SEC Contract Filing

Filing Date: 2019-10-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>6
<FILENAME>tm19205081_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.3</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B><U>Execution Version</U></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 10, 2019</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>STRICTLY CONFIDENTIAL</U></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Arch Therapeutics, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">235 Walnut Street, Suite 6</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Framingham, Massachusetts 01702</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attn: Terrence W. Norchi, M.D., Chief Executive Officer</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Dr. Norchi:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This letter agreement
(this &ldquo;<U>Agreement</U>&rdquo;) constitutes the agreement between Arch Therapeutics, Inc. (the &ldquo;<U>Company</U>&rdquo;)
and H.C. Wainwright &amp; Co., LLC (&ldquo;<U>Wainwright</U>&rdquo;), that Wainwright shall serve as the exclusive agent, advisor
or underwriter in any offering (each, an &ldquo;<U>Offering</U>&rdquo;) of securities of the Company (the &ldquo;<U>Securities</U>&rdquo;)
during the Term (as hereinafter defined) of this Agreement. The terms of each Offering and the Securities issued in connection
therewith shall be mutually agreed upon by the Company and Wainwright and nothing herein implies that Wainwright would have the
power or authority to bind the Company and nothing herein implies that the Company shall have an obligation to issue any Securities.
It is understood that Wainwright&rsquo;s assistance in an Offering will be subject to the satisfactory completion of such investigation
and inquiry into the affairs of the Company as Wainwright deems appropriate under the circumstances and to the receipt of all internal
approvals of Wainwright in connection with the transaction. The Company expressly acknowledges and agrees that Wainwright&rsquo;s
involvement in an Offering is strictly on a reasonable best efforts basis and that the consummation of an Offering will be subject
to, among other things, market conditions. The execution of this Agreement does not constitute a commitment by Wainwright to purchase
the Securities and does not ensure a successful Offering of the Securities or the success of Wainwright with respect to securing
any other financing on behalf of the Company. Wainwright may retain other brokers, dealers, agents or underwriters on its behalf
in connection with an Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation;
Reimbursement</U>. At the closing of each Offering (each, a &ldquo;<U>Closing</U>&rdquo;), the Company shall compensate Wainwright
as follows:</P>

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<TD STYLE="width: 40.5pt"></TD><TD STYLE="width: 18pt">1.</TD><TD STYLE="text-align: justify"><I>Cash Fee</I>. The Company shall pay to Wainwright a cash fee, or as to an underwritten Offering
an underwriter discount, equal to 7.5% of the aggregate gross proceeds raised in each Offering; provided, however, that the cash
fee will be reduced to 6.0% with respect to any aggregate gross proceeds raised from the investors who are listed on <U>Exhibit
A</U> hereto.</TD></TR></TABLE>

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<TD STYLE="width: 40.5pt"></TD><TD STYLE="width: 18pt">2.</TD><TD STYLE="text-align: justify"><I>Warrant Coverage</I>. The Company shall issue to Wainwright or its designees at each Closing,
warrants (the &ldquo;<U>Wainwright Warrants</U>&rdquo;) to purchase that number of shares of common stock of the Company equal
to 7.5% of the aggregate number of shares of common stock (or common stock equivalent, if applicable, but shall not inclu