Document:

Exhibit 10.11

 

 

 

 

CANCER PREVENTION PHARMACEUTICALS,
INC.

 

SERIES A-2 PREFERRED STOCK PURCHASE
AGREEMENT

 

September __, 2012

 

     

     

    

 

CANCER PREVENTION PHARMACEUTICALS,
INC.

 

SERIES A-2 PREFERRED STOCK PURCHASE
AGREEMENT

 

This Series A-2 Preferred
Stock Purchase Agreement (this “Agreement”) dated as of September __, 2012 is between Cancer Prevention
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the persons (each, an “Investor”
and collectively, the “Investors”) listed on the Schedule of Investors attached as Exhibit A (the “Schedule
of Investors”).

 

WHEREAS, the
Company proposes to sell shares (“Financing”) of its Series A-2 Convertible Preferred Stock, par value
$0.001 per share (“Series A-2 Preferred”) to the Investors in accordance
with the terms of this Agreement.

 

WHEREAS, the Investors are desirous of purchasing
the Series A-2 Preferred.

 

SECTION 1

Authorization,
Sale and Issuance

 

1.1          Authorization.
The Company will, before the Initial Closing (as defined below), authorize (a) the sale and issuance of up to 5,000,000
shares (the “Shares”) of the Series A-2 Preferred, having the rights, privileges, preferences and
restrictions set forth in the Amended and Restated Certificate of Incorporation of the Company, as amended, in substantially the
form attached hereto as Exhibit B (the “Amended Certificate”) and (b) the reservation of shares of Common
Stock for issuance upon conversion of the Shares (the “Conversion Shares”).

 

1.2          Sale
and Issuance of Shares. Subject to the terms and conditions of this Agreement, each Investor agrees, severally and not jointly,
to purchase, and the Company agrees to sell and issue to such Investor, the number of Shares set forth in the column designated
“Number of Series A-2 Shares” opposite such Investor’s name on the Schedule of Investors at a purchase price
of $1.00 per share (the “Purchase Price”). The Company’s agreement with each Investor is a separate
agreement, and the sale and issuance of the Shares to each Investor is a separate sale and issuance.

 

SECTION 2

CLOSING DATES AND DELIVERY

 

2.1          Closing.
The purchase, sale and issuance of the Shares shall take place at one or more closings (each of which is referred to in this
Agreement as a “Closing”).

 

If less than all of the
Shares are sold and issued at the initial Closing (“Initial Closing”) then, subject to the terms and
conditions of this Agreement, the Company may sell and issue at one or more subsequent closings (each, a “Subsequent
Closing”), up to the balance of the unissued Shares to such persons or entities as may be approved by the Company.
At the Initial Closing, the Investors, the Company and all other required parties will execute joinder agreements and become parties
to the Investors’ Rights Agreement in substantially the form of Exhibit C, (the “Rights Agreement”)
the Voting Agreement in substantially the form of Exhibit D (the “Voting Agreement”) and the Right of
First Refusal and Co-Sale Agreement in substantially the form of Exhibit E (the “ROFR” and together with
this Agreement, the Voting Agreement and the Rights Agreement the “Related Agreements”).

 

     

     

    

 

Any such sale and issuance
in a Subsequent Closing shall be on the same terms and conditions as those contained herein, and such persons or entities shall,
upon execution and delivery of the relevant signature pages, become parties to, and be bound by this Agreement and each of the
Related Agreements, without the need for an amendment to this Agreement except to add such person’s or entity’s name
to the Schedule of Investors and the Related Agreements, and shall have the rights and obligations hereunder, in each case as of
the date of the applicable Subsequent Closing. Each Subsequent Closing shall take place at such date, time and place as shall be
approved by the Company in its sole discretion and the Investors representing a majority of the Shares to be sold in such Subsequent
Closing.

 

Reference herein to
a “Closing” shall refer to the Initial Closing and each Subsequent Closing.

 

Immediately after each
Closing, the Schedule of Investors will be amended to list the Investors purchasing Shares hereunder and the number of Shares issued
to each Investor hereunder at each such Closing. The Company will furnish to each Investor copies of the amendments to the Schedule
of Investors referred to in the preceding sentence.

 

2.2           Delivery.
At each Closing, the Company will deliver to each Investor in such Closing a certificate registered in such Investor’s
name representing the number of Shares that such Investor is purchasing in such Closing against payment of the Purchase Price therefor
as set forth in the column designated “Purchase Price” opposite such Investor’s name on the Schedule of Investors,
by (a) check payable to the Company or (b) wire transfer in accordance with the Company’s instructions and counterpart
signatures of this Agreement.

 

SECTION 3

Representations and Warranties of the Company

 

The Company hereby
represents and warrants to the Investors as follows:

 

3.1           Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company has the requisite corporate power and authority to own and operate its properties and
assets, to carry on its business as presently conducted, to execute and deliver this Agreement, to issue and sell the Shares and
the Conversion Shares and to perform its obligations under this Agreement and the Amended Certificate. The Company is presently
qualified to do business as a foreign corporation in each jurisdiction where the failure to be so qualified could reasonably be
expected to have a material adverse effect on the Company’s financial condition or business as now conducted or as presently
proposed to be conducted (a “Material Adverse Effect”).

 

3.2           Subsidiaries.
The Company has no subsidiaries.

 

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3.3          Capitalization.

 

(a)          Immediately
before the Initial Closing, the authorized capital stock of the Company will consist of 35,000,000 shares of Common Stock, of which
12,514,677 are issued and outstanding and 15,000,000 shares of Preferred Stock, of which 7,300,000 shares are designated as Series
A-1 Convertible Preferred Stock (“Series A-1 Preferred”) 5,568,717 of which are outstanding and 5,000,000
shares are designated as Series A-2 Preferred (together with Series A-1 Preferred “Series A Preferred”)
none of which are outstanding. The Common Stock and Series A Preferred shall have the rights, preferences, privileges and restrictions
set forth in the Amended Certificate.

 

(b)          The
outstanding shares of Common Stock have been duly authorized and validly issued in compliance with applicable laws, and are fully
paid and nonassessable. The Company has a right of first refusal over transfers of all outstanding shares of Common Stock and the
Company has not waived any rights of first refusal with respect thereto or allowed any to lapse.

 

(c)          The
Company has reserved:

 

(i)          the
Shares for issuance under this Agreement;

 

(ii)         a
sufficient number of shares of Common Stock (as may be adjusted in accordance with the provisions of the Amended Certificate)
for issuance upon conversion of the Shares and warrants;

 

(d)          The
rights, preferences, privileges and restrictions of the Shares are as stated in the Amended Certificate.

 

(e)          The
Shares, when issued and delivered and paid for in compliance with the provisions of this Agreement, will be validly issued, fully
paid and nonassessable. The Conversion Shares have been duly and validly reserved and, when issued in compliance with the provisions
of this Agreement, the Amended Certificate and applicable law, will be validly issued, fully paid and nonassessable. The Shares
and the Conversion Shares will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed
upon the Investors; provided, however, that the Shares and the Conversion Shares are subject to restrictions on transfer
under U.S. state and/or federal securities laws.

 

(f)          In
addition to the conversion privileges of the Shares, there (i) is an equity incentive plan for 3,525,262 shares of Common Stock,
(ii) are warrants to purchase a total of 1,531,215 shares of Series A-1 Preferred, and (iii) is a warrant issued to the University
of Arizona to purchase 623,936 shares of Common Stock.

 

3.4          Authorization. 
All corporate action on the part of the Company and its directors, officers and stockholders necessary for the authorization,
execution and delivery of this Agreement by the Company, the reservation, authorization, sale, issuance and delivery of the Shares
and the Conversion Shares, and the performance of all of the Company’s obligations under this Agreement and the Amended Certificate
has been taken or will be taken before the Initial Closing. This Agreement, when executed and delivered by the Company, shall constitute
a valid and legally binding obligation of the Company, enforceable in accordance with their terms, except (i) as limited by
laws of general application relating to bankruptcy, insolvency and the relief of debtors, (ii) as limited by rules of law
governing specific performance, injunctive relief or other equitable remedies and by general principles of equity, and (iii) as
the indemnification provisions contained in the Rights Agreement may further be limited by applicable laws and principles of public
policy.

 

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3.5          Financial
Statements.  The Company has delivered to the Investor the draft unaudited balance sheet and statement of operations of
the Company as of and for the period from inception through June 30, 2012 (the “Financial Statements”).
The Financial Statements are not audited but are believed to be correct in all material respects and present fairly the financial
condition and operating results of the Company as of the date(s) and during the period(s) indicated therein. Except as set forth
in the Financial Statements, there are no material liabilities, contingent or otherwise, or any contractual obligation, which in
either case are not incurred in the ordinary course of business, that are material to the financial condition or operating results
of the Company.

 

3.6          Changes. 
Since June 30, 2012 there has not been:

 

(a)          any
change in the assets, liabilities, financial condition, operating results or business prospects of the Company from that reflected
in the Financial Statements, except changes in the ordinary course of business, that has had or is reasonably likely to have a
Material Adverse Effect;

 

(b)          any
damage, destruction or loss, whether or not covered by insurance, that has had or is reasonably likely to have a Material Adverse
Effect;

 

(c)          any
waiver or compromise by the Company of a valuable right or of a material debt owed to it;

 

(d)          any
material change or amendment to an agreement by which the Company or any of its assets or properties is bound or subject that has
had or is reasonably likely to have a Material Adverse Effect;

 

(e)          any
loans made by the Company to or for the benefit of its employees, officers or directors, or any members of their immediate families,
other than travel advances and other advances made in the ordinary course of its business;

 

(f)          any
resignation or termination of any executive officer or key employee of the Company, and the Company is not aware of any impending
resignation or termination of employment of any such officer or key employee;

 

(g)          any
material change in any compensation arrangement or agreement with any employee, director or stockholder;

(h)          any
sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other intangible assets;

 

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(i)          any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and that is not material to the business, properties, prospects or financial condition of the Company;

 

(j)          any
declaration, setting aside or payment or other distribution for any of the Company’s capital stock, or any direct or indirect
redemption, purchase or other acquisition of any of such stock by the Company;

 

(k)          any
mortgage, pledge, transfer of a security interest in, or lien, created by the Company, for any of its material properties or assets,
except liens for taxes not yet due or payable;

 

(l)          any
receipt of notice that there has been a loss of, or material order cancellation by, any major customer of the Company;

 

(m)          to
its knowledge, any other event or condition of any character that has had or is reasonably likely to have a Material Adverse Effect;

 

(n)          any
agreement or commitment by the Company to do any of the things described in this Section 3.6; or

 

(o)          any
employment contract entered into by the Company not terminable at will.

 

3.7          Agreements;
Actions.  

 

(a)          There
are no agreements, understandings or proposed transactions between the Company and any of its officers, directors, affiliates,
or any affiliate thereof.

 

(b)          There
are no agreements, understandings, instruments, contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company is a party or by which it is bound that may involve (i) obligations (contingent or otherwise) of, or payments
by the Company in excess of, $50,000 other than in the ordinary course of the Company’s business, or (ii) the license
of any patent, copyright, trade secret or other proprietary right to or from the Company, or (iii) the granting of any rights
affecting the development, manufacture, licensing, marketing, sale or distribution of the Company’s products or services
or (iv) indemnification by the Company for infringements of proprietary rights.

 

(c)          The
Company has not declared or paid any dividends or authorized or made any distribution upon any class or series of its capital stock,

 

(d)          The
Company has not entered into any letter of intent, memorandum of understanding or other similar document in the past three months
(i) with any representative of any corporation or corporations regarding the merger of the Company with or into any such corporation
or corporations, (ii) with any representative of any corporation, partnership, association or other business entity or any
individual regarding the sale, conveyance or disposition of all or substantially all of the assets of the Company or a transaction
or series of related transactions in which more than fifty percent (50%) of the voting power of the Company would be disposed of,
or (iii) regarding any other form of liquidation, dissolution or winding up of the Company.

 

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3.8          Intellectual
Property. 

 

(a)          Ownership.
The Company owns or possesses or can obtain on commercially reasonable terms sufficient legal rights to all patents, trademarks,
service marks, trade names, copyrights, trade secrets, (including without limitation, any source code), licenses (software or
otherwise), information, processes and similar proprietary rights (“Intellectual Property”) necessary
to the business of the Company as presently conducted and proposed to be conducted, the lack of which could reasonably be expected
to have a Material Adverse Effect. Except for agreements with its own employees or consultants, standard end-user license agreements,
support/maintenance agreements and agreements entered in the ordinary course of the Company’s business, there are no outstanding
options, licenses or agreements relating to the Company’s Intellectual Property, and the Company is not bound by or a party
to any options, licenses or agreements regarding the Intellectual Property of any other person or entity and the Company has not
granted rights to manufacture, produce, assemble, license, market or sell its products to any other person or entity and is not
bound by any agreement that affects the Company’s rights to develop, manufacture, assemble, distribute, market or sell its
products, To the best of the Company’s knowledge, the Company has not violated or infringed, and is currently not violating
or infringing, any Intellectual Property of any other person or entity. The Company has not received any written communication
alleging that the Company has violated or, by conducting its business as currently conducted or as presently proposed to be conducted,
would violate any Intellectual Property of any other person or entity, nor is the Company aware of any basis therefor. The Company
is not obligated to make any payments by way of royalties, fees or otherwise to any owner or licensor of or claimant to any Intellectual
Property regarding the use thereof for the conduct of its business as presently conducted or proposed to be conducted. There are
no agreements, understandings, instruments, contracts, judgments, orders or decrees to which the Company is a party or by which
it is bound which involve indemnification by the Company for infringements of Intellectual Property.

 

(b)          No
Breach by Employees. The Company is not aware that any of its employees is obligated under any contract or other
agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with
the use of his or her efforts to promote the interests of the Company or that would conflict with the Company’s business
as presently conducted. Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business
by the employees of the Company, nor the conduct of the Company’s business as presently conducted, will, to the Company’s
knowledge, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract,
covenant or instrument under which any of such employees is now obligated. The Company does not believe it is or will be necessary
to use any inventions of any of its employees made before their employment by the Company.

 

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3.9          Title
to Properties and Assets; Liens.  The Company has good and marketable title to its properties and assets, and has good
title to all its leasehold interests, in each case subject to no material mortgage, pledge, lien, lease, encumbrance or charge,
other than (i) liens for current taxes not yet due and payable, (ii) liens imposed by law and incurred in the ordinary
course of business for obligations not past due, (iii) liens for pledges or deposits under workers’ compensation laws
or similar legislation, and (iv) liens, encumbrances and defects in title which do not in any case materially detract from
the value of the property subject thereto or have a Material Adverse Effect, and which have not arisen otherwise than in the ordinary
course of business. For the property and assets it leases, the Company is in compliance with such leases in all material respects
and holds a valid leasehold interest free of any liens, claims or encumbrances, subject to clauses (i)-(iv) above. All facilities,
machinery, equipment, fixtures, vehicles and other properties owned, leased or used by the Company are in good operating condition
and repair and are reasonably fit and usable for the purposes for which they are being used.

 

3.10        Compliance
with Other Instruments.

 

(a)          The
Company is not in violation of any term of its Amended Certificate or Bylaws. To the best of the Company’s knowledge, it
is not in violation in any material respect of any term or provision of any material mortgage, indebtedness, indenture, contract,
agreement, instrument, judgment, order or decree to which it is party or by which it is bound which would have a Material Adverse
Effect. To the best of the Company’s knowledge, the Company is not in violation of any federal or state statute, rule or
regulation applicable to the Company the violation of which would have a Material Adverse Effect. The execution and delivery of
this Agreement by the Company, the performance by the Company of its obligations under this Agreement, and the issuance of the
Shares, and the Conversion Shares, will not result in any violation of, or conflict with, or constitute a default under, the Amended
Certificate or Bylaws, or any of its agreements with or without the passage of time or the giving of notice, nor result in the
creation of any material mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of the Company with
or without the passage of time or the giving of notice, nor, to the best of the Company’s knowledge, result in the suspension,
revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to the Company, its
business or operations or any of its assets or properties.

 

(b)          The
Company has avoided every condition, and has not performed any act, the occurrence of which would result in the Company’s
loss of any material right granted under any license, distribution agreement or other agreement.

 

3.11        Litigation.
There are no actions, suits, proceedings or investigations pending before any court or governmental agency against the Company
or its properties (nor has the Company received written notice of any threat thereof or have knowledge of any threat thereof) or
against any officer, director or employee of the Company in connection with their relation with, or service on behalf of, the Company.
The Company is not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality and no officer, employee or consultant of the Company is a party or subject thereto such as would materially
affect the Company’s business or operation, conflict with the Company’s interests, or materially interfere with the
employee’s ability to perform his or her duties to the Company. There is no action, suit or proceeding initiated by the Company
currently pending or which the Company currently intends to initiate.

 

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3.12         Governmental
Consent.  No consent, approval or authorization of or designation, declaration or filing with any governmental authority
on the part of the Company is required for the valid execution and delivery of this Agreement, or the offer, sale or issuance of
the Shares and the Conversion Shares, or the consummation of any other transaction contemplated by this Agreement, except (i) the
filing of such notices as may be required under the Securities Act of 1933, as amended (the “Securities Act”)
and (ii) such filings as may be required under applicable state securities laws, which will be timely filed within the applicable
periods therefor.

 

3.13         Permits.
The Company has all franchises, permits, licenses, and any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which would have a Material Adverse Effect, and believes it can obtain, without undue burden or expense,
any similar authority for the conduct of its business as presently planned to be conducted. The Company is not in default in any
material respect under any of such franchises, permits, licenses or other similar authority.

 

3.14         Brokers
or Finders.  The Company may incur brokerage or finders’ fees or agents’ commissions or similar charges for
the offering of Series A-2 Preferred.

 

3.15         Obligations
to Related Parties. No employee, officer, director or, to the Company’s knowledge, stockholder of the Company or member
of his or her immediate family is indebted to the Company, nor is the Company indebted (or committed to make loans or extend or
guarantee credit) to any of them other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable
expenses incurred on behalf of the Company and (iii) for other standard employee benefits made generally available to all
employees (including stock option agreements outstanding under any stock option plan approved by the Company’s Board and
stock purchase agreements approved by the Board). To the Company’s knowledge, none of such persons has any direct or indirect
ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a business relationship,
or any firm or corporation that competes with the Company, except for the ownership of stock in publicly-traded companies. To the
Company’s knowledge, no employee, officer, director or stockholder, nor any member of their immediate families, is, directly
or indirectly, interested in any material contract with the Company (other than such contracts as relate to any such person’s
ownership of capital stock or other securities of the Company).

 

SECTION 4

Representations and Warranties of the Investors

 

Each Investor hereby
represents and warrants to the Company as follows:

 

4.1           No
Registration.  The Investor understands that the Shares and the Conversion Shares, have not been, and will not be, registered
under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability
of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Investor’s
representations as expressed herein or otherwise made pursuant hereto.

 

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4.2           Investment
Intent.  The Investor is acquiring the Shares and the Conversion Shares, for investment for its own account, not as a
nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, and the Investor has no
present intention of selling, granting any participation in, or otherwise distributing the same. The Investor does not have any
contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person
or entity or to any third person or entity regarding any of the Shares or the Conversion Shares.

 

4.3           Investment
Experience.  The Investor, or its purchaser representative, within the meaning of Regulation D, Rule 501(h), promulgated
by the Securities and Exchange Commission (its “Purchaser Representative”), has substantial experience
in evaluating and investing in private placement transactions of securities in companies similar to the Company and acknowledges
that the Investor or its Purchaser Representative can protect its own interests. The Investor or its Purchaser Representative has
such knowledge and experience in financial and business matters so that the Investor or its Purchaser Representative is capable
of evaluating the merits and risks of its investment in the Company.

 

4.4           Speculative
Nature of Investment.  The Investor understands and acknowledges that the Company has a limited financial and operating
history and that an investment in the Company is highly speculative and involves substantial risks including those risks described
in Exhibit F attached hereto. The Investor can bear the economic risk of the Investor’s investment and is able, without impairing
the Investor’s financial condition, to hold the Shares and the Conversion Shares for an indefinite period of time and to
suffer a complete loss of the Investor’s investment.

 

4.5           Access
to Data.  The Investor has had an opportunity to ask questions of, and receive answers from, the officers of the Company
concerning this Agreement, the exhibits and schedules attached hereto and thereto and the transactions contemplated by this Agreement,
as well as the Company’s business, management and financial condition and affairs, which questions were answered to its satisfaction.
The Investor believes that it has received all the information the Investor considers necessary or appropriate for deciding whether
to purchase the Shares and the Conversion Shares. The Investor understands that such discussions, as well as any information issued
by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily
a thorough or exhaustive description. The Investor acknowledges that any business plans prepared by the Company have been, and
continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative
in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary
significantly from actual results. The Investor also acknowledges that it is relying solely on its own counsel and not on any statements
or representations of the Company or its agents for legal advice regarding this investment or the transactions contemplated by
this Agreement. The foregoing does not limit or modify the representations and warranties made by the Company in Section 3 of this
Agreement or the right of the Investors to rely on them.

 

4.6           Accredited
Investor.  The Investor is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated
by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such
status as may be reasonably requested by the Company; except that, if Investor is a natural person, the net value of Investor’s
primary residence has been excluded in calculating Investor’s “net worth” for purposes of Regulation D Rule 501(a)(5).

 

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4.7          Residency. 
The residency of the Investor (or, in the case of a partnership or corporation, such entity’s principal place of business)
is correctly set forth on the Schedule of Investors.

 

4.8          No
Public Market.  The Investor understands and acknowledges that no public market now exists for any of the securities issued
by the Company and that the Company has made no assurances that a public market will ever exist for the Company’s securities.

 

4.9          Authorization. 

 

(a)          The
Investor has all requisite power and authority to execute and deliver this Agreement, to purchase the Shares hereunder and to carry
out and perform its obligations under the terms of this Agreement. All action on the part of the Investor necessary for the authorization,
execution, delivery and performance of this Agreement, and the performance of all of the Investor’s obligations under this
Agreement, has been taken or will be taken before the Closing.

 

(b)          This
Agreement, when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor,
enforceable in accordance with their terms except as limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity.

 

(c)          No
consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or
third person is required to be obtained by the Investor for the execution and delivery of this Agreement by the Investor or the
performance of the Investor’s obligations hereunder or thereunder.

 

4.10        Brokers
or Finders.  The Investor has not engaged any brokers, finders or agents.

 

4.11        Tax
Advisors and Tax Consequences.  The Investor has reviewed with his or her own tax advisors the U.S. federal, state, local
and foreign tax consequences of this investment and the transactions contemplated by this Agreement. For such matters, the Investor
relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral.
The Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result
of this investment. Investor acknowledges and understands that he will incur ordinary income in the amount of the interest on the
Note that is being converted into Shares.

 

4.12        Legends. 
The Investor understands and agrees that the certificates evidencing the Shares or the Conversion Shares, or any other securities
issued for the Shares or the Conversion Shares upon any stock split, stock dividend, recapitalization, merger, consolidation or
similar event, shall bear the following legend (in addition to any legend required under applicable state securities laws):

 

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“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR
APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

SECTION 5

Miscellaneous

 

5.1          Amendment. 
Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument referencing this Agreement and signed by the Company and the Investors holding a majority of
the Common Stock issued or issuable upon conversion of the Shares issued under this Agreement provided, however, that Investors
purchasing shares in a Closing after the Initial Closing may become parties to this Agreement in accordance with Section 2.1
without any amendment of this Agreement pursuant to this paragraph or any consent or approval of any other Investor; and provided,
further, that if any amendment, waiver, discharge or termination operates in a manner that treats any Investor different from
other Investors, the consent of such Investor shall also be required for such amendment, waiver, discharge or termination. Any
such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each holder of
any securities purchased under this Agreement at the time outstanding (including securities into which such securities have been
converted or exchanged or for which such securities have been exercised) and each future holder of all such securities. Each Investor
acknowledges that by the operation of this paragraph, the holders of a majority of the Common Stock issued or issuable upon conversion
of the Shares issued under this Agreement (excluding any of such shares that have been sold to the public or under Rule 144) will
have the right and power to diminish or eliminate all rights of such Investor under this Agreement.

 

5.2          Notices. 
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered
or certified mail, postage prepaid, sent by facsimile or electronic mail (if to an Investor or any other holder of Company securities)
or otherwise delivered by hand, messenger or courier service addressed:

 

(a)          if
to an Investor, to the Investor’s address, facsimile number or electronic mail address as shown in the Company’s records,
as may be updated in accordance with the provisions hereof;

 

    -11-

     

    

 

(b)          if
to any other holder of any Shares or Conversion Shares, to such address, facsimile number or electronic mail address as shown in
the Company’s records, or, until any such holder so furnishes an address, facsimile number or electronic mail address to
the Company, then to the address, facsimile number or electronic mail address of the last holder of such Shares or Conversion Shares
for which the Company has contact information in its records; or

 

(c)          if
to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 1760 E. River Road,
Suite 250, Tucson, AZ 85718, or at such other current address as the Company shall have furnished to the Investors, with a copy
(which shall not constitute notice) to Hecker & Muehlebach PLLC, 405 W. Franklin, Tucson, Arizona, 85701-8209, attention Lawrence
Hecker.

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered
by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail,
at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit
of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile
transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address,
if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the
recipient’s next business day. For any conflict between the Company’s books and records and this Agreement or any notice
delivered hereunder, the Company’s books and records will control absent fraud or error.

 

5.3          Governing
Law. This Agreement shall be governed by the internal laws of Delaware.

 

5.4          Expenses.
The Company and the Investors shall each pay their own expenses for the transactions contemplated by this Agreement.

 

5.5          Survival.
The representations, warranties, covenants and agreements made in this Agreement shall survive any investigation made by any
party hereto and the closing of the transactions contemplated hereby.

 

5.6          Successors
and Assigns. This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred,
delegated or sublicensed by any Investor without the prior written consent of the Company. Any attempt by an Investor without such
permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall
be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

 

5.7          Entire
Agreement. This Agreement, including the exhibits attached hereto, constitute the full and entire understanding and agreement
between the parties regarding the subjects hereof and thereof. No party shall be liable or bound to any other party in any manner
regarding the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein
or therein.

 

    -12-

     

    

 

5.8           Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to
any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power
or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only if specifically set forth
in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall
be cumulative and not alternative.

 

5.9           Severability. 
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, if necessary, shall be severed from this Agreement, and such
court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that
will achieve, as possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The
balance of this Agreement shall be enforceable in accordance with its terms.

 

5.10         Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one instrument.

 

5.11         Telecopy
Execution and Delivery. A facsimile, telecopy, digital, electronic or other reproduction of this Agreement may be executed
by one or more parties hereto and delivered by such party by email, facsimile or any similar electronic transmission device pursuant
to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding
and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original
of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

 

5.12         Jurisdiction;
Venue. For any disputes arising out of or related to this Agreement, the parties consent to the exclusive jurisdiction of,
and venue in, the state courts in Pima County, Arizona.

 

5.13         Further
Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company,
partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may
be necessary to more fully effectuate this Agreement.

 

    -13-

     

    

 

5.14         Attorney’s
Fees. If any suit or action is instituted to enforce any provisions in this Agreement, the prevailing party in such dispute
shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and accountants, which shall
include, without limitation, all fees, costs and expenses of appeals.

 

5.15         Jury
Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

(signature page follows)

 

    -14-

     

    

 

Signature Page to Cancer
Prevention Pharmaceuticals, Inc.

Series A-2 Stock Purchase
Agreement

 

IN WITNESS WHEREOF,
the parties hereto have executed this Series A-2 Preferred Stock Purchase Agreement as of the date first above written.

 

	 	COMPANY
	 	 
	 	CANCER PREVENTION
	 	PHARMACEUTICALS, LLC
	 	 
	 	By:	                                    
	 	 	Jeffrey Jacob, CEO
	 	 	 
	 	INVESTOR
	 	 	 
	 	 
	 	[Print Name]
	 	 
	 	By:  	     
	 	 	 
	 	Name:  	   
	 	 	 
	 	Title:  	 

 

	 	Purchase Price of Shares	$________________

 

	 	Number of Shares Purchased: 	 

 

    -15-

     

    

 

Exhibit A

 

SCHEDULE OF INVESTORS

 

	
        Name and Address
	
	
        Purchase

        Price of

        Shares to be

        Purchased
	
	
        Shares of Series A-2

        Preferred to be

        Purchased Closing

	 	 	 	 	 
	 	 	 	 	 
	Total	 	 	 	 

 

     

     

    

 

Exhibit B

 

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION, AS AMENDED

 

     

     

    

 

Exhibit C

 

Investors’ Rights
Agreement

 

     

     

    

 

Exhibit D

 

Voting Agreement

 

     

     

    

 

Exhibit E

 

Right of First Refusal
and Co-Sale Agreement

 

     

     

    

 

Exhibit F

 

Risks and Investment
Considerations

 

An investment in the
Series A-2 Preferred is speculative and involves a high degree of risk. Investors should understand the various risks of investment
and should be able to afford to bear such risks, including, without limitation, the risk of losing their entire investment.

 

Set forth below are
certain risks that are material and should be considered by Investor. It should be recognized that the risk factors set forth below
are those that, at the date of this Agreement, appear to the Company the most likely to be significant. Investor should realize,
however, that factors other than those set forth below may ultimately affect an investment in the Company in a manner and to a
degree that cannot be foreseen at this time.

 

Speculative Investment.
An investment in the Series A-2 Preferred is speculative and involves a high degree of risk. Investor should understand the various
risks of investment and should be able to afford to bear such risks, including, without limitation, the risk of losing his entire
investment.

 

Development Stage
Company. The Company is a development stage company without any operating history. There can be no assurance that the Company
will be able to implement its business plan, raise sufficient capital to fund its development or achieve a level of operating revenues
or income sufficient to enable the Company to continue as a going concern. It has no commercial products and its products in development
require significant further research, development, testing, and regulatory clearances and are subject to the risks of failure inherent
in the development of products based on new technologies. These risks include the possibilities that the Company’s technology
or any or all of its product candidates will be found to be unsafe, ineffective or toxic, especially in immunosuppressed individuals,
or fail to receive necessary regulatory clearances to develop or approve the products; that the product candidates, even if found
to be safe and effective, will be difficult to manufacture on a large scale or uneconomical to market; that the product candidates
will be stable enough for commercialization; that proprietary rights of third parties will preclude the Company from marketing
products; or that third parties will market superior or equivalent products. There can be no assurance that the Company’s
research and development activities will result in any commercially viable products.

 

		1.	Delays in the Completion of Human Clinical Testing
Could Result in Increased Costs and Delay or Limit our Ability to Generate Revenues. Delays in the completion of clinical
testing could significantly affect our product development costs. We do not know whether planned clinical trials will be completed
on schedule, if at all. The commencement and completion of clinical trials can be delayed for a number of reasons, including delays
related to:

		·	obtaining regulatory approval to commence and continue a clinical trial; reaching agreement
                                                                                                               on acceptable terms with any prospective clinical research organizations, or CROs, and trial sites, the terms of which can be
                                                                                                               subject to extensive negotiation and may vary significantly among different CROs and trial sites;

 

     

     

    

 

		·	manufacturing sufficient quantities and quality of our product candidate(s) for use in clinical
trials;

		·	obtaining institutional review board approval to conduct a clinical trial at a prospective site;

		·	recruiting and enrolling patients to participate in clinical trials for a variety of reasons, including
competition from other clinical trial programs for the treatment of similar conditions; and

		·	signing-up patients who have consented to participate in a clinical trial but may withdraw from
the study at any time due to side effects from the investigational product and/or other therapy, lack of efficacy and/or disease
progression, personal reasons, or who are lost to further follow-up.

 

Clinical
trials may also be delayed or discontinued as a result of ambiguous or negative interim results. In addition, a clinical trial
may be suspended or terminated by us, an institutional review board overseeing the clinical trial at a clinical trial site (with
respect to that site), the FDA, or other regulatory authorities due to a number of factors, including:

		·	failure to conduct the clinical trial in accordance with US, international and/or local regulatory
requirements, or in compliance with the study protocols;

		·	unforeseen safety issues; and

		·	lack of adequate funding to continue the clinical trial.

 

Additionally,
changes in regulatory requirements and guidance may occur, and we may need to amend clinical trial protocols or our development
plan to reflect these changes. Amendments may require us to resubmit our clinical trial protocols to institutional review boards
for reexamination, which may impact the costs, timing or successful completion of a clinical trial. If we experience delays in
completion of, or if we terminate any of our clinical trials, the commercial prospects for our product candidates may be harmed,
and our ability to generate product revenues will be delayed. In addition, many of the factors that cause, or lead to, a delay
in the commencement or completion of clinical trials may also ultimately lead to the denial of regulatory approval of our product
candidates.

 

		2.	Technological Uncertainty. The pharmaceutical
industry is rapidly evolving, and it is expected to continue to undergo significant and rapid technological changes. Rapid technological
development could result in actual and proposed products, services or processes becoming obsolete before the Company recovers
a significant portion of its related research, development and capital expenses. Many companies are presently searching for treatments
for cancers and other diseases. Because of such intense competition, it is possible that a competitor will have a marketable product
prior to any developed by the Company or will develop a product with safety or effectiveness that exceeds those of any of the
Company’s products or will attract patients to their clinical studies instead of the Company’s proposed studies.

 

No Market for Series
A-2 Preferred. No public market for the Company’s securities presently exists, it is unlikely that one will develop in
the future and investors may find it impossible to liquidate an investment in the Series A-2 Preferred at a time when it may desire
to do so.

 

     

     

    

 

Key Employees.
The Company will be dependent upon the availability of its senior executive officers who will be responsible for overall management
of the Company and the development and marketing efforts of the Company’s technologies and products.

 

Restrictions on
Transfer. The transfer of shares of Series A-2 Preferred is restricted. The shares must be acquired for investment purposes
only and not with a view to resale. The shares will not be registered under the Securities Act of 1933, as amended, or the securities
laws of any state (in reliance upon exemptions that depend in part upon the investment intent of the investors). The Company has
no present intention of registering the Units in the future. In addition, any transfer must comply with all applicable Federal
and state securities laws.

 

Taxes. All individuals
contemplating an investment in the Company are responsible for their own tax consequences. Holders of Notes that are converting
accrued interest into equity may realize taxable gain in connection with the amount of interest converted.

 

Industry Risks.
Substantial additional research and development is necessary in order to determine whether the Company’s products will be
able to compete with competitors on the basis of cost and effectiveness. The Corporation will be dependent upon the availability
of its key scientific personnel and senior executive officers who will be responsible for overall research and management of the
Company and the development and marketing efforts of the Company’s technologies and products.

 

Regulatory Approval.
The principal products that the Company is developing are subject to prior regulatory approval before they can be sold to the public.
Such regulatory approvals have not been applied for or granted in any of the countries in which the Company plans to sell such
products. Delays in obtaining FDA and other regulatory approvals would have an adverse effect upon the Company’s business
prospects and could lessen the Company’s competitive advantages. The extent of such regulatory review will affect the amount
of future capital required by the Company.

 

Competition.
The Company will face strong competition from other businesses offering similar services. In many instances, such competitors are
better financed and already have an established customer network that will be difficult for the Company to penetrate. The barriers
to entry for the Company’s business are low.

 

		3.	Accumulated Deficit. The Company is a development
stage entity and, therefore, has generated no revenues or earnings from sales of products and no product revenues or earnings
are expected for years. The Company will be required to conduct significant research, manufacturing, development, testing, and
regulatory compliance activities which, together with projected general and administrative expenses, are expected to result in
significant and increasing operating losses for the foreseeable future.

 

     

     

    

 

		4.	Risk of Product Liability. Clinical trials, marketing,
or commercial use of any of the Company’s potential products may expose the Company to liability claims from the use of
such products and conduct of clinical trials. The Company has obtained for prior and current human clinical trials, and intends
to obtain (if available at a commercially reasonable cost), only limited product liability insurance at such time that human clinical
trials are conducted. There can be no assurance that the Company will be able to obtain and maintain such insurance, obtain additional
insurance, or that sufficient coverage can be acquired at a feasible cost. An inability to obtain or maintain insurance at acceptable
cost or otherwise protect against potential product liability claims could prevent or inhibit the commercialization of products
developed by the Company. A product liability claim or recall could have a material adverse effect on the business or financial
condition of the Company.

 

		5.	Uncertainty of Government Regulatory Requirements;
Lengthy Approval Process. Because the Company’s technology is a commercially new technology and has not been extensively
tested in humans, the regulatory requirements governing gene transfer products and related clinical procedures are uncertain and
may be subject to substantial review by various governmental and regulatory authorities in the United States and foreign countries.
FDA regulatory review may result in extensive delay in regulatory approval of any of the Company’s product candidates. The
Company plans to change its manufacturing process from the current serum containing process to our defined media process and there
can be no guarantee that the regulatory authorities will approve this new process in a timely manner or ever. Also as a consequence
of the manufacturing change there may be a requirement to do more preclinical safety or efficacy studies, develop new manufacturing
and release assays and repeat all or part of the ascending dose safety study in humans. Regulatory requirements ultimately imposed
could affect adversely the Company’s ability to test, manufacture or market products.

 

		6.	Future Capital Needs; Uncertainty of Additional Funding.
The Company will require substantial funds to conduct the research and development and preclinical and clinical testing of
its product candidates and product leads, to establish commercial-scale manufacturing capabilities and to market its product candidates.
The Company’s future capital requirements will depend on many factors, including: scientific progress in its drug discovery
programs; the magnitude and number of these programs; progress and findings in preclinical testing and clinical trials; the time
and costs involved in obtaining regulatory approvals; the costs involved in filing, prosecuting and enforcing patent claims; competing
technological and market developments; changes in its existing research relationships; the ability of the Company to establish
collaborative arrangements; the cost of manufacturing scale-up; and effective commercialization activities and arrangements. The
Company expects that the Company’s existing funds, together with the funds generated by this offering and the interest earned
thereon, will be insufficient to fund the Company’s activities for any discernible period. As a result, additional funds
will need to be raised. The Company intends to seek such additional funding through private or public financings, as well as collaborative
arrangements. There can be no assurance that additional financing will be available, or, if available, that it will be available
on acceptable terms. If adequate funds are not available, the Company may be required to delay, scale back or eliminate one or
more of its drug development programs or obtain funds through arrangements with collaborative partners or others that may require
the Company to relinquish rights to certain of its technologies or product candidates that the Company would not otherwise relinquish.
If additional funds are raised by issuing equity or convertible securities, dilution to existing stockholders will result.

 

     

     

    

 

		7.	Dependence on Others; Collaborators. The Company’s
strategy for the research, development and commercialization of its products may require entering into various arrangements with
third party manufacturers, corporate collaborators, licensors, licensees and others, and is dependent upon the subsequent success
of these outside parties in performing their responsibilities. CPP is currently engaged in a manufacturing and supply relationship
with Sanofi-Aventis and also with Watson Pharmaceuticals. The Company is dependent on them for ongoing supply, packaging, analytical,
regulatory, scale up, manufacturing-changes, and other elements required for supplying the Products to clinical trial sites and
eventually to the marketplace.

 

		8.	Uncertainty of Patent Position and Proprietary Rights.
Although the company has received orphan status in both the EU and US, other Companies might also apply for orphan status (and
first product to market will enjoy the benefits of orphan status). Although the Company has applied for certain patents critical
to the development of its product, such patents have not been approved.

 

		9.	Uncertainty regarding third-party reimbursement and
healthcare cost containment initiatives may limit our returns. The ongoing efforts of governmental and third-party payors
to contain or reduce the cost of healthcare may affect our ability to commercialize our products successfully. Governmental and
other third-party payors continue to attempt to contain healthcare costs by:

		·	challenging the prices charged for health care products and services;

		·	limiting both coverage and the amount of reimbursement for new therapeutic products;

		·	denying or limiting coverage for products that are approved by the FDA but are considered experimental
or investigational by third-party payors;

		·	refusing in some cases to provide coverage when an approved product is used for disease indications
in a way that has not received FDA marketing approval; and

		·	denying coverage altogether.

 

The trend
toward managed healthcare in the United States, the growth of organizations such as health maintenance organizations, and legislative
proposals to reform healthcare and government insurance programs could significantly influence the purchase of healthcare services
and products, resulting in lower prices and reducing demand for our products. In addition, in almost all European markets, pricing
and choice of prescription pharmaceuticals are subject to governmental control. Therefore, the price of our products and their
reimbursement in Europe will be determined by national regulatory authorities.

 

Even if
we succeed in bringing any of our proposed products to the market, they may not be considered cost-effective and third-party reimbursement
might not be available or sufficient. If adequate third-party coverage is not available, we may not be able to maintain price levels
sufficient to realize an appropriate return on our investment in research and product development. In addition, legislation and
regulations affecting the pricing of pharmaceuticals may change in ways adverse to us before or after any of our proposed products
are approved for marketing.

 

     

     

    

 

Even if
our drug candidates are successful in clinical trials, we may not be able to successfully commercialize them.

 

Since our
inception in 2008, we have dedicated substantially all of our resources to the research and development of our technologies and
related compounds. All of our compounds currently are in research or development, and have not received marketing approval.Exhibit 10.12

 

CANCER PREVENTION PHARMACEUTICALS,
INC.

INVESTORS’ RIGHTS AGREEMENT

 

This Investors’
Rights Agreement (this “Agreement”) is dated as of September 17, 2012, and is between Cancer Prevention
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the persons listed on the Schedule
of Investors attached hereto as Exhibit A (each, an “Investor” and collectively, the “Investors”).

 

Recitals

 

A.          Certain
holders (“Note Holders”) of the Company’s Convertible Promissory Notes (“Notes”)
are desirous to covert, or have converted, the principal amount of and accrued interest on the Notes into the Company’s Series
A-1 Convertible Preferred Stock (“Series A-1 Preferred”) in accordance with the terms of an Amendment
to Convertible Promissory Notes and Notice of Election and Consent to Conversion between the Company and the holders of such Notes
(the “Conversion”).

 

B.          The
Investors are former Note Holders of the Notes which have been converted pursuant to the Conversion.

 

C.          As
a condition to the Conversion, the Parties have agreed to enter into this Agreement.

 

The parties therefore
agree as follows:

 

SECTION I

DEFINITIONS

 

1.1          Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth below:

 

(a)          “Commission”
shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

(b)          “Common
Stock” means the Common Stock of the Company.

 

(c)          “Conversion
Stock” shall mean shares of Common Stock issued upon conversion of the Series A-1 Preferred.

 

(d)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the
rules and regulations thereunder, all as the same shall be in effect from time to time.

 

(e)          “Holder”
shall mean any Investor who holds Registrable Securities and any holder of Registrable Securities to whom the registration rights
conferred by this Agreement have been duly and validly transferred in accordance with Section 2.9 of this Agreement.

 

(f)          “Indemnified
Party” shall have the meaning set forth in Section 2.4(c).

 

(g)          “Indemnifying
Party” shall have the meaning set forth in Section 2.4(c).

 

    	 	-1-	 

     

    

 

(h)          “Initial Public Offering” shall mean the closing of the Company’s first firm commitment underwritten
public offering of the Company’s Common Stock registered under the Securities Act.

 

(i)          “New
Securities” shall have the meaning set forth in Section 4.1(a).

 

(j)          “Other
Selling Stockholders” shall mean persons other than Holders who, by virtue of agreements with the Company,
are entitled to include their Other Shares in certain registrations hereunder.

 

(k)          “Other
Shares” shall mean shares of Common Stock, other than Registrable Securities (as defined below), for which registration
rights have been granted.

 

(l)          
“Preferred Stock” shall mean the preferred stock of the Company, par value $0.001.

 

(m)         “Registrable
Securities” shall mean (i) shares of Common Stock issued or issuable pursuant to the conversion of the Shares
and (ii) any Common Stock issued as a dividend or other distribution for or in exchange for or in replacement of the shares
referenced in (i) above; provided, however, that Registrable Securities shall not include any shares of Common Stock
described in clause (i) or (ii) above which have previously been registered or which have been sold to the public either under
a registration statement or Rule 144, or which have been sold in a private transaction in which the transferor’s rights
under this Agreement are not validly assigned in accordance with this Agreement.

 

(n)          The
terms “register,” “registered” and “registration”
shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and
applicable rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement.

 

(o)         “Registration
Expenses” shall mean all expenses incurred in effecting any registration under this Agreement, including, without
limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company and one special counsel for the Holders (not to exceed $20,000),
blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but
shall not include Selling Expenses, fees and disbursements of other counsel for the Holders
and the compensation of regular employees of the Company, which shall be paid in any event by the Company.

 

(p)         “Restricted
Securities” shall mean any Registrable Securities required to bear the first legend set forth in Section 2.6(c).

 

(q)         “Right
of First Refusal and Co-Sale Agreement” shall mean the agreement of that name of even date herewith by and between
the Company, the holders of Series A-1 Preferred and certain holders of Common Stock.

 

(r)          “Rule 144”
shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

(s)          “Rule 145”
shall mean Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

    	 	-2-	 

     

    

 

(t)          “Rule 415”
shall mean Rule 415 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

(u)          “Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and
regulations thereunder, all as the same shall be in effect from time to time.

 

(v)         “Selling
Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale
of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special
counsel to the Holders included in Registration Expenses).

 

(w)         “Shares”
shall mean the shares of Series A-1 Preferred.

 

SECTION 2

REGISTRATION RIGHTS

 

2.1          Company
Registration – Piggyback Rights

 

(a)          Company
Registration. If the Company shall determine to register any of its securities either for its own account or the account
of a security holder or holders, other than a registration relating solely to employee benefit plans, a registration relating to
the offer and sale of debt securities, a registration relating to a corporate reorganization or other Rule 145 transaction, or
a registration on any registration form that does not permit secondary sales, the Company will:

 

(i)          promptly
give written notice of the proposed registration to all Holders; and

 

(ii)         use
its commercially reasonable efforts to include in such registration (and any related qualification under blue sky laws or other
compliance), except as set forth in Section 2.1(b) below, and in any underwriting involved therein, all of such Registrable
Securities as are specified in a written request or requests made by any Holder or Holders received by the Company within ten (10)
days after such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s
Registrable Securities.

 

(b)          Underwriting.
If the registration for which the Company gives notice is for a registered public offering involving an underwriting, the Company
shall so advise the Holders as a part of the written notice given pursuant to Section 2.1(a)(i). In such event, the right
of any Holder to registration under this Section 2.1(b) shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting as provided herein. All Holders
proposing to distribute their securities through such underwriting shall (together with the Company, the Other Selling Stockholders
and other holders of securities of the Company with registration rights to participate therein distributing their securities through
such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters
selected by the Company, it being understood, however, that no Holder will be required to make any representation or warranties
in that Agreement other than representations and warranties regarding that Holder and Holder’s intended method of distribution.

 

    	 	-3-	 

     

    

 

Notwithstanding any
other provision of this Section 2.1(b), if the underwriters advise the Company in writing that marketing factors require a
limitation on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) exclude,
in the case of an IPO, all Registrable Securities from, or limit the number of Registrable Securities to be included in, the registration
and underwriting. The Company shall so advise all holders of securities requesting registration, and the number of shares of securities
that are entitled to be included in the registration and underwriting shall be allocated, as follows: (i) first, to the Company
for securities being sold for its own account, and (ii) second, to the Holders requesting to include Registrable Securities
in such registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming
conversion; provided, however, that, if any Holder does not request inclusion of the maximum number of shares of
Registrable Securities allocated to it pursuant to its pro rata allocation, in which case the remaining portion of its allocation
shall be reallocated among those requesting Holders whose allocations did not satisfy their initial requests, pro rata,
on the basis of the number of shares of Registrable Securities held by such Holders assuming conversion, and this procedure shall
be repeated until all of the shares of Registrable Securities which may be included in the registration on behalf of the Holders
have been so allocated. In no event shall the number of Registrable Securities underwritten in such registration be limited unless
and until all shares held by persons other than Holders (excluding shares registered for the account of the Company) are completely
excluded from such offering; and provided that, after the Initial Public Offering, at least 20% of the shares sold pursuant
this Section 2.1(b) shall be allocated to Holders.

 

If a person who has
requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall
also be excluded therefrom by written notice from the Company or the underwriter. The Registrable Securities or other securities
so excluded shall also be withdrawn from such registration. Any Registrable Securities or other securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration. If shares are so withdrawn from the registration and if the number
of shares of Registrable Securities to be included in such registration was previously reduced as a result of marketing factors
under Section 2.1(b), the Company shall then offer to all persons who have retained the right to include securities in the
registration the right to include additional securities in the registration in an aggregate amount equal to the number of shares
so withdrawn, with such shares to be allocated among the persons requesting additional inclusion, in the manner set forth above.

 

2.2          Expenses
of Registration. All Registration Expenses incurred for registrations under Section 2.1 shall be borne by the Company.
All Selling Expenses relating to securities registered on behalf of the Holders shall be borne by the holders of securities included
in such registration pro rata among each other on the basis of the number of Registrable Securities so registered.

 

2.3          Registration
Procedures. For each registration effected by the Company under Section 2, the Company will keep each Holder advised in writing
as to the initiation of each registration and as to the completion thereof. At its expense, the Company will use its commercially
reasonable efforts to:

 

(a)          Keep
such registration effective for a period of ending on the earlier of the date which is sixty (60) days from the effective date
of the registration statement or such time as the Holder or Holders have completed the distribution described in the registration
statement relating thereto;

 

(b)          Prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used for such registration
statement as may be necessary to comply with the provisions of the Securities Act for the disposition of all securities covered
by such registration statement for the period set forth in subsection (a) above;

 

    	 	-4-	 

     

    

 

(c)          Furnish
such number of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment
of or supplement to the prospectus, as a Holder from time to time may reasonably request;

 

(d)          Use
its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities
or Blue Sky laws of such jurisdiction as shall be reasonably requested by the Holders; provided, that the Company shall
not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service
of process in any such states or jurisdictions;

 

(e)          Notify
each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in
such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances
then existing, and following such notification promptly prepare and furnish to such seller a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing;

 

(f)          To
furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being
sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes
of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed
to the underwriters, if any, and reasonably satisfactory to a majority in interest of the Holders requesting registration of Registrable
Securities and (ii) a “comfort” letter dated as of such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to the underwriters;

 

(g)          Provide
a transfer agent and registrar for all Registrable Securities registered under such registration statement and a CUSIP number for
all such Registrable Securities, in each case not later than the effective date of such registration;

 

(h)          To
comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve months, but not more than eighteen months, beginning
with the first month after the effective date of the Registration Statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act;

 

(i)          Cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed.

 

    	 	-5-	 

     

    

 

2.4          Indemnification.

 

(a)          To
the extent permitted by law, the Company will indemnify and hold harmless each Holder, each of its officers, directors and partners,
legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act,
for which registration, qualification or compliance has been effected under this Section 2, and each underwriter, if any, and each
person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses, claims,
losses, damages and liabilities (or actions, proceedings or settlements therefor) arising out of or based on: (i) any untrue
statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering circular
or other document (including any related registration statement, notification or the like) incident to any such registration, qualification
or compliance, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, or (iii) any violation (or alleged violation) by the Company of the Securities
Act, any state securities laws or any rule or regulation thereunder applicable to the Company and relating to action or inaction
required of the Company for any offering covered by such registration, qualification or compliance, and the Company, promptly after
receipt of a statement and request for reimbursement from each such Holder, will reimburse each such Holder, each of its officers,
directors, partners, legal counsel and accountants and each person controlling such Holder, each such underwriter and each person
who controls any such underwriter, for any legal and any other expenses reasonably incurred for investigating and defending or
settling any such claim, loss, damage, liability or action; provided that the Company will not be liable in any such case
to the extent (and only to the extent) any such claim, loss, damage, liability, or action arises out of or is based on any untrue
statement or omission based upon written information furnished to the Company by such Holder, any of such Holder’s officers,
directors, partners, legal counsel or accountants, any person controlling such Holder, such underwriter or any person who controls
any such underwriter, and stated to be specifically for use therein; and provided, further that, the indemnity agreement
contained in this Section 2.4 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed).

 

(b)          To
the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as
to which such registration, qualification or compliance is being effected, indemnify and hold harmless the Company, each of its
directors, officers, partners, legal counsel and accountants and each underwriter, if any, of the Company’s securities covered
by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15
of the Securities Act, each other such Holder, and each of their officers, directors and partners, and each person controlling
each other such Holder, against all claims, losses, damages and liabilities (or actions therefor) arising out of or based on: (i) any
untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering
circular or other document (including any related registration statement, notification, or the like) incident to any such registration,
qualification or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and such Holder, promptly after receipt of a statement and
request for reimbursement from the Company each such other Holder, will reimburse the Company and such Holders, directors, officers,
partners, legal counsel and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably
incurred for investigating or defending any such claim, loss, damage, liability or action, in each case as, but only to the extent
as, such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company
by such Holder and stated to be specifically for use therein; provided, however, that the obligations of such Holder
hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities (or actions therefor)
if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided
that in no event shall any indemnity under this Section 2.4 exceed the net proceeds from the offering received by such Holder,
except for fraud or willful misconduct by such Holder.

 

    	 	-6-	 

     

    

 

(c)          Each
party entitled to indemnification under this Section 2.4 (the “Indemnified Party”) shall give notice
to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified
Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume
the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall
conduct the defense of such claim or any litigation resulting therefrom on behalf of the Indemnified Party (and if reasonably requested
by the Indemnified, counsel for the Indemnified Party separate from counsel to the Company), shall be approved by the Indemnified
Party (whose approval shall not be unreasonably withheld or delayed), and the Indemnified Party may participate in such defense
at such party’s expense; and provided further that the failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its obligations under this Section 2.4, if such failure is not prejudicial.
No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Indemnified Party of a release from all liability for such claim or litigation. Each Indemnified
Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request
in writing and as shall be reasonably required for defense of such claim and litigation resulting therefrom.

 

(d)          If
the indemnification provided for in this Section 2.4 is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party for any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party, in lieu of
indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result
of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and of the Indemnified Party on the other for the statements or omissions that resulted in such loss, liability,
claim, damage, or expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party
and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the
Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission. No person or entity will be required under this Section 2.4 to contribute any amount in excess
of the net proceeds from the offering received by such person or entity, except for fraud or willful misconduct by such person
or entity. No person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

 

(e)          Notwithstanding
the foregoing, if the provisions on indemnification and contribution contained in the underwriting agreement entered into for the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall
control as regards the matters in conflict only.

 

(f)          Except
to the extent any underwriting agreement may supersede the provisions hereof, the obligations of the Company and the Holders under
this Section 2.4 will survive the completion of any offering of Registrable Securities in a registration statement and shall survive
the termination of this Agreement.

 

2.5          Information
by Holder. Each Holder of Registrable Securities shall furnish to the Company such information regarding such Holder and the
distribution proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required for any
registration, qualification, or compliance referred to in this Section 2.

 

    	 	-7-	 

     

    

 

2.6          Restrictions
on Transfer. 

 

(a)          The
holder of each certificate representing Registrable Securities by acceptance thereof agrees to comply with the provisions of this
Section 2.6. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion
of the Restricted Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in writing
for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by, the terms and conditions
set forth in this Agreement, including, without limitation, this Section 2.6 and Section 2.7, and:

 

(i)          There
is then in effect a registration statement under the Securities Act covering such proposed disposition and the disposition is made
in accordance with the registration statement; or

 

(ii)         The
Holder shall have given prior written notice to the Company of the Holder’s intention to make such disposition and shall
have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and, if requested
by the Company, the Holder shall have furnished the Company, at the Company’s expense, with evidence reasonably satisfactory
to the Company which may include an opinion of counsel or “no action” letter from the Commission that such disposition
will not require registration of such Restricted Securities under the Securities Act, whereupon the holder of such Restricted Securities
shall be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the Holder to
the Company. It is agreed that the Company will not require opinions of counsel for transactions made under Rule 144 except
in unusual circumstances.

 

(b)          Notwithstanding
the provisions of Section 2.6(a), no such registration statement, opinion of counsel or “no action” letter shall
be necessary for (i) a transfer not involving a change in beneficial ownership, or (ii) transactions involving the distribution
of Restricted Securities by any Holder to (x) a parent, subsidiary or other affiliate of the Holder, if the Holder is a corporation;
or (y) any of the Holder’s partners, members or other equity owners, or retired partners, retired members or other equity
owners, or to the estate of any of the Holder’s partners, members or other equity owners or retired partners, retired members
or other equity owners; or (z) a transfer pursuant to a Holder’s exercise of its rights under the Right of First Refusal
and Co-Sale Agreement; provided, in each case, that the Holder shall give written notice to the Company of the Holder’s
intention to effect such disposition and shall have furnished the Company with a detailed description of the manner and circumstances
of the proposed disposition.

 

(c)          Each
certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped
or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable
state securities laws):

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE
SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

    	 	-8-	 

     

    

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO (1) RESTRICTIONS ON TRANSFERABILITY
AND RESALE, INCLUDING A LOCK-UP PERIOD UPON A PUBLIC OFFERING, AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT, AND (2) VOTING
RESTRICTIONS AS SET FORTH IN A VOTING AGREEMENT AMONG THE COMPANY AND THE ORIGINAL HOLDERS OF THESE SHARES, COPIES OF WHICH MAY
BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

 

The Holders consent
to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities to implement
the restrictions on transfer established in this Section 2.6.

 

(d)          The
first legend referring to federal and state securities laws identified in Section 2.6(c) stamped on a certificate evidencing
the Restricted Securities and the stock transfer instructions and record notations for the Restricted Securities shall be removed
and the Company shall issue a certificate without such legend to the holder of Restricted Securities if (i) those securities
are registered under the Securities Act, or (ii) the holder provides the Company with an opinion of counsel reasonably acceptable
to the Company to the effect that a sale or transfer of those securities may be made without registration or qualification.

 

2.7          Market
Stand-Off Agreement. If requested by the Company and an underwriter of Common Stock (or other securities) of the Company, each
Holder shall not sell or otherwise transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging
or similar transaction with the same economic effect as a sale, of any Common Stock (or other securities) of the Company held by
such Holder (other than those included in the registration) during the one hundred and eighty (180) day period following the effective
date of the registration statement for the Company’s Initial Public Offering filed under the Securities Act (or such other
period, not exceeding 210 days following the effective date of that registration statement, as may be requested by the Company
or an underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports
and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4)
or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), provided that all officers and directors
of the Company officers and directors of the Company and all holders of at least one percent (1%) of the Company’s voting
securities are bound by and have entered into similar agreements.
The obligations described in this Section 2.7 shall not apply to a registration relating solely to employee benefit plans
on Form S-l or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction
on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions and may stamp
each such certificate with the second legend set forth in Section 2.6(c) for the shares of Common Stock (or other securities)
subject to the foregoing restriction until the end of such one hundred and eighty (180) day (or other) period.
Each Holder agrees to execute a market standoff agreement with said underwriters in customary form consistent with the provisions
of this Section 2.7.

 

2.8          Delay
of Registration. No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration
as the result of any controversy that might arise regarding the interpretation or implementation of this Section 2.

 

    	 	-9-	 

     

    

 

2.9          Transfer
or Assignment of Registration Rights. The rights to cause the Company to register securities granted to a Holder by the Company
under this Section 2 may be transferred or assigned by a Holder only to (i) one or more affiliated partnerships or funds managed
by a Holder or any or their respective directors, officers or partners, (ii) any family member or trust for the benefit of any
individual Holder, or (iii) a transferee or assignee of not less than 5,000 shares of Registrable Securities (as presently constituted
and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like); provided that
(i) such transfer or assignment of Registrable Securities is effected in accordance with the terms of Section 2.6, the
Right of First Refusal and Co-Sale Agreement, and applicable securities laws, (ii) the Company is given written notice before
said transfer or assignment, stating the name and address of the transferee or assignee and identifying the securities for which
such registration rights are intended to be transferred or assigned and (iii) the transferee or assignee of such rights assumes
in writing the obligations of such Holder under this Agreement, including without limitation the obligations set forth in Section 2.7.

 

2.10         Termination
of Registration Rights. The right of any Holder to request inclusion in any registration under Section 2.1 or shall
terminate on the earlier of (i) such date, on or after the closing of the Company’s first registered public offering
of Common Stock, if a Holder’s total holdings are reduced to less than 1% of the outstanding shares of the Company and all
such shares may immediately be sold under Rule 144 during any ninety (90) day period and (ii) five (5) years after the
closing of the Company’s registered offering that causes an Automatic Conversion Event under the Company’s then-current
Certificate of Incorporation.

 

SECTION 3

COVENANTS OF THE COMPANY

 

The Company hereby
covenants and agrees, as follows:

 

3.1         Basic
Financial Information and Inspection Rights. 

 

(a)          Basic
Financial Information. The Company will furnish the following reports to each Holder:

 

(i)         As
soon as practicable after the end of each fiscal year of the Company, and in any event within ninety (90) days after the end of
each fiscal year of the Company, an unaudited consolidated balance sheet of the Company as at the end of such fiscal year, and
statements of operations, stockholders’ equity and cash flows of the Company for such year, prepared in accordance with U.S.
generally accepted accounting principles consistently applied.

 

(ii)         As
soon as practicable after the end of the first, second and third quarterly accounting periods in each fiscal year of the Company,
and in any event within thirty (30) days after the end of the first, second, and third quarterly accounting periods in each fiscal
year of the Company, an unaudited balance sheet of the Company as of the end of each such quarterly period, and unaudited statements
of operations, stockholders’ equity and cash flows of the Company for such period.

 

(b)          Inspection
Rights. The Company will afford to each Holder and counsel, reasonable access
during normal business hours to all of the Company’s respective properties, books and records. Each such Holder shall have
such other access to management and information as is necessary for it to comply with applicable laws and regulations and reporting
obligations. The Company shall not be required to disclose details of contracts with or work performed for specific customers and
other business partners where to do so would violate confidentiality obligations to those parties. Holders may exercise their rights
under this Section 3.1(b) only for purposes reasonably related to their interests under this Agreement and related agreements.
The rights granted under this Section 3.1(b) may not be assigned or otherwise conveyed by the Holders or by any subsequent
transferee of any such rights without the prior written consent of the Company except as authorized in this Section 3.1(b).

 

    	 	-10-	 

     

    

 

3.2          Confidentiality.
Anything in this Agreement to the contrary notwithstanding, no Holder because of this Agreement shall have access to any trade
secrets or classified information of the Company. The Company shall not be required to comply with any information rights of Section
3 for any Holder whom the Company reasonably determines to be a competitor or an officer, employee, director or holder of more
than ten percent (10%) of a competitor. Each Holder acknowledges that the information received by them under this Agreement may
be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce,
disclose or disseminate such information to any other person (other than its employees or agents having a need to know the contents
of such information, and its attorneys and accountants), except for the exercise of rights under this Agreement, unless the Company
has made such information available to the public generally or such Holder is required to disclose such information by a governmental
authority.

 

3.3          Termination
of Covenants. The covenants set forth in this Section 3 shall terminate and be of no further force and effect after the closing
of the Company’s Initial Public Offering; provided the aggregate net proceeds of such Initial Public Offering to the
Company (before deductions of underwriters’ commissions and expenses) equals or exceeds $20,000,000.

 

SECTION 4

RIGHT OF FIRST REFUSAL

 

4.1          Right
of First Refusal. The Company hereby grants to each Holder the right of first refusal to purchase its pro rata share
of New Securities which the Company may, from time to time, propose to sell and issue after the date of this Agreement. A Holder’s
pro rata share, for purposes of this right of first refusal, is equal to the ratio of (a) the number of shares of Common
Stock owned by such Holder immediately before the issuance of New Securities (assuming full conversion of the Shares and full conversion
or exercise of all outstanding convertible securities, rights, options and warrants held by such Holder) to (b) the total
number of shares of Common Stock held by all Holders immediately before the issuance of New Securities (assuming full conversion
of the Shares and full conversion or exercise of all outstanding Shares and warrants to purchase Shares). Each Holder shall have
a right of over-allotment such that if any Holder fails to exercise its right hereunder to purchase its pro rata share of
New Securities, the other Holders may purchase the non-purchasing Holder’s portion on a pro rata basis. This right
of first refusal shall be subject to the following provisions:

 

(a)         “New
Securities” shall mean any capital stock (including Common Stock and/or Preferred Stock) of the Company whether now
authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of any
type whatsoever that are, or may become, exercisable or convertible into capital stock; provided that the term “New
Securities” does not include:

 

(i)          the
Shares, Shares covered by outstanding warrants to purchase Shares and the Conversion Stock;

 

(ii)         securities
that fall within the definition of “Excluded Shares” in the Company’s then-effective Certificate of Incorporation;

 

(iii)        securities
of the Company which are otherwise excluded by the affirmative vote or consent of the holders of a majority of the shares of Series
A-1 Preferred of the Company then outstanding voting exclusively and separately as a single class; and

 

    	 	-11-	 

     

    

 

(iv)        any
right, option or warrant to acquire any security convertible into the securities excluded from the definition of New Securities
pursuant to subsections (i) through (iii) above.

 

(b)          If
the Company proposes to undertake an issuance of New Securities, it shall give each Holder written notice of its intention, describing
the type of New Securities, and their price and the general terms upon which the Company proposes to issue the same. Each Holder
shall have ten (10) business days after any such notice is mailed or delivered to agree to purchase such Holder’s pro
rata share of such New Securities and to indicate whether such Holder desires to exercise its over-allotment option for the
price and upon the terms specified in the notice by giving written notice to the Company, in substantially the form attached as
Schedule 1, and stating therein the quantity of New Securities to be purchased.

 

(c)          If
the Holders fail to exercise fully the right of first refusal and over-allotment rights, if any, within said ten (10) business
day period (the “Election Period”), the Company shall have ninety (90) days thereafter
to sell or enter into an agreement (under which the sale of New Securities covered thereby shall be closed, if at all, within ninety
(90) days from the date of said agreement) to sell that portion of the New Securities for which the Holders’ right of first
refusal option set forth in this Section 4.1 was not exercised, at a price and upon terms no more favorable to the purchasers
thereof than specified in the Company’s notice to Holders delivered under Section 4.1(b). If the Company has not sold
within such ninety (90) day period following the Election Period, or such ninety (90) day period following the date of said agreement,
the Company shall not thereafter issue or sell any New Securities, without first again offering such securities to the Holders
in the manner provided in this Section 4.1.

 

(d)          The
right of first refusal granted under this Agreement shall expire upon, and shall not be applicable to, the Company’s Initial
Public Offering; provided the aggregate net proceeds of such Initial Public Offering to the Company (before deductions of
underwriters’ commissions and expenses) equals or exceeds $20,000,000.

 

SECTION 5

MISCELLANEOUS

 

5.1          Amendment.
Except as expressly provided
herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument
referencing this Agreement and signed by the Company and the Holders holding a majority of the Registrable Securities (excluding
any of such shares that have been sold to the public or pursuant to Rule 144). Any such amendment, waiver, discharge or termination
effected in accordance with this paragraph shall be binding upon each Holder and each future holder of all such securities of
Holder. Each Holder acknowledges that by the operation of this paragraph, the holders of a majority of the Registrable Securities
(excluding any of such shares that have been sold to the public or pursuant to Rule 144) will have the right and power to
diminish or eliminate all rights of such Holder under this Agreement.

 

5.2          Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail (if to an Investor or Holder) or otherwise delivered by hand, messenger
or courier service addressed:

 

(a)          if
to an Investor, to the Investor’s address, facsimile number or electronic mail address as shown in the Company’s records,
as may be updated in accordance with the provisions hereof, with a copy (which shall not constitute notice) to;

 

    	 	-12-	 

     

    

 

(b)          if
to any Holder, to such address, facsimile number or electronic mail address as shown in the Company’s records, or, until
any such Holder so furnishes an address, facsimile number or electronic mail address to the Company, then to the address, facsimile
number or electronic mail address of the last holder of such shares for which the Company has contact information in its records;
or

 

(c)          if
to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 1760 E. River Road,
Suite 250, Tucson, AZ 85718, or at such other current address as the Company shall have furnished to the Investors or Holders,
with a copy (which shall not constitute notice) to Hecker & Muehlebach PLLC, 405 W. Franklin, Tucson, Arizona, 85701-8209,
attention Lawrence Hecker.

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered
by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail,
at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit
of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile
transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address,
if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the
recipient’s next business day. For any conflict between the Company’s books and records and this Agreement or any notice
delivered hereunder, the Company’s books and records will control absent fraud or error.

 

5.3          Governing
Law. This Agreement shall be governed by the internal laws of Arizona as applied to agreements entered into among Arizona residents
to be performed entirely within Arizona, without regard to principles of conflicts of law.

 

5.4          Successors
and Assigns. This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred,
delegated or sublicensed by any Investor without the prior written consent of the Company. Any attempt by an Investor without such
permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall
be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

 

5.5          Entire
Agreement. This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof. No party hereto shall be liable or bound to any other party in any manner with regard to the
subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein.

 

5.6          Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to
any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power
or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only if specifically set forth
in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall
be cumulative and not alternative.

 

    	 	-13-	 

     

    

 

5.7          Severability.
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, portions of such provision, or such provision in its entirety, if necessary, shall be severed from this Agreement, and
such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, if possible, the same economic, business and other purposes of the illegal, void or unenforceable provision.
The balance of this Agreement shall be enforceable in accordance with its terms.

 

5.8          Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless
otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

5.9          Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute
such counterparts, and all of which together shall constitute one instrument.

 

5.10         Telecopy
Execution and Delivery. A facsimile, telecopy, digital, electronic or other reproduction of this Agreement may be executed
by one or more parties hereto and delivered by such party by email, facsimile or any similar electronic transmission device pursuant
to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding
and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original
of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

 

5.11         Jurisdiction;
Venue. For any disputes arising out of or related to this Agreement, the parties consent to the exclusive jurisdiction of,
and venue in, the state courts in Pima County, Arizona (or for exclusive federal jurisdiction, the courts of the District of Arizona).

 

5.12         Further
Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company,
partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may
be necessary to more fully effectuate this Agreement.

 

5.13         Conflict.
For any conflict between the terms of this Agreement and the Company’s certificate of incorporation or its bylaws, the terms
of the Company’s certificate of incorporation or its bylaws, as the case may be, will control.

 

5.14         Attorneys’
Fees. If any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in such dispute
shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and accountants, which shall
include, without limitation, all fees, costs and expenses of appeals.

 

5.15         Aggregation
of Stock. All securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons shall
be aggregated together for purposes of determining the availability of any rights under this Agreement.

 

(signature page follows)

 

    	 	-14-	 

     

    

 

Signature Page to
Investor’s Rights Agreement

 

The parties are signing
this Investors’ Rights Agreement as of the date stated in the introductory clause.

 

	 	CANCER PREVENTION PHARMACEUTICALS, INC.
	 	a Delaware corporation
	 	 
	 	 
	 	By: Jeffrey Jacob
	 	Its:  CEO
	 	 
	 	INVESTOR
	 	 
	 	 

 

    	 	-15-	 

     

    

 

SCHEDULE 1

 

NOTICE AND WAIVER/ELECTION OF

RIGHT OF FIRST REFUSAL

 

I do hereby waive
or exercise, as indicated below, my rights of first refusal under the Investors’ Rights Agreement dated as of September ___,
2012 (the “Agreement”):

 

1.      Waiver
of [___] days’ notice period in which to exercise
right of first refusal: (please check only one)

 

		 ̈

	WAIVE in full,
on behalf of all Holders, the [___]-day notice period
provided to exercise my right of first refusal granted under the Agreement.

 

		 ̈

	DO NOT WAIVE the notice period described above.

 

2.      Issuance
and Sale of New Securities: (please check only one)

 

		 ̈

	WAIVE in full the right of first refusal granted
under the Agreement regarding the issuance of the New Securities.

 

		 ̈

	ELECT TO PARTICIPATE
in $__________ (please provide amount) in New Securities proposed to be issued by Cancer Prevention Pharmaceuticals, Inc.,
a Delaware corporation, representing LESS than my pro rata portion of the aggregate of $[_______]
in New Securities being offered in the financing.

 

		 ̈

	ELECT TO PARTICIPATE
in $__________ in New Securities proposed to be issued by Cancer Prevention Pharmaceuticals, Inc., a Delaware corporation, representing
my FULL pro rata portion of the aggregate of $[_______]
in New Securities being offered in the financing.

 

		 ̈

	ELECT TO PARTICIPATE
in my full pro rata portion of the aggregate of $[_______]
in New Securities being made available in the financing AND, if available, the greater of (x) an additional $__________ (please
provide amount) or (y) my pro rata portion of any remaining investment amount available if other Holders do not
exercise their full rights of first refusal regarding the $[_______]
in New Securities being offered in the financing.

 

	Date:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Print investor name)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Print name of signatory, if signing for an entity)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Print title of signatory, if signing for an entity)

 

This is neither a commitment to purchase
nor a commitment to issue the New Securities described above. Such issuance can only be made by way of definitive documentation
related to such issuance. Cancer Prevention Pharmaceuticals, Inc. will supply you with such definitive documentation upon request
or if you indicate that you would like to exercise your first offer rights in whole or in part.

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