Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of August 7, 2019, is entered into by and between PHIO
PHARMACEUTICALS CORP., a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an
Illinois limited liability company (together with its permitted assigns, the “Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in that certain Purchase Agreement
by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from
time to time, the “Purchase Agreement”).

 

WHEREAS, the
Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Ten Million
Dollars ($10,000,000) of Purchase Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or
any similar successor statute (collectively, the “Securities Act”), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1.       DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

a.       “Investor”
means the Buyer, any transferee or assignee thereof to whom the Buyer assigns its rights under this Agreement in accordance with
Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or assignee thereof to
whom a transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become
bound by the provisions of this Agreement.

 

b.       “Person”
means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c.       “Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration
or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the “SEC”).

 

d.       “Registrable
Securities” means all of the Purchase Shares which have been, or which may, from time to time be issued, including without
limitation all of the Commitment Shares which have been or which may, from time to time, be issued or become issuable to the Investor
under the Purchase Agreement (without regard to any limitation or restriction on purchases), and any and all shares of capital
stock issued or issuable with respect to the Purchase Shares or the Commitment Shares or the Purchase Agreement as a result of
any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitation on
purchases under the Purchase Agreement.

 

e.       “Registration
Statement” means one or more registration statements of the Company covering only the sale of the Registrable Securities.

 

 

 

 

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2.       REGISTRATION.

 

a.       Mandatory
Registration. The Company shall by use its reasonable best efforts to file with the SEC, by August 30, 2019, an initial Registration
Statement covering 8,125,946 shares of Registrable Securities, consisting of 7,625,946 Purchase Shares and 500,000 Commitment Shares,
or such amount as otherwise shall be permitted to be included thereon in accordance with applicable SEC rules, regulations and
interpretations so as to permit the resale of such Registrable Securities by the Investor under Rule 415 under the Securities Act
at then prevailing market prices (and not fixed prices), as mutually determined by both the Company and the Investor in consultation
with their respective legal counsel, subject to the aggregate number of authorized shares of the Company’s Common Stock then
available for issuance in its Certificate of Incorporation. The initial Registration Statement shall register only the Registrable
Securities. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement
and any amendment or supplement to such Registration Statement and any related prospectus prior to its filing with the SEC, and
the Company shall give due consideration to all reasonable comments. The Investor shall furnish all information reasonably requested
by the Company for inclusion therein. The Company shall use its reasonable best efforts to have the Registration Statement and
any amendment declared effective by the SEC at the earliest possible date. The Company shall use reasonable best efforts to keep
the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act and available for the resale by
the Investor of all of the Registrable Securities covered thereby at all times until the date on which the Investor shall have
sold all the Registrable Securities covered thereby and no Available Amount remains under the Purchase Agreement (the “Registration
Period”). The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein)
shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary
to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

b.       Rule
424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant
to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with
sales of the Registrable Securities under the Registration Statement. The Investor and its counsel shall have a reasonable opportunity
to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give due consideration to all
such comments. The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from
the date the Investor receives the final pre-filing version of such prospectus.

 

c.       Sufficient
Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient to
cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement
(a “New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations
set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity
therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The Company
shall use its reasonable best efforts to cause such amendment and/or New Registration Statement to become effective as soon as
practicable following the filing thereof.

 

d.       Offering. If
the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration
Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement
to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and not fixed prices),
or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise
required by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement,
then the Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with
the prior consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable
Securities to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become
effective and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company
shall file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities
have been included in Registration Statements that have been declared effective and the prospectus contained therein is available
for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s
obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified
as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

 

 

 

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3.       RELATED
OBLIGATIONS.

 

With respect to the
Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any
New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.       The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any registration
statement and the prospectus used in connection with such registration statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement
effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act
with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration
Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods
of disposition by the seller or sellers thereof as set forth in such registration statement.

 

b.       The
Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all
amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any document
in a form to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration
Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date
the Investor receives the final version thereof. The Company shall furnish to the Investor without charge any correspondence from
the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration
Statement.

 

c.       Upon
request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the
SEC, at least one copy of such registration statement and any amendment(s) thereto, including financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a
copy of the prospectus included in such registration statement and all amendments and supplements thereto (or such other number
of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final
prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “furnished to the Investor” hereunder.

 

d.       The
Company shall use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a registration statement
under such other securities or “blue sky” laws of such jurisdictions in the United States as the Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to
such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the
Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities
for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual
notice of the initiation or threatening of any proceeding for such purpose.

 

 

 

 

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e.       As
promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening
of any event or existence of such facts as a result of which the prospectus included in any registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare
a supplement or amendment to such registration statement to correct such untrue statement or omission, and deliver a copy of such
supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall
also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has
been filed, and when a registration statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to any registration statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a registration statement would be
appropriate.

 

f.       The
Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and,
if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.       The
Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market.
The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.       The
Company shall cooperate with the Investor to facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to any registration statement and enable such certificates
to be in such denominations or amounts as the Investor may reasonably request and registered in such names as the Investor may
request.

 

i.       The
Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.       If
reasonably requested by the Investor, the Company shall (i) immediately incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any registration statement.

 

k.       The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

 

 

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l.       Within
one (1) Business Day after any registration statement which includes the Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor) confirmation that such registration statement has been declared effective by the SEC in
the form attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require its
counsel to deliver to the Buyer a written confirmation, which may be via email, whether or not the effectiveness of such registration
statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not
the registration statement is current and available to the Buyer for sale of all of the Registrable Securities.

 

m.       The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any registration statement.

 

4.       OBLIGATIONS
OF THE INVESTOR.

 

a.       The
Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any registration statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

 

b.       The
Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of any registration statement hereunder.

 

c.       The
Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of
Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities until the Investor's receipt
of the copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e).
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to promptly deliver shares of Common Stock
without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from
the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e)
and for which the Investor has not yet settled.

 

5.       EXPENSES
OF REGISTRATION.

 

All reasonable expenses,
other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees,
and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

 

 

 

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6.       INDEMNIFICATION.

 

a.       To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls the Investor, the members, the directors, officers, partners, employees, agents, representatives of
the Investor and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) (each, an “Indemnified Person”), against any
losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in settlement
or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement or
any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement
or (iv) any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively,
“Violations”). The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and
are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating
or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained
in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information about the Investor furnished in writing to the Company by such Indemnified
Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement or any
such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall not inure to the benefit of any such person
from whom the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit
of any person controlling such person) if the untrue statement or omission of material fact contained in the superseded prospectus
was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available
by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing
not to use the incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such
advice, used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause
to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant
to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall
survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

 

 

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b.       In
connection with the Registration Statement or any New Registration Statement, the Investor agrees to indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act (collectively and together with an Indemnified Person, an “Indemnified
Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act,
the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information
about the Investor set forth on Exhibit B attached hereto and furnished to the Company by the Investor expressly for use
in connection with such registration statement; and, subject to Section 6(d), the Investor will reimburse any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of the Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable
under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the
Investor as a result of the sale of Registrable Securities pursuant to such registration statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer
of the Registrable Securities by the Investor pursuant to Section 9.

 

c.       Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party
and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate
fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party
shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to such claim or litigation. Following indemnification as
provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve
such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to
the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

d.       The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

e.       The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to applicable law.

 

 

 

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7.       CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities.

 

8.       REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making
available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees, at the Company’s sole expense, to:

 

a.       make
and keep public information available, as those terms are understood and defined in Rule 144;

 

b.       file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required
for the applicable provisions of Rule 144;

 

c.       furnish
to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting and/or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii)
a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule
144 without registration; and

 

d.       take
such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule
144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor
and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that
damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall,
whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of preliminary or permanent injunctions,
without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

		9.	ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor may
not assign its rights under this Agreement without the written consent of the Company, other than to an affiliate of the Investor
controlled by Jonathan Cope or Josh Scheinfeld.

 

 

 

 

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10.       AMENDMENT
OF REGISTRATION RIGHTS.

 

No provision of this
Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial
filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement
may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument
signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

11.       MISCELLANEOUS.

 

a.       A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.       Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses for such communications shall be:

 

If to the Company:

 

Phio Pharmaceuticals Corp.

257 Simarano Drive, Suite 101

Marlborough, MA 01752

Telephone:      508-767-3861

E-mail:             gdispersyn@phiopharma.com

Attention:        Gerrit Dispersyn, Dr. Med. Sc

 

If to the Investor:

 

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, Illinois 60654

Telephone:      (312) 822.9300

Facsimile:        (312) 822.9301

E-mail:             jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

Attention:        Josh Scheinfeld/Jonathan
Cope

 

 

 

 

    	 	9	 

     

    

 

With a copy to (which shall not
constitute notice or service of process):

 

K&L Gates LLP

200 S. Biscayne Blvd., Ste. 3900

Miami, Florida 33131

Telephone:      (305) 539.3306

Facsimile:        (305) 358.7095

E-mail:             clayton.parker@klgates.com

Attention:        Clayton E. Parker,
Esq.

 

or at such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile
machine or email account containing the time, date, recipient facsimile number or email address, as applicable, and an image of
the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of personal service, receipt by facsimile, email or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

 

c.       The
corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
the State of Illinois, County of Cook, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

d.       This
Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

 

e.       Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto.

 

f.       The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.       This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

h.       Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

i.        The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

j.        This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person. 

 

 

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

 

 

THE COMPANY:

 

PHIO PHARMACEUTICALS CORP.

 

 

 

By:      /s/
Gerrit Dispersyn                                     

Name: Gerrit Dispersyn,
Dr. Med. Sc.

Title: President & CEO

 

 

 

BUYER:

 

LINCOLN PARK CAPITAL FUND,
LLC

BY: LINCOLN
PARK CAPITAL, LLC

BY: Rockledge
Capital Corp

 

 

 

By    /s/   Josh Scheinfeld                                     

Name: Josh Scheinfeld

Title: President

 

 

 

 

    	 	11Exhibit 10.1

 

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (“Agreement”) between Ryan M. Zink (the “Executive”) and Good Times Restaurants Inc.
(“Good Times”) is made and entered into this 5 day of August, 2019 (the “Effective Date”).

 

BACKGROUND

 

WHEREAS, the Executive
entered into an Employment Agreement with Good Times on July 18, 2017.

 

WHEREAS, the Executive
and Good Times desire to bring the Executive’s salary, in Article 4, to a salary that is current at this Effective Date.

 

WHEREAS, on July 26,
2019 the Board of Directors approved increasing the Executive’s severance to twelve months as set forth in Article 7(g) Severance
Compensation, Change in Control Severance and Stock Sale Option.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

AGREEMENT

 

1.            EMPLOYMENT. By executing this Agreement, Good Times employs the Executive
and the Executive accepts such employment and agrees to perform the services specified herein, upon the terms and conditions of
this Agreement.

 

2.            TERM. The term of the Executive’s employment shall be one year
from the Effective Date of this Agreement (the “Term”). Unless earlier terminated as provided in Section 7 of
this Agreement, or unless the Executive or Good Times gives ninety days prior written notice to the other to the contrary, upon
the end of the Term and upon each yearly anniversary of such end of the Term, this Agreement shall automatically extend for additional
periods of one year (the “Additional Terms”). In the event that the Company or the Executive elects not to extend this
Agreement, such election together with the reasons therefor shall constitute a termination by the electing party subject to the
provisions of Section 7 of this Agreement.

 

    	 	 	 

    	 	 

    

 

3.            CAPACITY AND DUTIES. Good Times shall employ the Executive as Chief
Financial Officer. During the Term of this Agreement, the Executive shall devote his best efforts to the business and affairs of
Good Times and shall devote substantially all of his business time to perform his duties hereunder. Notwithstanding the foregoing,
with the prior approval of the Board, the Executive may devote a reasonable portion of his time to serve on boards of directors,
boards of managers or boards of trustees, or committees thereof, of companies or organizations involving no conflict of interest
with the interests of Good Times. The Executive shall further be entitled to have investments in other business enterprises, provided
however he shall not have any investment or financial interest in any business enterprise which conducts business activities directly
competitive with any business activities conducted by Good Times now or at any time during the Term or Additional Terms of this
Agreement (other than an investment of no more than one percent of any class of equity securities of a company which conducts business
activities directly competitive with any business activities of Good Times provided that those securities are publicly traded).

 

4.            COMPENSATION.

 

(a)         
Base Compensation. During the Term of this Agreement and each Additional Terms, the Executive shall be paid a minimum
annual base salary of $210,000 (the “Base Compensation”). The Base Compensation shall be paid, at the election of Good
Times, in equal biweekly, bimonthly or monthly payments or at such other times and in such other installments as are paid to other
executives of Good Times. The Base Compensation may be increased, but not decreased, by the Board, in its sole discretion, if the
Board determines that such increase is appropriate based upon a performance review of the Executive, which review shall be conducted
no less often than annually during the Term and the Additional Terms.

 

(b)         
Performance Cash Bonuses and Equity Awards. Good Times agrees to consider annual cash bonuses paid and equity awards
granted to the Executive for each fiscal year through the Term and the Additional Terms, with such bonuses and awards to be based
upon the performance of the Executive and of Good Times. At the beginning of each year of the Term and each year of the Additional
Terms the Executive and the Board shall agree on a bonus percentage of his Base Compensation which the Executive may receive for
such year related to the Executive and Good Times meeting their performance goals and objectives for such year payable in the form
of cash or equity awards (the “Target Bonus”). Upon the completion of each such year the determination of the portion
and the form of the Target Bonus to which the Executive is entitled shall be made by the Board in its reasonable discretion, including
the right of the Board to determine to pay the Executive a bonus in excess of the Target Bonus.

 

5.            EXPENSES. The Executive shall be reimbursed, consistent with policies
applicable to other officers of Good Times, for all reasonable expenses incurred by the Executive in performing services under
this Agreement. The Executive shall submit appropriate receipts, invoices and other evidence of expenditures as required by Good
Times policy.

 

    	 	2 	 

    	 	 

    

 

6.            ADDITIONAL BENEFITS.

 

(a)         
Benefits. During the Term and each Additional Terms of this Agreement, Good Times shall provide the Executive with
an annual discretionary allowance of $15,000 together with other benefits generally provided to its other executive officers under
its welfare benefit plans, practices, policies and programs (including, without limitation, medical, prescription, dental, disability,
life and other insurance plans, pension plans, and savings or profit-sharing plans).

 

(b)         
Vacation. The Executive shall be entitled to four weeks paid annual vacation taken at such times as are reasonably
convenient to the Executive, provided that such vacation times do not substantially interfere with the performance of his duties
hereunder.

 

7.            EARLY TERMINATION.

 

(a)         
Termination for Cause. Termination “for cause” shall mean termination determined by the Board of Directors
of the Executive’s employment with Good Times because of (i) any intentional, wanton, or reckless act or omission that
constitutes a material breach by the Executive of his obligations under this Agreement; (ii) any willful and material failure
by the Executive to perform his duties and to serve Good Times in the capacities prescribed by the Board, provided that with respect
to the first occurrence (unless additional such occurrences are approved by the Board) only of any such willful and material failure,
such willful and material failure remains substantially uncured more than thirty days after the date on which Good Times provides
written notice to the Executive of such willful and material failure; (iii) a criminal conviction, guilty plea or no contest
plea of the Executive to any felony, any drug related offense, or a crime involving an act of moral turpitude; or (iv) the
Executive’s perpetration of an act of fraud or embezzlement against Good Times. For purposes of this provision, no act or
failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done,
by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests
of Good Times.

 

(b)         
Termination Without Cause or Without Good Reason. Either party may terminate this Agreement without cause by providing
the other party ninety days’ prior written notice as to which termination the other provisions of this Agreement shall govern.

 

(c)         
Termination Upon Death or Disability. This Agreement shall terminate upon (i) the death of the Executive or,
(ii) at Good Times’ written election, if the Executive becomes unable, by reason of physical or mental disability, with
reasonable accommodation, to perform the essential functions of his position for the Minimum Disability Period. The term “Minimum
Disability Period” means any period exceeding (i) ninety consecutive calendar days, or (ii) an aggregate of one
hundred and twenty business days during any twelve month period. If this Agreement terminates under this provision the Executive
(or his estate) shall be entitled to the Severance Compensation and Stock Sale Option in the amount and at such time as set forth
under Section 7(g). In addition, all options and rights granted to the Executive under any Good Times Stock Option Plan shall be
accelerated and shall become immediately exercisable on or after the event giving rise to termination under this provision so as
to permit the Executive (or his estate) to fully exercise all outstanding options and rights in accordance with their terms.

 

    	 	3 	 

    	 	 

    

 

(d)         
Breach by Good Times. The Executive shall have the right to terminate his employment pursuant to this Agreement upon
Good Times’ material breach or violation of any of the terms and conditions of this Agreement by delivering written notice
to Good Times stating with particularity the applicable term or condition breached or violated, the specific facts relied upon
and a termination date not less than thirty days after the date of delivery of such writing, provided that Good Times shall have
thirty days to cure such breach. If the Executive terminates his employment under this provision, it shall be deemed a termination
without cause by Good Times and the Executive shall be entitled to the Severance Compensation and Stock Sale Option in the amount
and at such time as set forth under Section 7(g). In addition, all options and rights granted to the Executive under any Good Times
Stock Option Plan shall be accelerated and shall become immediately exercisable on or after the Executive’s termination under
this provision so as to permit the Executive to fully exercise all outstanding options and rights in accordance with their terms.

 

(e)         
Termination for Good Reason.

 

(i)          
The Executive shall have the right to terminate his employment pursuant to this Agreement for Good Reason by delivering
written notice to Good Times stating with particularity the Good Reason including the specific facts relied upon and a termination
date not less than thirty days after the date of delivery of such writing. Good Times shall have thirty days to eliminate such
Good Reason. If the Executive terminates his employment under this provision, it shall be deemed a termination without cause by
Good Times and the Executive shall be entitled to the Severance Compensation and Stock Sale Option in the amount and at such time
as set forth under Section 7(g). In addition, all options and rights granted to the Executive under any Good Times Stock Option
Plan shall be accelerated and shall become immediately exercisable on or after the Executive’s termination under this provision
so as to permit the Executive to fully exercise all outstanding options and rights in accordance with their terms.

 

(ii)          
For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following, in each case
during the Term without the Executive’s written consent:

 

(1)         
a reduction in the Executive’s Base Compensation (other than a general reduction that affects all similarly situated
Good Times executives in substantially the same proportions) or a reduction in the Executive’s Performance Bonus Percentage;

 

(2)         
a relocation of the Executive’s principal place of employment outside the Denver, Colorado metropolitan area;

 

    	 	4 	 

    	 	 

    

 

(3)         
a requirement that the Executive spend more than one-third of his working time outside the Denver, Colorado metropolitan
area during a twelve month period;

 

(4)         
a material, adverse change in the Executive’s authority, duties or responsibilities (other than temporarily while
the Executive is physically or mentally incapacitated); or

 

(5)         
a material adverse change in the reporting structure applicable to the Executive.

 

(f)         
Change In Control. If a Change in Control (as defined below) occurs with respect to Good Times, then if the employment
of the Executive is terminated within one year prior to or following the Change in Control (i) by Good Times without cause,
(ii) by the Executive for Good Reason, or (iii) as a result of a material breach of this Agreement by Good Times, the
Executive shall receive the Change in Control Severance and the Stock Sale Option as set forth under Section 7(g). In addition,
all options and rights granted to the Executive under any Good Times Stock Option Plan shall be accelerated and shall become exercisable
immediately so as to permit the Executive to fully exercise all outstanding options and rights. “Change in Control”
is defined herein to include: (i) the sale of all or substantially all of the assets of Good Times; (ii) the sale of
at least thirty percent of the capital stock of Good Times in a single transaction or series of related transactions; (iii) taking
Good Times “private” such that its stock is no longer publicly traded; (iv) a merger, consolidation, reorganization
or similar transaction to which Good Times is a party, except for a transaction in which Good Times is the surviving corporation
and, after giving effect to such transaction, the holders of Good Times’ outstanding capital stock immediately before the
transaction own enough of Good Times’ outstanding capital stock to elect a majority of Good Times’ Board of Directors;
and (v) during any 24 month period the persons who were a majority of the members of the Good Times Board of Directors at
the beginning of such period cease to constitute a majority of members of the Board of Directors at the end of such period.

 

(g)         
Severance Compensation, Change in Control Severance and Stock Sale Option.

 

(i)         
If the Executive’s employment is terminated (A) without cause by Good Times, (B) by the Executive for Good
Reason, (C) on account of a material breach of this Agreement by Good Times, or (D) by the death or disability of the
Executive, Good Times shall pay the Executive (or his estate) in a lump-sum payment within five business days of the Executive’s
termination of employment an amount equal to the sum of (A) the Executive’s Base Compensation for the fiscal year of
the termination, (B) the average of the Executive’s annual Target Bonus compensation for the two fiscal years immediately
prior to the fiscal year of the termination, (C) $15,000, and (D) a lump sum amount equal to what the monthly COBRA premium
payable for the health insurance coverage of the Executive is at the time of his termination multiplied by 12 (together the “Severance
Compensation”).

 

    	 	5 	 

    	 	 

    

 

(ii)         
The Executive (or his estate) shall have the right, but not the requirement, exercisable at any time within fifteen business
days after the effective date of such termination to sell to Good Times all or any portion of the outstanding shares of Good Times
stock owned by the Executive (including any shares acquired by exercise of accelerated options or otherwise) (“Stock Sale
Option”). If the Executive (or his estate) exercises his rights under the Stock Sale Option, the purchase price for each
share of Good Times stock to be purchased by Good Times from the Executive (or his estate) shall be the average daily market price
of Good Times stock (“GTIM”) on NASDAQ or any other applicable public trading market for Good Times stock over the
thirty trading days immediately preceding the termination of the Executive’s employment. The purchase price shall be paid
in cash to the Executive (or his estate) and the closing of such sale shall occur within five business days after the Executive
(or his estate) provides Good Times with written notification of the exercise of the Stock Sale Option.

 

(iii)         
If the Executive’s employment is terminated with respect to a Change of Control as set forth in paragraph (f)
above, instead of the Severance Compensation set forth in subparagraph (i) of this Section (g), Good Times shall pay the Executive
in a lump-sum payment within five business days of the Executive’s termination of employment an amount equal to 2.99 times
the average W-2 Base Compensation and Target Bonus compensation of the Executive for the five fiscal years of Good Times prior
to such termination.

 

(iv)         
In addition to the foregoing provisions of this paragraph (g), all options and rights granted to the Executive under any
Good Times Stock Option Plan shall be accelerated and shall become immediately exercisable on or after the Executive’s termination
so as to permit the Executive (or his estate) to fully exercise all outstanding options and rights in accordance with their terms.

 

(h)         
Code Section 409A Compliance.

 

(i)         
Definition of Termination of Employment. For purposes of this Agreement, the phrase “Termination of Employment”
means the termination of the Executive’s employment with Good Times and all of its affiliates due to death, retirement or
other reasons. The Executive’s employment relationship is treated as continuing while the Executive is on sick leave, or
other bona fide leave of absence (if the period of such leave does not exceed six months, or if longer, so long as the Executive’s
right to reemployment with Good Times or an affiliate is provided either by statute or contract). If the Executive’s period
of leave exceeds six months and the Executive’s right to reemployment is not provided either by statute or by contract, the
employment relationship is deemed to terminate on the first day immediately following the expiration of such six-month period.
Whether a termination of employment has occurred will be determined based on all of the facts and circumstances and in accordance
with regulations issued by the United States Treasury Department pursuant to Section 409A of the Internal Revenue Code of
1986, as amended (“Code”).

 

    	 	6 	 

    	 	 

    

 

(ii)         
Delay of Payments. Notwithstanding the provision for the time of payment as set forth in this Section 7, if Good
Times determines that the Executive is a “specified employee” (as defined in Code Section 409A), and no exception to
Code Section 409A applies, the payments set forth above shall commence on the first day of the seventh month following the Executive’s
termination of employment. All payments that would have otherwise been paid to the Executive during this six-month period shall
also be paid to the Executive in one lump sum on the first day of the seventh month following his termination of employment, plus
interest accruing at the prime rate of interest announced in the Wall Street Journal. If the Executive dies before he receives
the above payments, the Company will distribute the benefits to the Executive’s estate or beneficiaries as soon as administratively
feasible following the date of the Executive’s death. Except for the above required delay in payment, neither the Executive
nor Good Times shall have the right or the ability to accelerate or defer the payment of amounts determined pursuant to this Section
7.

 

(iii)         
Code Section 409A Savings Clause. Notwithstanding any other provision in the Agreement, Good Times shall administer
this Agreement, and exercise all authority and discretion under this Agreement, to satisfy the requirement of Code Section 409A
or any exemption thereto.

 

8.            OTHER AGREEMENTS. Within ten business days following the execution of this Agreement the Executive shall execute
agreements in customary form as reasonably specified by Good Times with respect to confidentiality, non-competition and non-solicitation.

 

9.            ENTIRE AGREEMENT. This Agreement, together with any applicable Stock
Option Agreement between Good Times and the Executive, set forth the entire understanding of the parties regarding the Executive’s
employment with Good Times, and replace and supersede any previous understandings, agreements, discussions, letters or representations
between such parties, written or oral, that may have related in any way to the subject matter hereof including, without limitation,
any employment offers or term sheets dated as of or prior to the date hereof.

 

10.          AMENDMENT. This Agreement may only be amended or modified by an instrument
in writing signed by each of the parties hereto. No failure or delay on the part of either party to this Agreement in the exercise
of any power or right, and no course of dealing between the parties hereto, shall operate as a waiver of such power or right, nor
shall any single or partial exercise of any power or right preclude any further or other exercise thereof or the exercise of any
other power or right. Any waiver of any provision of this Agreement, and any consent to any departure by either party from the
terms of any provision hereof, shall be effective only in the specific instance and for the specific purpose for which given. Nothing
contained in this Agreement and no action or waiver by any party hereto shall be construed to permit any violation of any other
provision of this Agreement or any other document or operate as a waiver by such party of any of his or its rights under any other
provision of this Agreement or any other document.

 

    	 	7 	 

    	 	 

    

 

11.          BINDING EFFECT. This Agreement is personal to, and may not be assigned
or otherwise transferred by, the Executive; however, this Agreement shall inure to the benefit of the Executive’s legal representatives
and heirs. This Agreement shall be binding upon, and inure to the benefit and be the obligation of Good Times, its successors or
assigns.

 

12.          MISCELLANEOUS.

 

(a)         
Severability; Construction. Whenever possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this Agreement is held by a court of competent jurisdiction
to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of this Agreement.

 

(b)         
Choice of Law. This Agreement shall be governed by, and construed in accordance with, the internal laws (as opposed
to conflict of laws provisions) of the State of Colorado.

 

(c)         
Expenses. In the event of any litigation between the parties relating to this Agreement and their rights hereunder,
the prevailing party shall be entitled to recover all reasonable litigation costs and reasonable attorneys’ fees and expenses
from the non-prevailing party.

 

IN WITNESS WHEREOF,
this Agreement has been executed by Good Times and the Executive as of the date first above written.

 

	 	GOOD TIMES RESTAURANTS INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	Geoffrey R. Bailey, Chairman	 
	 	 	 	 
	 	 	 	 
	 	EXECUTIVE	 
	 	 	 	 
	 	By:	 	 
	 	 	Ryan M. Zink	 

 

 

8

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