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mlfb_ex102.htm

EXHIBIT 10.2
  
 SECURITIES PURCHASE AGREEMENT
  
 THIS SECURITlES PURCHASE AGREEMENT (‘Agi”eement”) is made as of June [ 20 ], 2017, by and between Major League Football, Inc., a Delaware corporation (the “Company”), and Compass Creek Capital, Inc., a California corporation (the “Investor”).
  
 RECITALS
  
 WHEREAS, the Company wishes to sell to Investor, and Investor wishes to purchase from the Company, 42,857,143 shares of the Company’s Series A preferred stock and the option to purchase up to 171,428,571 additional shares of the Company’s Series A preferred stock at the price of $0.07, in exchange for $3,000,000, subject to the terms and conditions set forth herein.
  
 WHEREAS, in connection with the transactions contemplated by this Agreement, the Company shall appoint Investor’s designee, Jerry C. Craig, as the President and Chief Executive Officer and as a member of the Company’s board of directors, subject to the terms and conditions set forth herein.
  
 WHEREAS, subsequent to the closing of this Agreement, and subsequent to the Company making all requisite and appropriate filings with all applicable filing agencies, the Company intends to enter into second securities purchase agreement with the Investor, pursuant to the same or similar terms (as applicable) to this Agreement, to sell the Investor up to $12,000,000 of the Company’s preferred stock at the stock price of $0.07 and appoint two additional Investor designee’s as members of the Company’s board of directors.
  
 NOW, THEREFORE , in consideration of the premises and the mutual covenants set forth in this Agreement, the parties agree as follows;
  
 Section 1. Purchase and Sale.
  
 1.1 Sale and Issuance of New Securities. Subject to the terms and conditions of this Agreement, the Investor agrees to purchase and the Company agrees to sell and issue to the Investor 42,857,143 shares of the Company’s convertible preferred stock (the ‘‘Preferred Stock” or the “‘Securities”) at the purchase price of $.07 per share for a total of U.S $3 Million ($3,000,000). The Preferred Stock shall have the rights, preferences, powers, restrictions and limitations set forth in the certificate of designation of the Company in the form attached hereto as Exhibit A (the “Certificate of Designation”).
  
 1.2 Closing. The closing shall be on or before June [3th], 2017 whereby the purchase and sale of the Preferred Stock being purchased by the Investor shall occur and take place at the offices of Company, at 1:00 p.m., or at such other time and place as the Company and the Investors mutually agree upon (the “Closing Dste”), but no later than June [8th], 2017. At the closing, the Company shall deliver to the Investor (i) a certificate representing 42,857,143 shares of Preferred Stock and (ii) shall comply with the covenants described in paragraph 7. The Company shall deliver certificates representing the Preferred Stock to the Investor at the Closing bearing an appropriate legend referring to the fact that the shares of Preferred Stock were sold in reliance upon an exemption from registration under the Securities Act.
   	 
	
	 
 
	 

  
 1.3 Delivery of Funds. Payment for the securities shall be received by the Company from the Investor by means approved by the Company on a mutually agreed upon schedule. The initial U.S. $2 Million ($2,000,000) funds shall be deposited into the Company’s newly created Bank Account no later than 7 days from the Closing Date. The remaining U.S. $1 Million ($1,000,000) shall be deposited within 30 days after the first deposit. If the total funds are not deposited into the Company’s Bank Account, then any shares not paid for shall automatically revert back to the Company.
  
 1.4 Use of Proceeds. The CEO, in consultation with the Board and other officers, will determine the priority, veracity and necessity of company payables previously incurred by the Company, set forth in Schedule 1.3, Investor and new management makes no warranty on the time or amount of such payments.
  
 Sectioa 2. Representations and Warranties of the Company. Except as contained in or set forth on Scheduie 2, the Company hereby represents and warrants to the Investor that:
  
 2.1 Incorporation. The Company is a corporation duly organized and validly existing, is in good standing under the laws of the state or other place of its incorporation, has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted, and the Company is qualified as a foreign corporation in each jurisdiction where the failure so to qualify would have a material adverse effect on its business or operations.
  
 2.2 Capitalization. The authorized capital of the Company is as described in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2016 filed with the United States Securities and Exchange Commission on July 29, 2016 (the “2016 Form 10-K’’); except that since July 29, 2016 (the “Form 10-.K Date”) the Company has issued the securities set forth on Schedule 2 attached to this Agreement.
  
 2.3 Subsidiaries. The Company does not presently control, directly or indirectly, any other corporation, association or business entity.
  
 2.4 Authorization. All corporate action on the part of the Company, its officers and directors necessary for the authorization, execution, delivery and performance of all obligations of the Company under this Agreement, and for the authorization, issuance and delivery of the Securities being sold hereunder, has been or shall be taken prior to the Closing Date, and this Agreement, when executed and delivered, shall constitute a valid and legally binding obligation of the Company. Issuance of the Securities will not be subject to preemptive rights of any stockholders in the Company.
  
 2.5 Validity of Securities. The Securities to be purchased and sold pursuant to this Agreement, when issued, sold and delivered in accordance with its terms for the consideration expressed herein, shall be duly and validly issued, fully paid and nonassessable.
  
 2.6 Governmental Consents. All consents, approvals, orders, authorizations or registration, qualification, designation and declaration or filing with and federal or state governmental authority on the part of the Company required in connection with the consummation of the transactions contemplated herein shall have been obtained prior to, and be effective as of, the Closing Date or will be timely filed thereafter.
  
  	 
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 2.7 Compliance with Other Instruments. The Company is not in violation of any provisions of its respective Certificate of Incorporation, its Bylaws, any material mortgage, indenture, lease, agreement or other instrument to which it is a party, or of any material provision of any federal or state judgment, writ, decree, order, statute, rule or governmental regulation applicable to the Company. The execution, delivery and performance of this Agreement will not result in any such violation or be in conflict with or constitute a default under any such provision.
  
 2.8 Litigation. There are no actions, proceedings or investigations pending, or to the knowledge of the Company threatened, which question the validity of this Agreement or, except as described in the 2016 Form 10-K, which might result, either individually or in the aggregate, in any material adverse change in the assets, conditions, affairs or prospects of the Company.
  
 2.9 Patents. The Company owns or have a valid right to use the patents, patent rights, licenses, trade secrets, trademarks, trademark rights, trade names or trade name rights or franchises, copyrights, inventions, and intellectual property rights being used to conduct their businesses as now operated and as now proposed to be operated; and the conduct of business as now operated and as now proposed to be operated does not and will not conflict with valid patents, patent rights, licenses, trade secrets, trademarks, trademark rights, trade names or trade name rights or franchises, copyrights, inventions, and intellectual property rights of others. The Company has no obligation to compensate any person or entity for the use of any such patents or rights.
  
 2.10 Financial Statements. The financial statements of the Company included in the 2016 Form 10-K complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, were prepared in accordance with GAAP consistently applied during the periods presented (except, as noted therein, or, in the case of unaudited statements, as permitted by Form 10-Q of the SEC) and fairly present (subject, in the case of unaudited statements, to normal audit adjustments) the financial position of Company as of the date thereof and the results of their operations and their cash flows for the periods then ended.
  
 2.11 Absence of Certain Changes. Since the Form 10-K Date whether or not in the ordinary course of business, there has not occurred or arisen (a) any material adverse change in the financial condition, operations, business or prospects of the Company, or (b) any event, condition or state of facts of any character which materially or adversely affects, or may materially or adversely affect, the financial condition, operations, business or prospects of the Company.
  
 2.12 Tax Returns and Reports. All federal income tax and state franchise tax returns and tax reports required to be filed by the Company have been filed with the appropriate governmental agencies in all jurisdictions in which such returns or reports are required to be filed. All such returns and reports constitute complete and accurate representations, in all material respects, of the tax liabilities of the Company. All federal income tax and state franchise and other taxes (including interest and penalties) due from the Company have been fully paid or adequately provided for on the books and financial statements of the Company. None of the federal income tax returns of the Company have been audited by the Internal Revenue Service. The Company knows of no additional assessments or adjustments pending or threatened for any period, nor of any basis for any such assessment or adjustment. The Company has not entered into any agreements with federal and state taxing authorities extending the statute of limitations with respect to the assessment of federal and state taxes for any period.
   	 
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 2.13 Properties. The Company has good and marketable title to its real and personal properties and assets and valid leasehold interests in its leased properties as and to the extent carried on its books, including those reflected in the financial statements of the Company included in the 2016 Form 10-K, except properties and assets disposed of in the ordinary course of business, and none of such properties or assets is subject to any mortgage, pledge, charge, lien, security interest, encumbrance of joint ownership interest, except liens for taxes, assessments, or governmental charges or levies if the same shall not at the time be delinquent or thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings. The use of any property of the Company for the purpose for which it was acquired is not now, and, based upon the laws, regulations and ordinances in effect on the Closing Date, in the future will not be, curtailed to a material degree by any violations prior to the Closing Date by the Company of any law, regulation or ordinance (including, without limitation, laws, regulations or ordinances relating to zoning, environmental protection, city planning, or similar matters). The Company enjoys peaceful and undisturbed possession under all leases under which it is operating, and all said lease are valid and subsisting and in full force and effect.
  
 2.14 Agreements. The Company has not materially breached, nor has it received written notice of any claim or threatened claim that the Company has breached, any of the terms or conditions of any material agreement, contract, lease, commitment or understanding, the breach or breaches of which singly or in the aggregate could materially or adversely affect the financial condition, operations, business or prospects of the Company.
  
 2.15 Pension Benefit Plan. The Company does not have or make contributions to any pension, defined benefit or defined contribution plans which are subject to the Federal Employee Retirement Income Security Act of 1974, as amended (“ER1SA”).
  
 2.16 No Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.
  
 2.17 No Other Representations or Warranties. Except for the representations and warranties contained in this Section 2 (including the related portions of Exhibit 2), neither the Company nor any other person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Company.
  
 Section 3. Representations and Warranties of the Investor. The Investor represents and warrants to the Company as follows:
  
 3.1 Authorization, All company action on the part of the Investor, its officers and directors, managers and members, as the case may be, necessary for the authorization, execution, delivery and performance of all obligations of the Investor under this Agreement, including for the delivery of the cash consideration described in paragraph 1.2, has been or shall be taken prior to the Closing Date, and this Agreement, when executed and delivered, shall constitute a valid and legally binding obligation of the Investor.
   	 
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 3.2 Accredited investor, The Investor is an “accredited investor” as that term is defined in Rule 501 promulgated under the Securities Act of 1933, as amended (the “Act”), in that it is a partnership, corporation, limited liability company or business trust that has total assets of at least $5 million and was not formed for the purpose of investing the Company; (ii) is an entity in which all of the equity owners are accredited investors; (iii) a trust with total assets of at least $5,000,000, not formed for the specific purpose of investing in the Company, and whose purchase is directed by a person with such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment; or (iv) is another type of entity that meets the definition of an “accredited investor;” specifically:
 _____________________________________________
  
 3.3 Independent Investigation. Investor has conducted its own independent investigation, review and analysis of the business, results of operations, prospects, condition (financial or otherwise), assets or Securities and Exchange Commission reports of the Company, and acknowledges that it has been provided adequate access to the personnel. properties, assets, premises, books and records and other documents and data of the Company for such purpose. Investor acknowledges and agrees that (a) in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby and thereby, Investor has relied solely upon its own investigation and the express representations and warranties of the Company set forth in Section 2 of this Agreement (including the related portions of Schedule 2), and (b) neither the Company nor any other person has made any representation or warranty as to the Company or this Agreement, except as expressly set forth in Section 2 of thls Agreement (including the related portions of Scheduie 2). Investor has not been provided with any separate offering documents or materials.
  
 3.4 Prior Jm,estment Experience. The Investor is financially sophisticated and has significant prior investment experience, including investment in restricted and non-registered securities. The Investor is knowledgeable about investment considerations in microcap companies. The Investor has a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should occur. The Investor’s overall commitment to investments which are not readily marketable is not excessive in view of the Investor’s net worth and financial circumstances and the purchase of the Securities will not cause such commitment to become excessive. The investment is a suitable one for the Investor.
  
 3.5 Appropriate Investment The Investor has adequate means of providing for such Investor’s current financial needs and foreseeable contingencies and has no need for liquidity of its investment in the Securities for an indefinite period of time.
  
 3.6 Signfficant Risk. The Investor is aware that an investment in the Securities involves a number of very significant risks and has carefully researched the Company.
  
 3.7 Governmental Consents. All consents, approvals, orders, authorizations or registration, qualification, designation and declaration or filing with and federal or state governmental authority on the part of the Investor required in connection with the consummation of the transactions contemplated herein shall have been obtained prior to, and be effective as of, the Closing Date or will be timely filed thereafter.
   	 
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 3.8 No Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s. or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Investor.
  
 3.9 No Other Representations or Warrenties. Except for the representations and warranties contained in this Section 3 and Section 4 below, neither the Investor nor any other person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Investor.
  
 Section 4. Securities Act of 1933.
  
 4.1 Investment Representation.
  
 (a) This Agreement is made with the Investor in reliance upon its respective representations to the Company, which by its acceptance hereof the Investor hereby confirms, that the Securities to be received will be acquired for investment for an indefinite period for its own account and not with a view to the sale or distribution of any part thereof, and that it has no present intention of selling or otherwise distributing the same, but subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its control. By executing this Agreement, the Investor further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell or transfer to such person any of the Securities.
  
 (b) The Investor understands that the Securities are not and may never be registered under the Act on the ground that the sale provided for in this Agreement and the issuance of securities is exempt pursuant to Section 4(a)(2) of the Act and Rule 506 of Regulation D thereunder, and that the Company’s reliance on such exemption is predicated on its representations set forth herein.
  
 (c) The Investor agrees that in no event will it make a disposition of any of the Securities, unless the Securities shall have been registered under the Act, unless and until (i) it shall have notified the Company with a statement of the circumstances surrounding the proposed disposition and (ii) it shall have furnished the Company with an opinion of counsel reasonably satisfactory to the Company to the effect that (A) such disposition will not require registration of such securities under the Act, and (B) that appropriate action necessary for compliance with the Act has been taken. Notwithstanding the foregoing. the Investor may distribute any of the Securities to the owners of its equity.
  
 (d) The Investor represents that it is able to fend for itself in the transactions contemplated by this Agreement, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, has the ability to bear the economic risks of its investment and has been furnished with and has had access to such information as would be made available in the form of a registration statement together with such additional information as is necessary to verify the accuracy of the information supplied and to have all questions which have been asked by the Investor answered by the Company.
   	 
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 (e) The investor understands that if a registration statement covering the Securities under the Act is not in effect when it desires to sell any of the Securities, it may be required to hold such Securities for an indeterminate period. The Investor also acknowledges that it understands that any sale of the Securities which might be made by it in reliance upon Rule 144 under the Act may be made only in limited amounts in accordance with the terms and conditions of that Rule.
  
 4.2 Legends. All certificates for the Securities shall bear substantially the following legend:
  
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED BY THE INVESTOR FOR INVESTMENT PURPOSES. THE SECURITIES MAY NOT BE SOLD OR TRANSFERRED UNLESS (A) THEY HAVE BEEN REGISTERED UNDER SAID ACT, OR (B) THE TRANSFER AGENT (OR THE COMPANY IF THEN ACTING AS ITS TRANSFER AGENT) IS PRESENTED WITH EITIIER A WRITTEN OPINION SATISFACTORY TO COUNSEL FOR THE COMPANY OR A “NO-ACTION" OR INTERPRETIVE LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE CIRCUMSTANCES OF SUCH SALE OR TRANSFER.”
  
 4.3 Rule 144. The Company covenants and agrees that: (i) at a11 times while it is subject to the reporting requirements of Section 13 or l5(d) of the Securities Exchange Act of 1934 it will use its best efforts to comply with the current public information requirements of Rule l44(c)(l) under the Act; and (ii) it will furnish the lnvestors upon request with all information about the Company required for the preparation and filing of Form 144.
  
 Section 5. Conditions to Investors’ Obligations at Closing. The obligations of the Investors under paragraphs 1.1 and 1.2 of this Agreement are subject to the fulfillment at or before the Closing Date of each of the following conditions:
  
 5.1 Representations and Warranties. The representations and warranties contained in Section 2 hereof, subject to the disclosures contained in Schedule 2, shall be true on and as of the Closing Date, other than those representations and warranties contained in paragraph 2.2.
  
 5.2 Performance. The Company shall have performed and complied with all agreements and conditions contained herein required to be performed or complied with by it on or before the Closing Date.
  
 5.3 Reservation of Shares. The Company shall have reserved the requisite number of shares of its Preferred Stock for issuance and delivery to the Investor at the closing.
  
 5.4 State Securities Laws. The Company will have complied with all requirements under all applicable state blue sky securities laws with respect to the offer and sale of the Securities.
  
 5.5 Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the closing and all material documents and instruments incident to such transactions will be reasonably satisfactory in substance and form to the Investor and its counsel, and the Investor and its counsel will have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.
   	 
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 Section 6. Conditions of the Company’s Obligations at Closing. The obligations of the Company under paragraphs 1.1 and 1.2 of this Agreement are subject to the fulfillment at or before the closing of each of the following conditions:
  
 6.1 Representations and Warranties. The representations and warranties of the Investor contained in Sections 3 and 4.1 hereof shall be true on the Closing Date with the same effect as though said representations and warranties had been made on and as of the Closing Date.
  
 6.2 Performance. The Investor shall have performed and complied with all agreements and conditions contained herein required to be performed or complied with by it on the Closing Date.
  
 6.3 Proceedings and Documents. All company and other proceedings in connection with the transactions contemplated at the closing and all material documents and instruments incident to such transactions will be reasonably satisfactory in substance and form to the Company and its counsel, and the Company and its counsel will have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.
  
 7. Covenants. At the closing:
  
 7.1 Appointment as CEO and Board Member. At the closing, Jerry C. Craig shall be elected as the Company’s President and Chief Executive Officer and as a member of the Company’s board of directors.
  
 7.2 Directors & Officers Insurance Policy. As soon as practicable after the closing, the Company make the requisite payments to obtain a Directors & Officers insurance policy that is at least $1,000,000.
  
 7.3 Indemnification Agreement. At the closing, each new member of the Company’s Board of Directors shall enter into an Indemnification Agreement, the form of which is attached as Exhibit B.
  
 7.4 At the closing. Jerry C. Craig, as the President and Chief Executive Officer of the Company and Kris Craig, as Treasurer, the Company Treasurer, shall be authorized, empowered and directed to maintain the Company’s newly created bank account.
  
 7.5 Registration Rights Agreement. The Investor shall be entitled to receive registration rights pari passu with, and substantially the same as, any registration rights provided to holders of equity securities of the Company during the next round of financing of the Company.
  
 7.6 Key Executive and Founder Stock Right of Repurchase. Common stock owned by any key executive or founder with more than 2% of the prefinancing equity is subject to the right of repurchase by the company at the lower of (a) the fair market value (FMV) at the time of agreement or the FMV at the time of repurchase; or (b) $0.01 per share (if no FMV has been determined), If the founder leaves the company within the first four years. Such a right expires over four years on a monthly basis after the Initial Closing (2.083% per month for 48 months).
   	 
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 8. Miscellaneous.
  
 8.1 Agreement is Entire Contract. Except as specifically referenced herein, this Agreement constitutes the entire contract between the parties hereto concerning the subject matter hereof and no party shall be liable or bound to the other in any manner by any warranties, representations or covenants except as specifically set forth herein. This Agreement supersedes all prior agreements between the parties concerning the subject matter hereof. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties hereto. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement. except as expressly provided herein.
  
 8.2 Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware.
  
 8.3 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 8.4 Title and Subtitles. The titles of the sections, paragraphs and subparagraphs of this Agreement are for convenience and are not to be considered in construing this Agreement.
  
 8.5 Notices. Any notices or other communications to the parties required herein or permitted hereby shall be sufficiently given, and deemed to be delivered to a party, if sent by hand delivery, overnight courier service or other similar messenger service, or electronic mail, at the address set forth below; or to such other address as the parties shall designate to the other in writing. Notices shall be deemed received one (1) day after deposit with an overnight carrier or upon confirmation of receipt if sent by hand delivery or electronic mail:
  
  		 If to Investor:
	 Compass Creek Capital, Inc.
 jerry.craig@compasscreekcapital.com

		     
	
		 If to Company:
	 6230 University Parkway, Suite 301
 Lakewood Ranch, Florida 34240
 Rick Smith

  
 8.6 Finder’s Fee. Each party hereto represents that it is not, and will not be, obligated for any finder’s fee or commission payable in cash in connection with this transaction. Each party hereto hereby agrees to indemnity and to hold harmless the other party hereto from any liability for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which any such party or any of its employees or representatives is responsible).
   	 
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 8.7 Legal Fees and Expenses. Each party hereto shall be responsible for its own legal fees incurred in connection with the negotiation and execution of this Agreement, except that the Company shall pay $15,000 to Investor’s counsel subsequent to the closing.
  
 8.8 Other Miscellaneous. This Agreement may not be modified or amended except in writing executed in counterparts, each of which will be deemed an original and all of which will constitute one and the same instrument. Neither party may assign this Agreement without the prior written consent of the other party. If any provision of this Agreement shall for any reason be held invalid or unenforceable by any court, governmental agency or arbitrator of competent jurisdiction, such invalidity or unenforceability shall not affect any other provision hereof, but this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. Any ambiguity in this Agreement shall not be construed against either party as the drafter. The parties hereto shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and no party shall have the power to bind or obligate another except as set forth herein.
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above in the capacities described.
  
  	 	MAJOR LEAGUE FOOTBALL, INC.	
	 	 	 	 
	______________________	By:		
	 Witness
	 Name:
	Rick Smith	 
	 	Its:		 
	 	 	 	 
	  
	 COMPASS CREEK CAPITAL, INC.
	  

	  
	  
	  
	  

	 _____________________
	 By:
	  
	  

	 Witness
	 Name:
	 Jerry C. Craig
	  

	  
	 Its:
	  
	  

   
  	 
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 Schedule 1.3,
  
 Use of Proceeds
  
 The CEO, in consultation with the Board and other officers will determine the priority, veracity
 and necessity of company payables previously incurred by the Company in disbursing this initial
 and other proceeds of the stock purchase by Compass Creek, Inc., exercising due care in the best
 interests of its shareholders. Current management has made certain suggestions set forth below
 which will be subject to the above review process for these and any other disbursements.  
 Compass Creek and new management makes no warranty on the time or amount of such
 payments until its review is completed.
  
 	  
	  
	 ($)
	  

	 B-21 Technologies
	  
	  
	3198	  

	 BHDHMQ1
	  
	  
	157000	  

	 Marcelo Morinigo
	  
	  
	4,500	  

	 David M Bovi PA
	  
	  
	212,654	  

	 Edgar Filings
	  
	  
	2,671	  

	 Empire Travel
	  
	  
	34,981	  

	 FloridaP & L
	  
	  
	489	  

	 Frank Murtha
	  
	  
	6,521	  

	 Husted Kicking
	  
	  
	11,325	  

	 Laminia International
	  
	  
	84,984	  

	 Liquid Interactive
	  
	  
	153,016	  

	 Philadelohia Stock Transfer
	  
	  
	3150	  

	 Salberg & Companv
	  
	  
	42,439	  

	 TCA
	  
	  
	38,257	  

	 Basil Law Group
	  
	  
	1600	  

	 Thennish Law
	  
	  
	6,250	  

	 Verizon
	  
	  
	305	  

	 Bill Lutzen
	  
	  
	56000	  

	 Sea Otter
	  
	  
	145,000	  

	 Rick Smith
	  
	  
	291.739	  

	 Mike Queen
	  
	  
	291,739	  

	 Wes Chandler
	  
	  
	291,739	  

	 Ivorv Sullv
	  
	  
	98,804	  

	 Nick Athan
	  
	  
	75000	  

	 JJ Covne
	  
	  
	25,000	  

	 Notes
	  
	  
	130,000	  

	 Accrued interest
	  
	  
	12,174	  

	 Herm Edwards
	  
	  
	50000	  

	 Ronald Chew
	  
	  
	15000	  

	 Working Capital
	  
	  
	863270	  

	  

	 Total
	  
	  
	3,000,000	  

   	 
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 Schedule 2
  
 All reports filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since July 29, 2016 {the “:Form 10-:K Date”) are incorporated into this Exhibit 2 by reference (the “incorporated SEC Reports”).
  
 The following describes, as of January 31, 2017, all material subsequent events Company not otherwise described in the Incorporated SEC Reports:
  
 As of June 5, 2017 the Company had outstanding 57,035,520 shares of Common Stock
  
 Since May 1, 2017 the Company has been in default of its corporate office lease in Florida. The full amount outstanding is $19,129, and as a result of the default, the landlord may pursue all legal remedies including termination of the lease. The Company is in discussions with the landlord pay the outstanding balance to avoid the landlord filing a lawsuit against the Company for default or terminating the lease. The Company intends to use a portion of the proceeds from this offering to pay the outstanding $19,129 owed.
  
 H&J Ventures, LLC (“H&J”) is a debtor in a chapter 7 bankruptcy proceeding. On October 4, 2016, the chapter 7 trustee (the “Trustee”) of the bankruptcy estate of H&J sent a letter to the Company claiming that the Company owed $7,800,000 to H&J in connection with an October 1, 2014 agreement between the Company and H&J, and that the Trustee would accept a settlement payment of $6,630,000 to resolve the matter. The Company disputes this claim in its entirety. On December 9, 2016, the Trustee served the Company with a subpoena relating to this matter. The Company has retained counsel with respect to this matter and will respond to the subpoena as it is lawfully required to do; however, the Company considers this claim to be without merit.
  
 Sea Otter Convertible Note
  
 Promissory Note to Jerry C. Craig in the amount of $62,321.48 and dated April 28, 2017.
  
 [ENDJ
   	 
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 Exhibit A
  
 Certificate of Designation
  
  
  
  
 Exhibit B
  
 Indemnification Agreement
  
  
  
  
  
  
  
  
  
  
  	 
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 Schedule 1.3.
  
 Use of Proceeds
  
 The CEO, in consultation with the Board and other officers will determine the priority, veracity
 and necessity of company payables previously incurred by the Company in disbursing this initial
 and other proceeds of the stock purchase by Compass Creek, Inc., exercising due care in the best
 interests of its shareholders, Current management has made certain suggestions set forth below
 which will be subject to the above review process for these and any other disbursements. 
 Compass Creek and new management makes no warranty on the time or amount of such
 payments until its review is completed.
  
 	  
	  
	 ($)
	  

	 B-21 Technologies
	  
	  
	3,198	  

	 BHDHM!rt
	  
	  
	157,000	  

	 Marcelo Morinigo
	  
	  
	4,500	  

	 David M Bovi PA
	  
	  
	212,654	  

	 Edl!aI’ Filimzs
	  
	  
	2,671	  

	 Emoire Travel
	  
	  
	34981	  

	 FloridaP & L
	  
	  
	489	  

	 Frank Murtha
	  
	  
	6521	  

	 Husted Kicking
	  
	  
	11.325	  

	 Laminia International
	  
	  
	84984	  

	 LiQuid Interactive
	  
	  
	153,016	  

	 Philadelohia Stock Transfer
	  
	  
	3,150	  

	 Salber_g & Company
	  
	  
	42,439	  

	 TCA
	  
	  
	38,257	  

	 Basil Law Group
	  
	  
	1,600	  

	 Thennish Law
	  
	  
	6,250	  

	 Verizon
	  
	  
	305	  

	 Bill Lutzen
	  
	  
	56000	  

	 Sea Otter
	  
	  
	145,000	  

	 Rick Smith
	  
	  
	291,739	  

	 Mike Queen
	  
	  
	291,739	  

	 Wes Chandler
	  
	  
	291,739	  

	 Ivory SulJv
	  
	  
	98,804	  

	 Nick Athan
	  
	  
	75,000	  

	 JJCoyne
	  
	  
	25,000	  

	 Notes
	  
	  
	130,000	  

	 Accrued interest
	  
	  
	12,174	  

	 Henn Edwards
	  
	  
	50000	  

	 Ronald Chew
	  
	  
	15,000	  

	 Working Capital
	  
	  
	863.270	  

	  
	  
	  
	  
	  

	 Total
	  
	  
	3,000,000	  

   	 
	14
	 
 
	 

  
  			 jen-y.crui g@compa<;screekcapital.com

	  
	  
	   

		 If to Company:
	 6230 Univcri.ity Parkway, Suite 301
 Lakewood Ranch, Florida 34240
 Rick Smith

  
 8.6 Finda’s Fee. Each party hereto represents that it is not, and will not be, obligated for any tinder’s fee or commission payable in cash. In connection with this transaction. Each party hereto hereby agree to indemnity and to hold harmless the other party hereto from any liahility for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which any such party or any of its employ es or representatives is responsible).
  
 8.7 Legal Fees and Expenses. Each party hereto shall be responsible for its own legal fees incurred in connection with the negotiation and execution of this Agreement, except that the Company shall pay $15,000 to Investor;s counsel subsequent to the closing.
  
 8.8 Other MiscellaneQus. This Agreement may not be modified or amended except in writing executed in counterparts, each of which will be deemed an original and all of which will constitute one and the same instrument. Neither party may assign this Agreement without tb.e prior written consent of the other party. If any provision of this Agreement shall for any reason be held invalid or unenforceable by any court, governmental agency or arbitrator of compet nt jurisdiction, such invalidity or unenforceability shall not affect any other provision hereof, but this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. Any ambiguity in this Agreement shall not be construed against either party as the drafter. The parties hereto shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and no party shall have the power to bind or obligate another except as set forth herein.
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above in the capacities described.
  
  	 	MAJOR LEAGUE FOOTBALL, INC.	
	  	  	 	 
	  
       	By:		
	 Name: 
	Rick Smith	 
	Its:	C.0.0.______________	 
	  	 	 
	                  
	  
  
	  

  
  
  	15Exhibit 4.21

 

THIS
WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. EXCEPT AS OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF JUNE 3, 2018 (THE “SECURITIES
PURCHASE AGREEMENT”), NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE,
CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT, THE SUBSTANCE
OF WHICH OPINION SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

Right
to Purchase 300,000 shares of Common Stock, par value $0.001 per share

 

STOCK
PURCHASE WARRANT

 

THIS
CERTIFIES THAT, for value received, David S Nagelberg 2003 Revocable Trust Dtd 7/2/03 (“Holder”) or its
assigns, is entitled to purchase from Adial Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
at any time or from time to time during the period specified in Paragraph 2 hereof and subject to adjustment as provided
herein, 300,000 fully paid and nonassessable shares of the Company’s Common Stock, par value $0.001 per share (the
“Common Stock”), at an exercise price per share equal to $3.75 per share of Common Stock (the “Exercise
Price”). The term “Warrant Shares,” as used herein, refers to the shares of Common Stock purchasable hereunder.
The Warrant Shares and the Exercise Price are subject to adjustment as provided in Paragraph 3and Paragraph 5 hereof. The term
“Warrant” means this Stock Purchase Warrant issued pursuant to that certain Securities Purchase Agreement, dated June
3, 2018, by and among the Company and the Investor listed on the execution page thereof (the “Securities Purchase Agreement”).
In addition to the terms and conditions set forth herein, this Warrant is subject to the terms and conditions of the Securities
Purchase Agreement.

 

This
Warrant is subject to the following terms, provisions, and conditions:

 

1. Manner
of Exercise; Issuance of Certificates; Payment for Shares. Subject to the provisions hereof,
this Warrant may be exercised by the Holder, in whole or in part, by the surrender of this Warrant, together with a completed
exercise agreement in the form attached hereto (the “Exercise Agreement”), to the Company during normal business hours
on any business day at the Company’s principal executive offices (or such other office or agency of the Company as it may
designate by notice to the Holder), and upon payment to the Company in cash, by certified or official bank check or by wire transfer
for the account of the Company of the Exercise Price for the Warrant Shares specified in the Exercise Agreement or by “cashless
exercise” as provided below. The Warrant Shares so purchased shall be deemed to be issued to the Holder or such Holder’s
designee, as the record owner of such shares, as of the close of business on the date on which this Warrant shall have been surrendered,
the completed Exercise Agreement shall have been delivered, and payment shall have been made for such shares as set forth above.
Certificates for the Warrant Shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement,
shall be delivered to the Holder within a reasonable time, not exceeding three (3) business days, after this Warrant shall have
been so exercised. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company
shall, at its expense, at the time of delivery of such certificates, deliver to the Holder a new Warrant representing the number
of shares with respect to which this Warrant shall not then have been exercised.

 

     

     

    

 

This
Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled
to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= the average VWAP on the thirty (30) Trading Days immediately preceding the date on which Holder elects to exercise this Warrant
by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

 

(B)
= the Exercise Price of this Warrant, as adjusted; and

 

(X)
= the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of
a cash exercise rather than a cashless exercise.

 

“VWAP”
means, for any Trading Day, the price determined by the first of the following clauses that applies: (a) if Common Stock is then
traded or quoted on the Trading Market, the daily volume weighted average price of Common Stock for such Trading Day on the Trading
Market; (b) if Common Stock is not then traded or quoted on the Trading Market and if prices for Common Stock are then reported
in the “Pink Sheets” published by Pink Sheets, LLC (or a similar organization or agency succeeding to its functions
of reporting prices), the most recent bid price per share of Common Stock so reported as of such Trading Day; or (c) in all other
cases, the fair market value of a share of Common Stock as of such Trading Day, as determined by an independent appraiser selected
in good faith by the Holder and reasonably acceptable to the Company.

 

“Trading
Day” means, at any time, a day on which the Trading Market is open for the general trading or quotation of securities
and Common Stock is traded or quoted thereon or, if Common Stock is not then traded or quoted on the Trading Market, a business
day.

 

“Trading
Market” means, at any time, the securities exchange, quotation system or over-the-counter trading facility on which
Common Stock is principally traded or quoted at such time.

 

2. Period
of Exercise. This Warrant is exercisable at any time or from time to time on or after the
date on which this Warrant is issued and delivered pursuant to the terms of the Securities Purchase Agreement and before 5:00
p.m., New York, New York time on the fifth (5th) anniversary of the date of issuance (the “Exercise Period”).

 

3. Increase
in Number of Warrant Shares. In the event the next financing of the company of an amount
equal to or greater than $2,000,000 (the “Next Financing”) includes the issuance of more than one warrant with each
share of Common Stock sold in the Next Financing, then, the number of shares of Common Stock issuable under this warrant will
be equal to 300,000 multiplied by the ratio of the number of warrants to the number of shares in the next offering. For example,
if the Next Financing includes 2 warrants issued for each share issued, then the number Warrant Shares will be adjusted to be
600,000. Adjustment of the number of Warrant Shares under this Paragraph 3 is in addition to any adjustments under Paragraph 5
herein. For clarity, adjustment under this Section 3 would not change the Exercise Price.

 

    	 	2	 

     

    

 

4. Certain
Agreements of the Company. The Company hereby covenants and agrees as follows:

 

(a) Shares
to be Fully Paid. All Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be validly issued,
fully paid, and nonassessable and free from all taxes, liens, and charges with respect to the issue thereof.

 

(b) Reservation
of Shares. During the Exercise Period, the Company shall at all times have authorized, and reserved for the purpose of
issuance upon exercise of this Warrant, a sufficient number of shares of Common Stock to provide for the exercise in full of this
Warrant.

 

(c) Successors
and Assigns. This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation, or acquisition
of all or substantially all the Company’s assets.

 

5. Antidilution
Provisions. During the Exercise Period, the Exercise Price and the number of Warrant Shares
shall be subject to adjustment from time to time as provided in this Paragraph 5.

 

In
the event that any adjustment of the Exercise Price as required herein results in a fraction of a cent, such Exercise Price shall
be rounded up to the nearest cent.

 

(a) Subdivision
or Combination of Common Stock. If the Company at any time subdivides (by any stock split, stock dividend, recapitalization,
reorganization, reclassification or otherwise) the shares of Common Stock acquirable hereunder into a greater number of shares,
then, after the date of record for effecting such subdivision, the Exercise Price in effect immediately prior to such subdivision
will be proportionately reduced. If the Company at any time combines (by reverse stock split, recapitalization, reorganization,
reclassification or otherwise) the shares of Common Stock acquirable hereunder into a smaller number of shares, then, after the
date of record for effecting such combination, the Exercise Price in effect immediately prior to such combination will be proportionately
increased.

 

(b) Adjustment
in Number of Warrant Shares. Upon each adjustment of the Exercise Price pursuant to the provisions of this Paragraph 5,
the number of Warrant Shares issuable upon exercise of this Warrant shall be adjusted by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of Warrant Shares issuable upon exercise of this Warrant immediately
prior to such adjustment and dividing the product so obtained by the adjusted Exercise Price.

 

(c) Consolidation,
Merger or Sale. In case of any consolidation of the Company with, or merger of the Company into any other corporation
or other entity, or in case of any sale or conveyance of all or substantially all of the assets of the Company other than in connection
with a plan of complete liquidation of the Company, then as a condition of such consolidation, merger or sale or conveyance, adequate
provision will be made whereby the Holder of this Warrant will have the right to acquire and receive upon exercise of this Warrant
in lieu of the shares of Common Stock immediately theretofore acquirable upon the exercise of this Warrant, such shares of stock,
securities or assets as would be issued or payable with respect to or in exchange for the number of shares of Common Stock immediately
theretofore acquirable and receivable upon exercise of this Warrant in connection with such consolidation, merger or sale or conveyance.
In any such case, the Company will make appropriate provision to insure that the provisions of this Paragraph 5 hereof will thereafter
be applicable as nearly as may be in relation to any shares of stock or securities thereafter deliverable upon the exercise of
this Warrant. The Company will not effect any consolidation, merger or sale or conveyance unless prior to the consummation thereof,
the successor corporation or other entity (if other than the Company) assumes by written instrument the obligations under this
Paragraph 5(c) and the obligations to deliver to the Holder of this Warrant such shares of stock, securities or assets as, in
accordance with the foregoing provisions, the Holder may be entitled to acquire.

 

    	 	3	 

     

    

 

6. Issue
Tax. The issuance of certificates for Warrant Shares upon the exercise of this Warrant shall
be made without charge to the Holder of this Warrant or such shares for any issuance tax or other costs in respect thereof, provided
that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance
and delivery of any certificate in a name other than the Holder of this Warrant.

 

7. No
Rights or Liabilities as a Shareholder. This Warrant shall not entitle the Holder to any
voting rights or other rights as a shareholder of the Company. No provision of this Warrant, in the absence of affirmative action
by the Holder to purchase Warrant Shares, and no mere enumeration herein of the rights or privileges of the Holder, shall give
rise to any liability of such Holder for the Exercise Price or as a shareholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

8. Transfer,
Exchange, and Replacement of Warrant.

 

(a) Restriction
on Transfer. This Warrant and the rights granted to the Holder are transferable, in whole or in part, upon surrender of
this Warrant, together with a properly executed assignment in the form attached hereto, at the office or agency of the Company,
provided, however, that any transfer or assignment shall be subject to the conditions set forth in Paragraph 8(f) hereof and to
the applicable provisions of the Securities Purchase Agreement. Until due presentment for registration of transfer on the books
of the Company, the Company may treat the registered Holder as the owner and Holder for all purposes, and the Company shall not
be affected by any notice to the contrary. Notwithstanding the above, Holder may subdivide this warrant (i.e. transfer it in part)
no more than 3 times without the written consent of the Company in its sole discretion.

 

(b) Warrant
Exchangeable for Different Denominations. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
office or agency of the Company, for new Warrants of like tenor representing in the aggregate the right to purchase the number
of shares of Common Stock which may be purchased hereunder, each of such new Warrants to represent the right to purchase such
number of shares as shall be designated by the Holder at the time of such surrender.

 

(c) Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation
of this Warrant and, in the case of any such loss, theft, or destruction, upon delivery of an indemnity agreement reasonably satisfactory
in form and amount to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the
Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

(d) Cancellation;
Payment of Expenses. Upon the surrender of this Warrant in connection with any transfer, exchange, or replacement as provided
in this Paragraph 8, this Warrant shall be promptly canceled by the Company. The Company shall pay all taxes (other than securities
transfer taxes) and all other expenses (other than legal expenses, if any, incurred by the Holder or transferees) and charges
payable in connection with the preparation, execution, and delivery of Warrants pursuant to this Paragraph 8.

 

    	 	4	 

     

    

 

(e) Register.
The Company shall maintain, at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to the Holder), a register for this Warrant, in which the Company shall record the name and address of the person in
whose name this Warrant has been issued, as well as the name and address of each transferee and each prior owner of this Warrant.

 

(f) Exercise
or Transfer Without Registration. If, at the time of the surrender of this Warrant in connection with any exercise, transfer,
or exchange of this Warrant, this Warrant (or, in the case of any exercise, the Warrant Shares issuable hereunder), shall not
be registered under the Securities Act of 1933, as amended (the “Securities Act”) and under applicable state securities
or blue sky laws, the Company may require, as a condition of allowing such exercise, transfer, or exchange, (i) that the Holder
or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel, which opinion and counsel
are reasonably acceptable to the Company, to the effect that such exercise, transfer, or exchange may be made without registration
under said Act and under applicable state securities or blue sky laws, (ii) that the Holder or transferee execute and deliver
to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited
investor” as defined in Rule 501(a) promulgated under the Securities Act; provided that no such opinion, letter or status
as an “accredited investor” shall be required in connection with a transfer pursuant to Rule 144 under the Securities
Act. The first holder of this Warrant, by taking and holding the same, represents to the Company that such holder is acquiring
this Warrant for investment and not with a view to the distribution thereof. In no event shall the Holder be permitted to assign
the Warrant unless provided with express written consent by the Company.

 

9. Notices.
All notices, requests, and other communications required or permitted to be given or delivered
hereunder to the Holder of this Warrant shall be in writing, and shall be personally delivered, or shall be sent by certified
or registered mail or by recognized overnight mail courier, postage prepaid and addressed, to such holder at the address shown
for such holder on the books of the Company, or at such other address as shall have been furnished to the Company by notice from
such holder. All notices, requests, and other communications required or permitted to be given or delivered hereunder to the Company
shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail or by recognized overnight
mail courier, postage prepaid and addressed, to the office of the Company at the address set forth in the Securities Purchase
Agreement, or at such other address as shall have been furnished to the Holder of this Warrant by notice from the Company. Any
such notice, request, or other communication may be sent by facsimile, but shall in such case be subsequently confirmed by a writing
personally delivered or sent by certified or registered mail or by recognized overnight mail courier as provided above. All notices,
requests, and other communications shall be deemed to have been given either at the time of the receipt thereof by the person
entitled to receive such notice at the address of such person for purposes of this Paragraph 9, or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the United States Post Office or such overnight mail
courier, if postage is prepaid and the mailing is properly addressed, as the case may be.

 

    	 	5	 

     

    

 

10. Governing
Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED
IN NEW YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS
MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL
NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT
ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL
BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH
SUCH DISPUTE.

 

11. Miscellaneous.

 

(a) Amendments;
Waivers. No purported amendment to any provision of this Warrant shall be binding on the parties unless each party has
duly executed and delivered to the other party a written instrument which states that it constitutes an amendment to this Warrant
and specifies the provision(s) hereof that are being amended. No purported waiver of any provision of this Warrant shall be binding
on any party unless it has duly executed and delivered to the other party a written instrument which states that it constitutes
a waiver of one or more provisions of this Warrant and specifies the provision(s) hereof that are being waived. Any such waiver
shall be effective only to the extent specifically set forth in such written instrument. No waiver of any right, power or remedy
of a party shall be deemed to be a waiver of any other right, power or remedy of such party or shall, except to the extent so
waived, impair, limit or restrict the exercise of such right, power or remedy.

 

(b) Descriptive
Headings. The descriptive headings of the several paragraphs of this Warrant are inserted for purposes of reference only,
and shall not affect the meaning or construction of any of the provisions hereof.

 

(c) Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Warrant will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Warrant, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Warrant and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

12. Registration
Rights. Upon the written request of the Holder, given no earlier than one hundred and eighty
(180) days after the Company becomes a reporting company under the Securities Exchange Act of 1934, as amended, and no more than
once, the Company hereby agrees that within sixty (60) days of its receipt of such request it shall prepare and file with the
Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1 covering the resale of the Warrant
Shares (the “Registration Statement”). After the filing of the Registration Statement, the Company shall use its commercially
reasonable efforts to cause such Registration Statement to be declared effective by the SEC. Following the effective date, the
Company shall use its commercially reasonable efforts to ensure the Registration Statement remains effective through the remaining
term of the Exercise Period. 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer.

 

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

 

Dated
as of June 6, 2018

 

     

     

    

 

FORM
OF EXERCISE AGREEMENT

 

Dated:
________ __, 20__

 

	To:	______________________

 

The
undersigned, pursuant to the provisions set forth in the within Warrant, hereby agrees to purchase ________ shares of Common Stock
covered by such Warrant. The undersigned intends that payment of the Exercise Price shall be made as (check one):

 

____
“cash exercise” in the amount of $_________

 

____
“cashless exercise” pursuant to Paragraph 1 of the Warrant.

 

Please
issue a certificate or certificates for such shares of Common Stock in the name of and pay any cash for any fractional share to:

 

	 	Name: ______________________________
	 	 
	 	Signature:
	 	Address:____________________________
	 	                _____________________________

 

		Note:	The
                                         above signature should correspond exactly with the name on the face of the within Warrant,
                                         if applicable.

 

     

     

    

 

FORM
OF ASSIGNMENT

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights of the undersigned under the within Warrant,
with respect to the number of shares of Common Stock covered thereby set forth hereinbelow, to:

 

	Name of
Assignee	Address	No
                                         of Shares

 

 

 

 

,
and hereby irrevocably constitutes and appoints ___________________________________ as agent and attorney-in-fact to transfer
said Warrant on the books of the within-named corporation, with full power of substitution in the premises.

 

Dated:
________ __, 20__

 

	In the presence
    of:	______________________________
	 	 
	 	Name:
    ______________________________
	 	 
	 	Signature: __________________________
	 	Title of
    Signing Officer or Agent (if any):
	 	 
	 	Address:____________________________
	 	                _____________________________
	 	                _____________________________

 

		Note:	The
                                         above signature should correspond exactly with the name on the face of the within Warrant,
                                         if applicable.

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