Document:

Exhibit 10.13

 

	Investor Name:	___________________

 

	State of Domicile:	___________________

 

	Investment Amount:	___________________

 

 

 

 

ADIAL
PHARMACEUTICALS, LLC 

 

SUBSCRIPTION
AGREEMENT

 

TO
THE OFFERING OF 

 

CLASS
B UNITS

 

 

 

 

INSTRUCTIONS:
IN ORDER TO PURCHASE NOTES OF ADIAL, LLC, YOU MUST COMPLETE THIS SUBSCRIPTION AGREEMENT BY FILLING IN THE REQUESTED INFORMATION,
CHECKING THE APPROPRIATE BOXES, AND SIGNING AND RETURNING THE APPROPRIATE DOCUMENTS TO THE COMPANY.

 

     

     

    

 

ADIAL
PHARMACEUTICALS, L.L.C.

SUBSCRIPTION
AGREEMENT

 

 

 

THE
SECURITIES OF ADIAL PHARMACEUTICALS, L.L.C. TO BE OFFERED IN THIS OFFERING HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), BUT ARE BEING OFFERED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION PROVIDED
BY REGULATION D PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT. THE SECURITIES MAY NOT BE OFFERED,
SOLD, PLEDGED TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM.

 

 

 

Instructions

 

Upon
tender of this Subscription Agreement to ADial Pharmaceuticals, L.L.C. (the “Company”), this Subscription Agreement
shall constitute an irrevocable subscription by the undersigned (the “Investor”) for a membership interest in the
form of Units (defined in Section 2.a below).

 

Please
read this Subscription Agreement carefully and deliver this fully completed and executed Subscription Agreement 

 

by
sending a scan of the document to wstilley@adialpharma.com. 

 

or

 

	by
    sending the original by mail to	ADial
    Pharmaceuticals, LLC

204
East High Street

Charlottesville,
VA 22902

 

If
you have any questions, please contact Mr. Stilley at (434) 422-9803. Your payment for the Aggregate Subscription Amount, as reflected
in Section 13 shall be due to the Company within 10 business days of the receipt of a notice of acceptance from the Company.

 

Each
Investor, if more than one is required because of type of ownership, must execute this Subscription Agreement.

 

Subscription

 

		1.	Receipt
                                         and Review of the Offering Summary Documents. The undersigned acknowledges that he
                                         has been furnished with and has carefully read the Second Amended & Restated Operating
                                         Agreement Of Adial Pharmaceuticals, L.L.C. dated February 3, 2014, (the “Operating
                                         Agreement”), the Company’s presentation, and the Company’s Q4-2016
                                         and Q1-2017 quarterly update letters, which include audited financial statements for
                                         the years ended December 31, 2015 and 2016, (the “Information”). The undersigned
                                         is aware that:

 

		a.	The
                                         Company has a modest operating history, and there is no assurance that the Company’s
                                         operations will be profitable;

 

     

     

    

 

		b.	There
                                         are substantial risks incident to the ownership of the Units, and such an investment
                                         is speculative and involves a high degree of risk of loss by the undersigned of his entire
                                         investment in the Company; and

 

		c.	No
                                         federal or state agency has passed upon the Units or made any finding or determination
                                         concerning the fairness of this investment, and the Information may not have been filed
                                         with or reviewed by state securities administrators because of the limited nature of
                                         the offering.

 

		2.	Subscription.
                                         

 

		a.	Subject
                                         to the terms and conditions hereof, the undersigned hereby irrevocably subscribes for
                                         and agrees to purchase Class B membership units (as defined in the Operating Agreement)
                                         in the Company (“Units”), at a Per Unit Purchase Price set forth in Section
                                         13 below in the Aggregate Subscription Amount set forth in Section 13 below.

 

		b.	An
                                         irrevocable offer to subscribe for the Units shall be deemed to be made only upon tender
                                         to the Company of the following:

 

		(i)	this
                                         Subscription Agreement completed and executed by each Investor intending to own the Units
                                         subscribed for hereby;

 

		(ii)	a
                                         completed and signed Member Signature Page to the Operating Agreement; 

 

		(iii)	a
                                         completed and signed IRS Form W-9; and

 

		(iv)	any
                                         other information or documents that may be required by the Company to verify the accuracy
                                         of any statement or representation made herein.

 

		3.	Acceptance
                                         by Company. The undersigned further agrees that this subscription is and shall be
                                         irrevocable. The undersigned understands that the Company will notify the undersigned
                                         whether his investment has been accepted and upon receipt of the notice of acceptance
                                         from the Company, the undersigned agrees that he/she will pay in full the Aggregate Subscription
                                         Amount within 10 business days. 

 

The
Company reserves the right in its sole discretion to reject any subscription in its entirety or, in the alternative, to allocate
to any prospective Investor a smaller amount of Units than he or she has subscribed to purchase. For clarity, the Company shall
have the right to reduce, on a pro rata basis, or by lot, or by rejecting those subscriptions that were received last, or by any
other means determined at the sole discretion of the Company, the amount of the Units to which the undersigned subscriber has
subscribed. Furthermore, the Company shall not be required to accept subscriptions in the order received.

 

    	 	2	 

     

    

 

		4.	Acknowledgments
                                         of the Investor. The undersigned acknowledges that the Company cannot guarantee that
                                         a new partnering transaction (including, without limitation, an option agreement for
                                         such a partnering transaction) with a drug development collaborator, with terms and conditions
                                         acceptable to the Company, will be consummated; that the Company or all or some of its
                                         assets will be acquired; that any of its products will be commercially viable or successful,
                                         or that the additional financing needed to develop and commercialize the Companies assets
                                         will materialize.

 

		5.	Limitation
                                         on Transfer of the Units. The undersigned understands that an investment in the Company
                                         is an illiquid investment. In particular, the undersigned recognizes and agrees that:

 

		a.	Due
                                         to restrictions more fully described below, and the lack of any market existing or to
                                         exist for the Units, investment in the Company will be illiquid.

 

		b.	The
                                         undersigned must bear the economic risk of investment in the Company for an indefinite
                                         period of time since the Units have not been registered under the Securities Act or under
                                         the securities laws of any other jurisdictions. Therefore, the Units cannot be offered,
                                         sold, transferred, pledged or hypothecated to any person unless such transfer is in full
                                         compliance with all applicable federal laws or the securities laws of any other applicable
                                         jurisdictions. The Company is not obligated to register the Units under the Securities
                                         Act or the securities laws of any other jurisdictions.

 

		c.	The
                                         Units will bear a restrictive legend prohibiting transfers thereof except in compliance
                                         with applicable federal and state securities laws and will not be transferred of record
                                         except in compliance therewith. The Company may require that the proposed transferor
                                         provide the Company with an opinion of counsel satisfactory to the Company that such
                                         transfer complies with applicable federal and state securities laws. Stop transfer instructions
                                         will be issued to the Company’s transfer agent, if any, with respect to the Units
                                         or, if the Company acts as its own transfer agent, the Company will make a notation on
                                         its records concerning these restrictions on transfer.

 

		6.	Representations
                                         of the Investor. The undersigned hereby represents and warrants to the Company that:

 

		a.	The
                                         address set forth herein is his true and correct address, and he has no present intention
                                         of becoming a resident of any other state or jurisdiction. 

 

		b.	The
                                         undersigned is aware that any projections and estimates that may be included in the Information
                                         are subject to numerous factors beyond the Company’s control and are based on assumptions
                                         that may not prove correct. The undersigned understands that any projections and estimates
                                         in the Information are for purposes of illustration only and that there can be no assurance
                                         that actual results will correspond with the results contemplated in such projections
                                         and estimates.

 

    	 	3	 

     

    

 

		c.	The
                                         undersigned has been furnished with the Information and has been given ample opportunity
                                         to ask questions of and receive answers from representatives of the Company concerning
                                         the terms and conditions of this investment and to obtain additional information necessary
                                         to verify the accuracy of the information set forth in the Information. The undersigned
                                         has not received or been furnished with any information, statement or representation,
                                         oral or written, which varies in any material way from the information presented and
                                         statements made in the Information.

 

		d.	The
                                         undersigned is acquiring the Units for which he hereby subscribes as an investment for
                                         his own account, as principal, and without any intention of reselling or distributing
                                         all or any part of them, and he has no present intention, agreement or arrangement to
                                         divide his participation with others or to resell, assign, transfer or otherwise dispose
                                         of the Units unless and until the Units are registered or an exemption from such registration
                                         is available under federal securities laws or the securities laws of any other jurisdictions.
                                         

 

		e.	The
                                         undersigned has adequate net worth and means of providing for his current and potential
                                         future needs and personal contingencies to sustain a complete loss of his investment
                                         in the Company and has no need for liquidity in his investment. The undersigned’s
                                         overall commitments to investments that are not readily marketable are not disproportionate
                                         to his net worth, and his investment in the Units will not cause such overall commitments
                                         to become excessive. The undersigned has carefully evaluated the financial risk associated
                                         with this investment and acknowledges that he is able to bear the loss of his entire
                                         investment.

 

		f.	The
                                         undersigned has such knowledge and experience in business and financial matters that
                                         he is capable of evaluating the Company and the activities thereof and the risks and
                                         merits of investment in the Units and of making an informed investment decision thereon.

 

		g.	The
                                         undersigned acknowledges that neither the Company nor any person acting on behalf of
                                         the Company offered to sell him the Units by means of any form of general/public solicitation
                                         or advertising, such as media advertising, or at any seminar or meeting where the attendees
                                         were invited by any form of general/public solicitation or advertising.

 

		h.	The
                                         undersigned has not distributed the Information to anyone, and he has not made any copies
                                         thereof.

 

		i.	Accredited
                                         Investor Status. The undersigned is an “Accredited Investor,” as that
                                         term is defined in Regulation D (“Regulation D”) promulgated under the Securities
                                         Act because the undersigned satisfies one or more of the criterion set forth on Exhibit
                                         A attached hereto.

 

		7.	Agreement
                                         to be Bound by Terms and Conditions. The undersigned hereby adopts, accepts and agrees
                                         to be bound by all of the terms and conditions of the offering set forth in the Information.

 

    	 	4	 

     

    

 

		8.	Agreement
                                         to Indemnify Company. The undersigned hereby agrees to indemnify and hold harmless
                                         the Company and its affiliates from any and all damages, losses, costs and expenses (including
                                         reasonable attorneys’ fees) that they may incur (i) by reason of any breach by
                                         the undersigned of any of the representations, warranties or agreements contained herein,
                                         (ii) with respect to any and all claims made by or involving any person, other than the
                                         undersigned personally, claiming any interest, right, title, power or authority in respect
                                         of the Units purchased hereunder. The undersigned further agrees and acknowledges that
                                         the foregoing provisions shall survive any sale or transfer, or attempted sale or transfer,
                                         of any of the undersigned’s Units not in accordance with this Agreement or the
                                         Company’s Operating Agreement and survive the undersigned’s death or dissolution.

 

		9.	Transferability.
                                         The undersigned agrees not to transfer or assign this Agreement, or any of his interest
                                         herein, and any attempt to do so shall be null and void.

 

		10.	Revocation.
                                         The undersigned acknowledges and agrees that his subscription for the Units, made by
                                         the execution and delivery of this Agreement, is irrevocable and that such subscription
                                         shall survive the death or disability of the undersigned, except as provided herein.

 

		11.	Notices.
                                         All notices or other communications given or made hereunder shall be in writing and shall
                                         be delivered, mailed, postage prepaid, or electronically sent as follows: if to the undersigned,
                                         at the address set forth next to the undersigned’s signature, and if to the Company,
                                         to ADial Pharmaceuticals, LLC, c/o William Stilley, 204 East High Street, Charlottesville,
                                         VA 22902. Each party may change its address by written notice to the other party.

 

		12.	Conversion
                                         of the Company to a Corporation/ Merger of the Company with a Corporation. The Company
                                         may choose to be converted to or merged into a corporation through one transaction or
                                         a series of transactions (a “Conversion”) and the Units may or may not be
                                         converted into shares of stock or other securities at such ratio as approved in the Conversion
                                         Approval (as hereinafter defined). A Conversion may be effected if approved by (i) Members
                                         holding two thirds (2/3) of Units, in aggregate, (ii) Members holding a majority of each
                                         class of Units, and (iii) Members holding a majority of Profits Interest Units (together,
                                         a “Conversion Approval”). By executing this Agreement, the undersigned hereby
                                         consents to the Conversion, approves of an amendment to the Operating Agreement to effectuate
                                         a Conversion and agrees to execute documents to effectuate any such Conversion. In addition,
                                         the undersigned hereby irrevocably grants the Board of Directors of the Company a proxy
                                         to vote all Units as required by statute or otherwise to effect the Conversion.

 

		13.	Market
                                         Stand Off. The undersigned shall not sell or otherwise transfer, make any short sale
                                         of, grant any option for the purchase of, or enter into any hedging or similar transaction
                                         with the same economic effect as a sale of any securities held by the undersigned (other
                                         than those included in the registration) of any Entity (as defined below) during the
                                         one hundred eighty (180) day period following the effective date of the registration
                                         statement for the Entity’s initial public offering filed under the Securities Act
                                         (or such other period as may be requested by the Entity or an underwriter to accommodate
                                         regulatory restrictions on (i) the publication or other distribution of research reports
                                         and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions
                                         contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions
                                         or amendments thereto). The obligations described in this Section shall not apply to
                                         a registration relating solely to employee benefit plans on Form S-8 or similar forms
                                         that may be promulgated in the future, or a registration relating solely to a transaction
                                         on Form S-4 or similar forms that may be promulgated in the future. The Entity may impose
                                         stop-transfer instructions and may stamp each certificate with a legend with respect
                                         to the shares of common stock (or other securities) subject to the foregoing restriction
                                         until the end of such one hundred eighty (180) day (or other) period. The undersigned
                                         further agrees to execute a market stand-off agreement with the relevant underwriters
                                         in customary form consistent with the provisions of this Section. For the purposes of
                                         this Section, the terms “Entity” shall mean the Company, any successor thereto,
                                         any entity into which the Company may convert or otherwise reorganize into, any entity
                                         engaged in a merger with the Company (whether in a series of mergers or one merger and
                                         whether the Company is the survivor in a merger or becomes a subsidiary of an entity
                                         engaged in the merger) or any entity which acquires substantially all of the Company’s
                                         assets.

 

    	 	5	 

     

    

 

		14.	Miscellaneous.

 

		a.	Notwithstanding
                                         the place where this Agreement may be executed by any of the parties hereto, the parties
                                         expressly agree that the terms and provisions hereof shall be construed in accordance
                                         with and governed by the laws of the Commonwealth of Virginia.

 

		b.	This
                                         Agreement constitutes the entire agreement between the parties hereto with respect to
                                         the subject matter hereof and may be amended only by a writing executed by all parties.

 

		c.	This
                                         Agreement shall be binding upon the heirs, estate, legal representatives, successors
                                         and assigns of the parties hereto.

 

		d.	The
                                         representations, warranties and agreements contained herein shall survive the delivery
                                         and payment for the Units. 

 

The
remainder of this page is intentionally left blank.

 

    	 	6	 

     

    

 

		15.	Price
                                         and Aggregate Subscription Amount. The undersigned hereby subscribes to the amount
                                         and at the price indicated below:

 

	 	“Per Unit Purchase Price”	$1.06
	 	“Aggregate Subscription Amount”:	$__________________

 

IN
WITNESS WHEREOF, the undersigned has executed this Subscription Agreement effective this ______ day of ______________, 2017.

 

	Subscriber
Name (as it is to appear in the company records):

	 	Co-Member
    Name (if applicable): 
	 	 	 	 	 
	 	 	 	 	 
	Signed:	 	 	Signed:	 
	Print:	 	 	Print:	 
	Title
    (if required): 	 	 	Title
    (if required): 	 
	 	 	 	 	 
	 	 	 
	Fed.
    Tax ID/Social Security Number  	 	Fed.
    Tax ID/Social Security Number  
	 	 	 	 	 
	Address:	 	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Email Address:	 	Email Address:
	 	 	 
	 	 	 	 	 

 

 

ACCEPTANCE
BY COMPANY

(To
be completed by the Company)

 

Approved
and accepted in accordance with the terms and conditions of the Subscription Agreement set forth above.

 

Aggregate
Subscription Amount Accepted: $_____________________________

 

Number
of Class B Units Subscribed: __________________________________

 

ADIAL
PHARMACEUTICALS, L.L.C.

 

	By:	 	 	Date:
    	__________,
    2017
	 	William
    B. Stilley	 	 	 
	 	CEO	 	 	 

 

 

    	 	7	 

     

    

 

EXHIBIT
A

 

Accredited
Investor Status. The undersigned is an “Accredited Investor,” as that term is defined in Regulation D (“Regulation
D”) promulgated under the Securities Act because (one or more must apply):

 

		1.	The
                                         undersigned is a bank, or any savings and loan association or other institution whether
                                         acting in its individual or fiduciary capacity; any broker or dealer registered pursuant
                                         to section 15 of the Securities Exchange Act of 1934; any insurance company; any investment
                                         company registered under the Investment Company Act of 1940 or a business development
                                         company; any Small Business Investment Company licensed by the U.S. Small Business Administration
                                         under the Small Business Investment Act of 1958; any plan established and maintained
                                         by a state, its political subdivisions, or any agency or instrumentality of a state or
                                         its political subdivisions, for the benefit of its employees, if such plan has total
                                         assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee
                                         Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary,
                                         which is either a bank, savings and loan association, insurance company, or registered
                                         investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000
                                         or, if a self-directed plan, with investment decisions made solely by persons that are
                                         Accredited Investors;

 

		2.	The
                                         undersigned is a private business development company as defined in section 202(a)(22)
                                         of the Investment Advisers Act of 1940;

 

		3.	The
                                         undersigned is an organization described in section 501(c)(3) of the Internal Revenue
                                         Code, corporation, Massachusetts or similar business trust, or partnership, not formed
                                         for the specific purpose of acquiring the Units subscribed for hereby, with total assets
                                         in excess of $5,000,000;

 

		4.	The
                                         undersigned is a director, executive officer, or general partner of the Company, or a
                                         director, executive officer, or general partner of a general partner of the Company;

 

		5.	The
                                         undersigned is a natural person whose individual net worth, or joint net worth with the
                                         undersigned’s spouse, at the time of his or her purchase exceeds $1,000,000, excluding
                                         the value of the primary residence of such natural person;

 

		6.	The
                                         undersigned is a natural person who had an individual income in excess of $200,000 in
                                         each of the two most recent years or joint income with the undersigned’s spouse
                                         in excess of $300,000 in each of those years and has a reasonable expectation of reaching
                                         the same income level in the current year;

 

		7.	The
                                         undersigned is a trust, with total assets in excess of $5,000,000, not formed for the
                                         specific purpose of acquiring the Units subscribed for hereby, whose purchase is directed
                                         by a sophisticated person as described in Regulation D; or

 

		8.	The
                                         undersigned is an entity in which all of the equity owners are accredited investors.

 

    	 	8	 

     

    

 

ADIAL
PHARMACEUTICALS, L.L.C.

MEMBER
SIGNATURE PAGE

 

In
consideration for the sale of LLC Units in ADial Pharmaceuticals, L.L.C., a Virginia limited liability company (the “LLC”),
by the LLC to the undersigned, the undersigned hereby approves and consents to, and agrees to be bound by, the terms of that certain
Second Amended and Restated Operating Agreement of the ADial Pharmaceuticals, L.L.C. effective February 3, 2014, as may be amended
and/or restated from time to time (the “Operating Agreement”) and concurrently herewith enters into the Operating
Agreement with all existing members of the LLC by executing and delivering to the LLC this Member Signature Page.

 

Upon
the undersigned’s execution and delivery of this Member Signature Page, the undersigned’s delivery of all monies and/or
other items required by management of the LLC, and acceptance of this Member Signature Page by the LLC, the undersigned shall
become a Member of the LLC.

 

If
the undersigned is purchasing LLC Units jointly with another, all such joint owners must execute this Member Signature Page.

 

Effective
Date: ________________, 2017.

 

	Member
    Name: 	 	 	Co-Member
    Name (if applicable): 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Signed:	 	 	Signed:	 
	Print:	 	 	Print:	 
	Title
    (if required): 	 	 	Title
    (if required): 	 
	 	 	 	 	 
	 	 	 
	Fed.
    Tax ID/Social Security Number	 	Fed.
    Tax ID/Social Security Number
	 	 	 	 	 
	Address:	 	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Email Address:	 	Email Address:
	 	 	 
	 	 	 	 	 

 

	 	Accepted
    on behalf of ADial Pharmaceuticals, L.L.C.
	 	 	 
	 	By:
    	 
	 	 	William
    B. Stilley
	 	 	CEO

 

 

9Exhibit 10.14

 

 

 

 

 C
R E S C E N D O    C O M M U N I C A T I O N S,    L L C 

 

 

Mr.
William B. Stilley

Adial
Pharmaceuticals, LLC

204
East High Street

Charlottesville,
VA 22902

 

This
letter confirms the following agreement between our respective companies. It replaces, ab initio, any other agreements
related to the subject matter herein entered prior to the date last written below.

 

		1.	Adial
                                         Pharmaceuticals, LLC (“Company”) hereby retains Crescendo Communications,
                                         LLC (“Crescendo”) effective October 1, 2016 through September 30, 2018, to
                                         provide the Services defined below.

 

		2.	The
                                         services to be performed by Crescendo on behalf of the Company will consist of the following
                                         (“Services”):

 

		2.1	Corporate
                                         Planning

 

		a.	Develop
                                         an in-depth familiarization with the Company’s business objectives and bring to
                                         its attention potential or actual opportunities which meet those objectives or logical
                                         extensions thereof.

 

		b.	Alert
                                         the Company to potential strategic partnerships.

 

		c.	Comment
                                         on the Company’s corporate development including such factors as position in competitive
                                         environment, financial performances vs. competition, strategies, operational viability,
                                         etc.

 

		2.2	Financial
                                         Public Relations

 

		a.	Review
                                         and comment upon the Company’s reports to shareholders, corporate presentation,
                                         website materials and other financial publications.

 

		b.	Bring
                                         to the Company’s attention outstanding examples of financial presentations in other
                                         industries, including both overall reporting and portions of reports.

 

		c.	Review
                                         and comment upon the Company’s financial public relations plan.

 

		d.	Keep
                                         the Company informed on any externally originated information disseminated about it.

  

    Crescendo Communications, LLC

     

    

 

Adial Pharmaceuticals, LLC

Page 2/4

 

		2.3	Business
                                         Strategies

 

		a.	Evaluate
                                         business strategies and recommend changes where appropriate.

 

		b.	Critically
                                         evaluate the Company’s performance in view of its corporate planning and business
                                         objectives.

 

		2.4	Shareholder
                                         Relations

 

		a.	Review,
                                         comment on and advise the Company as to responses to communications from shareholders.

 

		b.	Assist
                                         the Company in improving its shareholder relations by developing long range programs
                                         for shareholder communication.

 

		c.	Advise
                                         the Company as to selection of suitable outside counsel and advisors.

 

		d.	Review
                                         and prepare marketing materials as required, including presentations, website and data
                                         room materials.

 

		e.	Assist
                                         in drafting press releases as necessary.

 

The
parties agree and acknowledge that Crescendo will not be engaging in any broker-dealer activities on behalf of the Company and
its compensation is not dependent on it performing any broker-dealer activities and specifically Crescendo will not be (i) engaged
in soliciting investors for the Company, negotiating any transaction on behalf of the Company with any investors or investment
banks or fund managers; (ii) providing investment advice or acting as a financial consultant; or (iii) participating in any securities
transaction on behalf of the Company.

 

		3.	In
                                         consideration of the Services, immediately after the IPO, the Company shall issue to
                                         Crescendo the number of restricted shares of the Company as shall be necessary to bring
                                         Crescendo’s equity ownership in the Company to 4.8% based on the total fully diluted
                                         outstanding shares immediately prior to the IPO but not including options issued to employees,
                                         officers, directors, and consultants after June 1, 2017. Shares shall vest 50% upon issuance
                                         and, if there is an IPO, 50% on December 31, 2017. In addition, the Company immediately
                                         following an IPO shall issue Crescendo 5-year warrants to purchase such number of shares
                                         of common stock of the Company as shall equal 4.9% of the then total fully diluted outstanding
                                         shares (for this calculation fully diluted does not include options issued to employees,
                                         officers, directors, and consultants after June 1, 2017) with an exercise price equal
                                         to the price of the shares issued in the IPO. The warrants shall have a cashless exercise
                                         feature and be immediately exercisable, provided, however, that no warrants may be exercised
                                         if the issuance of such warrants would create the situation where Crescendo owned more
                                         that 4.99% of the shares of the Company. In the event the Company does not complete an
                                         IPO on or before December 31, 2017, the Company shall have the right to terminate the
                                         agreement without issuing the securities stated above.

 

    Crescendo Communications, LLC

     

    

 

Adial Pharmaceuticals, LLC

Page 3/4

 

		4.	Crescendo
                                         acknowledges its responsibility to use reasonable efforts to preserve the confidentiality
                                         of any information disclosed by Company on a confidential basis to Crescendo, except
                                         for disclosures required by court order, subpoena or other judicial process.

 

		5.	Company
                                         understands and acknowledges that Crescendo will rely upon the accuracy of all information
                                         (“Information”) provided to it by Company. Company shall have full responsibility
                                         and liability to Crescendo for such Information and Company shall indemnify, defend and
                                         hold Crescendo harmless from and against any demands, claims, judgments and liabilities
                                         arising from or related thereto or from the nature and/or use of the Company’s
                                         products or services (collectively “Claims Against Crescendo”). Company shall
                                         reimburse Crescendo for amounts payable by Crescendo in settlement of or in payment of
                                         any Claims Against Crescendo resulting from Crescendo’s reasonable use of the Information
                                         and indemnify Crescendo for all costs and expenses incurred by Crescendo in connection
                                         therewith, including without limitation, attorney’s fees and costs of defending
                                         Claims Against Crescendo, except in cases where damages are due to Crescendo’s
                                         gross negligence or willful misconduct.

 

		6.	As
                                         used herein, “shares” means membership units while ADial remains a limited
                                         liability company.

 

		7.	This
                                         Agreement constitutes the entire understanding and agreement between the parties with
                                         respect to the subject matter here of and all prior contemporaneous understandings; negotiations
                                         and agreements are merged herein.

 

		8.	The
                                         Agreement may not be altered, extended, or modified nor any of its provisions waived,
                                         except by a document in writing signed by the party against whom such alteration, modification,
                                         extension or waiver is sought to be enforced.

 

		9.	A
                                         waiver by either party of any breach, act or omission of the other party is not to be
                                         deemed a waiver of any subsequent similar breach, act or omission.

 

    Crescendo Communications, LLC

     

    

  

Adial Pharmaceuticals, LLC

Page 4/4

 

		10.	The
                                         terms and provisions of this Agreement shall be binding upon and shall inure to the benefit
                                         of the parties, and their respective successors and assigns.

 

		11.	This
                                         agreement shall be governed by, construed and enforced under the laws of the State of
                                         New York without reference to any choice of law doctrine. With respect to any and all
                                         controversies or claims arising out of or relating to this Agreement or any alleged breach
                                         hereof, the parties agree hereto to submit to the exclusive jurisdiction of the state
                                         courts of the State of New York.

 

		12.	Crescendo
                                         shall have the right to terminate this Agreement at any time for convenience upon thirty
                                         (30) days’ prior written notice.

 

		13.	This
                                         Agreement supersedes all prior agreements and understandings between the parties hereto
                                         with respect to the subject matter hereof.

 

	 	Very
    truly yours,
	 	 
	 	CRESCENDO
    COMMUNICATIONS, LLC
	 	 	 
	 	By:	/s/ David
    K. Waldman
	 	 	David
    K. Waldman, President & CEO

 

Agreed
to and Approved

this
30th day of June 2017.

 

Adial
Pharmaceuticals, LLC

 

	By:	/s/
    William B. Stilley	 
	 	William
    B. Stilley, CEO	 

 

 

 

Crescendo Communications,
LLC

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