Document:

EXHIBIT 10.1

 

 

 

 

Stock Purchase Agreement

 

By and Between

 

Adial Pharmaceuticals, Inc.

 

and

 

[  ]

 

March 11, 2021

 

 

     

    

    

 

Stock
Purchase Agreement

 

This Stock Purchase
Agreement (together with all exhibits and schedules hereto, this “Agreement”) is entered into as of March 11, 2021,
by and between Adial Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and [ ], a Delaware corporation
(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.

 

    2

    

    

 

		(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.

 

    3

    

    

 

		(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.

 

    4

    

    

 

Section 2.02 Purchase
Price. The total purchase price for the First Tranche Purchase Shares shall be [ ] (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 [ ] (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.”

 

    5

    

    

 

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.

 

    6

    

    

 

(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).

 

    7

    

    

 

(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.

 

    8

    

    

 

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.

 

(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.

 

    9

    

    

 

(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).

 

    10

    

    

 

(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.

 

    11

    

    

 

(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.

 

(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.

 

    12

    

    

 

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.

 

		(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. 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.

 

    13

    

    

 

Section 3.05 Commission
Documents. 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, 2019, including, without limitation, the Annual Report on Form 10-K filed by the Company for its fiscal year ended
December 31, 2019 (the “2019 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 2019 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 2019 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. 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.

 

    14

    

    

 

Section 3.07 Disclosure
Controls and Procedures. 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.
To the Company’s knowledge, Friedman LLP, which has expressed its opinion with respect to the consolidated financial
statements as of December 31, 2019 and 2018, and for each of the two years in the period ended December 31, 2019 and is
expected to express its opinion with respect to the consolidated financial statements for the year 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. 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. 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.

 

    15

    

    

 

Section 3.11 No
Undisclosed Liabilities. 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 September 30, 2020 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 September 30, 2020 sets forth,
as of September 30, 2020, 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.

 

    16

    

    

 

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.

 

    17

    

    

 

Section 3.19 Brokers.
The Company has not engaged, or caused to be incurred any liability (as commonly understood as a financial liability) or
obligation to, 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.

 

Section 3.20 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 3.21 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.

 

    18

    

    

 

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.

 

    19

    

    

 

		(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.

 

		(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.

 

		(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):

 

    20

    

    

 

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.

 

		(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.

 

    21

    

    

 

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.

 

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.

 

    22

    

    

 

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 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.

 

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 $2.28.

 

		(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.

 

    23

    

    

 

		(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 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 Nasdaq comments.

 

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: wstilley@adialpharma.com

 

If to the Buyer, to:

[   ]

 

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

 

    24

    

    

 

		(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. Notwithstanding the foregoing, the Company shall
reimburse Keystone Capital Partners, LLC for up to $10,000 of its legal fees.

 

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.

 

    25

    

    

 

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.

 

    26

    

    

 

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 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 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]

 

    27

    

    

 

 

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

 

    28

    

    

 

EXHIBIT A

“Registration Rights Agreement”

 

See Exhibit 10.2 to the Current Report on Form 8-K filed on March 15, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

    

    

 

	Schedule of Buyers	 	Shares for First Tranche Purchase	 	 	Shares for Second Tranche Purchase	 
	Bespoke Growth Partners, Inc.	 	 	33,667	 	 	 	303,000	 
	Ivy Cottage Group, LLC	 	 	10,000	 	 	 	-	 
	James W. Newman Roth IRA	 	 	10,000	 	 	 	-	 
	Rountop Limited Partnership, LLP	 	 	10,000	 	 	 	-	 
	Keystone Capital Partners, LLC	 	 	33,334	 	 	 	300,000Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of March 11, 2021, by and among Adial Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), and [ ] (the “Purchaser”). This Agreement is
made pursuant to the Stock Purchase Agreement, dated as of the date hereof, by and among the Company and the Buyer (the “Purchase
Agreement”).

 

The Company and each Buyer hereby agrees
as follows:

 

1.        Definitions.

 

Capitalized terms
used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

“Effectiveness
Deadline” means, with respect to the Initial Registration Statement required to be filed hereunder, the 30th
calendar day following Filing Deadline (or, in the event of a “full review” by the Commission, the 60th
calendar day following the Filing Deadline) and with respect to any additional Registration Statements which may be required pursuant
to Section 2(c), the 30 calendar day following the date on which an additional Registration Statement is required to be filed hereunder
(or, in the event of a “full review” by the Commission, the 60th calendar day following the date such additional
Registration Statement is required to be filed hereunder); provided, however, that in the event the Company is notified
by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject to further
review and comments, the Effectiveness Deadline as to such Registration Statement shall be the fifth (5th) Trading Day
following the date on which the Company is so notified if such date precedes the dates otherwise required above; provided,
further, that if such Effectiveness Deadline falls on a day that is not a Trading Day, then the Effectiveness Deadline shall
be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Filing
Deadline” means, with respect to the Initial Registration Statement required hereunder, the 30th calendar
day following date upon which the Company files its Annual Report on Form 10-K with the SEC, and with respect to any additional
Registration Statements which may be required pursuant to Section 2(c), the earliest practical date on which the Company is permitted
by SEC Guidance to file such additional Registration Statement related to the Registrable Securities.

 

    1

     

    

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Proceeding(s)”
means any writ, injunction, decree, order, judgment, lawsuit, claim, action, arbitration, proceeding, investigation, summons, audit
or hearing (in each case, whether civil, criminal, administrative, investigative or informal) commenced, brought, conducted or
heard by or before, or otherwise involving, any governmental authority.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

“Registrable
Securities” means, as of any date of determination, (a) all shares of Common Stock issued pursuant to the Purchase Agreement,
and (b) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar
event with respect to such securities; provided, however, that the Holder has completed and delivered to the Company a Selling
Stockholder Questionnaire and that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall
not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for
so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission
under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective
Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities
become eligible for resale without volume or manner-of-sale restrictions pursuant to Rule 144 (assuming that such securities and
any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued
or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice
of counsel to the Company.

 

    2

     

    

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 2(c), including (in each case) the Prospectus, amendments and supplements to any
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Selling
Stockholder Questionnaire” means a questionnaire in the form attached as Annex B hereto, or such other form of
questionnaire as may reasonably be adopted by the Company from time to time.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

2.        Resale
Registration.

 

(a)       On
or prior to each Filing Deadline, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-1 (or Form
S-3, if available to register for resale the Registrable Securities, or such other form available to register for resale the Registrable
Securities) and shall contain substantially the “Plan of Distribution” attached hereto as Annex A. Subject
to the terms of this Agreement, the Company shall use its commercially reasonable efforts to cause a Registration Statement filed
under this Agreement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in
any event no later than the applicable Effectiveness Deadline, and shall use its commercially reasonable efforts to keep such Registration
Statement continuously effective under the Securities Act until all Registrable Securities covered by such Registration Statement
(i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant
to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under
Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable
to the Transfer Agent and the affected Holders (the “Effectiveness Period”). The Company shall promptly notify
the Holders of the effectiveness of a Registration Statement. The Company shall file a final Prospectus with the Commission as
required by Rule 424.

 

    3

     

    

 

(b)       
Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable
Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file
amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities
permitted to be registered by the Commission, on Form S-1 or such other form available to register for resale the Registrable Securities
as a secondary offering.

 

(c)       Notwithstanding
any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable
Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that
the Company used commercially reasonable efforts to advocate with the Commission for the registration of all or a greater portion
of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will be reduced first to reduce or eliminate any securities to be included
by any Person other than a Holder. In the event of a cutback hereunder, the Company shall give the Holder at least two (2) Trading
Days prior written notice along with the calculations as to such Holder’s allotment. In the event the Company amends the
Initial Registration Statement in accordance with the foregoing, the Company will use its commercially reasonable efforts to file
with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities
in general, one or more registration statements on Form S-1 or such other form available to register for resale those Registrable
Securities that were not registered for resale on the Initial Registration Statement, as amended.

 

(d)       Each
Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire within ten (10) Business Days following the
date of this Agreement. Each Holder further agrees that it shall not be entitled to be named as a selling security holder in the
Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has
returned to the Company a completed and signed Selling Stockholder Questionnaire. If a Holder of Registrable Securities returns
a Selling Stockholder Questionnaire after the deadline specified in this Section 2(d), the Company shall use its commercially reasonable
efforts to take such actions as are required to name such Holder as a selling security holder in the Registration Statement or
any pre-effective or post-effective amendment thereto and to include (to the extent not theretofore included) in the Registration
Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire; provided that the Company shall
not be required to file an additional Registration Statement solely for such shares. Each Holder acknowledges and agrees that the
information in the Selling Stockholder Questionnaire will be used and relied upon by the Company in the preparation of the Registration
Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

    4

     

    

 

3.        Registration
Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)       Not
less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to each Holder copies
of all such documents proposed to be filed, which documents will be subject to the reasonable review of such Holders, and (ii)
use its commercially reasonable efforts to cause its officers and directors, counsel and independent registered public accountants
to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct
a reasonable investigation within the meaning of the Securities Act. Notwithstanding the foregoing, the Company shall not be obligated
to provide the Holders advanced copies of any proposed universal shelf registration statement registering securities in addition
to those securities required to be registered hereunder, or any Prospectus prepared thereto.

 

(b)       (i)
Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and any
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable
Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statement(s)
in order to register for resale under the Securities Act any and all of the Registrable Securities, (ii) cause the related Prospectus
to be amended or supplemented, from time to time, by any required Prospectus supplement (subject to the terms of this Agreement),
and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably practicable to any
comments received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly
as reasonably practicable to the Holders true, accurate and complete copies of all correspondence from and to the Commission related
to and/or applicable to a Holder in the reasonable opinion of the Company relating to a Registration Statement (provided that,
the Company shall excise its business judgment with regard to any information contained therein which would constitute material
non-public information regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable
provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by
a Registration Statement during the Effectiveness Period in accordance (subject to the terms of this Agreement) with the intended
methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so
supplemented.

 

    5

     

    

 

(c)       Notify
the Holders of Registrable Securities intended to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such
Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the
Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing
on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same
has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments
or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the Commission
or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement
covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by
the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, and (v)
of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement stale
or otherwise ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any material revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, provided,
however, in no event shall any such notice contain any information which would constitute material, non-public information
regarding the Company or any of its Subsidiaries.

 

(d)       Use
its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or
suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)       Subject
to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto, except after the giving of any notice pursuant to clauses (iii) through (vi) of Section
3(c).

 

(f)       
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall not
be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such
jurisdiction.

 

    6

     

    

 

(g)       If
requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates or direct registration
statements in book entry form representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates shall be free, to the extent permitted by the Purchase Agreement (solely with respect to Holders a party thereto)
and applicable securities laws, of all restrictive legends, and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holder may reasonably request.

 

(h)       Upon
the occurrence of any event contemplated by Section 3(c), as promptly as reasonably practicable under the circumstances taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of any such event, prepare a supplement or amendment, including a post-effective amendment to a Registration Statement
or a supplement to any related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading at the time made. If the Company notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(c) above to suspend the use of any Prospectus until the
requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use
its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. In addition,
if (i) there is material non-public information regarding the Company which the Company’s Board of Directors (the “Board”)
determines not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose,
or (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other
than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board determines not to be in the Company’s best interest to disclose, then the Company may (x) postpone
or suspend filing of a registration statement for a period not to exceed forty-five (45) consecutive days or (y) postpone or suspend
effectiveness of a registration statement for a period not to exceed forty-five (45) consecutive days; provided, that
the Company may not postpone or suspend effectiveness of a registration statement under this Section for more than ninety (90)
days in the aggregate during any three hundred sixty (360) day period; provided, however, that no such postponement
or suspension shall be permitted for consecutive twenty (20) day periods arising out of the same set of facts, circumstances or
transactions.

 

    7

     

    

 

(i)       Comply
in all material respects with all applicable rules and regulations of the Commission.

 

(j)       The
Company shall require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares, pursuant to the Selling Stockholder Questionnaire.

 

4.        Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred
to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the Commission, (B) with respect to filings required to be made with any Principal Market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in
writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities) and (D) if not previously paid by the Company in connection with an issuer filing,
with respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable
Securities with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission
in connection with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities
Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by
this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions
of any Holder or, except to the extent of reasonable legal fees and disbursements not to exceed $10,000 of one firm to represent
the Buyers, any legal fees, or other costs of the Holders.

 

    8

     

    

 

5.        Indemnification.

 

(a)       Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder,
the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal
as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material
fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light
of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance
of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions
are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this
purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi), the use by such Holder
of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated
in Section 6(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising
from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive
the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(h).

 

(b)       Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or alleged
untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion
in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent, that such information relates
to such Holder’s information provided in the Selling Stockholder Questionnaire or the proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement
(it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or in any amendment or supplement
thereto. In no event shall the liability of a selling Holder be greater in amount than the dollar amount of the proceeds (net of
all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages such Holder
has otherwise been required to pay by reason of such untrue statement or omission) received by such Holder upon the sale of the
Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

 

    9

     

    

 

(c)       Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such notice shall not
relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that
it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense
of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more than one separate
counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any
such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

 

    10

     

    

 

Subject to
the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d)       Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified
Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified
Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations
set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms.

 

The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater
in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating
to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such
contribution obligation.

 

The indemnity
and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to
the Indemnified Parties.

 

6.        Miscellaneous.

 

(a)       Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company
and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

    11

     

    

 

(b)       No
Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Except as contemplated by Section 6(e) herein,
neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities
of the Company in any Registration Statements other than the Registrable Securities. The Company shall not file any other registration
statements until a Registration Statement has been filed with the Commission covering all of the Registrable Securities, provided
that this Section 6(b) (i) shall not prohibit the Company from filing amendments to registration statements filed prior to the
date of this Agreement and (ii) shall not prohibit the Company from filing a shelf registration statement on Form S-3 for a primary
offering by the Company, provided that the Company makes no offering of securities pursuant to such shelf registration statement
prior to the effective date of the Registration Statement required hereunder that includes all of the Registrable Securities; provided,
however, that upon the filing of a Registration Statement covering all of the Registrable Securities, the Company shall be permitted
to file any other registration statements in connection with a primary offering regardless of whether a Registration Statement
covering all of the Registrable Securities has been declared effective by the Commission; provided, further, that once all Registrable
Securities are registered pursuant to a Registration Statement that is declared effective by the Commission, the Company shall
be permitted to file any other registration statements.

 

(c)       Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to a Registration
Statement.

 

(d)       Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(c)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

    12

     

    

 

(e)       Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering
all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written
notice of such determination and, if within ten (10) days after the date of the delivery of such notice, any such Holder shall
so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities
such Holder requests to be registered; provided, however, that the Company shall not be required to register any
Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions
or current public information requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject
of a then effective Registration Statement. In connection with any offering involving an underwriting of shares of the Company’s
capital stock, the Company shall not be required to include any of the Registrable Securities in such underwriting unless the
Holder accepts the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity
as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the
total number of securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold
(other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable
Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering.
If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such
offering, then the Registrable Securities that are included in such offering shall be allocated among the Holders
of Registrable Securities in proportion (as nearly as practicable to) the number of Registrable Securities owned
by each Holder requesting registration.

 

(f)       Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed
by the Company and the Holders of at least a majority of the then outstanding Registrable Securities. If a Registration Statement
does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively
to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given
only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates. No consideration shall
be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the
same consideration also is offered to all of the parties to this Agreement.

 

    13

     

    

 

(g)       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

(h)       Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may
assign their respective rights hereunder to any Person to whom such Buyer assigns or transfers any Registrable Securities, provided
that such transferee agrees in writing to be bound, with respect to the transferred Registrable Securities, by the provisions of
this Agreement and any other Transaction Document that applies to the Buyers.

 

(i)       No
Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the
Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts in any material
respect with the provisions hereof. Neither the Company nor any of its Subsidiaries has previously entered into any agreement granting
any registration rights with respect to any of its securities to any Person that have not been satisfied in full.

 

(j)       Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

(k)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

(l)       Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m)       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

    14

     

    

 

(n)       Headings.
The headings in this Agreement are for convenience only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

 

(o)       Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the
obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert
or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters.
Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. It is
expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and
not between the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature Pages Follow)

 

    15

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Registration Rights Agreement as of the date first written above.

 

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

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    16

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO RRA]

 

Name of Holder: __________________________

 

Signature of Authorized Signatory of
Holder: __________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

 

[SIGNATURE PAGES CONTINUE]

 

    17

     

    

 

Annex A

 

Plan of Distribution

 

Each Selling Stockholder
(the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their securities covered hereby on the Principal Market or any other stock exchange,
market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated
prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

 

		●	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		●	block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

 

		●	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		●	an exchange distribution in accordance with the rules of the applicable exchange;

 

		●	privately negotiated transactions;

 

		●	settlement of short sales;

 

		●	in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities
at a stipulated price per security;

 

		●	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

		●	a combination of any such methods of sale; or

 

		●	any other method permitted pursuant to applicable law.

 

    18

     

    

 

The Selling Stockholders
may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the
“Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers engaged
by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction
not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with FINRA IM-2440.

 

In connection with
the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions
they assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions,
or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter
into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities
which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which
securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction).

 

The Selling Stockholders
and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities.

 

The Company is required
to pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed
to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the
Securities Act.

 

We agreed to keep this
prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without
registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for
the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of
similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or
any other rule of similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if
required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be
sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

 

Under applicable rules
and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and
sales of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus available to
the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior
to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    19

     

    

 

Annex B

 

ADIAL
PHARMACEUTICALS, INC.

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of ADIAL PHARMACEUTICALS, INC., a Delaware corporation
(the “Company”), understands that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a registration statement (the “Registration Statement”) for
the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights
Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from the Company
upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

 

In order to sell
or otherwise dispose of any Registrable Securities pursuant to the Registration Statement, a holder of Registrable Securities generally
will be required to be named as a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the
“Prospectus”), deliver the Prospectus to Buyers of Registrable Securities (including pursuant to Rule 172 under
the Securities Act) and be bound by the provisions of the Registration Rights Agreement (including certain indemnification provisions,
as described below). Holders must complete and deliver this Notice and Questionnaire in order to be named as selling stockholders
in the Prospectus. Holders of Registrable Securities who do not complete, execute and return this Notice and Questionnaire within
ten (10) Business Days following the date of the Agreement (1) will not be named as selling stockholders in the Resale Registration
Statement or the Prospectus and (2) may not use the Prospectus for resales of Registrable Securities. 

 

Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

    20

     

    

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement. The undersigned hereby provides the following information to the Company and represents
and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Stockholder

	
         

         

	 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities
are held:

	
         

         

	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly
alone or with others has power to vote or dispose of the securities covered by this Questionnaire):

	
         

         

	 

 

2. Address
for Notices to Selling Stockholder:

	
         

	 
	 
	 
	 
	 

                                                                                Telephone:

	 
	 
	Fax:
	 
	 
	Contact	 Person:
	 	 

 

    21

     

    

 

3. Broker-Dealer
Status:

 

		(a)	Are you a broker-dealer?

 

Yes ☐        No
☐ 

 

		(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation
for investment banking services to the Company?

 

Yes ☐        No
☐ 

 

		Note:	If “no” to Section 3(b), the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		(c)	Are you an affiliate of a broker-dealer?

 

Yes ☐        No
☐ 

 

		(d)	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities
in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes ☐        No
☐

 

		Note:	If “no” to Section 3(d), the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

4. Beneficial
Ownership of Securities of the Company Owned by the Selling Stockholder.

 

Except as set forth below
in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities
issuable pursuant to the Purchase Agreement.

 

		(a)	Type and Amount of other securities beneficially owned by the Selling Stockholder:

	
         

         

	 
	 

 

    22

     

    

 

		(b)	Number of shares of Common Stock to be registered pursuant to this Notice for resale:

	
         

         

	 
	 

  

5. Relationships
with the Company:

 

Except as set forth below,
neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past three years.

 

State any
exceptions here:

	
         

         

	 
	 

 

    23

     

    

 

The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion
of such information in the Registration Statement and the related prospectus and any amendments or
supplements thereto. The undersigned understands that such information will be relied upon by the Company in connection
with the preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	Date:	 	 	Beneficial Owner: 	 

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

    24

     

    

 

Schedule of Purchasers

Bespoke Growth Partners, Inc.

Ivy Cottage Group, LLC

James W. Newman Roth IRA

Rountop Limited Partnership, LLP

Keystone Capital Partners, LLC

 

 

25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}]]