Document:

Exhibit

Galena Letterhead 
4640 S.W. Macadam Avenue 
Suite 270 
Portland, Oregon 97239
 __, 2014

[Addressee]
Re:    Advancement and Undertaking 
Dear [Addressee]:
As you know, the Board of Directors of Galena Biopharma, Inc. (the “Company”) has established a Special Committee to conduct an investigation relating to, inter alia,  the Company’s retention of The DreamTeam Group for marketing services and the sale of Company stock by you and certain of its other officers and directors (the “Internal Investigation”).  You are also aware that you, together with other officers and directors of Galena, have been named as defendants in one or more complaints filed in the lawsuits described in the attached Schedule of Claims.  The Company is also responding to one or more subpoena from the Securities and Exchange Commission regarding matters raised by the complaints (the “Civil and Regulatory matters”).
The Company and the Special Committee understand that you have engaged [Name of Addressee's counsel] in connection with these matters in connection with this Internal Investigation, as well as to serve as well as “shadow counsel” in the referenced Civil and Regulatory matters.  It is understood that [Addressee’s] role as “shadow counsel” may change and that he may have to enter an appearance on your behalf as the Civil and Regulatory matters evolve.  You have requested that the Company advance the fees and costs incurred by you in connection with [Addressee’s] representation of you in the Internal Investigation, as well as in the Civil and Regulatory matters (or any other related matters) under Article VII of the Amended and Restated Certificate of Incorporation of the Company (formerly RXI Pharmaceuticals Corporation) (“Article VII”) and Section 145 of the Delaware General Corporation Law (“DGCL”).  You understand that, under Article VII and the DGCL, you are entitled to request indemnification for all and advancement of reasonable expenses in connection with these claims and proceedings and any new, related, or follow-on claims, investigations, or proceedings, subject to the conditions set forth below, and that the Company is permitted to indemnify you or to advance your expenses as provided in Article VII and in Section 145 of the DGCL.

-  .

[Addressee]
 ___, 2014
Page 2

The Special Committee has approved your advancement request on the conditions that: 
(a)The fees and costs shall actually and reasonably be incurred by you in connection with the Internal Investigation and the Civil and Regulatory matters described above.  To the extent the fees and costs are applied to the applicable retention amount or reimbursed under the Company’s director and officer liability insurance policies (the “D&O Policies”), they will be irrevocably presumed to be “reasonable” for this purpose. 
(b)    You agree that, once the standard retention under the applicable D&O policies is reached and satisfied (as agreed by the insurer(s)), you will look in the first instance to the D&O insurers for payment of fees and costs.  You do not waive any right at any point to seek to require advancement and indemnification from the Company, should and to the extent that the D&O Insurers ultimately refuse to pay your fees and costs, and without prejudice to any rights you may have under Article VII, the DGCL, or under the applicable D&O Policies.  You understand that the Company does not waive any right at any point to deny such advancement and indemnification, and without prejudice to any rights it may have under Article VII or the DGCL.
(c)    In any event, you hereby undertake to repay all fees and costs so advanced to the extent that it shall ultimately be determined that you are not entitled to be indemnified by the Company under Article VII or the DGCL.
Nothing in this letter shall constitute a waiver of any of your rights, or the rights of the Company, under the D&O Policies, Article VII, or otherwise.  In addition, nothing in this letter shall constitute a waiver of any of the rights of you or the insurers under the D&O Policies, including, but not limited to any primary or Side A coverage.
This letter, together with Article VII, constitutes the entire understanding and agreement among you and the Company with respect to the subject matter of this letter and supersedes any prior or contemporaneous understandings and agreements regarding the same subject matter.
Please acknowledge your agreement to, and acceptance of, the foregoing arrangements by executing and returning a copy of this letter.
Very truly yours,

[Authorized Officer]
	
		
	AGREED TO AND ACCEPTED:

	 

	   
[Addressee]

	 

cc:Untitled Document

 

 Exhibit 10.1

 

March 1, 2016

 

 

BAM Administrative Services LLC

1370 Avenue of the Americas, 32nd Floor

New York, New York 10019

Attention: Dhruv Narain

 

RJ Credit LLC

250 West 55th Street, 14th Floor

New York, New York 10019

Attention: David Steinberg

 

Blank Rome LLP

405 Lexington Avenue

New York, New York 10174

Attention: Eliezer M. Helfgott, Esq.

 

Re: Consent and Agreement

 

Dear Messrs. Narain and Steinberg:

 

Reference is made to that certain Note Purchase Agreement, dated March 7, 2014 (the “NPA”), by and among BRe BCLIC Primary, BRe BCLIC Sub (“BCLIC Sub”), BRe WNIC 2013 LTC Primary (“WNIC Primary”),
BRe WNIC 2013 LTC Sub (“WNIC Sub”), Heartland Bank (“Heartland”) and RJ Credit LLC (“RJC”) (collectively, the “Purchasers”), BAM Administrative Services LLC, as agent for the Investors (the “Agent”), and PEDEVCO Corp.
(the “Company” and, together with each of the Company’s Subsidiaries, the “Pedevco Group Companies” and each, a “Pedevco Group Company”), pursuant to which the Company issued Senior Secured Promissory Notes to each of the Investors (collectively, but excluding the Heartland Note as defined below, the “Notes”).
On March 19, 2015, BRe WNIC 2013 LTC Primary transferred a portion of its Note to Heartland and the Company reissued a replacement note to Heartland (the “Heartland Note”). On April 1, 2015, BRe BCLIC Primary transferred the entirety of its Note to Senior Health Insurance Company of Pennsylvania (“SHIP” and, collectively with the Purchasers but excluding Heartland, the “Investors”
and, together with the Agent, the “Creditor Parties” and each, a “Creditor Party”). Reference is also made to that certain Note and Security Agreement, dated April 10, 2014, as amended on February 23, 2015, issued by the Company to RJC (the “RJC Junior Note”). To the extent not defined herein, capitalized terms shall have the meaning
ascribed to them in the NPA.

 

The Company has requested certain interest and principal deferrals from the Investors and the Investors are willing to grant such requests on the terms and conditions set forth herein. The Company and the Investors hereby agree to amend the terms of that certain Consent and Agreement, dated August 28, 2015, as amended January 29, 2016, entered into by the Company and
each of BCLIC Sub, WNIC Primary, WNIC Sub, SHIP and RJC (collectively, the “Original Investors”) (the “Original Investors August 2015 Consent and Agreement”), as follows:

 

Original Investors August 2015 Consent and Agreement

 

The Original Investors hereby agree as follows (defined terms shall have the meaning ascribed to them in the Original Investors August 2015 Consent and Agreement):

 

 

 

 

Consent and Agreement

Page 2

 

a.

Each of the (i) “Original Investor’s Interest Deferral,” the (ii) “Original Investor’s Principal Repayment Deferral,” and the (iii) “RJC Junior Note Interest Deferral” shall be extended for an additional one (1) month period through March 31, 2016, and the “Waiver Period” shall be similarly extended for an additional one (1) month period through
February 29, 2016;

b.

17/17ths of the interest payments due to the Original Investors otherwise due and payable by the Company to the Original Investors under the Notes on March 1, 2016 shall be deferred until the Maturity Date, with no cash interest payments due to the Original Investors in March 2016;

c.

For the avoidance of doubt, all interest amounts deferred until the Maturity Date as described above shall be added to the principal outstanding amount of the applicable Notes on the first business day of the month immediately following the month in which such deferred interest accrued; and

d.

To the extent issuable under the Original Investors August 2015 Consent and Agreement, as amended, any Subsequent Warrants issuable to the Investors shall be issued within 30 days of April 1, 2016, subject to NYSE MKT additional listing approval.

 

For avoidance of doubt, nothing under this “Original Investors August 2015 Consent and Agreement” section shall amend or otherwise modify the terms and conditions of the Heartland Note, which the Original Investors agree and acknowledge is required to be modified separately. Except as modified hereunder, the terms of
the Notes, as amended to date, shall remain in full force and effect.

 

Miscellaneous

 

For avoidance of doubt, nothing under this Consent and Agreement shall amend or otherwise modify the “Additional Agreements” agreed upon by the Company as set forth in the Consent and Agreement, dated January 29, 2016, entered into by and among the Company and the Investors.

 

The Investors hereby consent and agree that none of the amendments and modifications, or performance by the Company in accordance therewith, made hereunder, shall give rise to a breach or an event of default under the NPA, the Notes, the Heartland Note, the RJC Junior Note, or any other Transaction Documents, or otherwise trigger any right to prepayment under the NPA,
the Notes, the Heartland Note, the RJC Junior Note, or any of the other Transaction Documents. This letter agreement shall be deemed to be a Transaction Document and any breach by any Pedevco Group Company of any “Additional Agreements” as described above shall be deemed to constitute a breach of a Transaction Document. Except as expressly described herein, nothing contained herein shall (a) limit in any manner whatsoever the Company’s
obligation to comply with, and each Investors’ right to insist on the Company’s compliance with, each and every term of each Note, the Heartland Note, the RJC Junior Note, the NPA and each other Transaction Document, or (b) constitute a waiver of any event of default or any right or remedy available to any Investor, or of the Company’s or any other person’s obligation to pay and perform all of its obligations, in each case whether arising under the Notes, the Heartland Note, the NPA, the
RJC Junior Note, or any other Transaction Document, applicable law and/or in equity, all of which rights and remedies howsoever arising are hereby expressly reserved, are not waived and may be exercised by Investors at any time, and none of which obligations are waived.

 

The Company hereby represents and warrants to the Agent and each of the Investors that on the date hereof and after giving effect to this Consent and Agreement, (i) each of the representations and warranties of the Company and the Subsidiaries in the NPA and the other Transaction Documents are and shall be true and correct in all material respects, except for representations
and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such date and (ii) no Default or Event of Default has occurred and is continuing or will occur as a result of the consummation of this Consent and Agreement.

 

Company hereby further confirms and agrees, on behalf of itself and each of its direct and indirect subsidiaries, that all security interests and liens granted to Agent and Investors pursuant to the Transaction Documents continue in full force and effect and shall continue to secure the Obligations (as defined in the Security Agreement), including all liabilities and
obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing, under the Notes, the Heartland Note, the RJC Junior Note and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly
owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from Investors as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.

 

 

 

 

Consent and Agreement

Page 3

 

Subject in each case to any other prior and still effective intercreditor agreements among the Investors that relate to payment priority, each of the Investors hereby further agrees that on and after the occurrence of an Event of Default and/or in connection with the distribution of proceeds from the sale or transfer of all or substantially all of the assets or equity
of the Company, all accrued and unpaid interest deferred by any Investor pursuant to the Interest Deferral shall be repaid in full prior to repayment of any other indebtedness of the Company held by any other Investor.

 

 

 

[Signature Pages Follow]

 

 

Consent and Agreement

Page 4

 

 

Except as specifically set forth herein, all terms and conditions of the NPA, the Notes, the RJC Junior Note, and other Transaction Documents shall remain in full force and effect.

 

Regards,

 

/s/ Clark R. Moore                                                                        

Clark R. Moore

Executive Vice President and General Counsel

PEDEVCO Corp.

 

Consented and Agreed:

 

BAM ADMINISTRATIVE SERVICES LLC

 

By: /s/ Dhruv Narain                                                                 

 

Name: Dhruv Narain                                                                 

 

Title: Authorized Signatory                                                                 

 

Date: March 7, 2016

 

SENIOR HEALTH INSURANCE COMPANY OF PENNSYLVANIA

By: B Asset Manager, LP, its investment manager

 

By: /s/ Dhruv Narain                                                                 

 

Name: Dhruv Narain                                                                 

 

Title: Authorized Signatory                                                                 

 

Date: March 7, 2016

 

BRE BCLIC SUB

 

By: /s/ David B. Young                                                                 

 

Name: David B. Young                                                                 

 

Title: Vice President                                                                 

 

Date: March 7, 2016

 

BRE WNIC 2013 LTC PRIMARY

 

By: /s/ David B. Young                                                                 

 

Name: David B. Young                                                                 

 

Title: Vice President                                                                 

 

Date: March 7, 2016

 

Consent and Agreement

Page 4\5

 

BRE WNIC 2013 LTC SUB

 

By: /s/ David B. Young                                                                 

 

Name: David B. Young                                                                 

 

Title: Vice President                                                                 

 

Date: March 7, 2016

 

RJ CREDIT LLC

 

By: /s/ David Steinberg                                                                 

 

Name: David Steinberg                                                                 

 

Title: Authorized Signatory                                                                 

 

Date: March 7, 2016

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