Document:

Exhibit 4.8

 

ADIAL
PHARMACEUTICALS, L.L.C.

Membership
Unit Award (Profits Interest) Agreement

 

	“Recipient”:	___________________
	“Date
    of Award”:	___________________
	“Units”:	___________________
	“Current
    Unit Valuation”:	$__________________

 

This
Membership Unit Award Agreement (this “Agreement”) is made as of the Date of Award set forth above, between ADial
Pharmaceuticals, L.L.C., a Virginia limited liability company (“Company”), and the Recipient named above, subject
to the following terms and conditions:

 

1.        
Award of Membership Units. In exchange for the services and other consideration set forth on Exhibit A attached hereto
and incorporated herein (the “Services”), Company hereby awards to Recipient the number of the Company’s Membership
Units set forth above (the “Units”), which shall have all voting, profits, losses and other interests afforded Membership
Units of Company pursuant to the Operating Agreement of Company, as amended from time to time (the “Operating Agreement”).
Such award is contingent upon Recipient’s execution and delivery of the Operating Agreement, which condition may be satisfied
by Recipient executing and delivering the Member Signature Page attached hereto as Exhibit B. Nothing in this Agreement shall
confer upon Recipient any right to continue providing the Services. The capital account balances for the Units will be held so
that profits and losses allocations and/or other adjustments are made to maintain the differential to the capital accounts of
membership units existing on the Date of Award based on the Current Unit Valuation set forth above.

 

2.        
Units Subject to Right of Repurchase. The Units awarded hereby are subject to a Right of Repurchase by the Company as set
forth and defined in Exhibit. A. In the event of repurchase of some or all of the Units, Recipient shall have no right to the
benefit of any capital account associated with the repurchased Units, nor any profit or loss allocation in the year of repurchase;
provided, however, nothing shall prohibit Company from allocating profits or losses to such Units prior to the date of repurchase.

 

3.        
Non-Transferability During Restrictive Period. Notwithstanding anything set forth in the Operating Agreement, during the
period when any of the Units are subject to forfeiture, Recipient shall not transfer to any person or entity any right, title
or interest in or to the Units awarded hereunder, and, in the event such Units are represented by certificates, Company shall
hold the certificates representing the Units in escrow until all risks of forfeiture lapse, whereupon, Company will deliver such
certificate or certificates to Recipient free and clear of such restrictions unless the Units represented by such certificates
have been previously forfeited to Company. When delivered to Recipient such Units and certificates, as applicable, will be validly
issued, fully paid, and non-assessable and will be free of any liens of encumbrances other than the applicable transfer restriction
set forth in the Operating Agreement.

 

4.        
Investment Representation. Recipient hereby makes the representations warranties, and covenants set forth in the Membership
Unit Recipient Investment Letter attached hereto and incorporated herein as Exhibit C.

 

    	 	 	Page 1 of 7 

     

    

 

5.       Binding
Effect. Subject to the limitations stated above, this Agreement shall be binding upon and inure to the benefit of the legatees,
distributees, and personal representatives of Recipient and the successors and assigns of Company. Recipient may not assign his
or her rights or obligations under this Agreement, and any attempt by Recipient to do so shall be deemed a breach of this Agreement
and shall be void and of no effect.

 

6.       Entire
Agreement. This Agreement, along with the Exhibits attached hereto, constitutes the entire Agreement between the parties with
respect to the subject matter hereof and supersedes all prior or contemporaneous, written or oral agreements or understandings
with respect to the subject matter hereof. This Agreement may only be amended by a writing signed by the party to be charged.

 

7.       Governing
Law. This Agreement shall be interpreted, governed, and enforced in accordance with the laws of Commonwealth of Virginia,
notwithstanding its choice of law principles. The invalidity or unenforceability of any portion hereof shall in no way affect
the validity or enforceability of any other portion of this Agreement, and any portion held to be invalid or unenforceable shall
be deemed modified, restricted, or omitted to the extent necessary to make this Agreement enforceable.

 

8.       Legal
Counsel. Recipient has reviewed the contents of this Agreement and fully understands its terms. Recipient acknowledges that
he or she is fully aware of his or her right to the advice of counsel independent from that of Company, that the Company has advised
Recipient of such right and disclosed to Recipient the risk in not seeking such independent advice, and that Recipient understands
the potentially adverse interest of the parties with respect to this Agreement. Recipient further acknowledges that no representations
have been made with respect to the income or state tax or other consequences of this Agreement to Recipient and that Recipient
has been advised of the importance of seeking independent advice of counsel with respect to such consequences. RECIPIENT IS
URGED TO CONSULT INDEPENDENT TAX ADVISERS WITH RESPECT TO THE FEDERAL AND STATE TAX CONSEQUENCES ARISING FROM THE AWARD AND OWNERSHIP
OF UNITS OF COMPANY.

 

9.       Definitions.
All capitalized terms not defined herein shall have the meanings ascribed to such terms in the Operating Agreement

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Date of Award.

 

	ADIAL PHARMACEUTICALS, L.L.C.  	 	RECIPIENT: 
	 	 	 
	By:	 	 	 
	 	William B. Stilley, CEO 	 	 [NAME]

 

    	 	 	Page 2 of 7 

     

    

 

Exhibit
A

 

SERVICES
AND FORFEITURE PROVISIONS

 

1.       Services.
Recipient shall serve as Vice President, Operations & Finance or such other position(s) as shall be designated by the Chief
Executive Officer and shall perform such duties as may be reasonably requested of him or her from time to time by the Chief Executive
Officer.

 

2.       “Right
of Repurchase”. The Units shall be subject to a right of repurchase by the Company as set forth below.

 

		(a)	The
                                         Right of Repurchase shall lapse according to the following schedule: _____________th
                                         of are fully released from the Right of Repurchase immediately and the remainder
                                         of the Units shall become fully released from the Right of Repurchase at the rate of
                                         1/30th of such Units per month commencing on the Date of Award, such that
                                         all of the Units shall be released from the Right of Repurchase on _____________.

		(b)	Notwithstanding
                                         the above, the Right of Repurchase shall immediately lapse as to 100% of the Units upon
                                         the occurrence of a Material Transaction or upon a liquidation or dissolution of the
                                         Company. “Material Transaction” means the occurrence of any of the following:
                                         (A) any transaction or series of related transactions by the Company or its equity holders
                                         in which a majority of the Company’s voting power is transferred to one or more
                                         persons or entities who were not equity holders of the Company prior to such transaction
                                         or series of transactions; (B) any merger or consolidation of the Company with or into
                                         any other entity, after which the Members of the Company do not hold, either directly
                                         or indirectly, a majority of the voting equity of the surviving entity; (C) the sale,
                                         conveyance, exclusive license or other disposition of a material portion of the business
                                         and/or assets of the Company to a non-affiliated entity (it being agreed, by way of illustration
                                         and not limitation, that the sale, conveyance, exclusive license or other disposition
                                         of the Company’s drug candidate currently designated as AD/04 to a non-affiliated
                                         entity shall constitute a Material Transaction); or (D) any transaction, or series of
                                         transactions, the effect of which is substantially the same as the effect of the transactions
                                         contemplated under subsections (A), (B), and (C) of this Section 2(b).

		(c)	If
                                         Recipient’s employment to perform the Services is terminated for any reason prior
                                         to the expiration of the Right of Repurchase, the Company shall have the right to repurchase
                                         such of the Units as are subject to the Right of Repurchase as of the date of termination
                                         for a price of one-thousandth of one dollar ($0.001) per Unit for such Units to be repurchased,
                                         which Right of Repurchase shall be automatically exercised by the Company without notice
                                         and the repurchase price paid within thirty (30) of written request for payment by Recipient.

 

 

	 	Initials
    _____/______

 

    	 	 	Page 3 of 7 

     

    

 

Exhibit
B

 

ADIAL
PHARMACEUTICALS, L.L.C. OPERATING AGREEMENT

MEMBER
SIGNATURE PAGE

 

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

 

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

 

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

 

Date:
_____________

 

	By:	 	 
	 	[NAME]	 

 

MAILING
ADDRESS:

 

	 	_____________	 
	 	_____________	 

 

Accepted
on behalf of ADial Pharmaceuticals, L.L.C.

 

	By:	 	 
	 	William
    B. Stilley	 
	 	CEO	 

 

    	 	 	Page 4 of 7 

     

    

 

Exhibit
C

 

Membership
Unit Recipient Investment Letter

 

[DATE]

 

ADial
Pharmaceuticals, L.L.C.

204
E. High St.

Charlottesville,
VA 22902

 

Attention:
William Stilley, CEO

 

Dear
_____________:

 

This
letter will confirm my acceptance of Membership Units (“Units”) of, and accordingly, a profits interest in ADial Pharmaceuticals,
L.L.C., a Virginia limited liability company (the “Company”), pursuant and subject to the terms and conditions of
a certain Membership Unit Award Agreement (the “Award Agreement”), and subject to the Company’s right to repurchase
the Units thereunder.

 

Unless
otherwise defined herein, capitalized terms used herein shall have the same meanings ascribed to them in the Company’s Operating
Agreement of February 3, 2014 (as hereafter amended from time to time, the “Operating Agreement”), a copy of which
I acknowledge receiving.

 

In
connection with my acquisition of Units in the Company, I represent and warrant the following:

 

(1)       I
have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of
this investment and understand and acknowledge that my rights and privileges with respect to the Units, including, without limitation,
any rights to transfer the Units, are all subject to the provisions of the Articles of Organization and the Operating Agreement
of the Company, as the same may be amended from time to time.

 

(2)       I
understand that this investment involves a high degree of risk because the Company has a limited operating history and that there
is no guarantee of profitability or continued operation of the Company.

 

(3)       I
am acquiring the Units pursuant to the terms of a written contract relating to my compensation, and I am able to bear the economic
risk of this investment. I acknowledge that I might have to hold the Units for an indefinite period of time, since the Units have
not been registered, and I might have to bear a complete economic loss, in the event that the business does not succeed.

 

    	 	 	Page 5 of 7 

     

    

 

(4)       In
making my decision to acquire Units of the Company, I have relied upon independent investigations made by me. I have taken the
opportunity to examine any and all documents and, to the extent I have deemed necessary, to ask pertinent questions and receive
answers, concerning the terms and conditions of my acquisition of such Units or any other matter pertaining to such investment,
and to obtain any additional information necessary to verify the accuracy of the information given to me.

 

(5)       I
understand that the Units will not be registered under the Securities Act of 1933, as amended (the “Act”), and that
the Units that I acquire cannot be sold to any person except pursuant to the terms of the Operating Agreement.

 

(6)       I
am acquiring the Units for my own investment account and have no intention, agreement or arrangement to redistribute, divide,
assign, transfer the Units or to sell it to any other person.

 

(7)       I
have reviewed with my own tax advisors the immediate and prospective federal, state, local and foreign tax consequences of this
investment, and I am relying solely on the statements of such advisors and not on the statements or representations of the Company
or any of its agents with respect to such tax consequences or any other matter. I have not relied on any advice given by the Company’s
legal counsel.

 

(8)       I
have adequate net worth and means of providing for my current and future needs and possible contingencies and have no need for
liquidity in this investment. My commitment to investments that are not readily marketable is not disproportionate to my net worth
and my investment in the Units covered by this letter and will not cause my overall commitment to become excessive.

 

(9)       I
understand that under Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), the difference between
the price paid for the Units and the fair market value on the date that a risk of forfeiture lapses (as set forth in the Award
Agreement) may be reportable as ordinary income at that time. I understand that I may elect to be taxed at the time the Units
are acquired hereunder to the extent the fair market of the Units differs from the price paid rather than when and as such Units
cease to be subject to risks of forfeiture, by filing an election under Section 83(b) of the Code with the IRS within thirty (30)
days after the date of acquisition hereunder. If the fair market value of the Units at the date of purchase equals the price paid
(and thus no tax is payable), the election should be made to avoid adverse tax consequences in the future. The form for making
this election is attached hereto. I understand that failure to make this filing within the thirty (30) day period may result in
the recognition of ordinary income by me as the risks of forfeiture lapse. I ACKNOWLEDGE THAT IT IS MY SOLE RESPONSIBILITY, and
not THE Company’s to file a timely election under Section 83(b), even if I request THE Company to make this filing on my
behalf. I am relying solely on my advisors with respect to the decision as to whether or not to file an 83(b) election.

 

(10)      The
foregoing representations and warranties shall survive my acquisition of the Units in the Company, and I agree to indemnify and
hold harmless the Company and its directors, officers, agents and representatives, for and from any and all losses, liabilities,
claims, damages and expenses, including, without limitation, attorney fees and dispute costs, caused by my breach of any agreement,
representation or warranty contained herein or as a result of the reliance of the Company or any other indemnities on such agreement,
representation or warranty.

 

	 	Sincerely,
	 	 
	 	 
	 	[NAME]

 

    	 	 	Page 6 of 7 

     

    

 

Form
83(b) Election

 

This
statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treasury Regulation Section 1.83-2.

 

(1)       The
person who performed the services (“Recipient”) is:

 

	 	Name:
    	 _____________
	 	 	 
	 	Address:	 _____________
	 		 _____________
	 	 	 

 

	 	Taxpayer
    Identification No.:  	_____________

 

(2)       The
property with respect to which the election is being made is _____________ Class A Membership Units (Profits Interest) in ADial
Pharmaceuticals, L.L.C., a Virginia limited liability company (“Issuer”).

 

(3)       The
property was transferred on _____________. The tax year of Recipient for which this election is made is calendar year _____________.

 

(4)       The property is subject to risks of forfeiture, the last of which expires on _____________.

 

(5)       The
fair market value of the property at the time of transfer (determined without regard to any restriction other than a restriction
which by its terms will never lapse) is $0.00 per unit for a total of $0.00.

 

(6)       The
amount paid for such property is $0.00

 

(7)       A
copy of this statement was furnished to Issuer, for whom Recipient will render the service or payment underlying the transfer
of property.

 

(8)       This
statement is executed as of _____________.

 

	 	 
	 	[NAME]

 

 

Page 7 of 7Exhibit 10.1

 

 

 

 

LICENSE AGREEMENT

 

Between The

 

University of Virginia Patent Foundation

 

And

 

ADial Pharmaceuticals, L.L.C.

 

Effective

 

January 21, 2011

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	Article 1 DEFINITION OF TERMS	4
	1.1	“AC Agreement”	4
	1.2	“Additional Inventions”	5
	1.3	“Affiliate”	5
	1.4	“Confidential Information”	5
	1.5	“Equity”	5
	1.6	“Field”	5
	1.7	“Licensed Know-how”	5
	1.8	“Licensed Patents”	6
	1.9	“Licensed Product”	6
	1.1	“Licensed Rights”	6
	1.11	“Net Sales”	6
	1.12	“Non-patent Countries”	7
	1.13	“Patent Countries”	7
	1.14	“Patenting Costs”	7
	1.15	The terms “sale”, “sold” and “sell”	7
	1.16	“Sublicensee”	7
	1.17	“Sublicensing Revenue”	8
	1.18	“UVA”	8
	 	 	 
	Article 2 GRANT	8
	2.1	Grant to Licensee	8
	2.2	Option to Additional Inventions.	8
	2.3	Affiliate Rights	8
	2.4	Right to Sublicense	9
	2.5	Government Rights	9
	2.6	Reservation by Licensor	9
	 	 	 
	Article 3 FINANCIAL CONSIDERATION	10
	3.1	Issue Fee	10
	3.2	Running Royalties	10
	3.3	Third Party Royalties	10
	3.4	Minimum Annual Royalties	11
	3.5	Performance Milestone Payments	11
	3.6	Sublicensing Payments	11
	3.7	Equity Ownership	12
	 	 	 
	Article 4 DILIGENCE	12
	4.1	Commercialization Program	12
	4.2	Diligence Milestones	12
	4.3	Diligence Reporting	13
	 	 	 
	Article 5 REPORTS AND RECORDS	13
	5.1	Record Accounting	13
	5.2	Product Reports	14
	5.3	Payments	15
	5.4	Financial Projections	15

 

    	 	2	 

     

    

 

	Article 6 PATENT PROSECUTION	15
	6.1	Patent Prosecution	15
	6.2	Patent Reimbursements	16
	6.3	Infringement of Licensed Patents	17
	6.4	Patent Extensions	18
	 	 	 
	Article 7 DURATION AND TERMINATION	18
	7.1	Contract Term	18
	7.2	Bankruptcy	19
	7.3	Licensor Termination	19
	7.4	Licensee Termination	20
	7.5	Continued Obligations	20
	7.6	Effect on Sublicenses	20
	7.7	Survivability	20
	 	 	 
	Article 8 CONFIDENTIALITY	21
	8.1	Confidential Information	21
	8.2	Security	21
	8.3	Publication	21
	 	 	 
	Article 9 GOVERNING LAW AND ARBITRATION	21
	9.1	Law To Govern	21
	9.2	Arbitration Proceedings	22
	 	 	 
	Article 10 INDEMNIFICATION AND INSURANCE	22
	10.1	Licensee Indemnification	22
	10.2	Extent of Insurance	23
	10.3	Term of Insurance	24
	10.4	Lapse of Coverage	24
	10.5	Sublicensee Insurance	24
	 	 	 
	Article 11 REPRESENTATIONS AND WARRANTIES	25
	11.1	No Encumbrances	25
	11.2	Licensee Warranty	25
	11.3	Licensor Warranty	25
	11.4	Infringement Actions by 3rd Parties	25
	11.5	Disclaimers	26
	11.6	Limitation of Liability.	26
	 	 	 
	Article 12 PAYMENTS AND NOTICES	26
	Article 13 ASSIGNMENT	27
	Article 14 NON-USE OF NAMES	27
	Article 15 EXPORT CONTROLS	28
	Article 16 MARKING	28
	Article 17 FORCE MAJEURE	28
	Article 18 SEVERABILITY	29
	Article 19 HEADERS	29
	Article 20 BENEFIT AND WAIVER	29
	Article 21 ENTIRE AGREEMENT	29
	Appendix ALicensed Patents	 

 

    	 	3	 

     

    

 

ADIAL/UVAPF LICENSE AGREEMENT

 

This Agreement is entered into and
made effective as of January 21, 2011 (the “Effective Date”) by and between the University of Virginia Patent Foundation
(“Foundation”), a not-for-profit corporation of the Commonwealth of Virginia having its principal offices at 250 West
Main Street, Charlottesville, VA, 29902; and ADial Pharmaceuticals, L.L.C. (“Adial”), a Virginia limited liability
company having its principal offices at 1001 Research Park Drive, Suite 100, Charlottesville, VA 22911.

 

W I T N E S S E T H

 

WHEREAS, Foundation owns certain proprietary
know-how, patent applications and/or patents (collectively, the “Licensed Rights”, as further defined below) pertaining
to the treatment of addiction disorders filed on behalf of Bankole Johnson and co-inventors (the “Inventors”) at the
University of Virginia (“UVA”, as further defined below);

 

WHEREAS, Adial wishes to hold an exclusive,
worldwide license under the Licensed Patents and Licensed Know-how which will provide Adial with the exclusive right to make, use,
import, offer to sell and sell Licensed Products in the Field, and Adial is committed to developing Licensed Products and to bringing
such products to market; and

 

WHEREAS, Foundation is willing to grant
such a license to Adial, in consideration of Adial’s satisfaction of its obligations hereunder, and for other good and valuable
consideration as set forth hereinbelow.

 

WHEREAS, Adial Corporation, a Virginia corporation,
(“AC”) and Foundation entered into an Adial/Foundation License Agreement of July 22, 2008, as amended on July 10, 2009
and March 15, 2010, (the “AC Agreement”), which was subsequently assigned by AC to Adial on December 6, 2010, which
assignment was accepted by Foundation;

 

WHEREAS, Adial and Foundation wish to supersede
the AC Agreement with this Agreement;

 

NOW, THEREFORE, in consideration of the
premises set forth above and the mutual covenants set forth below, the parties hereto agree as follows:

 

Article
1

DEFINITION OF TERMS

 

 1.1        “AC Agreement” shall have the meaning set forth in the preamble to this Agreement.

 

    	 	4	 

     

    

 

 1.2        “Additional Inventions” shall mean domestic and foreign patent applications and patents (including, without limitation, reissues or temporal extensions of same) on inventions conceived and discoveries made:

 

		(a)	which are assigned by UVA to Foundation;
		(b)	which are invented or discovered by Dr. Bankole A. Johnson and/or Dr. Ming Li;
		(c)	which are relevant to the Field;
		(d)	for which Adial has timely exercised its option to include such patent applications and patents hereunder, which option is
provided for in Section 2.2; and
		(e)	which are invented within three (3) years after the Effective Date.

 

 1.3        “Affiliate” shall mean any affiliate that Adial authorizes to practice under the Licensed Rights; “affiliate” shall mean any legal entity that controls, is controlled by, or is under common control with Adial. The term “control” shall mean possession of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract, or otherwise. The term “entity” includes without limitation any individual, corporation, or other organization.

 

 1.4        “Confidential Information” shall mean any information exchanged between Foundation and Adial, its Affiliates and Sublicensees, either orally or in writing or other tangible medium other than that which (i) is or becomes known to the public without fault of the party receiving the information; (ii) the receiving party can establish from documentary evidence that it knew prior to the receipt of the same from the disclosing party; (iii) is obtained without obligation of confidentiality from a third party having the right to disclose same without breach of any obligation of confidentiality to the disclosing party; (iv) is independently developed by the receiving party without regard to the information disclosed to it.

 

 1.5        “Equity” shall mean stock, membership interests, partnership interests, options, warrants, and other forms of equity securities convertible into any of the foregoing in Adial or its assets, as may be in existence or issued from time to time by Adial and/or its successors and/or assigns.

 

 1.6        “Field” shall mean the field of human or animal therapeutic, prophylactic, diagnostic and/or other medical use.

 

 1.7        “Licensed Know-how” shall mean all proprietary information, trade secrets (as defined by the Uniform Trade Secrets Act) and tangible research property (including biological materials, chemical compounds, prototypes and other research tools) necessary or useful for practicing the Licensed Patents or developing, making, using, or selling Licensed Products that is discovered or developed by the Inventors or personnel under their supervision in their laboratories and which is (i) within the Field, (ii) not subject to the rights of any third parties due to obligations originating prior to the Effective Date (other than those of the United States Government as set forth in 35 U.S.C. §§200-206, 37 C.F.R. Part 401) or research sponsor restrictions, and (iii) owned or controlled by Foundation. For clarity, Licensed Know-how includes, without limitation, clinical and non-clinical data and regulatory filings developed by the Inventor or their clinics or laboratories.

 

    	 	5	 

     

    

 

 1.8         “Licensed Patents” shall mean the patents and/or patent applications listed in Appendix A, all patent applications (domestic and foreign) directly or indirectly claiming priority to the same (except that for continuation-in-part applications, only those claims that are entitled to the priority filing date of any of the above-referenced patents or applications), and all patents issuing therefrom, including, without limitation, reissues, extensions and re-examinations.

 

 1.9         “Licensed Product” shall mean any product in the Field that (i) is covered by (in whole or in part), or is made, uses a process covered by (in whole or in part), one or more pending or issued claim in one or more of the Licensed Patents (including reissues and re-examinations), and/or (ii) embodies, contains, uses, is used or made through the use of, or was in whole or in part derived from the Licensed Know-how.

 

 1.10        “Licensed Rights” shall mean collectively the Licensed Patents and Licensed Know-how.

 

 1.11        “Net Sales” shall mean the amounts received by Adial and its Affiliates and Sublicensees from the manufacture or use of Licensed Products, or the sale, offer to sell or importation of Licensed Products, less (i) discounts or rebates actually allowed from the billed amount, (ii) credits or allowances actually allowed upon claims or returns, (iii) rebates, credits, and chargeback payments (or the equivalent thereof) granted to managed health care organizations, wholesalers, or to federal, state/provincial, local and other governments, including their agencies, purchasers, and/or reimbursers, or to trade customers, (iv) taxes or other government charges imposed with respect to the sale of such Licensed Products, and (v) shipping and insurance charges as separately itemized in invoice. For non-cash and partial-cash sales, Net Sales shall include the fair market value of non-cash consideration received for such sale of the same quantity of Licensed Products. For sales not at arms-length, Net Sales shall be equal to the fair market price of such Licensed Products as when transferred in comparable arms-length transactions. Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect to, (1) the distribution of reasonable quantities of Licensed Products for use as free promotional samples, and if distributed by an Affiliate or Sublicensee, for which Adial receives no royalty payment, (2) Licensed Products provided for research, development, or compassionate use purposes at or below documented actual cost, or (3) Licensed Products provided by Adial to a Sublicensee or Affiliate provided that Net Sales by such Sublicensee or Affiliate are subject to royalties under Section 3.2.

 

Notwithstanding the foregoing, in the event
that a Licensed Product is sold by Adial, an Affiliate thereof, or a Sublicensee in combination or a bundle with other products
or services (such combination or bundle, a “Bundled Product”), Net Sales shall be calculated by multiplying the Net
Sales for such Bundled Product by the fraction, A/(A+B), where A is the average sale price, during the royalty-paying period in
question, of the subject Licensed Product sold or used separately, and B is the average sale price during the royalty-paying period
in question, of the other products, processes or services in the Bundled Product sold separately. If no separate sales are made
of the subject Licensed Product or of the other products, processes or services in such Bundled Product during the royalty-paying
period in question, Net Sales for the purposes of determining royalty payments with respect to such Bundled Product shall be commercially
reasonable and determined by good faith negotiation between the parties based on the relative value(s) of the various constituents
of such Bundled Product and the portion thereof represented by the Licensed Product(s) included therein. If the parties cannot
agree, then the matter shall be submitted to an arbitrator per Section 9.2 herein for final determination.

 

    	 	6	 

     

    

 

 1.12        “Non-patent Countries” shall mean all countries of the world other than Patent Countries. A country in which a patent application is filed, but such application is withdrawn or abandoned by Foundation in good faith prior to the issuance of a corresponding patent, shall become a Non-patent Country upon such withdrawal or abandonment. A country in which a patent issues but such patent is abandoned in good faith by Foundation shall become a Non-patent Country upon such abandonment.

 

 1.13        “Patent Countries” shall mean countries for which the Licensed Patents cover or previously covered the Licensed Product at issue or its method of manufacture or use and include at least one (i) pending patent application, (ii) issued and unexpired patent, or (iii) issued patent that has expired at the end of its full term or has been invalidated, revoked, or otherwise been rendered unenforceable during its term (other than via abandonment or withdrawal by Foundation in good faith).

 

 1.14        “Patenting Costs” shall mean any reasonable, documented past or ongoing costs incurred or to be incurred, including government fees and attorneys’ fees, in the course of preparing, filing, prosecuting and maintaining any of the Licensed Patents, including continuations, re-examinations, reissues and appeals.

 

 1.15        The terms “sale”, “sold” and “sell” as used in this Agreement include without limitation, sales, leases, licenses, rentals and other modes of distribution or transfer of a product or its beneficial use.

 

 1.16        “Sublicensee” shall mean any non-affiliated third party to whom Adial has granted a Sublicense. “Sublicense” shall mean an agreement in which Adial (i) grants a license to any of the rights to Licensed Patents, (ii) agrees not to assert such rights or to sue, prevent or seek a legal remedy for the practice of same, (iii) assigns or otherwise transfers this Agreement and/or the rights acquired by it (except for transfers or assignments resulting from acquisitions, mergers, consolidations, reorganizations, or other transfers or similar transactions as specified in Article 13 Assignment hereinbelow), or (iv) is under an obligation to grant, assign or transfer any such rights (except for transfers or assignments resulting from acquisitions, mergers, consolidations, reorganizations, or other transfers or similar transactions as specified in Article 13 Assignment hereinbelow) or non-assertion, or to forebear from granting or transferring such rights to any other entity, including licenses, option agreements, right of first refusal agreements, or other agreements. For clarity, selling products to third parties, including without limitation, end users, distributors, and the like, will not be considered a sublicense.

 

    	 	7	 

     

    

 

 1.17        “Sublicensing Revenue” shall mean the fair market cash value of any and all non-running royalty consideration received by Adial from Sublicensees in connection with the grant of rights to the Licensed Patents under its Sublicenses, including without limitation license issue fees, option fees and other licensing fees, milestone payments, minimum annual royalties, equity or other payments of any kind whatsoever (but excluding running royalties paid for, and other payments calculated on the basis of, Net Sales of Licensed Products by Sublicensees), irrespective of whether such revenues are received in the form of cash, barter, credit, stock, warrants, release from debt, goods or services, licenses back, a premium on the sale of Equity (i.e., payments for Equity that exceed the then-current fair market value of the Equity), equity exchanges (where the value attributed to Equity is greater than the then-current fair market value), or any other form whatever. Sublicensing Revenue shall exclude purchases of equity or debt of Adial at or below fair market value, payments made for actual manpower, overhead, material costs, and out-of-pocket or third party costs and expenses in carrying out research and development projects as reasonably detailed in collaboration or research agreements.

 

 1.18        “UVA” shall mean the University of Virginia, its governors, trustees, officers, agents, employees, faculty, staff and students.

 

Article
2

GRANT

 

		2.1	Grant to Licensee

In consideration of Adial’s satisfaction
of its obligations hereunder, Foundation hereby grants to Adial the exclusive, worldwide license in the Field under its interest
in and to the Licensed Patents, and a non-exclusive worldwide license in the Field under the Licensed Know-how in each case to
make, have made, use, offer to sell, sell and import Licensed Products throughout the term hereof.

 

		2.2	Option to Additional Inventions.

With respect to inventions conceived and
discoveries made which are Additional Inventions that may be the subject of a patent application or patent, Foundation shall give
written notice to Adial of same. Adial shall have an irrevocable option, exercisable by written notice within ninety (90) days
of receiving such notice from Foundation, to elect to include such new patent application and/or patent within the Licensed Patents
hereunder (i.e. add by amendment to Appendix A). If Adial does not exercise such option within ninety (90) days, Foundation shall
be free to license same to third parties, exclusively or otherwise, without any obligation to Adial therefor.

 

		2.3	Affiliate Rights

The rights licensed to Adial hereunder,
except for the right to sublicense granted in the following paragraph, shall be extended to Affiliates designated in writing by
Adial, provided that each such Affiliate first agrees in writing to be bound by the terms and conditions of this Agreement. Adial
shall deliver to Foundation a copy of said writing within thirty (30) days of its execution. Adial agrees to be fully responsible
for the performance of such Affiliates hereunder.

 

    	 	8	 

     

    

 

		2.4	Right to Sublicense

Adial shall have the right to sublicense
any or all of the rights licensed hereunder to non-affiliated third parties, provided that (i) each Sublicense contains terms and
conditions functionally equivalent to those set forth in the Government Rights, Reservation by Licensor, and Patent Extensions
paragraphs and in the Marking, Export Control, Non-Use of Names, and Severability articles of this Agreement; (ii) that each Sublicense
is otherwise consistent with, and contains provisions reasonably sufficient to enable Adial to comply with, the terms and conditions
of this Agreement; (iii) a copy of each Sublicense is provided to Foundation promptly following its execution, together with a
written statement disclosing any and all material prior and contemporaneous contractual relationships between Adial and the Sublicensee;
and (iv) Adial represents and warrants that no such other contractual relationships contain consideration to Adial reasonably attributable
to the sublicensing of the Licensed Rights. Adial acknowledges that failure of a Sublicensee to satisfy the obligations of this
Agreement named above or otherwise applicable to such Sublicensee will, absent corrective action by Adial, construe breach hereof.

 

		2.5	Government Rights

Notwithstanding anything herein to the contrary,
any and all licenses and other rights granted hereunder are limited by and subject to the rights and requirements of the United
States Government (“Government”) which may attach as a result of Government sponsorship of research at UVA in which
one or more inventions covered by the Licensed Patents was conceived or reduced to practice, as set forth in 35 U.S.C. §§200-206,
37 C.F.R. Part 401 and in the relevant Government research contracts with UVA, and as such rights and requirements may be amended
or modified by law. To the extent applicable, such rights and requirements include without limitation (i) the grant of a nonexclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced for or on behalf of the Government any of the Licensed
Patents throughout the world (as set forth in 35 U.S.C. §202(c)(4)), and (ii) the requirement that Licensed Products used
or sold in the United States will be manufactured substantially in the United States (as set forth in 35 U.S.C. §204).

 

		2.6	Reservation by Licensor

Notwithstanding anything herein to the contrary,
the above grant is subject to a reservation of rights by Foundation for itself and UVA to practice under the Licensed Rights solely
for educational, not-for-profit research, patient care and treatment, and other internal, noncommercial purposes, provided that
the exercise of such reserved rights by Foundation shall not (i) be on behalf of, sponsored with funding received from, or subject
to any intellectual property rights granted to any commercial third party nor (ii) include any human use or clinical administration
without prior written approval from Adial. Foundation further excludes from the license granted herein the right to bring an infringement
action against, seek monetary damages from, or seek an injunction against, any Inventor or their present or future not-for-profit
employers even after such employment has ended, for infringement of any of the Licensed Rights in carrying out not-for-profit research.
Nothing herein shall be construed to require Foundation to bring any such action against any such party. Such reservation shall
further include the right to provide Licensed Know-how, and to grant licenses under the Licensed Patents, to not-for-profit and
governmental institutions solely for their internal research and scholarly use only, in accordance with the NIH Guidelines for
Obtaining and Disseminating Biomedical Research Resources (as published in the U.S. Federal Register / vol 64, No. 246 –
12/23/99).

 

    	 	9	 

     

    

 

Article
3

FINANCIAL CONSIDERATION

 

In consideration of the rights, privileges,
and licenses granted hereunder, Adial shall pay royalties and other consideration to Foundation in the manner hereafter provided:

 

		3.1	Issue Fee

A license issue fee of one hundred thousand
dollars (U.S. $100,000) shall be paid to Foundation in the form of Equity in ADial in accordance with Section 3.7 below.

 

		3.2	Running Royalties

Throughout the term of this Agreement, Adial
shall pay quarterly to Foundation, on a Licensed Product-by-Licensed Product and country-by-country basis, a running royalty in
an amount equal to:

 

		A.	Two percent (2%) of Net Sales of Licensed Products sold in Patent Countries in such quarter; and

		B.	One percent (1%) of Net Sales of Licensed Products sold in Non-patent Countries in such quarter.

 

No multiple running royalties shall be payable because the Licensed
Product, or the manufacture or use thereof, are or shall be covered by more than one Licensed Patent, or by both Licensed Patents
and Licensed Know-how. Adial’s obligation to pay running royalties shall end on a Licensed-Product-by-Licensed Product and
country-by-country basis according to the Term as defined in Section 7.1.

 

		3.3	Third Party Royalties

In the event that (a) a Licensed Product
is deemed by a final, unappealable decision of a court of competent jurisdiction to infringe a claim of a patent(s) owned or controlled
by a third party in any given country, and Adial, an Affiliate thereof, or any Sublicensee licenses such patent(s) in settlement
of such claims, or to avoid future such claims, or (b) Adial, an Affiliate thereof, or any Sublicensee reasonably determines that
it is necessary for freedom to operate to pay royalties to a third party to obtain a license to practice any third party’s
rights in order to manufacture, use, commercialize or develop a Licensed Product in any given country, then Adial may deduct an
amount equal to fifty percent (50%) of any fees, milestones or royalties due to such third parties for such rights (or such amounts
paid by Adial, its Affiliate, or any Sublicensee in settlement of any infringement action) from any amounts due Foundation under
Sections 3.2 and 3.6, provided that the amounts due under Sections 3.2 and 3.6 shall never be reduced by more than fifty percent
(50%) by the effects of this paragraph in any event.

 

    	 	10	 

     

    

 

		3.4	Minimum Annual Royalties

For the 2017 calendar year and each
subsequent calendar year during the term of this Agreement, ADial shall pay to Foundation a Minimum Annual Royalty payment in the
amount of forty-thousand dollars (U.S. $40,000) annually. Adial shall make such payment to Foundation within sixty (60) days of
the end of the calendar year in which it is due. For each calendar year, the payments paid to Foundation under Section 3.2 Running
Royalties for such calendar year’s Net Sales, Sublicensing Revenue, and performance milestones achieved shall be creditable
against the Minimum Annual Royalty due under this Section 3.4 (i.e. amounts shall be due under this Section 3.4 only to the extent
the amount specified below exceeds the amounts paid or payable pursuant to Sections 3.2, 3.5, and 3.6 for a particular calendar
year’s Net Sales, Sublicensing Revenue, and performance milestones).

 

		3.5	Performance Milestone Payments

Adial shall pay to Foundation the
following performance milestone amounts:

 

		A.	A milestone payment of one hundred seventy-five thousand dollars (U.S. $175,000) upon initiation of Phase III clinical trials
(defined as the dosing of the first patient) for the first Licensed Product by or on behalf of Adial, an Affiliate, or Sublicensee;
and

 

		B.	A milestone payment of two hundred seventy-five thousand dollars (U.S. $275,000) upon filing and acceptance for review of a
New Drug Application with the FDA by or on behalf of Adial, an Affiliate, or Sublicensee for the first Licensed Product.

 

		C.	A milestone payment of one million dollars (U.S. $1,000,000) upon approval for sale (including marketing and/or reimbursement
approval, where applicable) of the first Licensed Product by the regulatory authority in the U.S., the European Union or Japan.

 

Fifty percent (50%) of the above
milestone payments shall be due for the second Licensed Product to achieve each milestone. Licensed Products are considered different
Licensed Products if they have a different active ingredient(s).

 

Adial shall promptly provide Foundation
with commercially reasonable evidence of Adial having achieved each of the above-defined Performance Milestones.

 

	3.6	Sublicensing Payments

Adial shall pay to Foundation fifteen
percent (15%) of Sublicensing Revenues. However, Adial shall pay a running royalty on Net Sales of Licensed Products by Sublicensee
under the Running Royalties paragraph hereinabove, and not under this paragraph.

 

    	 	11	 

     

    

 

		3.7	Equity Ownership

Adial shall transfer to Foundation four
percent (4%) of the Equity in Adial in existence as of the Effective Date. Such Equity shall be issued to Foundation in the form
of common stock (or the equivalent limited liability company membership interest). The parties agree that such Equity is valued
at one hundred thousand dollars ($100,000) as of the Effective Date, which shall be the date of the transfer of such Equity, and
that transfer of such Equity fully satisfies the Issue Fee payment due under Section 3.1 above. The transfer of such Equity to
Foundation shall be made in accordance with the terms and conditions of an Equity subscription agreement having commercially reasonable
terms and conditions, the drafting of which shall be the responsibility of Adial, to be executed on the Effective Date. Said Equity
subscription agreement shall contain provisions for, among others, the right for Foundation to have its shares registered by “piggyback”
on any public offering which may be made, subject only to “lock-up” and other restrictive provisions that are no more
restrictive than those binding any other comparable pre-offering Equity holder.

 

Article
4

DILIGENCE

 

		4.1	Commercialization Program

Adial shall use commercially reasonable
efforts to bring at least one Licensed Product to market through a diligent commercialization program, which program shall include
but not be limited to the development, marketing, promotion, distribution and sale of such Licensed Products. A report of Adial’s
efforts, and progress made, in bringing Licensed Products to market shall be provided to Foundation in accordance with the Diligence
Reporting paragraph below. For purposes of this Article 4, the acts of Adial’s Affiliates and Sublicensees and any other
collaborators of Adial shall be deemed the acts of Adial for purposes of satisfying Adial’s obligations hereunder.

 

		4.2	Diligence Milestones

In partial satisfaction of its obligations
under the previous paragraph, Adial shall use commercially reasonable efforts to achieve the following commercial goals (the “Milestones”)
by the dates set forth below (the “Milestone Dates”):

 

		A.	Initiate FDA Phase III clinical trials for a Licensed Product by July 1, 2014; and

 

		B.	Submit a New Drug Application with the FDA for a Licensed Product by July 1, 2016.
	 	 	 
		C.	Achieve first commercial sale of a Licensed Product by July 1, 2017.

 

    	 	12	 

     

    

 

		4.3	Diligence Reporting

Throughout the course of commercial development
of Licensed Products by Adial, its Affiliates and Sublicensees, Adial shall provide Foundation with reasonably detailed confidential
periodic summary reports evidencing its efforts in, progress made, and future plans for, its development of Licensed Products and
bringing same to market (such reports to be provided no less frequently than once per year, the first report to be due within 12
months after the Effective Date). In addition, Adial shall provide to Foundation commercially reasonable evidence of Adial having
achieved each of the above-defined commercial Milestones within thirty (30) days after the corresponding Milestone Date set forth
above. Should Adial fail to achieve a Milestone by the relevant Milestone Date, Adial shall, within thirty (30) days after the
Milestone Date, provide Foundation with commercially reasonable evidence of the existence of a reasonable, good-faith business
or technical justification for such failure. Provided that Adial has made such a showing, Foundation and Adial shall then negotiate
in good faith to reasonably adjust the Milestone Date to take into consideration the reason for such failure. Should Adial and
Foundation be unable, within a reasonable period of time, to reach agreement on such an adjustment, or agreement regarding whether
such an adjustment is warranted, Adial and Foundation hereby agree to submit the matter to binding arbitration in accordance with
the arbitration provisions set forth hereinbelow, and the arbitrators shall determine (i) whether an adjustment of the Milestone
Date is warranted (which shall be determined in the affirmative if the reasons asserted by Adial are found to have been made in
good faith, the evidence provided by Adial is found to be reasonable, and the reasons asserted are found, using reasonable business
judgment, to justify the delay) and, if adjustment is warranted, (ii) what the adjusted Milestone Date should be. However, Adial’s
failure to achieve any Milestone by the Milestone Date for same, followed by Adial’s failure to timely provide commercially
reasonable evidence of the existence of a reasonable, good-faith business or technical justification for such failure, or followed
by the arbitrators’ finding that an adjustment of the Milestone Dates is not warranted, shall constitute a breach of this
Agreement; and upon such occurrences Foundation shall have the right, but not the obligation, to terminate this Agreement in accordance
with the termination provisions set forth below.

 

Article
5

REPORTS AND RECORDS

 

		5.1	Record Accounting

Adial shall keep complete and accurate books
of account containing all particulars that may be necessary for the purpose of showing the amounts payable to Foundation by Adial
hereunder, and for otherwise verifying Adial’s performance hereunder. Such books of account shall be kept at Adial’s
principal place of business, and shall be maintained for at least five (5) years following the end of the reporting period to which
they pertain. Such books and the supporting data shall be open at all reasonable times to the inspection by Foundation’s
internal auditing personnel, and/or an independent certified public accountant retained by Foundation and/or employed by Foundation,
for the purpose of verifying Adial’s royalty statement or compliance in other respects with this Agreement. Such examinations
shall be made during reasonable business hours, and not more than once during each calendar year. Adial shall also provide itself
with a comparable right of audit of each Affiliate and Sublicensee, and Adial shall audit each Affiliate and Sublicensee upon Foundation’s
request, provided that, with respect to each Sublicensee, Adial shall not in any event be required by any such request to audit
any particular Sublicensee more than once during each calendar year. The results of any audit of any Affiliate or Sublicensee will
be subject to inspection by Foundation’s auditors. Should any of the foregoing examinations reveal an underpayment by Adial,
Adial shall immediately pay to Foundation the underpaid amount and interest due thereon (as provided for herein). Should the underpayment
be more than five percent (5%) of the total amount due with respect to the audited period, then Adial shall bear the reasonable,
documented cost of such examination, including accountant’s fees and expenses, and Adial shall promptly reimburse Foundation
for all such audit costs.

 

    	 	13	 

     

    

 

		5.2	Product Reports

Within sixty (60) days of the end of each
calendar quarter following the date of the first commercial sale of a Licensed Product, Adial shall deliver to Foundation complete
and accurate reports, giving such particulars of the business conducted by Adial and its Affiliates and Sublicensees during the
preceding three-month period under this Agreement as shall be pertinent to a royalty accounting hereunder. These reports shall
include at least the following:

 

		A.	The numbers of each Licensed Product sold by Adial and each Affiliate and Sublicensee;

 

		B.	Total receipts for Licensed Products sold by Adial and each Affiliate and Sublicensee;

 

		C.	Deductions applicable as provided in the definition of Net Sales;

 

		D.	Total royalties due to Foundation;

 

		E.	Names and addresses of all Sublicensees of Adial;

 

		F.	Payments and other consideration received from each Sublicensee, as further described in the definition of Sublicensing Revenues;
and

 

		G.	Payments due to Foundation under the Sublicensing Payments paragraph hereinabove.

 

In addition to the foregoing reports,
Adial shall deliver annually a report containing Adial’s financial statements for the preceding twelve (12) months including,
at a minimum, a balance sheet and an operating statement. Such reports shall be considered Confidential Information, and shall
be subject to the confidentiality provisions contained herein. Furthermore, at any time during the term of this Agreement, in the
event that Adial or an Affiliate no longer qualifies as a “small entity” (as defined in 37 C.F.R. 1.27), or if Adial
sublicenses any Licensed Rights to a Sublicensee that is not, or at some point does not, qualify as a “small entity”,
Adial shall promptly notify Foundation of same.

 

    	 	14	 

     

    

 

		5.3	Payments

With each quarterly report submitted, Adial
shall pay to Foundation the royalties and other payments due and payable under this Agreement. If no royalties shall be due, Adial
shall so report. Payments shall be paid in United States Dollars in Charlottesville, Virginia, or at such other place as Foundation
may reasonably designate consistent with the laws and regulations controlling in any foreign country. If any currency conversion
shall be required in connection with the payment of royalties hereunder, such conversion shall be made by using the exchange rate
stated in the Wall Street Journal on the last business day of the calendar quarterly reporting period to which such royalty payments
relate, and all transfer fees in connection with payment shall be borne by Adial. All payments shall be made within sixty (60)
days after the end of the calendar quarter in which they became due and payable to Foundation. Any amounts due hereunder (except
for the Past Patenting Costs) which are unpaid sixty (60) days after the end of the calendar quarter shall bear simple interest
accrued at the annual rate of twelve percent (12%). Any taxes required to be withheld by Adial from payments otherwise due hereunder
in order to comply with the tax laws of the United States or any other country shall be promptly paid by Adial to the appropriate
tax authorities, the amount payable to Foundation under this Agreement shall be reduced by the amount withheld or paid for taxes
on such payment amounts, and Adial shall furnish Foundation with original official tax receipts or other appropriate evidence issued
by the appropriate tax authorities sufficient to enable Foundation to support a claim for income tax credit or refund in respect
of any sum so withheld. In each country where the local currency is blocked and cannot be removed from the country under such country’s
applicable law, royalties accrued in that country shall be paid to the Foundation in the country in local currency by deposit in
a local bank designated by the Foundation, unless the parties otherwise agree.

 

		5.4	Financial Projections

To
assist Foundation in projecting its future incomes, beginning when royalties are first paid, Adial shall provide Foundation with
copies of any projections of Net Sales prepared for its annual financial statements or provided to actual or potential investors
during the preceding calendar year within three (3) months of the end of each calendar year. Foundation acknowledges that such
projections are speculative, and that Adial shall have no liability for Foundation’s reliance on same. Foundation agrees
that such projections will be considered Confidential Information, and shall be subject to the confidentiality provisions contained
herein.

 

Article
6

PATENT PROSECUTION

 

		6.1	Patent Prosecution

 

6.1.1.     
Foundation is the owner of the Licensed Patents, and shall have exclusive responsibility for the preparation, filing, prosecution
and maintenance of the Licensed Patents, including choice of patent counsel. However, Foundation shall keep Adial
fully informed of patent prosecution, will seek Adial’s comments and suggestions
prior to taking material actions for the same, and will take all prosecution actions reasonably recommended by Adial
which would expand the scope or term of rights sought. Foundation will also authorize Adial
to communicate directly with Foundation’s patent counsel. The parties shall cooperate with each other to insure that each
Licensed Patent reflects and will reflect, to the extent practicable and to the best of Adial’s and Foundation’s knowledge,
all items of commercial interest to Adial. Adial will cover all of Foundation’s
Patenting Costs, in accordance with the Patent Reimbursements paragraph below. Amounts paid to Foundation to cover Patenting Costs
shall first be applied to outstanding Patenting Costs in the order in which they were accrued.

 

    	 	15	 

     

    

 

6.1.2.     
All information exchanged between Foundation’s counsel, the parties and/or the Inventors regarding preparation, filing,
prosecution or maintenance of the Licensed Patents shall be deemed Confidential Information.  In addition, the parties acknowledge
and agree that, with regard to such preparation, filing prosecution and maintenance of the Licensed Patents, the interests of the
parties as licensor and licensee are to obtain the strongest and broadest patent protection possible, and as such, are aligned
and are legal in nature.  The parties agree and acknowledge that they have not waived, and nothing in this Agreement constitutes
a waiver of, any legal privilege concerning the Licensed Patents, including without limitation, privilege under the common interest
doctrine and similar or related doctrines.

 

		6.2	Patent Reimbursements

 

6.2.1.     
Ongoing Patenting Costs: For any Patenting Costs to be incurred by counsel retained by or employed by Foundation, Foundation
or its counsel shall inform Adial (either orally or in writing, including via email) of all material actions necessary for the
filing, prosecution, issuance and maintenance of such Licensed Patents, together with an estimate of Patenting Costs for same.
Adial shall promptly instruct Foundation in writing whether to take such action at Adial’s expense.

 

		A.	For prosecution and maintenance of foreign applications and patents, if instruction to take such action is given, Adial’s
written response shall be accompanied by payment of all of the estimated Patenting Costs to Foundation’s counsel, unless
Adial has previously made arrangements with counsel to pay such Patenting Costs in a manner acceptable to Foundation. Adial shall
remit payment of the balance of the actual Patenting Costs incurred within thirty (30) days after its receipt of invoices for such
actual Patenting Costs; if the portion of such Patenting Costs paid in advance by Adial exceeds actual Patenting Costs incurred,
the overpayment shall be credited toward future Patenting Costs or promptly refunded to Adial, as elected by Adial in its sole
discretion.

 

		B.	For prosecution or maintenance of U.S. applications or patents, Adial shall reimburse Foundation or its counsel within thirty
(30) days after its receipt of the invoices for Patent Costs incurred.

 

Payments directly to Foundation’s counsel are made with
the understanding that such payments do not create an attorney-client relationship between Adial and such counsel. Time is of the
essence with respect to such payments.

 

If Foundation does not receive from Adial written instruction
to take a material action to protect a Licensed Patent within thirty (30) days of the statutory bar date for such material action,
and if the Licensed Patent is a foreign application or patent, verification from Adial that estimated Patenting Costs have been
received by Foundation’s counsel, Foundation shall have no obligation to take or have taken such material action to protect
the Licensed Patent at issue, even if the result is the irrevocable loss of rights. If Adial does not provide written instructions
to take a material action to protect a Licensed Patent within thirty (30) days of any statutory bar date or, with respect to any
foreign application or patent, verify that any above-referenced estimated Patenting Costs have been received by Foundation’s
counsel, Foundation shall have the right to (i) abandon some or all of such patents or patent applications at Foundation’s
sole discretion or (ii) incur those costs at its own expense, and Foundation will notify Adial of its intent when Foundation makes
its decision. In either case, Foundation shall have the right, upon ten (10) days written notice to Adial, to exclude such patents
or patent applications from the definition of Licensed Patents and licenses granted hereunder, and Foundation shall be free to
license rights to such patents or patent applications to third parties without any further obligation to Adial.

 

    	 	16	 

     

    

 

6.2.2.     
Unpaid Patenting Costs: Any amounts due hereunder that remain unpaid thirty (30) days after Adial receives an invoice
from Foundation or its counsel for same shall bear simple interest accrued at the annual rate of twelve percent (12%) from the
date such payment first became due. In addition, after said thirty (30) days, Foundation shall thereafter have the right to take
action to terminate this Agreement in accordance with the Licensor Termination paragraph below. However, nothing herein shall be
construed to release Adial from any obligations to reimburse or pay Patenting Costs
that matured prior to the effective date of termination of this Agreement in accordance with the Licensor Termination paragraph.

 

6.2.3.     
Past Patenting Costs: Within thirty (30) days after the Effective Date, Adial shall reimburse Foundation for any
Patenting Costs incurred by Foundation prior to the Effective Date that have not been previously reimbursed by AC or Adial.

 

		6.3	Infringement of Licensed Patents

If either party believes that any of the
rights granted hereunder are being or have been infringed by a third party, such party shall notify the other of such belief, and
as part of such notice shall provide copies of all documentary evidence of the alleged infringement. Except in the limited cases
for which Foundation has excluded from the license the right to bring an infringement action against Inventors and their not-for-profit
institutions in the Reservation by Licensor paragraph above, Adial shall have the
first option to bring an infringement action against the alleged infringer at Adial’s
sole expense. If Adial exercises its option, which shall be made in writing within one hundred and eighty (180) days after the
parties’ receipt of said notice of infringement, Foundation will cooperate as requested by Adial
(including but not limited to Foundation being joined as a party to any such action), and will be compensated by Adial
for its reasonable, documented out-of-pocket expenses, which Foundation will only be required to expend if Adial
has approved same for reimbursement.

 

Adial shall be free to enter into any settlement, consent judgment,
or other voluntary disposition of any such matter, provided that no settlement, consent judgment, or other voluntary final disposition
of such suits that materially adversely affects the Licensed Patents or admits fault or wrongdoing on the part of Foundation may
be entered into without the consent of Foundation, which consent shall not be unreasonably withheld. Foundation shall provide Adial
notice of such consent or denial of such consent within ten (10) days of any request for consent by Adial, provided that in the
event Foundation wishes to deny such consent, such notice shall include a written description of Foundation’s reasonable
objections to the proposed settlement, consent judgment, or other voluntary disposition. If Foundation has not consented within
ten (10) days or has denied such consent, Adial will meet with Foundation in Charlottesville, VA, to discuss the proposed settlement,
consent judgment, or other voluntary disposition. If, after such meeting, Foundation has not provided notice of its consent, the
parties will submit any disputes over the reasonableness of Foundation’s objections to expedited, single-arbitrator arbitration
in Washington, D.C. No discovery will be allowed, and each party will have one (1) hour to present its case to the arbitrator

 

    	 	17	 

     

    

 

Any damages paid (including without limitation statutory damages,
compensatory damages, lost profits damages, exemplary damages, increased damages, and awards of costs and attorney’s fees)
or amounts received in settlement with respect to, in either case, the infringement of the Licensed Patents shall first be applied
to the reimbursement of Adial’s reasonable costs, expenses and legal fees, including
amounts Adial has reimbursed to Foundation. The remaining balance of such damages
or amounts received shall be retained by Adial and treated as Sublicensing Revenue subject to payments under Section 3.6 (with
the date of such settlement or disposition being deemed the “point at which the Sublicense is executed” for purposes
of determining payments due under Section 3.6). In the event that Adial does not timely exercise its option to bring or pursue
an infringement action against an alleged infringer, Foundation shall have the right (but not the obligation) to do so at its sole
expense, and to retain all recovered damages. In such instances Adial will cooperate as requested by Foundation, and will be reimbursed
by Foundation for its reasonable out-of-pocket expenses, which Adial will only be required to expend if Foundation has approved
same for reimbursement.

 

In the event of any challenge to the validity of any Licensed
Patent (or similar proceeding), Adial will have the right to participate (at its own expense) in the proceedings.

 

		6.4	Patent Extensions

Adial and Foundation agree that the Licensed
Patents shall be extended by all means provided by law or regulation, including without limitation extensions provided under U.S.
law at 35 U.S.C. §§154(b) and 156. Adial hereby agrees to provide Foundation with all necessary assistance in securing
such extensions, including without limitation, providing all information regarding applications for regulatory approval, approvals
granted, and the timing of same. Adial acknowledges that extensions under 35 U.S.C. §156 must be applied for within sixty
(60) days of the date that a Licensed Product receives permission under the provision of law under which the applicable regulatory
review period occurred for commercial marketing or use, and that Adial’s failure to promptly provide the necessary information
or assistance to Foundation during such sixty day period will cause serious injury to Foundation, for which Adial will be liable
at law.

 

Article
7

DURATION AND TERMINATION

 

		7.1	Contract Term

The term of this Agreement (the “Term”)
shall commence on the Effective Date and shall continue, on a country-by-country and Licensed Product-by-Licensed Product basis:

 

(i) in each Patent Country until the expiration,
abandonment, withdrawal, invalidation, revocation, or otherwise rendering unenforceable of the last to expire or be revoked, abandoned,
withdrawn, invalidated, or otherwise rendered unenforceable of the Licensed Patents covering the Licensed Product in such country
(except when a Patent Country becomes a Non-patent Country in accordance with Section 1.12 above, in which case clause (ii) below
shall then apply);

 

    	 	18	 

     

    

 

(ii) in Non-patent Countries until the expiration,
abandonment, withdrawal, invalidation, revocation, or otherwise rendering unenforceable of the last to expire or be revoked, abandoned,
withdrawn, invalidated, or otherwise rendered unenforceable of the Licensed Patents covering the Licensed Product in the U.S.,
European Union, or Japan;

 

unless sooner terminated in accordance with the provisions hereinbelow.
Upon expiration of this Agreement pursuant to the foregoing, Adial shall have the perpetual, unrestricted, fully-paid, royalty-free
right, with rights of sublicense, to make, use, and sell, lease, import or otherwise dispose of the applicable Licensed Product(s)
in the applicable country(ies).

 

		7.2	Bankruptcy

If Adial becomes bankrupt or insolvent,
files a petition in bankruptcy, or is placed in the hands of a receiver, assignee, or trustee for the benefit of creditors, whether
by the voluntary act of Adial or otherwise, Adial shall notify Foundation in writing and Foundation shall have the right to terminate
this Agreement upon written notice given within thirty (30) days of such notice from Adial, inasmuch as permitted under applicable
and prevailing law, except that if Adial shall have such proceeding discharged within one hundred and twenty (120) days then this
Agreement shall be reinstated as if it had never been terminated.

 

		7.3	Licensor Termination

If Adial fails to make a payment to Foundation
of running royalties, Patenting Costs or any other payment in accordance with the terms of this Agreement, or upon Adial’s
other material breach or default of any material term of this Agreement (except for any breach of provision of Article 10 Indemnification
and Insurance hereinbelow), or non-payment or other material breach of any other agreement between Adial or its Affiliates and
Foundation, UVA or their Affiliates (including, for example, sponsored research agreements, procurement agreements, or other license
or option agreements), Foundation shall have the right to serve notice upon Adial of Foundation’s intention to terminate
the entirety of the rights, privileges and licenses granted hereunder within sixty (60) days from the mailing of such notice. If
Adial does not timely pay all such overdue amounts to Foundation, its Affiliate, or UVA, or, as applicable, if Adial fails to reasonably
cure such material breach or default and to timely provide Foundation with reasonably acceptable written evidence of such cure,
then the rights, privileges, and licenses granted hereunder may be immediately terminated by Foundation at any time after said
sixty (60) day period by written notice to Adial. Notwithstanding the above, if the matter of breach is disputed in Adial’s
reasonable determination and the parties authorized officials are unable to reach agreement, then the matter shall be submitted
to arbitration per Section 9.2 Arbitration Proceedings during which the termination of this Agreement will not become effective.
After the arbitration decision, Adial shall have thirty (30) days to cure such breach and if not cured, termination will automatically
become effective.

 

    	 	19	 

     

    

 

		7.4	Licensee Termination

Adial shall have the right to terminate
this Agreement, in whole or with respect to any Licensed Patents, at any time by providing Foundation with sixty (60) days advance
notice by certified mail. Upon such termination, Foundation shall be free to license such rights to third parties, without any
further obligation to Adial whatsoever.

 

		7.5	Continued Obligations

Upon termination of this Agreement in whole
or in part for any reason, nothing herein shall be construed to release either party from any obligation that matured prior to
the effective date of such termination. Except as set forth in the Lapse of Coverage paragraph hereinbelow, after the effective
date of such termination, Adial and its Affiliates and Sublicensees may, for a period of one (1) year, sell all Licensed Products,
and complete Licensed Products in the process of manufacture at the time of such termination and sell the same, provided that (i)
Adial shall pay to Foundation the running royalties and other payments as required hereinabove (subject to any expiration under
Section 7.1), (ii) insurance required hereunder shall be in effect, and (iii) Adial shall submit the reports required by the Product
Reports paragraph hereof.

 

		7.6	Effect on Sublicenses

Upon termination of this Agreement in whole
or in part, for any reason, Adial shall promptly notify its Sublicensees of such termination. Upon termination of this Agreement,
(i) Adial shall no longer have the authority to grant further sublicenses and (ii) each Sublicense shall, to the extent provided
for in such Sublicense and not imposing any obligations on Foundation in excess of those imposed on Foundation herein, survive
termination of this Agreement and automatically be assigned to Foundation upon such termination, provided that the financial terms
for Foundation are no less favorable than those in this Agreement.

 

		7.7	Survivability

The provisions of the Financial Considerations,
Reports and Records, Confidentiality, Indemnification and Insurance, Representations and Warranties, Export Control and Non-Use
of Names articles of this Agreement shall survive termination of this Agreement. In the event of a partial termination hereof (e.g.,
with respect to a Licensed Patent in a particular country), those same articles shall survive with respect to the terminated rights,
and all of the provisions hereof shall continue in full force and effect with respect to the non-terminated rights.

 

    	 	20	 

     

    

 

Article
8

CONFIDENTIALITY

 

		8.1	Confidential Information

During the term of this Agreement and for
a period of five (5) years thereafter, the parties agree that all Confidential Information shall be maintained in confidence by
the receiving party and shall not be disclosed by the receiving party to any third parties unless agreed to in writing by the party
providing the information; nor shall any such Confidential Information be used by the receiving party for any purpose other than
those contemplated by this Agreement; except, however, the parties agree that nothing herein will be construed to prevent (i) the
parties from providing information about this Agreement and amounts paid as part of other routinely prepared summary documents
or financial statements, and (ii) Foundation from reporting consideration received hereunder to UVA and the Inventors. Additionally,
Confidential Information may be disclosed if required by law or regulation; if required for submissions to the FDA or similar foreign
agencies; or, by Adial, if disclosed to current or potential investors, sublicensees, or development partners that are bound by
confidentiality agreements.

 

		8.2	Security

Adial and Foundation agree that the confidentiality
obligations hereunder shall require that each party use those security and confidentiality procedures and practices as each would
use for its own confidential records, which shall in any event be no less than commercially reasonable. Adial acknowledges that
UVA and Foundation are separate entities, that these confidentiality provisions do not bind UVA, and that the protection of Adial’s
Confidential Information may require Adial to enter into a separate confidentiality agreement with UVA.

 

		8.3	Publication

In recognition of the academic mission of
the University of Virginia, Adial agrees that nothing herein shall prevent UVA or Foundation from disclosing or publishing UVA
or Foundation information, or create any legal liability for doing so, irrespective of whether such information comprises Licensed
Know-how or other UVA or Foundation Confidential Information, provided that (i) if the Inventors provide the Foundation with a
manuscript of any proposed paper or an abstract of any proposed presentation describing any inventions included within the Licensed
Rights or other technology claimed or described in the patents and patent applications included in the Licensed Patents, Foundation
shall provide the same to Adial and (ii) as reasonably requested by Adial, Foundation shall instruct its patent counsel to make
such patent filings or conduct the prosecution of the patents and patent applications included in the Licensed Patents as appropriate
prior to publication or presentation of such material to prevent the loss of any rights granted under this Agreement.

 

Article
9

GOVERNING LAW AND ARBITRATION

 

		9.1	Law To Govern

This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia, without regard to its or any other jurisdiction’s
conflicts of laws provisions.

 

    	 	21	 

     

    

 

		9.2	Arbitration Proceedings

Claims, disputes, or controversies between
the parties concerning the validity, construction, or scope of any of the Licensed Patents shall be resolved in the Federal District
Court seated in Washington, DC. All other claims, disputes or controversies arising under, out of, or in connection with this Agreement,
which have not been resolved by good faith negotiations between the parties within sixty (60) days of identification of such controversy,
shall, upon notice from one party to the other following such sixty (60) day period, be resolved by final and binding arbitration
by a panel of three (3) arbitrators in Washington, DC, under the Commercial Arbitration Rules of the American Arbitration Association
(the “AAA”), except where those rules conflict with this provision, in which case this provision controls. The arbitration
shall be conducted by a panel of three (3) independent, neutral arbitrators that are industry experts experienced in the issues
comprising the dispute. Adial and Foundation shall each be entitled to select one such arbitrator, with the two such arbitrators
so selected selecting the third such arbitrator. In the event either party fails to select its arbitrator within ten (10) days
of the initiation of arbitration under this Section 9.2, the arbitrator selected by the other party within such ten (10) day period
shall be entitled to select the third such arbitrator. The arbitrators shall have no power to add to, subtract from, or modify
any of the terms or conditions of this Agreement. Each party shall bear its own costs, fees and expenses in the arbitration and
shall share equally the arbitrators’ fees, unless the arbitrators determine that their fees are to be paid by the non-prevailing
party. Any award rendered in such arbitration may be enforced by either party in the courts of the Commonwealth of Virginia seated
in Charlottesville. The parties hereby irrevocably consent and submit to the exclusive jurisdiction and venue of each court and
arbitration site cited above for the purposes each is mentioned. Notwithstanding the foregoing, either party may seek injunctive,
equitable, or similar relief from any court of competent jurisdiction as necessary to enforce its rights without the requirement
of arbitration (including but not limited to a party’s rights with respect to patent infringement, breaches of confidentiality,
misappropriation of trade secrets, and the like).

 

Article
10

INDEMNIFICATION AND INSURANCE

 

		10.1	Licensee Indemnification

Adial agrees to indemnify, hold harmless
and defend Foundation and UVA against any and all claims arising from Adial’s, its Affiliates’ or Sublicensees’
exercise of any rights under this Agreement, including without limitation, against any damages, losses or liabilities whatsoever
for death, injury to person or damage to property, or for the infringement of third party intellectual property rights, as a result
of the making, use, importation, sale, development, design, promotion, possession, operation or other disposition of any Licensed
Products, or the practice of the Licensed Patents or the Licensed Know-how by Adial, its Affiliates, Sublicensees, customers, assignees,
or other transferees, to the extent that such claims, damages, losses or liabilities do not result from Foundation’s or UVA’s
negligence, intentional misconduct, breach of this Agreement, or failure to comply with any applicable laws, rules, or regulations.
As used in this paragraph, “UVA” and “Foundation” include their officers, directors, trustees, personnel,
agents, employees, faculty, students, successors and assigns; “Adial” includes any and all of its parents, assigns,
successors, officers, directors, trustees, personnel, agents, and employees. Adial acknowledges that the technology embodied in
the rights licensed hereunder is experimental and agrees to take reasonable precautions to prevent death, personal injury, illness
and property damage. Adial shall obtain and maintain product liability and general liability insurance in accordance with the requirements
of Section 10.2 herein, and shall require each of its authorized Affiliates and Sublicensees to have such insurance. Evidence of
the existence and sufficiency of such insurance shall be provided to Foundation upon request.

 

    	 	22	 

     

    

 

		10.2	Extent of Insurance

Neither Adial nor any Affiliate shall make,
use, import, offer to sell or sell any Licensed Product, or engage in any other act involving any Licensed Product or the Licensed
Rights, if such act could possibly create material risk of a claim against Foundation or UVA for personal injury of property damage,
unless Adial shall have first provided Foundation with a certificate of insurance, to be updated yearly, proving that Adial or
such Affiliates or Sublicensees have in force, during the term of this Agreement, a policy of liability insurance with sufficient
occurrence and annual aggregate limits to indemnify Foundation and UVA against liability claims for accidental death, injury, illness
or other damages arising from such act, as required by the previous paragraph. Such insurance policy must, during the applicable
term specified in Section 10.3 below, consist of broad form contractual liability coverage and shall further include liability
insurance covering Licensed Products with total limits of not less than:

 

		(1)	ten million U.S. dollars (U.S. $10,000,000) annual aggregate and five million U.S. dollars (U.S. $5,000,000) for each occurrence
as a combined single limit for bodily injury or death and for property damage for the use of Licensed Products in, on or with humans
as part of clinical trials, prophylactic, diagnostic or therapeutic use undertaken on behalf of Adial, its Affiliates, or its Sublicensees,
or with Licensed Products supplied by Adial, its Affiliates, or its Sublicensees. Such insurance policy shall name Foundation and
UVA as additional insured parties but shall not include UVA- or investigator-sponsored trials independent of Adial, its Affiliates,
or its Sublicensees being conducted at UVA with respect to any Licensed Product; and

 

		(2)	two million U.S. dollars (U.S. $2,000,000) annual aggregate and one million U.S. dollars (U.S. $1,000,000) for each occurrence
as a combined single limit for bodily injury or death and for property damage for the use of Licensed Products not covered by (1)
above; or

 

		(3)	if Adial has provided UVAPF with evidence that is reasonably acceptable to demonstrate that Adial or its Sublicensee has sufficient
financial resources to support meaningfully the indemnification obligations undertaken herein and agrees to do so, then Adial and/or
its Sublicensee shall have the option of self insuring.

 

Adial agrees that, unless coverage satisfying the requirements
of this Agreement is first provided under another policy in compliance with the foregoing provisions and without any gap in coverage,
the required coverage will not be reduced below the minimums established above or canceled by Adial without the prior written approval
of the Executive Director of Foundation. Any such reduction of such coverage below the minimums described above without written
approval or first obtaining alternative coverage satisfying the requirements of this Agreement under another policy in compliance
with the foregoing provisions and without any gap in coverage, or any other violation of the provisions of this paragraph, shall
be deemed a material breach of this Agreement. Adial may request elimination of the above insurance requirements provided it has
provided reasonable evidence that Adial or its Sublicensee has sufficient financial resources to support meaningfully the indemnification
obligations undertaken, such request not to be unreasonably withheld.

 

    	 	23	 

     

    

 

		10.3	Term of Insurance

Unless expressly waived in writing by Foundation,
Adial agrees that the above-described liability insurance policy shall be continuously maintained in force for so long as this
Agreement remains in effect, and such policy will provide coverage as described above whether such liability may occur or be claimed
for a period of up to six (6) years after termination hereof, provided that the insurance coverage described in paragraph (1) of
Section 10.2 shall not be required of Adial until such time as Adial, an Affiliate thereof, or a Sublicensee has on its own behalf
undertaken the use of Licensed Products in, on or with humans as part of clinical trials, diagnostic or therapeutic use. Neither
Adial nor any third party shall terminate or reduce the face value of such insurance coverage below the minimums established above
while such policy is in effect, unless coverage satisfying the requirements of this Agreement is first provided under another policy
in compliance with the foregoing provisions and without any gap in coverage.

 

		10.4	Lapse of Coverage

This Agreement and the licenses granted
herein to Adial shall immediately and automatically terminate without notice in the event Adial, or its Affiliates, Sublicensees
or other party acting under authority of Adial, fails to obtain the insurance required hereunder, or if the insurance lapses or
is cancelled and coverage satisfying the requirements of this Agreement is not first provided under another policy in compliance
with the foregoing provisions. A termination occurring under this paragraph shall occur and become effective at the time such insurance
coverage ends or becomes required and is not obtained, and Adial and its Affiliates shall have no right to complete production
and sale of Licensed Products under the Continued Obligations paragraph hereinabove. Nothing herein shall be construed to release
either party from any obligation that matured prior to the effective date of such termination. Notwithstanding the foregoing, to
the extent that automatic termination resulted from a lapse of the above-required insurance, and to the extent that such rights
are still available for licensing, Adial shall have the right to reinstate the effectiveness of this Agreement by obtaining the
required insurance, whereupon this Agreement shall automatically become effective as of the date of reinstatement of said insurance,
and shall remain in full force and effect without any further action of the parties.

 

		10.5	Sublicensee Insurance

Adial shall insert indemnification and insurance
requirements reasonably sufficient to enable Sublicensee to comply with Adial’s obligations under this Article 10 in any
Sublicense in which Adial grants to a third party the right to make, use, import, offer to sell or sell any Licensed Product, including
naming UVA and Foundation as additional insured parties for the sale or other dispensation of Licensed Product.

 

    	 	24	 

     

    

 

Article
11

REPRESENTATIONS AND WARRANTIES

 

		11.1	No Encumbrances

Each party hereto acknowledges and agrees
that no representation or promise not expressly contained in this Agreement has been made by the other party hereto or by any of
its agents, employees, representatives or attorneys concerning the subject matter of this Agreement. Each party further warrants
and represents that, to the best of its knowledge, it has the full right and power to make the promises and grant the licenses
set forth in this Agreement and that there are no outstanding agreements, assignments or encumbrances in existence which are inconsistent
with the provisions of this Agreement.

 

		11.2	Licensee Warranty

Adial warrants and represents that it shall
use commercially reasonable efforts to diligently pursue the development, manufacture, and sale of at least one Licensed Product
throughout the term of this Agreement. For purposes of this Section 11.2, the acts of Adial’s Affiliates and Sublicensees
shall be deemed the acts of Adial for purposes of satisfying Adial’s obligations hereunder.

 

		11.3	Licensor Warranty

Foundation hereby represents and warrants
to Adial that to the best of its knowledge Foundation is the owner of all right, title, and interest in the Licensed Rights, free
and clear of any claims or encumbrances, except as indicated in the Government Rights and the Reservation by Licensor paragraphs
hereinabove. However, in the event that a third party makes a claim of inventorship or ownership of a Licensed Patent based solely
upon information not known to Foundation prior to the Effective Date, and after a good faith evaluation of such claim it is necessary
to add such party to the Licensed Patent as an inventor and/or to assign an undivided interest in and to said Licensed Patent to
such third party, then such action shall not be considered a breach of this Agreement. In such instance, Foundation and Adial shall
negotiate in good faith to reasonably amend the Agreement to take into consideration any change in the scope of the license granted
herein resulting from such co-ownership of the Licensed Patent at issue.

 

		11.4	Infringement Actions by 3rd Parties

Adial acknowledges and agrees that all rights
licensed by Foundation hereunder are licensed without any representation, indemnification or warranty with respect to possible
infringement of third party rights. In the event of a third party infringement action against either party with respect to Adial’s
or its Affiliates’ or Sublicensees’ use, manufacture, or sale of any Licensed Product, Adial will defend Foundation
at Adial’s expense, with the understanding that breaching such obligation may result in a default judgment against Adial,
its Affiliates, Sublicensees, and/or Foundation (however, Adial’s failure to defend shall not prevent Foundation from defending
itself). Adial shall indemnify, defend and hold Foundation harmless from any such judgment, and without limitation shall pay any
damages awarded in any judgment against Foundation. Foundation will cooperate as requested by Adial, and will be compensated by
Adial for its reasonable out-of-pocket expenses incurred in such cooperation, which Foundation will only be required to expend
if Adial has approved same for reimbursement. No settlement, consent judgment, or other voluntary final disposition of any suit
that would affect the validity, scope or enforceability of the Licensed Rights, by estoppel, admission or otherwise, or Foundation’s
rights in or to same, may be entered into without the consent of Foundation. Notwithstanding anything to the contrary, Adial shall
not in any event be responsible for any third party infringement action resulting from the activities of Foundation, UVA, or, to
the extent acting in their role as UVA faculty and researchers, the Inventors, if such activities are conducted entirely independently
of Adial, its Affiliates, or Sublicensees.

 

    	 	25	 

     

    

 

		11.5	Disclaimers

Nothing in this Agreement shall be construed
as (i) a warranty or representation by Foundation as to the validity or scope of any Licensed Rights, (ii) a warranty or representation
that anything made, used, imported, developed, promoted, offered for sale, sold, or otherwise disposed of under any license granted
in this Agreement does not or will not infringe patents, trade secrets or other proprietary rights of third parties; (iii) a representation
or warranty of operability or that development of a commercial products is possible; (iv) an obligation to bring or prosecute actions
or suits against third parties for infringement; (v) conferring the right to use in advertising, publicity or otherwise any trademark,
trade name, or names, or any contraction, abbreviation, simulation or adaptation thereof of Adial, UVA or Foundation (except at
required by law or other regulation); (vi) conferring by implication, estoppel or otherwise any license or rights under any patents
of Foundation other than the Licensed Patents; (vii) any other representations or warranties, either express or implied, unless
specified in this Agreement; (viii) directly or indirectly operating or applying as a waiver of sovereign immunity by the Commonwealth
of Virginia; or (ix) imposing any obligation or any liability on any party contrary to the laws of the Commonwealth of Virginia.
EXCEPT WITH RESPECT TO THE WARRANTIES MADE EXPLICITLY BY FOUNDATION IN THIS AGREEMENT, (I)ALL RIGHTS ARE LICENSED HEREUNDER “AS
IS” AND (II) FOUNDATION DISCLAIMS AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE WITH RESPECT TO THE LICENSED RIGHTS, OR ANY LICENSED PRODUCTS.

 

		11.6	Limitation of Liability.

NEITHER PARTY SHALL BE ENTITLED TO RECOVER
FROM THE OTHER PARTY ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT.

 

Article
12

PAYMENTS AND NOTICES

 

Any payment, notice, or other communication
given under this Agreement (except for correspondence necessary in Article 6 Patent Prosecution hereinabove) shall be in writing
and sent by certified first class mail (return receipt requested) or overnight courier, or by facsimile or other electronic means,
provided that a copy of such facsimile is promptly sent by certified first class mail (return receipt requested) or overnight courier,
addressed to the parties as follows (or at such other addresses as the parties may notify each other in writing):

 

	
        Adial:

        ADial Pharmaceuticals, LLC

        1001 Research Park Drive

        Suite 100

        Charlottesville, VA 22911

        Attention: CEO
	
        Foundation:

        University of Virginia Patent Foundation

        250 West Main Street, Suite 300

        Charlottesville, Virginia 22902

        Attention: Executive Director

 

    	 	26	 

     

    

 

Article
13

ASSIGNMENT

 

So long as Adial
is not in material breach of this Agreement in any respect, Adial may transfer this Agreement, by assignment or otherwise, and/or
the rights acquired by it hereunder upon obtaining consent from Foundation for the same (such consent will not be unreasonably
withheld), provided that any transfer or assignment to an Affiliate of Adial or that is made in conjunction with the sale or other
transfer of all of that portion of Adial’s business concerning addiction in humans, regardless of whether such transfer is
in the form of a sale of the Adial’s assets, a sale of at least the majority shares of Adial’s Equity or other form
of acquisition, an equity exchange or other form of merger, acquisition, consolidation, reorganization, or other transfer or similar
transaction shall not require the prior consent of Foundation (the parties acknowledge that this Agreement is inherently transferred
by Adial in a merger or acquisition, and the parties hereby consider this Agreement transferred as a result of such transfer of
Adial’s business). Adial shall give Foundation written notice of Adial’s intent to so transfer this Agreement twenty
(20) days prior to completion of such transfer, along with a draft of the proposed transfer agreement as it exists at that time
and a copy of the proposed transfer agreement in substantially the form in which it is to be executed at least three (3) days before
said execution, pursuant to which such transferee shall agree in writing to be bound by the terms and conditions of this Agreement.
Upon completion of such transfer, the term “Adial” as used herein shall include such transferee. If the transferee
in any transfer or assignment contemplated above shall not have agreed in writing to be bound by the terms and conditions of this
Agreement, Foundation shall have the right to terminate this Agreement upon written notice.

 

Article
14

NON-USE OF NAMES

 

Except as provided by law or other regulations,
neither party shall use the names of the other, or any adaptation thereof, or of their employees, officers, or agents, or any adaptation
thereof, in any advertisement, promotional or sales literature without prior written consent obtained from such party in each case.
However, Adial may state that it licensed from Foundation one or more of the patents and/or patent applications comprising the
Licensed Patents, and Foundation may state that it licensed to Adial one or more of the patents and/or patent applications comprising
the Licensed Patents, and may further include (i) UVA Inventors’ names, (ii) invention titles and summaries, (iii) technology
field of use, and (iv) the type and extent of the license, but may not include terms and conditions of this Agreement, or other
Confidential Information, unless such disclosure is required by law, rule or regulation. The parties agree to take all reasonable
precautions to prevent any such public information regarding the Licensed Patents or this Agreement from containing inaccuracies
or from otherwise being misconstrued or misleading, and such information shall clearly indicate the party responsible for the conception
of the Licensed Patents, and the ongoing research and development efforts at Adial and at UVA. Foundation understands that Adial
will provide copies of this Agreement and other Foundation Confidential Information to third parties under confidentiality agreements
in the ordinary course of its business.

 

    	 	27	 

     

    

 

Article
15

EXPORT CONTROLS

 

It is understood that Foundation and Adial
are subject to United States laws and regulations (including the Arms Export Control Act, as amended, and the Export Administration
Act of 1979) controlling the export of technical data, computer software, laboratory prototypes, and other commodities, and that
such obligations hereunder are contingent on compliance with applicable United States export laws and regulations. The transfer
of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or
written assurances by Adial that Adial shall not export data or commodities to certain foreign countries without prior approval
of such agency. Foundation does not represent that a license is not required, or that, if required, such a license shall be issued.

 

Article
16

MARKING

 

Adial shall mark all Licensed Products made
or sold in the United States in accordance with 35 U.S.C. §287(a), and will mark all Licensed Products made or sold in other
countries in accordance with the laws and regulations then applicable in each such country; and Adial acknowledges that it will
be liable to Foundation for actual infringement damages lost due to improper or defective patent marking, but not any punitive,
treble, or court-increased damages that might otherwise have been awarded for willful infringement.

 

Article
17

FORCE MAJEURE

 

No party shall be liable for any failure
to perform as required by this Agreement, to the extent such failure to perform is caused by acts of God or natural disaster, interference
by civil or military authorities, non-administrative government actions, and war or terrorism.

 

    	 	28	 

     

    

 

Article
18

SEVERABILITY

 

Should any provision of this Agreement be
determined to be unenforceable or otherwise unlawful, then such provision shall be without effect, as if such provision had not
been included herein, and the remaining terms of this Agreement shall survive. In such instance, the parties shall promptly meet
to agree upon further terms which shall, within the confines of the law, most substantially satisfy the intention of the parties
as reflected by the ineffective provision. If such agreement between the parties is not reached within thirty (30) days of the
date such provision is determined to be unenforceable or otherwise unlawful, the parties agree to submit such matter to binding
arbitration in accordance with the arbitration provisions in Section 9.2 hereinabove.

 

Article
19

HEADERS

 

The article and paragraph headings contained
in this Agreement are for reference purposes only, and shall not in any way affect the meaning or interpretation of this Agreement.

 

Article
20

BENEFIT AND WAIVER

 

This Agreement is binding upon and shall
inure to the benefit of the parties hereto, their representatives, successors and permitted assigns. No failure or successive failures
on the part of the parties, to enforce any provisions of this Agreement, and no waiver or successive waivers on either party’s
part of any condition of this Agreement, shall operate as a discharge of such provision or condition, or render the same invalid,
or impair the right of such party to enforce same in the event of any subsequent breach or breaches by the other party.

 

Article
21

ENTIRE AGREEMENT

 

This Agreement supersedes the AC Agreement
as of the Effective Date. The parties hereto acknowledge that as of the Effective Date this Agreement sets forth the entire agreement
and understanding of the parties hereto as to the subject matter hereof, and supersedes any and all prior written and oral agreements,
understandings, promises or offers, including without limitation any term sheet which preceded its drafting, and shall not be subject
to any change or modification except by the execution of a written instrument subscribed to by the parties hereto and explicitly
referencing this Agreement and specifying that it is the parties’ intent to modify the terms and/or conditions set forth
herein. The parties acknowledge that invoices, purchase orders or other mechanisms for administering any payment or other obligation
set forth herein shall not contain terms and conditions separate from, in addition to, and/or in conflict with this Agreement,
and that any such terms, if present, shall be void and without effect, and shall not be enforceable by any party hereto. The initial
drafting of this Agreement by Foundation was for the convenience of both parties, and both parties agree that such fact shall not
result in any of the above clauses being construed against Foundation should such clauses become in dispute.

 

    	 	29	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have agreed and accepted the terms and conditions of, and have duly executed this Agreement to be made effective
as of the Effective Date.

 

	For The University of Virginia Patent Foundation:	 	ForADial Pharmaceuticals, LLC
	 	 	 
	By:	/s/ Miette H. Michie	 	By:	/s/ William B. Stilley, III
	 	Miette H. Michie 	 	 	William B. Stilley, III 
	 	Interim Executive Director and CEO 	 	 	Chief Executive Officer
	 	 	 	 	 
	Date: 	January 19, 2011	 	Date: 	January 21, 2011
	 	 	 	 	 
	By:	/s/ Erik L. Hewlett	 	 	 
	 	Erik L. Hewlett 	 	 	 
	 	Chairman	 	 	 
	 	 	 	 	 
	Date:	January 21, 2011	 	 	 

 

    	 	30	 

     

    

 

Appendix A

LICENSED PATENTS

 

		1.	PCT/US2007/088100, filed 12/19/07

“Combined
Effects of Topiramate and Ondansetron on Alcohol Consumption”

	Foundation Docket#: 01347	 TechID: JOHNSON-COMBO

 

		2.	PCT/US2008/052628, filed 1/31/08

“Topiramate
plus Naltrexone for the Treatment of Addictive Disorders”

	Foundation Docket#: 01354	TechID: JOHNSON-NALTREXON

 

		3.	PCT/US2008/064232, filed 5/20/08

“Medication
Combinations for the Treatment of Alcoholism and Drug Addiction”

	Foundation Docket#: 01454	TechID: JOHNSON-TRIPLE

 

		4.	PCT/US2008/073738, filed 8/20/2008

“Method,
Computer Program Product And System For Individual Assessment Of Alcohol Sensitivity”

	Foundation Docket#: 01442	TechID: JOHNSON-ASI

 

		5.	PCT/US2009/035420, file 2/27/2009

“Serotonin
Transporter Gene and Treatment of Alcoholism”

	Foundation Docket#: 01493	TechID: JOHNSON-GENE

 

		6.	PCT/US2010/001273, filed 4/30/2010

“Serotonin
Transporter Gene and Treatment of Alcoholism”

	Foundation Docket#: 01652	TechID: JOHNSON-GENE2

 

		7.	U.S. Provisional Patent Application 61/263,599, filed 11/23/2009, now abandoned

“Serotonin
Transporter Gene and Treatment of Alcoholism”

	Foundation Docket#: 01706	TechID: JOHNSON-TT

 

		8.	U.S. Provisional Patent Application 61/300,591, filed 2/2/2010 and U.S. Provisional Patent Application
61/429,416, filed 1/3/2011

“Molecular
Genetic Approach to Treatment and Diagnosis of Alcohol and Drug Dependence”

	Foundation Docket#: 01716	TechID: JOHNSON-COMBOGENE

 

		9.	U.S. Provisional Patent Application 61/323,931, filed 4/14/2010

“Dual Medications Synergize
to Decrease the Endophenotype of Severe Drinking in Rats”

	Foundation Docket#: 01745	TechID: JOHNSON-SYNERGY

 

		10.	U.S. Provisional Patent Application 61/361,203 filed 7/2/2010

“Serotonin Transporter
Gene and Treatment of Alcoholism”

	Foundation Docket#: 01771	TechID: JOHNSON-TTCOMP

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