Document:

Exhibit 10.1

 

AMENDMENT TO SERIES C WARRANTS TO PURCHASE
COMMON STOCK

 

This Amendment to Series
C Warrants to Purchase Common Stock (the “Amendment”) by and between Arch Therapeutics, Inc., a Nevada corporation
(the “Company”), and Cranshire Capital Master Fund, Ltd. (“Cranshire”) is made as of May
30, 2015 (the “Execution Date”).

 

RECITALS

 

WHEREAS, on
January 30, 2014, the Company entered into that certain Securities Purchase Agreement (the “Securities Purchase Agreement”)
with the investors named on the Schedule of Buyers attached thereto (collectively, the “Holders”) pursuant to
which, among other things, the Company issued to the Holders shares of Common Stock (as defined in the Series C Warrants (as defined
in the Securities Purchase Agreement)) and the Series C Warrants;

 

WHEREAS, the
Expiration Date (as defined in the Series C Warrants) is 5:00 p.m., New York time, on June 2, 2015;

 

WHEREAS, Section
9 of the Series C Warrants provides that the provisions of the Series C Warrants may be amended only with the written consent
of the Company and the Significant Buyers (as defined in the Securities Purchase Agreement);

 

WHEREAS, Cranshire
is the only Significant Buyer;

 

WHEREAS, the
Company and Cranshire, in its capacity as the only Significant Buyer, now wish to amend the Series C Warrants to extend the Expiration
Date on the terms and conditions set forth herein.

 

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

 

		1.	Definitions. Capitalized terms not otherwise defined in this Amendment shall have the meaning given to them in the Series
C Warrants.

 

		2.	Amendment to Series C Warrants. Section 16(h) of the Series C Warrants is hereby deleted in its entirety and
replaced with the following:

 

“(h)      “Expiration
Date” means 5:00 p.m., New York time, on July 2, 2015.”

 

		3.	Representations and Warranties of the Company. The Company represents and warrants to Cranshire
that, after giving effect to the Amendment, the Warrant Shares shall remain eligible for resale under the Company’s resale
registration statement on Form S-1 (File Number 333-194745) that became effective July 2, 2014.

 

    	 

    	 

    

  

		4.	Miscellaneous. To the extent that there are any inconsistencies between the terms of any
Series C Warrant and the terms of this Amendment, the terms of this Amendment shall prevail in effect. This Amendment may be executed
by the Parties in counterparts and may be executed and delivered by facsimile or other means of electronic communication and all
such counterparts, taken together, shall constitute one and the same agreement. A signed copy of this Amendment delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Amendment. It is expressly understood and agreed that (i) this Amendment shall be a Transaction Document and (ii)
the Transaction Documents are hereby amended to give full force and effect to the transactions contemplated by this Amendment.
Except as otherwise expressly provided herein, (1) the Series C Warrants and each other Transaction Document is, and shall continue
to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Execution Date
(A) all references in the Series C Warrants to “this Warrant,” “hereto,” “hereof,” “hereunder”
or words of like import referring to the Series C Warrants shall mean the Series C Warrants as amended by this Amendment, (B) all
references in the other Transaction Documents to the “Warrants,” “thereto,” “thereof,” “thereunder”
or words of like import referring to the Series C Warrants shall mean the Series C Warrants as amended by this Amendment and (C)
all references in Transaction Documents to the “Transaction Documents,” “thereto,” “thereof,”
“thereunder” or words of like import referring to the Transaction Documents shall mean the Transaction Documents as
amended by this Amendment and (2) the execution, delivery and effectiveness of this Amendment shall not operate as an amendment
or waiver of any right, power, benefit or remedy of any Holder under any Transaction Document, nor constitute an amendment of any
provision of any Transaction Document and all of them shall continue in full force and effect, as amended or modified by this Amendment.
The Company shall, on or before 8:30 a.m., New York time, on the first (1st) Business
Day after the date of this Agreement, file a Current Report on Form 8-K describing all the material terms of the
transactions contemplated by this Amendment in the form required by the 1934 Act and attaching this Amendment.

 

[signature page
follows]

 

    	-2-

    	 

    

  

IN WITNESS WHEREOF, Cranshire
and the Company have caused their respective signature page to this Amendment to be duly executed as of the date first written
above.

 

	 	ARCH THERAPEUTICS, INC.
	 	 
	 	By:	/s/
    Terrence W. Norchi
	 	Name: Terrence W. Norchi, M.D.
	 	Title:  President, Chief Executive Officer
	 	 
	 	SIGNIFICANT BUYER:
	 	 
	 	CRANSHIRE CAPITAL MASTER FUND, LTD.
	 	 
	 	By:	Cranshire Capital Advisors, LLC
	 	Its:	Investment Manager
	 	 
	 	/s/ Keith Goodman
	 	By: Keith Goodman
	 	Its:  Authorized SignatoryExhibit 4.1

 

ID GLOBAL SOLUTIONS CORPORATION

STOCK OPTION AGREEMENT

 

 

This
Stock Option Agreement ("Agreement") is made and entered into as of the date set forth below, by and
between ID GLOBAL SOLUTIONS CORPORATION, a Delaware corporation (the "Company"), and the following director to
the Company (herein, the "Optionee"):

 

In consideration of the covenants herein
set forth, the parties hereto agree as follows:

 

1. Option Information.

(a)    Date
of Option:           May 28, 2015

(b)    Optionee:                     Ricky
Solomon

(c)     Number
of Shares:       3,500,000

(d)     Exercise
Price:             $0.0001 per share

 

2. Acknowledgements.

			(a)  Optionee is a Director of the Company, not an employee;

			(b)  The Board of Directors (the “Board”) has authorized the granting to Optionee
of a stock option ("Option") to purchase shares of common stock of the Company ("Stock") upon
the terms and conditions hereinafter stated and pursuant to an exemption from registration under the Securities Act of 1933, as
amended (the "Securities Act") provided by Rule 701 thereunder.

 

3. Shares; Price.
The Company hereby grants to Optionee the right to purchase, upon and subject to the terms and conditions herein stated, the number
of shares of Stock set forth in Section 1(c) above (the "Shares") for cash at the price per Share set forth in
Section 1(d) above (the "Exercise Price").

 

4. Term of Option.
This Option shall expire, and all rights hereunder to purchase the Shares, shall terminate five (5) years from the date hereof.
Nothing contained herein shall be construed to interfere in any way with the right of the Company to terminate Optionee as a director
to the Company, or to increase or decrease the compensation paid to Optionee from the rate in effect as of the date hereof.

 

5. Vesting of Option.
Subject to the provisions of Sections 7 and 8 hereof, this Option shall vest immediately upon signing this Option.

 

 

    	 

    	 

    

 

6. Exercise.
This Option shall be exercised by delivery to the Company of (a) written notice of exercise stating the number of Shares
being purchased (in whole shares only) and such other information set forth on the form of Notice of Exercise attached hereto
as Appendix A, (b) a check or cash in the amount of the Exercise Price of the Shares covered by the notice (or such
other consideration as has been approved by the Board of Directors consistent with the Plan) and (c) a written investment
representation as provided for in Section 13 hereof. Notwithstanding anything to the contrary contained in this Option, this
Option may be exercised by presentation and surrender of this Option to the Company at its principal executive offices with a
written notice of the holder’s intention to effect a cashless exercise, including a calculation of the number of shares
of Common Stock to be issued upon such exercise in accordance with the terms hereof (a “Cashless Exercise”). In
the event of a Cashless Exercise, in lieu of paying the Exercise Price in cash, the holder shall surrender this Option for
that number of shares of Common Stock determined by multiplying the number of Shares to which it would otherwise be entitled
by a fraction, the numerator of which shall be the difference between the then current Market Price per share of the Common
Stock and the Exercise Price, and the denominator of which shall be the then current Market Price per share of Common Stock.
For example, if the holder is exercising 100,000 Options with a per Warrant exercise price of $0.75 per share through a
cashless exercise when the Common Stock’s current Market Price per share is $2.00 per share, then upon such Cashless
Exercise the holder will receive 62,500 shares of Common Stock. Market Price is defined as the average of the last reported
sale prices on the principal trading market for the Common Stock during the thirty (30) trading days immediately preceding
such date. This Option shall not be assignable or transferable, except by will or by the laws of descent and distribution,
and shall be exercisable only by Optionee during his or her lifetime.

 

7. Termination of
Service. If Optionee's service as a Director to the Company terminates for any reason, no further installments shall vest pursuant
to Section 5.

 

8. Death of Optionee.
If the Optionee shall die while serving as a director to the Company, Optionee's personal representative or the person entitled
to Optionee's rights hereunder may at any time within ninety (90) days after the date of Optionee's death, or during the remaining
term of this Option, whichever is the lesser, exercise this Option and purchase Shares to the extent, but only to the extent, that
Optionee could have exercised this Option as of the date of Optionee's death; provided, in any case, that this Option may be so
exercised only to the extent that this Option has not previously been exercised by Optionee.

 

9. No Rights as
Shareholder. Optionee shall have no rights as a shareholder with respect to the Shares covered by any installment of this Option
until the effective date of the issuance of shares following exercise of this to Option, and no adjustment will be made for dividends
or other rights for which the record date is prior to the date such stock certificate or certificates are issued except as provided
in Section 10 hereof.

 

10. Recapitalization.
Subject to any required action by the shareholders of the Company, the number of Shares covered by this Option, and the Exercise
Price thereof, shall be proportionately adjusted for any increase or decrease in the number of issued shares resulting from a subdivision
or consolidation of shares or the payment of a stock dividend.

 

11. Taxation upon
Exercise of Option. Optionee understands that, upon exercise of this Option, Optionee will recognize income, for Federal and
state income tax purposes, in an amount equal to the amount by which the fair market value of the Shares, determined as

of the date of exercise, exceeds the Exercise
Price. The acceptance of the Shares by Optionee shall constitute an agreement by Optionee to report such income in accordance with
then applicable law and to cooperate with Company in establishing the amount of such income and corresponding deduction to the
Company for its income tax purposes. Withholding for federal or state income and employment tax purposes will be made, if and as
required by law, from Optionee's then current compensation, or, if such current compensation is insufficient to satisfy withholding
tax liability, the Company may require Optionee to make a cash payment to cover such liability as a condition of the exercise of
this Option.

 

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12. Modification,
Extension and Renewal of Options. The Board may modify, extend or renew this Option or accept the surrender thereof (to the
extent not theretofore exercised) and authorize the granting of a new option in substitution therefore (to the extent not theretofore
exercised). Notwithstanding the foregoing provisions of this Section 12, no modification shall, without the consent of the Optionee,
alter to the Optionee's detriment or impair any rights of Optionee hereunder.

 

13. Investment Intent;
Restrictions on Transfer.

 

			                (a) Optionee represents and agrees that if Optionee exercises this Option in whole or in part,
Optionee will in each case acquire the Shares upon such exercise for the purpose of investment and not with a view to, or for resale
in connection with, any distribution thereof; and that upon such exercise of this Option in whole or in part, Optionee (or any
person or persons entitled to exercise this Option under the provisions of Sections 7 and 8 hereof) shall furnish to the Company
a written statement to such effect, satisfactory to the Company in form and substance. If the Shares represented by this Option
are registered under the Securities Act, either before or after the exercise of this Option in whole or in part, the Optionee shall
be relieved of the foregoing investment representation and agreement and shall not be required to furnish the Company with the
foregoing written statement.

			                (b) Optionee further represents that Optionee has had access to the financial statements or books
and records of the Company, has had the opportunity to ask questions of the Company concerning its business, operations and financial
condition, and to obtain additional information reasonably necessary to verify the accuracy of such information.

               (c) Unless and until the Shares represented by this Option are registered under the Securities Act, all certificates representing
the Shares and any certificates subsequently issued in substitution therefor and any certificate for any securities issued pursuant
to any stock split, share reclassification, stock dividend or other similar capital event shall bear legends in substantially the
following form:

 

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			THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE
SECURITIES ACT OF 1933 (THE 'SECURITIES ACT') OR UNDER THE APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER
THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION
UNDER THE SECURITIES ACT OR ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO EXEMPTIONS THEREFROM.

 

			THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO THAT
CERTAIN STOCK OPTION AGREEMENT DATED MAY 28, 2015 BETWEEN THE COMPANY AND THE ISSUEE WHICH RESTRICTS THE TRANSFER OF THESE SHARES
WHICH ARE SUBJECT TO REPURCHASE BY THE COMPANY UNDER CERTAIN CONDITIONS.

 

 

and/or such other legend or legends as
the Company and its counsel deem necessary or appropriate. Appropriate stop transfer instructions with respect to the Shares have
been placed with the Company's transfer agent.

 

14. Stand-off Agreement.
Optionee agrees that, in connection with any registration of the Company's securities under the Securities Act, and upon the request
of the Company or any underwriter managing an underwritten offering of the Company's securities, Optionee shall not sell, short
any sale of, loan, grant an option for, or otherwise dispose of any of the Shares (other than Shares included in the offering)
without the prior written consent of the Company or such managing underwriter, as applicable, for a period of up to one year following
the effective date of registration of such offering.

 

15. Notices.
Any notice required to be given pursuant to this Option or the Plan shall be in writing and shall be deemed to be delivered upon
receipt or, in the case of notices by the Company, five (5) days after deposit in the U.S. mail, postage prepaid, addressed to
Optionee at the address last provided by Optionee for use in Company records related to Optionee.

 

16. This Option has
been granted, executed and delivered in the State of Ohio, and the interpretation and enforcement shall be governed by the laws
thereof and subject to the exclusive jurisdiction of the courts therein.

 

[SIGNATURE PAGE FOLLOWS]

 

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In
Witness Whereof, the parties hereto have executed this Option as of the date first above written.

 

 

	
        COMPANY:
        

         
	
        ID GLOBAL SOLUTIONS CORPORATION,

        a Delaware corporation

         

         

        By: /s/ Thomas R. Szoke

        Name: Thomas R. Szoke

        Title:CEO

	 	 
	OPTIONEE:	
         

        By:  /s/Ricky Solomon

                 (signature)

        Name:Ricky Solomon

	 	 

 

 

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Appendix A

 

NOTICE OF EXERCISE

 

ID GLOBAL SOLUTIONS CORPORATION

_________________

_________________

_________________

 

 Re: Stock Option

 

1)      Notice is hereby given pursuant
to Section 6 of my Stock Option Agreement that I elect to purchase the number of shares set forth below at the exercise price set
forth in my option agreement:

 

Stock Option Agreement
dated: ______________

 

Number of shares being
purchased: ____________

 

Exercise Price: $____________

 

A check in the amount
of the aggregate price of the shares being purchased is attached.

 

OR

 

2)      I elect a cashless exercise pursuant
to Section 6 of my Stock Option Agreement. The Average Market Price as of _______ was $_______.

 

 I hereby confirm that
such shares are being acquired by me for my own account for investment purposes, and not with a view to, or for resale in connection
with, any distribution thereof. I will not sell or dispose of my Shares in violation of the Securities Act of 1933, as amended,
or any applicable federal or state securities laws. Further, I understand that the exemption from taxable income at the time of
exercise is dependent upon my holding such stock for a period of at least one year from the date of exercise and two years from
the date of grant of the Option.

 

 I understand that the
certificate representing the Option Shares will bear a restrictive legend within the contemplation of the Securities Act and as
required by such other state or federal law or regulation applicable to the issuance or delivery of the Option Shares.

 

 

	 	By:	 	 
	 	 	(signature)
	 	Name:	 

 

 

6

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