Document:

Exhibit

Exhibit 10.2

CONSULTING SERVICES AGREEMENT BETWEEN
NEPHROGENEX, INC.
AND
Jaikrishna Patel
THIS CONSULTING SERVICES AGREEMENT (hereinafter referred to as the “Agreement”) effective as of the 14th day of April, 2016, by and between Nephrogenex, Inc., a corporation organized under the laws of the State of Delaware with a place of business at 3200 Beechleaf Court, Suite 900, Raleigh, North Carolina 27604 (hereinafter referred to as “Company”), and Jaikrishna Patel (hereinafter referred to as “Consultant”).
WHEREAS, the parties have agreed that it would be beneficial to the Company if the Consultant assists the Company commencing on April 14, 2016 (the “Effective Date”) in performing certain professional consulting services for the Company specified in this Agreement.
NOW THEREFORE, in consideration of the promises and mutual covenants contained herein and on the terms and conditions hereinafter set forth, it is agreed as follows:
		
	1.
	PROVISION OF SERVICES – Consultant shall personally provide to Company,  the following consulting services (collectively, the “Services”):

		
	(a)
	services necessary to facilitate the sale of the Company’s assets; and

		
	(b)
	other related services that may be requested from time to time by the Company.

Consultant agrees to use Consultant’s reasonable efforts in the furnishing of the Services and shall not assign any obligations hereunder.  Consultant shall maintain sole control and discretion as to when and where the Services are performed, provided that the Company may upon respective agreement to travel to various business locations or at it offices as necessary.  
		
	2.
	FEES FOR SERVICES

Company agrees to pay Consultant in consideration of Consultant’s performance of the Services hereunder by paying Consultant: (i) a flat fee of $5,700 per month, and (ii) a hourly fee of $190 per hour for all hours worked in excess of twenty (30) hours in a given month (the “Consulting Fees”).  To facilitate such payment, Consultant shall submit documentation of his time devoted to Services no later than five (5) business days after the last business day of each month.  The flat fee portion of the Consulting Fees shall be payable by wire transfer to Consultant no later than the 13th 

of each month, and the hourly fee portion of the Consulting Fees shall be payable to Consultant no later than two (2) business days after Consultant provides such documentation to the Company.  Additionally, Company shall reimburse Consultant for reasonable travel and business expenses incurred in the performance of the Services, including travel to and from the offices of the Company, provided, however, that the Consultant shall obtain pre-approval from the Company before incurring any expenses that will exceed $2,000. 
		
	3.
	TERM & TERMINATION 

		
	(a)
	This Agreement shall enter into force and effect on the Effective Date, and shall remain in force and effect through and including June 15, 2016 (the “Initial Term”).

		
	(b)
	This Agreement and the engagement may be terminated by either party for any reasons upon fourteen (14) days written notice to the other party.  Unless so terminated, this Agreement shall renew automatically for one-month terms (the Initial Term together with any successor terms shall constitute the “Term”).

		
	(c)
	Consultant shall be entitled to receive payment for all Services actually rendered and all expenses incurred up through the effective date of termination in accordance with the provisions of Section 2 hereof.

		
	4.
	CONFIDENTIALITY OF INFORMATION AND DOCUMENTS ‐ Company shall submit information and/or documents to Consultant in order to permit Consultant to perform the Services required under this Agreement and Consultant shall keep such information and/or documents in the strictest confidence using the same degree of care that Consultant uses in safeguarding Consultant’s own confidential information both during and after the completion of the services under this Agreement and for a period of 3 years after completion of the Services, unless Consultant shall receive from Company the consent of Company in writing to disclose such confidential information.  However, nothing herein shall be interpreted as preventing Consultant from disclosing and/or using said information or documents which (i) are already rightfully in the possession of Consultant without obligation of confidence, but were not obtained directly or indirectly from Company or its affiliates; or (ii) are independently developed by Consultant not as part of the Services rendered or called for under the terms of this Agreement and without reliance or use of Company’s confidential information or documents; or (iii) are or become available to the general public without breach of this Agreement; or (iv) are rightfully received by Consultant from a third party who is not under obligation of confidence, but who did not obtain them directly or indirectly from Company or its affiliates; or (v) are required to be disclosed pursuant to law or court order, or as may be authorized by Company.

2

		
	5.
	LIABILITY OF CONSULTANT – In furnishing Company with the Services provided herein, Consultant shall comply with all applicable laws, rules and regulations.  Consultant shall not be liable to Company or its creditors for errors of judgment or for any matters, except for willful malfeasance, bad faith or gross negligence in the performance of the Services or the negligent breach of its obligations and duties under the terms of this Agreement.  It is further agreed and understood that Consultant may rely upon information furnished to it by Company which Consultant reasonably believes to be accurate and reliable and that, except as provided herein, Consultant shall not be accountable for any loss suffered by Company by the reason of Company’s action or non-action on the basis of any advice, recommendation or approval of Consultant, except as provided above.

		
	6.
	INDEPENDENT CONTRACTOR ‐ Execution of this Agreement in no way creates, nor shall this Agreement be interpreted or construed as creating, an employment, agency, partnership or joint venture relationship between Company and Consultant and it is understood Consultant will be acting as an independent contractor.  

		
	(a)
	The Company shall have no right to control or direct the details, manner or means by which Consultant accomplishes the results of the Services

		
	(b)
	The Company will record payments of the Consulting Fees to Consultant on, and provide to Consultant, an Internal Revenue Service Form 1099, and the Company will not withhold any federal, state or local employment taxes on Consultant’s behalf.  Consultant agrees to pay all such taxes associated with the Consulting Fees in a timely manner and as prescribed by law.  Consultant further acknowledges and agrees that he is solely responsible for reporting the Consulting Fees to any applicable taxing authority as he deems appropriate, and Consultant does not rely upon any representations of the Company or its employees, agents, or attorneys regarding the taxability of the Consulting Fees.

		
	(c)
	Consultant will not be considered an employee for purposes of any Company employment policy, practice, program or plan (including without limitation, any employee benefit plan(s) offered by the Company to its employee), and Consultant will not be entitled to any benefits under any such policy, practice, program, or plan.

		
	7.
	OTHER WORK BY CONSULTANT.  During the Term, Consultant shall be free to provide professional consulting services to any entities or individuals other than the Company, provided that it does not interfere with Consultant’s ability to provide the Services identified under Section 1 above. 

		
	8.
	MISCELLANEOUS

		
	(a)
	Nothing contained herein shall be deemed to require Company to take any action contrary to its Certificate of Incorporation or By-Laws, or any 

3

applicable statute or regulation, or to deprive its Officers and Board of Directors of their responsibility for any control of the conduct or the affairs of Company.
		
	(b)
	This Agreement shall constitute the entire agreement between Company and Consultant relating to the Services to be performed, and no representations, promises, understandings, or agreements, oral or otherwise, not herein contained shall be of any force or effect. No modification or waiver of any provision of this Agreement shall be valid unless it is in writing and signed by both Company and Consultant.  This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.  Notwithstanding the above, (i) the Separation Agreement dated April 13, 2016; (ii) Sections 7-9 of the Employment Agreement, dated July 2, 2015, and (iii) any equity related agreements shall each remain in full force and effect and are not superseded by this Agreement.  

		
	(c)
	This Agreement is not assignable by Consultant or Company without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed.

		
	(d)
	This Agreement shall be governed by, and construed in accordance with, the laws of the State of North Carolina.

		
	(e)
	(i) Any dispute between the parties arising directly or indirectly from this Agreement shall be resolved by arbitration in New York City, New York pursuant to the Commercial Arbitration Rules then obtaining of the American Arbitration Association.  Neither party shall commence any action against the other to resolve any such dispute in any court except to confirm such an arbitrator’s award.  Judgment upon any such award rendered may be entered by any federal court in the United States.  The arbitrator or arbitrators (1) shall not have any power or authority to add to, alter, amend or modify the terms of this Agreement; (2) shall interpret and construe this Agreement in accordance with, and shall be bound by, the substantive laws of the State of North Carolina, without regard to conflicts of law provisions (except that this paragraph shall be governed by the Federal Arbitration Act); (3) shall have no power or authority to grant or award punitive damages; and (4) shall establish and enforce appropriate rules to ensure that the proceeding, including the decision, be kept confidential and that all confidential information of the parties be kept confidential and be used for no purpose other than the arbitration.  The parties shall be deemed to have waived any rights to punitive, consequential, exemplary or special damages.

 (ii) Notwithstanding any provision contained herein to the contrary, neither party shall be required to arbitrate any dispute relating to any actual or threatened breaches of this Agreement by the other party involving (1) the 

4

unauthorized disclosure of such party’s confidential information in violation of this Agreement, or (2) the violation of such party’s proprietary rights.
		
	(f)
	In the event of any arbitration or litigation between the parties to declare or enforce any provision of this Agreement, the prevailing party shall be entitled to recover from the losing party, in addition to any other recovery and costs, reasonable attorney’s fees and costs incurred in such arbitration or litigation.

		
	(g)
	Any notices required to be given hereunder shall be sent to each respective party at the addresses first given above, and shall be effective upon receipt by the addressee.

IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have signed this Agreement as of the date first above written.

Nephrogenex, Inc.    Consultant
	
					
	By: 
	/s/ John Hamill
	 
	By: 
	/s/ Jaikrishna Patel

	 
	John Hamill
Chief Financial Officer
	 
	 
	Jaikrishna Patel

5ped_ex101.htm

Exhibit 10.1

 

 

April 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, and March 1, 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 April 30, 2016, and the “Waiver Period” shall be similarly extended for an additional one (1) month period through March 31, 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 April 1, 2016 shall be deferred until the Maturity Date, with no cash interest payments due to the Original Investors in April 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 May 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.

 

  

  

  

 

Consent and Agreement

Page 3

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.

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:  April 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:  April 7, 2016

BRE BCLIC SUB

By:  /s/ David B. Young                                                                

Name:  David B. Young                                                                

Title:  Vice President                                                                

Date:  April 7, 2016

 

  

  

  

 

Consent and Agreement

Page 5

BRE WNIC 2013 LTC PRIMARY

By:  /s/ David B. Young                                                                

Name:  David B. Young                                                                

Title:  Vice President                                                                

Date:  April 7, 2016

BRE WNIC 2013 LTC SUB

By:  /s/ David B. Young                                                                

Name:  David B. Young                                                                

Title:  Vice President                                                                

Date:  April 7, 2016

RJ CREDIT LLC

By:  /s/ David Steinberg                                                                

Name:  David Steinberg                                                                

Title:  Authorized Signatory                                                                

Date:  April 7, 2016

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]