Document:

Exhibit 10.31

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

OPTION AND COLLABORATION AGREEMENT

 

This Option and Collaboration
Agreement (“Agreement”) dated 9th day of January, 2016 (“Effective Date”) by and
between Cancer Prevention Pharmaceuticals, Inc., a corporation organized and existing under the laws of the State of Delaware,
having a place of business at 1760 East River Road, Suite 250, Tucson, Arizona 85718 (“CPP”), and Sucampo AG,
a corporation organized and existing under the laws of Switzerland, having a place of business at Baarerstrasse 22, 6300 Zug, Switzerland
(“Sucampo”). CPP and Sucampo are referred to in this Agreement individually as a “Party”
and collectively as the “Parties.”

 

Recitals

 

WHEREAS, Sucampo is
a specialty pharmaceutical company with expertise in the development and commercialization of pharmaceutical products;

 

WHEREAS, CPP is a pharmaceutical
company that develops therapies for people with elevated risk for cancer;

 

WHEREAS, concurrent
with this Agreement, CPP and Sucampo have entered into that particular Securities Purchase Agreement dated January 9, 2016 under
which Sucampo makes certain commitments to invest in CPP (the “SPA”);

 

WHEREAS, CPP owns,
holds, licenses or controls certain regulatory filings, data and intellectual property rights related to the Product (as defined
below);

 

WHEREAS, CPP has licensed
certain rights to certain formulations of the Product in certain fields and certain territories outside of the United States to
Tillotts Pharma AG under that particular agreement entered into by and between CPP and Tillotts Pharma AG (“Tillotts”)
dated December 27, 2013 (the “Tillotts Agreement”);

 

WHEREAS, Sucampo wishes
to receive, and CPP wishes to grant, Sucampo an exclusive Option (as defined below”) to enter into an exclusive license agreement
with CPP under the terms described in Exhibit A to develop and commercialize the Product (as defined below) in the Territory
(as defined below);

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants herein contained, the receipt and sufficiency of which are hereby acknowledged,
CPP and Sucampo hereby agree as follows:

 

		1.	Definitions

 

		1.1	“Additional Indication” is defined in Section 4.2.

 

    	 	1	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		1.2	“Affiliate” means, with respect to a Party, any Entity that controls, is controlled
by, or is under common control with that Party. For the purpose of this definition, (a) “control” means direct
or indirect ownership of more than 50% of the shares of stock entitled to vote for the election of directors, in the case of a
corporation, or more than 50% of the equity interest in the case of any other type of legal entity, status as a general partner
in any partnership, or any other similar arrangement whereby such Entity controls or has the right to control the board of directors
or equivalent governing body of such Entity, or the ability to cause the direction of the management or policies of such Entity,
and (b) “Entity” means a partnership, limited partnership, limited liability partnership, corporation, limited
liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization.

 

		1.3	“Chairperson” is defined in Section 3.2.

 

		1.4	“Commercially Reasonable Efforts” means with respect to a Party, the efforts
and resources that similarly situated biotechnology or pharmaceutical company would use for its own internally discovered programs,
drug candidates and pharmaceutical products of similar commercial potential and similar stage of product life, in light of a product’s
characteristic features, issues of safety and efficacy, Regulatory Authority-approved labeling, product profile, the competitiveness
of alternative products in the marketplace, the likely timing of the product’s entry into the market, any patent and other
proprietary position, the likelihood of regulatory approval and other similar relevant scientific, technical and commercial factors.
For purposes of this definition of “Commercially Reasonable Efforts” and with respect to its use in Section 4.4, the
efforts and resources of a similarly situated company will be no less than those measured in comparison to a company similar to
CPP as CPP exists immediately prior to the Effective Date.

 

		1.5	“Concurrence Notice” is defined in Section 4.3.

 

		1.6	“CPP Additional Indication Development Plan and Budget” is defined in Section
4.2.

 

		1.7	“CPP Additional Indication Expenses” means, with respect to an indication for
which Sucampo did not concur pursuant to Section 4.2, but later is the subject of a Concurrence Notice in accordance with Section
4.3, any reasonable and documented expenses incurred by CPP in the performance of the applicable CPP Additional Indication Development
Plan and Budget prior to the delivery of the Concurrence Notice.

 

		1.8	“Data Package” is defined in Section 2.2.

 

		1.9	“Disclosing Party” is defined in Section 5.1.

 

		1.10	“DMC” is defined in Section 2.4(B).

 

		1.11	“Dollar” or “$” means the legal tender of the United States

 

		1.12	“Existing NDA” is defined in Section 5.1.

 

		1.13	“FAP” is defined in Section 4.2.

 

    	 	2	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		1.14	“FAP Pivotal Trial” is defined in Section 2.4(B).

 

		1.15	“FAP Pivotal Trial Protocol” is defined in Section 2.4(B).

 

		1.16	“FDA” means the United States Food and Drug Administration or any successor
entity thereto performing substantially the same functions.

 

		1.17	“First Payment” is defined in Section 2.4(A).

 

		1.18	“Indication Review Period” is defined in Section 4.2.

 

		1.19	“Joint Steering Committee” or “JSC” is defined in Section
3.1.

 

		1.20	“License” is defined in Section 2.1.

 

		1.21	“License Agreement” is defined in Section 2.2.

 

		1.22	“Licensed IP” is defined in Exhibit A.

 

		1.23	“NDA” means a new drug application for Regulatory Approval of the Product that
is filed with the FDA.

 

		1.24	“NDA Filing” is defined in Section 2.2.

 

		1.25	“Negotiation Period” is defined in Section 2.2.

 

		1.26	“Neutral Expert” is defined in Section 2.3.2.

 

		1.27	“Option” is defined in Section 2.1.

 

		1.28	“Option Effective Date” means the date upon which all of the following
have occurred: (a) Sucampo has paid CPP the First Payment in accordance with Section 2.4(A); and (b) Sucampo has purchased the
Note (as defined in the SPA) in accordance with the SPA.

 

		1.29	“Option Exercise Notice” is defined in Section 2.2.

 

		1.30	“Option Period” is defined in Section 2.2.

 

		1.31	“Product” is defined in Exhibit A.

 

		1.32	“Proposed Development Plan and Budget” is defined in Section 4.2.

 

		1.33	“Proposed License Agreement” is defined in Section 2.3.3.

 

		1.34	“Receiving Party” is defined in Section 5.1.

 

    	 	3	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		1.35	“Regulatory Approval” means, with respect to a Product in any country or jurisdiction,
the approvals by the applicable Regulatory Authority in such country or jurisdiction necessary for the marketing or sale of such
Product in such country or jurisdiction.

 

		1.36	“Regulatory Authority” means, in a particular country or regulatory jurisdiction,
any applicable governmental authority involved in granting Regulatory Approval and/or, to the extent required in such country or
regulatory jurisdiction, pricing or reimbursement approval of a Product in such country or regulatory jurisdiction.

 

		1.37	“Regulatory Filing” means, with respect to a Product, any submission to a Regulatory
Authority of any applications, notifications, and registrations for Regulatory Approvals or other submissions made to or with a
Regulatory Authority, together with all related correspondence to or from such Regulatory Authority, that are necessary or reasonably
desirable in order to develop, market or sell such Product in the applicable country or regulatory jurisdiction.

 

		1.38	“Resolution Procedure” is defined in Section 2.3.1.

 

		1.39	“Resolution Procedure Notice” is defined in Section 2.3.1.

 

		1.40	“Second Payment” is defined in Section 2.4(B).

 

		1.41	“SPA” is defined in the Recitals.

 

		1.42	“Sucampo-Approved Indication” is defined in Section 4.2.

 

		1.43	“Sucampo-Approved Indication Development Plan and Budget” is defined in Section
4.2.

 

		1.44	“Term” is defined in Section 8.1.

 

		1.45	“Territory” means North America (the United States, Canada and Mexico, in each
case including its territories and possessions).

 

		1.46	“Tillotts” is defined in the Recitals.

 

		1.47	“Tillotts Agreement” is defined in the Recitals.

 

		2.	OPTION

 

		2.1	Option Grant. Subject to the terms and conditions of this Agreement (including Section 2),
as of the Option Effective Date CPP shall grant and hereby grants Sucampo an exclusive option to obtain an exclusive license under
the terms described in Exhibit A (such option, the “Option”) to make, have made, use, import, offer for
sale, sell, develop and commercialize the Product in the Field in the Territory (such license, the “License”).
Notwithstanding anything in this Agreement to the contrary, including this Section 2.1, if (a) the Option Effective Date does not
occur within ten (10) business days after the Effective Date of this Agreement, then the Option described in this Section 2.1 shall
be null and void and not exercisable by Sucampo, or (b) Sucampo does not make the Investment (as defined in the SPA) in accordance
with the SPA, then the Option described in this Section 2.1 shall be null and void and not exercisable by Sucampo.

 

    	 	4	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		2.2	Exercise; Negotiation. Sucampo shall have the right to exercise the Option at any time during
the Option Period by delivery of written notice to CPP (“Option Exercise Notice”). Subject to Section 2.3, upon
delivery of the Option Exercise Notice by Sucampo in accordance with this Section 2.2 and for a period of one hundred and twenty
(120) days thereafter (or such longer period of time as mutually agreed to by the Parties in writing) (such time period, the “Negotiation
Period”, as may be extended as set forth in Section 2.3.1), the Parties shall negotiate in good faith a definitive written
agreement for the License, which shall include the terms set forth in Exhibit A and such other terms as are customary and
commercially reasonable, and enter into such agreement (such definitive agreement, the “License Agreement”).
For purposes of this Agreement, “Option Period” means the period of time beginning on the Option Effective Date
and ending thirty (30) days after CPP’s delivery of (a) written notice from CPP to Sucampo that the FDA has accepted the
first NDA filed for the Product in accordance with 21 CFR 314.101 (the “NDA Filing”) and (b) the Data Package
to Sucampo. “Data Package” means a true and accurate copy of (i) the NDA Filing (including all data and analyses
included therewith), and (ii) all Regulatory Filings. The Parties shall agree upon reasonable means of providing the Data Package
and the format therefor (e.g., through an electronic data room). During the Negotiation Period, CPP shall provide to Sucampo such
additional information in CPP’s possession or control relating to the Product as Sucampo may reasonably request to enable
Sucampo to make a reasonably informed decision with respect to the execution of the License Agreement.

 

		2.3	Dispute Resolution Procedure.

 

		2.3.1	If the License Agreement is not executed by the Parties prior to the expiration of the Negotiation
Period, then either Party may request in writing that a Neutral Expert determine the terms of the License Agreement in accordance
with the procedure described in this Section 2.3 (such procedure, the “Resolution Procedure”). At any time after
the expiration of the Negotiation Period, each Party shall have the right to initiate the Resolution Procedure by delivery of written
notice to the other Party (“Resolution Procedure Notice”). If a Resolution Procedure is initiated, then the
Negotiation Period shall continue until completion of the Resolution Procedure.

 

		2.3.2	After delivery of the Resolution Procedure Notice the Parties shall negotiate in good faith to
select a mutually acceptable neutral Third Party individual that is expert in the development and commercialization of products
similar to the Product in the Field in the Territory who is not, and has not in the past five (5) years been, an employee, consultant,
legal advisor, officer or director of, and does not have any conflict of interest with respect to (including, without limitation,
a financial interest), either Party (such Third Party, the “Neutral Expert”). If the Parties cannot agree on
a Neutral Expert within thirty (30) days after delivery of a Resolution Procedure Notice, then the selection of a Neutral Expert
shall be submitted to arbitration in accordance with Section 9.7.

 

    	 	5	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		2.3.3	Following delivery of a Resolution Procedure Notice, each Party shall have forty five (45) days
to prepare and deliver a copy of such Party’s proposed form of License Agreement (each, a “Proposed License Agreement”)
and, at the discretion of the submitting Party, a memorandum of reasonable length (not to exceed 10 pages) describing the support
for such Party’s Proposed License Agreement to the other Party and to the Neutral Expert. Within fifteen (15) days after
delivery of the other Party’s Proposed License Agreement and support memorandum, each Party may submit to the Neutral Expert
(with a copy to the other Party) a response to the other Party’s support memorandum, such response not to exceed five (5)
pages in length. Neither Party may have any other communications (either written or oral) with the Neutral Expert other than for
the sole purpose of initially engaging the Neutral Expert to perform the Resolution Procedure or as expressly permitted in this
Section 2.3; provided that the Neutral Expert may convene a hearing if the Neutral Expert so chooses to ask questions of the Parties
and hear oral argument and discussion regarding each Party’s Proposed License Agreement.

 

		2.3.4	The sole authority of the Neutral Expert shall be to choose the single Proposed License Agreement
that, after reasonable consideration, most accurately and fairly reflects the transaction contemplated by the Parties in entering
into this Agreement, including the fidelity of such Proposed License Agreement to the terms described in Exhibit A. The
Neutral Expert must select as the only method to resolve the matter at issue one of the two Proposed License Agreements, and may
not combine elements of both Proposed License Agreements or award any other relief or take any other action. The Neutral Expert
shall render his/her decision in writing within thirty (30) days after receiving each Party’s Proposed License Agreement
and, if applicable, support memorandum. If a Party does not deliver a Proposed License Agreement in accordance with Section 2.3.3
and the other Party does deliver a Proposed License Agreement in accordance with Section 2.3.3, then such other Party’s Proposed
License Agreement shall automatically be selected by the Neutral Expert. The selection of the Proposed License Agreement by the
Neutral Expert shall be final and binding upon the Parties. Each Party shall share equally the fees and expenses of the Neutral
Expert.

 

		2.3.5	If the Neutral Expert selects Sucampo’s Proposed License Agreement, then each Party shall
execute such Proposed License Agreement within five (5) business days following such selection by the Neutral Expert, after which
such Proposed License Agreement shall be the License Agreement.

 

    	 	6	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		2.3.6	If the Neutral Expert selects CPP’s Proposed License Agreement, then within ten (10) business
days following such selection by the Neutral Expert, Sucampo shall notify CPP in writing as to whether Sucampo wishes to enter
into such Proposed License Agreement. If Sucampo notifies CPP in writing that Sucampo wishes to enter into such Proposed License
Agreement, then each Party shall execute such Proposed License Agreement within five (5) business days following CPP’s receipt
of such notice, after which such Proposed License Agreement shall be the License Agreement. If Sucampo (a) fails to notify CPP
in writing within ten (10) business days following such selection by the Neutral Expert whether or not Sucampo wishes to enter
into such Proposed License Agreement, or (b) notifies CPP in writing prior to the expiration of such ten (10) business days that
Sucampo does not wish to enter into such Proposed License Agreement, then for each of (a) and (b) neither Party shall have any
further obligation to the other Party with respect to the execution of the License Agreement or the Option and Sucampo shall pay
CPP Two Million U.S. Dollars ($2,000,000) within five (5) business days of the expiration of such ten (10) business days, or delivery
of Sucampo’s written notice described in (b) above, as applicable.

 

		2.4	Option Fees. In partial consideration for the Option, Sucampo shall pay CPP Seven Million
Five Hundred Thousand U.S. Dollars ($7,500,000) as follows:

 

		(A)	First Payment. Within three (3) business days after the Effective Date, Sucampo shall pay
CPP Three Million U.S. Dollars ($3,000,000) (“First Payment”).

 

		(B)	Second Payment. Sucampo shall pay CPP Four Million Five Hundred Thousand U.S. Dollars ($4,500,000)
(“Second Payment”) within thirty (30) days after the earlier of (i) delivery to CPP of the Option Exercise Notice
in accordance with Section 2.2 and (ii) the date that CPP notifies Sucampo in writing that the DMC has completed the futility analysis
as specified by the FAP Pivotal Trial Protocol and statistical analysis plan (the “Futility Analysis”) and has
not determined that continuing the FAP Pivotal Trial is futile (“Successful Completion”). If the DMC delivers
to CPP a written report or notice on the Futility Analysis, then CPP shall deliver to Sucampo a copy of such report or notice within
ten (10) days.

 

For purposes
of Section 2.4(B):

 

		i.	“DMC” means the data monitoring committee described in the FAP Pivotal Trial
Protocol.

 

		ii.	“FAP Pivotal Trial” means the clinical trial for the Product that is in the
process of being performed by CPP as of the Effective Date that is titled “Phase III Trial of the Safety and Efficacy of
Eflornithine Combined With Sulindac Compared to Eflornithine, Sulindac as Single Agents in Patients With Familial Adenomatous Polyposis”.

 

		iii.	“FAP Pivotal Trial Protocol” means the protocol for the FAP Pivotal Trial as
it may be amended.

 

    	 	7	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

CPP’s
sole remedy for any failure by Sucampo to pay the Second Payment as set forth above shall be to terminate this Agreement in accordance
with Section 8.1.

 

		3.	Joint Steering Committee

 

		3.1	Establishment. Within thirty (30) days after the Effective Date, the Parties will establish
a joint steering committee (the “Joint Steering Committee” or “JSC”) to plan, administer,
evaluate and carry out all aspects of the development, regulatory, and commercialization activities by the Parties hereunder with
respect to the Product in the Field in the Territory. 

 

		3.2	Representatives. The JSC will consist of an equal number of representatives of CPP and Sucampo.
CPP shall have the right to appoint a CPP JSC representative to serve as chairperson of the JSC (the “Chairperson”).
The Chairperson shall have the right to make the final decision described in Section 3.6(a).

 

		3.3	Meetings and Reports. The JSC shall meet no less frequently than twice per year in person
or as otherwise mutually agreed by the Parties, and such meeting shall be held in the U.S. or at such other place and at such time
as shall be determined by the Parties. Either Party may call additional ad hoc meetings of the JSC as the needs arise with reasonable
advance notice to the other Party, and such ad hoc meetings shall be conducted at times that are mutually agreed upon by the Parties.
Unless otherwise mutually agreed by the Parties, the Chairperson shall prepare and circulate an agenda for such meetings and, as
soon as practicable, all materials, documents and information for the meeting for distribution to both Parties; provided,
that either Party may propose additional topics to be included on such agenda, either prior to or in the course of such meeting.
Subject to the in-person meeting described above, the JSC may meet in person, by videoconference or by teleconference. Unless otherwise
mutually agreed by the Parties, the Chairperson will be responsible for preparing reasonably detailed written minutes of all JSC
meetings that reflect, without limitation, material decisions made at such meetings. Unless otherwise mutually agreed by the Parties,
the Chairperson shall send draft meeting minutes to the Sucampo members and the CPP members of the JSC for review and approval
within ten (10) days after each JSC meeting. Such minutes will be deemed approved unless one or more members of the JSC objects
to the accuracy of such minutes within one (1) week of receipt. In addition to such JSC meetings, unless otherwise mutually agreed
by the Parties CPP shall provide to all JSC members within thirty (30) days following the end of each calendar quarter a report
summarizing CPP’s development activities with respect to the Product during such calendar quarter (including, without limitation,
interactions with any regulatory authority relating to the Product) and an update on the status of the development plans for the
Product.

 

		3.4	Responsibilities. Subject to Sections 3.5, 3.6 and 3.7, the JSC shall oversee CPP’s
management of the FAP Pivotal Trial and other studies in the Territory as may be undertaken by the Parties in support of the FAP
Pivotal Trial and the Product NDA development program (i.e., clinical pharmacology studies etc.) in a manner that allows CPP to
fulfill its contractual obligations under this Agreement and the Tillotts Agreement.

 

    	 	8	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission 

 

		3.5	Tillotts Agreement. The Parties acknowledge that CPP has established a joint steering committee
with Tillotts under the Tillotts Agreement for oversight of the Development and Commercialization of the Product outside of the
Territory. The Parties shall perform the obligations described in this Agreement with respect to the JSC in a manner that allows
CPP to fulfill its contractual obligations under the Tillotts Agreement.

 

		3.6	Dispute Resolution. In all matters subject to the JSC’s decision-making authority,
the JSC will aim to make decisions by consensus. If the JSC cannot reach consensus within thirty (30) days of a matter being brought
to the JSC’s attention, then, as between the Parties, CPP shall have the right to make the final decision with respect to
such matters.

 

		3.7	Amendment; Modification. The JSC shall not have any power to amend, modify, or waive compliance
with the provisions of this Agreement. The final decision making authority under Section 3.6 shall not authorize a Party to unilaterally
modify, amend, or waive its own compliance with the provisions of this Agreement.

 

		3.8	Termination of the JSC. The JSC shall be disbanded upon expiration or earlier termination
of this Agreement.

 

		3.9	CPP Right to Withdraw from JSC. At any time during the Term and for any reason, CPP may
withdraw from participation in the JSC upon written notice to Sucampo, which notice will be effective immediately upon receipt
(“JSC Withdrawal Notice”).  Upon delivery of a JSC Withdrawal Notice and for so long as CPP is withdrawn
from the JSC, CPP representatives to the JSC may not participate in any meetings of the JSC or vote on any recommendation to be
made by the JSC.   If at any time following the issuance of a JSC Withdrawal Notice, CPP wishes to resume participation
in the JSC, CPP must notify Sucampo in writing and, thereafter, CPP representatives to the JSC may attend any subsequent meeting
of the JSC and participate in the activities of, and vote on recommendations to be made by the JSC as provided in Section 3 as
if CPP had not issued a JSC Withdrawal Notice.  Following CPP’s issuance of a JSC Withdrawal Notice, unless and until
CPP resumes participation in the JSC as provided above: (a) all meetings of the JSC will be held at Sucampo’s facilities;
(ii) Sucampo’s representatives may alone vote on any recommendations to be made by the JSC; and (iii) Sucampo shall provide
CPP all notes and minutes of JSC meetings, provided that CPP shall have no right to approve the minutes for any JSC meeting held
during the time CPP has withdrawn from the JSC.

 

		4.	development of the product

 

		4.1	Development Expenses. Prior to the execution of the License Agreement in accordance with
Section 2, as between the Parties CPP shall have the obligation to pay for any expenses incurred by CPP in the execution of the
development program for the Product.

 

    	 	9	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission 

 

		4.2	Additional Indications. Prior to the execution of the License Agreement in accordance with
Section 2, CPP shall have the right, in its sole discretion, to develop the Product in any indication; provided, however
that if CPP wishes to develop the Product in the Field in the Territory in an indication other than familial adenomatous polyposis
(“FAP”) (such indication, an “Additional Indication”), then CPP shall provide Sucampo with
a proposed development plan and corresponding budget for the Product in such Additional Indication (“Proposed Development
Plan and Budget”) at least seventy (70) days prior to CPP submitting any Regulatory Filing for the Product in such Additional
Indication. Sucampo may, in its sole discretion, concur in the Development of the Product in such Additional Indication under such
Proposed Development Plan and Budget in writing within sixty (60) days of receiving such Proposed Development Plan and Budget,
or such later date as may be mutually agreed (such time period the “Indication Review Period”, such concurred
indication, a “Sucampo-Approved Indication”, and such concurred Proposed Development Plan and Budget, a “Sucampo-Approved
Indication Development Plan and Budget”). If, in response to a Proposed Development Plan and Budget, Sucampo does not
concur in the development of such Additional Indication prior to the expiration of the Indication Review Period, then subject to
Section 4.3, (a) CPP shall have the right to develop the Product in the corresponding Additional Indication at CPP’s sole
cost and expense in accordance with the Proposed Development Plan and Budget, and (b) such Proposed Development Plan and Budget
shall thereafter be a “CPP Additional Indication Development Plan and Budget”.

 

		4.3	Sucampo Additional Indication Right. Notwithstanding Section 4.2, Sucampo shall have the
right to concur in the Development of the Product in an Additional Indication under the corresponding CPP Additional Indication
Development Plan and Budget by delivery of written notice to CPP (“Concurrence Notice”). Upon CPP’s receipt
of the Concurrence Notice, (i) such Additional Indication shall automatically become a Sucampo-Approved Indication, and (ii) such
CPP Additional Indication Development Plan and Budget shall automatically become a Sucampo-Approved Indication Development Plan
and Budget.

 

		4.4	Diligence; Compliance. CPP shall use Commercially Reasonable Efforts to conduct and complete
the FAP Pivotal Trial and other development activities for the Products in the Territory in accordance with the applicable development
plan. CPP shall comply with all applicable laws, rules, regulations and guidances in connection with its development of the Products.

 

		5.	confidentiality

 

		5.1	Confidential Information. “Confidential Information” means any
data, information or material disclosed by or on behalf of one Party (the “Disclosing Party”), whether in writing,
visually, orally or in electronic medium to the other Party (the “Receiving Party”) under this Agreement or
in the course of contemplating a transaction under this Agreement prior to the execution of this Agreement, including without limitation
any information disclosed pursuant to that certain Mutual Non-Disclosure Agreement between CPP and Sucampo Pharmaceuticals, Inc.,
dated as of June 24, 2015 (the “Existing NDA”). Except as expressly set forth herein, the terms of this Agreement
shall be kept confidential by each Party as described in this Section 5 with respect thereto.

 

    	 	10	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission 

 

		5.2	Nondisclosure and Non-Use Obligations. Subject to Sections 5.3 and 5.4, unless
the Disclosing Party provides prior written consent, the Receiving Party shall maintain in confidence all Confidential Information
of the Disclosing Party, shall not disclose such Confidential Information to any Third Party and shall not use such Confidential
Information for any purpose except to exercise such Party’s rights or fulfill its obligations under this Agreement.

 

		5.3	Exceptions. Each Party’s confidentiality and non-use obligations under this Agreement
shall not apply to any portion of the Confidential Information of the Disclosing Party that the Receiving Party can demonstrate
with competent written proof:

 

		(A)	Is known by the Receiving Party at the time of its receipt, without obligation of confidentiality
or non-use, and not through a prior confidential disclosure by the Disclosing Party, as documented by the Receiving Party’s
written records;

 

		(B)	Is in the public domain before its receipt from the Disclosing Party, or thereafter enters the
public domain through no breach of this Agreement by the Receiving Party or with the consent of the Disclosing Party;

 

		(C)	Is subsequently disclosed to the Receiving Party, without obligation of confidentiality or non-use,
by a Third Party who may lawfully do so and who is not under an obligation of confidentiality to the Disclosing Party; or

 

		(D)	Is developed by the Receiving Party independently of Confidential Information received from the
Disclosing Party and without the aid, application or use of the Disclosing Party’s Confidential Information, and such independent
development can be properly documented by the Receiving Party.

 

Any combination
of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published
or available to the general public or in the rightful possession of the Receiving Party unless the combination itself and principle
of operation are published or available to the general public or in the rightful possession of the Receiving Party.

 

		5.4	Permitted Disclosure. Nothing in Section 5 shall restrict the Receiving Party from
disclosing Confidential Information of the Disclosing Party to the extent that such disclosure:

 

    	 	11	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		(A)	Is made to the Receiving Party’s or its Affiliates’ employees, officers, directors,
agents or contractors (“Representatives”), for purposes the Receiving Party reasonably deems necessary for the
exploitation of its rights or fulfillment of its obligations under this Agreement, provided that all such recipients agree
to be bound by, or are otherwise bound by, confidentiality and non-use obligations that are no less stringent than those confidentiality
and non-use provisions contained in this Agreement (with potentially a shorter duration no less than five years from the date such
Confidential Information is disclosed to such recipients), and the Receiving Party shall be responsible for and liable under this
Agreement with respect to any breach of its confidentiality and non-use obligation caused by its Representatives;

 

		(B)	Is deemed necessary by the Receiving Party to be disclosed to attorneys, independent accountants,
potential or actual acquirers, merger candidates or investors or venture capital firms, investment bankers or other financial institutions
or investors, provided that, except with respect to the disclosure of pro forma financial projections, all such recipients
are, or agree to be, bound by confidentiality and non-use obligations; or

 

		(C)	Is required to comply with applicable law, valid order of a court of competent jurisdiction, or
other judicial or administrative process of governmental authority or agency, provided that the Receiving Party shall (i)
promptly inform the Disclosing Party of the disclosure that is being sought in order to provide the Disclosing Party, where possible,
an opportunity to challenge, limit or receive confidential treatment for the required disclosure, (ii) upon request, reasonably
cooperate with any efforts by the Disclosing Party to challenge, limit or receive confidential treatment for, the required disclosure,
(iii) only disclose the minimum Confidential Information necessary to comply, as determined by the Receiving Party’s legal
counsel, and (iv) in the event of a limited disclosure of any Confidential Information as required by applicable law, continue
to treat such information as Confidential Information of the Disclosing Party for all other purposes and subject to Section 5.

 

		5.5	Disclosures Required by Securities Laws or Exchanges. Notwithstanding anything to the contrary
in this Agreement, to the extent a Party reasonably determines that it is necessary to disclose the information relating to this
Agreement under applicable (a) securities laws or rules, including those promulgated by the U.S. Securities and Exchange Commission
(the “SEC”), or (b) any rules or requirements of stock exchanges on which equity securities of such Party may
be listed, such Party may disclose this Agreement and its terms, and material developments or material information generated under
this Agreement, in securities filings with the SEC (or equivalent foreign agency) (a “Required Disclosure”)
after complying with the procedures set forth in this Section 5.5.  If pursuant to a Required Disclosure a Party is required
to disclose this Agreement or any of its terms, such Party shall, prior to any such Required Disclosure, prepare and send to the
other Party for review a draft confidential treatment request and proposed redacted version of this Agreement to be filed with
the SEC (or equivalent foreign agency) to request confidential treatment of this Agreement.  The reviewing Party shall promptly
(and in any event, no more than three (3) business days after receipt of such confidential treatment request and proposed redactions)
provide its reasonable comments, which the disclosing Party shall take into reasonable consideration.  If no response or comments
are received by the disclosing Party within such three (3) business days then it shall be conclusively presumed that the reviewing
Party has no comments. The Party seeking such disclosure of this Agreement shall exercise commercially reasonable efforts to obtain
confidential treatment of this Agreement from the SEC (or equivalent foreign agency) as represented by the redacted version reviewed
by the other Party.  If pursuant to a Required Disclosure a Party is required to disclose material developments or material
information generated under this Agreement, which information has not previously been publicly disclosed, such disclosing Party
shall, prior to any such disclosure, send to the other Party the proposed disclosure for review.  The reviewing Party shall
promptly (and in any event, no more than three (3) business days after receipt of such proposed disclosure) provide its reasonable
comments on the proposed disclosure, which the disclosing Party shall take into reasonable consideration. If any information
has been previously disclosed in a public filing it may be disclosed by a Party in other future filings without the consent of
the other Party.

 

    	 	12	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		5.6	Disclosure of Agreement Terms. Each Party and any of its Affiliates may disclose the terms
and conditions of this Agreement to a Third Party is connection with a prospective financing, license, corporate transaction or
asset sale relating to the relevant Party or any of its Affiliates subject to such disclosure being made under a written confidentiality
agreement with confidentiality terms that are at least as stringent as those described in Section 5.

 

		6.	representations and warranties

 

		6.1	Mutual Representations and Warranties. Each Party hereby represents and warrants to the
other Party as of the Effective Date that: (a) it has the full right, power and authority to enter into this Agreement and to perform
its obligations hereunder; and (b) this Agreement has been duly executed by it and is legally binding upon it, enforceable in accordance
with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a Party
or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other
agency having jurisdiction over it.

 

		6.2	CPP Representations and Warranties. CPP hereby represents and warrants to Sucampo that as
of the Effective Date:

 

		(A)	it has the full right, power and authority to grant the rights hereunder, including the license
set forth in Exhibit A;

 

		(B)	it has not assigned, transferred, conveyed, licensed, or otherwise encumbered its right, title
and interest in the Licensed IP in any manner that would prevent it from granting the rights hereunder, including the license set
forth in Exhibit A;

 

    	 	13	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		(C)	it has not received any written notice of any claim that any intellectual property right owned
or controlled by a third party would be or is infringed or misappropriated by the manufacture, use, sale, offer for sale or importation
of the Product in the Field and, to CPP’s knowledge, the manufacture, use, sale, offer for sale or importation of the Product
in the Field in the Territory would not and does not infringe or misappropriate any intellectual property right owned or controlled
by a third party;

 

		(D)	neither CPP nor any of its Affiliates or their employees, officers, or directors have made, nor
to CPP’s knowledge has any other third party acting under CPP’s authority made, an untrue statement of a material fact
to any Regulatory Authority with respect to the Product, or knowingly failed to disclose a material fact required to be disclosed
to any Regulatory Authority with respect to the Product. CPP, its Affiliates and their employees, officers, or directors and to
CPP’s knowledge all such third parties have complied with all regulatory requirements with respect to the Product and active
pharmaceutical ingredients contained therein. To CPP’s knowledge (1) all information within the Regulatory Filings have been
generated in compliance with all applicable laws, including, as applicable, cGMP, cGCP and cGLP, and (2) all Regulatory Filings
are true and correct in all material respects.

 

		6.3	CPP Covenant. CPP covenants that it shall not during the Term assign, transfer, convey,
exclusively license, or otherwise encumber its right, title and interest in the Licensed IP in any manner that would prevent it
from granting the rights hereunder, including the licenses set forth in Exhibit A.

 

		6.4	Disclaimer. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 6, (A) NO REPRESENTATION, CONDITION
OR WARRANTY WHATSOEVER IS MADE OR GIVEN BY OR ON BEHALF OF CPP OR SUCAMPO; (B) ALL OTHER CONDITIONS AND WARRANTIES WHETHER ARISING
BY OPERATION OF LAW OR OTHERWISE ARE HEREBY EXPRESSLY EXCLUDED, INCLUDING ANY CONDITIONS AND WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT; AND (C) ALL KNOW-HOW AND MATERIALS PROVIDED BY A PARTY TO THE OTHER PARTY UNDER THIS
AGREEMENT ARE PROVIDED “AS-IS”.

 

		7.	iNDEMNIFICATION; limitation of liabiliTy

 

		7.1	Indemnification by CPP. CPP shall indemnify, defend and hold Sucampo, its
Affiliates and their respective agents, employees, officers and directors (each a “Sucampo Indemnitee”) harmless
from and against any and all Third Party claims, suits, actions, demands, judgments, liabilities, expenses or losses, including
reasonable legal expenses and attorneys’ fees (collectively, “Sucampo Losses”), to which any Sucampo Indemnitee
may become subject to the extent such Sucampo Losses are directly or indirectly caused by or otherwise arise out of or in connection
with the breach by any CPP Indemnitee of any covenant, representation or warranty or other agreement made by CPP in this Agreement
or arising in connection with CPP’s development of the Products, except to the extent such Sucampo Losses result from the
breach by any Sucampo Indemnitee of any covenant, representation, warranty or other agreement made by Sucampo in this Agreement
or any Sucampo Indemnitee’s negligence, recklessness or willful misconduct.

 

    	 	14	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		7.2	Indemnification by Sucampo. Sucampo shall indemnify, defend, and hold CPP, its Affiliates
and their respective agents, employees, officers and directors (each a “CPP Indemnitee”) harmless from and against
any and all Third Party claims, suits, actions, demands, judgments, liabilities, expenses, or losses, including reasonable legal
expenses and attorneys’ fees (collectively, “CPP Losses”) to which any CPP Indemnitee may become subject
to the extent such CPP Losses are directly or indirectly caused by or otherwise arise out of or in connection with a breach by
any Sucampo Indemnitee of any covenant, representation, warranty or other agreement made by Sucampo in this Agreement, except to
the extent such CPP Losses result from the breach by any CPP Indemnitee of any covenant, representation, warranty or other agreement
made by CPP in this Agreement or any CPP Indemnitee’s negligence, recklessness or willful misconduct.

 

		7.3	Indemnification Procedure. In the event of any such claim against any Sucampo Indemnitee
or CPP Indemnitee, the indemnified Party shall provide the indemnifying Party with prompt notice of the claim giving rise to the
indemnification obligation pursuant to this Article 7 and the exclusive ability to defend (with the reasonable cooperation of the
indemnified Party) or settle any such claim at its sole expense; provided, however, that the indemnifying Party shall not
enter into any settlement for damages other than monetary damages without the indemnified Party’s written consent, such consent
not to be unreasonably withheld. The indemnified Party shall have the right to participate, at its own expense and with counsel
of its choice, in the defense of any claim or suit that has been assumed by the indemnifying Party. If the Parties cannot agree
as to the application of Sections 7.1 and 7.2 to any particular claim, the Parties may conduct separate defenses of such claim.
Each Party reserves the right to claim indemnity from the other in accordance with Sections 7.1 and 7.2 above upon resolution of
the underlying claim, notwithstanding the provisions of this Section 7.3 requiring the indemnified Party to tender to the indemnifying
Party the exclusive ability to defend such claim or suit.

 

		7.4	LIMITATION OF LIABILITY. EXCEPT FOR LIABILITIES ARISING UNDER SECTION 7.1
AND 7.2, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL, EXEMPLARY
OR CONSEQUENTIAL DAMAGES (INCLUDING ANY CLAIMS FOR LOST PROFITS, SALES, REVENUES OR OPPORTUNITIES) ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT (OR THE EXERCISE OF ITS RIGHTS HEREUNDER) UNDER ANY THEORY OF LIABILITY, AND REGARDLESS OF ANY NOTICE OR KNOWLEDGE
OF THE POSSIBILITY OF SUCH DAMAGES.

 

    	 	15	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		8.	Term and tERMINATION

 

		8.1	Term. This Agreement shall begin on the Effective Date and shall expire on the first to
occur of the following: (a) the expiration of the Option Period if Sucampo has not exercised its Option in accordance with this
Agreement prior to the expiration of the Option Period; (b) the date on which the License Agreement becomes effective; (c) the
date on which the Option becomes null and void and not exercisable by Sucampo in accordance with Section 2.1; (d) Sucampo’s
failure to pay CPP the Second Payment, if due, within the 30-day period set forth in Section 2.4(B); and (e) termination by either
Party pursuant to Section 8.2 (“Term”).

 

		8.2	Termination for Material Breach. If either Party believes that the other is in material
breach of its obligations hereunder, then such Party may deliver notice of such breach to the other Party. The allegedly breaching
Party shall have thirty (30) days from such notice to cure such breach. If the Party receiving notice of breach fails to cure such
breach within the period set forth above, then the Party originally delivering the notice of breach may terminate this Agreement
effective on written notice of termination to the other Party. Notwithstanding the foregoing, if a Party gives notice of termination
under this Section 8.2 and the other Party disputes whether such termination is proper, then the issue of whether this Agreement
may properly be terminated upon expiration of the notice period (unless such material breach is cured as provided above) shall
be resolved in accordance with Section 9.7. If as a result of such dispute resolution process under Section 9.7 it is determined
that the notice of termination was proper, then such termination shall be deemed to have been effective thirty (30) days following
the date of the notice of termination. If as a result of such dispute resolution process it is determined that the notice of termination
was improper, then no termination shall have occurred and this Agreement shall remain in effect.

 

		8.3	Validity Challenges. If Sucampo challenges the validity or enforceability of any of the
Licensed IP, or aids or assists any Affiliate or Third Party in such challenge other than as required by applicable law, then CPP
shall have the right to terminate this Agreement immediately upon written notice to Sucampo.

 

		8.4	Survival. The provisions of Sections 1, 5, 6 (excluding Section 6.3), 7, 8.4 and 9 shall
survive the expiration or termination of this Agreement.

 

		9.	MISCELLANEOUS

 

		9.1	Entire Agreement. This Agreement, together with Exhibit A, contains the entire understanding
of the Parties with respect to the subject matter contained herein. Any other express or implied agreements and understandings,
negotiations, writings and commitments, either oral or written, in respect to the subject matter contained herein are superseded
by the terms of this Agreement, including without limitation the Existing NDA. Exhibit A to this Agreement is incorporated
herein by reference and shall be deemed a part of this Agreement.

 

    	 	16	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		9.2	Notices. Any notice required or permitted by this Agreement shall be in writing and shall be
delivered as follows, with notice deemed given as indicated: (a) by personal delivery, when actually delivered; (b) by overnight
courier, upon written verification of receipt; (c) by facsimile transmission, upon personal acknowledgment of receipt of electronic
transmission; (d) by certified or registered mail, return receipt requested, upon verification of receipt; or (e) by electronic
mail, upon delivery to the recipient’s electronic mail system and personal acknowledgment thereof by the recipient (i.e.,
not by an automated response), and provided that such electronic mail states in the subject line that it is a notice under this
Section 9.2. All notices delivered by personal delivery or overnight courier shall be delivered to the addresses set forth on the
first page of this Agreement. All notices delivered by facsimile transmission or electronic mail shall be sent to the following
addresses:

 

If to Sucampo:

 

Sucampo AG

c/o Sucampo Pharmaceuticals,
Inc.

805 King Farm
Boulevard, Suite 550

Rockville, Maryland
20850

ATTN: General Counsel

 

Facsimile: +1
301 961 3440

 

If to CPP:

Cancer Prevention
Pharmaceuticals, Inc.,

1760 East River
Road, Suite 250

Tucson Arizona
85718

ATTN: Chief Executive Officer

 

Facsimile: (520)
232-2191

 

Notice shall be
sent to the addresses set forth above or to such other address as either Party may provide in writing delivered in accordance with
this Section 9.2.

 

		9.3	Payment. All payments due CPP shall be paid in Dollars and shall be transmitted to CPP by
bank wire transfer of immediately available funds. The remittance shall be made to the following bank account of CPP:

 

Wells Fargo
Bank, N.A.

420 Montgomery
St.

San Francisco,
CA 94104

 

Account Name:
Cancer Prevention Pharmaceuticals, Inc.

Routing No.:

Account No.:

 

    	 	17	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

CPP may change
the designated bank account by written notice to Sucampo signed by a duly authorized representative of CPP.

 

All payments
owed under this Agreement shall be paid in full when due, without any deductions or offsets for withholding taxes, wire transfer
fees, currency exchange fees or otherwise, except only as is otherwise expressly authorized elsewhere in this Agreement.

 

		9.4	Assignment. Except as provided in this Section 9.4, neither Party may assign or otherwise
transfer this Agreement or any right or obligation hereunder, without the prior written consent of the other Party. Notwithstanding
the foregoing, either Party may, without consent of the other Party, assign this Agreement or any of its rights or obligations
hereunder in whole or in part to: (a) an Affiliate of such Party; or (b) its successor in interest in connection with a Strategic
Transaction; provided, however, that in the case of assignment to an Affiliate, the assigning Party shall, notwithstanding
such assignment, remain liable for the performance of such Affiliate under this Agreement. The terms and conditions of this Agreement
shall be binding upon, and shall inure to the benefit of, the Parties and their respected successors and permitted assigns. For
purposes of this Section 9.4, “Strategic Transaction” means, with respect to a Party, the occurrence of any
of the following events: (x) the direct or indirect acquisition by any Third Party of more than fifty percent (50%) of the combined
voting power of the then outstanding voting securities of such Party normally entitled to vote in elections of directors; (y) the
sale, transfer, conveyance or other disposition of all or substantially all of such Party’s assets to which this Agreement
relates to a Third Party, or (z) the consummation of a merger, acquisition, consolidation or other similar transaction between
or involving a Third Party and such Party (or the ultimate parent Entity which, immediately prior to the Strategic Transaction,
directly or indirectly controls such Party.)

 

		9.5	Severability. If any one or more of the provisions contained in this Agreement is held invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the
substantive rights of the Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal
or unenforceable provision(s) with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes
of this Agreement.

 

		9.6	Choice of Law. This Agreement and any dispute arising in connection with it will be governed
by the laws of the State of New York, United States of America.

 

    	 	18	 

     

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 406 of the Securities Act of 1933, as amended. A complete copy of this document
has been filed separately with the Securities and Exchange Commission

 

		9.7	Dispute Resolution. Each such dispute, controversy or claim shall be finally resolved by
binding arbitration (an “Arbitration”) administered by JAMS pursuant to its Comprehensive Arbitration Rules
and Procedures and in accordance with the Expedited Procedures in those Rules then in effect (the “JAMS Rules”),
and judgment on the Arbitration award may be entered in any court having jurisdiction thereof. The proceedings and decisions of
the arbitrators in any Arbitration under this Section 9.7 shall be confidential except as otherwise expressly permitted in this
Agreement, agreed upon by the Parties, or required by applicable Law. Each Arbitration shall be conducted by a panel of three (3)
arbitrators, each with at least ten (10) years’ experience in the pharmaceutical or biotechnology business selected pursuant
to the JAMS Rules. Within thirty (30) days after initiation of Arbitration, each Party shall select one person to act as an arbitrator
and the two Party-selected arbitrators shall select a third arbitrator within thirty (30) days of their appointment. If the arbitrators
selected by the Parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be appointed by JAMS.
The place of arbitration shall be New York City, New York, and all proceedings and communications shall be in English.

 

		9.8	Headings. The captions to the several Sections and subsections hereof are not a part of
this Agreement, but are merely for convenience to assist in locating and reading the several Articles and Sections hereof.

 

		9.9	Independent Contractors. It is expressly agreed that Parties shall be independent contractors
and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency. Neither Party shall
have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding
on the other Party, without the prior written consent of the other Party.

 

		9.10	Waiver. The waiver by either Party of any right hereunder, or of any failure of the other
Party to perform, or of any breach by the other Party, shall not be deemed a waiver of any other right hereunder or of any other
breach by or failure of such other Party whether of a similar nature or otherwise.

 

		9.11	Amendments. This Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by authorized representative(s) of both Parties.

 

		9.12	Counterparts. This Agreement may be executed in counterparts by original signature, facsimile
or PDF files, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

[Signature page follows]

 

    	 	19	 

     

    

 

IN WITNESS WHEREOF,
the Parties intending to be bound have caused this Option Agreement to be executed by their duly authorized representatives.

 

CPP:

 

Cancer Prevention Pharmaceuticals, Inc.

 

	 	Signature 	/s/ Jeffrey Jacob	 
	 	 	 	 
	 	Name	Jeffrey Jacob	 
	 	 	 	 
	 	Title	Chief Executive Officer	 
	 	 	 	 
	 	Date	January 9, 2016	 

 

SUCAMPO:

 

Sucampo AG

 

	 	Signature 	/s/ Andrew Smith	 
	 	 	 	 
	 	Name	Andrew Smith	 
	 	 	 	 
	 	Title	Authorized Signatory	 
	 	 	 	 
	 	Date	January 9, 2016	 

 

Signature Page to Option and Collaboration
Agreement

 

    	 	20	 

     

    

 

 

Exhibit A

 

License Agreement Terms

 

	
        Product
	 	CPP-1X/sul, a product including both eflornithine and sulindac as active ingredients (each, an "Active Ingredient"), together as the sole active ingredients or both together in combination with additional active ingredients. For clarity, “Product” includes any product configuration in which the Active Ingredients are packaged for concurrent administration, whether as a single capsule or multiple capsules.
	 	 	 
	Field	 	Treatment, prevention and diagnosis of human diseases and conditions 
	 	 	 
	Territory	 	North America
	 	 	 
	Additional Definitions	 	The following definitions are intended for guidance in negotiations only and will be further refined in the License Agreement.
	 	 	 
	 	 	“Commercialize” or “Commercialization” means any and all activities directed to the commercialization of a Product, including pre-launch and post-launch marketing, promoting, distribution, detailing or selling of a Product (as well as importing and exporting activities in connection therewith).  When used as a verb, “Commercialize” means to engage in Commercialization.
	 	 	 
	 	 	“Control” or “Controlled” means, ,the legal authority or right (whether by ownership, license or otherwise) to: (i)  with respect to any molecule or  material, grant ownership of or a license or sublicense to use such molecule or material; (ii)  with respect to any know-how, patents, other intellectual property, grant ownership of or a license or a sublicense under such know-how, patents, or intellectual property; or (iii)  with respect to any proprietary or trade secret information, disclose such information; in each case without breaching the terms of any agreement with, obligation to or other arrangement with a Third Party, or misappropriating the proprietary or trade secret information of a Third Party; in each case as provided in the License Agreement.
	 	 	 
	 	 	“Develop” means any and all research and development activities for any Product conducted anywhere in the Territory on and after Effective Date relating to such Product, including all non-clinical, preclinical and clinical activities, testing and studies of any Product, manufacturing development, process development, toxicology studies, distribution of Products for use in clinical trials (including placebos and comparators), research and development of companion diagnostics for use in connection with clinical trials of Products as well as approved Products, statistical analyses, and the preparation, filing and prosecution of any Marketing Approval Application and obtaining or maintaining Regulatory Approvals for any Product, as well as all regulatory affairs related to any of the foregoing.  When used as a verb, “Develop” means to engage in Development.
	 	 	 
	 	 	“Licensed IP” means the Licensed Patents and Licensed Know-How.
	 	 	 
	 	 	“Licensed Know-How” means any and all know-how Controlled by CPP or any of its Affiliates as of the Effective Date or thereafter during the Term that relates to, or is otherwise reasonably necessary or reasonably useful for, the use, Development, manufacture, or Commercialization of the Product.

 

    	 	21	 

     

    

 

	 	 	“Licensed Patents” means any and all patents and patent applications that are Controlled by CPP or any of its Affiliates as of the effective date or thereafter during the Term that: (a) are set forth in Schedule 1; and/or (b) claim the composition of matter of, or the method of manufacturing or using, any Product; or (c) that otherwise relate to, or are reasonably necessary or reasonably useful for, the use, Development, manufacture or Commercialization of any Product.
	 	 	 
	 	 	“NDA” means a new drug application for Regulatory Approval of the Product that is filed with the FDA.
	 	 	 
	 	 	“Option Agreement” means the Agreement to which this Exhibit A is attached.
	 	 	 
	 	 	“Sucampo-Approved Indications” is defined in the Option Agreement.
	 	 	 
	Collaboration Governance	 	
        Sucampo and CPP would establish a Joint
        Steering Committee (JSC) to provide strategic leadership for the development of the Product and a Joint Commercialization Committee
        (JCC) to establish and update annually a commercial plan and budget for the Product in the Territory and to determine in good faith
        potential co-promotion by CPP if in the best interests of maximizing sales. As between the parties, Sucampo would have the final
        decision making vote on matters decided by the JSC relating to the development of the Product in the Field in the Territory and
        on matters decided by the JCC related to Commercialization.

         

        The Parties shall coordinate the activities
        overseen by the JSC under the License Agreement with those overseen by the joint steering committee described in the Tillotts Agreement
        in a manner that allows CPP to fulfill its contractual obligations under the Tillotts Agreement.

         

	License	 	
        CPP would grant Sucampo an exclusive license,
        with the right to sublicense, under the Licensed IP to develop, make, have made, use, import, offer for sale and sell the Product
        in the Field and in the Territory (“License”). Sucampo’s rights to manufacture the Product will be subject to
        the existing exclusive supply arrangement with a third party described below to the extent such arrangement exists at time of execution
        of the License Agreement.

         

	Sublicense Rights	 	Sucampo would have the right to grant sublicenses under the License, through multiple tiers, to any Affiliate or Third Party. Each sublicense of Sucampo’s rights shall be in writing, shall be consistent with the terms and conditions of this Exhibit A, and shall require the sublicensee, in granting any further sublicenses, to comply with Sucampo’s sublicensing obligations hereunder as though such sublicensee were Sucampo. If Sucampo grants a sublicense to any Third Party, then Sucampo shall: (i) include in each such sublicense agreement terms that permit Sucampo to comply with its obligations under this Agreement, including related to reporting sales of Product to CPP; (ii) notify CPP of such sublicense or amendment thereto within thirty (30) days after it becomes effective, including the identity of the sublicensee and the territory in which such rights have been sublicensed; (iii) at CPP’s request, provide CPP a copy of such sublicense agreement and amendment thereto (provided that Sucampo may redact those provisions of such agreement or amendment that are unrelated to Sucampo’s obligations under the License Agreement); and (iv) use commercially reasonable efforts to enforce the terms of such sublicense agreement that relate to Sucampo’s obligations under the License Agreement.

 

    	 	22	 

     

    

 

	Supply and Manufacturing	 	The parties acknowledge and agree that, as of the Effective Date of the Option Agreement, CPP is subject to legally binding obligations with a third party regarding the exclusivity of its current source of Product. Contemporaneously with execution of the License Agreement, the parties shall enter into a supply agreement whereby CPP shall supply Product to Sucampo on the same terms as CPP purchases Product from such third party until such time as such exclusivity obligation has ceased. On the request of Sucampo, the parties shall together negotiate in good faith with such third party to secure supply of Product for Sucampo directly with such third party manufacturer. 
	 	 	 
	Regulatory Matters; Right of Reference	 	Sucampo shall control regulatory interactions and decisions relating to the Product in the Territory and shall hold the NDA and other Regulatory Approvals for the Product in the Territory. Sucampo would have the exclusive right to reference and use all information, know-how, and data generated in the FAP Pivotal Trial (as defined in the Option Agreement) and other Product development activities conducted by CPP in support of Regulatory Filings and Regulatory Approvals for the Product in the Territory.
	 	 	 
	Product Rights	 	
        Subject to the Excepted Matters, Sucampo
        would be responsible for and control the development, manufacture and commercialization of the Product in the Field and Territory
        at its own expense.

         

	Diligence	 	Sucampo would use commercially reasonable efforts to develop, manufacture and commercialize the Product in the Field in the Territory, including in FAP and in indications in the Field other that FAP that are (i) Sucampo-Approved Indications or (ii) granted Regulatory Approval in the Territory.
	 	 	 
	Exclusivity	 	Except for the Product, CPP would not develop or commercialize in the Territory (i) any product with both of the Active Ingredients (or where both Active Ingredients are co-packaged or co-marketed) for use in the Field, or (ii) any product that uses any Active Ingredient (whether both or a single Active Ingredient) for the treatment of FAP.
	Financial Terms	 	 

	License Fee	 	Payable upon execution of the license agreement if the option was exercised prior to the completion (i.e., database lock and completion of analyses) of the FAP trial	$5 million
	Payable upon execution of the license agreement if the option was exercised after the completion of the FAP trial	$10 million
	Total License Fee  	$5-10 million
	Milestone Payments	 	NDA approval for FAP	[*****]
	 	First dosing in pivotal trial in each of up to three additional indications (i.e., other than FAP)	[*****]
	 	NDA approval for second indication	[*****]
	 	NDA approval for third indication	[*****]
	 	NDA approval for fourth indication	[*****]
	 	 	Total Development Milestones  	[*****]
	 	 	First time annual net sales of the Product in the Territory > $100M	[*****]
	 	 	First time annual net sales of the Product in the Territory > $250M	[*****]
	 	 	First time annual net sales of the Product in the Territory > $500M	[*****]
	 	 	First time annual net sales of the Product in the Territory > $750M	[*****]
	 	 	Total Sales Milestones  	[*****]

 

    	 	23	 

     

    

	 	 		 
	Patent Prosecution and Enforcement	 	
        Prosecution: As between the Parties,
        CPP shall have the first right, but not the obligation, to prosecute any Licensed Patent in the Territory. Sucampo shall cooperate
        with CPP in the preparation, filing, prosecution and maintenance of such Licensed Patents. CPP shall copy Sucampo on all correspondence
        from and to any patent office relating to such Licensed Patents in a timely manner, and CPP shall provide Sucampo with drafts of
        all proposed filings and material correspondences to the patent authorities with respect to such Licensed Patents in reasonably
        adequate time before filing or submission of such materials, for Sucampo’s review and comment. CPP will reasonably consider
        in good faith Sucampo’s comments prior to submitting such filings and correspondences to the extent such comments are timely
        provided and it is reasonably practicable to do so. CPP shall notify Sucampo of any decision not to file for, prosecute or maintain,
        or not to continue to pay the expenses of prosecution or maintenance of, any such Licensed Patents, including divisional and continuation
        patents. CPP shall provide such notice at least thirty (30) days prior to any filing or payment due date, or any other due date
        that requires action, in connection with such Licensed Patent. In such event, Sucampo shall have the right, but not the obligation,
        to file for, or continue prosecution or maintenance of, such Licensed Patent. All costs incurred by a Party in prosecuting the
        Licensed Patents in the Territory shall be shared by the Parties as a deduction from Net Profit. Sucampo would have the right to
        direct the filing of an Orange Book listing or application for regulatory exclusivity in the Territory.

         

        Enforcement: Each Party shall give
        the other Party notice of any known or suspected infringement by a Third Party of any Licensed Patent in the Territory (“Patent
        Infringement”) within fifteen (15) Business Days after such Patent Infringement comes to such Party’s attention. Sucampo
        shall have the first right, but not the obligation, to bring and control any legal action, including by declaratory judgment action,
        patent litigation or similar proceeding, in connection with any Patent Infringement at its own expense and discretion as it reasonably
        determines appropriate. Sucampo shall keep CPP informed and reasonably consult with CPP in the course of such legal action. CPP
        shall have the right to be represented in any such action by counsel of its choice at its own expense. At the request of Sucampo,
        CPP shall reasonably cooperate and provide any information or assistance in connection with any legal action with respect to Patent
        Infringement, including executing reasonably appropriate documents, cooperating in discovery and, if required by applicable law,
        joining as a party to the action at Sucampo’s cost. If Sucampo does not commence an action for Patent Infringement within
        one-hundred eighty (180) days after a notice from either Party, then CPP shall have the right to commence such action at its own
        cost. Any recoveries resulting from such any action relating to a claim of Patent Infringement, including pursuant to a settlement,
        shall be applied as follows: (i) first to reimburse each Party, on a pro rata basis, for such Party’s out-of-pocket costs
        and expenses in connection with such Patent Infringement proceeding; (ii) any damages, including exemplary damages for willful
        infringement, will be shared equally by the Parties under the terms for the sharing of Net Profits.

 

    	 	24	 

     

    

 

	Profit-Split	 	
        ·     Sucampo
would pay to CPP 50% of the Adjusted Net Profits generated by Sucampo from the sale of the Product.

        ·     Net
Profit would be defined as revenues received by Sucampo from the sale of the Product, less costs incurred by Sucampo (excluding
payments to CPP) in the development, manufacture, marketing, sale and distribution of the Product.

        ·     Adjusted
        Net Profits would be defined as 90% of Net Profits.

        ·     10%
of Net Profits would be distributed among CPP and Sucampo pro rata of the total development costs borne by such party in the development
of the Product until such costs have been recuperated, as follows: (i) for FAP, all development costs incurred by either party
following the execution of the Option Agreement; (ii) for Sucampo-Approved Indications, all development costs incurred by either
party following the date that CPP first provided Sucampo the development plan for such indication (with CPP Additional Indication
Expenses, if any, multiplied by 150% for purposes of such distribution); and (iii) for all other indications in the Field that
receive Regulatory Approval in the Territory, all development costs incurred at any time by either party, provided that any costs
incurred by CPP for developing such indications would be multiplied by 150% for purposes of such distribution. The License Agreement
will provide for a Sucampo Additional Indication Right equivalent to that set forth in Section 4.3 of the Option Agreement.

        ·     The
        profit-sharing terms would commence on a country-by-country basis starting with first commercial sale of the Product in such country
        and expire on the later of patent expiration in such country or 10 years from such first sale.

	Term and Termination	 	
        Term: The License Agreement would
        begin on the effective date and expire on a country-by-country basis on the date Sucampo no longer has an obligation to share profits
        with CPP in such country. Following such expiration, the License in such country will be fully paid up, irrevocable and perpetual.

         

        Termination for Material Breach:
        Each Party would have the right to terminate the License Agreement on thirty (30) days‘ written notice for uncured material
        breaches relating to payment obligations. The License Agreement will set forth termination provisions for other material breaches,
        and will provide for the tolling of termination in connection with a bona fide dispute.

         

        Sucampo Termination Right: Sucampo
        would have the right to terminate the License Agreement for any reason or no reason upon 180 days prior written notice prior to
        first commercial sale of the first Product in the Territory and 1 year thereafter.

         

        CPP Termination Right for Patent Challenge:
        The Agreement set forth reasonable provisions for termination in the event of a challenge by Sucampo to the validity or enforceability
        of a Licensed Patent, subject to the ability to cure or to assert a legal defense.

 

    	 	25	 

     

    

 

	Effects of Termination	 	
        The following sets forth general principles
        that will apply in the event of termination. The License Agreement will provide for a mechanism for a reasonable remuneration to
        Sucampo in the event of a Product reversion reflecting Sucampo’s payment, if any, of out-of-pocket costs for the development
        of the Products.

         

        Termination
        by Sucampo for Convenience:

        ·     The
license granted by CPP to Sucampo would terminate

        ·     All
of Sucampo’s right, title and interest in, to and under any Regulatory Filings and Regulatory Approvals for the Product
would be assigned to CPP.

        ·     Sucampo
would assign all manufacturing, distribution and supply agreements that are assignable to CPP.

         

        Termination by Sucampo for Material
        Breach:

        ·     Sucampo
would have the right to keep the license granted by CPP in effect, provided Sucampo continued to make the profit sharing payments
to CPP.

        ·     The
JSC would be terminated.

        ·     Sucampo
would have the right to sue CPP for damages due to such material breach.

         

        Termination by CPP for Material Breach:

        ·     The
license granted by CPP to Sucampo would terminate

        ·     All
of Sucampo’s right, title and interest in, to and under any Regulatory Filings and Regulatory Approvals for the Product
would be assigned to CPP.

        ·     Sucampo
would assign all manufacturing, distribution and supply agreements that are assignable to CPP

 

    	 	26	 

     

    

  

Schedule 1

 

Licensed Patents

 

 

	I. DFMO and Sulindac Combination in Cancer Chemoprevention
	ISSUED PATENTS	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	U.S.	 	6,258,845	 	07/10/2001	 	03/26/2019
	 
	II. Carcinoma Diagnosis and Treatment, Based on ODC1 Genotype – CAPP.P0006
	WIPO	 	WO 2010/132817	 	05/14/2010	 	 
	 	 	(based on U.S. 61/217,679	 	06/03/2009)	 	 
	 	 	(based on U.S. 61/217,682	 	06/03/2009)	 	 
	 	 	 	 	 	 	 
	ISSUED PATENTS	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	U.S.	 	8,329,636	 	12/11/2012	 	01/15/2031
	U.S.	 	9,121,852	 	09/01/2015	 	09/13/2030
	Europe	 	EP2430452	 	06/25/2014	 	05/14/2030
	Australia	 	AU2010248803	 	09/11/2014	 	05/14/2030
	China	 	CN 2010 8 0031983.5	 	09/05/2015	 	05/14/2030
	 	 	 	 	 	 	 
	ALLOWED APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	Hong Kong	 	12111787.0	 	05/14/2010	 	 
	 	 	(registration of CN 2010080031983.5)	 	 
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	Canada	 	2,761,946	 	05/14/2010	 	 
	Japan	 	JP2012-511052	 	05/14/2010	 	 
	Israel	 	IL0216369	 	05/14/2010	 	 
	U.S.	 	14/841,750	 	09/01/2015	 	 
	 	 	(continuation of U.S. 9,121,852)	 	 	 	 
	 	 	 	 	 	 	 
	III. Cancer Prevention and Treatment Methods Based
    on Dietary Polyamine Content – CAPP.P0007
	WIPO	 	WO 2011/143579	 	05/13/2011	 	 
	 	 	(based on U.S. 61/345,048	 	05/14/2010)	 	 
	 	 	 	 	 	 	 
	ISSUED PATENTS	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	U.S.	 	13/697,984	 	05/13/2011	 	 
	Europe	 	EP 2568978	 	05/13/2011	 	 
	Canada	 	2,799,431	 	05/13/2011	 	 
	Japan	 	JP2013-510342	 	05/13/2011	 	 
	 	 	 	 	 	 	 
	IV. Predictive Markers for Polyamine Inhibitor Cancer Therapies – CAPP.P0011
	WIPO	 	PCT/US2013/067305	 	10/29/2013	 	 
	 	 	(based on U.S. 61/719,748	 	10/29/2012)	 	 

 

    	 	27	 

     

    

 

	ISSUED PATENTS	 	 	 	 	 	 

	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	U.S.	 	14/438,999	 	10/29/2013	 	 
	Europe	 	EP 13786402	 	10/29/2013	 	 
	Canada	 	2,889,711	 	10/29/2013	 	 
	 	 	 	 	 	 	 
	V. Carcinoma Diagnosis and Treatment Based on ODC1 Genotype – CAPP.P0013
	ISSUED PATENTS	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	WIPO	 	PCT/US2014/042979	 	06/18/2014	 	 
	 	 	 	 	 	 	 
	VI. Neuroblastoma Treatment Based on ODC1 Genotype – CAPP.P0014
	ISSUED PATENTS	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	U.S. (provisional)	 	62/115,413	 	02/12/2015	 	 
	U.S. (provisional)	 	62/154,804	 	04/30/2015	 	 
	 	 	 	 	 	 	 
	VII. Eflornithine and Sulindac, Fixed Dose Combination Formulation – CAPP.P0017
	ISSUED PATENTS	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Expiration Date
	 	 	 	 	 	 	 
	PENDING APPLICATIONS	 	 	 	 	 	 
	Country	 	Patent Appln. No.	 	Filing Date	 	 
	U.S. (provisional)	 	62/248,810	 	10/30/2015	 	 

 

    	 	28Exhibit 10.32

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) between Jeffrey Jacob, an individual (the “Executive”), and Cancer Prevention Pharmaceuticals,
Inc. (“CPP”), a Delaware corporation, is effective as of January 1, 2016 (the “Effective Date”) and recites
and provides as follows:

 

WHEREAS, CPP desires
to continue to retain the services of Executive, and Executive desires to continue to be employed by CPP, all on the terms and
subject to the conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants herein contained, CPP and Executive agree as follows:

 

1.      
    EMPLOYMENT PERIOD. CPP hereby agrees to continue to employ Executive, and Executive hereby agrees to
continue to be employed by CPP, in accordance with the terms and provisions of this Agreement, for the period commencing on
the Effective Date and ending at midnight on December 31, 2018 (the “Employment Period”).

 

2.       
   TERMS OF EMPLOYMENT.

 

(A)         POSITION
AND DUTIES.

 

(i)          During
the Employment Period, Executive shall serve as the Chief Executive Officer of CPP, and perform such duties and functions commensurate
with such title as the Board of Directors of CPP (the “Board”), shall reasonably determine. Executive’s services
shall be performed principally at CPP’s headquarters in Tucson, Arizona. However, from time to time, Executive may also be
required by his job responsibilities to travel on CPP business, and Executive agrees to do so. Executive shall not be required
to relocate from the Tucson, Arizona area.

 

(ii)         During
the Employment Period, Executive agrees to devote his full-time attention to the business and affairs of CPP and/or its subsidiaries.
Executive’s employment under this Agreement shall be Executive’s exclusive employment during the Employment Period.
Unless otherwise approved by the Board, Executive may not engage, directly or indirectly, in any other business, investment, or
activity that interferes with Executive’s performance of Executive’s duties hereunder, is contrary to the interest
of CPP or any of its subsidiaries, or requires any significant portion of Executive’s business time. The foregoing notwithstanding,
the parties recognize and agree that Executive may engage in personal investments, other business activities, including serving
on the board of directors of Critical Path Institute, and civic, charitable or religious activities which do not conflict with
the business and affairs of CPP or interfere with Executive’s performance of his duties hereunder. Executive may not serve
on the board of directors of any entity other than CPP during the Employment Period without the written approval of the Board.
Executive shall be permitted to retain any compensation received for approved service on any unaffiliated corporation’s board
of directors.

 

    1 

     

    

 

(B)         COMPENSATION.

 

(i)          Base
Salary. During the Employment Period, Executive shall receive a base salary (“Base Salary”), which shall be paid
in equal installments on a biweekly basis, at the rate of Three Hundred Ten Thousand Dollars ($310,000) per annum, less payroll
deductions and withholdings required by law or otherwise permitted under this Agreement. This base salary will be reviewed at least
annually and may be increased (but not decreased) at the discretion of CPP’s Board or Compensation Committee.

 

(ii)         Bonus.
In addition to Executive’s Base Salary, Executive shall be eligible to earn an annual cash bonus with the target amount equal
to fifty percent (50%) of his Base Salary (“Annual Bonus”) in addition to a discretionary equity bonus, with the actual
amount of any such bonuses increased or decreased in the sole and absolute discretion of CPP’s Board or Compensation Committee.
Executive’s Annual Bonus eligibility will be reviewed on an annual or more frequent basis by CPP’s Board or Compensation
Committee. In addition, upon the occurrence of: (i) the listing of CPP’s securities on an exchange, and/or (ii) the
completion of patient enrollment in CPP’s Phase 3 clinical trial with its product candidate CPP-1X/sul for the treatment
of familial adenomatous polyposis, Executive shall be eligible to receive an additional cash and/or equity bonus in connection
with either or both of the events referred to in clauses (i) and (ii) above, with the payment and amounts of any such bonuses determined
in the sole and absolute discretion of CPP’s Board or Compensation Committee.

 

(iii)        Expenses.
During the Employment Period, Executive shall be entitled to receive reimbursement or seek direct payment to vendors for all employment-related
expenses incurred by Executive in accordance with the policies, practices and procedures of CPP as in effect generally from time
to time after the Effective Date with respect to executives of CPP.

 

(iv)        Paid
Time Off (PTO). During the Employment Period, Executive shall accrue paid time off for vacation, sick and personal days at
a rate of 30 days per year (with 30 days in total in 2016), subject to a maximum accrual in accordance with CPP’s policy
regarding such accrual in effect on the Effective Date with respect to other executives of CPP.

 

(v)         Other
Benefits. During the Employment Period, Executive shall be entitled to continue participation in CPP’s 401K plan, or
in the event such plan is terminated, a comparable ERISA-qualified benefit plan, as well as such health insurance, dental and other
benefits, as are provided generally to other executives at CPP, in accordance with the policies, programs and practices of CPP
which are in effect from time to time after the Effective Date.

 

    2 

     

    

 

3.      
    EARLY TERMINATION OF EMPLOYMENT.

 

(A)         DEATH
OR DISABILITY. Executive’s employment shall terminate automatically upon Executive’s death during the Employment Period.
In the event that Executive is disabled, as a result of mental or physical condition or illness, and as such cannot perform the
material functions of his job, even with reasonable accommodation, for a total of ninety (90) consecutive days or for a total of
six (6) months (whether or not such six (6) months is consecutive) during any twelve (12) consecutive month period, Executive’s
employment may be terminated by CPP upon CPP’s reasonable and good faith determination that Executive is so disabled (“Disability
Effective Date”). In the event that CPP intends to terminate the employment of Executive because of disability, CPP shall
give the Executive no less than thirty (30) days’ prior written notice of CPP’s intention to terminate Executive’s
employment. In the event that Executive denies that he is disabled from performing the material functions of his job, Executive
may, within sixty (60) days of the date of notice of CPP’s intention to terminate, request that his disability be determined
by an independent, licensed physician selected by CPP or its insurers and acceptable to Executive, with Executive’s acceptance
of the physician not to be unreasonably withheld. Promptly following such request by Executive, CPP shall arrange for an examination
of Executive and Executive shall cooperate fully in such examination. Executive shall remain employed under all the terms, provisions
and conditions of this Agreement, until the physician determines in writing whether Executive is disabled from performing the material
functions of his job. In the event that the physician determines that Executive is not disabled from performing the material functions
of his job, Executive shall continue with his employment under this Agreement. In the event that the physician determines that
Executive is disabled from performing the material functions of his job, Executive’s employment shall terminate seven (7)
days following such determination.

 

(B)         CAUSE.
CPP may terminate Executive’s employment during the Employment Period for Cause by giving written notice to Executive. For
purposes of this Agreement, “Cause” shall mean and be limited to (i) the conviction of Executive for committing a felony;
(ii) CPP’s good faith determination corroborated by independent evidence, or Executive’s admission, of Executive’s
performance of any act or his failure to act, for which if he were prosecuted and convicted, would amount to a felony involving
money or property of CPP or its subsidiaries, or which would constitute a felony in the jurisdiction where the act or failure to
act has occurred; (iii) CPP’s good faith determination corroborated by independent evidence, or Executive’s admission,
of the material failure, neglect, or refusal by Executive properly to discharge, perform or observe any or all of Executive’s
job duties, provided Executive has been given written notice of such failure, neglect or refusal, and has not cured such within
thirty (30) days thereafter; (iv) Executive’s material violation of any fiduciary duty or duty of loyalty owed to CPP; or
(v) the material breach of the Employee Intellectual Property, Confidentiality and Non-Compete Agreement.

 

(C)         GOOD
REASON. Executive may terminate his employment for Good Reason by giving written notice to CPP. For purposes of this Agreement,
“Good Reason” shall mean, in the absence of the consent of the Executive (it being agreed that consent to any of the
following is not deemed a consent to a similar or subsequent act by CPP), a reasonable determination by the Executive that any
of the following has occurred:

 

(i)          the
assignment to the Executive of any duties inconsistent in any material respect with the Executive’s position (including title
and reporting requirements, authority, duties or responsibilities as contemplated by Section 2(A) of this Agreement), or any other
action by CPP which results in a material diminution in such position, authority, duties or responsibilities excluding for this
purpose an isolated and insubstantial action not taken in bad faith and which is remedied by CPP within ten (10) days after receipt
of written notice thereof given by the Executive;

 

(ii)         following
a “Change of Control” (as hereinafter defined) or in the ninety (90) day period immediately preceding a Change in Control
CPP (a) reduces Executive’s Base Salary from Executive’s Base Salary immediately preceding the Change in Control or
(b) requires Executive to relocate from the Tucson, Arizona area; or

 

    3 

     

    

 

(iii)        any
failure by CPP to comply with any of the provisions of this Agreement applicable to CPP, provided CPP has been given written notice
of such failure, neglect or refusal, and has not cured such within thirty (30) days thereafter, other than any isolated and insubstantial
failure not occurring in bad faith and which is remedied promptly after written notice thereof from Executive.

 

(D)         TERMINATION FOR OTHER
REASONS. CPP may terminate the employment of Executive without Cause by giving written notice to Executive at least thirty (30)
days prior to the Date of Termination. Executive may resign from his employment without Good Reason hereunder by giving written
notice to CPP at least thirty (30) days prior to the Date of Termination.

 

(E)         NOTICE
OF TERMINATION. Any termination shall be communicated by Notice of Termination to the other party. For purposes of this Agreement,
a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of Executive’s employment under the provision so indicated, and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the termination date. The failure by Executive or CPP to set
forth in the Notice of Termination any fact or circumstance shall not waive any right of Executive or CPP hereunder or preclude
Executive or CPP from asserting such fact or circumstance in enforcing Executive’s or CPP’s rights hereunder.

 

(F)         DATE
OF TERMINATION. “Date of Termination” shall mean (i) if Executive’s employment is terminated by CPP for Cause,
or by Executive for Good Reason, (a) the date of delivery of written notice, if by personal delivery or overnight carrier, or (b)
three (3) calendar days after the date of mailing of written notice, if transmitted by first class mail; provided, however, if
a cure period applies, then the Date of Termination shall mean the expiration date of said cure period if the breach is not cured
and provided, further that any notice sent under clause (a) or (b) shall also be sent via e-mail at the same time as the notice
is delivered to the carrier or mailed; (ii) if Executive’s employment is terminated by reason of Executive’s death
or disability, the date of death, or the effective date of disability as provided herein above; or (iii) if Executive’s employment
is terminated by CPP other than for Cause, death, or Disability or by Executive other than for Good Reason, the Date of Termination
shall be the 30th day following the transmission of Notice of Termination as specified in (D) of this section.

 

4.          OBLIGATIONS
OF CPP UPON EARLY TERMINATION.

 

(A)         WITHOUT
CAUSE BY CPP OR FOR GOOD REASON BY EXECUTIVE. If, during the Employment Period, CPP shall terminate Executive’s employment
without Cause or Executive shall terminate employment for Good Reason:

 

(i)          CPP
shall pay to Executive, within thirty (30) days after the Date of Termination, any accrued base salary, PTO, expense reimbursement
and any other entitlements accrued by Executive under Section 2(B), to the extent not previously paid (the sum of the amounts described
in this subsection shall be hereinafter referred to as the “Accrued Obligations”).

 

    4 

     

    

 

(ii)         CPP
shall continue to pay to Executive, in regular bi-weekly installments Executive’s Base Salary under the Agreement for a period
of twelve (12) months after the Date of Termination (ignoring any decrease that forms the basis for Executive’s resignation
for Good Reason).

 

(iii)        CPP
shall continue to provide benefits to Executive at least equal to those which would have been provided to him in accordance with
Section 2(B)(v), for a twelve (12) month period commencing on the termination date (the “Welfare Benefit Continuation”).
Executive’s rights under CPP’s benefit plans of general application shall be determined under the provisions of those
plans. If Executive commences employment with another employer and is eligible to receive paid medical or other welfare benefits
under another employer-provided plan, similar to the medical and other welfare benefits to be provided by CPP as described herein,
then the medical and other welfare benefits provided by CPP shall terminate.

 

(iv)        In
addition to the items specified in Section 4(A)(i) to (iii), CPP may, in its discretion, negotiate other mutually agreeable severance
arrangements with Executive in accordance with Section 4(F) below.

 

(v)         The
payments to be made to Executive under Section 4(A)(ii) through (iv) above shall be contingent upon Executive executing a release
in the form attached hereto as Exhibit A or a substantially similar form (the “Release”), such form to include a commitment
from Executive to comply with his confidentiality obligations under the Employee Intellectual Property, Confidentiality and Non-Compete
Agreement he executed with CPP. No payments will be made prior to the effectiveness of the Release.

 

(vi)        In
the event of termination by reason of Executive’s death, all stock options and shares of restricted stock that are not vested
at the time of termination shall immediately vest and any such stock options shall be exercisable by Executive’s Beneficiary
(as such term is defined in CPP’s 2016 Equity Incentive Plan), for a period of twenty-four (24) months from the date
of Executive’s death.

 

(vii)       In
the event that (a) CPP shall terminate Executive’s employment without Cause, (b) Executive shall terminate employment for
Good Reason, or (c) Executive’s employment is terminated due to Disability, Executive shall have the greater of (y) twelve
(12) months from such Date of Termination and (z) the date set forth in the applicable stock option agreement(s) to exercise any
stock options that were previously granted to Executive and that have vested as of such Date of Termination and/or have vested
as a result of such termination.

 

(B)         DEATH.
If Executive’s employment is terminated by reason of Executive’s death during the Employment Period, this Agreement
shall terminate without further obligation to Executive’s legal representatives under this Agreement, other than (i) for
payment of Accrued Obligations (which shall be paid to Executive’s estate or beneficiary, as applicable, in a lump sum in
cash within sixty (60) days of the Date of Termination), and (ii) as set forth in Section 4(A)(vi).

 

    5 

     

    

 

(C)         CAUSE
BY CPP OR WITHOUT GOOD REASON. If Executive’s employment shall be terminated for Cause by CPP or Executive terminates his
employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations to Executive
other than the obligation to pay to Executive the Accrued Obligations and the amount of any compensation previously deferred by
Executive (exclusive of Executive’s 401K plan or other then-existing ERISA-qualified benefit plan, which shall be subject
to the terms of said plan and applicable law), in each case to the extent theretofore unpaid, all of which shall be paid in cash
within thirty (30) days of the Date of Termination.

 

(D)         DISABILITY.
If Executive’s employment shall be terminated by reason of Executive’s disability during the Employment Period, this
Agreement shall terminate without further obligation to Executive, other than for payment of Accrued Obligations and the timely
payment or provision of the Welfare Benefit Continuation. Accrued Obligations shall be paid to Executive in a lump sum in cash
within thirty (30) days of the Date of Termination. Executive shall be entitled after the Disability Effective Date to receive
disability and other benefits as in effect at the Disability Effective Date with respect to other executives of CPP and their families.
In addition, CPP shall continue to pay to Executive in regular biweekly installments, Executive’s base salary under the Agreement
for a period of six (6) months following termination.

 

(E)         WELFARE
BENEFIT CONTINUATION. In the event that CPP is obligated hereunder to pay Welfare Benefit Continuation to Executive following termination
of Executive’s employment, CPP may satisfy its obligation to pay the medical insurance component of the Welfare Benefit Continuation
by advancing COBRA payments for the benefit of Executive.

 

(F)         CONTINUED
EMPLOYMENT. In the event that CPP and the Executive elect to not enter into a new employment agreement upon the expiration of the
Employment Period, and the Executive does not remain in the employment of CPP as an employee at will or otherwise, if CPP and the
Executive mutually agree, CPP shall continue to pay to Executive, in regular bi-weekly installments, Executive’s Base Salary
and other benefits described in Section 2(B)(iv) and (v) under this Agreement for a period of time mutually agreed to by CPP and
the Executive.

 

5.        
  RIGHTS AND OBLIGATIONS UPON A CHANGE IN CONTROL

 

In the event that (A)
six (6) months or less prior to a “Change in Control” (as defined in this Section 5) of CPP during the Employment Period
(i) the Executive is terminated without Cause; or (ii) the Executive terminates his employment for Good Reason; or (B) following
a Change in Control of CPP during the Employment Period: (i) the Executive is terminated without Cause within one (1) year after
the occurrence of a Change of Control, or (ii) the Executive terminates his employment for Good Reason within one (1) year after
the occurrence of a Change of Control, then CPP (or CPP’s successor) shall pay the Executive an amount equal to: (i) all
Accrued Obligations; (ii) one and one-half (1.5) times the Executive’s Base Salary in effect immediately prior to his termination;
(iii) one and one-half (1.5) times the amount of bonus, if any, paid to the Executive for the fiscal year preceding the Change
in Control; and (iv) all deferred compensation. Such payment shall be made in a lump sum payable on the date which is thirty (30)
days after the Date of Termination. In addition, all stock options and shares of restricted stock that are not vested at the time
of such termination shall immediately vest and any such stock options shall be exercisable until the greater of: (a) twenty-four
(24) months from the date of such termination, or (b) the last date on which the option may be exercised as set forth in the Executive’s
respective option agreement(s). CPP shall also continue for such period to permit the Executive to receive or participate at CPP’s
expense in all fringe benefits available to him pursuant to Section 2 above for a period of two (2) years after the termination
of his employment; provided, however, in no event shall the amount paid to the Executive pursuant to this Section
5 exceed the maximum payment permitted by Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
or then applicable law, and to the extent any “excess parachute payment,” as that phrase is defined in Section 280G(b)
of the Code or then applicable law, would result from the provisions of this Section 5, then the amount the Executive would otherwise
receive shall be reduced so that no “excess parachute payment” is made by CPP or received by the Executive.

 

    6 

     

    

 

A “Change
in Control” of CPP shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall
have occurred:

 

(i)          any
Person (as defined below) is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of CPP (not including in the securities
Beneficially Owned by such Person any securities acquired directly from CPP) representing 50% or more of CPP’s then outstanding
securities; or

 

(ii)         the
following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals
who, on the date of this Agreement, constitute the Board and any new director (other than a director whose initial assumption of
office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating
to the election of directors of CPP) whose appointment or election by the Board or nomination for election by CPP’s stockholders
was approved or recommended by a vote of at least a two-thirds of the directors then still in office who either were directors
on the date of this Agreement or whose appointment, election or nomination for election was previously so approved or recommended;
or

 

(iii)        there
is consummated a merger or consolidation of CPP with any other corporation other than (A) a merger or consolidation which would
result in the voting securities of CPP outstanding immediately prior to such merger or consolidation continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50%
of the combined voting power of the voting securities of CPP or such surviving entity or any parent thereof outstanding immediately
after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of CPP (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of CPP (not including
in the securities Beneficially Owned by such Person any securities acquired directly from CPP) representing 50% or more of the
combined voting power of CPP’s then outstanding securities; or

 

(iv)        the
stockholders of CPP approve a plan of complete liquidation or dissolution of CPP or there is consummated an agreement for the sale
or disposition by CPP of all or substantially all of CPP’s assets, other than a sale or disposition by CPP of all or substantially
all of CPP’s assets to an entity at least 75% of the combined voting power of the voting securities of which are owned by
Persons in substantially the same proportions as their ownership of CPP immediately prior to such sale.

 

“Person”
shall have the meaning set forth in Section 3(a)(9) of the Exchange Act except that such term shall not include: (i) CPP; (ii)
a trustee or other fiduciary holding securities under an employee benefit plan of CPP; (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities; or (iv) a corporation owned, directly or indirectly, by the stockholders
of CPP in substantially the same proportions as their ownership of stock of CPP.

 

    7 

     

    

 

6.     
     CONFIDENTIAL INFORMATION.

 

Executive acknowledges
that the Employee Intellectual Property, Confidentiality and Non- Compete Agreement by and between Executive and CPP is, and shall
remain, in full force and effect.

 

7.      
    Dispute Resolution. Any dispute, controversy, or claim
arising out of or in connection with this Agreement will be settled by arbitration in the State of Arizona, pursuant to the
rules of the American Arbitration Association. Any award will be final, binding and conclusive upon the parties and a
judgment rendered thereon may be entered in any court having jurisdiction thereof. For the avoidance of doubt, the
arbitrator(s) in any arbitration may award any remedy available at law or equity, including the remedies of
specific performance and injunction. The prevailing party in any proceeding regarding a dispute, controversy or claim
is entitled to recover all of its costs and attorneys’ fees incurred in each proceeding, including any and all appeals
or petitions from any proceeding. The prevailing party will be determined by the deciding tribunal based on which party
succeeds in obtaining the relief, or in successfully obtaining or securing more of the relief it sought than that sought by
the opposing party(ies).

 

Insofar as the scope
of CPP’s business is expected to be international, and that CPP competes with its competitors on an international
level, any restrictions contained in this Agreement shall apply broadly. The geographic scope of the foregoing covenant is Canada,
Europe, Japan and the United States of America. If the arbitrator should determine the foregoing scope is too broad to be enforced,
then the geographic scope will be the broadest scope permissible in the following sequential order of geographic regions to arrive
at a geographic scope that a court of competent jurisdiction determines is reasonable in light of CPP’s circumstances
and competitive situation: (1) the United States of America; (2) Arizona, California, New York, New Jersey; and (3) Arizona.

 

8.      
    NO CONFLICTING OBLIGATIONS OF EXECUTIVE.

 

Executive represents
and warrants that he is not subject to any duties or restrictions under any prior agreement with any previous employer or other
person or entity, and that he has no rights or obligations which may conflict with the interests of CPP or with the performance
of Executive’s duties and obligations under this Agreement. Executive agrees to notify CPP immediately if any such conflicts
occur in the future.

 

9.      
    SUCCESSORS.

 

(A)         This
Agreement is personal to Executive and shall not be assignable by Executive.

 

(B)         This
Agreement shall inure to the benefit of CPP and its successors and assigns. CPP may assign this Agreement to any successor or affiliated
entity, subsidiary, sibling, or parent company, subject to any rights and obligations that may accrue in the event such assignment
triggers a Change in Control.

 

    8 

     

    

 

10.         MISCELLANEOUS

 

(A)         This
Agreement shall be governed by and construed in accordance with the laws of the State of Arizona, without reference to the principles
of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement, together with the Employee Intellectual Property, Confidentiality and Non- Compete Agreement by and between the parties,
contains the full and complete understanding between the parties hereto and supersedes all prior understandings, whether written
or oral pertaining to the subject matter hereof. This Agreement may not be amended or modified otherwise than by written agreement
executed by Executive and by the designated representative of the Board.

 

(B)         All
notices and other communications hereunder shall be in writing and shall be given by (i) hand delivery to the other party or (ii)
by registered or certified mail, return receipt requested, postage prepaid, to such address as either party shall have furnished
to the other in writing in accordance herewith, and additionally by e-mail to such e-mail address as either party shall have furnished
to the other in writing in accordance herewith. Notice may be given to CPP at its principal place of business or Executive at his
address and e-mail address set forth on the signature page hereto.

 

Notice to CPP
also must be given to:

 

Leslie Marlow, Esq.

Gracin & Marlow, LLP

The Chrysler
Building

405 Lexington
Avenue, 26th Floor

New York, New
York 10174

(212) 208-4657

 

(C)         The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

(D)         CPP
may withhold from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

 

(E)         The
failure of either party to insist upon strict compliance with any provision of this Agreement, or the failure to assert any right
either party may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right
of this Agreement.

 

[Signature page follows]

 

    9 

     

    

 

IN WITNESS WHEREOF,
Executive has hereunto set Executive’s hand and, pursuant to the authorization from its Board of Directors, CPP has caused
these presents to be executed in its name on its behalf, all as of the day and year first above written.

 

CANCER PREVENTION PHARMACEUTICALS,
INC.,

a Delaware Corporation

 

	By:	/s/ Richard Love	 	Date:	February 1, 2016
	 	 	 	 	 
	 	Name: Richard Love	 	 	 
	 	Its:  Compensation Committee Chairman	 	 	 

 

	EXECUTIVE	 	 	 
	 	 	 	 
	/s/ Jeffrey Jacob	 	Date:	February 1, 2016
	Jeffrey Jacob	 	 	 
	3080 N Webster Rd.	 	 	 
	Tucson, Arizona 85750	 	 	 
	 	 	 	 
	 	 	 	 
	(e-mail address)	 	 	 

 

    10 

     

    

 

EXHIBIT A

 

RELEASE AGREEMENT

(To be signed on or after the Separation
Date)

 

		1.	Consideration. I understand that my position with
Cancer Prevention Pharmaceuticals, Inc. (the “CPP”) terminated effective [        ] (the
“Separation Date”). CPP has agreed that if I timely sign, date and return this Release Agreement (“Release”),
and I do not revoke it, CPP will provide me with certain severance benefits pursuant to the terms and conditions of that certain
Employment Agreement between myself and CPP effective as of January 1, 2016 (the “Employment Agreement”),
and any agreements incorporated therein by reference. I understand that I am not entitled to such severance benefits unless I
timely sign this Release and allow it to become effective.

 

		2.	General Release. In exchange for the consideration
to be provided to me under the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely
release, acquit and forever discharge CPP and its subsidiary, and affiliated entities, and investors, along with its and their
predecessors and successors and their respective directors, officers, employees, shareholders, stockholders, partners, agents,
attorneys, insurers, affiliates and assigns, and CPP generally and completely releases, acquits and forever discharges me (collectively,
the “Released Parties”), of and from any and all claims, liabilities and obligations, both known and
unknown, that arise from or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including
the date that this Release is executed (collectively, the “Released Claims”). The Released Claims include,
but are not limited to: (a) all claims arising out of or in any way related to my employment with CPP, or the termination of that
employment; (b) all claims related to my compensation or benefits from CPP, including salary, bonuses, commissions, other incentive
compensation, vacation pay and the redemption thereof, expense reimbursements, fringe benefits, stock, stock options, or any other
ownership or equity interests in CPP; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant
of good faith and fair dealing; (d) all tort claims, including but not limited to claims for fraud, defamation, emotional distress,
and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including but not limited
to claims for discrimination, harassment, retaliation, attorneys’ fees, penalties, or other claims arising under the federal
Civil Rights Act of 1964 (as amended), the National Labor Relations Act, Age Discrimination in Employment Act of 1967 (29 U.S.C.
§§621, et seq.), Genetic Information Nondiscrimination Act of 2008 (“GINA”), Uniformed
Services Employment and Reemployment Rights Act (“USERRA”), the Employee Retirement Income Security
Act (“ERISA”), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age Discrimination
in Employment Act of 1967 (as amended) (the “ADEA”), the federal Family and Medical Leave Act (“FMLA”),
Arizona wage and hour laws (A.R.S. §23-101 et seq.), the Arizona Civil Rights Act, the Arizona Employment Protection
Act (A.R.S. §23-1501), and the Arizona Constructive Discharge Statute (A.R.S. §23-1502).

 

    11 

     

    

 

		3.	Excluded Claims. Notwithstanding the foregoing,
the following are not included in the Released Claims (the “Excluded Claims”): (a) any rights or claims
for indemnification I may have pursuant to any written indemnification agreement with CPP to which I am a party, the charter,
bylaws, or operating agreements of CPP, or under applicable law; (b) any rights that are not waivable as a matter of law; or (c)
any claims arising from the breach of the severance provision of the Employment Agreement. I acknowledge that nothing in this
Agreement prevents me from filing, cooperating with, or participating in any investigation or proceeding before the Equal Employment
Opportunity Commission, the Department of Labor, the Arizona Civil Rights Division of the Arizona Attorney General’s Office,
or the Arizona Industrial Commission, Labor Department, except that I hereby waive my right to any monetary benefits in connection
with any such claim, charge, investigation or proceeding. I hereby represent and warrant that, other than the Excluded Claims,
I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.

 

		4.	ADEA Waiver. I acknowledge that I am knowingly
and voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge
that the consideration given for the ADEA Waiver is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my ADEA Waiver does not apply to any
rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release;
(c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily sign it sooner); (d) I have seven
(7) days following the date I sign this Release to revoke the ADEA Waiver; and (e) the ADEA Waiver will not be effective until
the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release.

 

		5.	Release of Unknown Claims. In granting the release
herein, which includes claims that may be unknown to you at present, you acknowledge that you expressly waive and relinquish any
and all rights and benefits under any applicable law or statute providing, in substance, that a general release does not extend
to claims which a party does not know or suspect to exist in his or her favor at the time of executing the release, which if known
by him or her would have materially affected the terms of such release.

 

		6.	Other Agreements and Representations. I further
agree: (a) not to voluntarily (except in response to legal compulsion, which includes without limitation subpoena or response
to governmental agency inquiry) assist any third party in bringing or pursuing any proposed or pending litigation, arbitration,
administrative claim or other formal proceeding against CPP, its parent or subsidiary entities, investors, affiliates, officers,
directors, employees or agents; (b) to cooperate fully with CPP, by voluntarily (without legal compulsion) providing accurate
and complete information, in connection with CPP’s actual or contemplated defense, prosecution, or investigation of any
claims or demands by or against third parties, or other matters, arising from events, acts, or failures to act that occurred during
the period of my employment by CPP; and (c) I hereby acknowledge and reaffirm my continuing obligations under the terms
of my Employee Intellectual Property, Confidentiality and Non- Compete Agreement that I executed with CPP). In addition, I hereby
represent that I have received all the leave and leave benefits and protections for which I am eligible, pursuant to FMLA or any
applicable law or policy of CPP, and I have not suffered any on-the-job injury for which I have not already filed a workers’
compensation claim.

 

    12 

     

    

 

This Release, together
with the Confidential Information Agreement, constitutes the complete, final and exclusive embodiment of the entire agreement between
CPP and me with regard to the subject matter hereof. I am not relying on any promise or representation by CPP that is not expressly
stated herein. This Release may only be modified by a writing signed by both me and a duly authorized officer of CPP.

 

CANCER PREVENTION PHARMACEUTICALS, INC.

 

	Signed:	 
	 	 
	Print Name:	 
	 	 
	Date:	 
	 	 
	UNDERSTOOD AND AGREED:
	 	 
	Signed:	 
	 	 
	Print Name: 	 
	 	 
	Date:	 

 

    13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]