Exhibit 10.2


 


ArTara
Therapeutics, Inc.


 


Stock
Option Grant Notice

(Inducement Plan)


 


ArTara
Therapeutics, Inc. (the “Company”), pursuant to its Inducement Plan (the “Plan”),
hereby grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth below.
This option is subject to all of the terms and conditions as set forth in this Stock Option Grant Notice, in the Option Agreement,
the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. Capitalized terms
not explicitly defined herein but defined in the Plan or the Option Agreement will have the same definitions as in the Plan or
the Option Agreement. If there is any conflict between the terms in this Stock Option Grant Notice and the Plan, the terms of
the Plan will control.


 






	 	Optionholder:	 	 
	 	Date of Grant:	 	 
	 	Vesting Commencement Date:	 	 
	 	Number of Shares Subject to Option:	 	 
	 	Exercise Price (Per Share):	 	 
	 	Total Exercise Price:	 	 
	 	Expiration Date:	 	 




 


	Type of Grant:	Nonstatutory Stock Option
	 	 
	Exercise Schedule:	[Same as Vesting Schedule]
	 	 
	Vesting Schedule:	[______________, subject to Optionholder’s Continuous Service as of each such date.]
	 	 
	Payment:	By one or a combination of the following items (described in the Option Agreement):
	 	 
		☐  By cash, check, bank draft or money order payable to the Company
		☐  Pursuant to a Regulation T Program if the shares are publicly traded
		☐  By delivery of already-owned shares if the shares are publicly traded
		☐  Subject to the Company’s consent at the time of exercise, by a “net exercise” arrangement




 



     


     


    

 


Additional
Terms/Acknowledgements: Optionholder acknowledges receipt of, and understands and agrees to, this Stock Option Grant Notice,
the Option Agreement and the Plan. Optionholder acknowledges and agrees that this Stock Option Grant Notice and the Option Agreement
may not be modified, amended or revised except as provided in the Plan. Optionholder further acknowledges that as of the Date
of Grant, this Stock Option Grant Notice, the Option Agreement, and the Plan set forth the entire understanding between Optionholder
and the Company regarding this option award and supersede all prior oral and written agreements, promises and/or representations
on that subject with the exception of, if applicable, (i) equity awards previously granted and delivered to Optionholder, (ii)
any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law and (iii) any
written employment agreement, severance agreement, offer letter or other written agreement entered into between the Company and
Participant specifying the terms that should govern this specific option. By accepting this option, Optionholder consents to receive
such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained
by the Company or another third party designated by the Company.


 


	ArTara Therapeutics,
        Inc.	 	Optionholder:
	 	 	 	 	 
	By:	 	 	 	 
		Signature 	 	 	Signature
	 	 	 	 	 
	Title:	 	 	Date:	 
	 	 	 	 	 
	Date: 	 	 	 	 


 


Attachments:
Option Agreement, Inducement Plan and Notice of Exercise


 









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Attachment
I


 


ArTara
Therapeutics, Inc.


 


Option
Agreement


(Inducement
Plan)

(Nonstatutory Stock Option)


 


Pursuant
to your Stock Option Grant Notice (“Grant Notice”) and this Option Agreement, ArTara Therapeutics, Inc.
(the “Company”) has granted you an option under its Inducement Plan (the “Plan”)
to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice at the exercise price indicated
in your Grant Notice. The option is granted to you effective as of the date of grant set forth in the Grant Notice (the “Date
of Grant”). The option is granted in compliance with Nasdaq Marketplace Rule 5635(c)(4) as a material inducement
to you entering into employment with the Company. If there is any conflict between the terms in this Option Agreement and the
Plan, the terms of the Plan will control. Capitalized terms not explicitly defined in this Option Agreement or in the Grant Notice
but defined in the Plan will have the same definitions as in the Plan.


 


The
details of your option, in addition to those set forth in the Grant Notice and the Plan, are as follows:


 


1. Vesting.
Subject to the provisions contained herein, your option will vest as provided in your Grant Notice. Vesting will cease
upon the termination of your Continuous Service.


 


2. Number
of Shares and Exercise Price. The number of shares of Common Stock subject to your option and your exercise price per
share in your Grant Notice will be adjusted for Capitalization Adjustments.


 


3. Exercise
Restriction for Non-Exempt Employees. If you are an Employee eligible for overtime compensation under the Fair Labor
Standards Act of 1938, as amended (that is, a “Non-Exempt Employee”), and except as otherwise provided
in the Plan, you may not exercise your option until you have completed at least six (6) months of Continuous Service measured
from the Date of Grant, even if you have already been an employee for more than six (6) months. Consistent with the provisions
of the Worker Economic Opportunity Act, you may exercise your option as to any vested portion prior to such six (6) month anniversary
in the case of (i) your death or disability, (ii) a Corporate Transaction in which your option is not assumed, continued or substituted,
(iii) a Change in Control or (iv) your termination of Continuous Service on your “retirement” (as defined in the Company’s
benefit plans).


 


4. Method
of Payment. You must pay the full amount of the exercise price for the shares you wish to exercise. You may pay the
exercise price in cash or by check, bank draft or money order payable to the Company or in any other manner permitted by
your Grant Notice, which may include one or more of the following:


 


(a) Provided
that at the time of exercise the Common Stock is publicly traded, pursuant to a program developed under Regulation T as promulgated
by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by
the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.
This manner of payment is also known as a “broker-assisted exercise”, “same day sale”, or “sell
to cover”.


 






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(b) Provided
that at the time of exercise the Common Stock is publicly traded, by delivery to the Company (either by actual delivery or attestation)
of already-owned shares of Common Stock that are owned free and clear of any liens, claims, encumbrances or security interests,
and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the sole discretion
of the Company at the time you exercise your option, will include delivery to the Company of your attestation of ownership of
such shares of Common Stock in a form approved by the Company. You may not exercise your option by delivery to the Company of
Common Stock if doing so would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s
stock.


 


(c) Subject
to the consent of the Company at the time of exercise, by a “net exercise” arrangement pursuant to which the Company
will reduce the number of shares of Common Stock issued upon exercise of your option by the largest whole number of shares with
a Fair Market Value that does not exceed the aggregate exercise price. You must pay any remaining balance of the aggregate exercise
price not satisfied by the “net exercise” in cash or other permitted form of payment. Shares of Common Stock will
no longer be outstanding under your option and will not be exercisable thereafter if those shares (i) are used to pay the exercise
price pursuant to the “net exercise,” (ii) are delivered to you as a result of such exercise, and (iii) are withheld
to satisfy your tax withholding obligations.


 


5. Whole
Shares. You may exercise your option only for whole shares of Common Stock.


 


6. Securities
Law Compliance. In no event may you exercise your option unless the shares of Common Stock issuable upon exercise are
then registered under the Securities Act or, if not registered, the Company has determined that your exercise and the issuance
of the shares would be exempt from the registration requirements of the Securities Act. The exercise of your option also must
comply with all other applicable laws and regulations governing your option, and you may not exercise your option if the Company
determines that such exercise would not be in material compliance with such laws and regulations (including any restrictions on
exercise required for compliance with Treas. Reg. 1.401(k)-1(d)(3), if applicable).


 


7. Term.
You may not exercise your option before the Date of Grant or after the expiration of the option’s term. The term
of your option expires, subject to the provisions of Section 5(h) of the Plan, upon the earliest of the following:


 


(a) immediately
upon the termination of your Continuous Service for Cause;


 


(b) three
(3) months after the termination of your Continuous Service for any reason other than Cause, your Disability or your death (except
as otherwise provided in Section 7(d) below); provided, however, that if during any part of such three (3) month period
your option is not exercisable solely because of the condition set forth in the section above regarding “Securities Law
Compliance,” your option will not expire until the earlier of the Expiration Date or until it has been exercisable for an
aggregate period of three (3) months after the termination of your Continuous Service; provided further, if during any
part of such three (3) month period, the sale of any Common Stock received upon exercise of your option would violate the Company’s
insider trading policy, then your option will not expire until the earlier of the Expiration Date or until it has been exercisable
for an aggregate period of three (3) months after the termination of your Continuous Service during which the sale of the Common
Stock received upon exercise of your option would not be in violation of the Company’s insider trading policy. Notwithstanding
the foregoing, if (i) you are a Non-Exempt Employee, (ii) your Continuous Service terminates within six (6) months after the Date
of Grant, and (iii) you have vested in a portion of your option at the time of your termination of Continuous Service, your option
will not expire until the earlier of (x) the later of (A) the date that is seven (7) months after the Date of Grant, and (B) the
date that is three (3) months after the termination of your Continuous Service, and (y) the Expiration Date;


 






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(c) twelve
(12) months after the termination of your Continuous Service due to your Disability (except as otherwise provided in Section 7(d))
below;


 


(d) eighteen
(18) months after your death if you die either during your Continuous Service or within three (3) months after your Continuous
Service terminates for any reason other than Cause;


 


(e) the
Expiration Date indicated in your Grant Notice; or


 


(f) the
day before the tenth (10th) anniversary of the Date of Grant.


 


8. Exercise.


 


(a) You
may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so permits) during
its term by (i) delivering a Notice of Exercise (in a form designated by the Company) or completing such other documents and/or
procedures designated by the Company for exercise and (ii) paying the exercise price and any applicable withholding taxes to the
Company’s Secretary, stock plan administrator, or such other person as the Company may designate, together with such additional
documents as the Company may then require.


 


(b) By
exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into
an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason
of (i) the exercise of your option, (ii) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are
subject at the time of exercise, or (iii) the disposition of shares of Common Stock acquired upon such exercise.


 


9. Transferability.
Except as otherwise provided in this Section 9, your option is not transferable, except by will or by the laws of descent
and distribution, and is exercisable during your life only by you.


 


(a) Certain
Trusts. Upon receiving written permission from the Board or its duly authorized designee, you may transfer your option to
a trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law)
while the option is held in the trust. You and the trustee must enter into transfer and other agreements required by the Company.


 


(b) Domestic
Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you
and the designated transferee enter into transfer and other agreements required by the Company, you may transfer your option pursuant
to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as
permitted by Treasury Regulation 1.421-1(b)(2) that contains the information required by the Company to effectuate the transfer.
You are encouraged to discuss the proposed terms of any division of this option with the Company prior to finalizing the domestic
relations order or marital settlement agreement to help ensure the required information is contained within the domestic relations
order or marital settlement agreement.


 






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(c) Beneficiary
Designation. Upon receiving written permission from the Board or its duly authorized designee, you may, by delivering written
notice to the Company, in a form approved by the Company and any broker designated by the Company to handle option exercises,
designate a third party who, on your death, will thereafter be entitled to exercise this option and receive the Common Stock or
other consideration resulting from such exercise. In the absence of such a designation, your executor or administrator of your
estate will be entitled to exercise this option and receive, on behalf of your estate, the Common Stock or other consideration
resulting from such exercise.


 


10. Option
not a Service Contract. Your option is not an employment or service contract, and nothing in your option will be deemed
to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the
Company or an Affiliate to continue your employment. In addition, nothing in your option will obligate the Company or an Affiliate,
their respective stockholders, boards of directors, officers or employees to continue any relationship that you might have as
a Director or Consultant for the Company or an Affiliate.


 


11. Withholding
Obligations.


 


(a) At
the time you exercise your option, in whole or in part, and at any time thereafter as requested by the Company, you hereby authorize
withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by
means of a “same day sale” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your option.


 


(b) Upon
your request and subject to approval by the Company, and compliance with any applicable legal conditions or restrictions, the
Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a number
of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess
of the maximum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification
of your option as a liability for financial accounting purposes). Notwithstanding the filing of such election, shares of Common
Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that
are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding
procedure shall be your sole responsibility.


 


(c) You
may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly,
you may not be able to exercise your option when desired even though your option is vested, and the Company will have no obligation
to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein,
if applicable, unless such obligations are satisfied.


 


12. Tax
Consequences. You hereby agree that the Company does not have a duty to design or administer the Plan or its other
compensation programs in a manner that minimizes your tax liabilities. You will not make any claim against the Company, or any
of its Officers, Directors, Employees or Affiliates related to tax liabilities arising from your option or your other compensation.
In particular, you acknowledge that this option is exempt from Section 409A of the Code only if the exercise price per share specified
in the Grant Notice is at least equal to the “fair market value” per share of the Common Stock on the Date of Grant
and there is no other impermissible deferral of compensation associated with the option.


 






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13. Notices.
Any notices provided for in your option or the Plan will be given in writing (including electronically) and will be
deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after
deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. The Company
may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this option by electronic
means or to request your consent to participate in the Plan by electronic means. By accepting this option, you consent to receive
such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained
by the Company or another third party designated by the Company.


 


14. Governing
Plan Document. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a
part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to
time be promulgated and adopted pursuant to the Plan. If there is any conflict between the provisions of your option and those
of the Plan, the provisions of the Plan will control. In addition, your option (and any compensation paid or shares issued under
your option) is subject to recoupment in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and
any implementing regulations thereunder, any clawback policy adopted by the Company and any compensation recovery policy otherwise
required by applicable law.


 


15. Other
Documents. You hereby acknowledge receipt of and the right to receive a document providing the information required
by Rule 428(b)(1) promulgated under the Securities Act, which includes the Plan prospectus. In addition, you acknowledge receipt
of the Company’s policy permitting certain individuals to sell shares only during certain “window” periods and
the Company’s insider trading policy, in effect from time to time.


 


16. Effect
on Other Employee Benefit Plans. The value of this option will not be included as compensation, earnings, salaries,
or other similar terms used when calculating your benefits under any employee benefit plan sponsored by the Company or any Affiliate,
except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any
of the Company’s or any Affiliate’s employee benefit plans.


 


17. Voting
Rights. You will not have voting or any other rights as a stockholder of the Company with respect to the shares to
be issued pursuant to this option until such shares are issued to you. Upon such issuance, you will obtain full voting and other
rights as a stockholder of the Company. Nothing contained in this option, and no action taken pursuant to its provisions, will
create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.


 


18. Severability.
If all or any part of this Option Agreement or the Plan is declared by any court or governmental authority to be unlawful
or invalid, such unlawfulness or invalidity will not invalidate any portion of this Option Agreement or the Plan not declared
to be unlawful or invalid. Any Section of this Option Agreement (or part of such a Section) so declared to be unlawful or invalid
shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest
extent possible while remaining lawful and valid.


 


19. Miscellaneous.


 


(a) The
rights and obligations of the Company under your option will be transferable to any one or more persons or entities, and all covenants
and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns.


 


(b) You
agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company
to carry out the purposes or intent of your option.


 






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(c) You
acknowledge and agree that you have reviewed your option in its entirety, have had an opportunity to obtain the advice of counsel
prior to executing and accepting your option, and fully understand all provisions of your option.


 


(d) This
Option Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required.


 


(e) All
obligations of the Company under the Plan and this Option Agreement will be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.


 


*       *       *


 


This
Option Agreement will be deemed to be signed by you upon the signing by you of the Stock Option Grant Notice to which it is attached.


 









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Attachment
II


 


Inducement
Plan


 



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Attachment
III


 


Notice
of Exercise


 


ArTara
Therapeutics, Inc.


 


Date
of Exercise: _______________


 


This
constitutes notice to ArTara Therapeutics, Inc. (the “Company”) under my stock option that I elect to
purchase the below number of shares of Common Stock of the Company (the “Shares”) for the price
set forth below.


 


	Type
of option:	Nonstatutory    	 
	 	 	 
	Stock
    option dated:	_______________	 
	 	 	 
	Number
    of Shares as to which option is exercised:	_______________	 
	 	 	 
	Certificates
    to be issued in name of:	_______________	 
	 	 	 
	Total
    exercise price:	$______________	 
	 	 	 
	Cash
    payment delivered herewith:	$______________	 
	 	 	 
	[Value
    of ________ Shares delivered herewith1:	$______________	 
	 	 	 
	[Value
    of ________ Shares pursuant to net exercise2:	$______________	 
	 	 	 
	[Regulation
    T Program (cashless exercise3):	$______________	 


 


By
this exercise, I agree (i) to provide such additional documents as you may require pursuant to the terms of the ArTara Therapeutics,
Inc. Inducement Plan and (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding
obligation, if any, relating to the exercise of this option.


 


	 	Very
truly yours,
	 	 
	 	 



 


 


 






1
 Shares must meet the public trading requirements set forth in the option. Shares must be valued in accordance with
the terms of the option being exercised, and must be owned free and clear of any liens, claims, encumbrances or security interests.
Certificates must be endorsed or accompanied by an executed assignment separate from certificate.


2
 The Company must have established net exercise procedures at the time of exercise, in order to utilize this payment
method.


3
 Shares must meet the public trading requirements set forth in the option.




 


 


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