Document:

Exhibit 4.18

 

CONVERTIBLE PROMISSORY NOTE

 

THIS NOTE AND THE SECURITIES ISSUABLE
UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
or the securities laws of any other state or jurisdiction. They may not be purchased with a view for distribution or resale, and
may only be offered, sold, mortgaged, pledged, hypothecated, or otherwise transferred in compliance with either an effective registration
statement for such security under the act or any applicable state securities act, or an opinion of counsel for the company that
registration is not required under such act or the laws of any other jurisdiction. 

 

CANCER
PREVENTION PHARMACEUTICALS, INC.

 

	Principal Amount: $5,000,000	Issuance Date: January 9, 2016

 

FOR VALUE RECEIVED,
Cancer Prevention Pharmaceuticals, Inc., a Delaware corporation (the “Company”), promises to pay to Sucampo
AG, a Swiss corporation, or its registered assigns (“Lender”), the principal sum of Five Million Dollars ($5,000,000),
or such lesser amount as shall equal the outstanding principal amount hereof (the “Principal”), and to pay simple
interest on any outstanding Principal from the date set forth above as the Issuance Date (the “Issuance Date”)
of this Convertible Promissory Note (the “Note”) until the same becomes due and payable whether on the Maturity
Date or upon acceleration, prepayment or otherwise at a rate equal to 5.0% per annum, computed on the basis of the actual number
of days elapsed and a year of 365 days. All unpaid Principal, together with any then unpaid and accrued interest and other amounts
payable hereunder, shall be due and payable on the earlier of (i) January 31, 2019 or January 31, 2020, if the proviso set forth
under Section 2 is applicable (the “Maturity Date”), (ii) when, upon the occurrence and during the continuance
of an Event of Default, such amounts are declared due and payable by Lender or made automatically due and payable, in each case,
in accordance with the terms hereof, or (iii) upon a Sale in the event that the Lender has not elected to convert this Note in
accordance with Section 2(b) below.

 

This Note is issued
pursuant to that certain Securities Purchase Agreement dated of even date hereof (the “Purchase Agreement”)
by and between the Company and the Lender. Any capitalized term not otherwise defined herein shall have the meaning assigned to
it in the Purchase Agreement.

 

The following is a
statement of the rights of Lender and the conditions to which this Note is subject, and to which Lender, by the acceptance of this
Note, agrees:

 

1.          Form
and Application of Payments; Equal Rank. 

 

(a)          Unless
earlier converted into Common Stock as provided in this Note, all payments of Principal and interest under the Note shall be in
lawful money of the United States of America. All payments hereunder shall be applied first to any unpaid and accrued interest
on and second to the repayment of the unpaid Principal balance of the Note.

 

     

     

    

  

(b)          This
Note shall rank equally and ratably without priority over any other note issued by the Company.

 

(c)          This
Note may be prepaid without the written consent of the Lender as described in Section 8.

 

2.          Conversion.

 

(a)          Automatic
Conversion – Qualified Financing. If, prior to the Maturity Date, the Company consummates a Qualified Financing (as such
term is defined below), all Principal of and accrued and unpaid interest on this Note shall automatically convert without further
action by the Lender into fully paid and nonassessable shares of Qualified Financing securities at a conversion price per share
(the “Conversion Price”) equal to a ten percent (10%) discount to the lowest per share purchase price for the
Qualified Financing securities paid by the investors in the Qualified Financing if the Qualified Financing is consummated prior
to completion of the Futility Analysis (as described in the Option and Collaboration Agreement) or a twenty percent (20%) discount
to the lowest per share purchase price for the Qualified Financing securities paid by the investors in the Qualified Financing
if the Qualified Financing is consummated after completion of the Futility Analysis (as described in the Option and Collaboration
Agreement). A “Qualified Financing” means the first to occur of (i) a firm commitment underwritten public offering
of Common Stock pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common
Stock for the account of the Company (“IPO”), or (ii) a private placement in one financing transaction or a
series of related financing transactions of debt, equity, preferred or convertible securities, in each case with aggregate gross
proceeds (before underwriters’ and/or financial advisory fees and commissions and offering expenses) to the Company (excluding
any investment by the Lender in such offering) of at least Ten Million Dollars ($10,000,000). Notwithstanding the foregoing, in
no event shall Lender be required to acquire shares of the Company’s capital stock such that Lender’s ownership interest
in the Company would exceed 19.9% of the Company’s outstanding capital stock. Accordingly, the maximum amount of Principal
and interest that Purchaser can be obligated to convert pursuant to this Section 2(a) is such amount as would result in Purchaser’s
ownership being 19.9% of the Company’s outstanding capital stock (or, to the extent permissible under U.S. GAAP for determining
whether the Company is an associate company or subsidiary of the Purchaser, the Company’s issued capital stock on a fully
diluted basis after taking into account the conversion of all convertible securities) (the “Threshold”). Any remaining
Principal and interest will remain outstanding under this Note until repaid in accordance with the terms hereof or converted in
accordance with the terms of the next proviso; provided, however that if at any time after the Qualified Financing the Lender shall
be able to convert any additional remaining Principal or interest outstanding under this Note without its ownership exceeding the
Threshold then it shall be obligated to convert such Principal and interest at such time; and, provided, further that with respect
to any Principal or interest which exceeds the Threshold and shall remain outstanding under this Note: (i) the interest rate of
this Note will be reduced to three percent (3.0%) and the default interest rate set forth in Section 5 shall be reduced to eight
percent (8.0%); (ii) the Maturity Date shall be extended to January 31, 2010; (iii) the Events of Default under Section 4 shall
be amended such that Sections 4(b)(e)(f) and (g) shall no longer be Events of Default and the only Events of Default shall be those
under Sections 4(a)(c) and (d); and (iv) Section 9 shall be deleted in its entirety.

 

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(b)          Optional
Conversion Upon Sale of the Company. In the event of the sale of all
or substantially all of the assets of the Company or consolidation or merger of the Company other than a reincorporation merger
(the “Sale”) that occurs prior to the Maturity Date or a Qualified Financing, then the Principal and accrued
interest of this Note outstanding at such time will convert immediately prior to the Sale, at the written election of the Lender
(the “Lender Sale Notice”) given within ten (10) days of the Lender’s receipt from the Company of notice
of the Sale (the “Company’s Sale Notice”) into fully paid and non-assessable shares of (i) Common Stock
at a conversion rate equal to the lowest per share price of the Company’s most recent Common Stock financing or (ii) if the
most recent financing was a preferred stock financing, preferred stock at a conversion rate equal to the lowest per share price
of the Company’s most recent preferred stock financing (the “Optional Sale Conversion Price”). 

 

(c)          Optional
Conversion if no Qualified Financing or Sale. If a Qualified Financing or a Sale has not been consummated prior to the Maturity
Date, at the written election of the Lender given not less than ten (10) business days prior to the Maturity Date (“Notice
of Election to Convert”), the Principal together with all accrued and unpaid interest on the Notes outstanding shall
convert into shares of Common Stock on the date set forth in the Notice of Election to Convert at a conversion rate equal to per
share price of the Common Stock as set forth in its most recent 409A valuation conducted by a third party appraiser (the “409A
Optional Conversion Price”).

 

(d)          Conversion
Procedure.

 

(i)          Conversion
Pursuant to Automatic Conversion. If this Note is to be automatically converted, written notice shall be delivered to Lender
at the address last shown on the records of the Company for Lender or given by Lender to the Company for the purpose of notice
(“Notice Address”), notifying Lender of the conversion to be effected, specifying the Conversion Price, the
Principal to be converted, together with all accrued and unpaid interest, the date on which such conversion is expected to occur
and calling upon Lender to surrender to the Company, in the manner and at the place designated, the Note; provided, however,
that upon the consummation of a Qualified Financing, this Note shall be deemed converted and of no further force and effect, whether
or not it is delivered for cancellation. The Company shall, as soon as practicable thereafter, at its costs issue and deliver to
such Lender a certificate or certificates for the number of shares to which Lender shall be entitled upon such conversion, including
a check payable to Lender for any cash amounts payable as described in Section 2(e). Any conversion of this Note pursuant
to Section 2(a) shall be deemed to have been made immediately prior to the closing of the Qualified Financing and on and
after such date the persons entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all
purposes as the record holder of such shares of Common Stock. Any conversion of this Note pursuant to Section 2(b) shall
be deemed to have been made immediately prior to the closing of the Sale and on and after such date the persons entitled to receive
the shares of capital stock issuable upon such conversion shall be treated for all purposes as the record holder of such shares
of capital stock. Any conversion of this Note pursuant to Section 2(c) shall be deemed to have been made on the date set
forth in the Notice of Election to Convert and on and after such date the persons entitled to receive the shares of Common Stock
issuable upon such conversion shall be treated for all purposes as the record holder of such shares of Common Stock.

 

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(ii)         Conversion
Pursuant to Optional Conversion. Upon receipt of an executed Lender Sale Notice or an executed Notice of Election to Convert
together with this original Note, the Company shall, as soon as practicable after the Sale or the conversion date set forth in
the Notice of Election to Convert, issue and deliver to Lender a certificate or certificates for the number of shares to which
such Lender shall be entitled upon such conversion, including a check payable to Lender for any cash amounts payable as described
in Section 2(d). The Company shall send the Lender a notice via facsimile or electronic mail confirming receipt of the Lender
Sale Notice or Notice of Election to Convert within two (2) days of receipt thereof. If for any reason the Sale does not occur
on the date set forth in the Company’s Sale Notice, the Company will return to the Lender this Note and the Lender Sale Notice
shall be deemed rescinded.

 

Any certificates representing
shares of Common Stock issued pursuant to this Section 2(d) shall bear the following legend:

 

THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF
CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM.
THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. This
certificate must be surrendered to the coMPANY or its transfer agent as a condition precedent to the sale, TRANSFER, pledge OR
hypothecation of any interest in any of the securities represented hereby.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING,
AS SET FORTH IN THE NOTE PURSUANT TO WHICH THESE SHARES WERE ISSUED, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF
THE COMPANY.         

 

  (e)          Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. Upon the conversion of the outstanding principal and unpaid accrued interest under this Note into Common Stock, in lieu of the Company issuing any fractional shares to the Lender, the Company shall pay to the Lender the amount of outstanding principal and accrued interest that is not so converted.

 

(f)          Release.
Upon full conversion of this Note and the payment of the amounts specified in this Section 2, the Company shall be forever
released from all its obligations and liabilities under this Note.

 

3.          Principal
and Interest Repayment. Unless this Note has been converted in accordance with the terms of Section 2 above or has been
satisfied in accordance with the terms of this Note, the entire outstanding Principal and all unpaid accrued interest shall become
fully due and payable on the Maturity Date, upon the occurrence of an Event of Default or upon a Sale. If the payments to be made
by the Company shall be stated to be due on a date which is not a business day, such payment may be made on the next succeeding
business day, and the interest payment on each such date shall include the amount thereof which shall accrue during the period
of such extension of time.

 

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4.          Events
of Default. Subject to the proviso set forth in Section 2 of this Note, each of the following shall constitute an Event of
Default hereunder:

 

(a)          The
Company’s failure to pay to the Lender any amount of Principal, or interest when and as due under this Note after taking
into account a thirty (30) day grace period;

 

(b)          The
Company shall fail to observe or perform any material covenant, obligation, condition or agreement contained in this Note or the
Securities Purchase Agreement and such failure shall continue for thirty (30) days after the Company’s receipt of written
notice to the Company of such failure;

 

(c)          The
Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of
all or a substantial part of its property, (ii) admit in writing its inability to pay its debts generally as they mature,
(iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) commence
a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment
of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vi) take
any action for the purpose of effecting any of the foregoing;

 

(d)          An
involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 120 days) under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar
official) is appointed to take possession, custody or control of any property of the Company;

 

(e)          Defaults
shall exist under any material agreements of the Company with any third party or parties which consists of the failure to pay any
indebtedness for borrowed money in excess of Two Hundred and Fifty Thousand Dollars ($250,000) at maturity or which results in
a right by such third party or parties, whether or not exercised, to accelerate the maturity of such indebtedness for borrowed
money in excess of Two Hundred and Fifty Thousand Dollars ($250,000) of the Company; unless the Company is actively controlling
such default;

 

(f)          A
final judgment or order for the payment of money in excess of Two Hundred and Fifty Thousand Dollars ($250,000) (exclusive of amounts
covered by insurance) shall be rendered against the Company and the same shall remain undischarged for a period of 120 days during
which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar
process shall be issued or levied against a substantial part of the property of the Company and such judgment, writ, or similar
process shall not be released, stayed, vacated or otherwise dismissed within 90 days after issue or levy; or

 

(g)          Any
representation or warranty made by or on behalf of the Company in the Purchase Agreement, this Note or otherwise furnished in connection
with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which
made.

 

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5.          Remedies
Upon Event of Default. Upon the occurrence of any Event of Default (other than an Event of Default described in Sections 4(c)
or 4(d)) and at any time thereafter during the continuance of such Event of Default, Lender may, by written notice to the
Company, declare all outstanding amounts and obligations payable by the Company under this Note to be immediately due and payable
without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained
herein or in any other documents to the contrary notwithstanding. Upon the occurrence of any Event of Default described in Sections 4(b)
and 4(c), immediately and without notice, all outstanding amounts and obligations payable by the Company hereunder shall
automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein or in any other documents to the contrary notwithstanding. In addition
to the foregoing remedies, upon the occurrence and during the continuance of any Event of Default, Lender may exercise any other
right, power or remedy granted to it by the Purchase Agreement, this Note or any other documents, agreements or instruments delivered
to Lender in connection with the execution of the Purchase Agreement or otherwise permitted to it by law, either by suit in equity
or by action at law, or both. If the indebtedness represented by this Note or any part thereof is collected in bankruptcy, receivership
or other judicial proceedings or if this Note is placed in the hands of a third party for collection after default or if Lender
seeks to enforce its rights under this Note, then the Company shall pay, in addition to the Principal and interest payable hereunder,
the reasonable attorneys’ fees and reasonable attorneys’ costs incurred by Lender in connection therewith. In addition
to all other rights and remedies available to Lender under this Note, applicable law or otherwise, after an Event of Default the
rate of interest under this Note shall increase, subject to the proviso set forth in Section 2 of this Note, to ten percent (10.0%)
per annum from and after an Event of Default occurs until the date that this Note is paid in full or such Event of Default
is cured.

 

6.          Restrictions
on Sale. The Lender hereby agrees not to sell or otherwise transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic effect as a sale, of any Common Stock (or other securities)
of the Company held by the Lender during the 180-day period following the effective date of the registration statement for the
Company’s IPO (or such other period as may be requested by the Company or an underwriter solely to accommodate regulatory
restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions,
including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor
provisions or amendments thereto)(the “Lock-up Period”), provided, that all officers and directors of
the Company and holders of at least 5% of the Company’s voting securities are bound by and have entered into similar agreements.
Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters
shall apply pro rata to all holders subject to such agreements, pro rata based on the number of shares subject to such agreements.
The obligations described in this Section 6 shall not apply to a registration relating solely to employee benefit plans
on Form S-l or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction
on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions and may stamp
each certificate with a legend as substantially set forth in Section 2(c) with respect to the shares of Common Stock
(or other securities) subject to the foregoing restriction until the end of such 180-day (or other) period. The Lender agrees to
execute a market stand-off agreement with the underwriters in the offering in customary form consistent with the provisions of
this Section 6.

 

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7.          Adjustments.
The number of shares of Common Stock to be issued upon each conversion of this Note shall be subject to adjustments as follows:

 

(a)          If
the Company at any time subdivides (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise)
the shares of capital stock acquirable hereunder into a greater number of shares, then, after the date of record for effecting
such subdivision, the Optional Sale Conversion price and the 409A Optional Conversion Price Conversion Price in effect immediately
prior to such subdivision will be proportionately reduced. If the Company at any time combines (by any reverse stock split, recapitalization,
reorganization, reclassification or otherwise) the shares of capital stock acquirable hereunder into a smaller number of shares,
then, after the date of record for effecting such combination, the Optional Sale Conversion price and the 409A Optional Conversion
Price Conversion Price in effect immediately prior to such combination will be proportionately increased.

 

(b)          If
at any time or from time to time after the date upon which this Note was issued by the Company, the shares of capital stock issuable
upon the conversion of this Note shall be changed into the same or a different number of shares of any class or classes of stock,
whether by recapitalization, reclassification, reorganization, merger, exchange, consolidation, sale of assets or otherwise, then,
in any such event, the Lender, unless this Note has been previously converted, shall have the right thereafter to convert such
stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification,
reorganization, merger, exchange, consolidation, sale of assets, or otherwise by a holder of the number of shares of capital stock
into which such shares of this Note could have been converted immediately prior to such recapitalization, reclassification, reorganization,
merger, exchange, consolidation, sale of assets, distribution of assets or other change, or with respect to such other securities
or property by the terms thereof.

 

(c)          Upon
the occurrence of each adjustment or readjustment of the Optional Sale Conversion price and the 409A Optional Conversion Price
Conversion Price as a result of the events described in this Section 7, the Company, at its expense, shall compute such
adjustment or readjustment and prepare and furnish to the Lender a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based. Failure to give such notice or any defect therein
shall not affect the legality or validity of the subject adjustment.

 

8.          Prepayment.
At any time after the date hereof, the Company shall have the right to prepay all or part of the Principal and interest outstanding.
The portion of this Note subject to prepayment (the “Optional Prepayment Amount”)pursuant to this Section
8 shall be redeemed by the Company in cash at a price (the “Company Optional Prepayment Price”) equal to
the Principal Amount and interest being redeemed as of the Company Optional Prepayment Date. The Company may exercise its right
to prepay this Note under this Section 8 by delivering a written notice thereof by facsimile or electronic mail or overnight
courier to the Lender (the “Company Optional Prepayment Notice” and the date on which such notice is sent or
delivered by the Company is referred to as the “Company Optional Prepayment Notice Date”). The Company Optional
Prepayment Notice shall (a) state the date on which the Company Optional Prepayment shall occur (the “Company Optional
Prepayment Date”), which date shall not be less than five (5) days nor more than twenty (20) days following the Company
Optional Prepayment Notice Date, and (b) state the Optional Prepayment Amount and the Company Optional Prepayment Price. All amounts
converted by the Lender after the Company Optional Prepayment Notice Date shall reduce the Company Optional Prepayment Amount of
this Note to be redeemed on the Company Optional Prepayment Date. Prepayments made pursuant to this Section 8 shall be made
in cash on the Company Optional Prepayment Date. Any partial prepayment under this Note shall be in
an amount of at least $1,000,000 and increments of $1,000,000.

 

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9.          Covenants.
Until this Note has been converted, or paid in full (subject to the proviso set forth in Section 2 of this Note), the following
covenants shall apply:

 

(a)          All
payments under this Note shall rank pari passu with all other notes of the Company.

 

(b)          The
Company shall not, directly or indirectly, declare or pay any cash dividend or distribution on any of its capital stock.

 

(c)          The
Company shall maintain its corporate existence and good standing in the state of its incorporation, shall maintain qualification
and good standing in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a material
adverse effect on its business.

 

(d)          The
Company shall deliver to Lender:   (i) as soon as available, but in any event within 180 days after the end of the Company’s
fiscal year, audited consolidated and consolidating financial statements of the Company prepared in accordance with GAAP, consistently
applied; (ii) if applicable, copies of all statements, reports and notices sent or made available generally by the Company to its
security holders; and (iii) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against
the Company that could reasonably be expected to result in damages or costs to the Company of Two Hundred Fifty Thousand Dollars
($250,000) or more. Notwithstanding the foregoing, the Company will be deemed to have furnished the information referred to above
in clause (i) to the Lender if the Company has filed Forms 10-K with the Securities and Exchange Commission via the EDGAR filing
system and such reports are publicly available.

 

(e)          The
Company shall make due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions
required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability,
and will execute and deliver to Lender on demand, proof indicating that the Company has made such payments or deposits and any
appropriate certificates attesting to the payment or deposit thereof; provided that the Company needs not make any payment
if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the
extent required by GAAP) by the Company. 

 

(h)          The
Company, at its expense, shall maintain liability and other insurance, in each case as ordinarily insured against by other owners
in businesses similar to the Company’s. Upon Lender’s request, the Company shall deliver to the Lender certified copies
of the policies of insurance and evidence of all premium payments.  

 

10.         Expenses.
In the event of any default hereunder, the Company shall pay all reasonable attorneys’ fees, expenses and court costs incurred
by Lender in enforcing and collecting this Note.

 

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11.         Notices.
All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing
and faxed, mailed or delivered to each party at the respective addresses of the parties as set forth in the Purchase Agreement,
or at such other address or facsimile number as the Company shall have furnished to Lender in writing. All such notices and communications
will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business
day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day after being
deposited with an overnight courier service of recognized standing or (v) four days after being deposited in the U.S. mail,
first class with postage prepaid.

 

12.         Waiver.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

13.         Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Note (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in New York, New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York,
New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce
any provisions of this Note, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

14.         Successors
and Assigns; Transfer of this Note or Securities Issuable on Conversion Hereof.

 

(a)          Subject
to the restrictions on transfer described herein, the rights and obligations of the Company and Lender shall be binding upon and
benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(b)          Neither
this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole
or in part, by the Company or the Lender without the prior written consent of the other party.

 

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15.         Waiver
and Amendment. The provisions of this Note may only be amended, waived or modified upon the written consent of the Company
and Lender.

 

[Signature page follows]

 

    	 	10	 

     

    

  

IN WITNESS WHEREOF,
the Company has caused this Note to be issued as of the date first written above.

 

	 	CANCER PREVENTION PHARMACEUTICALS, INC.
	 	 
	 	By: 	/s/ Jeffrey Jacob
	 	Name:  Jeffrey Jacob
	 	Title:  Chief Executive Officer

 

    	 	11Exhibit 4.19

  

Form of Representative’s Warrant
Agreement

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE
OTHER THAN (I) AEGIS CAPITAL CORP. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE
OFFICER OR PARTNER OF AEGIS CAPITAL CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER 5:00
P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Shares of Common
Stock

of

CANCER PREVENTION PHARMACEUTICALS, INC.

  

1.          Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. or its assigns (“Holder”),
as registered owner of this Purchase Warrant, to Cancer Prevention Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
Holder is entitled, at any time or from time to time from [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF
THE OFFERING] (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, [____________] [DATE THAT IS FIVE
YEARS FROM THE EFFECTIVE DATE OF THE OFFERING] (the ”Expiration Date”), but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to [____] shares (the “Shares”) of common stock of the Company,
par value $0.001 per share (the “Common Stock”), subject to adjustment as provided in Section 6 hereof. If the Expiration
Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the
next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date,
the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable
at $[___] per Share [137.5% of the price of the Shares sold in the Offering]; provided, however, that upon the occurrence
of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise price per
Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise
Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context.

 

    	1 

     

    

  

2.          Exercise.

 

2.1        Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2        Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by payment
of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares
equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to
the Company, together with the exercise form attached hereto, in which event the issue to Holder, Shares in accordance with the
following formula:

 

	X	=	Y(A-B)	 
	     A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one share of Common Stock; and
	 	B	=	The Exercise Price.

  

For purposes of this
Section 2.2, the fair market value of a share of Common Stock is defined as follows:

 

		(i)	if the Common Stock is traded on a securities exchange,
the value shall be deemed to be the closing price on such exchange prior to the exercise form being submitted in connection with
the exercise of the Purchase Warrant; or

 

		(ii)	if the Common Stock is actively traded over-the-counter,
the value shall be deemed to be the closing bid prior to the exercise form being submitted in connection with the exercise of
the Purchase Warrant; if there is no active public market, the value shall be the fair market value thereof, as determined in
good faith by the Company’s Board of Directors.

 

2.3         Legend.
Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities
have been registered under the Securities Act of 1933, as amended (the “Securities Act”):

 

“The securities
represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration
under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

    	2 

     

    

  

2.4        Cash
Payment. For the avoidance of doubt, the Company shall not be required to make any cash payments or net cash settlement to
any registered holder in lieu of issuance of Shares.

 

3.          Transfer.

 

3.1        General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the date of effectiveness of the Offering (the “Effective Date”) to anyone other than: (i) Aegis Capital
Corp. (“Aegis”) or an underwriter or a selected dealer participating in the Offering, or (ii) a bona fide officer or
partner of Aegis or of any such underwriter or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1),
or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative,
put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder,
except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers to others may be made
subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder
must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant
and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) Business Days transfer
this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of
like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable
hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2         Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until:
(i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption
from registration under the Securities Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Zysman, Aharoni, Gayer and Sullivan &
Worcester LLP shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a
post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the
Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance
with applicable state securities law has been established.

 

4.          Registration Rights.

 

4.1        Demand
Registration.

 

4.1.1        Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Purchase
Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any portion
of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such occasion, the
Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60) days after
receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter,
subject to compliance with review by the Commission; provided, however, that the Company shall not be required to
comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback
registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered
by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities
of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such
offering is consummated. The demand for registration may be made at any time during a period of four (4) years beginning on the
Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s)
to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days after the date
of the receipt of any such Demand Notice.

 

    	3 

     

    

 

 

4.1.2         Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell
the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding
the provisions of this Section 4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one
(1) occasion and such demand registration right shall terminate on the fifth anniversary of the effectiveness of the registration
statement in accordance with FINRA Rule 5110(f)(2)(G)(iv).

 

4.2        “Piggy-Back”
Registration.

 

4.2.1        Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than seven (7) years from the date of effectiveness of the registration statement in accordance with FINRA
Rule 5110(f)(2)(G)(v), on two occasions, to include the Registrable Securities as part of any other registration of securities
filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities
Act or pursuant to Form S-8 or any equivalent form); provided, however, that if, solely in connection with any primary
underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion,
impose a limitation on the number of shares of Common Stock which may be included in the registration statement because, in such
underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution,
then the Company shall be obligated to include in such registration statement only such limited portion of the Registrable Securities
with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable
Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable
Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion
of such securities in such registration statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

    	4 

     

    

 

 

4.2.2         Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company
shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to
the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration
statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of
the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within
ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise
provided in this Purchase Warrant, there shall be only two occasions when the Holder may request registration under this Section
4.2.2; provided, however, that such registration rights shall terminate on the sixth anniversary of the Commencement
Date.

 

4.3         General
Terms.

 

4.3.1        Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between the Underwriters
and the Company, dated as of [___________], 2016. The Holder(s) of the Registrable Securities to be sold pursuant to such registration
statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act
or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section
5.2 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

 

4.3.2         Exercise
of Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise
their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3         Documents
Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each
underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of
counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold
comfort” letter dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered
public accounting firm which has issued a report on the Company’s financial statements included in such registration statement,
in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein)
and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements,
as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in
underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering
requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence
between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or
its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable
advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary
to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times as any such Holder shall reasonably request.

 

    	5 

     

    

 

 

4.3.4         Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably
satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder
and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that
any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be
made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5         Documents
to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company
a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6         Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to
the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.          New
Purchase Warrants to be Issued.

 

5.1        Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

    	6 

     

    

 

5.2        Lost
Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver
a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

6.          Adjustments.

 

6.1        Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

6.1.1        Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in Common Stock or by a split up of shares of Common Stock or other
similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion
to such increase in outstanding shares of Common Stock, and the Exercise Price shall be proportionately decreased.

 

6.1.2         Aggregation
of Common Stock. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding shares
of Common Stock is decreased by a consolidation, combination or reclassification of shares of Common Stock or other similar event,
then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease
in outstanding shares of Common Stock, and the Exercise Price shall be proportionately increased.

 

6.1.3        Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding shares of Common Stock
other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such shares of Common Stock,
or in the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other
than a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not
result in any reclassification or reorganization of the outstanding shares of Common Stock), or in the case of any sale or conveyance
to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the
right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable
hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash)
receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution
following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase
Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1
or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section
6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations,
sales or other transfers.

 

6.1.4         Changes
in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1,
and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in
the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase
Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the
Commencement Date or the computation thereof.

 

    	7 

     

    

  

6.2         Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in
any reclassification or change of the outstanding shares of Common Stock), the corporation formed by such consolidation or share
reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder
of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of
such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities
and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of
the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction
or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to
the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations
or share reconstructions or amalgamations.

 

6.3         Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the
exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being
the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may
be, to the nearest whole number of Shares or other securities, properties or rights.

 

7.          Reservation
and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose
of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of
the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. The Company
further covenants and agrees that upon exercise of the Purchase Warrants and payment of the exercise price therefor, all Shares
and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject
to preemptive rights of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially
reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official notice
of issuance) on all national securities exchanges (or, if applicable, on the OTC Bulletin Board or any successor trading market)
on which the Shares issued to the public in the Offering may then be listed and/or quoted.

 

8.          Certain Notice
Requirements.

 

8.1        Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event
at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder
a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is
given to the shareholders.

 

    	8 

     

    

 

8.2         Events
Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

8.3         Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s
Chief Financial Officer.

 

8.4         Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 11th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Head of Investment Banking

Fax No.: (212) 813-1047

 

with a copy (which shall not constitute notice) to:

Zysman, Aharoni, Gayer and Sullivan & Worcester LLP

1633 Broadway, 32nd Floor

New York, NY 10019

Attn: Oded Har-Even, Esq.

Fax No.: (212) 660-3001

 

If to the Company:

 

Cancer Prevention Pharmaceuticals, Inc.

1760 East River Road, Suite 250

Tucson, Arizona 85718

Attention: Chief Executive Officer

Fax No.: (520) 232-2191

 

    	9 

     

    

  

with a copy (which shall not constitute notice) to:

 

Gracin & Marlow, LLP

405 Lexington Avenue, 26th Floor

New York, NY 10174

Attention: Leslie Marlow, Esq.

Fax No.: (212) 208-4657

 

9.          Miscellaneous.

 

9.1        Amendments.
The Company and Aegis may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and Aegis may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest of the Holders.
All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

9.2         Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

9.3.         Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4         Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and
their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed
to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions
herein contained.

 

9.5         Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

    	10 

     

    

  

9.6         Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not
be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or
any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase
Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be
effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver
is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any
other or subsequent breach, non-compliance or non-fulfillment.

 

9.7         Execution
in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and
the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and
delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic
transmission.

 

9.8         Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any
time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Aegis enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page Follows]

 

    	11 

     

    

  

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2016.

 

CANCER PREVENTION PHARMACEUTICALS,
INC.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	12 

     

    

  

[Form to be used to exercise Purchase
Warrant]

 

Date: __________, 20___

 

The undersigned
hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.001 per share (the “Shares”),
of Cancer Prevention Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and hereby makes payment of $____
(at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase
Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the
number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

  

	X	=	Y(A-B)	 
	     A	 

  

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

	Signature 	 	 

 

	Signature Guaranteed	 	 

 

    	13 

     

    

  

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
	(Print in Block Letters)	 
	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	14 

     

    

  

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.001 per share, of Cancer
Prevention Pharmaceuticals, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does
hereby authorize the Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

  

	Signature 	 	 

 

	Signature Guaranteed	 	 

  

NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.

 

    	15

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