Document:

Exhibit 10.2

 

 

January 26, 2021

 

VIA ELECTRONIC DELIVERY

 

James N. Woody, M.D., Ph.D.

Chief Executive Officer

 

Ozan Pamir

Chief Financial Officer

 

180 Life Sciences Corp.

830 Menlo Avenue, Suite 100

Menlo Park, CA 94025

 

Re: Follow-On
Offering

 

Gentlemen:

 

The purpose of this
engagement letter is to outline our agreement in principle pursuant to which Maxim Group LLC (“Maxim”) will
act as the sole managing underwriter and sole book runner in connection with the proposed follow-on public offering (the “Offering”)
of common stock and/or units consisting of common stock and warrants (“Securities”) of 180 Life Sciences Corp.,
Inc. (collectively, with its subsidiaries the “Company”), company, on a “firm commitment” basis.

 

This engagement letter
states certain conditions and assumptions upon which the Offering is premised. However, except as expressly provided for herein,
this engagement letter is not intended to be a binding legal document, with the exception of those specific sections of this engagement
letter that are agreed to be binding. All references in this engagement letter to dollars or $ shall mean United States dollars.

 

The terms of our agreement in principle are as follows:

 

1. The Company hereby
engages Maxim, for the period beginning on the date hereof and ending on June 30, 2021 (the “Engagement Period”),
to act as the Company’s financial advisor, sole managing underwriter and sole book runner in connection with the proposed
Offering or any other equity financing. During the Engagement Period or until the consummation of the Offering, and as long as
Maxim is proceeding in good faith with preparations for the Offering, the Company agrees not to solicit, negotiate with or enter
into any agreement with any other source of financing (whether equity, debt (excluding commercial debt) or otherwise), any underwriter,
potential underwriter, placement agent, financial advisor or any other person or entity in connection with an offering of the
Company’s securities or any other financing by the Company without the express written consent of Maxim. In the event the
Company has not had its Registration Statement approved by the Commission (as referenced herein) as of the end of the Engagement
Period, the Engagement Period shall be extended automatically for an additional 60-day period upon the approval from the Commission
(as referenced herein). It is further understood and agreed that during the Engagement Period, the Company and Maxim may mutually
determine that instead of proceeding with the proposed Offering, the Company may alternatively proceed with a different offering
of its equity, equity-linked, warrants, convertible or debt securities (“Alternative Transaction”). In such
an event, Maxim’s exclusivity enumerated in this agreement shall still apply, and all fees, expenses and rights detailed
in this letter of engagement shall apply to the Alternative Transaction. It is further understood that if the Company proceeds
with a private offering and Maxim presents terms that either (i) do not reflect an equity offering, (ii) provide for warrant
coverage that is either greater than 100% coverage or involves non-“plain vanilla” warrants,or (iii) propose a 20%
or greater discount to market, the Company shall then have the right to terminate this engagement letter upon ten days’
notice, subject to the provisions of this engagement letter that are intended to survive (the “Termination Right”).

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 2

	 

 

2. The
Offering shall consist of the sale of up to $25.0 million worth of Securities. Maxim will act as sole managing underwriter and
sole book runner of the Offering an underwriting syndicate, subject to, among other things, completion of Maxim’s due diligence
examination of the Company and its affiliates and the execution of a definitive underwriting agreement between the Company and
Maxim in connection with the Offering (the “Underwriting Agreement”) and other customary documentation. In the
event Maxim is not satisfied with its due diligence inquiry, Maxim shall notify the Company and this agreement and all of the Company’s
continuing obligations hereunder shall terminate.

 

3. The
actual size of the Offering, the precise number of Securities to be offered by the Company, and the offering price per Security
shall be the subject of continuing negotiations between the Company and Maxim and will depend upon the capitalization of the Company
(at the time of the Offering) being acceptable to Maxim, general market and economic conditions, a review and finalization of audited
financial statements and formal financial projections of the Company, as well as other factors which Maxim deems relevant in its
discretion. Maxim may: (i) with the Company’s approval (not to be unreasonably withheld, conditioned or delayed), create
an underwriting syndicate for the Offering comprised of broker-dealers who are members of the Financial Industry Regulatory Authority
(“FINRA”),

(ii) rely
on soliciting dealers who are FINRA members to participate in placing a portion of the Offering and/or (iii) offer Securities to
such dealers at less than the public Offering price.

 

4. The
Underwriting Agreement will provide that the Company will grant to Maxim an option, exercisable within 45 days after the closing
of the Offering (the “Closing”), to acquire up to an additional 15.0% of the total number of Securities to be
offered by the Company, solely for the purpose of covering over-allotments (the “Over-allotment Securities”).

 

5. An
underwriting discount or spread of seven percent (7.0%) of the public offering price shall be provided to Maxim. Upon the execution
of this engagement letter, the Company shall deliver to Maxim, an amount of $25,000 (by check or wire transfer of immediately available
funds) as an advance against reasonably anticipated out-of-pocket expenses, which shall be applied towards such underwriting discount
(the “Initial Advance”). An additional $15,000 (collectively, with the Initial Advance, the “Advance”)
will be paid to Maxim (by check or wire transfer of immediately available funds) concurrently with the filing of the Registration
Statement (referred to herein in Paragraph 6) with the Securities and Exchange Commission and shall also be applied towards such
underwriting discount. However, in the event this agreement is terminated prior to completion of the Offering, Maxim shall return
any portion of the Advance not used to pay its accountable out-of-pocket expenses actually incurred.

 

6. The Company shall,
as soon as practicable following the date hereof, prepare and file with the Securities and Exchange Commission (the “Commission”)
and the appropriate state securities authorities, a Registration Statement on Form S-1 or relevant filing form (the “Registration
Statement”) under the Securities Act of 1933, as amended (the “Act”), and a prospectus included therein
(the “Prospectus”) covering the Securities to be sold in the Offering, the Over-allotment Securities and the
shares of Common Stock underlying the Underwriter’s Warrants (as defined below). The Registration Statement (including the
Prospectus therein), and all amendments and supplements thereto, will be in form reasonably satisfactory to the Company and the
Company’s counsel, and to Maxim and counsel to Maxim, and will contain such interim and other financial statements and schedules
as may be required by the Act and rules and regulations of the Commission thereunder. Maxim and its counsel shall be given
the opportunity to make such review and investigation in connection with the Registration Statement and the Company as they deem
desirable. The Company intends to use the proceeds of the Offering for its working capital needs and requirements, and shall be
described in the Prospectus as is customarily required by the SEC.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 3

	 

 

7. The
Registration Statement filing will include as an exhibit a proposed form of Underwriting Agreement. The final Underwriting Agreement
will be in form satisfactory to the Company and Maxim and will include indemnification provisions and other terms and conditions
customarily found in underwriting agreements for public offerings. Without limiting the generality of the foregoing, the Underwriting
Agreement shall contain customary representations and warranties of the Company and shall further provide that: (i) the Company,
the Company’s directors and officers as of the effective date of the Registration Statement (and all holders of securities
exercisable for or convertible into shares of Common Stock) shall enter into customary “lock-up” agreements in favor
of Maxim pursuant to which such persons and entities shall agree, for a period of ninety (90) days after the Offering is completed,
that they shall neither offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of
any securities of the Company without Maxim’s prior written consent, including the issuance of shares of Common Stock upon
the exercise of currently outstanding options approved by Maxim and (ii) upon the Closing, for a period of twelve (12) months from
the Closing, the Company, or any successor to or any subsidiary of the Company, will grant Maxim the right of first refusal under
the terms set forth in Paragraph 14 of this engagement letter.

 

8. Concurrently
with or as soon as practicable after the filing of the Registration Statement with the Commission, the Company shall make all necessary
state “blue sky” securities law filings with respect to the Securities to be sold in the Offering (including the Over-allotment
Securities). The Company and Maxim will cooperate in obtaining the necessary approvals and qualifications in such states as Maxim
deems necessary and/or desirable.

 

9. The Company shall
be responsible for and pay all expenses relating to the Offering, including, without limitation, all filing fees and communication
expenses relating to the registration of the Securities to be sold in the Offering (including the Over-allotment Securities) with
the Commission and the filing of the offering materials with FINRA; all fees and expenses relating to the listing of such Securities
on such stock exchange as the Company and Maxim together determine; all reasonable fees, expenses and disbursements relating to
background checks of the Company’s officers and directors; all fees, expenses and disbursements relating to the registration
or qualification of such Securities under the “blue sky” securities laws of such states and other jurisdictions as
Maxim may reasonably designate (including, without limitation, all filing and registration fees, and the fees and disbursements
of Maxim’s counsel for such counsel’s participation in the “blue sky’ and stock exchange listing process;
the costs of all mailing and printing of the underwriting documents (including the Underwriting Agreement, any Blue Sky Surveys
and, if appropriate, any Agreement Among Underwriters, Selected Dealers’ Agreement, Underwriters’ Questionnaire and
Power of Attorney), Registration Statements. Prospectuses and all amendments, supplements and exhibits thereto and as many preliminary
and final Prospectuses as Maxim may reasonably deem necessary; the costs and expenses of the public relations firm referred to
in Paragraph 13(i) hereof; the costs of preparing, printing and delivering certificates representing such Securities; fees and
expenses of the transfer agent for such Securities; stock transfer taxes, if any, payable upon the transfer of securities from
the Company to Maxim; the fees and expenses of the Company’s accountants and the fees and expenses of the Company’s
legal counsel and other agents and representatives. Upon Maxim’s request, the Company shall provide funds to pay all such
fees, expenses and disbursements in advance. For the sake of clarity, it is understood and agreed that (i) the Company shall be
responsible for Maxim’s legal costs detailed in this Paragraph 9 irrespective of whether the Offering is consummated or
not, and (ii) the maximum amount of legal fees, costs and expenses incurred by Maxim that the Company shall be responsible
for shall not exceed $100,000 (though the amount shall be $60,000 if the Company proceeds with a private placement Alternative
Transaction) in the event of a Closing of the Offering, and shall not exceed $40,000 (inclusive of the Advance) in the event that
there is not a Closing of the Offering, provided, however, that if the letter of engagement is terminated by the Company pursuant
to the Termination Right, the expenses shall not exceed $25,000.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 4

	 

 

10. While
the Commission is reviewing the Registration Statement, Maxim may plan and arrange one or more “road show” marketing
trips for the Company’s management to meet with prospective investors. Such trips will include visits to a number of prospective
institutional and retail investors. The Company shall pay for all expenses, including, without limitation, travel and lodging expenses,
associated with such trips. During the 45-day period prior to the filing of the Registration Statement with the Commission, and
at all times thereafter prior and following to the effectiveness of the Registration Statement, the Company and its officers, directors
and related parties will abide by all rules and regulations of the Commission relating to public offerings, including, without
limitation, those relating to public statements (i.e., “gun jumping”) and disclosures of material non-public information.

 

11. At
such time as the Company and Maxim are mutually satisfied that it is appropriate to commence the Offering, the final terms of the
Underwriting Agreement will be negotiated and the Company and Maxim will request the Commission to make the Registration Statement
effective.

 

 12. [This section is intentionally blank.]

 

 13. The Offering shall be conditioned upon, among other things, the following:

 

a. Satisfactory
completion by Maxim of its due diligence investigation and analysis of: (i) the Company’s arrangements with its officers,
directors, employees, affiliates, customers and suppliers, (ii) the audited historical financial statements of the Company as required
by the SEC (including any relevant stub periods), and (iii) the Company’s projected financial results for the fiscal years
ending December 31, 2020 through 2024;

 

b. The
execution by the Company and Maxim of a definitive Underwriting Agreement containing all applicable terms and conditions provided
for in this engagement letter;

 

c. The
Company meeting the criteria necessary for inclusion of the Common Stock on the NASDAQ Global, NASDAQ Capital Market, NYSE or the
NYSE Amex and seeking and using its best efforts to maintain such listing for a period of at least three years after the Closing;
the Company acknowledges that based on its connection to the cannabis industry, the risk of the Company failing to meet the criteria
for listing may be higher;

 

d. Neither
the Company nor any of its affiliates has, either prior to the initial filing or the effective date of the Registration Statement,
made any offer or sale of any securities which are required to be “integrated” pursuant to the Act or the regulations
thereunder with the offer and sale of the Securities pursuant to the Registration Statement;

 

e. The
Company’s registration of the Common Stock under the provisions of Paragraph 12(b) or (g), as applicable, of the Securities
Exchange Act of 1934 on or prior to the effective date of the Offering;

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 5

	 

 

f. The
Company retaining a nationally recognized, PCAOB registered firm of independent certified public accountants acceptable to Maxim
and the Company, which will have responsibility for the preparation of the financial statements and the financial exhibits, if
any, to be included in the Registration Statement, it being agreed that the Company will continue to engage a nationally recognized,
PCAOB registered accounting firm of comparable quality (as may be determined by the Company’s audit committee) for a period
of at least three years after the Closing;

 

g. The
Company retaining a financial printer acceptable to Maxim to handle the printing and related aspects of the Offering;

 

h. The
Company retaining a transfer agent for the Company’s Common Stock reasonably acceptable to Maxim and continuing to retain
such transfer agent for a period of two (2) years after the Closing;

 

i. In
the event the Offering is consummated, the Company engaging a financial public relations firm or firms reasonably acceptable to
Maxim, which firm shall be experienced in assisting issuers in public offerings of securities and in their relations with their
security holders, and continuing to retain such firm for a period of two years after the Closing; and

 

14. Upon
the Closing of an Offering, for a period of twelve (12) months from such Closing, the Company grants Maxim the right of first refusal
to act as a sole managing underwriter and sole bookrunner for any and all future public and private equity, equity-linked, convertible
and debt offerings (each a “Future Financing”) during such twelve (12) months period of the Company, or any
successor to or any subsidiary of the Company.

 

15. Except
as provided in Paragraph 1 hereof, this Paragraph 15 and Paragraphs 16, 17, 18, 19, 20, 21, 22 and 23 (and Exhibit A attached hereto)
hereof (which Paragraphs are intended be legally binding and enforceable on and against the Company and Maxim, and to survive termination
of this agreement), this engagement letter is not intended to be a binding legal document, as the agreement between the parties
hereto on these matters will be embodied in the Underwriting Agreement. Until the Underwriting Agreement has been finally negotiated
and signed, but subject to the last sentence of this Paragraph, Maxim may at any time terminate its participation in the proposed
transactions and it shall have no liability to the Company. Upon the expiration of Engagement Period, the parties agree that :

 

a. The
Company agrees to reimburse Maxim for, or otherwise pay and bear, the reasonable expenses and fees to be paid and borne by the
Company as provided for and subject to the provisions of Paragraphs 9 and 10 above and to reimburse Maxim for the full amount of
its accountable expenses incurred to such date (exclusive of legal fees and disbursements incurred), including but not limited
to travel, lodging and other “road show” expenses, mailing, printing and reproduction expenses, and any expenses incurred
by Maxim in conducting its due diligence), and alsoto reimburse Maxim for all fees and disbursements incurred Maxim’s counsel
(subject to the limitations set forth in paragraph 9 above), less any Advance and amounts previously paid to Maxim in reimbursement
for such expenses; and

 

b. If the Engagement
Period ends prior to consummation of the Offering (other than a termination for “Cause,” as defined below), then if
within twelve (12) months following such termination, the Company completes any financing of equity, equity-linked or debt or
other capital raising activity (other than the exercise by any person or entity of any options, warrants or other convertible securities)
with any of the investors contacted or introduced by Maxim during Engagement Period, then the Company will pay Maxim upon the
closing of such financing the compensation equivalent to that set for in Paragraphs 5 and 12. “Cause,” for
the purpose of this agreement, shall mean, as determined by a court of competent jurisdiction, Mazim’s gross negligence,
willful misconduct, or material breach of this agreement, after being notified in writing of such conduct, and not curing such
alleged conduct within ten (10) days of notification.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 6

	 

 

16. The
Company represents and warrants to Maxim that the entry into this engagement letter or the any other action of the Company in connection
with the proposed Offering will not violate any agreement between the Company and any other underwriter.

 

17. The
Company agrees that it will not issue press releases or engage in any other publicity, without Maxim’s prior written consent,
commencing on the date hereof and continuing for a period of forty five (45) days from Closing of the Offering, other than normal
and customary releases issued in the ordinary course of the Company’s business. The Company covenants to adhere to all “gun
jumping” and “quiet period” rules and regulations of the Commission prior to, during and following the filing
of the Registration Statement and the consummation of the Offering.

 

18. During
the Engagement Period or until the Closing, the Company agrees to cooperate with Maxim and to furnish, or cause to be furnished,
to Maxim, any and all information and data concerning the Company, its subsidiaries and the Offering that Maxim deems appropriate,
including, without limitation, the Company’s acquisition plans and plans for raising capital or additional financing (the
“Information”). The Company shall provide Maxim reasonable access during normal business hours from and after
the date of execution of this agreement until the date of the Closing to all of the Company’s and its subsidiaries assets,
properties, books, contracts, commitments and records and to the Company’s and its subsidiaries officers, directors, employees,
appraisers, independent accountants, legal counsel and other consultants and advisors. The Company represents and warrants to Maxim
that all Information: (i) made available by the Company to Maxim or its agents, representatives and any potential syndicate or
selling group member, (ii) contained in any preliminary or final Prospectus prepared by the Company in connection with the Offering,
and (iii) contained in any filing by the Company with any court or governmental regulatory agency, commission or instrumentality,
will be complete and correct in all material respects and will not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements therein not misleading in the light of the circumstances under which such statements
are made. The Company further represents and warrants to Maxim that all such Information will have been prepared by the Company
in good faith and will be based upon assumptions which, in light of the circumstances under which they were made, are reasonable.
The Company acknowledges and agrees that in rendering its services hereunder, Maxim will be using and relying on such information
(and information available from public sources and other sources deemed reliable by Maxim) without independent verification thereof
by Maxim or independent appraisal by Maxim of any of the Company’s assets. The Company acknowledges and agrees that this
engagement letter and the terms hereof are confidential and will not be disclosed to anyone other than the stockholders, officers
and directors of the Company and the Company’s accountants and legal counsel. Except as contemplated by the terms hereof
or as required by applicable law, Maxim shall keep strictly confidential and not use for any purpose except in connection with
the Offering all non-public Information concerning the Company provided to Maxim. No obligation of confidentiality shall apply
to Information that: (a) is in the public domain as of the date hereof or hereafter enters the public domain without a breach by
Maxim, (b) was known or became known by Maxim prior to the Company’s disclosure thereof to Maxim, (c) becomes known to Maxim
from a source other than the Company, and other than by the breach of an obligation of confidentiality owed to the Company, (d)
is disclosed by the Company to a third party without restrictions on its disclosure or (e) is independently developed by Maxim.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 7

	 

 

19. Company
represents that it will use its commercially reasonable best efforts to use Maxim’s Corporate Services Department with respect
to the Company’s stock option incentive program.

 

20. This
engagement letter shall be deemed to have been made and delivered in New York City and both this engagement letter and the transactions
contemplated hereby shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal
laws of the State of New York, without regard to the conflict of laws principles thereof.

 

21. The
Company agrees that any and all decisions, acts, actions, or omissions with respect to the Offering shall be the sole responsibility
of the Company, and that the performance by Maxim of services hereunder will in no way expose Maxim to any liability for any such
decisions, acts, actions or omissions of the Company.

 

22. Maxim
reserves the right to reduce any item of its compensation or adjust the terms thereof as specified herein in the event that a determination
and/or suggestion shall be made by FINRA to the effect that the underwriters’ aggregate compensation is in excess of FINRA
rules or that the terms thereof require adjustment; provided, however, the aggregate compensation otherwise to be paid to the underwriters
by the Company may not be increased above the amounts stated herein without the approval of the Company.

 

23. Maxim
and the Company: (i) agree that any legal suit, action or proceeding arising out of or relating to this engagement letter and/or
the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United
States District Court for the Southern District of New York, (ii) waive any objection which they may have or hereafter to the venue
of any such suit, action or proceeding, and (iii) irrevocably consent to the jurisdiction of the New York Supreme Court, County
of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.
The parties hereby expressly waive all rights to trial by jury in any suit, action or proceeding arising under this agreement.
Maxim and the Company further agree to accept and acknowledge service of any and all process which may be served in any such suit,
action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York and agree that service of process upon the Company sent by certified mail or private carrier (Federal Express,
UPS or equivalent) to the Company’s address shall be deemed in every respect effective service of process upon the Company,
in any such suit, action or proceeding, and service of process upon Maxim mailed by certified mail to Maxim’s address shall
be deemed in every respect effective service process upon Maxim, in any such suit, action or proceeding. Notwithstanding any provision
of this engagement letter to the contrary, the Company agrees that neither Maxim nor its affiliates, and the respective officers,
directors, employees, agents and representatives of Maxim, its affiliates and each other person, if any, controlling Maxim or any
of its affiliates, shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or
in connection with the engagement and transaction described herein except for any such liability for losses, claims, damages or
liabilities incurred by us that are finally judicially determined to have resulted from the bad faith or gross negligence of such
individuals or entities. Maxim will act under this engagement letter as an independent contractor with duties to the Company. Because
Maxim will be acting on the Company’s behalf in this capacity, it is Maxim’s practice to receive indemnification. A
copy of Maxim’s standard indemnification form is attached to this engagement letter as Exhibit A.

 

(Signature Page and Exhibit A Follows)

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 8

	 

 

We are delighted at
the prospect of continuing our working relationship with you. If you are in agreement with the foregoing, please execute and return
two copies of this engagement letter to the undersigned together with payment for the Initial Advance in the amount of $25,000.
This engagement letter may be executed in counterparts and by facsimile transmission.

 

	 	Yours truly,
	 	 
	 	MAXIM GROUP LLC
	 	 
	 	By: 	/s/ Lawrence C. Glassberg
	 	 	Name: Lawrence C. Glassberg
	 	 	Title: Senior Managing Director,

Investment Banking
	 	 
	 	By:	 /s/ Clifford A. Teller
	 	 	Name: Clifford A. Teller
	 	 	Title: Executive
    Managing Director and

Head of Investment Banking

 

	 
	ACCEPTED AND AGREED TO AS OF
	THE DATE FIRST ABOVE WRITTEN:
	 
	180 LIFE SCIENCES CORP.

 

	By: 	/s/ James N. Woody MD PhD	 
	 	Name: James N. Woody MD PhD	 
	 	Title: CEO 180 Life Sciences Corp.	 

 

(Signature Page to Engagement Letter)

 

(Indemnification Letter Begins on Next Page)

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 9

	 

 

EXHIBIT A

 

INDEMNIFICATION PROVISIONS

 

In connection with
the engagement letter to which this Exhibit A is attached (the “Engagement Letter”), the Company (the “Indemnitor”)
agrees to indemnify and hold harmless Maxim and its affiliates, and the respective officers, directors, employees, agents and representatives
of Maxim, its affiliates and each other person, if any, controlling Maxim or any of its affiliates (Maxim and each such other person
being an “Indemnified Person”) from and against any losses, claims, damages or liabilities related to, arising
out of or in connection with the engagement (the “Engagement”) under the Engagement Letter, and will reimburse
each Indemnified Person for all reasonable expenses (including reasonable fees and expenses of counsel) as they are incurred in
connection with investigating, preparing, pursuing or defending any action, claim, suit, investigation or proceeding related to,
arising out of or in connection with the Engagement, whether or not pending or threatened and whether or not any Indemnified Person
is a party. The Indemnitor will not, however, be responsible for any losses, claims, damages or liabilities (or expenses relating
thereto) that are judicially determined in a judgment not subject to appeal to have resulted from the bad faith or, gross negligence
or intentional misconduct of any Indemnified Person.

 

The Indemnitor will
not, without Maxim’s prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek
to terminate any action, claim, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not
any Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination includes a release of each
Indemnified Person from any liabilities asserted against such Indemnified Person arising out of such action, claim, suit or proceeding.
No Indemnified Person seeking indemnification, reimbursement or contribution under this agreement will, without the prior written
consent of the Indemnitor, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any action,
claim, suit, investigation or proceeding referred to in the preceding paragraph.

 

If the indemnification
provided for in the first paragraph of this Exhibit A is judicially determined to be unavailable (other than in accordance with
the second sentence of the first paragraph hereof) to an Indemnified Person in respect of any losses, claims, damages or liabilities
referred to herein, then, in lieu of indemnifying such Indemnified Person hereunder, the Indemnitor shall contribute to the amount
paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (and expense relating thereto):
(i) in such proportion as is appropriate to reflect the relative benefits to the applicable Indemnified Person, on the one hand,
and the Indemnitor, on the other hand, of the Engagement or (ii) if the allocation provided by clause (i) above is not available,
in such proportion as is appropriate to reflect not only the relative benefits referred to in such clause (i) but also the relative
fault of each of the applicable Indemnified Person and the Indemnitor, as well as any other relevant equitable considerations;
provided, however, that in no event shall any Indemnified Person’s aggregate contribution to the amount paid or payable
exceed the aggregate amount of fees actually received by Maxim under the Engagement Letter. Assuming that the Indemnitor have fully
satisfied or agreed to satisfy the amount of their obligations provided for herein to the Indemnified Persons, and have agreed
that the Indemnified Persons shall have no further liabilities in connection therewith, then the Indemnitor may take control of
any pending action or litigation in order to reduce the expenses in connection therewith. For the purposes of this Exhibit A, the
relative benefits to the Indemnitor and the applicable Indemnified Person of the Engagement shall be deemed to be in the same proportion
as: (a) the total net value paid or contemplated to be paid or received by the Indemnitor and its affiliates (including the Company’s
stockholders), as the case may be, in the transaction or transactions that are the subject of the Engagement, whether or not any
such transaction is consummated, bears to (b) the fees paid to Maxim in connection with the Engagement.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 10

	 

 

Procedure. Upon
obtaining knowledge of any claim which may give rise to indemnification not involving a Third Party Claim, the Indemnified Person
shall, as promptly as practicable following the date the Indemnified Person has obtained such knowledge, give written notice (which
may be delivered by facsimile transmission, with confirmation of receipt by the receiving party) of such claim for which indemnification
is sought (each, a “Claim”) to the Indemnitor, but no failure to give such notice shall relieve the Indemnitor
of any liability hereunder (except to the extent that the Indemnitor have suffered actual, irreversible and material economic prejudice
thereby). The Indemnified Person, at its cost, shall furnish to the Indemnitor in good faith and in reasonable detail such information
as the Indemnified Person may have with respect to such Claim and shall, to the extent practicable, cooperate in the defense of
the Claim.

 

Promptly after receipt
by an Indemnified Person of notice of the commencement of any action, suit or proceeding involving a Claim by a third party (each,
a “Third Party Claim”) against it, such Indemnified Person will give written notice to the Indemnitor of the
commencement of such Third Party Claim, and shall give the Indemnitor such information with respect thereto as the Indemnitor may
reasonably request, but no failure to give such notice shall relieve the Indemnitor of any liability hereunder (except to the extent
the Indemnitor has suffered, actual, irreversible and material economic prejudice thereby). The Indemnitor shall have the right,
but not the obligation, to assume the defense and control the settlement of such Third Party Claim, at their cost and expense (and
not as a reduction in the amount of indemnification available hereunder), using counsel selected by the Indemnitor and reasonably
acceptable to the Indemnified Person. If the Indemnitor satisfies the requirements of this Exhibit A and desire to exercise our
right to assume the defense and control the settlement of such Third Party Claim, the Indemnitor shall give written notice (the
“Notice”) to the Indemnified Person within fourteen (14) calendar days of the Indemnified Person furnishing
to Indeminitors reasonable detail of all the facts and circumstanced giving rise to the Third Party Claim and receipt of notice
from the Indemnified Person of the commencement of or assertion of any Third Party Claim stating that the Indemnitor shall be responsible
for such Third Party Claim. Notwithstanding the foregoing, the Indemnified Person shall have the right: (i) to assume the defense
and control the settlement of a Third Party Claim and (ii) to employ separate counsel at our reasonable expense (provided that
the Indemnitor shall not be required to reimburse the expenses and costs of more than one law firm) and control its own defense
of a Third Party Claim if (x) the named parties to any such action (including any impleaded parties) include both the Indemnified
Person and us, and the Indemnified Person shall have been advised by counsel that there are one or more legal or equitable defenses
available to the Indemnified Person that are different from and in conflict with those available to the Indemnitor or (y) the Indemnitor
may not be able to satisfy fully such Third Party Claim. In addition, if the Indemnitor fails to give the Indemnified Person the
Notice in accordance with the terms hereof, the Indemnified Person shall have the right to assume control of the defense of and
settle the Third Party Claim and all costs incurred in connection therewith shall constitute damages of the Indemnified Person.
For the avoidance of doubt, the Indemnitor acknowledges that it will advance any retainer fees required by legal counsel to an
Indemnified Person simultaneously with the engagement by such Indemnified Person of such counsel, it being understood and agreed
that the amount of such retainer shall not exceed $20,000 and that such retainer shall be credited to fees incurred with the balance
(if any) refundable to the Indemnitor.

 

If at any time after
the Indemnitor assumes the defense of a Third Party Claim, any of the conditions set forth in the paragraph above are no longer
satisfied, the Indemnified Person shall have the same rights as set forth above as if the Indemnitor never assumed the defense
of such claim.

 

Notwithstanding the
foregoing, the Indemnitor or the Indemnified Person, as the case may be, shall have the right to participate, at the Indemnitor’s
or the Indemnified Person’s own expense, in the defense of any Third Party Claim that the other party is defending.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

 

     

     

    

 

	180 Life Sciences Corp.

January 2021

Page 11

	 

 

If the Indemnitor
assumes the defense of any Third Party Claim in accordance with the terms hereof, the Indemnitor shall have the right, upon
20 calendar days’ prior written notice to the Indemnified Person, to consent to the entry of judgment with respect to,
or otherwise settle such Third Party Claim; provided, however, that with respect to such consent to the entry of judgment or
settlement, the Indemnified Person will not have any liability and will be fully released with respect to all Third Party
Claims. Notwithstanding the foregoing, the Indemnitor shall not have the right to consent to the entry of judgment with
respect to, or otherwise settle a Third Party Claim if: (i) the consent to judgment or settlement of such Third Party Claim
involves equitable or other non-monetary damages against the Indemnified Person, or (ii) without the prior written consent of
the Indemnified Person. In addition, the Indemnified Person shall have the sole and exclusive right to settle any Third Party
Claim on such terms and conditions as it deems reasonably appropriate to the extent such Third Party Claim settlement
involves only equitable or other non-monetary relief, and shall have the right to settle any Third Party Claim involving
monetary damages with our consent, which consent shall not be unreasonably withheld.

 

Members FINRA
& SIPC

405 Lexington
Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.comExhibit 10.3

 

 

February 18, 2021

 

VIA ELECTRONIC DELIVERY

 

James N. Woody, M.D., Ph.D.

Chief Executive Officer

 

Ozan Pamir

Chief Financial Officer

 

180 Life Sciences Corp.

830 Menlo Avenue, Suite 100

Menlo Park, CA 94025

 

		Re:	Amendment to Engagement Letter

 

Gentlemen:

 

This letter (this “Amendment”) amends the
engagement letter dated January 26, 2021 (the “Agreement”), between 180 Life Sciences Corp. (the “Company”)
and Maxim Group LLC (“Maxim”). Capitalized terms used herein and not otherwise defined have the meanings ascribed
to them in the Agreement.

 

For good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and Maxim agree to the following:

 

1. The
definition of an “Alternative Transaction” shall be amended, for the avoidance of doubt, to clarify that such term
includes any public or private placement of equity, equity-linked, warrants, convertible or debt securities and any warrant solicitations
or similar transactions in which Maxim solicits current security holders of the Company to exercise outstanding securities, and
the definition of “Securities” shall be amended, for the avoidance of doubt, to include any securities that may also
be issued in an Alternative Transaction.

 

2. This
Agreement is hereby amended to include in the definition of “Offering,” or, where applicable, substitute for the term
“Offering,” any Alternative Transaction that the Company pursues during the Engagement Period in which Maxim is acting
as the Company’s financial advisor, underwriter, book runner, placement agent, solicitation agent or in any such other capacity
as the Company and Maxim negotiate and agree in accordance with the terms of the Agreement. References in the Agreement related
to a public Offering of Securities shall similarly, where and when applicable, be substituted for references related to the type
of Alternative Transaction that is being consummated by the Company (by way of example, references to the Company filing a Registration
Statement for initial issuance of Securities in the Offering shall be deemed not applicable and references to Maxim acting as an
underwriter in the Offering shall be substituted with references of Maxim acting as a placement agent if the Company agrees to
an Alternative Transaction in the form of a private placement). Maxim’s agreement to act in any capacity with respect to
any Alternative Transaction is, in each case, subject to, among other things, completion of Maxim’s due diligence examination
of the Company and its affiliates at the time of any such Alternative Transaction in accordance with the terms of the Agreement.

 

    

     

    

 

 

3. The
first sentence of Section 1 of this Agreement is hereby amended to read:

 

“The Company hereby engages Maxim, for
the period beginning on the date hereof and ending on June 30, 2021, or in the event that the Company pursues an Alternative Transaction
in which Maxim is involved in any capacity, such later date as the Company and Maxim shall mutually agree is appropriate for the
terms and circumstances of and relating to such Alternative Transaction (the “Engagement Period”), to
act as the Company’s financial advisor, sole managing underwriter and sole book runner, or in the case of an Alternative
Transaction, to act as the Company’s placement agent, solicitation agent or to act in such other capacity and perform such
actions as the Company and Maxim shall negotiate and mutually agree.”

 

4. The
first sentence of Section 5 of the Agreement is hereby amended to read:

 

“An underwriting discount or spread
of seven percent (7%) of Company securities offered to the public in a public Offering, or in the event of an Alternative Transaction,
a fee of seven percent (7%) of the gross proceeds received by the Company in such Alternative Transaction, shall be provided to
Maxim.”

 

5. The
Agreement is hereby amended to add the following provisions to Section 13, as Sections 13(j)-(q), following Section 13(i), all
of which shall apply specifically, and be conditions, to an Alternative Transaction:

 

“(j) The Company shall have entered into a securities
purchase agreement, solicitation agreement or other agreement (each an “Investor Agreement,” together, the “Investor
Agreements”) with each of the investors in the Alternative Transaction, and such agreements shall be in full force and
effect and shall contain representations, warranties and covenants of the Company as agreed between the Company and the investors;

 

(k) The Company shall
have delivered to Maxim at the initial closing of the Alternative Transaction and at each subsequent closing of the Alternative
Transaction a certificate executed on behalf of the Company by its President and Chief Financial Officer dated as of the applicable
closing date, to the effect that, as of the applicable closing date, the representations and warranties of the Company contained
herein were and are accurate, and that, as of the applicable date, the obligations to be performed by the Company hereunder and
under the transaction documents for the Alternative Transaction on or prior thereto have been fully performed;

 

(l) The Company shall
have delivered to Maxim at the initial closing of the Alternative Transaction a certificate executed on behalf of the Company by
its Secretary (i) certifying the resolutions adopted by the Board of Directors of the Company approving the Alternative Transaction,
the associated transaction documents, including the adoption and filing of a certificate of designations, if necessary, and the
issuance of the securities in the Alternative Transaction, (ii) certifying and providing copies of the current versions of the
Company’s charter documents and (iii) certifying as to the signatures and authority of persons signing the transaction documents
and related documents on behalf of the Company in the Alternative Transaction;

 

(m) The Company shall
have delivered to Maxim at the initial closing of the Alternative Transaction a certificate addressed to Maxim and dated such date,
of the Company’s regulatory affairs officer, in form and substance satisfactory to Maxim;

 

(n) Maxim shall have
received the favorable opinion of the law firm designated by the Company as its legal counsel for this purpose, in the form and
substance reasonably satisfactory to Maxim;

 

    2

     

    

 

 

(o) Maxim shall not
have discovered and disclosed to the Company on or prior to the closing date that the transaction documents for the Alternative
Transaction or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion of counsel for
Maxim, is material or omits to state any fact which, in the opinion of such counsel, is material and is required to be stated therein
or is necessary to make the statements therein not misleading; and

 

(p) All obligations
and conditions for closing under the Investor Agreements between the Company and the investors shall have been met; and

 

(q) The Company shall
have delivered to Maxim such further information, certifications and documents as Maxim may reasonably request. ”

 

6. Section
14 of the Agreement is hereby amended to read:

 

“Upon the closing of each Offering (including,
for the avoidance of doubt, an Alternative Transaction) (each, a “Closing”), for a period of twelve (12) months
from such Closing, the Company grants Maxim the right of first refusal to act as a sole managing underwriter, sole book runner
or sole placement agent, as applicable, for any and all future public and private equity, equity-linked, convertible and debt offerings,
and to act as the exclusive solicitation agent in connection with any and all future solicitations by the Company for the purchase
of any outstanding equity or equity-linked securities of the Company (each a “Future Financing”) during such
twelve (12) months period. The rights contained in this Section 14 shall apply with respect to the Company and any successor to,
or any subsidiary of, the Company.”

 

7. Each
of the representations and warranties (together with any related disclosure schedules thereto) and covenants made by the Company
to any investors or purchasers in the Investor Agreements in connection with an Alternative Transaction is hereby incorporated
herein by reference into the Agreement (as though fully restated therein) and is, as of the date of the Investor Agreement and
as of the closing date of the Alternative Transaction, hereby made to, and in favor of, Maxim.

 

8. The
Company represents and warrants to Maxim that neither the entry into this Amendment, nor any other action of the Company in connection
with an Offering, will violate any agreement between the Company and any other placement, solicitation, or other similar agent.

 

This Amendment may be executed in counterparts
and by electronic or facsimile transmission.

 

[Signature page
follows]

 

    3

     

    

 

	 	Yours tru ly,
	 	 
	 	Maxim Group LLC
	 	 
	 	/s/ Clifford A. Teller
	 	By: Clifford A. Teller
	 	Title: Executive Managing Director and Head of Investment Banking

 

ACCEPTED AND AGREED
TO AS OF

THE DATE FIRST ABOVE
WRITTEN:

 

180 Life Sciences Corp.

 

	/s/ Ozan Pamir	 
	By: Ozan Pamir	 
	Title: CFO	 

 

[Signature Page to Amendment to Engagement
Letter]

 

 

4

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