SEC Contract Filing

Filing Date: 2021-02-22

Document Content:
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<TYPE>EX-10.1
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<FILENAME>d123775dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B><I>Execution Version </I></B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>SECURITIES PURCHASE AGREEMENT </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This SECURITIES PURCHASE AGREEMENT (this &#147;<U>Agreement</U>&#148;) is made and entered into as of February&nbsp;19, 2021 by and among
Ayala Pharmaceuticals, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), and the Investors identified on <U>Exhibit A</U> attached hereto (each an &#147;<U>Investor</U>&#148; and collectively, the &#147;<U>Investors</U>&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A. The Company
and each Investor is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section&nbsp;4(a)(2) of the 1933 Act (as defined below); and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. The Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and subject to
the conditions stated in this Agreement, (i)&nbsp;shares (the &#147;<U>Shares</U>&#148;) of the Company&#146;s Common Stock, par value $0.01 per share (the &#147;<U>Common Stock</U>&#148;), (ii) warrants in the form attached hereto as <U>Exhibit <FONT
STYLE="white-space:nowrap">B-1</FONT></U> to purchase Common Stock (each, a &#147;Common <U>Warrant</U>&#148; and collectively, the &#147;Common <U>Warrants</U>&#148;) and <FONT STYLE="white-space:nowrap">(iii)&nbsp;pre-funded</FONT> warrants in the
form attached hereto as <U>Exhibit <FONT STYLE="white-space:nowrap">B-2</FONT></U> to purchase Common Stock (each, a &#147;<U><FONT STYLE="white-space:nowrap">Pre-Funded</FONT> Common Warrant</U>&#148; and collectively, the &#147;<U><FONT
STYLE="white-space:nowrap">Pre-Funded</FONT> Common Warrants</U>&#148; and, together with the Common Warrants, the &#147;<U>Warrants</U>&#148;);. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Definitions</U>. For the purposes of this Agreement, the following terms
shall have the meanings set forth below: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Affiliate</U>&#148; means, with respect to any Person, any other Person which directly
or indirectly through one or more intermediaries Controls, is controlled by, or is under common Control with, such Person. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Business Day</U>&#148; means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general
transaction of business. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Closing</U>&#148; has the meaning set forth in Section&nbsp;3.1. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Closing Date</U>&#148; has the meaning set forth in Section&nbsp;3.1. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Closing Securities</U>&#148; means the Shares and the Warrants. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Common Warrants</U>&#148; has the meaning set forth in the recitals. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Common Warrant Shares</U>&#148; means the shares of Common Stock issuable upon exercise of the Common Warrants.&#147; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><U>Code</U>&#148; has the meaning set forth in Section&nbsp;5.18. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Company&#146;s Knowledge</U>&#148; means the actual knowledge of the executive
officers (as defined in Rule&nbsp;405 under the 1933 Act) of the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Control</U>&#148; (including the terms
&#147;controlling&#148;, &#147;controlled by&#148; or &#147;under common control with&#148;) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. </P> <P STYLE="margin-top:12pt; margin-