Document:

Exhibit
10.16 

 

RIGHT
OF FIRST REFUSAL AGREEMENT

 

THIS
RIGHT OF FIRST REFUSAL AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, the “ROFR
Agreement”), dated as of September 1, 2021 (the “Effective Date”), is entered into by and between MELT PHARMACEUTICALS,
INC., a Delaware corporation (“Melt”), and HARROW HEALTH, INC., a Delaware corporation (“Harrow”).

 

 W I T N E S S E T H: 

 

WHEREAS,
Melt and Harrow have entered into that certain Loan and Security Agreement, dated as of the date hereof (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Loan Agreement”);

 

WHEREAS,
as a condition to the extension of credit by Harrow to Melt under the Loan Agreement, Melt has agreed to grant to Harrow a right
of first refusal to match any offer received by Melt associated with the commercial rights to Melt’s drug candidates; and

 

WHEREAS,
Melt wishes to enter into this ROFR Agreement to grant such rights to Harrow and Harrow wishes to enter into this ROFR Agreement
to accept such rights, all on the terms and conditions set forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

Section
1. Information about Drug Candidates. During the ROFR Period (as defined below), Melt shall provide to Harrow, on a confidential
basis, information about drug candidates of Melt as may reasonably be requested by Harrow. At Harrow’s option, Melt shall provide,
on a confidential basis, an update on its development activities and plans to Harrow on at least a semi-annual basis. Lender agrees to
maintain in accordance with its customary procedures for maintaining confidential information the confidentiality of the information
provided by Melt pursuant to this Section 1.

 

Section
2. Right of First Refusal. During the period beginning on the Effective Date and ending on the five (5) year anniversary of the
Effective Date (the “ROFR Period”), Melt shall not, directly or indirectly through an affiliate, enter into any agreement
or consummate any transaction relating to the commercialization of any drug candidate of Melt with anyone other than Harrow, including,
without limitation, any activities undertaken in support of, or for, the promotion, marketing, sale and/or distribution of any one or
more drug candidates (a “Third-Party Transaction”) except in compliance with the terms and conditions of this ROFR
Agreement.

 

(a)
If, at any time during the ROFR Period, Melt receives a bona fide written offer for a Third-Party Transaction that Melt desires to accept
(each, a “Third-Party Offer”), Melt shall promptly (and no later than three (3) business days following receipt of
the Third-Party Offer) notify Harrow in writing (the “Offer Notice”) of the identity of all proposed parties to such
Third-Party Transaction and the material financial and other terms and conditions of such Third-Party Offer (the “Material Terms”).
Melt shall also provide Harrow with such additional information about the drug candidate that is the subject of such Third-Party Offer
as Harrow shall reasonably request. Each Offer Notice constitutes an offer made by Melt to enter into an agreement with Harrow on the
same Material Terms of such Third-Party Offer (the “ROFR Offer”).

 

(b)
At any time prior to the expiration of the ninety (90) day period following Harrow’s receipt of the Offer Notice (the “Exercise
Period”), Harrow may accept the ROFR Offer by delivery to Melt of a written notice of acceptance executed by Harrow; provided,
however, that Harrow is not required to accept any non-financial terms or conditions contained in any Material Terms that cannot be fulfilled
by Harrow as readily as by any other Person (e.g., an agreement conditioned upon the services of a particular individual or the supply
of a product exclusively under the control of such third-party offeror).

 

    	 

    	 

    

 

(c)
If, by the expiration of the Exercise Period, Harrow has not accepted the ROFR Offer, and provided that Melt has complied with all of
the provisions of this ROFR Agreement, at any time ninety (90) day period following the expiration of the Exercise Period, Melt may consummate
the Third-Party Transaction with the counterparty identified in the applicable Offer Notice on Material Terms that are the same or more
favorable to Melt as the Material Terms set forth in the Offer Notice. If such Third-Party Transaction is not consummated within such
ninety (90) day period, the terms and conditions of this ROFR Agreement will again apply and Melt shall not enter into any Third-Party
Transaction during the ROFR Period without affording Harrow the right of first refusal on the terms and conditions of this ROFR Agreement.

 

(d)
For the avoidance of doubt, the terms and conditions of this ROFR Agreement apply to each Third-Party Offer received by Melt during the
ROFR Period.

 

Section
3. Acknowledgement re: Loan. The parties hereto acknowledge and agree that this ROFR Agreement and the terms hereof will not be
affected by any payment or prepayment of the loan represented by the Loan Agreement, or any modification or termination of the Loan Agreement,
and shall remain in full force and effect for the ROFR Period as set forth herein.

 

Section
4. Counterparts. This ROFR Agreement may be executed in any number of counterparts and by different parties in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section
5. Governing Law. This ROFR Agreement and the rights and obligations of the parties hereto shall be governed by, and construed
and interpreted in accordance with, the laws of the State of Delaware.

 

Section
6. Assignment. Melt shall not assign any of its rights nor delegate any of its duties under this ROFR Agreement without the prior
written consent of Harrow.

 

[Signature
Page Follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this ROFR Agreement to be executed and delivered by their duly authorized officers as
of the date first set forth above.

 

	 	MELT
    PHARMACEUTICALS, INC.
	 	 	                            
	 	By:	/s/
    Larry Dillaha
	 	Name:
    	Larry
    Dillaha
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	HARROW
    HEALTH, INC.
	 	 	 
	 	By:	/s/
    Andrew R. Boll
	 	Name:
    	Andrew
    R. Boll
	 	Title:
    	Chief
    Executive Officer

 

Signature
Page to Right of First RefusalExhibit
10.17 

 

MANAGEMENT
SERVICES AGREEMENT

 

THIS
MANAGEMENT SERVICES AGREEMENT (this “Agreement”), effective as of February 1, 2019 (the “Effective Date”),
is made by and between Melt Pharmaceuticals, Inc., a Delaware corporation (the “Company”) and Harrow Health, Inc.,
a Delaware corporation (the “Manager”).

 

WHEREAS,
the Company is in need of certain services in order to operate prior to retaining the services of its own employees and third-party consultants.

 

WHEREAS,
the Company wishes to retain the Manager to provide certain services to the Company, and the Manager is willing to provide such services
on the terms set forth below.

 

NOW,
THEREFORE, in consideration of the premises and the respective mutual agreements, covenants, representations and warranties contained
in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.
Appointment of Manager. The Company appoints the Manager and the Manager accepts appointment on the terms and conditions provided
in this Agreement as advisor to the Company. The parties expressly acknowledge that Manager is an affiliate of and equity holder in the
Company.

 

2.
Board of Directors Supervision. The activities of the Manager to be performed under this Agreement shall be subject to the supervision
of the Board of Directors of the Company (the “Board”) or the Company’s Chief Executive Officer and subject
to reasonable policies not inconsistent with the terms of this Agreement adopted by the Board and in effect from time to time. Where
not required by applicable law or regulation, the Manager shall not require the prior approval of the Board to perform its duties under
this Agreement.

 

3.
Services of the Manager. Subject to any limitations imposed by applicable law or regulation, the Manager, by and through itself
and/or such Manager’s successors, assigns, affiliates, officers, employees and/or representatives and third parties, shall render
or cause to be rendered general business services to the Company as requested from time to time by the Company and agreed to by the Manager,
which services may include certain payroll and benefits related activities, web services, accounting, intellectual property advisement
and other related services (the “Services”). The Manager shall provide and devote to the performance of this Agreement
such employees, affiliates and agents of the Manager as the Manager shall deem appropriate to the furnishing of the Services hereunder.
The Manager will devote such time and efforts to the performance of the Services contemplated hereby as the Manager deems reasonably
necessary or appropriate; provided, however, no minimum number of hours is required to be devoted by the Manager on a weekly,
monthly, annual or other basis. Company acknowledges that the Manager’s Services are not exclusive to the Company or their respective
subsidiaries and that the Manager may render similar Services to other persons and entities. The parties understand that the Company
may at times engage one or more advisers to provide Services in addition to Services provided by the Manager under this Agreement.

 

    	 

    	 

    

 

4.
Independent Contractor. The Manager shall be an independent contractor, and nothing in this Agreement shall be deemed or construed
to (i) create a partnership or joint venture between the Company and the Manager, (ii) cause the Manager to be responsible in any way
for the debts, liabilities or obligations of the Company or any other party, or (iii) cause the Manager or any of their employees, partners
or members to be officers, employees or agents of the Company.

 

5.
Expenses. The Company shall pay to the Manager on demand all Reimbursable Expenses whether incurred prior to or following the
date of this Agreement. As used herein, “Reimbursable Expenses” means (i) all out-of-pocket expenses incurred relating
to the Services provided by the Manager to the Company from time to time (including, without limitation, all travel related expenses),
(ii) all out-of-pocket legal expenses incurred by Manager or its affiliates in connection with the enforcement of rights or taking of
actions under this Agreement or any related documents or instruments, and (iii) all expenses incurred by the Manager or its affiliates
on behalf of the Company, including in connection with its management and operations, whether incurred prior to or following the date
of this Agreement.

 

6.
Compensation of Manager. In consideration of the Services to be rendered, the Company will pay to the Manager a monthly fee of
Ten Thousand Dollars ($9,900) (the “Consulting Fee”), payable on the 1st business day of each calendar
month. If any restrictions prohibit the payment of any installment of the Consulting Fee, such Consulting Fee installment shall accrue
and the Company shall make such installment payment as soon as it is permitted to do so under such restrictions. If the Company acquires
or enters into any additional business operations after the date of this Agreement, the Company and the Manager will, prior to the acquisition
or prior to entering into the business operations, in good faith, determine whether and to what extent the Consulting Fee should be increased
as a result thereof. Any increase will be evidenced by a written supplement to this Agreement signed by each of the Company and the Manager.

 

7.
Term. This Agreement shall commence on the Effective Date and shall remain in effect until terminated pursuant to this Section.
Either party shall have the right to terminate this Agreement at any time for any reason upon ten (10) days written notice. No termination
of this Agreement, whether pursuant to this Section or otherwise, shall affect the Company’s obligations with respect to the fees,
costs and expenses incurred by the Manager in rendering Services hereunder and not reimbursed by the Company as of the effective date
of such termination. In addition, the provisions of Sections 8, 9, 15, 16 and 20 shall survive the termination of this Agreement and
remain binding and in effect.

 

8.
Liability. The Manager (including any person or entity acting for or on behalf of the Manager) shall not be liable for any mistakes
of fact, errors of judgment, or losses sustained by the Company or for any acts or omissions of any kind (including acts or omissions
of the Manager), except to the extent caused by intentional misconduct of the Manager as finally determined by a court of competent jurisdiction.
In no event will Manager (including any person or entity acting for or on behalf of the Manager) be liable to the Company or any of their
affiliates for any indirect, special, incidental or consequential damages, including, without limitation, lost profits or savings, whether
or not such damages are foreseeable, or for any third party claims (whether based in contract, tort or otherwise), relating to, in connection
with or arising out of this Agreement, before or after termination of this Agreement, including without limitation the services to be
provided by the Manager hereunder, or for any act or omission that does not constitute intentional misconduct of the Manager or in excess
of the fees received by the Manager hereunder.

 

    	 

    	 

    

 

9.
Indemnification of Manager. The Company hereby agrees to indemnify and hold harmless the Manager and its present and future officers,
directors, affiliates, attorneys, employees and agents (“Indemnified Parties”) from and against all third party losses,
claims, liabilities, suits, costs, damages and expenses (including attorneys’ fees) (collectively, “Claims”) arising
from their performance of Services hereunder, except to the extent any Claims arise from the an Indemnified Party’s intentional
misconduct. The Company further agrees to reimburse the Indemnified Parties for any cost of defending any such action or investigation
(including attorneys’ fees and expenses), subject to an undertaking from such Indemnified Party to repay the Company if such party
is determined not to be entitled to such indemnity.

 

10.
Assignment. Without the consent of the Manager, the Company shall not assign, transfer or convey any of its rights, duties or
interest under this Agreement, nor shall it delegate any of its obligations or duties hereunder. The Manager shall not assign, transfer
or convey any of its rights, duties or interest under this Agreement, nor shall it delegate any of its obligations or duties under this
Agreement, except that the Manager may transfer its rights and delegate its obligations hereunder to its affiliates.

 

11.
Notices. Any notice or other communication required or permitted to be made or given under this Agreement to either party shall
be in writing and shall be sufficiently given if (i) hand delivered, (ii) sent by overnight guaranteed delivery service, such as Federal
Express or UPS; or (iii) sent by facsimile transmission or electronic mail during addressee’s normal business hours, with a duplicate
copy sent by overnight delivery or certified or registered mail (except for any notice of termination which must be sent by method (i)
or (ii)), addressed as follows:

 

	 	If
    to the Company:	Melt
    Pharmaceuticals, Inc.
	 	 	12264
    El Camino Real, Suite 350
	 	 	San
    Diego, CA 92130 
	 	 	Attn:
    Greg Madison
	 	 	 
	 	If
    to the Manager:	Harrow
    Health, Inc.
	 	 	12264
    El Camino Real, Suite 350
	 	 	San
    Diego, CA 92130
	 	 	Attn:
    Mark L. Baum

 

or
to such other address or addressee as either party may from time to time designate to the other by written notice. Any such notice or
other communication shall be deemed to be given as of the date it is received by the addressee.

 

12.
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other provision or the
effectiveness or validity of any provision in any other jurisdiction, and this Agreement will be reformed, construed, and enforced in
such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein.

 

    	 

    	 

    

 

13.
No Waiver. The failure by any party to exercise any right, remedy or elections herein contained or permitted by law shall not
constitute or be construed as a waiver or relinquishment for the future exercise of such right, remedy or election, but the same shall
continue and remain in full force and effect. All rights and remedies that any party may have at law, in equity or otherwise upon breach
of any term or condition of this Agreement, shall be distinct, separate and cumulative rights and remedies and no one of them, whether
exercised or not, shall be deemed to be in exclusion of any other right or remedy.

 

14.
Advice of Counsel. Each party acknowledges that, in executing this Agreement, such party has had the opportunity to seek the advice
of independent legal counsel, and has read and understood all of the terms and provisions of this Agreement. This Agreement shall not
be construed against any party by reason of the drafting or preparation hereof.

 

15.
Governing Law. The subject matter of this Agreement shall be governed by and construed in accordance with the laws of the State
of California (without reference to its choice of law principles), and to the exclusion of the law of any other forum, without regard
to the jurisdiction in which any action or special proceeding may be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION
AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN SAN DIEGO COUNTY, CALIFORNIA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN
CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR
DEFENSE THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH PARTY SPECIFICALLY
WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO TRIABLE.

 

16.
Attorneys’ Fees. Should any party hereto employ an attorney for the purpose of enforcing or constituting this Agreement,
or any judgment based on this Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy, arbitration, declaratory
relief or other litigation, the prevailing party shall be entitled to receive from the other party or parties thereto reimbursement for
all reasonable attorneys’ fees and all reasonable costs, including but not limited to service of process, filing fees, court and
court reporter costs, investigative costs, expert witness fees, and the cost of any bonds, whether taxable or not, and that such reimbursement
shall be included in any judgment or final order issued in that proceeding. The “prevailing party” means the party determined
by the court to most nearly prevail and not necessarily the one in whose favor a judgment is rendered.

 

17.
Entire Agreement; Amendment. This Agreement embodies the entire agreement between the parties and supersedes any prior representations,
communications, understandings and agreements between the parties regarding the subject matter hereof. There are no representations,
communications, understandings or agreements, oral or written, between the parties regarding the subject matter hereof that are not fully
expressed herein. No term or section of this Agreement may be charged, waived, discharged, amended or modified orally or in any manner
other than in writing executed by both of the parties hereto.

 

    	 

    	 

    

 

18.
Execution of the Agreement. Each party executing this Agreement has the requisite corporate power and authority to enter into
and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder. All corporate proceedings
have been taken and all corporate authorizations and approvals have been secured which are necessary to authorize the execution, delivery
and performance by each party of this Agreement. This Agreement has been duly and validly executed and delivered by each party and constitutes
a valid and binding obligation, enforceable in accordance with the respective terms herein. Upon delivery of this Agreement, this Agreement,
and the other agreements and exhibits referred to herein, will constitute the valid and binding obligations of each party, and will be
enforceable in accordance with their respective terms.

 

19.
Successors. This Agreement and all the obligations and benefits hereunder shall inure to the successors and permitted assigns
of the parties.

 

20.
Confidentiality. The Company may not disclose the terms of this Agreement except as may be required by applicable law or the rules
of any exchange on which the Company’s or its affiliates’ securities are traded.

 

21.
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all
such counterparts taken together shall constitute one and the same Agreement. Delivery of an executed counterpart of a signature page
to this Agreement by facsimile or electronic delivery in PDF format shall be as effective as delivery of a manually executed counterpart
of this Agreement and shall be sufficient to bind the parties to the terms and conditions of this Agreement.

 

***SIGNATURE
PAGE FOLLOWS***

 

    	 

    	 

    

 

SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, the parties hereto have caused this Management Services Agreement to be executed and delivered as of the date first
above written.

 

	COMPANY	 	MANAGER
	 	 	 	 	 
	Melt
    Pharmaceuticals, Inc.	 	Harrow
    Health, Inc.
	 	 	 	 	 
	/s/
    Greg Madison	 	/s/
    Mark. L. Baum
	By:	Greg
    Madison	 	By:	Mark
    L. Baum
	Its:	Chief
    Executive Officer	 	Its:	Chief
    Executive Officer
	 	 	 	 	 
	Date:	2/1/19	 	Date:	2/1/19

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