SEC Contract Filing

Filing Date: 2023-04-25

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>9
<FILENAME>ea177302ex10-4_allarity.htm
<DESCRIPTION>CANCELLATION OF DEBT AGREEMENT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.4</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CANCELLATION OF DEBT AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS CANCELLATION OF DEBT
AGREEMENT (the &ldquo;Agreement&rdquo;) is as of April 20, 2023, by and between Allarity Therapeutics, Inc., a Delaware corporation (the
&ldquo;Company&rdquo;), and 3i, LP, a Delaware limited partnership (&ldquo;Investor&rdquo;), to be effective as of the closing of the
Offering (as defined below). The Company and the Investor may also each be referred to herein, individually as a &ldquo;Party&rdquo; and
collectively as the &ldquo;Parties.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RECITALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Company and Investor
previously entered into a (1) Securities Purchase Agreement dated May 20, 2021 (as amended, the &ldquo;SPA&rdquo;), and (2) the Registration
Rights Agreement dated May 20, 2021 (the &ldquo;2021 RRA&rdquo;), in connection with the acquisition and issuance of 20,000 shares of
Series A Preferred Stock (&ldquo;Series A Preferred Stock&rdquo;), and the parties desire to amend the 2021 RRA to include additional
shares of Series A Preferred Stock which are contemplated to be acquired by Investor in the form attached as <U>Exhibit A</U> (&ldquo;Amendment
to RRA&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company and Investor
previously entered into Secured Note Purchase Agreement dated November 22, 2022, as amended on April 10, 2023, by and between the Parties
(the &ldquo;Note Purchase Agreement&rdquo;) pursuant to which the Company issued the following secured promissory notes to the Investor:
the first note in an aggregate principal amount of $350,000 dated November 28, 2022; the second note in an aggregate principal amount
of $1,666,640 dated November 28, 2022; the third note in an aggregate principal amount of $650,000 dated December 30, 2022; and the fourth
note in an aggregate principal amount of $350,000 dated April 11, 2023 (collectively, the &ldquo;Notes&rdquo;), and also entered into
the Security Agreement dated November 23, 2022, as amended (&ldquo;Security Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company owes
the Investor $264,534.68 for payment relating to the alternative conversion floor amount in connection with conversion of shares of Series
A Preferred Stock on December 9, 2022 (&ldquo;Alternative Conversion Amount&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company is conducting
a public offering of its common stock, pre-funded warrants, and common stock purchase warrants pursuant to an effective registration statement
filed by the Company on Form S-1 (the &ldquo;Offering&rdquo;), and it is contemplated to close on or about April 21, 2023 (the &ldquo;Closing&rdquo;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Parties desire
that all of the Company&rsquo;s outstanding indebtedness under the Notes and Alternative Conversion Amount be paid in full and any and
all obligations in connection therewith extinguished without any additional further action on the part of Investor (&ldquo;Indebtedness&rdquo;)
upon payment of $3,347,583.38 in cash from a portion of the proceeds from the Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Investor beneficially
owns 1,550 shares of Series A Preferred Stock (the &ldquo;Redemption Shares&rdquo;) which was acquired on December 20, 2021 in connection
with the SPA, and the Parties desire that the Redemption Shares be redeemed in full for a purchase price of $1,652,416.62 (the :Redemption
Purchase Price&rdquo;) to be paid in cash at the Closing from the portion of the proceeds from the Offering, which Redemption Shares being
automatically cancelled on the books and records of the Company upon payment of Redemption Purchase Price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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