Document:

Exhibit
10.1

 

 

 

Stock Purchase Agreement

 

By and Between

 

Adial Pharmaceuticals, Inc.

 

and

 

 

 

July 6, 2021

 

 

 

     

     

    

 

Stock
Purchase Agreement

 

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

 

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

 

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

 

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

 

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

 

Article I. Definitions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article II.
Purchase and Sale

 

Section 2.01
Purchase and Sale.

 

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

 

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

 

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

 

Section 2.03
Issuance of Shares Against Payment Therefor at Closing. 

 

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

 

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

 

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Section 2.04 Closings.

 

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

 

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

 

Section 2.05
First Tranche Closing Conditions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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Section 2.06
Second Tranche Closing Conditions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article III.
Representations and Warranties of the Company

 

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

 

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

 

Section 3.02
Governmental Approvals; Non-Contravention. 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article IV.
Representations and Warranties of the Buyer

 

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

 

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

 

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Section 4.02
Governmental Approvals; Non-contravention.

 

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

 

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

 

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

 

Section 4.04
Investment Representations.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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Article V.
Indemnification; Additional Covenants

 

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

 

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

 

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

 

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Section 5.04
Purchase Price Penalty. 

 

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

 

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

 

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

 

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

 

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

 

Article VI.
Miscellaneous

 

Section 6.01
Notices. 

 

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

 

If to the Company, to:

 

Adial Pharmaceuticals,
Inc.

Attn: William Stilley,
CEO

1180 Seminole Trail,
Suite 495

Charlottesville,
VA 22901

Email:

 

If to the Buyer, to:

  

____________________________

____________________________

____________________________

____________________________

____________________________

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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Section 6.08
Governing Law; Etc.

 

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

 

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

 

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

 

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

 

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

 

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

 

    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
twenty-four (24) hours prior to the issuance, filing or public disclosure thereof. The Buyer must be provided with a final version of
any such press release, Commission filing or other public disclosure at least twenty-four (24) hours prior to any release, filing or use
by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material
Adverse Effect.

 

[Signature Page Follows]

 

    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

 

     

     

    

 

EXHIBIT A

“Registration Rights Agreement”

 

 

 

 

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

 

 

29Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT
(this “Agreement”) is made and entered into as of July 6, 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 30th
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
the date of execution of this Agreement, 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.

 

“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.

 

(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.

 

    7

    

    

 

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 any legal fees, or other costs of the Holders.

 

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).

 

    8

    

    

 

(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.

 

(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.

 

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.

 

    9

    

    

 

(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.

 

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(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.

 

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(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.

 

(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.

 

    12

    

    

 

(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 was 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.

 

(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.

 

    13

    

    

 

(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)

 

    14

    

    

 

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]

 

     

    

    

 

[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]

 

     

    

    

 

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.

 

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).

 

    2

    

    

 

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.

 

    3

    

    

 

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:
	 

 

    4

    

    

 

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:

 

	 	 	 
	 	 	 
	 	 	 

 

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

 

	 	 	 
	 	 	 
	 	 	 

 

    5

    

    

 

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:

 

	 	 	 
	 	 	 

 

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:

 

 

6

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