Document:

Exhibit 4.3

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

As of December 31, 2021, Ayala Pharmaceuticals, Inc. had one
class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). References
herein to “we,” “us,” “our” and the “Company” refer to Ayala Pharmaceuticals, Inc. and
not to any of its subsidiaries.

 

General

 

The following description summarizes some of the terms of
our restated certificate of incorporation and restated bylaws, the amended and restated investors’ rights agreement and of the General
Corporation Law of the State of Delaware. Because it is only a summary, it does not contain all the information that may be important
to you. For a complete description, you should refer to our restated certificate of incorporation, restated bylaws and the amended and
restated investors’ rights agreement, copies of which have been filed with the Securities and Exchange Commission, as well as the
relevant provisions of the General Corporation Law of the State of Delaware.

 

Our authorized capital stock consists of 200,000,000 shares
of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share.

 

Common Stock

 

Holders of our common stock are entitled to one vote for each
share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our
stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. Subject to the
supermajority votes for some matters, other matters shall be decided by the affirmative vote of our stockholders having a majority in
voting power of the votes cast by the stockholders present or represented and voting on such matter. Our restated certificate of incorporation
and restated bylaws also provide that our directors may be removed only for cause and only by the affirmative vote of the holders of at
least two-thirds in voting power of the outstanding shares of capital stock entitled to vote thereon. In addition, the affirmative vote
of the holders of at least two-thirds in voting power of the outstanding shares of capital stock entitled to vote thereon is required
to amend or repeal, or to adopt any provision inconsistent with, several of the provisions of our restated certificate of incorporation.
See below under “—Anti-Takeover Effects of Delaware Law and Our Certificate of Incorporation and Bylaws—Amendment of
Charter Provisions.” Holders of common stock are entitled to receive proportionately any dividends as may be declared by our board
of directors, subject to any preferential dividend rights of any series of preferred stock that we may designate and issue in the future.

 

In the event of our liquidation or dissolution, the holders
of common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the payment of
all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive,
subscription, redemption or conversion rights. Our outstanding shares of common stock are validly issued, fully paid and nonassessable.
The rights, preferences and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders
of shares of any series of preferred stock that we may designate and issue in the future.

 

Preferred Stock

 

Under the terms of our restated certificate of incorporation,
our board of directors is authorized to direct us to issue shares of preferred stock in one or more series without stockholder approval.
Our board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights,
dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock.

 

The purpose of authorizing our board of directors to issue
preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances.
The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings and other corporate
purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking
to acquire, a majority of our outstanding voting stock. There are no shares of preferred stock outstanding, and we have no present plans
to issue any shares of preferred stock.

 

     

     

    

 

Registration Rights

 

Certain of our stockholders are entitled to certain rights with respect
to the registration of such shares for public resale under the Securities Act, pursuant to an amended and restated investors’ rights
agreement by and among us and certain of our stockholders, until the rights otherwise terminate pursuant to the terms of the investors’
rights agreement. Additionally, holders of warrants to purchase our common stock are entitled to certain rights with respect to the registration
for public resale under the Securities Act of shares of our common stock issued or issuable upon exercise of such warrants, pursuant to
a securities purchase agreement by and among certain purchasers named therein. The registration of shares of common stock as a result
of the following rights being exercised would enable holders to trade these shares without restriction under the Securities Act when the
applicable registration statement is declared effective.

 

Piggyback Registration Rights

 

If we propose to register any shares of our common stock under the
Securities Act, subject to certain exceptions, the holders of registrable securities will be entitled to notice of the registration and
to include their shares of registrable securities in the registration. If our proposed registration involves an underwriting, the managing
underwriter of such offering will have the right to limit the number of shares to be underwritten for reasons related to the marketing
of the shares.

 

Form S-3 Registration Rights

 

If, at any time after we become entitled under the Securities
Act to register our shares on a registration statement on Form S-3, the holders of at least 20% of the registrable securities then outstanding
request in writing that we effect a registration with respect to all or part of such registrable securities then outstanding and having
an anticipated aggregate offering amount, net of expenses, of at least $3,000,000, we will be required to effect such registration.

 

Private Placement Form S-3 Registration Rights

 

We have also agreed to use reasonable best efforts to register
certain shares of our common stock issued, or issuable upon exercise of certain warrants, for public resale pursuant to the Securities
Act on a registration statement on Form S-3 promptly following the date such form is available for use by us, but in no event later than
June 15, 2021. On June 6, 2021, we registered such shares on a registration statement on Form S-3 (File No. 333-256793).

 

Expenses and Indemnification

 

Ordinarily, other than underwriting discounts and commissions,
we will be required to pay all expenses incurred by us related to any registration effected pursuant to the exercise of these registration
rights. These expenses may include all registration and filing fees, printing expenses, fees and disbursements of our counsel, reasonable
fees and disbursements of a counsel for the selling securityholders and blue sky fees and expenses. Additionally, we have agreed to indemnify
selling stockholders for damages, and any legal or other expenses reasonably incurred, arising from or based upon any untrue statement
of a material fact contained in any registration statement, an omission or alleged omission to state a material fact in any registration
statement or necessary to make the statements therein not misleading, or any violation or alleged violation by the indemnifying party
of securities laws, subject to certain exceptions.

 

Termination of Registration Rights

 

The registration rights terminate upon
the earlier of the date that is five years after the closing of our initial public offering, such time as Rule 144 or another similar
exemption under the Securities Act is available for the sale of all of such holders’ shares without limitation during a three-month
period without registration and the closing of a deemed liquidation event, as defined in the investors’ rights agreement.

 

    2

     

    

 

Anti-Takeover Effects of Delaware Law and
Our Certificate of Incorporation and Bylaws

 

Some provisions of Delaware law, our restated certificate of
incorporation and our restated bylaws could make the following transactions more difficult: an acquisition of us by means of a tender
offer; an acquisition of us by means of a proxy contest or otherwise; or the removal of our incumbent officers and directors. It is possible
that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider
to be in their best interest or in our best interests, including transactions which provide for payment of a premium over the market price
for our shares.

 

These provisions, summarized below, are intended to discourage
coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control
of us to first negotiate with our board of directors. We believe that the benefits of the increased protection of our potential ability
to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging
these proposals because negotiation of these proposals could result in an improvement of their terms.

 

Undesignated Preferred Stock

 

The ability of our board of directors, without action by the
stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with voting or other rights or preferences as designated
by our board of directors could impede the success of any attempt to change control of us. These and other provisions may have the effect
of deferring hostile takeovers or delaying changes in control or management of our company.

 

Stockholder Meetings

 

Our restated certificate of incorporation and restated bylaws provide
that a special meeting of stockholders may be called only by our chairman of the board, chief executive officer or president (in the absence
of a chief executive officer), or by a resolution adopted by a majority of our board of directors.

 

Requirements for Advance Notification of Stockholder Nominations
and Proposals

 

Our restated bylaws establish advance notice procedures
with respect to stockholder proposals to be brought before a stockholder meeting and the nomination of candidates for election as directors,
other than nominations made by or at the direction of the board of directors or a committee of the board of directors.

 

Elimination of Stockholder Action by Written Consent

 

Our restated certificate of incorporation eliminates the right of stockholders
to act by written consent without a meeting.

 

Staggered Board

 

Our board of directors is divided into three classes. The directors
in each class serve for a three-year term, one class being elected each year by our stockholders. This system of electing and removing
directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it
generally makes it more difficult for stockholders to replace a majority of the directors.

 

Removal of Directors

 

Our restated certificate of incorporation provides that no
member of our board of directors may be removed from office by our stockholders except for cause and, in addition to any other vote required
by law, upon the approval of the holders of at least two-thirds in voting power of the outstanding shares of stock entitled to vote in
the election of directors.

 

Stockholders Not Entitled to Cumulative Voting

 

Our restated certificate of incorporation does not permit stockholders
to cumulate their votes in the election of directors. Accordingly, the holders of a majority of the outstanding shares of our common stock
entitled to vote in any election of directors can elect all of the directors standing for election, if they choose, other than any directors
that holders of our preferred stock may be entitled to elect.

 

    3

     

    

 

Delaware
Anti-Takeover Statute

 

We are subject to Section 203 of the General Corporation Law of the
State of Delaware, which prohibits persons deemed to be “interested stockholders” from engaging in a “business combination”
with a publicly held Delaware corporation for three years following the date these persons become interested stockholders unless the business
combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another
prescribed exception applies. Generally, an “interested stockholder” is a person who, together with affiliates and associates,
owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s
voting stock. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in
a financial benefit to the interested stockholder. The existence of this provision may have an anti-takeover effect with respect to transactions
not approved in advance by the board of directors.

 

Choice of Forum

 

Our restated certificate of incorporation provides that, unless we
consent in writing to the selection of an alternative form, the Court of Chancery of the State of Delaware will be the sole and exclusive
forum for: (1) any derivative action or proceeding brought on our behalf; (2) any action asserting a claim of breach of a fiduciary duty
or other wrongdoing by any of our directors, officers, employees or agents to us or our stockholders; (3) any action asserting a claim
against us arising pursuant to any provision of the General Corporation Law of the State of Delaware or our certificate of incorporation
or bylaws; (4) any action to interpret, apply, enforce or determine the validity of our certificate of incorporation or bylaws; or (5)
any action asserting a claim governed by the internal affairs doctrine. Under our restated certificate of incorporation, this exclusive
forum provision will not apply to claims which are vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery
of the State of Delaware, or for which the Court of Chancery of the State of Delaware does not have subject matter jurisdiction. For instance,
the provision would not apply to actions arising under federal securities laws, including suits brought to enforce any liability or duty
created by the Securities Act, Exchange Act, or the rules and regulations thereunder. Our restated certificate of incorporation further
provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States
of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting
a cause of action arising under the Securities Act. Our restated certificate of incorporation also provides that any person or entity
purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and to have consented to
these choice of forum provisions. It is possible that a court of law could rule that either or both of the choice of forum provisions
contained in our restated certificate of incorporation is inapplicable or unenforceable if it is challenged in a proceeding or otherwise.

 

Amendment of Charter Provisions

 

The amendment of any of the above provisions, except for the
provision making it possible for our board of directors to issue preferred stock and the provision prohibiting cumulative voting, would
require approval by holders of at least two-thirds in voting power of the outstanding shares of stock entitled to vote thereon.

 

The provisions of Delaware law, our restated certificate
of incorporation and our restated bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence,
they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile
takeover attempts. These provisions may also have the effect of preventing changes in the composition of our board and management. It
is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in
their best interests.

 

Stock Exchange Listing

 

Our common stock is listed on The Nasdaq Global Market under the symbol
“AYLA.”

 

 

4Exhibit 10.47

 

 

CONFIRMATION OF MUTUAL UNDERSTANDING

 

This Confirmation of Mutual Understanding
is made on this 24th day of March, 2022 by and between Aikido Pharma Inc. (the “Company”) and the undersigned holders
(each a “Warrant Holder”). Reference is made to those certain Common Stock Purchase Warrants (the “Warrants”)
of the Company issued to each Warrant Holder (as designated assignees of H.C. Wainwright & Co., LLC) on March 10, 2020, April 15,
2020 and March 2, 2021. It recently came to the attention of the Company and the Warrant Holder that the Warrants contained a mutual mistake
of fact in Section 3(d) of the Warrants relating to the definition of “Fundamental Transaction”. Clause (v) of the
definition thereof references the existence of a Fundamental Transaction in the event that more than 50% of the “Common Stock”
of the Company is acquired by a third party.  At the time of the issuance of the Warrants, the parties unintentionally omitted that
the Company’s Series D Convertible Preferred Stock votes with the Common Stock on an as-converted basis. Both parties acknowledge
and agree that the mutual intent of clause (v) of the definition of Fundamental Transaction in Section 3(d) of the Warrant is to include
in such determination all voting power of the Company’s equity securities and not just the Common Stock. As such and in order to
properly reflect the intent of the parties at the applicable times of issuance, the parties hereby acknowledge and confirm their mutual
understanding that clause (v) of the definition of Fundamental Transaction in Section 3(d) of the Warrants is rectified, as if written
on the date of applicable issuance date of each of the Warrants, as follows:

 

“the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the voting power of the Company’s outstanding equity securities, including with respect
to the election of directors (not including any shares of Common Stock held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination)”

 

IN WITNESS WHEREOF, this Confirmation of Mutual Understanding
is executed as of the date first set forth above.

 

 

	AIKIDO PHARMA INC.	 	WARRANT HOLDERS	 
	 	 	 	 	 
	 	 	 	 	 
	By:		 	 	 
	Anthony Hayes, President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]