Exhibit 10.3


 





LETTER OF NON-QUALIFIED OPTION GRANT

CAPSTONE THERAPEUTICS CORP. 2015 EQUITY INCENTIVE PLAN


 


<DATE>_______________, ______


 


<NAME> 


<STREET ADDRESS> 


<CITY AND STATE>


 


	RE:		Director Non-Qualified Stock Option

                                                                                Capstone Therapeutics Corp. 2015 Equity Incentive Plan




 


Dear <Name>,


 


In order to provide
additional incentive to certain employees, directors and appropriate third parties, Capstone Therapeutics Corp. (the "Company")
adopted the Capstone Therapeutics Corp. 2015 Equity Incentive Plan (the "2015 Plan"). By means of this letter (the “Letter
of Grant”), the Company is offering you a non-qualified stock option pursuant to the 2015 Plan. The Company’s sale
of its common shares underlying the option granted to you hereby has been or will be registered with the U.S. Securities and Exchange
Commission. A copy of the prospectus, including a copy of the 2015 Plan relating to that registration, can be obtained from the
Company by request.


 


The option granted
to you hereunder shall be subject to all of the terms and conditions of the 2015 Plan, which you should carefully review. In addition,
such option is subject to the following terms and conditions:


 


1.                 
Grant of Option. The Company hereby grants to you, pursuant to the 2015 Plan, the option to purchase from the Company
upon the terms and conditions and at the times hereinafter set forth, an aggregate of <_______> shares of the Company’s
$0.0005 par value common stock (the "Shares") at a purchase price of $<____> per Share. The date of grant
of this option is <____________>, (hereinafter referred to as the "Option Date").


 


2.                 
Exercise Term of Option. Unless earlier terminated as described in Section 7, the option will vest and may be exercised
for the purchase of Shares as described in the following schedule: 100% immediately vested.


 


3.                 
Nontransferability. This option shall not be transferable otherwise than by will or by the laws of descent and distribution,
and the options shall be exercisable only by you during your lifetime. Notwithstanding the foregoing, the Board of Directors or
a committee appointed by the Board of Directors may permit you to transfer a non-qualified stock option to a family member or a
trust or partnership for the benefit of a family member, in accordance with rules established by the Board or a committee appointed
thereby.


 



    	 



    	 



    




4.                 
Other Conditions and Limitations.


 


		(a)	Any Shares issued upon exercise of this option shall not be issued unless the issuance and delivery
of Shares pursuant thereto shall comply with all relevant provisions of law including, without limitation, the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, any applicable
state securities or “Blue Sky” law or laws (or an exemption from such provision is available), and the requirements
of any stock exchange or national market system of a national securities association upon which the Shares may then be listed and
shall be further subject to the approval of counsel for the Company with respect to such compliance.



 


		(b)	No transfer of any Shares issued upon the exercise of the option will be permitted by the Company,
unless any request for transfer is accompanied by evidence satisfactory to the Company that the proposed transfer will not result
in a violation of any applicable law, rule or regulation, whether federal or state, including in the discretion of the Company
an opinion of counsel reasonably acceptable to the Company.



 


		(c)	Inability of the Company to obtain approval from any regulatory body having jurisdictional authority
deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company
of any liability in respect to the nonissuance or sale of such Shares as to which such requisite authority shall not have been
obtained.



 


		(d)	Unless the Shares are subject to a then effective registration statement under the Securities Act
of 1933, upon exercise of this option (in whole or in part) and the issuance of the Shares, the Company shall instruct its transfer
agent to enter stop transfer orders with respect to Shares, and all certificates representing the Shares shall bear on the face
thereof substantially the following legend:



 


“The shares of common stock represented
by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold, offered for sale,
assigned, transferred or otherwise disposed of unless registered pursuant to the provisions of that Act or an opinion of counsel
to the Company is obtained stating that such disposition is in compliance with an available exemption from such registration.”


 


5.                 
Exercise of Option. You may exercise the option only by giving the Executive Chairman of the Company written notice
(including the number of Shares that you are intending to acquire, accompanied by the full exercise price), by personal hand delivery,
by professional overnight delivery service, or by registered or certified mail, postage prepaid with return receipt requested,
at the following address:


 



    	 



    	 



    




Executive Chairman

Capstone Therapeutics Corp.

1275 West Washington Street, Suite 104

Tempe, Arizona 85281


 


Payment of the option price shall be made
either in (i) cash or by check, or (ii) at your request and with the written approval of the Company, (a) by delivering shares
of the Company’s common stock beneficially owned by you prior to the time of exercise (“Delivered Stock”), (b)
by surrendering to the Company shares otherwise receivable upon exercise of the Stock Option (a "Net Exercise"), or (c)
any combination of the foregoing. However, Net Exercise will only be allowed when a Change of Control (as defined in the 2015 Plan)
occurs. The Company may arrange for or cooperate in permitting broker-assisted cashless exercise procedures. Payment in the form
of Delivered Stock or a Net Exercise shall be in the amount of the fair market value of the stock at the date of exercise, determined
pursuant to the 2015 Plan.


 


6.                 
Valuation and Withholding. If required by applicable regulations, the Company shall, at the time of issuance of any
Shares purchased pursuant to the 2015 Plan, provide you with a statement of valuation of the Shares issued. The Company shall be
entitled to withhold amounts from your compensation or otherwise to receive an amount adequate to provide for any applicable federal,
state and local income taxes (or require you to remit such amount as a condition of issuance). The Company may, in its discretion,
satisfy any such withholding requirement, in whole or in part, by withholding from the shares to be issued the number of shares
that would satisfy the withholding amount due.


 


7.                 
Termination of Non-Qualified Stock Options. Notwithstanding anything to the contrary, this option can become exercisable,
and shall not be exercisable after the earliest of (i) the tenth anniversary of the Option Date; (ii) two years after the date
you cease to perform services for the Company, if such termination of services is for any reason other than death, permanent disability,
retirement or cause, (iii) three years after the date you cease to perform services for the Company, if such termination of services
is by reason of death, permanent disability or retirement, or (iv) the date you cease to perform services for the Company, if such
termination is for cause, as determined by the Board of Directors in its sole discretion. Notwithstanding anything to the contrary
in this Section 7, if you are a non-employee director of the Company and you have served as a director of the Company for at least
five years at the time you cease to serve in such capacity, your options will be fully exercisable until the expiration of such
options.


 


8.                 
Miscellaneous. You will have no rights as a stockholder with respect to the Shares until the exercise of the option
and payment of the full purchase price therefore in accordance with the terms of the 2015 Plan and this Letter of Grant. Nothing
herein contained shall impose any obligation on the Company or any parent or subsidiary of the Company or on you with respect to
your continued employment by the Company or any parent or subsidiary of the Company. Nothing herein contained shall impose any
obligation upon you to exercise this option.


 


9.                 
Governing Law. This Letter of Grant shall be subject to and construed in accordance with the law of the State of Arizona,
except as may be required by the Delaware General Corporation Law or the federal securities laws. Venue for any action arising
from or relating to this Agreement shall lie exclusively in Superior Court, Maricopa County, Arizona or the United States District
Court for the District of Arizona, Phoenix Division.


 



    	 



    	 



    




10.             
Relationship to the 2015 Plan. The option contained in this Letter of Grant is subject to the terms, conditions and
definitions of the 2015 Plan. To the extent that the terms, conditions and definitions of this Letter of Grant are inconsistent
with the terms, conditions and definitions of the 2015 Plan, the terms, conditions and definitions of the 2015 Plan shall govern.
You hereby accept this option subject to all terms and provisions of the 2015 Plan. You agree to accept as binding, conclusive
and final all decisions or interpretations of the Board or any committee appointed by the Board upon any questions arising under
the 2015 Plan. You agree to consult your independent tax advisors with respect to the income tax consequences to you, if any, of
participating in the 2015 Plan and authorize the Company to withhold in accordance with applicable law from any compensation otherwise
payable to you any taxes required to be withheld by federal, state or local law as a result of your participation in the 2015 Plan.


 


11.             
Communication. No notice or other communication under this Letter of Grant shall be effective unless the same is in
writing and is personally hand-delivered, or is sent by professional overnight delivery service or mailed by registered or certified
mail, postage prepaid and with return receipt requested, addressed to the Company at the address set forth in Section 5 above,
or such other address as the Company has designated in writing to you, in accordance with the provisions hereof, or you at the
address set forth at the beginning of this letter, or such other address as you have designated in writing to the Company, in accordance
with the provisions hereof.


 


You should execute the enclosed copy of
this Letter of Grant and return it to the Company as soon as possible. The additional copy is for your records.


 


Very truly yours,


 


Capstone Therapeutics Corp.


 


____________________________


 


	By:		Les Taeger

                                                                                SVP & CFO




 


 


 


ACCEPTED AND AGREED TO:


 


___________________________

Name:


 


Date: _______________________