Document:

Exhibit
10.2

 

Melt
Pharmaceuticals, Inc.

Stock Option Grant Notice

(2018 Equity Incentive Plan)

 

Melt
Pharmaceuticals, Inc. (the “Company”), pursuant to its 2018 Equity Incentive 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 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 herein 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:	☐	Incentive
  Stock Option1 	☐	Nonstatutory
  Stock Option
	 	 	 
	Exercise
  Schedule:	☐	Same
  as Vesting Schedule	☐	Early
  Exercise Permitted
	 	 	 
	Vesting
  Schedule:	[●]	 

 

	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
	 	☒
  If and only to the extent this option is a Nonstatutory Stock Option, and 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 the acquisition of Common Stock pursuant to the option specified above and supersede all prior oral and written agreements,
promises and/or representations on that subject with the exception, if applicable, of (i) the written employment agreement, offer letter
or other written agreement entered into between the Company and Optionholder specifying the terms that govern this option, and (ii) any
compensation recovery policy that is adopted by the Company or is otherwise required by applicable law.

 

 

1
 If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable for
more than $100,000 in value (measured by exercise price) in any calendar year. Any excess over $100,000 is a Nonstatutory Stock Option.

 

    	 

     

    

 

By
accepting this option, Optionholder acknowledges having received and read this Stock Option Grant Notice, the Option Agreement and the
Plan and agrees to all of the terms and conditions set forth in these documents. Participant consents to receive Plan 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.

 

	Melt
    Pharmaceuticals, Inc.	 	Optionholder
	 	 	 
	 	 	 
	Signature	 	Signature
	 	 	 
	By:	                                 	 	Date:	                  
	 	 	 
	Its:	 	 	 
	 	 	 
	Date:	 	 	 

 

Attachments:
Option Agreement, 2018 Equity Incentive Plan and Notice of Exercise

 

    	 

     

    

 

Attachment
I

 

Option
Agreement

 

    	 

     

    

 

Melt
Pharmaceuticals, Inc.

2018 Equity Incentive Plan

 

Option
Agreement

(Incentive Stock Option or Nonstatutory Stock Option)

 

Pursuant
to your Stock Option Grant Notice (“Grant Notice”) and this Option Agreement, Melt Pharmaceuticals, Inc. (the
“Company”) has granted you an option under its 2018 Equity Incentive 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”). 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
meanings given to them in the Plan.

 

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

 

1.
Vesting. 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.
Exercise prior to Vesting (“Early Exercise”). If permitted in your Grant
Notice (i.e., the “Exercise Schedule” indicates “Early Exercise Permitted”) and subject to the provisions
of your option, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your
option, to exercise all or part of your option, including the unvested portion of your option; provided, however, that:

 

(a)
a partial exercise of your option will be deemed to cover first vested shares of Common Stock and then the earliest vesting installment
of unvested shares of Common Stock;

 

(b)
any shares of Common Stock so purchased from installments that have not vested as of the date of exercise will be subject to the
purchase option in favor of the Company as described in the Company’s form of Early Exercise Stock Purchase Agreement;

 

(c)
you will enter into the Company’s form of Early Exercise Stock Purchase Agreement with a vesting schedule that will result
in the same vesting as if no early exercise had occurred; and

 

    	 

     

    

 

(d)
if your option is an Incentive Stock Option, then, to the extent that the aggregate Fair Market Value (determined at the Date of
Grant) of the shares of Common Stock with respect to which your option plus all other Incentive Stock Options you hold are exercisable
for the first time by you during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars
($100,000), your option(s) or portions thereof that exceed such limit (according to the order in which they were granted) will be treated
as Nonstatutory Stock Options.

 

5.
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”.

 

(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)
If this option is a Nonstatutory Stock Option, 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.

 

6.
Whole Shares. You may exercise your option only for whole shares of Common Stock.

 

7.
Securities Law Compliance. In no event may you exercise your option unless the shares
of Common Stock issuable upon such exercise are then registered under the Securities Act or, if not registered, the Company has determined
that such 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).

 

    	 

     

    

 

8.
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)
the Expiration Date indicated in your Grant Notice; or

 

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

 

If
your option is an Incentive Stock Option, note that to obtain the federal income tax advantages associated with an Incentive Stock Option,
the Code requires that at all times beginning on the Date of Grant and ending on the day three (3) months before the date of your option’s
exercise, you must be an employee of the Company or an Affiliate, except in the event of your death or Disability. The Company has provided
for extended exercisability of your option under certain circumstances for your benefit but cannot guarantee that your option will necessarily
be treated as an Incentive Stock Option if you continue to provide services to the Company or an Affiliate as a Consultant or Director
after your employment terminates or if you otherwise exercise your option more than three (3) months after the date your employment with
the Company or an Affiliate terminates.

 

9.
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.

 

(c)
If your option is an Incentive Stock Option, by exercising your option you agree that you will notify the Company in writing within
fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that
occurs within two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise
of your option.

 

(d)
By accepting your option you agree that you will not sell, dispose of, transfer, make any short sale of, grant any option for the
purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with respect to any shares of Common
Stock or other securities of the Company held by you, for a period of one hundred eighty (180) days following the effective date of a
registration statement of the Company filed under the Securities Act or such longer period as the underwriters or the Company will request
to facilitate compliance with FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar rules or regulation(the
“Lock-Up Period”); provided, however, that nothing contained in this section will prevent the exercise
of a repurchase option, if any, in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other
agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary
to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect
to your shares of Common Stock until the end of such period. You also agree that any transferee of any shares of Common Stock (or other
securities) of the Company held by you will be bound by this Section 9(d). The underwriters of the Company’s stock are intended
third party beneficiaries of this Section 9(d) and will have the right, power and authority to enforce the provisions hereof as though
they were a party hereto.

 

    	 

     

    

 

10.
Transferability. Except as otherwise provided in this Section 10, 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.
If this option is an Incentive Stock Option, this option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

 

(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.

 

11.
Right of First Refusal. Shares of Common Stock that you acquire upon exercise of your
option are subject to any right of first refusal that may be described in the Company’s bylaws in effect at such time the Company
elects to exercise its right; provided, however, that if there is no right of first refusal described in the Company’s bylaws
at such time, the right of first refusal described below will apply. The Company’s right of first refusal will expire on the first
date upon which any security of the Company is listed (or approved for listing) upon notice of issuance on a national securities exchange
or quotation system (the “Listing Date”).

 

(a)
Prior to the Listing Date, you may not validly Transfer (as defined below) any shares of Common Stock acquired upon exercise of your
option, or any interest in such shares, unless such Transfer is made in compliance with the following provisions:

 

(i)
Before there can be a valid Transfer of any shares of Common Stock or any interest therein, the record holder of the shares of Common
Stock to be transferred (the “Offered Shares”) will give written notice (by registered or certified mail) to
the Company. Such notice will specify the identity of the proposed transferee, the cash price offered for the Offered Shares by the proposed
transferee (or, if the proposed Transfer is one in which the holder will not receive cash, such as an involuntary transfer, gift, donation
or pledge, the holder will state that no purchase price is being proposed), and the other terms and conditions of the proposed Transfer.
The date such notice is mailed will be hereinafter referred to as the “Notice Date” and the record holder of
the Offered Shares will be hereinafter referred to as the “Offeror.” If, from time to time, there is any stock
dividend, stock split or other change in the character or amount of any of the outstanding Common Stock which is subject to the provisions
of your option, then in such event any and all new, substituted or additional securities to which you are entitled by reason of your
ownership of the shares of Common Stock acquired upon exercise of your option will be immediately subject to the Company’s Right
of First Refusal (as defined below) with the same force and effect as the shares subject to the Right of First Refusal immediately before
such event.

 

    	 

     

    

 

(ii)
For a period of thirty (30) calendar days after the Notice Date, or such longer period as may be required to avoid the classification
of your option as a liability for financial accounting purposes, the Company will have the option to purchase all (but not less than
all) of the Offered Shares at the purchase price and on the terms set forth in Section 11(a)(iii) (the Company’s “Right
of First Refusal”). In the event that the proposed Transfer is one involving no payment of a purchase price, the purchase
price will be deemed to be the Fair Market Value of the Offered Shares as determined in good faith by the Board in its discretion. The
Company may exercise its Right of First Refusal by mailing (by registered or certified mail) written notice of exercise of its Right
of First Refusal to the Offeror prior to the end of said thirty (30) days (including any extension required to avoid classification of
the option as a liability for financial accounting purposes).

 

(iii)
The price at which the Company may purchase the Offered Shares pursuant to the exercise of its Right of First Refusal will be the
cash price offered for the Offered Shares by the proposed transferee (as set forth in the notice required under Section 11(a)(i)), or
the Fair Market Value as determined by the Board in the event no purchase price is involved. To the extent consideration other than cash
is offered by the proposed transferee, the Company will not be required to pay any additional amounts to the Offeror other than the cash
price offered (or the Fair Market Value, if applicable). The Company’s notice of exercise of its Right of First Refusal will be
accompanied by full payment for the Offered Shares and, upon such payment by the Company, the Company will acquire full right, title
and interest to all of the Offered Shares.

 

(iv)
If, and only if, the option given pursuant to Section 11(a)(ii) is not exercised, the Transfer proposed in the notice given pursuant
to Section 11(a)(i) may take place; provided, however, that such Transfer must, in all respects, be exactly as proposed in said
notice except that such Transfer may not take place either before the tenth (10th) calendar day after the expiration of the
thirty (30) day option exercise period or after the ninetieth (90th) calendar day after the expiration of the thirty (30)
day option exercise period, and if such Transfer has not taken place prior to said ninetieth (90th) day, such Transfer may
not take place without once again complying with this Section 11(a). The option exercise periods in this Section 11(a)(iv) will be adjusted
to include any extension required to avoid the classification of your option as a liability for financial accounting purposes.

 

(b)
As used in this Section 11, the term “Transfer” means any sale, encumbrance, pledge, gift or other form
of disposition or transfer of shares of Common Stock or any legal or equitable interest therein; provided, however, that the term
Transfer does not include a transfer of such shares or interests by will or intestacy to your Immediate Family (as defined below). In
such case, the transferee or other recipient will receive and hold the shares of Common Stock so transferred subject to the provisions
of this Section, and there will be no further transfer of such shares except in accordance with the terms of this Section. As used herein,
the term “Immediate Family” will mean your spouse, the lineal descendant or antecedent, father, mother, brother
or sister, child, adopted child, grandchild or adopted grandchild of you or your spouse, or the spouse of any child, adopted child, grandchild
or adopted grandchild of you or your spouse.

 

    	 

     

    

 

(c)
None of the shares of Common Stock purchased on exercise of your option will be transferred on the Company’s books nor will
the Company recognize any such Transfer of any such shares or any interest therein unless and until all applicable provisions of this
Section 11 have been complied with in all respects. The certificates of stock evidencing shares of Common Stock purchased on exercise
of your option will bear an appropriate legend referring to the transfer restrictions imposed by this Section 11.

 

(d)
To ensure that the shares subject to the Company’s Right of First Refusal will be available for repurchase by the Company,
the Company may require you to deposit the certificates evidencing the shares that you purchase upon exercise of your option with an
escrow agent designated by the Company under the terms and conditions of an escrow agreement approved by the Company. If the Company
does not require such deposit as a condition of exercise of your option, the Company reserves the right at any time to require you to
so deposit the certificates in escrow. As soon as practicable after the expiration of the Company’s Right of First Refusal, the
agent will deliver to you the shares and any other property no longer subject to such restriction. In the event the shares and any other
property held in escrow are subject to the Company’s exercise of its Right of First Refusal, the notices required to be given to
you will be given to the escrow agent, and any payment required to be given to you will be given to the escrow agent. Within thirty (30)
days after payment by the Company for the Offered Shares, the escrow agent will deliver the Offered Shares that the Company has repurchased
to the Company and will deliver the payment received from the Company to you.

 

12.
Right of Repurchase. To the extent provided in the Company’s bylaws in effect
at such time the Company elects to exercise its right, the Company will have the right to repurchase all or any part of the shares of
Common Stock you acquire pursuant to the exercise of your option.

 

13.
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.

 

14.
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)
If this option is a Nonstatutory Stock Option, then 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 minimum 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). If the date of determination of any
tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the preceding
sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate
number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate
the determination of such tax withholding obligation to the date of exercise of your option. 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.

 

15.
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. Because the Common Stock
is not traded on an established securities market, the Fair Market Value is determined by the Board, perhaps in consultation with an
independent valuation firm retained by the Company. You acknowledge that there is no guarantee that the Internal Revenue Service will
agree with the valuation as determined by the Board, and you will not make any claim against the Company, or any of its Officers, Directors,
Employees or Affiliates in the event that the Internal Revenue Service asserts that the valuation determined by the Board is less than
the “fair market value” as subsequently determined by the Internal Revenue Service.

 

16.
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.

 

17.
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. 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. No recovery of compensation under such a clawback policy will be an event giving rise to a right to voluntarily terminate
employment upon a resignation for “good reason,” or for a “constructive termination” or any similar term under
any plan of or agreement with the Company.

 

    	 

     

    

 

18.
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.

 

19.
Stockholder Rights. You will not have any 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
rights as a stockholder of the Common Stock 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.

 

20.
Choice of Law. The interpretation, performance and enforcement of this Option Agreement
shall be governed by the laws of the State of Delaware without regard to that state’s conflicts of laws rules.

 

21.
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.

 

22.
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.

 

(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 shall be deemed to be signed by the Company and the Optionholder upon the signing by the Optionholder of the Stock Option
Grant Notice to which it is attached.

 

    	 

     

    

 

Attachment
II

 

2018
Equity Incentive Plan

 

    	 

     

    

 

Attachment
III

 

Notice
of Exercise

 

    	 

     

    

 

NOTICE
OF EXERCISE

 

Melt
Pharmaceuticals, Inc.

200
Reservoir Street, Suite 303

	Needham,
  MA 02464	Date
  of Exercise: _______________

 

This
constitutes notice to Melt Pharmaceuticals, 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 (check one):	Incentive
    ☐	Nonstatutory
    ☐
	 	 	 
	Stock
    option dated:	_______________	_______________
	 	 	 
	Number
    of Shares as

    to which option is

    exercised:	_______________	_______________
	 	 	 
	Certificates
    to be

    issued in name of:	_______________	_______________
	 	 	 
	Total
    exercise price:	$______________	$______________
	 	 	 
	Cash,
    check, bank draft or money order payment delivered

    herewith:	$______________	$______________
	 	 	 
	[Value
    of ________ Shares delivered herewith1:	$______________	$______________]
	 	 	 
	[Value
    of ________ Shares pursuant to net exercise2:	$______________	$______________]
	 	 	 
	[Regulation
    T Program (cashless exercise3):	$______________	$______________]

 

 

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 option must be a Nonstatutory Stock Option, and Melt Pharmaceuticals, Inc. 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.

 

    	 

     

    

 

By
this exercise, I agree (i) to provide such additional documents as you may require pursuant to the terms of the 2018
Equity Incentive Plan, (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, and (iii) if this exercise relates to an incentive stock option, to notify you in writing
within fifteen (15) days after the date of any disposition of any of the Shares issued upon exercise of this option that occurs within
two (2) years after the date of grant of this option or within one (1) year after such Shares are issued upon exercise of this option.

 

I
hereby make the following certifications and representations with respect to the number of Shares listed above, which are being acquired
by me for my own account upon exercise of the option as set forth above:

 

I
acknowledge that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
and are deemed to constitute “restricted securities” under Rule 701 and Rule 144 promulgated under the Securities Act. I
warrant and represent to the Company that I have no present intention of distributing or selling said Shares, except as permitted under
the Securities Act and any applicable state securities laws.

 

I
further acknowledge that I will not be able to resell the Shares for at least ninety (90) days after the stock of the Company becomes
publicly traded (i.e., subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934) under
Rule 701 and that more restrictive conditions apply to affiliates of the Company under Rule 144.

 

I
further acknowledge that all certificates representing any of the Shares subject to the provisions of the Option shall have endorsed
thereon appropriate legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to the Company’s
articles of incorporation, bylaws and/or applicable securities laws.

 

I
further agree that, if required by the Company (or a representative of the underwriters) in connection with the first underwritten registration
of the offering of any securities of the Company under the Securities Act, I will not sell, dispose of, transfer, make any short sale
of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with
respect to any shares of Common Stock or other securities of the Company for a period of one hundred eighty (180) days following the
effective date of a registration statement of the Company filed under the Securities Act (or such longer period as the underwriters or
the Company shall request to facilitate compliance with FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar rule or regulation)
(the “Lock-Up Period”). I further agree to execute and deliver such other agreements as may be reasonably requested
by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In order
to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such period.

 

	 	Very
    truly yours,Exhibit
10.3

 

 Melt
Pharmaceuticals, Inc. 

 Restricted
Stock Award Grant Notice 

(2018
Equity Incentive Plan) 

 

Melt
Pharmaceuticals, Inc. (the “Company”), pursuant to its 2018 Equity Incentive Plan (the “Plan”),
hereby awards to Participant, in consideration of Participant’s services to the Company pursuant to the written consulting agreement
between the Company and Participant (the “Consulting Agreement”), a restricted stock award .covering the number
of shares of the Company’s Common Stock set forth below. The restricted stock award is subject to all of the terms and conditions
as set forth herein, in the Restricted Stock Award Agreement, the Plan, the Assignment Separate from Certificate and the Joint Escrow
Instructions, 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 Restricted Stock Award Agreement will have the same definitions as in the Plan or the Restricted Stock
Award Agreement, as applicable. If there is any conflict between the terms herein and the Plan, the terms of the Plan will control.

 

	Participant:	_____________________	 
	Date
    of Grant:	_____________________	 
	Vesting
    Commencement Date:	_____________________	 
	Number
    of Shares Subject to Award:	_____________________	 
	Consideration:	_____________________	 

 

Vesting
Schedule: [●]

 

Additional
Terms/Acknowledgements: The undersigned Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock
Award Grant Notice, the Restricted Stock Award Agreement and the Plan. Participant acknowledges and agrees that this Restricted Stock
Award Grant Notice and the Restricted Stock Award Agreement may not be modified, amended or revised except as provided therein or in
the Plan. Participant further acknowledges that as of the Date of Grant, this Restricted Stock Award Grant Notice, the Restricted Stock
Award Agreement and the Plan set forth the entire understanding between Participant and the Company regarding the acquisition of stock
in the Company and supersede all prior oral and written agreements, promises and/or representations on that subject with the exception
of (i) equity awards previously granted and delivered to Participant, (ii) any compensation recovery policy that is adopted by the Company
or is otherwise required by applicable law and (iii) any written employment or severance arrangement that would provide for vesting acceleration
of this restricted stock award upon the terms and conditions set forth therein. By accepting this restricted stock award, Participant
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.

 

    	 

    	 

    

 

	Melt Pharmaceuticals, Inc.	 	Participant:
	 	 	 	 	 
	 	 	 
	Signature	 	Signature
	 	                          	 	 	               
	By:	 	 	Date:	 
	Its:	 	 	 	 
	 	 	 	 	 
	Date:	 	 	 	 

 

 Attachments: 

 

	Attachment
    I:	Restricted
    Stock Award Agreement
	Attachment
    II:	2018
    Equity Incentive Plan
	Attachment
    III:	Assignment
    Separate from Certificate
	Attachment
    IV:	Joint
    Escrow Instructions
	Attachment
    V: 	Instructions
    for Filing 83(b) Election

 

    	 

    	 

    

 

 Attachment
I 

 

MELT
PHARMACEUTICALS, INC.

 

Restricted
Stock Award Agreement 

(2018
Equity Incentive Plan)

 

Pursuant
to the Restricted Stock Award Grant Notice (the “Grant Notice”) and this Restricted Stock Award Agreement (the
“Agreement” and together with the Grant Notice, the “Award”) and its 2018 Equity Incentive Plan
(the “Plan”), Melt Pharmaceuticals, Inc. (the “Company”) has awarded you, in exchange
for your services to the Company, the number of shares of the Company’s Common Stock subject to the Award as indicated in the Grant
Notice. Capitalized terms not explicitly defined in this Agreement but defined in the Plan will have the same definitions as in the Plan.
If there is any conflict between the terms in this Agreement and the Plan, the terms of the Plan will control.

 

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

 

1.
Vesting. Subject to the limitations contained herein,
your Award will vest pursuant to the Vesting Schedule in the Grant Notice, provided that vesting will cease upon the termination of your
Continuous Service (after taking into account any vesting acceleration that occurs as a result of such termination of Continuous Service
described in the Vesting Schedule in the Grant Notice). “Vested Shares” will mean shares subject to your Award
that have vested in accordance with the Vesting Schedule, and “Unvested Shares” will mean shares subject to
your Award that have not vested in accordance with the Vesting Schedule.

 

2.
Number of Shares. The number of shares subject to
your Award may be adjusted from time to time for Capitalization Adjustments.

 

3.
Securities Law Compliance. In no event may you be
issued any shares of Common Stock under your Award unless the shares are either then registered under the Securities Act or, if not registered,
the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act. Your Award and
the issuance of shares of Common Stock under your Award also must comply with all other applicable laws and regulations, and you will
not receive any shares of Common Stock under your Award if the Company determines that such receipt would not be in material compliance
with such laws and regulations.

 

4.
Reacquisition Right.

 

(a)
Reacquisition Right. In the event your Continuous Service terminates, the Company will automatically reacquire (the “Reacquisition
Right”) on the date that is ninety (90) days after the termination of your Continuous Service (the “Reacquisition
Date”) all Unvested Shares as of the date of your termination of Continuous Service (after taking into account any vesting
acceleration that occurs as a result of such termination of Continuous Service described in the Vesting Schedule in the Grant Notice)
without any payment to you (that is, for zero dollars ($0)) and without any required action or notice to you. You hereby agree to take
whatever action the Company deems necessary to effectuate the Company’s reacquisition of the Unvested Shares. Following such reacquisition,
the Company will become the legal and beneficial owner of the Unvested Shares being reacquired and all rights and interests in and related
to such shares, and the Company will have the right to transfer to its own name the Unvested Shares being reacquired by the Company without
further action by you. Notwithstanding anything to the contrary in this Section 4(a) or in this Agreement, the Company may elect to waive,
in its sole discretion, its Reacquisition Right in whole or in part by providing written notice to you (with a copy to the Escrow Agent,
as defined in Section 7), at any time prior to or on the Reacquisition Date, and the Escrow Agent may then release to you the number
of shares of Common Stock not being reacquired by the Company.

 

    	 

    	 

    

 

(b)
Capitalization Adjustments. In the event of a Capitalization Adjustment, then any and all new, substituted or additional securities
or other property to which you are entitled by reason of your ownership of the Unvested Shares will be immediately subject to the Reacquisition
Right with the same force and effect as the Unvested Shares subject to the Reacquisition Right immediately before such event, but only
to the extent the Unvested Shares were at the time covered by the Reacquisition Right.

 

(c)
Corporate Transactions. To the extent the Reacquisition Right remains in effect following a Corporate Transaction or Change in Control,
unless otherwise provided by the Board pursuant to the terms of the Plan, it will apply to the new capital stock, cash or other property
received in exchange for the Unvested Shares in consummation of the Corporate Transaction or Change in Control, as applicable, but only
to the extent the Unvested Shares were at the time covered by such right.

 

(d)
Termination of Reacquisition Right. The Company’s Reacquisition Right will terminate upon the earlier of (i) the Company’s
reacquisition in full of the Unvested Shares (or waiver of the Reacquisition Right) and (ii) the expiration of the Company’s Reacquisition
Right.

 

5.
Transfer Restrictions. In addition to any other
limitation on transfer created by applicable securities laws, you will not sell, assign, hypothecate, donate, encumber or otherwise dispose
of all or any part of the Unvested Shares or any interest in the Unvested Shares while such shares are subject to the Company’s
Reacquisition Right; provided, however, that an interest in the Unvested Shares may be transferred pursuant to a qualified domestic
relations order as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974. In the case of Vested Shares,
you will not sell, assign, hypothecate, donate, encumber or otherwise dispose of all or any part of the Vested Shares or any interest
in the Vested Shares except in compliance with this Agreement (including without limitation Section 6), the Company’s bylaws and
applicable securities laws.

 

6.
Right of First Refusal. The Vested Shares will be
subject to any right of first refusal applicable to shares of the Company’s capital stock owned by you or issued to you provided
in the Company’s bylaws in effect at such time as the Company elects to exercise its right. To the extent that the Vested Shares
are not subject to a right of first refusal provided in the Company’s bylaws at such time as the Company elects to exercise its
right, the Company will have a right of first refusal as to the Vested Shares on the terms and conditions in this Section 6 (the “Right
of First Refusal”). The Company’s Right of First Refusal will expire on the first date upon which any security of
the Company is listed (or approved for listing) upon notice of issuance on a national securities exchange or quotation system (the “Listing
Date”).

 

    	 

    	 

    

 

(a)
Prior to the Listing Date, you may not validly Transfer (as defined below) the Vested Shares, or any interest in the Vested Shares,
unless such Transfer is made in compliance with the following provisions:

 

(i)
 Before there can be a valid Transfer of any Vested Shares or any interest in the Vested Shares, the record holder of the shares
to be transferred (the “Offered Shares”) will give written notice (by registered or certified mail) to the
Company. Such notice will specify the identity of the proposed transferee, the cash price offered for the Offered Shares by the proposed
transferee (or, if the proposed Transfer is one in which the holder will not receive cash, such as an involuntary transfer, gift, donation
or pledge, the holder will state that no purchase price is being proposed), and the other terms and conditions of the proposed Transfer.
For purposes of this Section 6, the term “Notice Date” means the date such notice is mailed and the term “Offeror”
means the record holder of the Offered Shares. If, from time to time, there is any stock dividend, stock split or other change in the
character or amount of any of the outstanding Common Stock, then in such event any and all new, substituted or additional securities
to which you are entitled by reason of your ownership of the Common Stock acquired under this Agreement will be immediately subject to
the Company’s Right of First Refusal with the same force and effect as the shares subject to the Right of First Refusal immediately
before such event.

 

(ii)
For a period of thirty (30) calendar days after the Notice Date, or such longer period as may be required to avoid the classification
of the Award as a liability for financial accounting purposes, the Company will have the option to purchase all (but not less than all)
of the Offered Shares at the purchase price and on the terms set forth in Section 6(a)(iii). In the event that the proposed Transfer
is one involving no payment of a purchase price, the purchase price will be deemed to be the Fair Market Value of the Offered Shares
as determined in good faith by the Board in its discretion. The Company may exercise its Right of First Refusal by mailing (by registered
or certified mail) written notice of exercise of its Right of First Refusal to the Offeror prior to the end of said thirty (30) days,
as adjusted to include any extension required to avoid classification of the Award as a liability for financial accounting purposes.

 

(iii)
The price at which the Company may purchase the Offered Shares pursuant to the exercise of its Right of First Refusal will be the
cash price offered for the Offered Shares by the proposed transferee (as set forth in the notice required under Section 6(a)(i)), or
the Fair Market Value as determined by the Board in the event no purchase price is involved. To the extent consideration other than cash
is offered by the proposed transferee, the Company will not be required to pay any additional amounts to the Offeror other than the cash
price offered (or the Fair Market Value, if applicable). The Company’s notice of exercise of its Right of First Refusal will be
accompanied by full payment for the Offered Shares and, upon such payment by the Company, the Company will acquire full right, title
and interest to all of the Offered Shares.

 

(iv)
If, and only if, the option given pursuant to Section 6(a)(ii) is not exercised, the Transfer proposed in the notice given pursuant
to Section 6(a)(i) may take place; provided, however, that such Transfer must, in all respects, be exactly as proposed in said
notice except that such Transfer may not take place either before the tenth calendar day after the expiration of said thirty (30)-day
option exercise period or after the ninetieth (90th) calendar day after the expiration of said thirty (30)-day option exercise
period, and if such Transfer has not taken place prior to said ninetieth (90th) day, such Transfer may not take place without
once again complying with this Section 6. The option exercise periods in Section 6(a)(ii) will be adjusted to include any extension required
to avoid the classification of the Award as a liability for financial accounting purposes.

 

    	 

    	 

    

 

(b)
As used in Sections 6, the term “Transfer” means any sale, encumbrance, pledge, gift or other form of disposition
or transfer of the Vested Shares or any legal or equitable interest in the Vested Shares; provided, however, that the term Transfer
does not include a transfer of such shares or interests by will or intestacy to your Immediate Family (as defined below). In such case,
the transferee or other recipient will receive and hold the shares so transferred subject to the provisions of this Section, and there
will be no further transfer of such shares except in accordance with the terms of this Section 6. As used herein, the term “Immediate
Family” will mean your spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child,
grandchild or adopted grandchild of you or your spouse, or the spouse of any child, adopted child, grandchild or adopted grandchild of
you or your spouse.

 

(c)
No Vested Shares will be transferred on the Company’s books nor will the Company recognize any such Transfer of any such shares
or any interest in the Vested Shares unless and until all applicable provisions of this Section 6 have been complied with in all respects.
The certificates of stock evidencing the Vested Shares will bear an appropriate legend referring to the transfer restrictions imposed
by this Section 6.

 

7.
Escrow of Common Stock.

 

(a)
Escrow of Unvested Shares. As security for your faithful performance of the terms of this Agreement and to ensure the availability
for delivery of the Unvested Shares upon exercise of the Company’s Reacquisition Right, you agree that the shares issued under
your Award will be held in escrow pursuant to the terms of the Joint Escrow Instructions attached to the Grant Notice as Attachment
IV. You agree to execute and deliver to the individual designated as the escrow agent in the Joint Escrow Instructions
or person’s designee (the “Escrow Agent”), (i) the Joint Escrow Instructions and (ii) two (2) Assignment
Separate From Certificate forms (with date and number of shares blank) substantially in the form attached to the Grant Notice
as Attachment III and deliver the same, along with the certificate or certificates
evidencing the shares, to be held and used by the Escrow Agent pursuant to the terms of the Joint Escrow Instructions.

 

(b)
Escrow of Vested Shares. Following the termination of the escrow of the Unvested Shares (as described in Section 7(a)) and the release
of such shares, to ensure that the Vested Shares will be available for repurchase by the Company in the event the Company exercises its
Right of First Refusal, the Company may require you to deposit the certificates evidencing the Vested Shares that you acquire under this
Agreement with an escrow agent designated by the Company under the terms and conditions of an escrow agreement approved by the Company.
If the Company does not require such deposition as a condition of your acquisition of the shares of Common Stock under this Award, the
Company reserves the right at any time to require you to so deposit the certificates in escrow. As soon as practicable after the expiration
of the Company’s Right of First Refusal, the escrow agent will deliver to you the Vested Shares and any other property no longer
subject to such restriction. In the event the Vested Shares and any other property held in escrow are subject to the Company’s
Right of First Refusal, the notices required to be given to you will be given to the escrow agent. Within thirty (30) days after payment
by the Company for the Offered Shares upon exercise of its Right of First Refusal, as applicable, the escrow agent will deliver the shares
of Common Stock that the Company has purchased to the Company and will deliver the payment received from the Company to you.

 

    	 

    	 

    

 

8.
Rights as Stockholder. Subject to the provisions
of this Award, you will exercise all rights and privileges of a stockholder of the Company with respect to the shares of Common Stock
deposited in escrow. You will be deemed to be the holder of the shares for purposes of receiving any dividends that may be paid with
respect to such shares (which will be subject to the same vesting and forfeiture restrictions as apply to the shares to which they relate)
and for purposes of exercising any voting rights relating to such shares, even if some or all of such shares have not yet vested and
been released from the Company’s Reacquisition Right.

 

9.
Restrictive Legends. All certificates representing
the Common Stock issued under your Award will be endorsed with appropriate legends determined by the Company (in addition to any other
legend that may be required by other agreements between you and the Company).

 

10.
Award not a Service Contract. Your Award is not
an employment or service contract, and nothing in your Award 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 on the part of the Company or an Affiliate to continue your employment.
In addition, nothing in your Award 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 your Award is made, or 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 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 your Award (the
“Withholding Taxes”). The Company may, in its sole discretion, satisfy all or any portion of the Withholding
Taxes obligation relating to your Award by any of the following means or by a combination of such means: (i) withholding from any amounts
otherwise payable to you by the Company; (ii) causing you to tender a cash payment; or (iii) withholding shares of Common Stock from
the shares of Common Stock issued or otherwise issuable to you in connection with the Award with a Fair Market Value equal to the amount
of such Withholding Taxes; provided, however, that the number of such shares of Common Stock withheld may not exceed the amount
necessary to satisfy the Company’s required tax withholding obligations using the maximum permitted statutory withholding rates
for federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to supplemental taxable income.

 

    	 

    	 

    

 

(b)
Unless the tax withholding obligations of the Company and any Affiliate are satisfied, the Company will have no obligation to issue
a certificate for such shares or release such shares from any escrow provided for in this Agreement.

 

12.
Market Stand-Off Agreement. By acquiring shares
of Common Stock under your Award, you agree that you will not sell, dispose of, transfer, make any short sale of, grant any option for
the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares of Common Stock
or other securities of the Company held by you, for a period of one hundred eighty (180) days following the effective date of a registration
statement of the Company filed under the Securities Act or such longer period as the underwriters or the Company request or as necessary
to permit compliance with FINRA Rule 2711 or NYSE Member Rule 472 and similar or successor regulatory rules and regulations (the “Lock-Up
Period”); provided, however, that nothing contained in this Section will prevent the exercise of a repurchase option,
if any, in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other agreements as may be reasonably
requested by the Company and the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto.
You also agree that any transferee of any shares of Common Stock or other securities of the Company held by you will be bound by this
Section. To enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock
until the end of such period. The underwriters of the Company’s stock are intended third party beneficiaries of this Section and
will have the right, power and authority to enforce the provisions of this Section as though they were a party to this Agreement.

 

13.
Tax Consequences. You agree to review with your
own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. You will rely solely on such advisors and not on any statements or representations of the Company or any of its agents. You
understand that you (and not the Company) will be responsible for your own tax liability that may arise as a result of this investment
or the transactions contemplated by this Agreement. You understand that Section 83 of the Code taxes as ordinary income to you the fair
market value of the shares of Common Stock issued to you pursuant to the Award as of the date any restrictions on such shares lapse (that
is, as of the date on which part or all of such shares vest). In this context, “restriction” includes the right of the Company
to reacquire the Common Stock pursuant to the Reacquisition Right set forth above. You understand that you may elect to be taxed at the
time the Common Stock is issued to you pursuant to your Award, rather than when and as the Reacquisition Right expires, by filing an
election under Section 83(b) of the Code (an “83(b) Election”) with the Internal Revenue Service within thirty
(30) days after the date your acquire shares of Common Stock pursuant to your Award. Even if the fair market value of the Common Stock
at the time of grant of your Award equals the amount paid for the Common Stock, the 83(b) Election must be made to avoid income under
Section 83(a) in the future. You understand that failure to file such an 83(b) Election in a timely manner may result in adverse tax
consequences for you. You further understand that you may file an additional copy of such 83(b) Election with your federal income tax
return for the calendar year in which you make such 83(b) Election. You acknowledge that the foregoing is only a summary of the effect
of U.S. federal income taxation with respect to issuance of the Common Stock pursuant to your Award, and does not purport to be complete.
You further acknowledge that the Company has directed you to seek independent advice regarding the applicable provisions of the Code,
the income tax laws of any municipality, state or foreign country in which you may reside, and the tax consequences of your death. You
assume all responsibility for filing an 83(b) Election and paying all taxes resulting from such election or the lapse of the restrictions
on the Common Stock. YOU ACKNOWLEDGE THAT IT IS YOUR OWN RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER
SECTION 83(B) OF THE CODE. THE COMPANY AND ITS LEGAL COUNSEL CANNOT ASSUME RESPONSIBILITY FOR FAILURE TO FILE THE 83(B) ELECTION IN A
TIMELY MANNER UNDER ANY CIRCUMSTANCES.

 

    	 

    	 

    

 

You
further acknowledge that because the Company’s shares of Common Stock are not traded on an established securities market, the fair
market value of the shares subject to your Award is determined by the Company, perhaps in consultation with an independent valuation
firm retained by the Company, and you will not make any claim against the Company, or any of its officers, directors, employees, affiliates
or agents regarding the valuation of the shares. You acknowledge that you are solely responsible for any taxes imposed on you as a result
of the receipt of the Award and the vesting of the shares thereunder, and that the Company has not advised you, and you are not relying
on, any tax advice from the Company or any of its agents.

 

14.
Notices. Any notices provided for in your Award
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 the Company to you, five days after deposit in the U.S. 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 Award by electronic means or to request your consent to participate in the Plan by electronic means. By accepting this
Award, 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.

 

15.
Governing Plan Document. Your Award is subject to
all the provisions of the Plan, the provisions of which are hereby made a part of your Award, 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. In the event of any conflict
between the provisions of your Award and those of the Plan, the provisions of the Plan will control. In addition, your Award (and any
compensation paid or shares issued under your Award) 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.

 

16.
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.

 

17.
Effect on Other Employee Benefit Plans. The value
of this Award will not be included as compensation, earnings, salaries, or other similar teams 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.

 

    	 

    	 

    

 

18.
Severability. If all or any part of this Award 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 Award or the Plan not declared to be unlawful or invalid. Any Section of this Award (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 Award are transferable by the Company 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.
Your rights and obligations under your Award may only be assigned with the prior written consent of the Company.

 

(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 Award.

 

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

 

*          
*          *

 

This
Restricted Stock Award Agreement will be deemed to be signed by the Company and Participant upon the signing by Participant of the Restricted
Stock Award Grant Notice to which it is attached.

 

    	 

    	 

    

 

 Attachment
II 

 

2018
EQUITY INCENTIVE PLAN

 

    	 

    	 

    

 

 Attachment
III 

 

Assignment
Separate From Certificate

 

 For
Value Received and pursuant to that certain
Restricted Stock Award Grant Notice and Restricted Stock Award Agreement dated___________ (the “Award”),
[Participant’s Name] hereby sells, assigns and transfers unto Melt Pharmaceuticals, Inc., a Nevada corporation (the
“Company”)________________(_________) shares of the Common Stock of the Company, standing in the
undersigned’s name on the books of the Company represented by Certificate No(s).___ and does hereby irrevocably constitute and
appoint the Company’s Secretary as attorney-in-fact to transfer the said Common Stock on the books of the Company with full
power of substitution in the premises. This Assignment Separate From Certificate may be used only in accordance with and subject to
the terms and conditions of the Award, in connection with the reacquisition of shares of Common Stock of the Company issued to the
undersigned pursuant to the Award, and only to the extent that such shares remain subject to the Company’s Reacquisition Right
under the Award.

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	(Signature)
	 	 	 	 
	 	 	 	 
	 	 	 	(Print
    Name)

 

Instructions:
Please do not fill in any blanks other than the “Signature” line and the “Print Name” line.

 

    	 

    	 

    

 

 Attachment
IV 

 

Joint
Escrow Instructions 

 

Secretary

Melt
Pharmaceuticals, Inc.

12264
El Camino Real, Suite 350

San
Diego, CA 92130

 

Dear
Sir or Madam:

 

As
Escrow Agent for both Melt Pharmaceuticals, Inc., a Nevada corporation (the “Company”), and the undersigned
recipient (“Recipient”) of Common Stock of the Company (the “Common Stock”), you
are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of the Restricted Stock Award Grant Notice
(the “Grant Notice”), dated [●] [●], [●] to which a copy of these Joint Escrow Instructions
is attached as Attachment IV, and pursuant to the terms of the Restricted Stock Award Agreement (the “Agreement”),
which is Attachment I to the Grant Notice, in accordance with the following instructions:

 

1.
In the event Recipient ceases to render services to the Company or an affiliate of the Company during the vesting period set forth
in the Grant Notice, the Company or its affiliate or assignee, as applicable, will give to Recipient and you a written notice specifying
the number of shares of Common Stock that will be transferred to the Company. Recipient and the Company hereby irrevocably authorize
and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice.

 

2.
At the closing you are directed (a) to date any stock assignments necessary for the transfer in question, (b) to fill in the number
of shares of Common Stock being transferred, and (c) to deliver the same, together with the certificate evidencing the shares of Common
Stock to be transferred, to the Company.

 

3.
Recipient irrevocably authorizes the Company to deposit with you any certificates evidencing shares of Common Stock to be held by
you hereunder and any additions and substitutions to said shares of Common Stock as specified in the Grant Notice and the Agreement.
Recipient does hereby irrevocably constitute and appoint you as Recipient’s attorney-in-fact and agent for the term of this escrow
to execute with respect to such securities and other property all documents of assignment and/or transfer and all stock certificates
necessary or appropriate to make all securities negotiable and complete any transaction herein contemplated.

 

4.
This escrow will terminate and the shares of Common Stock held hereunder will be released in full upon the full vesting of the shares
of Common Stock in accordance with the vesting schedule set forth in the Grant Notice or upon the earlier return of the shares of Common
Stock to the Company pursuant to the Company’s Reacquisition Right (as defined in the Agreement) or other forfeiture condition
under the Company’s 2018 Equity Incentive Plan.

 

    	 

    	 

    

 

5.
If at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging
to Recipient, you will deliver all of same to Recipient and will be discharged of all further obligations hereunder; provided, however,
that if at the time of termination of this escrow you are advised by the Company that the property subject to this escrow is the subject
of a pledge or other security agreement, you will deliver all such property to the pledgeholder or other person designated by the Company.

 

6.
Except as otherwise provided in these Joint Escrow Instructions, your duties hereunder may be altered, amended, modified or revoked
only by a writing signed by all of the parties hereto.

 

7.
You will be obligated only for the performance of such duties as are specifically set forth herein and may rely and will be protected
in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented
by the proper party or parties or their assignees. You will not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact for Recipient while acting in good faith and any act done or omitted by you pursuant to the advice
of your own attorneys will be conclusive evidence of such good faith.

 

8.
You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments
or decrees of any court. In case you obey or comply with any such order, judgment or decree of any court, you will not be liable to any
of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment
or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

 

9.
You will not be liable in any respect on account of the identity, authority or rights of the parties executing or delivering or purporting
to execute or deliver the Grant Notice, the Agreement or any documents or papers deposited or called for hereunder.

 

10.
You will not be liable for the outlawing of any rights under any statute of limitations with respect to these Joint Escrow Instructions
or any documents deposited with you.

 

11.
Your responsibilities as Escrow Agent hereunder will terminate if you cease to be Secretary of the Company or if you resign by written
notice to the Company. In the event of any such termination, the Secretary of the Company will automatically become the successor Escrow
Agent unless the Company appoints another successor Escrow Agent and Recipient hereby confirms the appointment of such successor as Recipient’s
attorney-in-fact and agent to the full extent of your appointment.

 

12.
If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect
hereto, the necessary parties hereto will join in furnishing such instruments.

 

    	 

    	 

    

 

13.
It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of
the securities, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities
until such dispute has been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment
of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you will be under no
duty whatsoever to institute or defend any such proceedings.

 

14.
Any notice required or permitted hereunder will be given in writing and will be deemed effectively given upon personal delivery,
including delivery by express courier or five (5) days after deposit in the U.S. Post Office, by registered or certified mail with postage
and fees prepaid, addressed to each of the other parties ‘hereunto entitled at the following addresses, or at such other addresses
as a party may designate by ten (10) days’ advance written notice to each of the other parties hereto:

 

	 	Company:
    	Melt
    Pharmaceuticals, Inc.
	 	 	12264
    El Camino Real, Suite 350
	 	 	San
    Diego, CA 92130
	 	 	Attn:
    Chief Financial Officer
	 	 	 
	 	Recipient:	___________________________
	 	 	___________________________
	 	 	___________________________
	 	 	___________________________
	 	 	 
	 	Escrow
    Agent:	Secretary
	 	 	Melt
    Pharmaceuticals, Inc.
	 	 	12264
    El Camino Real, Suite 350
	 	 	San
    Diego, CA 92130

 

By
signing these Joint Escrow Instructions you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not
become a party to the Grant Notice or the Agreement.

 

15.
You are entitled to employ such legal counsel, including without limitation Cooley LLP, and other experts as you may deem necessary
to advise you in connection with your obligations hereunder. You may rely upon the advice of such counsel, and may pay such counsel reasonable
compensation therefor. The Company will be responsible for all fees generated by such legal counsel in connection with your obligations
hereunder.

 

16.
This instrument will be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted
assigns. It is understood and agreed that references to “you” or “your” herein refer to the original Escrow Agent
and to any and all successor Escrow Agents. It is understood and agreed that the Company may at any time or from time to time assign
its rights under the Grant Notice, the Agreement and these Joint Escrow Instructions in whole or in part.

 

17.
These Joint Escrow Instructions will be governed by and interpreted and determined in accordance with the laws of the State of Nevada,
as such laws are applied by Nevada courts to contracts made and to be performed entirely in Nevada by residents of that state.

 

    	 

    	 

    

 

	 	Very
    truly yours,
	 	 	 
	 	Melt
    Pharmaceuticals, Inc.
	 	 	                                            
	 	By	
	 	Title	 

 

	 	Recipient
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print
    Name)

 

	Escrow
    Agent:	 
	 	 
	 	 
	(Signature)	 
	 	 
	 	 
	(Print
    Name)	 

 

    	 

    	 

    

 

 Attachment
V 

 

 Instructions
for Filing Section 83( b)
Election 

 

Attached
is a form of election Under Section 83(b) of the Internal Revenue Code and an accompanying IRS cover letter. Please fill in your social
security number and sign the election and cover letter, then proceed as follows:

 

	 	a)	Make
    three copies of the completed election form and one copy of the IRS cover letter.
	 	 	 
	 	b)	Send
the original signed election form and cover letter, the copy of the cover letter, and a self-addressed stamped return envelope
to the Internal Revenue Service Center where you would otherwise file your tax return.1 Even if an address for an Internal
Revenue Service Center is already included in the forms below, it is your obligation to verify such address. This can be done by searching
for the term “where to file” on www.irs.gov or by calling 1 (800) 829-1040.
	 	 	 
	 	 	Sending
    the election via certified mail, requesting a return receipt, with the certified mail number written on the cover letter is also
    recommended.
	 	 	 
	 	c)	Deliver
    one copy of the completed election form to Melt Pharmaceuticals, Inc.
	 	 	 
	 	d)	Applicable
state law may require that you attach a copy of the completed election form to your 2018 state personal income tax return(s) when you
file it for the year (assuming you file a state personal income tax return).2
	 	 	 
	 	 	Please
    consult your personal tax advisor(s) to determine whether or not a copy of this Section 83(b) election should be filed with your
    state personal income tax return(s).
	 	 	 
	 	e)	Retain
    one copy of the completed election form for your personal permanent records.

 

Note:
An additional copy of the completed election form must be delivered to the transferee (recipient) of the property if the service provider
and the transferee are not the same person.

 

Please
note that the election must be filed with the IRS within 30 days of the date of your restricted stock grant. Failure to file within that
time will render the election void and you may recognize ordinary taxable income as your vesting restrictions lapse. Melt Pharmaceuticals,
Inc. and its counsel cannot assume responsibility for failure to file the election in a timely manner under any circumstances.

 

 

1
Note: Per Treasury Regulation § 1.83-2(c), the Section 83(b) election must be filed with the IRS office where
the taxpayer otherwise files his or her tax return. As of October 2016, if you live in a foreign country or are a dual status alien (foreigners
that will have lived both in their home country and the United States during the year in which they make the election) you should send
the 83(b) election to Austin, TX 73301-0215. You can verify this is still the correct address at: http://www.irs.gov/uac/Where-to-File-Addresses-for--Taxpayers-and--Tax-Professionals-Filing-Form-1040.

 

2
Note: Pursuant to Treasury Regulations finalized in July 2016 (Treas. Reg. § 1.83-2(c); T.D. 9779), taxpayers
are no longer required to submit a copy of a Code Sec. 83(b) election with their federal personal income tax returns for
the year in which the property subject to the election was transferred. However, you are strongly encouraged to retain a copy of the
completed election form and the IRS filed-stamped copy of your cover letter along with a copy of the federal personal income tax return
for the year in which the property subject to the election was transferred for your personal permanent records in case you ever need
to demonstrate proper and timely filing (a common requirement imposed by acquirers in M&A transactions).

 

    	 

    	 

    

 

Section
83(  B) Election

  

[●],
201[_]

 

Department
of the Treasury

Internal
Revenue Service

[City,
State Zip]3

 

	Re:	Election
    Under Section 83(b) 

 

Ladies
and Gentlemen:

 

The
undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in gross income
as compensation for services the excess (if any) of the fair market value of the shares described below over the amount paid for those
shares. The following information is supplied in accordance with Treasury Regulation § 1.83-2:

 

	1.	The
    name, social security number, address of the undersigned, and the taxable year for which this election is being made are:

 

	 	Name:	______________________
	 	Social
    Security Number:	______________________
	 	Address:	______________________
	 	 	______________________

 

	 	Taxable
    year: Calendar year 201[_].
	 	 
	2.	The
    property that is the subject of this election: [#] shares of common stock (the “Shares”)
    of Melt Pharmaceuticals, Inc., a Nevada corporation (the “Company”).
	 	 
	3.	The date on which the Shares were transferred to the
    undersigned: [●], 201[_]
	 	 
	 	The
    Shares are subject to the following restrictions:
	 	 
	 	The
    Shares are subject to forfeiture or repurchase at less than their fair market value if certain performance milestones regarding the
    Company’s business do not occur within a designed time period or if the undersigned does not continue to provide services for
    the Company for a designated period of time. The risk of forfeiture or repurchase lapses over a specified vesting period.
	 	 
	4.	The fair market value of the Shares at the time of the
    transfer to the undersigned (determined without regard to any restriction other than a nonlapse restriction as defined in Treasury
    Regulation § 1.83-3(h)): $[●] per Share x [#] Shares = $[●].
	 	 
	5.	The
    amount paid for the Shares transferred: $0 per Share x [#] Shares = $0.
	 	 
	6.	The
    amount to include in gross income is: $[●].4

 

The
undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his or her annual income
tax return not later than 30 days after the date of transfer of the Shares. A copy of the election also will be furnished to the person
for whom the services were performed and the transferee of the Shares, if any. The undersigned is the person performing the services
in connection with which the Shares were transferred.

 

	 	Very
    truly yours,
	 	 
	 	
	 	[Name]

 

 

3 Per Treasury Regulation § 1.83-2(c),
the Section 83(b) election must be filed with the IRS office where the person otherwise files his or her tax return. Assuming these are
individual taxpayers who would file a Form 1040, see http://www.irs.gov/uac/Where-to-File-Addresses-for--Taxpayers-and--Tax-Professionals-Filing-Fom-1040.
Use the address in the row which includes the state in which the service provider lives and in the column entitled “And you ARE
NOT enclosing a payment”.

 

4
This should equal the amount in Item 4 minus the amount in Item 5.

 

    	 

    	 

    

 

[●],
201[_]

 

CERTIFIED
MAIL NUMBER____________________

RETURN
SERVICE REQUESTED

 

Department
of the Treasury

Internal
Revenue Service

[City,
State Zip]

 

	Re:	Election
    Under Section 83(b) of the Internal Revenue Code

 

Dear
Sir or Madam:

 

Enclosed
please find an executed form of election under Section 83(b) of the Internal Revenue Code of 1986, as amended, filed with respect to
an interest in Melt Pharmaceuticals, Inc.

 

Also
enclosed is a copy of this letter and a stamped, self-addressed envelope. Please acknowledge receipt of these materials by marking the
copy when received and returning it to the undersigned.

 

Thank
you very much for your assistance.

 

	 	Very
    truly yours,
	 	 
	 	 
	 	[Name]

 

Enclosures

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