Exhibit 10.1


 


June 9, 2020


 


Mr. William B. Stilley


Chief Executive Officer and Chairman of the
Board


Adial Pharmaceuticals, Inc.


1180 Seminole Trail, Ste. 495


Charlottesville, VA 22901


 


Dear Mr. Stilley:


 


This letter (the “Agreement”)
constitutes the agreement between Maxim Group LLC (“Maxim”) and Joseph Gunnar & Co. (“Gunnar”)
(collectively, the “Placement Agents”) and Adial Pharmaceuticals, Inc., a company incorporated under the laws
of the State of Delaware (the “Company”), pursuant to which the Placement Agents shall serve as the placement
agents for the Company, on a “reasonable best efforts” basis, in connection with the proposed placement (the “Placement”)
of common stock (the “Shares”) of the Company, par value $0.001 per share (“Common Stock”),
warrants to purchase Common Stock (the “Warrants” and, and collectively with the Shares, the “Securities”).
The terms of the Placement and the Securities shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser”
and collectively, the “Purchasers”) and nothing herein constitutes that the Placement Agents would have the
power or authority to bind the Company or any Purchaser or an obligation for the Company to issue any Securities or complete the
Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement,
including but not limited to the Purchase Agreement (as defined below), shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.”
The Company expressly acknowledges and agrees that the Placement Agents’ obligations hereunder are on a reasonable best efforts
basis only and that the execution of this Agreement does not constitute a commitment by the Placement Agents to purchase the Securities
and does not ensure the successful placement of the Securities or any portion thereof or the success of the Placement Agents with
respect to securing any other financing on behalf of the Company. Following the prior written consent of the Company, the Placement
Agents may retain other brokers or dealers to act as sub-agents or selected-dealers on its behalf in connection with the Placement.
The sale of the Securities to any Purchaser will be evidenced by a securities purchase agreement (the “Purchase Agreement”)
between the Company and such Purchaser in a form mutually agreed upon by the Company and the Placement Agents. Capitalized terms
that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement. Prior to the signing of
any Purchase Agreement, executive officers of the Company will be available upon reasonable notice and during normal business hours
to answer inquiries from prospective Purchasers.


 


SECTION 1. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY; COVENANTS OF THE COMPANY.


 


A. Representations
of the Company. Each of the representations and warranties (together with any related disclosure schedules thereto) and covenants
made by the Company to the Purchasers in the Purchase Agreement in connection with the Placement is hereby incorporated herein
by reference into this Agreement (as though fully restated herein) and is, as of the date of this Agreement and as of the Closing
Date, hereby made to, and in favor of, the Placement Agents. In addition to the foregoing, the Company represents and warrants
that:


 


1. The
Company has prepared and filed with the Commission a registration statement on Form S-3 (Registration No. 333- 237793), and amendments
thereto, and related preliminary prospectuses, for the registration under the Securities Act of 1933, as amended (the “Securities
Act”), of the Securities, which registration statement, as so amended (including post-effective amendments, if any) became
effective on April 30, 2020. At the time of such filing, the Company met the requirements of Form S-3 under the Securities Act.
Such registration statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and complies with said
Rule. The Company will file with the Commission pursuant to Rule 424(b) under the Securities Act, and the rules and regulations
(the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement to the form of prospectus
included in such registration statement relating to the placement of the Shares and the plan of distribution thereof and has advised
the Placement Agents of all further information (financial and other) with respect to the Company required to be set forth therein.
Such registration statement, including the exhibits thereto, as amended at the date of this Agreement, is hereinafter called the
“Registration Statement”; such prospectus in the form in which it appears in the Registration Statement is hereinafter
called the “Base Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed
with the Commission pursuant to Rule 424(b) (including the Base Prospectus as so supplemented) is hereinafter called the “Prospectus
Supplement.” Any reference in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement
shall be deemed to refer to and include the documents incorporated by reference therein (the “Incorporated Documents”)
pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), on or before the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement,
as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include
the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or
the Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement
to financial statements and schedules and other information which is “contained,” “included,” “described,”
“referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or
the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Base
Prospectus or the Prospectus Supplement, as the case may be. No stop order suspending the effectiveness of the Registration Statement
or the use of the Base Prospectus or the Prospectus Supplement has been issued, and no proceeding for any such purpose is pending
or has been initiated or, to the Company's knowledge, is threatened by the Commission. For purposes of this Agreement, “Free
Writing Prospectus” has the meaning set forth in Rule 405 under the Securities Act and the “Time of Sale Prospectus”
means the preliminary prospectus, if any, together with the Free Writing Prospectuses, if any, used in connection with the Placement,
including any documents incorporated by reference therein.


 



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2. The
Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules as required
by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective,
complied in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations and did
not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein not misleading. The Base Prospectus,
the Time of Sale Prospectus and the Prospectus Supplement, each as of its respective date, comply in all material respects with
the Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Base Prospectus, the Time of Sale
Prospectus and the Prospectus Supplement, as amended or supplemented, did not and will not contain as of the date thereof any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none of
such documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the
Base Prospectus or Prospectus Supplement), in the light of the circumstances under which they were made not misleading; and any
further documents so filed and incorporated by reference in the Base Prospectus, the Time of Sale Prospectus or Prospectus Supplement,
when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act
and the applicable Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof
which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be
filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated
hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time
period. There are no contracts or other documents required to be described in the Base Prospectus, the Time of Sale Prospectus
or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement, which (x) have not been described
or filed as required or (y) will not be filed within the requisite time period.


 


3. The
Company is eligible to use Free Writing Prospectuses in connection with the Placement pursuant to Rules 164 and 433 under the Securities
Act. Any Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been,
or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations
of the Commission thereunder. Each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule
433(d) under the Securities Act or that was prepared by or behalf of or used by the Company complies or will comply in all material
respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. The
Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any Free Writing Prospectus.


 


4. There
are no affiliations with any FINRA member firm among the Company's officers, directors or, to the knowledge of the Company, any
five percent (5.0%) or greater stockholder of the Company, except as set forth in the Registration Statement and SEC Reports.


 


B. Covenants
of the Company. The Company has delivered or made available, or will as promptly as practicable deliver or make available,
to the Placement Agents complete conformed copies of the Registration Statement and of each consent and certificate of experts,
as applicable, filed as a part thereof, and conformed copies of the Registration Statement (without exhibits), the Base Prospectus,
the Time of Sale Prospectus and the Prospectus Supplement, as amended or supplemented, in such quantities and at such places as
the Placement Agents reasonably request. Neither the Company nor any of its directors and officers has distributed and none of
them will distribute, prior to the Closing Date, any offering material in connection with the offering and sale of the Securities
pursuant to the Placement other than the Base Prospectus, the Time of Sale Prospectus, the Prospectus Supplement, the Registration
Statement, copies of the documents incorporated by reference therein and any other materials permitted by the Securities Act.


 


SECTION 2.  REPRESENTATIONS
OF THE PLACEMENT AGENTS. Each of the Placement Agents, severally and not jointly, represents and warrants that it (i) is a
member in good standing of FINRA, (ii) is registered as a broker/dealer under the Exchange Act, (iii) is licensed as a broker/dealer
under the laws of the States applicable to the offers and sales of the Securities by such Placement Agent, (iv) is and will be
a corporate entity validly existing under the laws of its place of incorporation, and (v) has full power and authority to enter
into and perform its obligations under this Agreement. Each Placement Agent will immediately notify the Company in writing of any
change in its status as such. Each of the Placement Agents, severally and not jointly, covenants that it will use its reasonable
best efforts to conduct the Placement hereunder in compliance with the provisions of this Agreement and the requirements of applicable
law.  


 






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SECTION 3.  COMPENSATION.


 


		A.	In consideration of the services to be provided for hereunder, the Company shall pay to the Placement
Agents or their respective designees their pro rata portion (based on the Securities placed) of the following compensation with
respect to the Securities which they are placing:



 


1. A
cash fee (the “Cash Fee”) equal to an aggregate of seven percent (7%) of the aggregate gross proceeds raised in the
Placement. The Cash Fee shall be paid at the Closing of the Placement.


 


2. Subject
to compliance with FINRA Rule 5110(f)(2)(D), the Company also agrees to reimburse the Placement Agents for all travel and other
out-of-pocket expenses, including the reasonable fees, costs and disbursements of its legal counsel, in an amount not to exceed
an aggregate of $50,000. The Company will reimburse Placement Agents directly out of the Closing of the Placement. In the event
this Agreement shall terminate prior to the consummation of the Placement, the Placement Agents shall be entitled to reimbursement
for actual expenses upon providing reasonable documentation relating to the incurrence of such expenses; provided, however, such
expenses shall not exceed $10,000.


 


3. Each
Placement Agent reserves the right to reduce any item of its compensation or adjust the terms thereof as specified herein in the
event that a determination shall be made by FINRA to the effect that such Placement Agent’s aggregate compensation is in
excess of FINRA Rules or that the terms thereof require adjustment.


 


SECTION 4. INDEMNIFICATION.
The Company agrees to the indemnification and other agreements set forth in the Indemnification Provisions (the “Indemnification”)
attached hereto as Addendum A, the provisions of which are incorporated herein by reference and shall survive the termination
or expiration of this Agreement.


 


SECTION 5. ENGAGEMENT
TERM. The Placement Agents engagement hereunder shall be until the earlier of (i) the final closing date of the Placement and
(ii) the date a party terminates the engagement according to the terms of the next sentence (such date, the “Termination
Date” and the period of time during which this Agreement remains in effect is referred to herein as the “Term”).
The engagement may be terminated at any time by either party upon five (5) days written notice to the other party, effective upon
receipt of written notice to that effect by the other party. If the Company elects to terminate this Agreement for any reason even
though the Placement Agents were prepared to proceed with the Placement reasonably within the intent of this Agreement, and if
within forty-five (45) days following such termination, the Company completes any financing of equity, equity-linked or debt or
other capital raising activity of the Company (other than the exercise by any person or entity of any options, warrants or other
convertible securities) with any of the investors first introduced to the Company by Placement Agents during the term of this Agreement,
then the Company will pay the Placement Agents upon the closing of such financing the compensation set forth in Section 3 herein.
Notwithstanding anything to the contrary contained herein, the provisions concerning the Company’s obligation to pay any
fees actually earned pursuant to Section 3 hereof and the provisions concerning confidentiality, indemnification and contribution
contained herein and the Company’s obligations contained in the Indemnification Provisions will survive any expiration or
termination of this Agreement. If this Agreement is terminated prior to the completion of the Placement, all fees due to the Placement
Agents shall be paid by the Company to the Placement Agents on or before the Termination Date (in the event such fees are earned
or owed as of the Termination Date). The Placement Agents agree, severally and not jointly, not to use any confidential information
concerning the Company provided to the Placement Agents by the Company for any purposes other than those contemplated under this
Agreement.


 






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SECTION 6. PLACEMENT
AGENT INFORMATION. The Company agrees that any information or advice rendered by the Placement Agents in connection with this
engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required
by law, the Company will not disclose or otherwise refer to the advice or information in any manner without the Placement Agents’
prior written consent.


 


SECTION 7. NO
FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person
or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges
and agrees that each Placement Agent is not and shall not be construed as a fiduciary of the Company and shall have no duties or
liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention
of such Placement Agent hereunder, all of which are hereby expressly waived.


 


SECTION 8. CLOSING.
The obligations of the Placement Agents, and the closing of the sale of the Securities hereunder are subject to the accuracy, when
made and on the Closing Date, of the representations and warranties on the part of the Company contained herein and in the Purchase
Agreement, to the accuracy of the statements of the Company made in any certificates pursuant to the provisions hereof, to the
performance by the Company of their obligations hereunder, and to each of the following additional terms and conditions, except
as otherwise disclosed to and acknowledged and waived by the Placement Agent by the Company:


 


A. No
stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose
shall have been initiated or threatened by the Commission, and any request for additional information on the part of the Commission
(to be included in the Registration Statement, the Base Prospectus, the Prospectus Supplement or otherwise) shall have been complied
with to the reasonable satisfaction of the Placement Agents. Any filings required to be made by the Company in connection with
the Placement shall have been timely filed with the Commission.


 


B. The
Placement Agents shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration Statement,
the Base Prospectus, the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement of a fact which,
in the opinion of counsel for the Placement Agents, is material or omits to state any fact which, in the opinion of such counsel,
is material and is required to be stated therein or is necessary to make the statements therein not misleading.


 


C. All
corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of
this Agreement, the Securities, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal
matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for Maxim, and the Company shall have furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters.


 


D. The
Placement Agents shall have received from outside counsels to the Company such counsels’ written opinions, addressed to the
Placement Agents and the Purchasers and dated as of the Closing Date, in form and substance reasonably satisfactory to Maxim, including
but not limited to: (i) an opinion of Gracin & Marlow LLP, counsel to the Company with respect to certain corporate and securities
matters; and (ii) an opinion of Vance Intellectual Property, PC, counsel to the Company with respect to certain intellectual property
matters; and (iii) an opinion of Arnall Golden Gregory LLP counsel to the Company with respect to certain regulatory matters.


 






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E. On
the Closing Date, the Placement Agents shall have received a “comfort” letter from Friedman LLP, addressed to each
such Placement Agent and in form and substance satisfactory in all respects to the Placement Agents and counsel for Maxim.


 


F. On
the Closing Date, Placement Agents shall have received a certificate of the chief executive officer of the Company, dated, as applicable,
as of the date of such Closing, to the effect that, as of the date of this Agreement and as of the applicable date, the representations
and warranties of the Company contained herein and in the Purchase Agreement were and are accurate in all material respects, except
for such changes as are contemplated by this Agreement and except as to representations and warranties that were expressly limited
to a state of facts existing at a time prior to the applicable Closing Date, and that, as of the applicable date, the obligations
to be performed by the Company hereunder on or prior thereto have been fully performed in all material respects.


 


G. On
the Closing Date, Placement Agents shall have received a certificate of the Secretary of the Company, dated, as applicable, as
of the date of such Closing, certifying to the organizational documents, good standing in the state of incorporation of the Company
and board resolutions relating to the Placement of the Securities from the Company.


 


H. The
Company (i) shall not have sustained since the date of the latest audited financial statements included or incorporated by reference
in the Registration Statement, the Base Prospectus and the Prospectus Supplement, any loss or interference with its business from
fire, explosion, flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court
or governmental action, order or decree, otherwise than as set forth in or contemplated by the Registration Statement, the Base
Prospectus and the Prospectus Supplement, and (ii) since the date of the latest audited financial statements included or incorporated
by reference in the Registration Statement, the Base Prospectus and the Prospectus Supplement there shall not have been any change
in the capital stock or long-term debt of the Company or any change, or any development involving a prospective change, in or affecting
the business, general affairs, management, financial position, stockholders' equity, results of operations or prospects of the
Company, otherwise than as set forth in or contemplated by the Registration Statement, the Base Prospectus and the Prospectus Supplement,
the effect of which, in any such case described in clause (i) or (ii), is, in the judgment of the Placement Agent, so material
and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Shares on the terms and in the
manner contemplated by the Base Prospectus, Time of Sale Prospectus and Prospectus Supplement.


 


I. The
Common Stock is registered under the Exchange Act and, as of the Closing Date, the Shares shall be listed for trading on the Trading
Market or other applicable U.S. national exchange and reasonable evidence of such action, if available, shall have been provided
to the Placement Agents upon its request. The Company shall have taken no action designed to, or likely to have the effect of terminating
the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading
Market or other applicable U.S. national exchange, nor has the Company received any information suggesting that the Commission
or the Trading Market or other U.S. applicable national exchange is contemplating terminating such registration or listing.


 






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J. No
action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially and adversely
affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or order
of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date which
would prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect the
business or operations of the Company.


 


K. The
Company shall have prepared and filed with the Commission a Current Report on Form 8-K with respect to the Placement, including
as an exhibit thereto this Agreement.


 


L. The
Company shall have entered into a Purchase Agreement with each of the Purchasers and such agreements shall be in full force and
effect and shall contain representations, warranties and covenants of the Company as agreed between the Company and the Purchasers.


 


M. FINRA
shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
the Company shall, if requested by the Placement Agents, make or authorize Placement Agents’ counsel to make on the Company’s
behalf, any filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110 with respect to the Placement and
pay all filing fees required in connection therewith.


 


N. Prior
to the Closing Date, the Company shall have furnished to the Placement Agents such further information, certificates and documents
as the Placement Agents may reasonably request.


 


If any of the conditions
specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, or if any of the certificates,
opinions, written statements or letters furnished to the Placement Agents or to Placement Agents’ counsel pursuant to this
Section 8 shall not be reasonably satisfactory in form and substance to the Placement Agents and to Placement Agents’ counsel,
all obligations of the Placement Agents hereunder may be cancelled by the Placement Agents at, or at any time prior to, the consummation
of the Closing. Notice of such cancellation shall be given to the Company in writing or orally. Any such oral notice shall be confirmed
promptly thereafter in writing.


 


SECTION 9. [RESERVED.]


 


SECTION
10. GOVERNING LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of
New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by
either party without the prior written consent of the other party. This Agreement shall be binding upon and inure to the
benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect
to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute
arising under this Agreement may be brought into the courts of the State of New York or into the Federal Court located in New
York, New York and, by execution and delivery of this Agreement, the Company hereby accepts for itself and in respect of its
property, generally and unconditionally, the jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy
thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If
either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its attorney's fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such action or proceeding.


  


SECTION
11. ENTIRE AGREEMENT/MISC. This Agreement (including the attached Indemnification Provisions) embodies the entire
agreement and understanding between the parties hereto, and supersedes all prior agreements and understandings, relating to
the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect,
such determination will not affect such provision in any other respect or any other provision of this Agreement, which will
remain in full force and effect. This Agreement may not be amended or otherwise modified or waived except by an instrument in
writing signed by all Placement Agents and the Company. The representations, warranties, agreements and covenants contained
herein shall survive the closing of the Placement and delivery of the Securities. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file,
such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof.


 






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SECTION 12. CONFIDENTIALITY.
Each of the Placement Agents, severally and not jointly, (i) will keep the Confidential Information (as such term is defined below)
confidential and will not (except as required by applicable law or stock exchange requirement, regulation or legal process (“Legal
Requirement”)), without the Company’s prior written consent, disclose to any person any Confidential Information,
and (ii) will not use any Confidential Information other than in connection with the Placement. The Placement Agents further agree,
severally and not jointly, to disclose the Confidential Information only to its Representatives (as such term is defined below)
who need to know the Confidential Information for the purpose of the Placement, and who are informed by the Placement Agents of
the confidential nature of the Confidential Information. The term “Confidential Information” shall mean, all
confidential, proprietary and non-public information (whether written, oral or electronic communications) furnished by the Company
to a Placement Agent or its Representatives in connection with such Placement Agent’s evaluation of the Placement. The term
“Confidential Information” will not, however, include information which (i) is or becomes publicly available
other than as a result of a disclosure by a Placement Agent or its Representatives in violation of this Agreement, (ii) is or becomes
available to a Placement Agent or any of its Representatives on a non-confidential basis from a third-party, (iii) is known to
a Placement Agent or any of its Representatives prior to disclosure by the Company or any of its Representatives, or (iv) is or
has been independently developed by a Placement Agent and/or the Representatives without use of any Confidential Information furnished
to it by the Company. The term “Representatives” shall mean each Placement Agent’s directors, board committees,
officers, employees, financial advisors, attorneys and accountants. This provision shall be in full force until the earlier of
(a) the date that the Confidential Information ceases to be confidential and (b) two years from the date hereof. Notwithstanding
any of the foregoing, in the event that a Placement Agent or any of its Representatives are required by Legal Requirement to disclose
any of the Confidential Information, such Placement Agent and its Representatives will furnish only that portion of the Confidential
Information which such Placement Agent or its Representative, as applicable, is required to disclose by Legal Requirement as advised
by counsel, and will use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the Confidential
Information so disclosed.


 


SECTION 13. NOTICES.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to
the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b)
the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature
pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c)
the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall
be as set forth on the signature pages hereto.


 


SECTION 14. Press
Announcements. The Company agrees that the Placement Agents shall, from and after any Closing, have the right to reference
the Placement and the Placement Agents’ role in connection therewith in the Placement Agents’ marketing materials and
on its website and to place advertisements in financial and other newspapers and journals, in each case at its own expense.


 


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Please confirm that
the foregoing correctly sets forth our agreement by signing and returning to Maxim, Benchmark and Colliers the enclosed copy of
this Agreement.


 


	 	Very truly yours,
	 	 
	 	Maxim GROUP LLC
	 	 
	 	By: 	/s/ Clifford A. Teller
	 	 	Name: 	Clifford A. Teller
	 	 	
        Title:
	Executive Managing Director,

        Investment Banking

	 	 
	 	 	Address for notice:
	 	 	405 Lexington Avenue
	 	 	New York, NY 10174
	 	 	Attention: James Siegel, General Counsel

        Email:



  


	 	JOSEPH GUNNAR & CO., LLC
	 	 
	 	By: 	/s/ Stephan Stein
	 	 	Name: 	Stephan Stein
	 	 	Title:    	President
	 	 	 
	 	 	Address for notice:
	 	
         
	30 Broad Street, 11th Floor

        New York, New York 10004

        Attention: Stephan Stein

        Email:



 


Accepted and Agreed to
as of


the date first written
above:


 





	ADIAL PHARMACEUTIALS, INC.
	 	 
	By: 	/s/ William B. Stilley	 
	 	Name: 	William B. Stilley	 
	 	Title:  	Chief Executive Officer 	 
	 	 	 	 
	 	Address for notice:


 


Adial Pharmaceuticals, Inc.


1180 Seminole Trail, Ste. 495


Charlottesville, VA 22901

Attn: Chief Executive Officer


Email:

	 







 





 


[Signature Page to
Placement Agency Agreement Between 


Adial Pharmaceuticals,
Inc. and Maxim Group LLC and Joseph Gunnar & Co., LLC]


 




     


     


    

 


ADDENDUM A


INDEMNIFICATION
PROVISIONS


 


In connection
with the engagement of Maxim Group LLC and Joseph Gunnar & Co., LLC (the “Lead Managers”) by Adial Pharmaceuticals,
Inc. (the “Company”) pursuant to a placement agency agreement dated as of the date hereof, between the Company and
the Lead Managers, as it may be amended from time to time in writing (the “Agreement”), the Company hereby agrees as
follows:


 


1. To
the extent permitted by law, the Company will indemnify the Lead Managers and each of their respective affiliates, directors, officers,
employees and controlling persons (within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of
the Securities Exchange Act of 1934) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including
the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to the Agreement,
except, with regard to the Lead Managers, to the extent that any losses, claims, damages, expenses or liabilities (or actions in
respect thereof) are found in a final judgment (not subject to appeal) by a court of law to have resulted primarily and directly
from the Lead Manager’s willful misconduct or gross negligence in performing the services described herein, as the case may
be.


 


2. Promptly
after receipt by the Lead Managers of notice of any claim or the commencement of any action or proceeding with respect to which
the Lead Managers are entitled to indemnity hereunder, the Lead Managers will notify the Company in writing of such claim or of
the commencement of such action or proceeding, and the Company will assume the defense of such action or proceeding and will employ
counsel reasonably satisfactory to the Lead Managers and will pay the fees and expenses of such counsel. Notwithstanding the preceding
sentence, the Lead Managers will be entitled to employ counsel separate from counsel for the Company and from any other party in
such action if counsel for the Lead Manager reasonably determines that it would be inappropriate under the applicable rules of
professional responsibility for the same counsel to represent both the Company and the Lead Managers. In such event, the reasonable
fees and disbursements of no more than one such separate counsel will be paid by the Company. The Company will have the exclusive
right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding without
the prior written consent of the Lead Managers, which will not be unreasonably withheld.


 


3. The
Company agrees to notify the Lead Managers promptly of the assertion against it or any other person of any claim or the commencement
of any action or proceeding relating to a transaction contemplated by the Agreement.


 


4. If
for any reason the foregoing indemnity is unavailable to the Lead Managers or insufficient to hold the Lead Managers harmless,
then the Company shall contribute to the amount paid or payable by the Lead Managers, as the case may be, as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company
on the one hand, and the Lead Managers on the other, but also the relative fault of the Company on the one hand and the Lead Managers
on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations. The
amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include
any legal or other fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding
the provisions hereof, the Lead Managers’ share of the liability hereunder shall not be in excess of the amount of fees actually
received, or to be received, by the Lead Managers under the Agreement (excluding any amounts received as reimbursement of expenses
incurred by the Lead Managers).


 


5. These
Indemnification Provisions shall remain in full force and effect whether or not the transaction contemplated by the Agreement is
completed and shall survive the termination of the Agreement, and shall be in addition to any liability that the Company might
otherwise have to any indemnified party under the Agreement or otherwise.


 


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	 	Very truly yours,
	 	 
	 	Maxim GROUP LLC
	 	 
	 	By: 	/s/ Clifford A. Teller
	 	 	Name: 	Clifford A. Teller
	 	 	
        Title:
	Executive Managing Director,

        Investment Banking

	 	 
	 	 	Address for notice:
	 	 	405 Lexington Avenue
	 	 	New York, NY 10174
	 	 	Attention: James Siegel, General Counsel

        Email:



  


	 	JOSEPH GUNNAR & CO., LLC
	 	 
	 	By: 	/s/ Stephan Stein
	 	 	Name: 	Stephan Stein
	 	 	Title:    	President
	 	 	 
	 	 	Address for notice:
	 	 	30 Broad Street, 11th Floor

        New York, New York 10004

        Attention: Stephan Stein

        Email:



 


Accepted and Agreed to
as of


the date first written
above:


 


	ADIAL PHARMACEUTIALS, INC.
	 	 
	By: 	/s/ William B. Stilley	 
	 	Name: 	William B. Stilley	 
	 	Title:  	Chief Executive Officer 	 
	 	 	 
	 	Address for notice:	 
	 	 	 
	 	Adial Pharmaceuticals, Inc.


1180 Seminole Trail, Ste. 495


Charlottesville, VA 22901

Attn: Chief Executive Officer


Email:

	 
















 


[Signature Page
to Indemnification Provisions Pursuant to Placement Agency Agreement]


between Adial Pharmaceuticals,
Inc., Maxim Group LLC and Joseph Gunnar & Co., LLC]