SEC Contract Filing

Filing Date: 2020-06-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tm2021861d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.3</B></P>

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<P STYLE="text-align: justify; margin: 0"><FONT STYLE="text-transform: uppercase"><B>THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE
ACQUIRED PURSUANT TO THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE &#8220;ACT&#8221;) OR ANY STATE SECURITIES OR &#8220;BLUE SKY LAWS,&#8221; AND MAY NOT BE OFFERED FOR SALE, SOLD,
ASSIGNED, TRANSFERRED, HYPOTHECATED, OR OTHERWISE DISPOSED OF (COLLECTIVELY, A &#8220;TRANSFER&#8221;) UNLESS (I) SUCH SECURITIES
HAVE BEEN REGISTERED FOR SALE PURSUANT TO SAID ACT AND SUCH LAWS; OR (II) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SAID ACT AND SUCH LAWS AND THE RECIPIENT
OF SUCH TRANSFER EXECUTES AN AGREEMENT WITH THE COMPANY (IN A FORM REASONABLY SATISFACTORY TO THE COMPANY) OBLIGATING IT TO ABIDE
BY COMPARABLE RESTRICTIONS ON TRANSFER.</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: uppercase"><B>ARCH
THERAPEUTICS, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: uppercase"><B>Series
1 UNSECURED convertible PROMISSORY NOTE</B></FONT></P>

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 <TD STYLE="font-size: 10pt; width: 50%"><FONT STYLE="font-size: 10pt">$[&#9679;]</FONT></TD>
 <TD STYLE="font-size: 10pt; text-align: right; width: 50%"><FONT STYLE="font-size: 10pt">As of ________, 2020 (the &#8220;Issuance
 Date&#8221;)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>FOR VALUE RECEIVED</B>,
Arch Therapeutics, Inc., a Nevada corporation (&#8220;<B><I>Borrower</I></B>&#8221; or the &#8220;<B><I>Company</I></B>&#8221;)
promises to pay to [&#9679;] (&#8220;<B><I>Lender</I></B>&#8221;), or [his/her/its] registered assigns, in lawful money of the
United States of America (i) the principal sum of [Principal Amount] dollars ($[Principal Amount].00), or such lesser amount as
shall equal the outstanding principal amount (the &#8220;<B><I>Principal Amount</I></B>&#8221;) of this Series 1 Unsecured Convertible
Promissory Note, which is one of a duly authorized series of notes of the Company of like tenor and effect (except the variations
necessary to express the name of payee, the date, and the principal amount of each Note), each issued on or prior to July 3, 2020
(each a &#8220;<B><I>Note</I></B>&#8221; and collectively the &#8220;<B><I>Notes</I></B>&#8221;); and (ii) interest accrued on
the unpaid Principal Amount in accordance with <U>Section 2</U>. All Note Obligations (as defined below) shall be due and payable
on the earlier of (i) <B>ON DEMAND</B> at any time after the Maturity Date (as defined below) of this Note unless Borrower notifies
Lender that such Note Obligations will be converted into Common Stock in accordance with the terms of <U>Section 6(c)iii)</U>;
or (ii) when, upon or after the occurrence of an Event of Default (as defined below), such amounts are declared due and payable
by Lender or made automatically due and payable in accordance with the terms hereof. Borrower and Lender may be individually referred
to herein as a &#8220;<B><I>Party</I></B>&#8221; or collectively as the &#8220;<B><I>Parties</I></B>&#8221;. On the date hereof,
in exchange for the issuance of this Note, the Lender shall pay to the Company the Principal Amount in cash via wire transfer
in accordance with the wire instructions attached hereto as <U>Exhibit A.</U></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify"><U>Definitions</U>.</TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify"><B>Preamble and Recitals</B>: The terms defined above are incorporated herein.</TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(b)</TD><TD STYLE="text-align: justify"><B>Other Defined Terms</B>: For purposes of this Note, the following t