Exhibit 10.2


 


Award Number:           


 


ARCH THERAPEUTICS,
Inc.


 


RESTRICTED STOCK BONUS AWARD AGREEMENT


 


1.            
Issuance of Shares. Arch Therapeutics, Inc. a Nevada corporation (the “Company”), hereby issues to the
Grantee (the “Grantee”) named in the Notice of Restricted Stock Bonus Award (the “Notice”), the Total Number
of Shares of Common Stock Awarded set forth in the Notice (the “Shares”), subject to the Notice and this Restricted
Stock Bonus Award Agreement (the “Agreement”). All Shares issued hereunder will be deemed issued to the Grantee as
fully paid and nonassessable shares, and the Grantee will have the right to vote the Shares at meetings of the Company’s
stockholders. The Company shall pay any applicable stock transfer taxes imposed upon the issuance of the Shares to the Grantee
hereunder.


 


2.            
Transfer Restrictions. The unregistered and restricted Shares issued to the Grantee hereunder may not be sold, transferred
by gift, pledged, hypothecated, or otherwise transferred or disposed of (collectively, “Transferred”) by the Grantee
(i) prior to the date when the Shares become vested pursuant to the Vesting Schedule set forth in the Notice; and (ii) thereafter
only if the Grantee shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Grantee, in
a form reasonably acceptable to the Company, to the effect that such Shares may be Transferred pursuant to an exemption from registration
under the Securities Act of 1933, as amended (the “Securities Act”) or if the Grantee provides the Company with reasonable
assurance (which may include customary stockholder representation letters) that such Shares can be Transferred pursuant to Rule
144 promulgated under the Securities Act. Any attempt to transfer Restricted Shares in violation of this Section 2 will be
null and void and will be disregarded.


 


3.            
Escrow of Stock. For purposes of facilitating the enforcement of the provisions of this Agreement, the Grantee agrees,
immediately upon receipt of the certificate(s) for the Restricted Shares, to deliver such certificate(s), together with an Assignment
Separate from Certificate in the form attached hereto as Exhibit A, executed in blank by the Grantee with respect to
each such stock certificate, to the Secretary or Assistant Secretary of the Company, or their designee, to hold in escrow for so
long as such Restricted Shares have not vested pursuant to the Vesting Schedule set forth in the Notice, with the authority to
take all such actions and to effectuate all such transfers and/or releases as may be necessary or appropriate to accomplish the
objectives of this Agreement in accordance with the terms hereof. The Grantee hereby acknowledges that the appointment of the Secretary
or Assistant Secretary of the Company (or their designee) as the escrow holder hereunder with the stated authorities is a material
inducement to the Company to make this Agreement and that such appointment is coupled with an interest and is accordingly irrevocable.
The Grantee agrees that the Restricted Shares may be held electronically in a book entry system maintained by the Company’s
transfer agent or other third party and that all the terms and conditions of this Section 3 applicable to certificated Restricted
Shares will apply with the same force and effect to such electronic method for holding the Restricted Shares. The Grantee agrees
that such escrow holder shall not be liable to any party hereto (or to any other party) for any actions or omissions unless such
escrow holder is grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other document executed
by any signature purported to be genuine and may resign at any time. Upon the vesting of Restricted Shares, the escrow holder will,
without further order or instruction, transmit to the Grantee the certificate evidencing such Shares; provided, however,
that no transmittal of certificates evidencing the Shares will occur unless and until the Grantee has satisfied all Tax Withholding
Obligations (as defined in Section 5(c) below).


 






    	 	1	 



     


    

 


4.            
Additional Securities and Distributions.


 


(a)          
Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares
(the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as
a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s
capital structure, shall be retained in escrow in the same manner and subject to the same conditions and restrictions as the Restricted
Shares with respect to which they were issued, including, without limitation, the Vesting Schedule set forth in the Notice. The
Grantee shall be entitled to direct the Company to exercise any warrant or option received as Additional Securities upon supplying
the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee
may not direct the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the
Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. In the event
of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization
or other transaction that results in the creation of Additional Securities, the escrow holder is authorized to deliver to the issuer
the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities.


 


(b)         
The Company shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities
(whether vested or not), less any applicable withholding obligations.


 


5.            
Taxes.


 


(a)          
None


 


(b)          
Tax Liability. The Grantee is ultimately liable and responsible for all taxes owed by the Grantee in connection with
the Award, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that
arise in connection with the Award. Neither the Company nor any Related Entity makes any representation or undertaking regarding
the treatment of any tax withholding in connection with the grant or vesting of the Award or the subsequent sale of Shares subject
to the Award. The Company and its Related Entities do not commit and are under no obligation to structure the Award to reduce or
eliminate the Grantee’s tax liability.


 


(c)          
Payment of Withholding Taxes. Prior to any event in connection with the Award (e.g., vesting) that the Company determines
may result in any tax withholding obligation, whether United States federal, state, local or non-U.S., including any employment
tax obligation (the “Tax Withholding Obligation”), the Grantee must arrange for the satisfaction of the minimum amount
of such Tax Withholding Obligation in a manner acceptable to the Company.


 






    	 	2	 



     


    

 


(i)           
By Share Withholding. The Grantee authorizes the Company to, upon the exercise of its sole discretion, withhold from
those Shares issuable to the Grantee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding Obligation.
The Grantee acknowledges that the withheld Shares may not be sufficient to satisfy the Grantee’s minimum Tax Withholding
Obligation. Accordingly, the Grantee agrees to pay to the Company or any Related Entity as soon as practicable, including through
additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding of Shares
described above.


 


(ii)          
By Sale of Shares. Unless the Grantee determines to satisfy the Tax Withholding Obligation by some other means in
accordance with clause (iii) below, the Grantee’s acceptance of this Award constitutes the Grantee’s instruction and
authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to sell on the Grantee’s
behalf, in accordance with the provisions of Rule 144 promulgated under the Securities Act, a whole number of Shares from those
Shares issuable to the Grantee as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the
minimum applicable Tax Withholding Obligation. Such Shares will be sold on the day such Tax Withholding Obligation arises (e.g.,
a vesting date) or as soon thereafter as practicable. The Grantee will be responsible for all broker’s fees and other costs
of sale, and the Grantee agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating
to any such sale. To the extent the proceeds of such sale exceed the Grantee’s minimum Tax Withholding Obligation, the Company
agrees to pay such excess in cash to the Grantee. The Grantee acknowledges that the Company or its designee is under no obligation
to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy the Grantee’s
minimum Tax Withholding Obligation. Accordingly, the Grantee agrees to pay to the Company or any Related Entity as soon as practicable,
including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the sale
of Shares described above.


 


(iii)         
By Check, Wire Transfer or Other Means. At any time not less than five (5) business days (or such fewer number of
business days as determined by the Administrator) before any Tax Withholding Obligation arises (e.g., a vesting date), the Grantee
may elect to satisfy the Grantee’s Tax Withholding Obligation by delivering to the Company an amount that the Company determines
is sufficient to satisfy the Tax Withholding Obligation by (x) wire transfer to such account as the Company may direct, (y) delivery
of a certified check payable to the Company, or (z) such other means as specified from time to time by the Administrator.


 


Notwithstanding the foregoing, the Company
also may satisfy any Tax Withholding Obligation by offsetting any amounts (including, but not limited to, salary, bonus and severance
payments) due to the Grantee by the Company.


 






    	 	3	 



     


    

 


6.            
Stop-Transfer Notices. In order to ensure compliance with the restrictions on transfer set forth in this Agreement
or the Notice, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and, if
the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. The Company
may issue a “stop transfer” instruction if the Grantee fails to satisfy any Tax Withholding Obligations.


 


7.            
Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been
sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares
or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.


 


8.            
Restrictive Legends. The Grantee understands and agrees that the Company shall cause the legends set forth below
or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with
any other legends that may be required by the Company or by state or federal securities laws:


 


THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED
BY THE TERMS OF THAT CERTAIN RESTRICTED STOCK BONUS AWARD AGREEMENT BETWEEN THE COMPANY AND THE NAMED STOCKHOLDER. THE SHARES REPRESENTED
BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH SUCH AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
THE COMPANY.


 


9.            
Entire Agreement: Governing Law. The Notice, this Agreement and the CA constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company
and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except
by means of a writing signed by the Company and the Grantee. These agreements are to be construed in accordance with and governed
by the internal laws of the State of Nevada without giving effect to any choice of law rule that would cause the application of
the laws of any jurisdiction other than the internal laws of the State of Nevada to the rights and duties of the parties. Should
any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless
remain effective and shall remain enforceable.


 


10.          
Construction. The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed
a part of the Award for construction or interpretation. Except when otherwise indicated by the context, the singular shall include
the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless
the context clearly requires otherwise.


 


11.          
Administration and Interpretation. Any question or dispute regarding the administration or interpretation of the
Notice or this Agreement shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question
or dispute by the Administrator shall be final and binding on all persons.


 






    	 	4	 



     


    

 


12.          
Venue. The parties agree that any suit, action, or proceeding arising out of or relating to the Notice or this Agreement
shall be brought in the United States District Court for the District of Massachusetts (or should such court lack jurisdiction
to hear such action, suit or proceeding, in a Massachusetts state court in the County of Middlesex) and that the parties shall
submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection
the party may have to the laying of venue for any such suit, action or proceeding brought in such court. If any one or more provisions
of this Section 12 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such
provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.


 


13.          
Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given
upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit
in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed
to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing
from time to time to the other party.


 


END OF AGREEMENT


 






    	 	5	 



     


    

 


EXHIBIT A


 


STOCK ASSIGNMENT SEPARATE FROM
CERTIFICATE


 


 


FOR VALUE RECEIVED, ____________________
hereby sells, assigns and transfers unto _______________________, _________ (______) shares of the Common Stock of Arch Therapeutics,
Inc., a Nevada corporation (the “Company”), standing in his name on the books of, the Company represented by Certificate
No. _________________ herewith, and does hereby irrevocably constitute and appoint the Secretary of the Company attorney to
transfer the said stock in the books of the Company with full power of substitution.


 


DATED: ________________


 


____________________________________


 


[Please sign this document
but do not date it. The date and information of the transferee will be completed if and when the shares are assigned.]


 


 


 


 






    	 	1