Document:

Exhibit 10.1

 

CONFIDENTIAL SEPARATION AGREEMENT
AND GENERAL RELEASE

 

This Separation
Agreement and General Release (the “Separation Agreement”) is made by and between Sucampo Pharmaceuticals, Inc., (“SPI”)
and Andrew Smith (“Employee”).

 

WHEREAS,
Employee and SPI are parties to the Amended and Restated Executive Employment Agreement attached as Exhibit 1 to this Separation
Agreement (“Employment Agreement”);

 

WHEREAS,
Employee and SPI intend to settle any and all claims that Employee may have against the Company as a result of any act, occurrence,
decision, event or omission occurring at any time prior to the signing of this Agreement, including, but not limited to, any matter
or fact arising out of Employee’s employment with SPI, compensation during Employee’s employment, the termination of
Employee’s employment, or the events giving rise to the Employment Agreement or this Agreement;

 

WHEREAS,
the parties have had extensive negotiations concerning the terms and conditions of Employee’s separation from SPI, and they
have agreed upon such terms and conditions as set forth in this Separation Agreement;

 

NOW,
THEREFORE, in consideration of the payments and benefits, obligations and covenants all contained herein, the parties agree as
follows:

 

		1.	End of Employment.

 

a.                  
The parties hereby mutually agree to terminate Employee’s employment from SPI and all positions and offices held in
any of SPI’s subsidiaries effective on May 17, 2017 (the “Separation Date”). Further, Employee hereby resigns
from his position as Director of Sucampo Pharma Europe Ltd. as of the date Employee signs this Separation Agreement.

 

b.                 
As a condition for receiving the consideration set forth in this Separation Agreement, Employee agrees to continue performing
services for SPI until the Separation Date. Between March 20, 2017 and the Separation Date (the “Transition Period”),
Employee shall be relieved of specific day-to-day duties, and shall complete the transition of matters with which Employee is familiar
or for which he was responsible, make himself reasonably available to SPI or its representatives to answer questions, provide information
and otherwise assist in matters with which Employee has been involved or has relevant information or experience, and provide such
services and special assignments within the scope of his current employment as may be reasonably requested by SPI’s Chief
Executive Officer or his designee (collectively, the “Transition Services”). During the Transition Period, Employee
is not authorized to report to work at any SPI worksite, or take any action on behalf of SPI, unless specifically authorized in
writing by SPI’s Chief Executive Officer or his designee.

 

    

     

    

		2.	Consideration.

 

a.                  
In consideration for Employee signing this Separation Agreement without revocation, and complying with its terms, SPI shall
continue to retain Employee on SPI’s payroll until the Separation Date at Employee’s current rate of pay.

 

b.                 
If Employee performs the Transition Services in a professional manner, and on the Separation Date executes—then subsequently
does not revoke—the General Release attached as Exhibit 2 (“Final Release”), SPI shall pay Employee the
separation benefits as set forth on Exhibit 3 within five (5) business days from the date on which the right to revoke such
General Release has expired.

 

c.                  
Employee understands and agrees that Employee would not receive the monies and/or benefits specified in this Section 2,
except for Employee’s execution of this Separation Agreement, the fulfillment of the promises contained herein, and the execution
without revocation of the Final Release.

 

		3.	General Release, Claims Not Released and Related Provisions.

 

a.                  
General Release of All Claims. Employee knowingly and voluntarily releases and forever discharges SPI, its
parent, affiliates, subsidiaries, joint ventures, holding companies, divisions, predecessors, successors and assigns (collectively,
“the Company”), and their current and former employees, attorneys, officers, directors, board committee members, shareholders,
and agents thereof, both individually and in their business capacities, and their insurers, employee benefit plans and programs
and their administrators and fiduciaries (collectively referred to throughout the remainder of this Separation Agreement as “Releasees”),
of and from any and all claims, known and unknown, asserted or unasserted, which the Employee has or may have against Releasees
as of the date of execution of this Agreement, including, but not limited to, any alleged violation of:

 

		§	Title VII of the Civil Rights Act of 1964;

		§	Sections 1981 through 1988 of Title 42 of the United States Code;

		§	The Employee Retirement Income Security Act of 1974 ("ERISA") (as modified below);

		§	The Immigration Reform and Control Act;

		§	The Americans with Disabilities Act of 1990;

		§	The Age Discrimination in Employment Act of 1967 (“ADEA”);

		§	The Worker Adjustment and Retraining Notification Act;

		§	The Fair Credit Reporting Act;

		§	The Family and Medical Leave Act;

    

     

    

		§	The Equal Pay Act;

		§	The Genetic Information Nondiscrimination Act of 2008;

		§	All Maryland laws including:

		§	Maryland Human Relations Act – Md. State Government Code Ann. §
20-101 et seq., any regulations thereunder, and any human rights law of any Maryland county or municipality;

		§	Maryland Statutory Provision Regarding Retaliation/Discrimination for Filing a Workers’ Compensation
Claim – Md. Labor & Employment Code § 9-1105;

		§	Maryland Equal Pay Law – Md. Labor & Employment Code § 3-301 et seq.;

		§	Maryland Adoption Leave Law – Md. Labor & Employment Code §§ 3-801 and 3- 802;

		§	Maryland Medical Information Bias Law – Md. Labor & Employment Code § 5- 604;

		§	Maryland Volunteer/Civil Air Patrol Law – Md. Labor & Employment Code § 3- 703;

		§	Maryland Military Leave Law – Md. Public Safety Code § 13-705;

		§	Maryland law protecting witnesses, jurors and victims who attend court proceedings – Md.
Courts and Judicial Proceedings Code §§ 8-105, 9-205;

		§	Maryland Day of Rest Law – Md. Labor & Employment Code § 3-704;

		§	Maryland Lie Detector Law – Md. Labor & Employment Code § 3-702;

		§	Maryland Workplace Fraud Act, Md. Labor & Employment Code § 3-901 et seq.;

		§	Maryland Job Applicant Fairness Act – Md. Labor & Employment Code § 3-711, effective
October 1, 2011;

		§	Maryland Wage and Hour Laws – Md. Labor & Employment Code §§ 3-401 et seq. and
3-501 et seq.;

		§	Maryland Occupational Safety & Health Act, as amended – Md. Labor & Employment Code
§ 5-101 et seq.;

		§	Maryland Flexible Leave Act;

		§	Maryland Pay Disparity Act;

		§	any other statutory claims;

		§	any other federal, state or local law, rule, regulation, or ordinance;

		§	any public policy, contract, tort, or common law; or

		§	any basis for recovering costs, fees, or other expenses including attorneys' fees incurred in these
matters.

    

     

    

Subject to the limitations below,
Employee agrees not to institute a lawsuit against any Releasee alleging any claim that Employee is releasing in this Separation
Agreement. Employee agrees that, if Employee challenges the validity of this Separation Agreement, Employee shall return to SPI
all the consideration Employee received from SPI under this Separation Agreement.

 

a.                  
Claims Not Released. Employee is not waiving any rights Employee may have to: (a) Employee’s own vested
accrued employee benefits under any SPI health, welfare, retirement benefit, or stock plans as of the Separation Date; (b) benefits
and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (c) pursue
claims which by law cannot be waived by signing this Separation Agreement; (d) enforce this Separation Agreement; (e) challenge
the validity of this Separation Agreement; and/or (f) seek indemnification, advancement, contribution or defense by SPI under SPI’s
D&O liability coverage, bylaws and/or Delaware law.

 

b.                 
Governmental Agencies. Nothing in this Separation Agreement prohibits or prevents Employee from filing a charge
with or participating, testifying, or assisting in any investigation, hearing, whistleblower proceeding or other proceeding before
any federal, state, or local government agency (e.g. EEOC, NLRB, SEC., etc.), nor does anything in this Separation Agreement preclude,
prohibit, or otherwise limit, in any way, Employee’s rights and abilities to contact, communicate with, report matters to,
or otherwise participate in any whistleblower program administered by any such agencies. However, to the maximum extent permitted
by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual
monetary relief or other individual remedies.

 

c.                  
Collective/Class Action Waiver. If any claim is not subject to release, to the extent permitted by law, Employee
waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified
class, collective or multi-party action or proceeding based on such a claim in which SPI or any other Releasee identified in this
Separation Agreement is a party.

 

		4.	Acknowledgments and Affirmations.

 

Employee acknowledges and affirms
that:

 

a.                  
Employee has not filed, caused to be filed, or presently is a party to any claim against the Company;

 

b.                 
Employee has been paid and/or has received all compensation, wages, bonuses, commissions, and/or benefits which are due
and payable as of the date Employee signs this Separation Agreement;

 

c.                  
Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or related state
or local leave or disability accommodation laws;

 

    

     

    
 d.                  
 Employee has no known workplace injuries or occupational diseases;

 

e.                  
Employee has not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including
any allegations of corporate fraud;

 

f.                   
All of the Company’s decisions regarding Employee's pay and benefits through the date of Employee's execution of this
Separation Agreement were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other
classification protected by law; and that Employee has not divulged any of the Company’s proprietary or confidential information
of the Company and shall continue to maintain the confidentiality of such information consistent with the Company’s policies
and Employee’s agreement(s) with SPI and/or common law, including the terms of the Employment Agreement, which is incorporated
by reference and remains in effect.

 

		5.	Limited Disclosure and Return of Property.

 

a.                  
Except as required or permitted by this Section 6, Employee shall not disclose any information regarding the negotiation,
existence or terms of this Separation Agreement.

 

b.                 
Employee may disclose information regarding the negotiation, existence or terms of this Separation Agreement, to Employee’s
immediate family members, tax and financial advisors, an attorney with whom Employee chooses to consult regarding Employee’s
consideration of this Separation Agreement and/or to any federal, state, or local government agency.

 

c.                  
From February 27, 2017 until March 17, 2018, Employee shall provide a copy of Exhibit 4 of this Separation Agreement
to any prospective employer prior to accepting employment with that prospective employer.

 

d.                 
Employee affirms that, as of the Separation Date, Employee will have returned all of the Company’s property in Employee’s
possession or control. Employee also affirms that Employee is in possession of all of Employee’s property that Employee had
at SPI's premises and that SPI is not in possession of any of Employee’s property.

 

		6.	Communications.

 

a.               
Non-Disparagement. Employee agrees not to defame or maliciously disparage the Company in any manner whatsoever,
except as may be specifically protected or required by law. Promptly following the Separation Date, the Company shall direct in
writing its senior executives and members of its board of directors not to defame or maliciously disparage Employee in any manner
whatsoever, except as may be specifically protected or required by law.

 

 

    

     

    

b.       References.
Any inquiries for employment references or any other inquiries regarding Employee’s employment with the Company shall be
directed to either Max Donley, Executive Vice President, Global Human Resources or Peter Greenleaf, Chief Executive Officer. If
Mr. Donley or Mr. Greenleaf are contacted by third parties concerning Employee’s employment, they shall be limited to the
sum and substance of the information contained in Exhibit 5 of this Separation Agreement. If both Mr. Donley and Mr. Greenleaf
are no longer with the Company, the parties will agree to another representative specifically to be contacted.

 

7.                 
Restrictive Covenants. The parties hereby agree that any restrictive covenant relating to non-solicitation
and non-competition to which Employee is subject, including those contained in Section E of the Employment Agreement and any restrictions
contained in Employee’s equity incentive award agreements, shall cease to apply on March 20, 2018.

 

8.                 
Governing Law and Arbitration. This Separation Agreement shall be governed and conformed in accordance with
Maryland law without regard to Maryland’s conflict of laws provision. Any controversy, claim, or breach arising out of or
relating to this Separation Agreement shall be arbitrated in the State of Maryland in accordance with the rules of the American
Arbitration Association for employment disputes. SPI shall pay the case initiation fee for any such arbitration. The arbitrator
shall have the authority to award attorneys’ fees and costs incurred to the prevailing party. Should any provision of this
Separation Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable,
excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Separation
Agreement in full force and effect.

 

9.                 
 Employee’s Cooperation.

 

a.                
As long as there is no conflict between Employee’s legal interests and those of the Company, Employee agrees that
Employee shall reasonably cooperate with and serve in any capacity requested by the Company in any investigation and/or threatened
or pending litigation (now or in the future) in which the Company is a party, and regarding which Employee, by virtue of Employee’s
employment with the Company, has knowledge or information relevant to said investigation or litigation, including, but not limited
to: (a) meeting with representatives of the Company at mutually acceptable times, and for reasonable amounts of time, to prepare
for testimony and to provide truthful information regarding Employee’s knowledge; (b) acting as the Company’s representative;
and (c) providing, in any jurisdiction in which the Company requests, truthful information or testimony relevant to the investigation
or litigation. The Company’s request for reasonable cooperation shall take into consideration Employee’s personal and
business commitments and the amount of notice provided to Employee by the Company. The Company agrees to reimburse Employee for
Employee’s reasonable expenses incurred to comply with this Section 8.

 

    

     

    

b.                 
Employee also agrees to cooperate with the Company and its counsel in connection with any matters relating to the Company
in which Employee has been compelled, by subpoena or other compulsory, to testify or produce documents. To the extent permitted
by law, Employee shall provide notice to the Company within 72 hours of receiving such notice and agrees to (A) meet with the Company’s
representatives and attorneys (B) provide the attorneys with any documents requested, and (C) prepare for any appearance with the
Company’s attorneys.

 

c.                  
Employee, at Employee’s own expense, may retain Employee’s own counsel, in lieu of or in addition to, the Company’s
counsel.

 

d.                 
Failure to comply with the terms of this Section 8 shall constitute a material breach of this Separation Agreement.

 

10.             
Nonadmission of Wrongdoing. The Parties agree that neither this Separation Agreement nor the furnishing of
the consideration for this Separation Agreement shall be deemed or construed at any time for any purpose as an admission by Releasees
of wrongdoing or evidence of any liability or unlawful conduct of any kind.

 

11.             
Assignment; Successors. SPI shall have the right to assign this Separation Agreement and to delegate all rights,
duties and obligations hereunder to any entity that controls the Company, that the Company controls or that may be the result of
the merger, consolidation, acquisition or reorganization of the Company and another entity; provided, the Company shall require
any successor entity (whether as a result of a merger, consolidation, acquisition or reorganization) to all or substantially all
of the business and/or assets of the Company to expressly assume and agree to perform this Separation Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had taken place.

 

12.             
Amendment. This Separation Agreement may not be modified, altered or changed except in writing and signed
by both parties wherein specific reference is made to this Separation Agreement.

 

13.             
Entire Agreement. This Separation Agreement sets forth the entire agreement between the parties hereto, and
fully supersedes any prior agreements or understandings between the parties, except for the Employment Agreement, which is incorporated
by reference and remains in effect, as amended herein, until the Separation Date. Employee acknowledges that Employee has not relied
on any representations, promises, or agreements of any kind made to Employee in connection with Employee’s decision to accept
this Separation Agreement, except for those set forth in this Separation Agreement.

 

    

     

    

EMPLOYEE
IS ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT. EMPLOYEE ALSO IS ADVISED TO CONSULT
WITH AN ATTORNEY PRIOR TO EMPLOYEE’S SIGNING OF THIS AGREEMENT.

 

EMPLOYEE
MAY REVOKE THIS AGREEMENT FOR A PERIOD OF SEVEN (7) CALENDAR DAYS FOLLOWING THE DAY EMPLOYEE SIGNS THIS AGREEMENT. ANY REVOCATION
WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO MAX DONLEY, EVP, GLOBAL HR, IT AND STRATEGY, AT 805 KING FARM BLVD., SUITE
550, ROCKVILLE, MD 20850, AND STATE, "I HEREBY REVOKE OUR AGREEMENT." THE REVOCATION MUST BE PERSONALLY DELIVERED TO
MAX DONLEY OR HIS DESIGNEE, OR MAILED TO MAX DONLEY AND POSTMARKED WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS AGREEMENT.

 

EMPLOYEE
AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL
UP TO TWENTY-ONE CALENDAR DAY CONSIDERATION PERIOD.

 

EMPLOYEE
ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE TERMS OF THIS AGREEMENT. EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION,
ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL KNOWN AND UNKNOWN CLAIMS (AS ALLOWED BY LAW) WHICH HE MAY
HAVE AGAINST RELEASEES, INCLUDING CLAIMS PURSUANT TO THE AGE DISCRIMINATION IN EMPLOYMENT ACT.

 

The Parties knowingly and voluntarily
sign this Separation Agreement as set forth below:

 

 

	 	 	 	Sucampo Pharmaceuticals, Inc.
	 	 	 	 	 
	By:	/s/ Andrew Smith	 	By:	/s/
Max Donley
	 	Andrew Smith	 	 	Max Donley
	 	 	 	 	EVP, Global HR, IT & Strategy
	 	 	 	 	 
	 	 	 	 	 
	Date: 	March 17, 2017	 	Date:
	March 27, 2017

 

 

 

 

    

     

    

EXHIBIT 2

 

GENERAL
RELEASE

(“Release”)

 

 

1.     
General Release, Claims Not Released and Related Provisions.

 

Sucampo
Pharmaceuticals, Inc. (“SPI”) and Andrew Smith (“Employee”) agree that as a condition to and in consideration
of the separation benefits payable by SPI to Employee pursuant to the Employee’s signed Confidential Separation Agreement
and General Release (“Separation Agreement”):

 

a.                  
General Release of All Claims. Employee knowingly and voluntarily releases and forever discharges SPI, its
parent, affiliates, subsidiaries, joint ventures, holding companies, divisions, predecessors, successors and assigns (collectively,
“the Company”), and their current and former employees, attorneys, officers, directors, board committee members, shareholders,
and agents thereof, both individually and in their business capacities, and their insurers, employee benefit plans and programs
and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement as “Releasees”),
of and from any and all claims, known and unknown, asserted or unasserted, which the Employee has or may have against Releasees
as of the date of execution of this Agreement, including, but not limited to, any alleged violation of:

 

		§	Title VII of the Civil Rights Act of 1964;

		§	Sections 1981 through 1988 of Title 42 of the United States Code;

		§	The Employee Retirement Income Security Act of 1974 ("ERISA") (as modified below);

		§	The Immigration Reform and Control Act;

		§	The Americans with Disabilities Act of 1990;

		§	The Age Discrimination in Employment Act of 1967 (“ADEA”);

		§	The Worker Adjustment and Retraining Notification Act;

		§	The Fair Credit Reporting Act;

		§	The Family and Medical Leave Act;

		§	The Equal Pay Act;

		§	The Genetic Information Nondiscrimination Act of 2008;

		§	All Maryland laws including:

		§	Maryland Human Relations Act – Md. State Government Code Ann. §
20-101 et seq., any regulations thereunder, and any human rights law of any Maryland county or municipality;

		§	Maryland Statutory Provision Regarding Retaliation/Discrimination for Filing a Workers’
Compensation Claim – Md. Labor & Employment Code § 9-1105;

    

     

    

		§	Maryland Equal Pay Law – Md. Labor & Employment Code § 3-301 et seq.;

		§	Maryland Adoption Leave Law – Md. Labor & Employment Code §§ 3-801 and 3-
802;

		§	Maryland Medical Information Bias Law – Md. Labor & Employment Code § 5- 604;

		§	Maryland Volunteer/Civil Air Patrol Law – Md. Labor & Employment Code § 3- 703;

		§	Maryland Military Leave Law – Md. Public Safety Code § 13-705;

		§	Maryland law protecting witnesses, jurors and victims who attend court proceedings – Md.
Courts and Judicial Proceedings Code §§ 8-105, 9-205;

		§	Maryland Day of Rest Law – Md. Labor & Employment Code § 3-704;

		§	Maryland Lie Detector Law – Md. Labor & Employment Code § 3-702;

		§	Maryland Workplace Fraud Act, Md. Labor & Employment Code § 3-901 et seq.;

		§	Maryland Job Applicant Fairness Act – Md. Labor & Employment Code § 3-711, effective
October 1, 2011;

		§	Maryland Wage and Hour Laws – Md. Labor & Employment Code §§ 3-401 et seq.
and 3-501 et seq.;

		§	Maryland Occupational Safety & Health Act, as amended – Md. Labor & Employment
Code § 5-101 et seq.;

		§	Maryland Flexible Leave Act;

		§	Maryland Pay Disparity Act;

		§	any other statutory claims;

		§	any other federal, state or local law, rule, regulation, or ordinance;

		§	any public policy, contract, tort, or common law; or

		§	any basis for recovering costs, fees, or other expenses including attorneys' fees incurred in
these matters.

 

Subject
to the limitations below, Employee agrees not to institute a lawsuit against any Releasee alleging any claim that Employee is releasing
in this Agreement. Employee agrees that, if Employee challenges the validity of this Agreement, Employee shall return to SPI all
the consideration Employee received from SPI under this Agreement.

 

b.                  
Claims Not Released. Employee is not waiving any rights Employee may have to: (a) Employee’s own vested
accrued employee benefits under any SPI health, welfare, retirement benefit or stock plans as of the Separation Date; (b) benefits
and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (c) pursue
claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement; (e) challenge the validity of this
Agreement; and/or (f) seek indemnification, advancement, contribution or defense by SPI under SPI’s D&O liability coverage,
bylaws and/or Delaware law.

 

    

     

    

c.                  
Governmental Agencies. Nothing in this Agreement prohibits or prevents Employee from filing a charge with
or participating, testifying, or assisting in any investigation, hearing, whistleblower proceeding or other proceeding before any
federal, state, or local government agency (e.g. EEOC, NLRB, SEC., etc.), nor does anything in this Agreement preclude, prohibit,
or otherwise limit, in any way, Employee’s rights and abilities to contact, communicate with, report matters to, or otherwise
participate in any whistleblower program administered by any such agencies. However, to the maximum extent permitted by law, Employee
agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or
other individual remedies.

 

d.                 
Collective/Class Action Waiver. If any claim is not subject to release, to the extent permitted by law, Employee
waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified
class, collective or multi-party action or proceeding based on such a claim in which SPI or any other Releasee identified in this
Agreement is a party.

 

		2.	Acknowledgments and Affirmations.

 

Employee acknowledges and affirms
that:

 

a.                  
Employee has not filed, caused to be filed, or presently is a party to any claim against the Company;

 

b.                 
Employee has been paid and/or has received all compensation, wages, bonuses, commissions, and/or benefits which are due
and payable as of the date Employee signs this Agreement;

 

c.                  
Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or related state
or local leave or disability accommodation laws;

 

 d.                  
 Employee has no known workplace injuries or occupational diseases;

 

e.                  
Employee has not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including
any allegations of corporate fraud;

 

f.                  
All of the Company’s decisions regarding Employee's pay and benefits through the date of Employee's execution of this
Agreement were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification
protected by law; and that

 

g.                 
Employee has not divulged any of the Company’s proprietary or confidential information of the Company and shall continue
to maintain the confidentiality of such information consistent with the Company’s policies and Employee’s agreement(s)
with SPI and/or common law, including the terms of the Employment Agreement, which is incorporated by reference and remains in
effect.

 

    

     

    

3.     
Governing Law and Arbitration. This Release shall be governed and conformed in accordance with Maryland law without
regard to Maryland’s conflict of laws provision. Any controversy, claim, or breach arising out of or relating to this Release
shall be arbitrated in the State of Maryland in accordance with the rules of the American Arbitration Association for employment
disputes. SPI shall pay the case initiation fee for any such arbitration. The arbitrator shall have the authority to award attorneys’
fees and costs incurred to the prevailing party. Should any provision of this Release be declared illegal or unenforceable by any
court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision
shall immediately become null and void, leaving the remainder of this Release in full force and effect.

 

4.     
Nonadmission of Wrongdoing. The Parties agree that neither this Release nor the furnishing of the consideration
for this Release shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence
of any liability or unlawful conduct of any kind.

 

5.     
Assignment. SPI shall have the right to assign this Release and to delegate all rights, duties and obligations
hereunder to any entity that controls the Company, that the Company controls or that may be the result of the merger, consolidation,
acquisition or reorganization of the Company and another entity; provided, the Company shall require any successor entity (whether
as a result of a merger, consolidation, acquisition or reorganization) to all or substantially all of the business and/or assets
of the Company to expressly assume and agree to perform this Separation Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had taken place..

 

6.     
Amendment. This Release may not be modified, altered or changed except in writing and signed by both parties
wherein specific reference is made to this Release.

 

7.     
Entire Agreement. This Release sets forth the entire agreement between the parties hereto, and fully supersedes
any prior agreements or understandings between the parties, except for Employee’s signed Employment Agreement (as amended)
and Employee’s signed Separation Agreement, both of which are incorporated by reference and remain in full force and effect.
Employee acknowledges that Employee has not relied on any representations, promises, or agreements of any kind made to Employee
in connection with Employee’s decision to execute this Release, except for those set forth in this Release and the Separation
Agreement.

 

EMPLOYEE
IS ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS RELEASE. EMPLOYEE ALSO IS ADVISED TO CONSULT
WITH AN ATTORNEY PRIOR TO EMPLOYEE’S SIGNING OF THIS RELEASE.

 

    

     

    

EMPLOYEE
MAY REVOKE THIS RELEASE WITH RESPECT TO CLAIMS UNDER TO THE AGE DISCRIMINATION IN EMPLOYMENT ACT FOR A PERIOD OF SEVEN (7)
CALENDAR DAYS FOLLOWING THE DAY EMPLOYEE SIGNS THIS RELEASE. ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO
MAX DONLEY, EVP, GLOBAL HR, IT AND STRATEGY, AT 805 KING FARM BLVD., SUITE 550, ROCKVILLE, MD 20850, AND STATE, "I HEREBY
REVOKE MY WAIVER OF CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT." THE REVOCATION MUST BE PERSONALLY DELIVERED TO
MAX DONLEY OR HIS DESIGNEE, OR MAILED TO MAX DONLEY AND POSTMARKED WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS RELEASE.
THE PARTIES AGREE THAT THE CONSIDERATION IN SECTION 4 OF THE SEPARATION AGREEMENT IS ALLOCATED AS FOLLOWS: $150,000 TO EMPLOYEE’S
WAIVER OF ADEA CLAIMS, AND THE REMAINDER TO EMPLOYEE’S WAIVER OF OTHER CLAIMS.

 

EMPLOYEE
AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS RELEASE, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL
UP TO TWENTY-ONE CALENDAR DAY CONSIDERATION PERIOD.

 

EMPLOYEE
AGREES THAT EMPLOYEE HAS READ AND UNDERSTANDS THE TERMS OF THIS RELEASE. EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION,
ENTERS INTO THIS RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST RELEASEES.

 

The Parties knowingly
and voluntarily sign this Release as of the date(s) set forth below:

 

 

	 	 	 	Sucampo Pharmaceuticals, Inc.
	 	 	 	 	 
	By:	/s/ Andrew Smith	 	By:	/s/
Max Donley
	 	Andrew Smith	 	 	Max Donley
	 	 	 	 	EVP, Global HR, IT & Strategy
	 	 	 	 	 
	 	 	 	 	 
	Date: 	March 17, 2017	 	Date:
	May 23, 2017

 

 

    

     

    

EXHIBIT
3

 

SEPARATION
BENEFITS

 

 

		(A)	A lump sum payment of US$366,795.60, which corresponds to Employee’s
current annual base salary;

 

		(B)	The amount of any COBRA continuation premium payments made by Employee during
the 12-month period following the date of termination, or the period ending when Executive becomes eligible for comparable group
medical benefits coverage from another source (whichever comes first);

 

		(C)	Full vesting of Employee’s unvested equity incentive awards listed in Schedule 1. Notwithstanding
any provisions to the contrary in the award agreements or plan documents relating to such equity incentive awards, the right to
exercise any equity option shall terminate six months after the Separation Date (to allow the Employee appropriate time to exercise
as he may be prevented from trading as a result of a mandatory trading blackout).

 

		(D)	Upon receipt of expense reports with sufficient backup documentation within
30 days after the expenses were incurred, SPI shall reimburse Employee for up to US$20,000 of repatriation assistance to cover:

 

		a.	Direct airfare for Employee and Employee’s family (including pets, if any) from the U.S. to
Switzerland or U.K;

		b.	Shipment of household goods;

		c.	Temporary accommodations for up to three months prior to moving into permanent quarters; and

		d.	Costs and fees incurred in connection with the early termination of any leases due to Employee’s
repatriation.

 

		(E)	Outplacement services with Challenger, Gray and Christmas as further described
in Schedule 2.

 

		(F)	Tax preparation and equalization, as set forth in Employee’s Assignment
Letter dated October 27, 2015, attached as Schedule 3, for the year ending December 31, 2017 and any other year in which Employee
receives foreign income from Employer.

 

		(G)	An amount of US$ 16,928.38 in respect of accrued unpaid PTO (96 hours) as
of March 20, 2017.Exhibit 10.2

 

SEPARATION AGREEMENT AND RELEASES

 

This Separation Agreement
and Releases ("Separation Agreement") is made and entered into as of June 6, 2017, by and between Matthias Alder
(hereinafter "Executive") and Sucampo Pharmaceuticals, Inc. ("SPI"), a corporation organized under the
laws of the State of Delaware, and its affiliates (hereinafter collectively referred to as the "Company").

 

WHEREAS, Executive
and SPI are parties to an Employment Agreement dated as of October 21, 2014 (hereinafter, the "Employment Agreement");

 

WHEREAS, Executive
and Company intend to settle any and all claims that Executive may have against Company as a result of any act, occurrence, decision,
event or omission occurring at any time prior to the signing of this Separation Agreement, including, but not limited to, any matter
or fact arising out of Executive's employment with SPI, compensation during the employment, the termination of Executive's employment,
or the events giving rise to the Employment Agreement or this Separation Agreement;

 

WHEREAS, the
parties have had extensive negotiations concerning the terms and conditions of the Executive's separation arrangement from the
Company, and they have agreed upon such terms and conditions as set forth in this Separation Agreement;

 

NOW, THEREFORE,
in consideration of the severance payments and benefits, obligations and covenants all contained herein, the parties agree
as follows:

 

1.                 
Termination of Employment. Executive's
last day of employment with the Company is June 30, 2017 (the “Separation Date”). After that date, Executive shall
have no role or relationship with or obligation to the Company except as set forth in this Separation Agreement.

 

    1 

     

    

2.                 
Separation Agreement.

 

A.               
Executive understands that any payments or benefits paid or granted to him pursuant to this Separation Agreement represent
consideration for signing this Separation Agreement and are not salary, wages or benefits to which Executive was already entitled.
Executive understands that, in light of the circumstances surrounding his employment with the Company, the Company and Executive
agreed to terminate the Employment Agreement, but in consideration for Executive's execution of this Separation Agreement, the
Company has agreed to provide Executive with payment and benefits in excess of the payments and benefits described in the Employment
Agreement for such termination. Executive understands that he shall not receive any payments or benefits from the Company unless
(a) he executes this Separation Agreement and does not revoke it within the time period permitted herein, and (b) he complies with
all obligations in this Separation Agreement and does not breach it. Pursuant to the terms of this Separation Agreement, Executive
shall receive the following benefits:

 

		a.	a
lump sum severance payment of $420,842.16, less all taxes and withholdings, to be made by no later than ten (10) business days
following the execution of Exhibits A and B in accordance with Section 9 of this Separation Agreement without any
revocation having occurred; and

 

		b.	in the event Executive elects COBRA, the COBRA
continuation premium payments shall be made by the Company during the twelve (12) month 

period following the termination date; and

 

    2 

     

    

		c.	payment for Executive’s accrued and unused
PTO through June 30, 2017, which amounts to $40,464, 03; and

 

		d.	full vesting of Executive’s unvested
equity incentive awards listed in Exhibit C. Notwithstanding any provisions to the contrary in the award agreements or plan
documents relating to such equity incentive awards, the right to exercise any equity option shall terminate six months after the
Separation Date (to allow the Employee appropriate time to exercise as he may be prevented from trading as a result of a mandatory
trading blackout); and

 

		e.	payment of the Executive’s target bonus
for 2017 prorated for the time of service (i.e. 6 months), which amounts to $121,413.00.

 

3.                 
Release of Claims by Executive.

 

A.       Executive
and the Company intend to settle any and all claims that Executive may have against the Company as a result of the hiring of Executive,
Executive's employment, Executive's compensation while employed, and the termination of Executive's employment. Executive agrees
that in exchange for SPI's promises in the Agreement and in exchange for the separation pay and benefits to be paid to Executive
as described in the Agreement, Executive, on behalf of Executive and Executive's heirs, successors and assigns, hereby releases
and forever discharges the Company, its predecessors, successors, and assigns, and their respective boards of directors, board
committees, officers, directors, shareholders, agents, employees, and insurers (the "Released Parties"), from all liability
for damages and from all claims that Executive may have against the Released Parties arising from or relating to the hiring of
Executive, Executive's compensation while employed, Executive's employment, the termination of Executive's employment, and any
other actions, decisions, alleged omissions, or events occurring on or prior to the signing of this Separation Agreement.

 

    3 

     

    

B.                
Executive understands and agrees that Executive's release of claims in this Separation Agreement includes, but is not limited
to, any claims Executive may have under Title VII of the Federal Civil Rights Act of 1964, as amended; the Americans with Disabilities
Act, the Equal Pay Act, the Fair Labor Standards Act, the Employee Retirement and Income Security Act, the Age Discrimination in
Employment Act, the Family and Medical Leave Act, the Maryland Fair Employment Practices Statute (formerly referred to as Article
49 B) - MD. Code Ann., State Gov't § 20-601 et seq.; Maryland Lily Ledbetter Civil Rights Restoration Act - MD. Code Ann.,
State Gov't § 20-607 (b); Maryland Equal Pay Law- MD. Code Ann., Lab. & Emp. § 3-301 et seq.; Maryland Wage Payment
and Collection Law - MD. Code Ann., Lab. & Emp. § 3-501 et seq.; Maryland Wage Hour Law - MD. Code Ann., Lab. & Emp.
§ 3-401 et seq.; Maryland Worker's Compensation Act - MD. Code Ann., Lab. & Emp. § 9-101 et seq.; Maryland Occupational
Safety and Health Law - MD. Code Aim., Lab. & Emp. § 5-101 et seq. or any other federal, state, or local statute, ordinance,
or law.

 

C.                
Executive also understands that Executive is giving up all other claims, whether grounded in contract or tort theories,
including, but not limited to, wrongful discharge, breach of contract, tortious interference with contractual relations, promissory
estoppel, detrimental reliance, breach of the implied covenant of good faith and fair dealing, breach of express or implied promise,
breach of manuals or other policies, breach of fiduciary duty, assault, battery, fraud, invasion of privacy, intentional or negligent
misrepresentation, defamation, including libel, slander, discharge defamation and self-publication defamation, discharge in violation
of public policy, whistleblower, intentional or negligent infliction of emotional distress, or any other theory, whether legal
or equitable.

 

    4 

     

    

D.               
Executive shall not institute any lawsuit against the Released Parties arising from or relating to the hiring of Executive,
Executive's employment, Executive's compensation while employed, the termination of Executive's employment, or any other actions,
decisions, alleged omissions, or events occurring prior to the signing of this Separation Agreement.

 

E.                
To the extent required by law, nothing contained in this Separation Agreement shall be interpreted to prevent Executive
from filing a charge with a governmental agency or participating in or cooperating with an investigation conducted by a governmental
agency. However, Executive agrees that Executive is waiving the right to any monetary damages or other individual legal or equitable
relief awarded as a result of any such proceeding related to any claim against the Released Parties arising from or relating to
the hiring of Executive, Executive's employment, Executive's compensation while employed, the termination of Executive's employment,
or any other actions, decisions, alleged omissions, or events occurring on or prior to the signing of this Separation Agreement.

 

F.                 
Notwithstanding any of the foregoing, this Separation Agreement shall not apply with respect to any rights or claims which
Executive may have under this Separation Agreement itself or to any rights or benefits Executive may have related to vested accrued
benefits under the terms of the Company's benefit plans or to the Executive's right to be indemnified by the Company pursuant to
the terms of its bylaws and the law of the State of Delaware.

 

    5 

     

    

G.               
Executive expressly acknowledges that he has been given the opportunity to take twenty-one (21) days to review this Separation
Agreement before signing it, and that he has been advised to consult with an attorney before signing it. Executive acknowledges
that he understands that he may revoke this Separation Agreement, insofar as it extends to potential claims under the Age Discrimination
in Employment Act, by informing the Company of Executive's intent to revoke this release within seven (7) days following the execution
of this Separation Agreement, and that this Separation Agreement is not effective or enforceable until that seven-day revocation
period has expired. Executive understands that any such revocation must be stated in writing and delivered by hand, or by certified
mail-return receipt requested, to LaKisha Partman, Human Resources Department, Sucampo Pharmaceuticals, Inc., 805 King Farm Blvd
#550, Rockville, MD 20850. If Executive exercises this right to revoke or rescind, the Company shall have no obligation to provide
severance pay or benefits to Executive as provided by the Agreement.

 

H.               
Executive acknowledges that the Company's obligation to provide any severance pay or benefits pursuant to the Agreement
shall not become effective or enforceable until this Separation Agreement has been executed and the revocation period identified
above has expired without notice of revocation having been made.

 

I.                  
Executive agrees that he shall forfeit all amounts payable by the Company under this Separation Agreement if he challenges
the validity of this Separation Agreement. Executive also agrees that if he violates this Separation Agreement by suing the Company
or the other Released Parties, in the event that the Company is the prevailing party, Executive shall pay all costs and expenses
of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees, and return all payments received
by Executive on or after the termination of his employment.

 

    6 

     

    

J.                  
Executive hereby acknowledges and states that Executive has read this Separation Agreement, this Separation Agreement is
written in language which is understandable to Executive, that Executive fully appreciates the meaning of the terms of this Separation
Agreement, and that Executive enters into this Separation Agreement freely and voluntarily.

 

4.                 
Release of Claims by Company. The Company,
its boards of directors, board committees, officers, directors, shareholders, agents, and employees agree and forever discharge
and release Executive, his heirs, assign, executors and administrators from any and all currently known claims, actions, causes
of action, grievances, arbitrations, suits, proceedings, debts, controversies, agreements, attorney fees, judgments, demands, and
damages whatsoever, in law or equity, arising from or relating to any actions, decisions, alleged omissions, or events occurring
on or prior to the signing of this Separation Agreement, except any action or proceeding which the Company may be required or requested
to take against Executive as a result of any regulatory agency action. This includes any currently known claims arising from or
relating to Executive's employment with, and recruitment to, the Company, and Executive's termination of employment. Nothing in
this Separation Agreement releases or waives Company's right to enforce any breach or violation of this Separation Agreement.

 

5.                 
Confidentiality. Executive agrees that
this Separation Agreement and the Employment Agreement are confidential and agrees not to disclose any information regarding the
terms of this Separation Agreement or the Employment Agreement, except to his immediate family and any tax, legal or other counsel
he has consulted regarding the meaning or effect hereof or as required by law, and he shall instruct each of the foregoing not
to disclose the same to anyone. The Company agrees to disclose any such information only to any tax, legal or other counsel of
the Company as required by law. Further, Executive shall not affirmatively make any public or private statements about his employment
or separation from the Company except to his immediate family and any tax, legal or other counsel he has retained, unless authorized
in writing by the Company; except however, that in response to any inquiries from any media or third party, Executive only can
state that "Executive and the Company have agreed to part ways on an amicable basis upon the conclusion of the Employment
Agreement." Company shall provide dates of employment and positions held by Executive in response to any inquiry made by a
third party for any purpose regarding Executive's employment by the Company, and shall not be required to provide any other reference
for Executive, whether oral or written.

 

    7 

     

    

6.                 
Executive Cooperation.

 

A.               
As long as there is no conflict between Executive's legal interests and those of the Company, Executive agrees that he shall,
to the extent reasonably requested in writing, cooperate with and serve in any capacity requested by the Company in any investigation
and/or threatened or pending litigation (now or in the future) in which the Company is a party, and regarding which Executive,
by virtue of his employment with the Company, has knowledge or information relevant to said investigation or litigation including,
but not limited to (i) meeting with representatives of the Company to prepare for testimony and to provide truthful information
regarding his knowledge, (ii) acting as the Company's representative, and (iii) providing, in any jurisdiction in which the Company
requests, truthful information or testimony relevant to the investigation or litigation. Company agrees to reimburse Executive's
reasonable expenses incurred for his cooperation under this Section 6.

    8 

     

    

B.                
Executive also agrees to cooperate with the Company and its counsel in connection with any matters relating to the Company
in which Executive has been compelled, by subpoena or other compulsory, to testify or produce documents. Executive shall provide
notice to the Company within 48 hours of receiving such notice and agrees to (i) meet with the Company's representatives and attorneys
(ii) provide the attorneys with any documents requested, and (iii) prepare for any appearance with the Company's attorneys.

 

C.                
Executive, at his own expense, may retain his own counsel, in lieu of or in addition to, the Company's counsel. Executive's
appointment of his own counsel shall in no way interfere with his obligation to cooperate with the Company as described herein.

 

7.                 
Mutual Non-Disparagement. Executive
and the Company agree that, at all 

times following the signing of this Separation Agreement, they shall not engage in any disparagement
or vilification of the other, and shall refrain from making any false, negative, critical or otherwise disparaging statements,
implied or expressed, concerning the other, including, but not limited to, the management style, methods of doing business, the
quality of products and services, role in the community, treatment of employees or the circumstances and events regarding Executive's
employment separation. Executive acknowledges that the only persons whose statements may be attributed to the Company for purposes
of this Separation Agreement not to make disparaging statements shall be each member of the Board of Directors of the SPI and each
of SPI's senior executive officers. The parties further agree to do nothing that would damage the other's business reputation or
goodwill. Nothing in this Separation Agreement prevents the Company responding to subpoenas, government inquiries or other obligations
they may have under the law or from reporting criminal activities to appropriate authorities.

    9 

     

    

8.                 
Employment Agreement Provisions Incorporated Into Separation Agreement.

 

A.               
Executive and the Company shall be bound by and comply with all provisions of Article 5 of the Employment Agreement, for
the durations expressly stated in Article 5, all of which are incorporated by reference into this Separation Agreement, except
that Article 5 of the Employment Agreement is amended as follows:

 

i.       The
first sentence of Article 5.1(b) of the Employment Agreement is replaced with the following sentence:

 

“Confidential Information”
means all confidential and proprietary information of the Company, its parent, subsidiaries, predecessors and affiliates, whether
in written, oral, electronic or other form that provides an unknown competitive advantage to a third party or provides a competitive
advantage to SPA, including but not limited to: trade secrets as defined by the federal Defend Trade Secrets Act of 2016 (the “DTSA”);
technical, scientific or business information; processes; works of authorship; inventions; discoveries; developments; systems;
chemical compounds; computer programs; code; algorithms; formulae; methods; ideas; test data; know how; functional and technical
specifications; designs; drawings; passwords; analyses; business plans; information regarding actual or demonstrably anticipated
business, research or development; marketing, sales and pricing strategies; and health-related or personal identifying information
(Social Security Numbers or personal contact information) of the Company's current consultants, customers, licensors, licensees,
investors and personnel.

 

ii.       The
second sentence of Article 5.1(b) of the Employment Agreement is amended by adding:

 

or (v) constitutes legally protected
speech, such as protected concerted activity under Section 7 of the National Labor Relations Act.

 

iii.       The
following paragraph is inserted after the last sentence of Article 5.1(b) of the Employment Agreement:

    10 

     

    

Under the DTSA, Executive shall not be
held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: 
(a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney;
and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made to Executive’s
attorney in relation to a lawsuit for retaliation against Executive for reporting a suspected violation of law; or (c) is made
in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

B.                
Aside from Article 5 of the Employment Agreement, which is incorporated herein, this Separation Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and supersedes all other agreements, oral or written, heretofore
made with respect thereto including, without limitation, the Employment Agreement.

 

C.                
No provision of this Separation Agreement may be amended, modified, changed, altered, or supplemented except by a writing
that is signed by Executive and by the Company.

 

9.                 
Post-Employment General Release and Termination Certificate.
As consideration for the payments and benefits Executive receives under this Separation Agreement, Executive agrees to execute
the Termination Certificate attached as Exhibit A and the General Release as Exhibit B to this Separation Agreement.
If Executive fails to execute and return such documents to the Company by July 10, 2017, or revokes the General Release after executing
it, Executive forfeits his right to all payments and benefits in the Separation Agreement.

 

10.             
Indemnification Rights. In the event
Executive is named as a defendant in a lawsuit because of his role as an officer, manager, or employee of the Company, Executive
shall be entitled to the same indemnification rights and directors and officers liability coverage he had while employed by the
Company. In any such lawsuit, the Executive shall have the option of designating counsel for his representation reasonably acceptable
to the Company, and Executive agrees that his counsel shall enter into a joint defense agreement with the attorneys for the Company
and any of its officers, directors, shareholders, employees, or other agents or representatives with respect to their common defense.

    11 

     

    

11.             
Severability. Any provisions of this
Separation Agreement that may be prohibited by, or unlawful or unenforceable under, any applicable law of any jurisdiction shall,
as to such jurisdiction, be ineffective without affecting any other provision hereof. To the full extent, however, that the provisions
of such applicable law may be waived, they are hereby waived, to the end that this Separation Agreement be deemed to be a valid
and binding agreement enforceable in accordance with its terms.

 

12.             
Controlling Law. This Separation Agreement
has been entered into by the parties in the State of Maryland and shall be continued and enforced in accordance with the laws of
Maryland.

 

13.             
Arbitration. Any controversy, claim,
or breach arising out of or relating to this Separation Agreement or the breach thereof shall be settled by arbitration in the
State of Maryland in accordance with the rules of the American Arbitration Association for commercial disputes and the judgment
upon the award rendered shall be entered by consent in any court having jurisdiction thereof; provided, however, that this
provision shall not preclude the Company from seeking injunctive or similar relief from the courts to enforce its rights under
the Employment Covenants set forth in Article 5 of the Employment Agreement as incorporated into this Separation Agreement.

 

14.             
Assignments. Subject to obtaining Executive's
prior approval, which shall not be unreasonably withheld or delayed, the Company shall have the right to assign this Separation
Agreement and to delegate all rights, duties and obligations hereunder to any entity that controls the Company, that the Company
controls or that may be the result of the merger, consolidation, acquisition or reorganization of the Company and another entity.
Executive agrees that this Separation Agreement is personal to Executive and Executive's rights and interest hereunder may not
be assigned, nor may Executive's obligations and duties hereunder be delegated (except as to delegation in the normal course of
operation of the Company), and any attempted assignment or delegation in violation of this provision shall be void.

 

    12 

     

    

EXECUTIVE ACKNOWLEDGES THAT HE HAS READ
THIS ENTIRE SEPARATION AGREEMENT CAREFULLY, AS THIS SEPARATION AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS (AS
ALLOWED BY LAW) WHICH HE MAY HAVE AGAINST THE COMPANY INCLUDING CLAIMS PURSUANT TO THE AGE DISCRIMINATION IN EMPLOYMENT ACT.

 

(Signature page appears on the
following page.)

 

    13 

     

    

IN WITNESS WHEREOF,
Executive after due consideration and consultation, has authorized, executed, and delivered this Separation Agreement all
as of the date first above written.

 

	 	 	 	Sucampo Pharmaceuticals, Inc.
	 	 	 	 	 
	By:	/s/ Matthias Alder	 	By:	/s/
Max Donley
	 	Matthias Alder	 	 	Max Donley
	 	 	 	 	EVP, Global HR, IT & Strategy
	 	 	 	 	 
	 	 	 	 	 
	Date: 	June 6, 2017	 	Date:
	June 6, 2017

 

    14 

     

    

EXHIBIT A

 

 

TERMINATION CERTIFICATE

 

I hereby certify that I do not have in
my possession or under my control, nor have I failed to return, any "Company Materials" as defined in that certain Employment
Agreement entered into before Sucampo Pharmaceuticals, Inc., a Delaware corporation, and me, dated as of October 21, 2014. I further
certify that I have complied with and shall continue to comply with all the terms of the Separation Agreement.

 

 

 

	 	 	 
	 	 	 
	By:	/s/ Matthias Alder	 
	 	Matthias Alder	 
	 	 	 
	 	 	 
	 	 	 
	Date: 	June 30, 3017	 

 

 

 

 

    15 

     

    

EXHIBIT B

 

GENERAL RELEASE

 

This General Release is made and entered
into as of the 30th day of June, 2017 (the "Separation Date"), by and between Matthias Alder (hereinafter "Executive")
and Sucampo Pharmaceuticals, Inc. ("SPI"), a corporation organized under the laws of the State of Delaware, and
its affiliates (hereinafter collectively referred to as the "Company").

 

WHEREAS, Executive
and SPI are parties to Separation and Release Agreement dated as of June 6, 2017 (hereinafter, the "Separation Agreement");

 

WHEREAS, Executive
and Company intend to settle any and all claims that Executive may have against Company as a result of any act, occurrence, decision,
event or omission occurring at any time after the signing of the Separation Agreement, including, but not limited to, any matter
or fact arising out of Executive's employment with SPI, the termination of Executive's employment, or the events giving rise to
the Separation Agreement or this General Release;

 

WHEREAS, under
the terms of the Separation Agreement, Executive promised to enter into this General Release as a condition precedent to the separation
payments and benefits to be provided under the Separation Agreement;

 

NOW,
THEREFORE, in consideration of the payments and benefits, obligations and covenants contained in the Separation Agreement
herein, the parties agree as follows:

 

1.                 
Release of Claims by Executive. Executive and the Company intend to settle any and all claims that Executive
may have against the Company as a result of the hiring of Executive, Executive's employment, Executive's compensation while employed,
and the termination of Executive's employment. Executive agrees that in exchange for SPI's promises in the Separation Agreement
and in exchange for the separation pay and benefits to be paid to Executive as described in the Separation Agreement, Executive,
on behalf of Executive and Executive's heirs, successors and assigns, hereby releases and forever discharges the Company, its predecessors,
successors, and assigns, and their respective boards of directors, board committees, officers, directors, shareholders, agents,
employees, and insurers (the "Released Parties"), from all liability for damages and from all claims that Executive may
have against the Released Parties arising from or relating to the hiring of Executive, Executive's compensation while employed,
Executive's employment, the termination of Executive's employment pursuant to any other actions, decisions, alleged omissions,
or events occurring on or prior to the signing of this General Release.

    16 

     

    

A.       Executive
understands and agrees that Executive's release of claims in this General Release includes, but is not limited to, any claims Executive
may have under Title VII of the Federal Civil Rights Act of 1964, as amended; the Americans with Disabilities Act, the Equal Pay
Act, the Fair Labor Standards Act, the Employee Retirement and Income Security Act, the Age Discrimination in Employment Act, the
Family and Medical Leave Act, the Maryland Fair Employment Practices Statute (formerly referred to as Article 49 B) - MD. Code
Ann., State Gov't § 20-601 et seq.; Maryland Lily Ledbetter Civil Rights Restoration Act - MD. Code Ann., State Gov't §
20-607 (b); Maryland Equal Pay Law- MD. Code Ann., Lab. & Emp. § 3-301 et seq.; Maryland Wage Payment and Collection Law
- MD. Code Ann., Lab. & Emp. § 3-501 et seq.; Maryland Wage Hour Law - MD. Code Ann., Lab. & Emp. § 3-401 et
seq.; Maryland Worker's Compensation Act - MD. Code Ann., Lab. & Emp. § 9-101 et seq.; Maryland Occupational Safety and
Health Law - MD. Code Ann., Lab. & Emp. § 5-101 et seq., or any other federal, state, or local statute, ordinance, or
law.

    17 

     

    

B.                
Executive also understands that Executive is giving up all other claims, whether grounded
in contract or tort theories, including, but not limited to, wrongful discharge, breach of contract, tortious interference with
contractual relations, promissory estoppel, detrimental reliance, breach of the implied covenant of good faith and fair dealing,
breach of express or implied promise, breach of manuals or other policies, breach of fiduciary duty, assault, battery, fraud, invasion
of privacy, intentional or negligent misrepresentation, defamation, including libel, slander, discharge defamation and self-publication
defamation, discharge in violation of public policy, whistleblower, intentional or negligent infliction of emotional distress,
or any other theory, whether legal or equitable.

 

C.                
Executive shall not institute any lawsuit against the Released Parties arising from or relating
to the hiring of Executive, Executive's employment, Executive's compensation while employed, the termination of Executive's employment,
or any other actions, decisions, alleged omissions, or events occurring prior to the signing of this General Release.

 

D.                
To the extent required by law, nothing contained in this General Release shall be interpreted
to prevent Executive from filing a charge with a governmental agency or participating in or cooperating with an investigation conducted
by a governmental agency. However, Executive agrees that Executive is waiving the right to any monetary damages or other individual
legal or equitable relief awarded as a result of any such proceeding related to any claim against the Released Parties arising
from or relating to the hiring of Executive, Executive's employment, Executive's compensation while employed, the termination of
Executive's employment, or any other actions, decisions, alleged omissions, or events occurring on or prior to the signing of this
General Release.

    18 

     

    

E.                 
Notwithstanding any of the foregoing, this General Release shall not apply with respect to any rights or claims which Executive
may have under the terms of the Separation Agreement itself or to any rights or benefits Executive may have related to vested accrued
benefits under the terms of the Company's benefit plans or to the Executive's right to be indemnified by the Company pursuant to
the terms of its bylaws and the law of the State of Delaware.

 

F.                 
Executive expressly acknowledges that he has been given the opportunity to take twenty-one (21) days to review this General
Release before signing it, and that he has been advised to consult with an attorney before signing it. Executive acknowledges that
he understands that he may revoke this General Release, insofar as it extends to potential claims under the Age Discrimination
in Employment Act, by informing the Company of Executive's intent to revoke this release within seven (7) days following the execution
of this General Release, and that this General Release is not effective or enforceable until that seven-day revocation period has
expired. Executive understands that any such revocation must be stated in writing and delivered by hand, or by certified mail-return
receipt requested, to LaKisha Partman, Human Resources Department, Sucampo Pharmaceuticals, Inc., 805 King Farm Blvd #550, Rockville,
MD 20850. If Executive exercises this right to revoke or rescind, the Company shall have no obligation to provide severance pay
or benefits to Executive as provided by the Agreement.

 

G.                
Executive acknowledges that the Company's obligation to provide any severance pay or benefits
pursuant to the Agreement shall not become effective or enforceable until the revocation period identified above has expired without
notice of revocation having been made.

    19 

     

    

H.                
Executive agrees that he shall forfeit all amounts payable by the Company under the Separation
Agreement if he challenges the validity of this General Release. Executive also agrees that if he violates this General Release
by suing the Company or the other Released Parties, in the event that the Company is the prevailing party, Executive shall pay
all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees, and
return all payments received by Executive on or after the termination of his employment.

 

2.                 
This General Release shall be binding upon, and inure to the benefit of, Executive and the Company and their respective
successors and permitted assigns.

 

3.                 
Executive hereby acknowledges and states that Executive has read this General Release, this General Release is written
in language which is understandable to Executive, that Executive fully appreciates the meaning of the terms of this General Release,
and that Executive enters into this General Release freely and voluntarily.

 

EXECUTIVE ACKNOWLEDGES THAT
HE HAS READ THIS ENTIRE GENERAL RELEASE CAREFULLY, AS THIS GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS (AS
ALLOWED BY LAW) WHICH HE MAY HAVE AGAINST THE COMPANY INCLUDING CLAIMS PURSUANT TO THE AGE DISCRIMINATION IN EMPLOYMENT ACT.

 

(Signature page appears on the
following page.)

    20 

     

    

IN WITNESS WHEREOF, Executive
after due consideration and consultation, has authorized, executed, and delivered this General Release all as of the date first
above written.

 

	 	 	 	Sucampo Pharmaceuticals, Inc.
	 	 	 	 	 
	By:	/s/ Matthias Alder	 	By:	/s/
Max Donley
	 	Matthias Alder	 	 	Max Donley
	 	 	 	 	EVP, Global HR, IT & Strategy
	 	 	 	 	 
	 	 	 	 	 
	Date: 	June 30, 2017	 	Date:
	July 10, 2017

 

 

 

 

 

21

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