SEC Contract Filing

Filing Date: 2022-07-08

Document Content:
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>ex_393558.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: right;"><b>Exhibit 10.5</b></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><i>Certain identified information has been excluded from this exhibit because it is both (i)</i></b>&nbsp;<b><i>not material and (ii)</i></b>&nbsp;<b><i>would likely cause competitive harm to the registrant if publicly disclosed. [***] indicates that information has been redacted.</i></b></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><u>SECURITY AGREEMENT</u></b></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">THIS SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this &#8220;Agreement&#8221;) dated as of July 6, 2022 between Arch Therapeutics, Inc., a Nevada corporation (the &#8220;Company&#8221;), Arch Biosurgery, Inc., a Massachusetts corporation (together with each other Person who becomes a party to this Agreement by execution of a joinder in the form of <u>Exhibit A</u> attached hereto, which shall include all wholly-owned or majority-owned subsidiaries of the Company acquired after the date hereof for so long as this Agreement remains in effect, are hereinafter sometimes referred to individually as a &#8220;Debtor&#8221; and, collectively, as the &#8220;Debtors&#8221;) and [***], in its capacity as Collateral Agent for the benefit of itself and each of the Purchasers (as hereinafter defined) (each, together with its respective successors and assigns, a &#8220;Secured Party,&#8221; and collectively the &#8220;Secured Parties&#8221;).</p>

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<p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 9pt; text-align: center;"><b>W I T N E S S E T H:</b></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">WHEREAS, the Purchasers as from time to time parties to the Purchase Agreement (as hereafter defined) (each a &#8220;Purchaser&#8221;, and together with their successors and assigns and each other purchaser of a Note (as defined below) and their respective successors and assigns, individually and collectively, the &#8220;Purchasers&#8221;), pursuant to which such Purchasers will purchase from the Company certain senior secured convertible notes each made by the Company and dated as of the date hereof in an original aggregate principal amount of at least $3,600,000 (all such notes, together with any promissory notes or other securities issued in exchange or substitution therefor or replacement thereof, and as any of the same may be amended, supplemented, restated or modified and in effect from time to time, the &#8220;Notes&#8221;);</p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">AND WHEREAS, the Notes are being acquired by Purchasers, and Purchasers have made certain financial accommodations to the Company pursuant to that certain Securities Purchase Agreement, dated as of the date hereof among the Company, and the Purchasers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the &#8220;Purchase Agreement&#8221;). Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Purchase Agreement;</p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">AND WHEREAS, each Debtor will derive substantial benefit and advantage from the financial accommodations to the Company set forth in the Purchase Agreement and the Notes, and it will be to each such Debtor&#8217;s direct interest and economic benefit to assist the Company in procuring said financial accommodations from Purchasers;</p>

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