

    

     

    

    not less than a majority of the entire membership of the Board of Directors at a meeting of the Board of Directors
      duly called and held for such purpose (after reasonable notice to the Employee and an opportunity for the Employee, together with the Employee's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of Directors
      the Employee has engaged in conduct described in the preceding sentence and specifying the particulars thereof in detail.

    2. Term. This Agreement shall commence as of January 3, 2022, and shall continue until December 31, 2022,
        provided, however, on each Agreement Renewal Date the term of the Agreement shall automatically be extended for one additional year unless at least 30 days prior to any Agreement Renewal Date the Board should have given notice to the Employee that
        it does not wish to extend the Agreement; and provided, further, that notwithstanding any such notice by the Board not to extend, this Agreement shall continue in effect for a period of 24 months beyond the term provided herein if a Change in
        Control shall have occurred during such term.

    

    

    3. Severance Benefits.

    (a) If within the period commencing six months before, or twenty-four months after, a Change in Control, the Employee experiences an Involuntary Termination, the Bank shall (i) pay
        the Employee his salary, including the pro rata portion of any incentive award, through the Date of Termination; and (ii) pay to the Employee a cash lump sum equal to 1.2 times the Employee’s annual base salary in effect at the time of his Date of
        Termination.  Payments shall be subject to customary tax and other withholdings.  No payment shall be made under this Section 3 unless the Employee timely executes a release satisfactory to the Bank. Payments under this Section 3 are subject to the restrictions and conditions set forth in this Agreement.

    (b) The Employee shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount
        of any payment or benefit provided for in this Agreement be reduced by any compensation earned by the Employee as the result of employment by another employer, by retirement benefits paid after the Date of Termination, or otherwise. This Agreement
        does not constitute a contract of employment or impose on  the Bank any obligation to retain the Employee, to change the status of the Employee's employment, or to change the  Bank's policies regarding termination of employment.

    (c) Temporary Suspension or Prohibition.  If the Employee is suspended and/or temporarily prohibited from
        participating in the conduct of the Bank's affairs by a notice served under Section 8(e)(3) or (g)(1) of the FDIA, 12 U.S.C. Section 1818(e)(3) and (g)(1), the Bank's obligations under this Agreement shall be suspended as of the date of service,
        unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Bank may in its discretion (i) pay the Employee all or part of the compensation withheld while its obligations under this Agreement were suspended, and (ii)
        reinstate in whole or in part any of its obligations which were suspended, all in a manner that does not violate Section 409A.

    

    

    (d) Permanent Suspension or Prohibition.  If the Employee is removed and/or permanently prohibited from
        participating in the conduct of the Bank's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C. Section 1818(e)(4) and (g)(1), all obligations of the Bank under this Agreement shall terminate as of the effective date of
        the order, but vested rights of the contracting parties shall not be affected.

     

      

     

      

    
      3

      
        

    

    

    

    (e) Default of the Bank.  If the Bank is in default (as defined in Section 3(x)(1) of the FDIA), all
        obligations under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the contracting parties.

    

    

    (f) Termination by Regulators.  All obligations under this Agreement shall be terminated, except to the extent
        determined that continuation of this Agreement is necessary for the continued operation of the Bank: (1) at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c)
        of the FDIA; or (2) by the FDIC, at the time it approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Director of the FDIC to be in an unsafe or unsound condition.  Any rights of
        the parties that have already vested, however, shall not be affected by any such action.

    

    

    (g) Reductions of Benefits. Notwithstanding any other provision of this Agreement, if payments and the value of
        benefits received or to be received under this Agreement, together with any other amounts and the value of benefits received or to be received by the Employee, would cause any amount to be nondeductible by the Company or any of the Consolidated
        Subsidiaries for federal income tax purposes pursuant to or by reason of Code Section 280G, then payments and benefits under this Agreement shall be reduced (not less than zero) to the extent necessary so as to maximize the economic present value
        of benefits to be received by the Employee, as determined by the Company Board of Directors as of the date of the Change in Control using the discount rate required by Code Section 280G(d)(4), without causing any amount to become nondeductible
        pursuant to or by reason of Code Section 280G.

    

    

    (h) Further Reductions; Clawback.  Any payments made to the Employee pursuant to this Agreement, or otherwise,
        are subject to and conditioned upon their compliance with 12 U.S.C. Section 1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.  Any payments made to the Employee pursuant to this Agreement also are
        subject to the Employee complying with the requirements of Section 4.  If those requirements are not met, then amounts payable under this Section 3 are subject to reduction, elimination or reimbursement as provided for in Section 4. All amounts
        payable to the Employee under this Agreement shall be subject to such clawback (recovery) as may be required to be made pursuant to law, rule, regulation or stock exchange listing requirement or any policy of the  Bank adopted pursuant to any such
        law, rule, regulation or stock exchange listing requirement.

    

    

    4. Restrictive Covenants.

    

    

    (a) Nonsolicitation of Customers.  During the Restriction Period, the Employee shall not solicit any Customers
        for services or products then provided by the  Bank or the Consolidated Subsidiaries.  For purpose of this Section, “Customers” are defined as (1) all customers serviced by the  Bank, or any of the Consolidated Subsidiaries as of the Employee’s
        Date of Termination, (2) all potential customers whom the  Bank or any of the Consolidated Subsidiaries actively solicited at any time during the 12-month period ending on the Employee’s Date of Termination, and (3) all successors, owners,
        directors, partners and management personnel of the Customers described in (1) or (2).

     (b) Nonsolicitation of Employees.  The Employee recognizes that the
        workforce of the  Bank is a vital part of their businesses; therefore, during the Restriction Period, the Employee shall not directly or indirectly recruit or
        solicit any Employee (as defined below) to leave his or her employment with the Bank or any of the Consolidated Subsidiaries. Without limiting the foregoing, this includes that the Employee shall not (1) disclose to any third party the names,
        backgrounds, 

     

      

     

      

    
      4

      
        

    

     

      

    or qualifications of any of the Employees or otherwise identify them as potential candidates for employment, or (2) personally or through any
        other person approach, recruit, interview or otherwise solicit Employees to work for any other employer.  For purposes of this Section, “Employees” means all employees working for the Bank or any of the Consolidated Subsidiaries at the time of the
        Employee’s Date of Termination.

    

    

    (c) Nondisclosure.  In the course of employment, the Employee may have access to confidential information and
        trade secrets relating to the business of Security Federal. Except as required in the course of employment by the Bank, the Employee shall not, without the prior written consent of the Board of Directors, directly or indirectly disclose to anyone
        any confidential information relating to the Security Federal or any financial information, trade secrets or “know-how” that is germane to the Security Federal’s business and operations. The Employee recognizes and acknowledges that any financial
        information concerning any of the customers of Security Federal, as may exist from time to time, is strictly confidential and is a valuable, special and unique asset of their businesses.  The Employee shall not, either before or after termination
        of this Agreement, disclose to anyone said financial information, or any part thereof, for any reason or purposes whatsoever.

    

    

    NOTICE:  Notwithstanding the foregoing nondisclosure obligations, pursuant to 18 USC Section
      1833(b), the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (1) in confidence to a federal, state, or local government official, either directly
      or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Additionally,
      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. 

    

    

    (d) Non-Defamation.  The Employee shall not, during the course of the Employee's employment with the  Bank, nor
        at any time thereafter, directly or indirectly, in public or private, in any manner or in any medium whatsoever, deprecate, impugn or otherwise make any comments, writings, remarks or other expressions that would, or could be construed to, defame
        the Company, the Bank or either of their reputations.  Nor shall the Employee assist any other person, firm or company in so doing.

    

    

    (e) Sanctions; Remedial Actions.

    

    

    (1) Cessation of Remaining Payments and Compensation; Right to Recover Previous Payments.  In the event any of
        the Restrictive Covenants are violated, any remaining payments or compensation, of any nature, due to the Employee under Section 3 shall immediately cease, and the  Bank shall have the right to recover, at any time and in its sole discretion, all
        payments and other compensation (of whatever nature) paid to the Employee (or the equivalent value thereof, in the case of insurance or other non-monetary payments) after such violation occurred.

    (2) Injunctive Relief.  The Employee acknowledges that it is impossible to measure in money the damages that
        will accrue to Security Federal if the Employee fails to observe and comply with the Restrictive Covenants; therefore, the Restrictive Covenants may be enforced by an action at law
        for damages and by an injunction or other equitable remedies to prohibit the restricted activity.  The 

     

      

    
      5

      
        

    

    Employee hereby waives the claim or defense that an adequate remedy at law is available to Security Federal.  Nothing set forth herein shall prohibit Security Federal from pursuing all remedies available to them.

    (f) Reasonableness.  The parties agree that this Agreement in its entirety, and in particular the Restrictive
        Covenants, are reasonable both as to time and scope.  The parties additionally agree (1) that the Restrictive Covenants are necessary for the protection of Security Federal’s
        business and goodwill; (2) that the Restrictive Covenants are not any greater than are reasonably necessary to secure the Security Federal’s business and goodwill; and (3) that the
        degree of injury to the public due to the loss of the service and skill of the Employee or the restrictions placed upon the Employee’s opportunity to make a living with the Employee’s skills upon enforcement of said restraints, does not and will
        not warrant non-enforcement of said restraints. The parties agree that if the scope of the Restrictive Covenants is adjudged too broad to be capable of enforcement, then the parties authorize said court or arbitrator to narrow the Restrictive
        Covenants so as to make them capable of enforcement, given all relevant circumstances, and to enforce the same.

    (g) Survival. This Section 4 shall survive the termination of this Agreement.

    5. Attorneys' Fees. If the Employee is purportedly Terminated for Cause and the Bank denies payments and/or
        benefits under Section 3(a) of this Agreement on the basis that the Employee experienced Termination for Cause, but it is determined by a court of competent jurisdiction or by an arbitrator pursuant to Section 12 that “cause” as contemplated by
        this Agreement did not exist for termination of the Employee's employment, or if in any event it is determined by any such court or arbitrator that the Bank has failed to make timely payment of any amounts or provision of any benefits owed to the
        Employee under this Agreement, the Employee shall be entitled to reimbursement for all reasonable costs, including attorneys' fees, incurred in challenging such termination of employment or collecting such amounts or benefits. Such reimbursement
        shall be in addition to all rights to which the Employee is otherwise entitled under this Agreement.

    

    

    6. No Assignments.

    (a) This Agreement is personal to each of the parties hereto, and neither party may assign or delegate any of its rights or obligations hereunder without first obtaining the written
        consent of the other party; provided, however, that the Company and the Bank shall require any successor or assign (whether direct or indirect, by purchase, merger,
        consolidation, operation of law or otherwise) to all or substantially all of the business and/or assets of the Company and the Bank, by an assumption agreement, to expressly assume and agree to perform this Agreement in the same manner and to the
        same extent that the Company and the Bank would be required to perform it if no such succession or assignment had taken place. Failure of the Company and the Bank to obtain such an assumption agreement prior to the effectiveness of any such
        succession or assignment shall be a breach of this Agreement and shall entitle the Employee to compensation and benefits in the same amount and on the same terms that Employee would be entitled to hereunder under this Agreement if an event of
        Involuntary Termination occurred. For purposes of implementing the provisions of this Section 6(a), the date on which any such succession becomes effective shall be deemed to be the Date of Termination.

    (b) This Agreement and all rights of the Employee hereunder shall inure to the benefit of and be enforceable by the Employee's personal and legal representatives, executors,
        administrators, successors, heirs, distributees, devisees and legatees. In the event of the death of the Employee, unless otherwise provided herein, all amounts payable hereunder shall be paid to the Employee's devisee, legatee, or other designee
        or, if there be no such designee, to the Employee's estate.

     

      

     

      

    
      6

      
        

    

    7. Delivery of Notices. For the purposes of this Agreement, all notices and other communications to any party
        hereto shall be in writing and shall be deemed to have been duly given when delivered or sent by certified mail, return receipt requested, postage prepaid, addressed as follows:

    
      
        	
                 If to the Employee: 

                  

              	
                 At the address last appearing

                on the personnel records of

                the Employee 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                If to Security Federal:  

                

              	
                Security Federal Bank 

                

                238 Richland Avenue Northwest

                Aiken, South Carolina 29801

                Attention: Corporate Secretary 

              	
                 

              

      

       

      

    or to such other address as such party may have furnished to the other in writing in accordance herewith, except that a notice of change
      of address shall be effective only upon receipt.

    8. Amendments. No amendments or additions to this Agreement shall be binding unless in writing and signed by
        both parties, except as herein otherwise provided or as necessary to avoid a violation of Section 409A, in which case the amendment may be made by the Bank or its delegate.

    9. Headings. The headings used in this Agreement are included solely for convenience and shall not affect, or
        be used in connection with, the interpretation of this Agreement.

    10. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or
        unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

    11. Governing Law. This Agreement shall be governed by the laws of the State of South Carolina to the extent
        that federal law does not govern.

    12. Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be
        settled exclusively by binding arbitration, conducted before a panel of three arbitrators in a location selected by the Employee within 50 miles of such Employee's job location with the Bank, in accordance with the rules of the American Arbitration
        Association then in effect. Judgment may be entered on the arbitrators' award in any court having jurisdiction.

    13. Knowing and Voluntary Agreement.  Employee represents and agrees that the Employee has read this Agreement,
        understands its terms, and that the Employee has the right to consult counsel of choice and has either done so or knowingly waives the right to do so. Employee also represents that the Employee has had ample time to read and understand the
        Agreement before executing it and that the Employee enters into this Agreement without duress or coercion from any source.

    

    

    

    

    * * * * *

    
      7

      
        

    

    

    

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

    THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

     

    

    
      	
              Attest: 

              

            	
              SECURITY FEDERAL BANK 

              

            
	
               

            	
               

            
	
              /s/Beverly S. Nettles                              

              

            	
              /s/J. Chris Verenes                                      

            
	
              Beverly S. Nettles, Assistant Secretary  

              

            	
              By:      J. Chris Verenes 

              

            
	
               

            	
              Its:      Chief Executive Officer 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              EMPLOYEE 

              

            
	 	 
	 	/s/Philip Wahl                                              

              
	           

            	Name: Philip Wahl 

            

    

    

    

    

      

  

  8

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