Exhibit
10.1


 


 






 


Stock Purchase Agreement


 


By and Between


 


Adial Pharmaceuticals, Inc.


 


and


 







 



 


July 6, 2021


 





 



 




     


     


    

 


Stock
Purchase Agreement


 


This Stock Purchase Agreement
(together with all exhibits and schedules hereto, this “Agreement”) is entered into as of July 6, 2021, by and between Adial
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and ____________________ (the “Buyer”).
The Company and Buyer may be collectively referred to herein as the “Parties” and individually as a “Party.”


 


WHEREAS, the Company desires
to sell to Buyer, and Buyer wishes to purchase from the Company, an aggregate of ___________________ (______________) shares, subject to adjustment
as set forth in this Agreement (collectively, the “Shares”), of the Company’s common stock, $0.001 par value (the “Common
Stock”), in two (2) separate tranches as set forth in Article II herein, subject to the terms and conditions set forth herein;


 


WHEREAS, the Company and the
Buyer are executing and delivering this Agreement in reliance upon the exemption from the registration requirements of the Securities
Act (as defined below) afforded by Section 4(a)(2) of the Securities Act (as defined below) (without limiting any other such exemption
which may apply to the transactions contemplated by this Agreement) and in reliance upon specific exemptions from the registration or
qualification requirements of applicable state securities laws; and


 


WHEREAS, concurrently with
the execution and delivery of this Agreement at the First Tranche Closing, the Parties hereto shall execute and deliver at the First Tranche
Closing a Registration Rights Agreement, in the form attached hereto as Exhibit A (the “Registration Rights Agreement”),
pursuant to which the Company has agreed to provide certain registration rights with respect to the Shares under the Securities Act;


 


NOW, THEREFORE, in consideration
of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:


 


Article I. Definitions


 


Section 1.01  Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms, as used herein, have the following meanings:


 


		(a)	“Affiliate” means, with respect to a specified
Person, any other Person that directly or indirectly Controls, is Controlled by or is under common Control with, the specified Person.



 


		(b)	“Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however,
for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home,”
“shelter-in-place,” “non-essential employee” or any other similar orders or restrictions or the closure of any
physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including
for wire transfers) of commercial banks in The City of New York are generally are open for use by customers on such day.



 






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		(c)	“Control” means (a) the possession, directly
or indirectly, of the power to vote ten percent (10%) or more of the securities or other equity interests of a Person having ordinary
voting power, (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of a Person, by contractor otherwise, or (c) being a director, officer, executor, trustee or fiduciary (or their equivalents) of a Person
or a Person that controls such Person.



 


		(d)	“Governmental Entity” means any federal, state,
municipal, local or foreign government and any court, tribunal, arbitral body, administrative agency, department, subdivision, entity,
commission or other governmental, government appointed, quasi-governmental or regulatory authority, reporting entity or agency, domestic,
foreign or supranational.



 


		(e)	“Law” means any applicable foreign, federal,
state or local law (including common law), statute, treaty, rule, directive, regulation, ordinances and similar provisions having the
force or effect of law or an Order of any Governmental Entity.



 


		(f)	“Liabilities” means liabilities, obligations
or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured, fixed or unfixed, known or unknown,
asserted or un asserted, choate or inchoate, liquidated or unliquidated, secured or unsecured, absolute, contingent or otherwise, including
any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost or expense.



 


		(g)	“Lien” means, with respect to any property or
asset, any lien, security interest, mortgage, pledge, charge, claim, lease, agreement, right of first refusal, option, limitation on
transfer or use or assignment or licensing, restrictive easement, charge or any other restriction of any kind, and any conditional sale
or voting agreement or proxy, and including any restriction on the ownership, use, voting, transfer, possession, receipt of income or
other exercise of any attributes of ownership, in respect of such property or asset, and any agreement to give any of the foregoing.



 


		(h)	“Losses” means any losses, damages, deficiencies,
Liabilities, assessments, fines, penalties, judgments, actions, claims, costs, disbursements, fees, expenses or settlements of any kind
or nature, including legal, accounting and other professional fees and expenses.



 


		(i)	“Material Adverse Effect” means (i) a material
adverse effect on the legality, validity or enforceability of this Agreement or the Registration Rights Agreement, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company, or (iii) a material
adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement
or the Registration Rights Agreement.



 


		(j)	“Order” means any judgment, writ, decree, determination,
award, compliance agreement, settlement agreement, injunction, ruling, charge, judicial or administrative order, determination or other
restriction of any Governmental Entity or arbitrator.



 


		(k)	“Person” means a natural person, a corporation,
a limited liability company, a partnership (general or limited), an association, a trust or any other entity or organization, including
a government or political subdivision or any agency or instrumentality thereof.



 






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		(l)	“Principal Market” means the Nasdaq Capital Market.



 


		(m)	“Registration Statement” shall have the meaning
assigned to such term in the Registration Rights Agreement.



 


		(n)	“Securities Act” means the United States Securities
Act of 1933, as amended, and the rules and regulation promulgated thereunder.



 


		(o)	“Transactions” means the purchase and sale of
the Shares and the other transactions contemplated under this Agreement and the Registration Rights Agreement.



 


Section 1.02 Interpretive
Provisions. Unless the express context otherwise requires, the words “hereof,” “herein,” and
“hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not
to any particular provision of this Agreement; terms defined in the singular shall have a comparable meaning when used in the
plural, and vice versa; the terms “Dollars” and “$” mean United States Dollars, unless otherwise specified
herein; references herein to a specific Section, Subsection, Recital or Exhibit shall refer, respectively, to Sections,
Subsections, Recitals or Exhibits of this Agreement; wherever the word “include,” “includes,”
“included” or “including” is used in this Agreement, it shall be deemed to be followed by the words
“without limitation”; references herein to any gender shall include each other gender; references herein to any Person
shall include such Person’s heirs, executors, personal representatives, attorneys, administrators, successors and assigns; provided, however,
that nothing contained in this Section 1.02 is intended to authorize any assignment or transfer not otherwise permitted by this
Agreement; references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;
references herein to any, accord, contract or agreement (including this Agreement) mean such, accord, contract or agreement as
amended, supplemented or modified from time-to-time in accordance with the terms thereof; with respect to the determination of any
period of time, the word “from” means “from and including” and the words “to” and
“until” each means “to but excluding”; references herein to any Law or any license mean such Law or license
as amended, modified, codified, reenacted, supplemented or superseded in whole or in part, and in effect from time-to-time or
otherwise amended; and references herein to any Law shall be deemed also to refer to all rules and regulations promulgated
thereunder, which are applicable or could be deemed applicable.


 


Article II.
Purchase and Sale


 


Section 2.01
Purchase and Sale.


 


		(a)	First Tranche Closing. In accordance with the terms
and subject to the satisfaction (or where legally permissible, the waiver) of the conditions set forth in Section 2.05 of this Agreement,
at the First Tranche Closing (as defined herein), the Company shall sell, issue, convey and irrevocably deliver to Buyer, and Buyer shall
purchase accept and acquire from the Company ___________________ (_______________) shares, subject to adjustment as provided in
this Agreement (the “First Tranche Purchase Shares”), free and clear of all Liens, fully paid and non-assessable.



 


		(b)	Second Tranche Closing. In accordance with the terms
and subject to the satisfaction (or where legally permissible, the waiver) of the conditions set forth in Section 2.06 of this Agreement,
at the Second Tranche Closing (as defined herein), the Company shall sell, issue, convey and irrevocably deliver to Buyer, and Buyer
shall purchase accept and acquire from the Company _____________________ (________________) Shares, subject to adjustment as provided
in this Agreement (the “Second Tranche Purchase Shares”), free and clear of all Liens, fully paid and non-assessable.



 




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Section 2.02 Purchase Price.
The total purchase price for the First Tranche Purchase Shares shall be ____________________ United States Dollars ($__________)
(the “First Tranche Purchase Price”), for a per share purchase price of $3.00, subject to adjustment as provided in this
Agreement (the “Per Share Price”). The total purchase price for the Second Tranche Purchase Shares shall be _____________________
United States Dollars ($__________) (the “Second Tranche Purchase Price”), for the Per Share Price in this Agreement.


 


Section 2.03
Issuance of Shares Against Payment Therefor at Closing. 


 


		(a)	First Tranche Closing. At the First Tranche Closing,
the Buyer shall deliver the First Tranche Purchase Price to the Company via wire transfer or “Automated Clearing House” payment
(“ACH”) to an account as designated by the Company. At the First Tranche Closing, the Company shall deliver irrevocable instructions
to its transfer agent and take all such other actions necessary to cause its transfer agent to issue and deliver to the Buyer, within
two (2) Business Days after the First Tranche Closing, a direct registration book entry statement (a “DRS Statement”) reflecting
the First Tranche Purchase Shares purchased by the Buyer at the First Tranche Closing, which DRS Statement (and any subsequent DRS Statement
or stock certificate evidencing First Tranche Purchase Shares that may be issued subsequent to the First Tranche Closing) shall, except
as otherwise provided in Section 5.02 hereof, include the restrictive legend set forth in Section 4.04(j) noting that the First Tranche
Purchase Shares are subject to restrictions on transfer thereof under the Securities Act, and a stop transfer order shall be maintained
against the transfer of such First Tranche Purchase Shares.



 


		(b)	Second Tranche Closing. At the Second Tranche Closing,
the Buyer shall deliver the Second Tranche Purchase Price to the Company via wire transfer or ACH payment to an account as designated
by the Company. At the Second Tranche Closing, in accordance with the instructions of the Buyer, the Company shall deliver irrevocable
instructions to its transfer agent and take all such other actions necessary to cause its transfer agent to (i) issue and deliver to
the Buyer, within two (2) Business Days after the Second Tranche Closing, a DRS Statement reflecting the Second Tranche Purchase Shares
purchased by the Buyer at the Second Tranche Closing, which DRS Statement shall not bear any restrictive or other legends and shall be
freely tradable and transferable and without restriction on transfer or (ii) credit the Buyer’s or its designee’s account
at DTC through its Deposit/Withdrawal at Custodian (DWAC) system, within two (2) Business Days after the Second Tranche Closing, with
a number of shares of Common Stock equal to the number of Second Tranche Purchase Shares to be purchased by the Buyer at the Second Tranche
Closing, which shall not bear any restrictive or other legends and shall be freely tradable and transferable and without restriction
on transfer. The First Tranche Closing and the Second Tranche Closing are each sometimes referred to in this Agreement as a “Closing”
and together sometimes referred to in this Agreement as the “Closings.”



 






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Section 2.04 Closings.


 


		(a)	First Tranche Closing. This Agreement shall become
effective and binding upon the execution and delivery of counterpart signature pages of this Agreement and the Registration Rights Agreement
executed by each of the Parties hereto in accordance with Section 6.13 hereof on or prior to the First Tranche Closing Date. The payment
of the First Tranche Purchase Price for, against delivery of, the First Tranche Purchase Shares as contemplated by Sections 2.01(a) and
2.03(a) hereof, together with the delivery and exchange of all other documents, instruments and writings required to be delivered by
the Parties in connection therewith as provided in Section 2.05 hereof (the “First Tranche Closing”), shall take place on
the first (1st) Business Day (which may be the date hereof) on which each of the conditions precedent to the First Tranche
Closing set forth in Section 2.05 below are satisfied (or where legally permissible, waived) (the date on which the First Tranche Closing
occurs, the “First Tranche Closing Date”).



 


		(b)	Second Tranche Closing. The payment of the Second
Tranche Purchase Price for, against delivery of, the Second Tranche Purchase Shares as contemplated by Sections 2.01(b) and 2.03(b) hereof,
together with the delivery and exchange of all other documents, instruments and writings required to be delivered by the Parties in connection
therewith as provided in Section 2.06 hereof (the “Second Tranche Closing”), shall take place on the second (2nd)
Business Day immediately following the effective date of the Initial Registration Statement (as defined in the Registration Rights Agreement)
filed by the Company pursuant to the Registration Rights Agreement (the date on which the Second Tranche Closing occurs, the “Second
Tranche Closing Date”), provided that each of the conditions precedent to the Second Tranche Closing set forth in Section 2.06
below have been satisfied at or prior to the Second Tranche Closing as provided in Section 2.06. The First Tranche Closing Date and the
Second Tranche Closing Date are each sometimes referred to in this Agreement as a “Closing Date.”



 


Section 2.05
First Tranche Closing Conditions.


 


		(a)	Conditions of the Company to the First Tranche Closing.
The obligation of the Company to sell and issue the First Tranche Purchase Shares to the Buyer at the First Tranche Closing is subject
to the fulfillment, to the Company’s reasonable satisfaction, on or prior to the First Tranche Closing Date, of each of the following
conditions:



 


(i) Representations
and Warranties. The representations and warranties of the Buyer contained in this Agreement (x) that are not qualified by “materiality”
shall have been true and correct in all material respects when made and shall be true and correct in all material respects as of the
First Tranche Closing Date with the same force and effect as if made on such dates, except to the extent such representations and warranties
are as of another date, in which case, such representations and warranties shall be true and correct in all material respects as of such
other date and (y) that are qualified by “materiality” shall have been true and correct when made and shall be true
and correct as of the First Tranche Closing Date with the same force and effect as if made on such dates, except to the extent such representations
and warranties are as of another date, in which case, such representations and warranties shall be true and correct as of such other
date.


 




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(ii)
 Buyer’s Execution and Delivery of Agreements. The Buyer shall have duly executed and delivered counterpart signature
pages of this Agreement and the Registration Rights Agreement in accordance with Sections 2.04(a) and 6.13 hereof on or prior to the First
Tranche Closing Date.


 


(iii)
No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated,
threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or which would
materially modify or delay any of the transactions contemplated by the Transaction Documents.


 


		(b)	Conditions to the Buyer to the First Tranche Closing.
The obligation of the Buyer to purchase the First Tranche Purchase Shares at the First Tranche Closing is subject to the satisfaction,
or (where legally permissible) the waiver by the Buyer, on or prior to the First Tranche Closing Date, of each of the following conditions:



 


(i)   Representations and Warranties. The representations and warranties of the Company contained in this Agreement (x) that are
not qualified by “materiality” or “Material Adverse Effect” shall have been true and correct in all material respects
when made and shall be true and correct in all material respects as of the First Tranche Closing Date with the same force and effect as
if made on such dates, except to the extent such representations and warranties are as of another date, in which case, such representations
and warranties shall be true and correct in all material respects as of such other date and (y) that are qualified by “materiality”
or “Material Adverse Effect” shall have been true and correct when made and shall be true and correct as of the First Tranche
Closing Date with the same force and effect as if made on such dates, except to the extent such representations and warranties are as
of another date, in which case, such representations and warranties shall be true and correct as of such other date.


 


(ii)
Performance of the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied with
by the Company on or prior to the First Tranche Closing Date.


 


(iii)
Company’s Execution and Delivery of Agreements. The Company shall have duly executed and delivered counterpart signature
pages of this Agreement and the Registration Rights Agreement in accordance with Sections 2.04(a) and 6.13 hereof on or prior to the First
Tranche Closing Date.


 


(iv)  No
Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been suspended by
the Commission, the Principal Market or the FINRA (except for any suspension of trading of less than three (3) days, which
suspension shall be terminated prior to the First Tranche Closing Date), the Company shall not have received any final and
non-appealable notice that the listing or quotation of the Common Stock on the Principal Market shall be terminated on a date
certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other U.S. national securities exchange),
trading in securities generally as reported on the Principal Market shall not have been suspended or limited, nor shall a banking
moratorium have been declared either by the U.S. or New York State authorities (except for any suspension, limitation or moratorium
which shall be terminated prior to the First Tranche Closing Notice Date), there shall not have been imposed any suspension of
electronic trading or settlement services by the Depository Trust Company (“DTC”) with respect to the Common Stock that
is continuing, and the Company shall not have received any notice from DTC to the effect that a suspension of electronic trading or
settlement services by DTC with respect to the Common Stock is being imposed or is contemplated (unless, prior to such suspension,
DTC shall have notified the Company in writing that DTC has determined not to impose any such suspension).


 






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(v)
Compliance with Laws. The Company shall have complied with all applicable federal, state and local governmental laws, rules,
regulations and ordinances in connection with the execution, delivery and performance of this Agreement and the Registration Rights Agreement
and the consummation of the Transactions, including, without limitation, the Company shall have obtained all permits and qualifications
required by any applicable state securities or “Blue Sky” laws for the offer and sale of the Shares by the Company to the
Buyer).


 


(vi) No
Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or which would materially
modify or delay any of the Transactions.


 


(vii) No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority shall have
been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced or threatened,
against the Company, or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the Transactions,
or seeking material damages in connection with the Transactions.


 


(viii)
Listing of First Tranche Purchase Shares. A listing of additional shares application shall have been filed with the Principal
Market with respect to the issuance of the First Tranche Purchase Shares and Second Tranche Purchase Shares to be issued and sold to the
Buyer at the First Tranche Closing and Second Tranche Closing at or prior to the First Tranche Closing.


 


(ix) Delivery
of Irrevocable Transfer Agent Instructions. At the First Tranche Closing, the Company shall have delivered irrevocable instructions
to its transfer agent to issue and deliver to the Buyer, within two (2) Business Days after the First Tranche Closing, one or more certificates
or DRS Statements reflecting the First Tranche Purchase Shares purchased by the Buyer at the First Tranche Closing.


 


(x)
No Material Adverse Effect. No condition, occurrence, state of facts or event constituting a Material Adverse Effect shall
have occurred and be continuing.


 


(xi)  Current
Public Information. All reports, schedules, registrations, forms, statements, information and other documents required to have
been filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including all material
required to have been filed pursuant to Section 13(a) or 15(d) of the Exchange Act, shall have been filed with the Commission under
the Exchange Act.


 






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Section 2.06
Second Tranche Closing Conditions.


 


		(a)	Conditions of the Company to the Second Tranche Closing.
The obligation of the Company to sell and issue the Second Tranche Purchase Shares to the Buyer at the Second Tranche Closing is subject
to the fulfillment, to the Company’s reasonable satisfaction, on or prior to the Second Tranche Closing Date, of each of the following
conditions:



 


(i)   Representations and Warranties. The representations and warranties of the Buyer contained in this Agreement (x) that are
not qualified by “materiality” shall have been true and correct in all material respects when made and shall be true and correct
in all material respects as of the Second Tranche Closing Date with the same force and effect as if made on such dates, except to the
extent such representations and warranties are as of another date, in which case, such representations and warranties shall be true and
correct in all material respects as of such other date and (y) that are qualified by “materiality” shall have been true
and correct when made and shall be true and correct as of the Second Tranche Closing Date with the same force and effect as if made on
such dates, except to the extent such representations and warranties are as of another date, in which case, such representations and warranties
shall be true and correct as of such other date.


 


(ii)
No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated,
threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or which would
materially modify or delay any of the Transactions.


 


		(b)	Conditions of the Buyer to the Second Tranche Closing.
The obligation of the Buyer to purchase the Second Tranche Purchase Shares at the Second Tranche Closing is subject to the satisfaction,
on or prior to the Second Tranche Closing Date, of each of the following conditions:



 


(i) Representations
and Warranties. The representations and warranties of the Company contained in this Agreement (x) that are not qualified by “materiality”
or “Material Adverse Effect” shall have been true and correct in all material respects when made and shall be true and correct
in all material respects as of the Second Tranche Closing Date with the same force and effect as if made on such dates, except to the
extent such representations and warranties are as of another date, in which case, such representations and warranties shall be true and
correct in all material respects as of such other date and (y) that are qualified by “materiality” or “Material
Adverse Effect” shall have been true and correct when made and shall be true and correct as of the Second Tranche Closing Date
with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another date,
in which case, such representations and warranties shall be true and correct as of such other date.


 


(ii)
Performance of the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied with
by the Company on or prior to the Second Tranche Closing Date.


 




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(iii)
 Registration Statement Effective. The Initial Registration Statement (as defined in the Registration Rights Agreement)
registering the resale by the Buyer of all of the First Tranche Purchase Shares purchased by the Buyer at the First Tranche Closing and
all of the Second Tranche Purchase Shares to be purchased by the Buyer at the Second Tranche Closing pursuant to this Agreement shall
have been declared effective by the Commission under the Securities Act and shall remain effective as of the Second Tranche Closing Date.


 


(iv) No
Material Notices. None of the following events shall have occurred and be continuing: (a) receipt of any request by the Commission
or any other federal or state governmental authority for any additional information relating to the Registration Statement, the prospectus
included therein or any supplement to the prospectus, or for any amendment of or supplement to the Registration Statement, the prospectus
included therein, or any supplement to the prospectus; (b) the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of the prospectus
included therein or any supplement to the prospectus, or of the suspension of qualification or exemption from qualification of the Shares
for offering or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; or (c) the
occurrence of any event or the existence of any condition or state of facts, which makes any statement of a material fact made in the
Registration Statement, the Prospectus or any Prospectus Supplement untrue or which requires the making of any additions to or changes
to the statements then made in the Registration Statement, the prospectus included therein or any prospectus supplement thereto in order
to state a material fact required by the Securities Act to be stated therein or necessary in order to make the statements then made therein
(in the case of the prospectus or any prospectus supplement, in light of the circumstances under which they were made) not misleading,
or which requires an amendment to the Registration Statement or a supplement to the prospectus or any prospectus supplement to comply
with the Securities Act or any other law. The Company shall have no knowledge of any event that could reasonably be expected to have
the effect of causing the suspension of the effectiveness of the Registration Statement or the prohibition or suspension of the use of
the prospectus included therein or any prospectus supplement thereto in connection with the resale of the Shares by the Buyer.


 


(v) No
Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been suspended by
the Commission, the Principal Market or the FINRA (except for any suspension of trading of less than three (3) days, which
suspension shall be terminated prior to the Second Tranche Closing Date), the Company shall not have received any final and
non-appealable notice that the listing or quotation of the Common Stock on the Principal Market shall be terminated on a date
certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other U.S. national securities exchange),
trading in securities generally as reported on the Principal Market shall not have been suspended or limited, nor shall a banking
moratorium have been declared either by the U.S. or New York State authorities (except for any suspension, limitation or moratorium
which shall be terminated prior to the Second Tranche Closing Date), there shall not have been imposed any suspension of electronic
trading or settlement services by DTC with respect to the Common Stock that is continuing, and the Company shall not have received
any notice from DTC to the effect that a suspension of electronic trading or settlement services by DTC with respect to the Common
Stock is being imposed or is contemplated (unless, prior to such suspension, DTC shall have notified the Company in writing that DTC
has determined not to impose any such suspension).


 






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(vi) Compliance
with Laws. The Company shall have complied with all applicable federal, state and local governmental laws, rules, regulations and
ordinances in connection with the execution, delivery and performance of this Agreement and the Registration Rights Agreement and the
consummation of the Transactions, including, without limitation, the Company shall have obtained all permits and qualifications required
by any applicable state securities or “Blue Sky” laws for the offer and sale of the Shares by the Company to the Buyer and
the subsequent resale of the Shares by the Buyer (or shall have the availability of exemptions therefrom).


 


(vii) No
Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of, or which would materially
modify or delay any of, the Transactions.


 


(viii)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority
shall have been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced or threatened,
against the Company, or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions
contemplated by this Agreement and the Registration Rights Agreement, or seeking material damages in connection with the Transactions.


 


(ix)  Listing of Second Tranche Purchase Shares. The Principal Market shall not have objected to the issuance of the Second Tranche
Purchase Shares at or prior to the Second Tranche Closing.


 


(x)
Delivery of Irrevocable Transfer Agent Instructions. At the Second Tranche Closing, in accordance with the instructions
of the Buyer, the Company shall have delivered irrevocable instructions to its transfer agent to (i) issue and deliver to the Buyer, within
two (2) Business Days after the Second Tranche Closing, a DRS Statement reflecting the Second Tranche Purchase Shares purchased by the
Buyer at the Second Tranche Closing, which DRS Statement shall not bear any restrictive or other legends and shall be freely tradable
and transferable and without restriction on transfer or (ii) credit the Buyer’s or its designee’s account at DTC through its
Deposit/Withdrawal at Custodian (DWAC) system, within two (2) Business Days after the Second Tranche Closing, with a number of shares
of Common Stock equal to the number of Second Tranche Purchase Shares purchased by the Buyer at the Second Tranche Closing, which shall
not bear any restrictive or other legends and shall be freely tradable and transferable and without restriction on transfer.


 


(xi) No
Restrictive Legends. If requested by the Buyer in accordance with Section 5.02 hereof, the Company, in accordance with the
Buyer’s instructions, shall have caused its transfer agent to (i) issue and deliver to the Buyer, on or prior to the
applicable Legend Removal Date, one or more certificates or DRS Statements representing the First Tranche Purchase Shares, which are
free from all restrictive and other legends and are freely tradable and transferable and without restriction on resale or (ii)
credit the Buyer’s or its designee’s account at DTC through its Deposit/Withdrawal at Custodian (DWAC) system, on or
prior to the applicable Legend Removal Date, with a number of shares of Common Stock equal to the number of First Tranche Purchase
Shares represented by DRS Statements or certificates containing such restrictive and other legends, which are free from all
restrictive and other legends and are freely tradable and transferable and without restriction on resale.


 






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(xii) No Material Adverse Effect. No condition, occurrence, state of facts or event constituting a Material Adverse Effect shall
have occurred and be continuing.


 


(xiii)
Current Public Information. All reports, schedules, registrations, forms, statements, information and other documents required
to have been filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including all material
required to have been filed pursuant to Section 13(a) or 15(d) of the Exchange Act, shall have been filed with the Commission under the
Exchange Act.


 


Section 2.07 Exemption from
Registration. The Shares are being offered and sold by the Company to the Buyer pursuant to this Agreement in reliance upon the
exemption from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act (without
limiting any other such exemption which may apply to the transactions contemplated by this Agreement) and in reliance upon specific
exemptions from the registration or qualification requirements of applicable state securities laws.


 


Article III.
Representations and Warranties of the Company


 


The Company represents and
warrants to Buyer that the following representations and warranties contained in this Article III are true and correct as of the date
of this Agreement and as of each Closing Date:


 


Section 3.01
Authorization of Transactions. The Company is a Delaware corporation and has the requisite corporate power and authority
to execute and deliver this Agreement, the Registration Rights Agreement and to perform its obligations hereunder and thereunder. The
execution, delivery and performance by the Company of this Agreement, the Registration Rights Agreement and the consummation of the Transactions
have been duly and validly authorized by all requisite corporate action on the part of the Company and its representatives. Each of this
Agreement and the Registration Rights Agreement has been duly and validly executed and delivered by the Company and constitutes the valid
and legally binding obligation of the Company, enforceable against the Company in accordance with its terms and conditions, in its present
form or hereinafter amended, except to the extent enforcement may be limited by applicable bankruptcy, insolvency or other Laws affecting
the Agreement or the Registration Rights Agreement, the Transactions, or the enforcement of creditors’ rights or by the principles
governing the availability of equitable remedies.


 


Section 3.02
Governmental Approvals; Non-Contravention. 


 


		(a)	No consent, decree, Order, action or non-action of, filing
(of any kind), except one or more Registration Statements filed with the Commission pursuant to the Registration Rights Agreement, notification, declaration,
affidavit, registration, completion, or any action (in any respect) by any Governmental Entity or Person is necessary for the execution,
delivery or performance by the Company of this Agreement, except any filings that may be required by the rules and regulations of the
Securities and Exchange Commission (the “Commission”), the Principal Market and such filings as are required to be made under
applicable state securities laws.



 




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		(b)	The execution, delivery and performance by the Company of
this Agreement and the Registration Rights Agreement and the consummation by the Company of the Transactions, do not (i) violate or conflict
with any applicable Law or Order to which the Company or any of the Shares may be subject, (ii) constitute a violation or breach of,
be in conflict with, constitute or create (with or without due notice or lapse of time or both) a default (or give rise to any right
of termination, modification, cancellation or acceleration) of any obligation or right under any Contract to which the Company is a party
or to which the Company or any of the Shares are subject or (iii) result in the creation or imposition or application of any Lien upon
any of the rights, properties, obligations or assets of the Company or on any of the Shares, in
each case inclusive of or in violation of or in imposition of any such Lien, which would have or reasonably would be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of this Agreement or the Registration Rights Agreement,
(ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the
Company and its subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations under this Agreement and the Registration Rights Agreement.



 


Section 3.03 The
Shares. (a) The First Tranche Purchase Shares to be issued and sold to the Buyer at the First Tranche Closing under this
Agreement have been duly authorized by all necessary corporate action on the part of the Company and, when issued and sold at the
First Tranche Closing against payment therefor in accordance with this Agreement, shall be validly issued and outstanding, fully
paid and non-assessable and free from all Liens, and the Buyer shall be entitled to all rights accorded to a holder of Common Stock.
The Second Tranche Purchase Shares to be issued and sold to the Buyer at the Second Tranche Closing under this Agreement shall be
duly authorized at or prior to the Second Tranche Closing by all necessary corporate action on the part of the Company and, when
issued and sold at the Second Tranche Closing against payment therefor in accordance with this Agreement, shall be validly issued
and outstanding, fully paid and non-assessable and free from all Liens, and the Buyer shall be entitled to all rights accorded to a
holder of Common Stock.


 


Section 3.04 Reporting
Company Status. As of the date of this Agreement and as of each Closing Date, the Common Stock is registered pursuant to Section
12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Company has taken no action
designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the
Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration. As
of the date of this Agreement and as of each Closing Date, the Common Stock is listed and traded on the Principal Market, and the
Company has not received notice from the Principal Market to the effect that the Company is not in compliance with the listing or
maintenance requirements of the Principal Market. As of each Closing Date, the Company is in compliance with all such listing and
maintenance requirements. The Common Stock is eligible for participation in the DTC book entry system and has shares on deposit at
DTC for transferred electronically to third parties via DTC through its Deposit/Withdrawal at Custodian delivery system. The Company
has not received notice from DTC to the effect that a suspension of, or restriction on, accepting additional deposits of the Common
Stock, electronic trading or book-entry services by DTC with respect to the Common Stock is being imposed or is contemplated.


 






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Section 3.05 Commission
Documents. (a) The Company has timely filed (giving effect to permissible extensions in accordance with Rule 12b-25 under the
Exchange Act all reports, schedules, registrations, forms, statements, information and other documents filed with or furnished to
the Commission by the Company pursuant to the reporting requirements of the Exchange Act, including all material filed with or
furnished to the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, since December 31, 2020, including,
without limitation, the Annual Report on Form 10-K filed by the Company for its fiscal year ended December 31, 2020 (the “2020
Form 10-K”), for the twelve months preceding the date of this Agreement (the “Commission Documents”). The Company
has delivered or made available to the Buyer via EDGAR or otherwise true and complete copies of the Commission Documents filed with
or furnished to the Commission prior to the First Tranche Closing Date (including, without limitation, the 2020 Form 10-K). As of
its filing date, each Commission Document filed with or furnished to the Commission prior to the First Tranche Closing Date
(including, without limitation, the 2020 Form 10-K) complied in all material respects with the requirements of the Securities Act or
the Exchange Act, as applicable, and other federal, state and local laws, rules and regulations applicable to it, and, as of its
filing date (or, if amended or superseded by a filing prior to the First Tranche Closing Date, on the date of such amended or
superseded filing). The Company has delivered or made available to the Buyer via EDGAR or otherwise true and complete copies of all
comment letters and substantive correspondence received by the Company from the Commission relating to the Commission Documents
filed with or furnished to the Commission as of the First Tranche Closing Date, together with all written responses of the Company
thereto in the form such responses were filed via EDGAR. There are no outstanding or unresolved comments or undertakings in such
comment letters received by the Company from the Commission. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act.


 


Section 3.06 Financial
Statements. (a) The financial statements of the Company included or incorporated by reference in the Commission Documents,
together with the related notes and schedules, comply in all material respects with the requirements of the Securities Act and the
Exchange Act and fairly present the financial condition of the Company as of the dates indicated and the results of operations and
changes in cash flows for the periods therein specified in conformity with generally accepted accounting principles in the United
States (“GAAP”) consistently applied throughout the periods involved; all non-GAAP financial information included or
incorporated by reference in the Commission Documents complies with the requirements of Regulation G and Item 10 of Regulation S-K
under the Securities Act, to the extent applicable; and, except as disclosed in the Commission Documents, there are no material
off-balance sheet arrangements (as defined in Regulation S-K under the Act, Item 303(a)(4)(ii)) or any other relationships with
unconsolidated entities or other persons, that may have a material current or, to the Company’s knowledge, material future
effect on the Company’s financial condition, results of operations, liquidity, capital expenditures, capital resources or
significant components of revenue or expenses. No other financial statements or schedules are required to be included in the
Commission Documents.


 






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Section 3.07 Disclosure
Controls and Procedures. (a) Except as described in the Commission Documents, the Company maintains a system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that complies with the
requirements of the Exchange Act and that has been designed to ensure that information required to be disclosed by the Company in
reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information is
accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required
disclosure and such disclosure controls and procedures are effective in all material respects to perform the functions for which
they were established. The Company has carried out evaluations of the effectiveness of its disclosure controls and procedures as
required by Rule 13a-15 of the Exchange Act.


 


Section 3.08 Accountants.
(a) To the Company’s knowledge, Friedman LLP, which has expressed its opinion with respect to the consolidated financial
statements as of December 31, 2020 and 2019, and for each of the two years in the period ended December 31, 2020, is (x) an
independent public accounting firm within the meaning of the Securities Act, (y) a registered public accounting firm (as defined in
Section 2(a)(12) of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”)) and (z) not in violation of the auditor
independence requirements of the Sarbanes-Oxley Act.


 


Section 3.09 Sarbanes-Oxley
Act. (a) There is no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s
directors or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act
and the rules and regulations promulgated in connection therewith that are applicable to the Company or its directors or officers in
their capacities as directors or officers of the Company.


 


Section 3.10 No
Material Adverse Effect. (a) Except as otherwise disclosed in any Commission Documents, since the end of the Company’s
most recent audited fiscal year: (i) the Company has not experienced or suffered any Material Adverse Effect, and there exists no
current state of facts, condition or event which would have a Material Adverse Effect; (ii) there has not occurred any material
adverse change, or any development that would reasonably be expected to result in a prospective material adverse change, in the
condition, financial or otherwise, or in the earnings, business or operations of the Company from that set forth in the Commission
Documents, including, without limitation, to the Company’s knowledge, as a result of the recent outbreak of COVID-19, or as a
result of any measures intended to contain the outbreak of COVID-19 imposed by any federal, state, local or foreign government or
government agency in any country or region in which the Company, or any of its agents, consultants, advisors or vendors, has assets
or properties or conducts business, including, without limitation, any limitations, curtailments, suspensions or closures of
businesses, business offices or establishments, schools, properties and other public areas due to quarantines, curfews, travel
restrictions, workplace controls, “stay-at-home” orders, social distancing requirements or guidelines or other public
gathering restrictions or limitations; (iii) the Company has not incurred any material liability or obligation, direct or
contingent, nor entered into any material transaction; (iv) the Company has not purchased any of its outstanding capital stock,
nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock other than ordinary and customary
dividends; and (v) there has not been any material change in the capital stock, short-term debt or long-term debt of the
Company.


 






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Section 3.11 No
Undisclosed Liabilities. (a) The Company does not have any liabilities, obligations, claims or losses (whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be required to be disclosed on a balance
sheet of the Company (including the notes thereto) in conformity with GAAP and are not disclosed in the Commission Documents, other
than those incurred in the ordinary course of the Company’s businesses since March 30, 2021 and which, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect.


 


Section 3.12
No Undisclosed Events or Circumstances. No event or circumstance has occurred or information exists with respect to the
Company or its business, properties, liabilities, operations (including results thereof) or conditions (financial or otherwise), which,
under applicable law, rule or regulation, requires public disclosure or announcement by the Company at or before the First Tranche Closing
but which has not been so publicly announced or disclosed, except for events or circumstances which, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.


 


Section 3.13
Indebtedness; Solvency. The Company’s Quarterly Report on Form 10-Q for its fiscal quarter ended March 30, 2021 sets
forth, as of March 30, 2021, all outstanding secured and unsecured Indebtedness of the Company, or for which the Company has commitments
through such date. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or
amounts owed in excess of $100,000 (other than trade accounts payable incurred in the ordinary course of business and loans between the
Company and any Subsidiary), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others in
excess of $100,000, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (c) the present value of any lease payments in excess of $100,000 due under leases required to be capitalized in accordance with GAAP.
There is no existing or continuing default or event of default in respect of any Indebtedness of the Company. The Company has not taken
any steps, and does not currently expect to take any steps, to seek protection pursuant to Title 11 of the United States Code or any similar
federal or state bankruptcy law or law for the relief of debtors, nor does the Company have any knowledge that its creditors intend to
initiate involuntary bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under Title 11
of the United States Code or any other federal or state bankruptcy law or any law for the relief of debtors. The Company is financially
solvent and is generally able to pay its debts as they become due.


 


Section 3.14
Actions Pending. There are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened
to which the Company is a party or to which any of the properties of the Company is subject (i) other than proceedings accurately
described in all material respects in the Commission Documents and proceedings that, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect, or on the power or ability of the Company to perform its obligations under this Agreement
and the Registration Rights Agreement or to consummate the Transactions or (ii) that are required to be described in the Commission
Documents and are not so described; and there are no statutes, regulations, contracts or other documents that are required to be described
in the Commission Documents or to be filed as exhibits to the Commission Documents that are not described or filed as required.


 






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Section 3.15 Compliance with
Law; Compliance with Listing Standards. The business of the Company has been and is presently being conducted in compliance with
all applicable federal, state, local and foreign governmental laws, rules, regulations and ordinances, except as set forth in the Commission
Documents and except for such non-compliance which, individually or in the aggregate, would not have a Material Adverse Effect. The Company
is not in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company, and the
Company will not conduct its business in violation of any of the foregoing, except in all cases for any such violations which could not,
individually or in the aggregate, have a Material Adverse Effect. The Company has not received any notice of any continuing failure to
maintain requirements for continued listing or quotation of its Common Stock on the Principal Market or in violation of any of the rules,
regulations or requirements of the Principal Market.


 


Section 3.16
Investment Company Act. The Company is not, and as a result of the consummation of the Transactions and the application
of the proceeds from the sale of the Shares as will be set forth in the prospectus included in any Registration Statement (and any post-effective
amendment thereto) filed pursuant to the Registration Rights Agreement the Company will not be an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.


 


Section 3.17
Exemption from Registration; No General Solicitation or Advertising; No Integrated Offering. Subject to, and in reliance
on, the representations, warranties and covenants made herein by the Buyer in Article IV hereof, the offer and sale of the Shares by the
Company to the Buyer in accordance with the terms and conditions of this Agreement is exempt from the registration requirements of the
Securities Act pursuant to Section 4(a)(2) of the Securities Act. Neither the Company, nor any of its Affiliates, nor any Person acting
on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated
under the Securities Act) in connection with the offer or sale of the Shares. None of the Company or any of its Affiliates, nor any Person
acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would require registration of the issuance of any of the Shares under the Securities Act, whether through integration
with prior offerings or otherwise, or cause this offering of the Shares to require approval of stockholders of the Company under any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of the Principal Market. None of the Company,
its Subsidiaries, their Affiliates nor any Person acting on their behalf will take any action or steps referred to in the preceding sentence
that would require registration of the issuance of any of the Shares under the Securities Act or cause the offering of any of the Shares
to be integrated with other offerings.


 


Section 3.18 Securities
Act; Blue Sky Laws. The Company has complied and shall comply with all applicable federal and state securities laws in
connection with the offer, issuance and sale of the Shares hereunder, including, without limitation, the applicable requirements of
the Securities Act. The Company shall take such action as is reasonably necessary in order to obtain an exemption for, or to,
qualify the Shares for sale to the Buyer pursuant to this Agreement under applicable state securities or “Blue Sky” laws
(or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer. Each
Registration Statement, upon filing with the Commission and at the time it is declared effective by the Commission, shall satisfy
all of the requirements of the Securities Act to register the resale of the Registrable Securities included therein by the Buyer in
accordance with the Registration Rights Agreement on a delayed or continuous basis under Rule 415 under the Securities Act at
then-prevailing market prices, and not fixed prices. The Company is not, and has not previously been at any time, an issuer
identified in, or subject to, Rule 144(i) under the Securities Act.


 






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Section 3.19
No Manipulation of Price. Neither the Company nor any of its officers, directors or Affiliates has, and, to the knowledge
of the Company, no Person acting on their behalf has, (i) taken, directly or indirectly, any action designed or intended to cause or to
result in the stabilization or manipulation of the price of any security of the Company, or which caused or resulted in, or which would
in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price of any security of the Company,
in each case to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting
purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any
other securities of the Company. Neither the Company nor any of its officers, directors or Affiliates will during the term of this Agreement,
and, to the knowledge of the Company, no Person acting on their behalf will during the term of this Agreement, take any of the actions
referred to in the immediately preceding sentence.


 


Section 3.20
Arm’s Length Status of Buyer. The Company acknowledges and agrees that the Buyer is acting solely in the capacity
of an arm’s-length purchaser with respect to this Agreement, the Registration Rights Agreement and the Transactions. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to this Agreement, the Registration Rights Agreement and the Transactions, and any advice given by the Buyer or any of its representatives
or agents in connection therewith is merely incidental to the Buyer’s acquisition of the Shares. The Company further represents
to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the
Transactions contemplated thereby by the Company and its representatives. The Company acknowledges and agrees that the Buyer has not made
and does not make any representations or warranties with respect to the Transactions, other than those made in Article IV.


 


Article IV.
Representations and Warranties of the Buyer


 


Buyer represents and warrants
to the Company that the following statements contained in this Article IV are true and correct as of the date of this Agreement and as
of each Closing Date:


 


Section 4.01
Authorization of Transactions. Buyer is a corporation, duly organized and in good standing under the laws of the State of
Delaware and has the requisite power and capacity to execute and deliver this Agreement and the Registration Rights Agreement and to perform
its obligations hereunder and thereunder. The execution, delivery and performance by Buyer of this Agreement and the Registration Rights
Agreement and the consummation of the Transactions have been duly and validly authorized by all requisite action on the part of Buyer.
Each of this Agreement and the Registration Rights Agreement has been duly and validly executed and delivered by Buyer and constitutes
the valid and legally binding obligation of Buyer, enforceable against Buyer in accordance with its terms and conditions, except to the
extent enforcement thereof may be limited by applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’
rights or by the principles governing the availability of equitable remedies.


 






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Section 4.02
Governmental Approvals; Non-contravention.


 





		(a)	No consent, Order, action or non-action of, or filing, notification,
declaration or registration with, any Governmental Entity is necessary for the execution, delivery or performance by Buyer of this Agreement
and the Registration Rights Agreement.



 


		(b)	The execution, delivery and performance by Buyer of this
Agreement and the Registration Rights Agreement and the consummation by Buyer of the Transactions do not violate any Laws or Orders to
which Buyer is subject or any of the organizational documents of Buyer.



 


Section 4.03 No
Consent, Violation or Conflict. The execution and delivery of this Agreement and the Registration Rights Agreement by Buyer, the
consummation by Buyer of the Transactions, and compliance by the Buyer with the provisions hereof: (a) do not and will not violate
or, if applicable, conflict with any provision of Law, or any provision of Buyer’s certificate of incorporation or bylaws; and
(b) do not and will not, with or without the passage of time or the giving of notice, result in the breach of, cause the
acceleration of performance or constitute a default or require any consent under, any material instrument or agreement to which
Buyer is a party or by which Buyer or its properties may be bound or affected, other than instruments or agreements as to which
consent shall have been obtained at or prior to the Closing Date or any breaches or defaults which would not affect the
Buyer’s ability to consummate the transactions contemplated thereby.


 


Section 4.04
Investment Representations.


 


		(a)	Buyer understands and agrees that the consummation of this
Agreement including the delivery of the Shares to Buyer as contemplated hereby constitutes the offer and sale of securities under the
Securities Act and applicable state statutes and that the Shares are being acquired for Buyer’s own account and not with a present
view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities
Act.



 


		(b)	Buyer is an “accredited investor” as that term
is defined in Regulation D Rule 501(a) under the Securities Act (an “Accredited Investor”).



 


		(c)	Buyer either alone or together with its representatives and/or
advisors, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits
and risks of the prospective investment in the Shares, and has evaluated the merits and risks of the proposed investment. Buyer is able
to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.



 


		(d)	Buyer understands that the Shares are being offered and sold
to Buyer in reliance upon specific exemptions from the registration requirements of the Securities Act and state securities laws and
that the Company is relying upon the truth and accuracy of, and Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of Buyer to acquire the Shares.



 


		(e)	Buyer and its advisors, if any, have been furnished with
all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Shares
which have been requested by Buyer or its advisors. Buyer and its advisors, if any, have been afforded the opportunity to ask questions
of the Company. Buyer is aware that an investment in the Shares involves a number of very significant risks and has carefully researched
and reviewed and understands the risks of, and other considerations relating to the purchase of the Shares.



 




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		(f)	Buyer has adequate means of providing for Buyer’s current
financial needs and foreseeable contingencies and has no need for liquidity of its investment in the Shares for an indefinite period
of time, and after purchasing the Shares, Buyer will be able to provide for any foreseeable current needs and possible personal contingencies.
Buyer must bear and acknowledges the substantial economic risks of the investment in the Shares including the risk of illiquidity and
is able to afford the complete loss of its investment in the Shares.



 


		(g)	Buyer understands that no United States federal or state
agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Shares.



 


		(h)	Buyer understands that except as otherwise set forth herein:
(i) the Shares have not been and are not being registered under the Securities Act or any state or foreign securities laws, and may not
be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, or (B) Buyer shall have delivered to
the Company an opinion of counsel, in a form generally acceptable to the Company, to the effect that such securities to be sold, assigned
or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements; (ii) any sale of such
securities made in reliance on Rule 144 under the Securities Act (or a successor rule thereto) (“Rule 144”) may
be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such securities under
circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term
is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations
of the Commission thereunder; and (iii) other than as set forth in this Agreement and the Registration Rights Agreement, neither the
Company nor any other person is under any obligation to register such securities under the Securities Act or any state securities laws
or to comply with the terms and conditions of any exemption thereunder. There can be no assurance that there will be any market or resale
for the Shares, nor can there be any assurance that the Shares will be freely transferable at any time in the foreseeable future.



 


		(i)	Buyer is not purchasing the Shares as a result of any “General
Solicitation” (as defined in Regulation D) including, but not limited to, any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or, to the knowledge of such Buyer, any other general solicitation or general advertisement.



 




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		(j)	Buyer understands that, except as set forth in Section 5.02
of this Agreement, the certificates or other instruments representing the Shares shall bear a restrictive legend in substantially the
following form (and a stop transfer order may be placed against transfer of such stock certificates):


 


THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES
MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION
UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN
OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING
THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.


 


Buyer acknowledges and understands
that the registration statement (No. 333-256771) has been withdrawn) and the public offering contemplated by such registration statement
has been abandoned. Buyer did not become interested in investing in the Company by means of the registration statement and became interested
in investing in the Company due to its substantive pre-existing relationship with the Company.


 


		(k)	Buyer is not a director or executive officer of the Company,
a beneficial owner of ten percent (10%) or more of the Company’s outstanding voting equity securities, calculated on the basis
of voting power, nor a promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity
at the time of sale of the Shares and is not subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2)
or (d)(3).



 


Section 4.05
Brokers. Buyer has not engaged any investment banker, finder, broker or sales agent or any other Person in connection with
the origin, negotiation, execution, delivery or performance of this Agreement or the Transactions.


 






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Article V.
Indemnification; Additional Covenants


 


Section 5.01 Indemnification.
In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the Shares hereunder and in addition to
all of the Company’s other obligations under this Agreement and the Registration Rights Agreement, the Company shall defend, protect,
indemnify and hold harmless the Buyer and each holder of any Shares and all of their stockholders, partners, members, officers, directors,
employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses
in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any
Indemnitee as a result of, or arising out of, or relating to: (a) any misrepresentation or breach of any representation or warranty made
by the Company in this Agreement or the Registration Rights Agreement, (b) any breach of any covenant, agreement or obligation of the
Company contained in this Agreement or the Registration Rights Agreement or (c) any cause of action, suit or claim brought or made against
such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out
of or resulting from (i) the execution, delivery, performance or enforcement of this Agreement or the Registration Rights Agreement or
(ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance and sale
of the Shares to the Buyer pursuant to this Agreement; provided, however, that (x) the Company shall not be liable to any Indemnitee
under subsection (c) of this Section 5.01 to the extent, and only to the extent, that a court of competent jurisdiction shall have determined
by a final judgment (from which no further appeals are available) that such Indemnified Liabilities resulted directly and primarily from
any acts or failures to act undertaken or omitted to be taken by the Buyer through its bad faith or willful misconduct, (y) the forgoing
indemnity shall not apply to any Indemnified Liabilities to the extent, and only to the extent, that such Indemnified Liabilities resulted
directly and primarily from a breach of any of the Buyer’s representations, warranties, covenants or agreements contained in this
Agreement, and (z) the Company shall not be liable under this Section 5.01 for any settlement by an Indemnitee effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed. The Company shall reimburse any Indemnitee promptly upon
demand (with accompanying presentation of documentary evidence) for all legal and other costs and expenses reasonably incurred by such
Indemnitee in connection with: (i) any action, suit, claim or proceeding, whether at law or in equity, to enforce compliance by the Company
with any provision of this Agreement or the Registration Rights Agreement or (ii) any other any action, suit, claim or proceeding, whether
at law or in equity, with respect to which it is entitled to indemnification under this Section 5.01; provided that an Indemnitee shall
promptly reimburse the Company for all such legal and other costs and expenses to the extent a court of competent jurisdiction shall
have determined by a final judgment (from which no further appeals are available) that such Indemnitee was not entitled to such reimbursement.
An Indemnitee’s right to indemnification or other remedies based upon the representations, warranties, covenants and agreements
of the Company set forth in this Agreement or the Registration Rights Agreement shall not in any way be affected by any investigation
or knowledge of such Indemnitee. Such representations, warranties, covenants and agreements shall not be affected or deemed waived by
reason of the fact that an Indemnitee knew or should have known that any representation or warranty might be inaccurate or that the Company
failed to comply with any agreement or covenant. Any investigation by such Indemnitee shall be for its own protection only and shall
not affect or impair any right or remedy hereunder. To the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights
and obligations under this Section 5.01 shall be the same as those set forth in Section 5 of the Registration Rights Agreement. Notwithstanding
anything to the contrary in this Section 5.01, the Company shall not be obligated to pay an Indemnitee any sums otherwise due under this
Section 5.01 if the Company has already paid the Indemnitee such sums for the same Indemnified Liabilities under Section 5 of the Registration
Rights Agreement.


 






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Section 5.02 Legend Removal;
Delivery Failure. The Company shall use its best efforts to cause its transfer agent to remove the legend set forth and referred
to in Section 4.04(j) of this Agreement from the Shares and to issue a certificate without such legend to the holder of the Shares upon
which it is stamped, or to issue to such holder by electronic delivery at the applicable balance account at DTC, unless otherwise required
by state securities or “blue sky” laws, at such time as: (i) the resale of such Shares is registered under the Securities
Act under an effective registration statement, (ii) Buyer shall have delivered to the Company an opinion of counsel, in a form reasonably
acceptable to the Company, to the effect that such Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant
to an exemption from such registration requirements; or (iii) if such Shares are eligible to be sold under Rule 144, the Buyer provides
the Company with reasonable assurance in writing that the Shares are being sold, assigned or transferred pursuant to Rule 144 (which
shall not include an opinion of Buyer’s counsel). In furtherance of the foregoing, the Company agrees that, following the effective
date of the initial Registration Statement to be filed by the Company with the Commission pursuant to the Registration Rights Agreement,
or at such time as such legend is not required to be placed upon certificates representing the Shares as set forth in Section 4.04(h)
or this Section 5.02, the Company shall, no later than two (2) Business Days following the delivery by the Buyer to the Company or its
transfer agent of a certificate representing Shares issued with a restrictive legend (such second (2nd) Trading Day, the “Legend
Removal Date”), either: (A) issue and deliver (or cause to be issued and delivered) to the Buyer a certificate or DRS Statement
representing such Shares that is free from all restrictive and other legends or (B) cause its transfer agent to credit the Buyer’s
or its designee’s account at DTC through its Deposit/Withdrawal at Custodian (DWAC) system with a number of shares of Common Stock
equal to the number of Shares represented by the certificate so delivered by the Buyer. If the Company fails on or prior to the Legend
Removal Date to either (i) issue and deliver (or cause to be issued and delivered) to the Buyer a certificate or DRS Statement representing
the Shares that is free from all restrictive and other legends or (ii) cause its transfer agent to credit the balance account of the
Buyer or its designee at DTC through its Deposit/Withdrawal at Custodian (DWAC) system with a number of shares of Common Stock equal
to the number of the Shares represented by the certificate delivered by the Buyer pursuant hereto (a “Delivery Failure”),
and if on or after the Legend Removal Date the Buyer purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Buyer of shares of Common Stock that the Buyer anticipated receiving from the Company without
any restrictive legend, then the Company shall, within two (2) Business Days after the Buyer’s request, pay cash to the Buyer in
an amount equal to the Buyer’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased, at which point the Company’s obligation to deliver a certificate or credit the Buyer’s or its designee’s
account at DTC for such shares of Common Stock shall terminate and such shares shall be cancelled.


 


Section 5.03 Termination.
In the event that the First Tranche Closing shall not have occurred within ten (10) days after the date of this Agreement, then the
Buyer shall have the right to terminate its obligations under this Agreement at any time on or after the close of business on such
date without liability of the Buyer to any other Party; provided, however, the right to terminate its obligations under this
Agreement pursuant to this first sentence of Section 5.03 shall not be available to the Buyer if the failure of the First Tranche
Closing to have occurred by such date is the result of the Buyer’s breach of this Agreement. In the event the Initial
Registration Statement is not filed by the applicable Filing Deadline (as defined in the Registration Rights Agreement) therefor or
declared effective by the Commission by the applicable Effective Date (as defined in the Registration Rights Agreement) therefor, or
the Company is otherwise in breach or default in any material respect under any of the other provisions of this Agreement or the
Registration Rights Agreement, and, if such failure, breach or default is capable of being cured, such failure, breach or default is
not cured within ten (10) Business Days after notice of such failure, breach or default is delivered to the Company pursuant to
Section 6.01 hereof, then the Buyer shall have the right to terminate its obligations to purchase the Second Tranche Purchase Shares
under this Agreement at any time thereafter and prior to the Second Tranche Closing without liability of the Buyer to any other
Party; provided, however, the right to terminate its obligations under this Agreement pursuant to this second sentence of Section
5.03 shall not be available to the Buyer if the failure of the Registration Statement to be filed by the applicable Filing Deadline
or declared effective by the applicable Effective Date therefor is the result of the Buyer’s breach of this Agreement or the
Registration Rights Agreement. Nothing contained in this Section 5.03 shall be deemed to release any Party from any liability for
any breach by such party of the terms and provisions of this Agreement or the Registration Rights Agreement or to impair the right
of any Party to compel specific performance by any other Party of its obligations under this Agreement or the Registration Rights
Agreement.


 






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Section 5.04
Purchase Price Penalty. 


 


		(a)	From the First Tranche Closing Date until thirty (30) days
after the effective date of the Initial Registration Statement (as defined in the Registration Rights Agreement) filed pursuant to the
Registration Rights Agreement (the “Restricted Period”), if the Company issues or sells any shares of Common Stock less than
the Per Share Purchase Price (a “Share Dilutive Issuance”), except for Exempt Issuances, then the Company shall, within two
(2) business days after such Share Dilutive Issuance, pay to Buyer as a penalty an amount in cash equal to the number of Shares theretofore
purchased by Buyer hereunder multiplied by the difference between the greater of the price per share of Common Stock paid in the Share
Dilutive Issuance and the Floor Price. For purposes of this Agreement, the Floor Price shall be $2.48.



 


		(b)	For purposes of this Agreement, “Exempt Issuances”
means: (i) Company securities issued or issuable upon a stock split, stock dividend, or any subdivision of Company securities, (ii) Common
Stock issued or issuable pursuant to or in connection with the Common Stock Purchase Agreement, dated November 18, 2020, by and between
the Company and the Buyer, including any amendment thereto, or Common Stock or Common Stock Equivalents issued pursuant to or in connection
with any other agreement or arrangement between the Company and the Buyer at any time prior to or after the date of this Agreement, or
upon conversion, exercise or exchange of any Common Stock Equivalents held by the Buyer or any of its Affiliates at any time prior to
or after the date of this Agreement, (iii) Company securities issued or issuable as full or partial consideration in connection with
a strategic merger, acquisition, exchange, consolidation or purchase of substantially all of the securities or assets of a corporation
or other entity so long as such issuances are not for the purpose of raising capital and which holders of such securities or debt are
not at any time granted registration rights, (iv) the Company’s issuance of securities in connection with strategic license agreements
and other partnering arrangements so long as such issuances are not for the purpose of raising capital and which holders of such securities
or debt are not at any time granted registration rights, (v) the Company’s issuance of securities upon the exercise or exchange
of or conversion of any securities exercisable or exchangeable for or convertible into shares of Common Stock or other Common Stock Equivalents
issued and outstanding and on the terms in effect on the First Closing Date, and (vi) the Company’s issuance of Common Stock or
the issuances or grants of options to purchase Common Stock to employees, directors, and consultants, pursuant to plans that have been
approved by a majority of the stockholders and a
majority of the independent members of the board of directors of the Company or in existence as such plans are constituted on the date
of this Agreement. For purposes of this Agreement, “Common Stock Equivalents” means any securities of the Company which would
entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option,
warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock.



 




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		(c)	In each case of any penalty due hereunder as a result of
a Share Dilutive Issuance or otherwise, the Company, at its expense, will promptly (but in no event more than one (1) Business Day after
a Share Dilutive Issuance or other event requiring adjustment or readjustment in the Shares) cause its Chief Financial Officer or other
appropriate designee to compute such penalty in accordance with the terms hereof, and prepare and deliver to the Buyer in accordance
with Section 6.01 hereof a certificate setting forth such penalty and showing in detail the facts upon which such penalty is based, including
a statement of the price per share of the shares of Common Stock sold in the Dilutive Issuance and the cash payment to be received by
Buyer.



 


Section 5.05
Subsequent Issuances. From the date hereof until thirty (30) days after the effective date of the Initial Registration Statement,
neither the Company nor any Subsidiary shall issue or sell, enter into any agreement to issue or sell, or announce the issuance or sale
or proposed issuance or sale of any or Common Stock Equivalents nor shall the Company issue or sell, enter into any agreement to issue
or sell, or announce the issuance or sale or proposed issuance or sale of any shares of Common Stock, pursuant to which shares of Common
Stock may be acquired at a per share price less than the Floor Price, except for Exempt Issuances.


 


Section 5.06
Nasdaq Adjustments. In the event that the Nasdaq Capital Market (“Nasdaq”) shall have any objection to the terms
of this Agreement, the parties agree to adjust the terms of this Agreement necessary to comply with the requirements of Nasdaq.


 


Article VI.
Miscellaneous


 


Section 6.01
Notices. 


 


		(a)	Any notice or other communications required or permitted
hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier or registered
mail or certified mail, postage prepaid, addressed as follows:



 


If to the Company, to:


 


Adial Pharmaceuticals,
Inc.


Attn: William Stilley,
CEO


1180 Seminole Trail,
Suite 495


Charlottesville,
VA 22901


Email:


 


If to the Buyer, to:


  


____________________________


____________________________


____________________________


____________________________


____________________________


 






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		(b)	Any Party may change its address for notices hereunder upon
notice to each other Party in the manner for giving notices hereunder.



 


		(c)	Any notice hereunder shall be deemed to have been given:
(i) upon receipt, if personally delivered; (ii) on the day after dispatch, if sent by overnight courier; (iii) upon dispatch, if transmitted
by email with return receipt requested and received; and (iv) three (3) business days after mailing, if sent by registered or certified
mail.



 


Section 6.02
Attorneys’ Fees. In the event that any Party institutes any action or suit to enforce this Agreement or to secure
relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including
reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.


 


Section 6.03
Amendments and Waivers. No provision of this Agreement may be amended other than by a written instrument signed by both
Parties hereto. No provision of this Agreement may be waived other than in a written instrument signed by the Party against whom enforcement
of such waiver is sought; provided, however, that the failure of the Company to satisfy the conditions precedent to the Second Tranche
Closing set forth in Section 2.06(b) of this Agreement may not be waived by the Buyer. No failure or delay in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercises thereof or of any other right, power or privilege.


 


Section 6.04
No Third-Party Beneficiaries. Except as expressly provided in Article V, this Agreement is intended only for the benefit
of the Parties hereto and their respective successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.


 


Section 6.05
Expenses. Unless otherwise contemplated or stipulated by this Agreement, all costs and expenses incurred in connection with
this Agreement shall be paid by the Party incurring such cost or expense.


 


Section 6.06
Further Assurances. Following the First Tranche Closing, each Party shall execute and deliver such documents and other papers
and take such further action as may be reasonably required to carry out the provisions of this Agreement.


 


Section 6.07 Successors
and Assigns; Benefit. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Buyer (which may be granted or withheld in the sole discretion of the Buyer). The Buyer may assign some or
all of its rights hereunder in connection with any assignment or transfer of any of its Shares without the consent of the Company,
in which event such assignee or transferee (as the case may be) shall be deemed to be the Buyer hereunder with respect to such
assigned rights. Nothing in this Agreement, expressed or implied, shall confer on any Person other than the Parties, and their
respective successors and assigns, any rights, remedies, obligations, or Liabilities under or by reason of this Agreement.


 






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Section 6.08
Governing Law; Etc.


 


		(a)	This Agreement, and all matters based upon, arising out of
or relating in any way to the Transactions, including all disputes, claims or causes of action arising out of or relating to the Transactions
or this Agreement, as well as the interpretation, construction, performance and enforcement of this Agreement, shall be governed by the
laws of the State of New York, without regard to any jurisdiction’s conflict-of-laws principles.



 


		(b)	EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS Section 6.08(b).



 


		(c)	Each of the Parties acknowledge that each has had the opportunity
to consult with independent legal counsel in connection with the signing of the waiver in Section 6.08(b) selected by the respective
Party. Each of the Parties further acknowledge that each has read and understands the meaning of such waiver and grants such waiver knowingly,
voluntarily, without duress.



 


Section 6.09
Survival. The representations, warranties, covenants and agreements of the Company and the Buyer contained in this Agreement
shall survive the execution and delivery hereof until the termination of this Agreement; provided, however, that (i) the provisions of
Article III (Representations, Warranties of the Company), Article V (Indemnification; Additional Covenants) (excluding Sections 5.02,
5.05 and 5.05), and this Article VI (Miscellaneous) shall remain in full force and effect indefinitely notwithstanding such termination,
and, (ii) so long as the Buyer owns any Shares, the covenants and agreements of the Company contained in Section 5.02 (Legend Removal),
Section 5.04 (Penalty), and Section 5.05 (Subsequent Issuance) shall remain in full force and effect notwithstanding such termination.


 


Section 6.10 Severability.
If any provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the Transactions is not affected in any manner adverse to any Party. Upon such determination that any provision
is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to
affect the original intent of the Parties as closely as possible in an acceptable manner to the end that the Transactions are
fulfilled to the extent possible.


 


Section 6.11
Entire Agreement. This Agreement constitute the entire agreement between the Parties with respect to the subject matter
hereof and thereof and supersedes all prior agreements and understandings, both oral and written, between the Parties with respect to
the subject matter hereof and thereof.


 






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Section 6.12 Remedies
Cumulative; Specific Performance. (i) Each Party’s remedies provided in this Agreement, including, without limitation, the
Buyer’s remedies provided in Section 5.01, shall be cumulative and in addition to all other remedies available to such Party
under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief), no remedy of
such Party contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein
shall limit such Party’s right to pursue actual damages for any failure by the other Party to comply with the terms of this
Agreement. The Company and the Buyer acknowledge and agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that either Party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement by the other Party and to enforce specifically the terms and provisions hereof (without the necessity of showing
economic loss and without any bond or other security being required), this being in addition to any other remedy to which either
Party may be entitled by law or equity.


 


Section 6.13 Construction.
The table of contents and headings contained in this Agreement are for reference purposes only and will not affect in any way the
meaning or interpretation of this Agreement. In the event of a conflict between language or amounts contained in the body of this
Agreement and language or amounts contained in any Exhibits attached hereto, the language or amounts in the body of the Agreement
shall control. Any reference in this Agreement to gender shall include all genders, and words imparting the singular number only
shall include the plural and vice versa. The use of the terms “including” or “include” shall in all cases
herein mean “including, without limitation,” or “include, without limitation,” respectively. Reference to
any Person includes such Person’s predecessors, successors and assigns to the extent, in the case of successors and assigns,
such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a particular
capacity excludes such Person in any other capacity or individually. Reference to any agreement (including this Agreement), document
or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with
the terms thereof and, if applicable, the terms hereof. Reference to any Law means such Law as amended, modified, codified, replaced
or re-enacted, in whole or in part, including rules, regulations, enforcement procedures and any interpretations promulgated
thereunder. Each and every reference to share prices, shares of Common Stock (including, without limitation the First Tranche
Purchase Shares, Second Tranche Purchase Shares, and Shares) and any other numbers in this Agreement that relate to the Common Stock
(including, without limitation the First Tranche Purchase Shares, Second Tranche Purchase Shares, and Shares) shall be automatically
adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions that occur with
respect to the Common Stock after the date of this Agreement. Underscored references to Articles, Sections or Schedules shall refer
to those portions of this Agreement. The use of the terms “hereunder,” “hereof,” “hereto” and
words of similar import shall refer to this Agreement as a whole and not to any particular Article, Section or clause of or Exhibit,
Annex or Schedule to this Agreement.


 


Section 6.14
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which 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; provided
that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file, including any electronic signature
complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.


 


Section 6.15
Publicity. The Company shall afford the Buyer and its counsel with the opportunity to review and comment upon, shall consult
with the Buyer and its counsel on the form and substance of, and shall give due consideration to all such comments from the Buyer or its
counsel on, any press release, Commission filing or any other public disclosure by or on behalf of the Company relating to the Buyer,
its purchases of Shares hereunder or any aspect of this Agreement or the Registration Rights Agreement or the Transactions, not less than
twenty-four (24) hours prior to the issuance, filing or public disclosure thereof. The Buyer must be provided with a final version of
any such press release, Commission filing or other public disclosure at least twenty-four (24) hours prior to any release, filing or use
by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material
Adverse Effect.


 


[Signature Page Follows]


 




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IN WITNESS WHEREOF, the Parties
have caused this Agreement to be duly executed as of the date hereof.


 


	 	ADIAL PHARMACEUTICALS, INC.
	 	 	 
	 	By:	                              
	 	Name: 	William B. Stilley
	 	Title:	Chief Executive Officer
	 	 	 
	 	BUYER:
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 



 


Signature Page to Stock Purchase Agreement


 




     


     


    

 


EXHIBIT A


“Registration Rights Agreement”


 


 


 


 


[Please see Exhibit 10.2
to this Current Report on Form 8-K]


 


 


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