Document:

exv10w3

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

Exhibit 10.3

AMENDED
AND RESTATED
ESCROW AGREEMENT

UMB Bank, N.A.

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, MO 64106

     Re:
Cole Real Estate Income Strategy (Daily NAV), Inc.

Ladies and Gentlemen:

COLE REAL ESTATE INCOME STRATEGY (DAILY NAV), INC., a Maryland corporation (the “Company”), will issue in
a public offering (the “Offering”) shares of its common stock (the “Stock”)
pursuant to a registration statement on Form S-11 filed by the Company with the Securities and
Exchange Commission. Cole Capital Corporation, an Arizona corporation (the “Dealer
Manager”), will act as dealer manager for the offering of the Stock. The Company is entering
into this agreement, which amends and restates that certain Escrow
Agreement between the parties, dated as of September 21, 2011, to set forth the terms on which UMB BANK, N.A. (the “Escrow Agent”),
will, except as otherwise provided herein, hold and disburse the proceeds from subscriptions for
the purchase of the Stock in the Offering until such time as: (i) the Company has received subscriptions for at least
$10,000,000 in shares of Stock in the Offering (the “Required Capital”); and (ii) in the
case of subscriptions received from residents of Pennsylvania (“Pennsylvania Subscribers”),
the Company has received subscriptions for Stock resulting in
total minimum capital raised of $200,000,000 (the “Pennsylvania Required Capital”).

The Company hereby appoints UMB Bank, N.A. as Escrow Agent for purposes of holding the proceeds
from the subscriptions for the Stock, on the terms and conditions hereinafter set forth:

1. Until such time as the Company has received subscriptions for Stock resulting in total
minimum capital raised equal to the Required Capital and such funds are disbursed from the Escrow
Account (as defined below) in accordance with paragraph 3(a) hereof, persons subscribing to
purchase the Stock (the “Subscribers”) will be instructed by the Dealer Manager or any
soliciting dealers to remit the purchase price in the form of checks, drafts, wires, Automated
Clearing House (ACH) or money orders (hereinafter “instruments of payment”) payable to the
order of “UMB Bank, N.A., Agent for Cole Real Estate Income Strategy (Daily NAV), Inc.” or a recognizable
contraction or abbreviation thereof, including but not limited to,
“UMB Bank, N.A., f/b/o Cole REIT”. After subscriptions are received resulting in total minimum
capital raised equal to the Required Capital and such funds are disbursed from the Escrow Account
in accordance with paragraph 3(a) hereof, subscriptions shall continue to be so submitted unless
otherwise instructed by the Dealer Manager. Any checks, drafts or money orders received made
payable to a party other than the Escrow Agent (or after the Required Capital is received, made
payable by a Subscriber other than a Pennsylvania Subscriber to a party other than the party
designated by the Dealer Manager) shall be returned promptly to the soliciting dealer who submitted
the check, draft or money order. Within one (1) business day after receipt of instruments of
payment from the Offering, the Dealer Manager, the Company or their respective agents will (a) send
to the Escrow Agent: each Subscriber’s name, address, number of shares purchased, and purchase
price remitted, and (b) Escrow Agent will deposit the instruments of payment from such Subscribers
into an interest-bearing deposit account entitled “Escrow Account for the Benefit of Subscribers
for Common Stock of Cole Real Estate Income Strategy (Daily NAV),

 

 

Inc.” (the “Escrow Account”), which deposit shall occur within one (1) business day after
the Escrow Agent’s receipt of the instrument of payment, until such Escrow Account has closed
pursuant to paragraph 3(a) hereof. The Escrow Agent agrees to maintain the funds contributed by
the Pennsylvania Subscribers in a manner in which they may be separately accounted for on the
records of Escrow Agent so that the requirements of Section 3 of this Agreement can be met. The
Escrow Account will be established and maintained in such a way as to permit the interest income
calculations described in paragraph 7. The Company shall, and shall cause its agents to, cooperate
with the Escrow Agent in separately accounting for Pennsylvania subscription proceeds in the Escrow
Account, and the Escrow Agent shall be entitled to rely upon information provided by the Company or
its agents in this regard.

2. The Escrow Agent agrees to promptly process for collection the instruments of payment upon
deposit into the Escrow Account. Deposits shall be held in the Escrow Account until such funds are
disbursed in accordance with paragraph 3 hereof. Prior to disbursement of the funds deposited in
the Escrow Account, such funds shall not be subject to claims by creditors of the Escrow Agent, the
Company, the Dealer Manager, any soliciting dealer or any of their respective affiliates. If any
of the instruments of payment are returned to the Escrow Agent for nonpayment prior to receipt of
the Required Capital or, in connection with subscriptions from Pennsylvania Subscribers, the
Pennsylvania Required Capital, the Escrow Agent shall promptly notify the Dealer Manager and the
Company in writing via mail, email or facsimile of such nonpayment, and is authorized to debit the
Escrow Account in the amount of such returned payment as well as any interest earned on the amount
of such payment.

     3. (a) (i) Subject to the provisions of subparagraphs 3(b)-3(g) below, once the collected
funds in the Escrow Account are an amount equal to or greater than the Required Capital, the Escrow
Agent shall promptly notify the Company and, upon receiving written instruction from the Company,
(A) promptly disburse to the Company, by check, ACH or wire transfer, the funds in the Escrow
Account representing the gross purchase price for the Stock less any funds received from
Pennsylvania Subscribers, and (B) within five business days after the first business day of the
succeeding month, disburse to the Company any interest thereon pursuant to the provisions of
subparagraph 3(g). After such time the Escrow Account shall remain open and the Company shall
continue to cause subscriptions for the Stock to be deposited therein until the Company informs the
Escrow Agent in writing to cease depositing subscriptions received from Subscribers other than
Pennsylvania Subscribers, and thereafter any subscription documents and instruments of payment
received by the Escrow Agent from Subscribers other than Pennsylvania Subscribers shall be
forwarded directly to the Company. For purposes of this Agreement, the term “collected funds”
shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are
in the form of cash or cash equivalent. After the satisfaction of the aforementioned provisions
of this paragraph 3(a)(i), in the event the Company receives subscriptions made payable to the
Escrow Agent (other than subscriptions from Pennsylvania Subscribers), such subscription proceeds
may continue to be received in this account generally, but to the extent such proceeds shall not be
subject to escrow due to the satisfaction of the aforementioned provisions of this paragraph
3(a)(i), such proceeds are not subject to this Escrow Agreement and at the instruction of the
Company to the Escrow Agent shall be transferred from the Escrow Account or deposited directly
into, as the case may be, a commercial deposit account in the name of the Company (the “Deposit
Account”) that has been previously established by the Company, unless otherwise directed by the
Company. The Company hereby covenants and agrees that it shall do all things necessary in order to
establish the Deposit Account, which, if established with the Escrow Agent, shall be subject to the
Escrow Agent’s usual account guidelines and regulations, prior to its use. No provisions of this
Escrow Agreement shall apply to the Deposit Account.

          (ii) regardless of any release of funds from the Escrow Account from Subscribers other than
Pennsylvania Subscribers, the Company, the Dealer Manager and soliciting dealers shall continue to
forward instruments of payment received from Pennsylvania Subscribers for deposit into the
Escrow

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Account to the Escrow Agent until such time as the Company notifies the Escrow Agent in
writing that total subscription proceeds (including the amount then in the Escrow Account from
Pennsylvania Subscribers) equal or exceed the Pennsylvania Required Capital. Promptly after
receipt by the Escrow Agent of such notice, the Escrow Agent shall (A) disburse to the Company, by
check, ACH or wire transfer, the funds then in the Escrow Account representing the gross purchase
price for the Stock from Pennsylvania Subscribers, and (B) within five business days after the
first business day of the succeeding month, disburse to the Company any interest thereon pursuant
to the provisions of subparagraph 3(g). Following such disbursements, the Escrow Agent shall close
the Escrow Account, and thereafter any instruments of payment received by the Escrow Agent from
Pennsylvania Subscribers shall not be subject to this Escrow Agreement and shall be deposited
directly into the Deposit Account, as instructed in writing by the Company pursuant to subparagraph
3(a)(i) above.

     (b) Within four business days of the close of business on the date that is 180 days following
commencement of the Offering (the “Expiration Date”), the Escrow Agent shall promptly
notify the Company if it is not in receipt of evidence of deposits for the purchase of Stock
providing for aggregate offering proceeds that equal or exceed the
Required Capital and the Offering will abruptly terminate. Within ten days following
the date of such notice, the Escrow Agent shall promptly return directly to each Subscriber the
collected funds deposited in the Escrow Account on behalf of such Subscriber (unless earlier
disbursed in accordance with paragraph 3(c)), or shall return the instruments of payment delivered,
but not yet processed for collection prior to such time, in either case, together with interest
income (which interest shall be paid within five business days after the first business day of the
succeeding month) in the amounts calculated pursuant to paragraph 7 for each Subscriber at the
address provided by the Dealer Manager or the Company to the Escrow Agent, which the Escrow Agent
shall be entitled to rely upon. Notwithstanding the above, in the event the Escrow Agent has not
received an executed IRS Form W-9 at such time for each Subscriber, the Escrow Agent shall remit an
amount to the Subscribers in accordance with the provisions hereof, withholding the applicable
percentage for backup withholding required by the Internal Revenue Code, as then in effect, from
any interest income on subscription proceeds (determined in accordance with paragraph 7)
attributable to each Subscriber for whom the Escrow Agent does not possess an executed IRS Form
W-9. However, the Escrow Agent shall not be required to remit any payments until the Escrow Agent
has collected funds represented by such payments.

     (c) Notwithstanding subparagraphs 3(a) and 3(b) above, if the Escrow Agent is not in receipt
of evidence of subscriptions accepted on or before the close of business on such date that is 120
days after the effective date of the Offering (the Company will notify the Escrow Agent of the
effective date of the Offering) (the “Initial Escrow Period”), and instruments of payment
dated not later than that date, for the purchase of Stock providing for total purchase proceeds
that equal or exceed the Pennsylvania Required Capital, the Escrow
Agent shall promptly notify the Company. Thereafter, the Company shall send to each Pennsylvania
Subscriber by certified mail within ten (10) calendar days after the end of the Initial Escrow
Period a notification in the form of Exhibit A. If, pursuant to such notification, a Pennsylvania
Subscriber requests the return of his or her subscription funds within ten (10) calendar days after
receipt of the notification (the “Request Period”), the Escrow Agent shall, within fifteen
(15) calendar days after receipt of such request, refund directly to each Pennsylvania Subscriber
the collected funds deposited in the Escrow Account on behalf of such Pennsylvania Subscriber or
shall return the instruments of payment delivered, but not yet processed for collection prior to
such time, to the address provided by the Dealer Manager or the Company or their respective agents
to the Escrow Agent, which the Escrow Agent shall be entitled to rely upon, together with interest
income (which interest shall be paid within five business days after the first business day of the
succeeding month) in the amounts calculated pursuant to paragraph 7. Notwithstanding the above, if
the Escrow Agent has not received an executed IRS Form W-9 is for such Pennsylvania
Subscriber, the

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Escrow Agent shall thereupon remit an amount to such Pennsylvania Subscriber in
accordance with the provisions hereof, withholding the applicable percentage for backup withholding
required by the Internal Revenue Code, as then in effect, from any interest income earned on
subscription proceeds (determined in accordance with paragraph 7) attributable to such Pennsylvania
Subscriber. However, the Escrow Agent shall not be required to remit such payments until the
Escrow Agent has collected funds represented by such payments.

     (d) The subscription funds of Pennsylvania Subscribers who do not request the return of their
subscription funds within the Request Period shall remain in the Escrow Account for successive
120-day escrow periods (a “Successive Escrow Period”), each commencing automatically upon
the termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall
follow the notification and payment procedure set forth in subparagraph 3(c) above with respect to
the Initial Escrow Period for each Successive Escrow Period until the occurrence of the earliest of
(i) the Expiration Date (if the Company has not received the Required Capital on or before the
Expiration Date), (ii) the receipt and acceptance by the Company of subscriptions for the purchase
of Stock with total purchase proceeds that equal or exceed the Pennsylvania Required Capital and
the disbursement of the funds from Pennsylvania Subscribers from the Escrow Account on the terms
specified herein, or (iii) all funds held in the Escrow Account from Pennsylvania Subscribers
having been returned to the Pennsylvania Subscribers in accordance with the provisions hereof.

     (e) In the event that, prior to the Expiration Date, a Subscriber notifies the Company or the
Dealer Manager that the Subscriber has elected to withdraw his or her subscription for Stock, the
Company or Dealer Manager, as the case may be, shall notify the Escrow Agent of the Subscriber’s
election. Promptly following its receipt of such notice, the Escrow Agent shall return directly to
such Subscriber the collected funds deposited in the Escrow Account on behalf of such Subscriber,
or shall return the instruments of payment delivered, but not yet processed for collection prior to
such time, in either case, together with interest income (which interest shall be paid within five
business days after the first business day of the succeeding month) in the amounts calculated
pursuant to paragraph 7 for each such Subscriber at the address provided by the Dealer Manager or
the Company to the Escrow Agent, which the Escrow Agent shall be entitled to rely upon.
Notwithstanding the above, in the event the Escrow Agent has not received an executed IRS Form W-9
at such time for any such Subscriber, the Escrow Agent shall remit an amount to such Subscriber in
accordance with the provisions hereof, withholding the applicable percentage for backup withholding
required by the Internal Revenue Code, as then in effect, from any interest income earned on
subscription proceeds (determined in accordance with paragraph 7) attributable to such Subscriber.
However, the Escrow Agent shall not be required to remit such payments until the Escrow Agent has
collected funds represented by such payments.

     (f) If the Company rejects any subscription for which the Escrow Agent has collected funds,
the Escrow Agent shall, upon the written request of the Company, promptly issue a refund to the
rejected Subscriber at the address provided by the Dealer Manager or the Company, which the Escrow
Agent shall be entitled to rely upon. If the Company rejects any subscription for which the Escrow
Agent has not yet collected funds but has submitted the Subscriber’s check for collection, the
Escrow Agent shall promptly return the funds in the amount of the Subscriber’s check to the
rejected Subscriber, at the address provided by the Dealer Manager or the Company or their
respective agents, which the Escrow Agent shall be entitled to rely upon, after such funds have
been collected. If the Escrow Agent has not yet submitted a rejected Subscriber’s check for
collection, the Escrow Agent shall promptly remit the Subscriber’s check directly to the
Subscriber.

     (g) At any time after funds are disbursed upon the Company’s acceptance of subscriptions
pursuant to subparagraph 3(a) above, on the fifth business day following the first business day of
the next
succeeding month following the date of such acceptance, the Escrow Agent shall promptly
provide

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directly to the Company the amount of the interest payable to the Company. However, the
Escrow Agent shall not be required to remit any payments until the Escrow Agent has collected the
funds represented by such payments.

     In the event that instruments of payment are returned for nonpayment, the Escrow Agent is
authorized to debit the Escrow Account in accordance with paragraph 2 hereof.

4. The Escrow Agent shall provide to the Company monthly statements (or more frequently as
reasonably requested by the Company) which include, without limitation, if such amounts are not
available to the Company at least daily pursuant to the “TrustDirect” program, the account balance
in the Escrow Account, the account balance of the funds in the Escrow Account from Pennsylvania
Subscribers, and the activity in the Escrow Account and, separately, the activity involving
Pennsylvania Subscribers since the last report. The Escrow Agent will provide access to its
“TrustDirect” program to allow the Company to view account balances for the Escrow Account and the
funds in the Escrow Account from Pennsylvania Subscribers at any time.

5. Prior to the disbursement of funds deposited in the Escrow Account in accordance with the
provisions of paragraph 3 hereof, the Escrow Agent shall invest all of the funds deposited as well
as earnings and interest derived therefrom in the Escrow Account in the “Short-Term Investments”
specified below at the written direction of the Company, unless the costs to the Company for the
making of such investment are reasonably expected to exceed the anticipated interest earnings from
such investment in which case the funds and interest thereon shall remain in the Escrow Account
until the balance in the Escrow Account reaches the minimum amount necessary for the anticipated
interest earnings from such investment to exceed the costs to the Company for the making of such
investment, as determined by the Company based upon applicable interest rates.

     “Short-Term Investments” include obligations of, or obligations guaranteed by, the United
States government or bank money-market accounts or certificates of deposit of national or state
banks that have deposits insured by the Federal Deposit Insurance Corporation (including
certificates of deposit of any bank acting as a depository or custodian for any such funds) which
mature on or before the Expiration Date, unless such instrument cannot be readily sold or otherwise
disposed of for cash by the Expiration Date without any dissipation of the offering proceeds
invested. Without limiting the generality of the foregoing, Exhibit B hereto sets forth
specific Short-Term Investments that shall be deemed permissible investments hereunder.

The following securities are not permissible investments:

(a) money market funds;

(b) corporate equity or debt securities;

(c) repurchase agreements;

(d) bankers’ acceptances;

(e) commercial paper; and

(f) municipal securities.

It is hereby expressly agreed and stipulated by the parties hereto that the Escrow Agent shall not
be required to exercise any discretion hereunder and shall have no investment or management
responsibility and, accordingly, shall have no duty to, or liability for its failure to, provide
investment recommendations or investment advice to the parties hereto. It is the intention of the
parties hereto that the Escrow Agent shall never be required to use, advance or risk its own funds
or otherwise incur financial liability in the performance of any of its duties or the exercise of
any of its rights and powers hereunder.

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6. The Escrow Agent is entitled to rely upon written instructions received from the Company or the
Dealer Manager or their respective agents, unless the Escrow Agent has actual knowledge that such
instructions are not valid or genuine; provided that, if in the Escrow Agent’s opinion, any
instructions from the Company or the Dealer Manager or their respective agents are unclear, the
Escrow Agent may request clarification from the Company or the Dealer Manager or their respective
agents, as applicable, prior to taking any action, and if such instructions continue to be unclear,
the Escrow Agent may rely upon written instructions from the Company’s legal counsel in
distributing or continuing to hold any funds. However, the Escrow Agent shall not be required to
disburse any funds attributable to instruments of payment that have not been processed for
collection, until such funds are collected and then shall disburse such funds in compliance with
the disbursement instructions from the Company or the Dealer Manager or their respective agents.

7. If (a) the Offering terminates prior to receipt of the Required Capital, (b) one or more
Pennsylvania Subscribers elects to have his or her subscription returned in accordance with
paragraph 3, or (c) one or more Subscribers elects to have his or her subscription returned in
accordance with paragraph 3(e), interest income earned in the Escrow Account on subscription
proceeds deposited in the Escrow Account (the “Escrow Income”) shall be remitted to the
applicable Subscribers at the addresses provided by the Dealer Manager or the Company to the Escrow
Agent, which the Escrow Agent shall be entitled to rely upon, in accordance with paragraph 3 and
without any deductions for escrow expenses. The Company shall reimburse the Escrow Agent for all
escrow expenses. If the Escrow Agent remits interest income pursuant to this Agreement, the Escrow
Agent shall be responsible for any necessary federal tax reporting associated with such income;
provided, however, that the Escrow Agent shall not be responsible for any other tax reporting
associated with this Agreement. The Escrow Agent shall remit all such Escrow Income in accordance
with paragraph 3. If the Company chooses to leave the Escrow Account open to Subscribers other
than Pennsylvania Subscribers after receiving the Required Capital, then it shall make regular
acceptances of such subscriptions therein, but no less frequently than monthly, and the Escrow
Income from the last such acceptance shall be calculated and remitted to the Company pursuant to
the provisions of paragraph 3(g).

8. The Escrow Agent shall receive compensation from the Company as set forth in Exhibit
C attached hereto, which such Exhibit C is hereby incorporated by reference.

9. In performing any of its duties hereunder, the Escrow Agent shall not incur any liability to
anyone for any damages, losses, or expenses, except for willful misconduct, breach of trust, or
gross negligence. Accordingly, the Escrow Agent shall not incur any such liability with respect to
any action taken or omitted (a) in good faith upon advice of the Escrow Agent’s counsel given with
respect to any questions relating to the Escrow Agent duties and responsibilities under this
Agreement, or (b) in reliance upon any instrument, including any written instrument or instruction
provided for in this Agreement, not only as to its due execution and validity and effectiveness of
its provisions but also as to the truth and accuracy of information contained therein, which the
Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by a
proper person or persons and to conform to the provisions of this Agreement.

10. The Company hereby agrees to indemnify and hold the Escrow Agent harmless against any and all
losses, claims, damages, liabilities, and expenses, including reasonable attorneys’ fees and
disbursements, that may be imposed on or incurred by the Escrow Agent in connection with acceptance
of appointment as the Escrow Agent hereunder, or the performance of the duties hereunder, including
any litigation arising from this Agreement or involving the subject matter hereof, except where
such losses, claims, damages, liabilities, and expenses result from willful misconduct, breach of
trust, or gross negligence.

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11. In the event of a dispute between the parties hereto sufficient in the Escrow Agent’s
discretion to justify doing so, the Escrow Agent shall be entitled to tender into the registry or
custody of any court of competent jurisdiction all money or property in its hands under this
Agreement, together with such legal pleadings as deemed appropriate, and thereupon be discharged
from all further duties and liabilities under this Agreement. In the event of any uncertainty as to
the duties hereunder, the Escrow Agent may refuse to act under the provisions of this Agreement
pending order of a court of competent jurisdiction and shall have no liability to the Company or to
any other person as a result of such action. Any such legal action may be brought in such court,
as the Escrow Agent shall determine to have jurisdiction thereof. The filing of any such legal
proceedings shall not deprive the Escrow Agent of its compensation earned prior to such filing.

12. All communications and notices required or permitted by this Agreement shall be in writing and
shall be deemed to have been given when delivered personally or by messenger or by overnight
delivery service or when received via telecopy or other electronic transmission, in all cases
addressed to the person for whom it is intended at such person’s address set forth below or to such
other address as a party shall have designated by notice in writing to the other party in the
manner provided by this paragraph:

	 	(a)	 	if to the Company:
	 
	 	 	 	Cole Real Estate Income Strategy (Daily NAV), Inc.

2555 E. Camelback Road, Suite 400

Phoenix, Arizona 85016

Fax: (602) 778-8780

Attention: D. Kirk McAllaster, Jr.

	 
	 	(b)	 	if to the Dealer Manager:
	 
	 	 	 	Cole Capital Corporation

2575 E. Camelback Road, Suite 500

Phoenix, Arizona 85016

Fax: (602) 778-8780

Attention: Marc T. Nemer, Esq.
	 
	 	(c)	 	if to the Escrow Agent:
	 
	 	 	 	UMB Bank, N.A.

Corporate Trust Department M/S 1020409

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, MO 64106

Attention: Lara Stevens

Each party hereto may, from time to time, change the address to which notices to it are to be
delivered or mailed hereunder by notice in accordance herewith to the other parties.

13. This Agreement shall be governed by the laws of the State of Arizona as to both interpretation
and performance without regard to the conflict of laws rules thereof.

14. The provisions of this Agreement shall be binding upon the legal representatives, successors,
and assigns of the parties hereto.

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15. The Company and the Dealer Manager hereby acknowledge that UMB Bank, N.A. is serving as Escrow
Agent only for the limited purposes herein set forth, and hereby agree that they will not represent
or imply that, by serving as Escrow Agent hereunder or otherwise, have investigated the
desirability or advisability of investment in the Company or have approved, endorsed, or passed
upon the merits of the Stock or the Company, nor shall they use the name of the Escrow Agent in any
manner whatsoever in connection with the offer or sale of the Stock other than by acknowledgment
that is has agreed to serve as Escrow Agent for the limited purposes herein set forth.

16. This Agreement and any amendment hereto may be executed by the parties hereto in one or more
counterparts, each of which shall be deemed to be an original.

17. Except as otherwise required for subscription funds received from Pennsylvania Subscribers as
provided herein, in the event that the Dealer Manager receives instruments of payment after the
Required Capital has been received and the proceeds of the Escrow Account have been distributed to
the Company, the Escrow Agent is hereby authorized to deposit such instruments of payment within
one (1) business day to any deposit account as directed by the Company. The application of said
funds into a deposit account or to forward such funds directly to the Company, in either case
directed by the Company shall be a full acquittance to the Escrow Agent, who shall not be
responsible for the application of said funds thereafter.

18. The Escrow Agent shall be bound only by the terms of this Escrow Agreement and shall not be
bound by or incur any liability with respect to any other agreements or understanding between any
other parties, whether or not the Escrow Agent has knowledge of any such agreements or
understandings.

19. Indemnification provisions set forth herein shall survive the termination of this Agreement.

20. In the event that any part of this Agreement is declared by any court or other judicial or
administrative body to be null, void, or unenforceable, said provision shall survive to the extent
it is not so declared, and all of the other provisions of this Agreement shall remain in full force
and effect.

21. Unless otherwise provided in this Agreement, final termination of this Escrow Agreement shall
occur on the date that all funds held in the Escrow Account are distributed either (a) to the
Company or to Subscribers and the Company has informed the Escrow Agent in writing to close the
Escrow Account pursuant to paragraph 3 hereof or (b) to a successor escrow agent upon written
instructions from the Company.

22. Neither the Escrow Agent, nor its agents, shall have responsibility for accepting, rejecting,
or approving subscriptions. The Escrow Agent, or its agent, shall complete an OFAC search, in
compliance with its policy and procedures, of each subscription check and shall inform the Company
if a subscription check fails the OFAC search. The Company shall provide a copy of each
subscription check in order that the Escrow Agent, or its agent, may perform such OFAC search.

23. This Agreement shall not be modified, revoked, released, or terminated unless reduced to
writing and signed by all parties hereto, subject to the following paragraph.

If, at any time, any attempt is made to modify this Agreement in a manner that would increase the
duties and responsibilities of the Escrow Agent or to modify this Agreement in any manner which the
Escrow Agent shall deem undesirable, or at any other time, the Escrow Agent may resign by providing
written notice to the Company and until (a) the acceptance by a successor escrow agent as shall be
appointed by the Company; or (b) thirty (30) days after such written notice has been given,
whichever occurs sooner,

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the Escrow Agent’s only remaining obligation shall be to perform its
duties hereunder in accordance with the terms of the Agreement.

24. The Escrow Agent may resign at any time from its obligations under this Escrow Agreement by
providing written notice to the Company. Such resignation shall be effective on the date specified
in such notice, which shall be not less than thirty (30) days after such written notice has been
given. The Escrow Agent shall have no responsibility for the appointment of a successor escrow
agent.

25. The Escrow Agent may be removed for cause by the Company by written notice to the Escrow Agent
effective on the date specified in such written notice. The removal of the Escrow Agent shall not
deprive the Escrow Agent of its compensation earned prior to such removal.

26. The Company shall provide to Escrow Agent any documentation and information reasonably
requested by the Escrow Agent for it to comply with the USA Patriot Act of 2001, as amended from
time to time.

27. If any state securities administrator requires the Company to cause the Escrow Agent to notify
such administrator when the Escrow Agent releases the funds in the Escrow Account to the Company,
the Company shall notify the Escrow Agent of such requirement, and provide the Escrow Agent with
the contact information for such administrator. The Escrow Agent agrees to notify such
administrator in writing when the Escrow Agent releases the funds in the Escrow Account to the
Company. The Escrow Agent agrees to permit state securities administrators to inspect the Escrow
Agent’s records related to the Escrow Account at any reasonable time at the location where the
records are located, and to copy any records that are inspected.

[Signature page follows]

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Agreed to
as of the 21st day of
November, 2011.

	 	 	 	 	 
	 	

COLE REAL ESTATE INCOME STRATEGY (DAILY NAV), INC. 

 	 
	 	By:  	/s/
Christopher H. Cole 	 
	 	 	Christopher H. Cole 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	COLE CAPITAL CORPORATION

 	 
	 	By:  	/s/
Marc T. Nemer
 	 
	 	 	Marc T. Nemer 	 
	 	 	President, Secretary and Treasurer 	 
	 

The terms and conditions contained above are hereby accepted and agreed to by:

UMB Bank, N.A. as Escrow Agent

	 	 	 	 	 
	 	 
	By:  	/s/
Lara L. Stevens 	 
	 	Name:  	Lara L.
Stevens	 
	 	Title:  	Vice
President	 

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EXHIBIT A

[Form of Notice to Pennsylvania Subscribers]

You have tendered a subscription to purchase
shares of common stock of Cole Real Estate Income
Strategy (Daily NAV), Inc. (the “Company”). Your subscription is currently being held in escrow. The guidelines
of the Pennsylvania Securities Commission do not permit the Company to accept subscriptions from
Pennsylvania residents until an aggregate of $200,000,000 of gross offering proceeds have been
received by the Company. The Pennsylvania guidelines provide that until this minimum amount of
offering proceeds is received by the Company, every 120 days during the offering period
Pennsylvania subscribers may request that their subscriptions be returned.

If you wish to continue your subscription in escrow until the Pennsylvania minimum
subscription amount is received, nothing further is required.

If you wish to terminate your subscription for the Company’s common stock and have your
subscription returned please so indicate below, sign, date, and return to the Escrow Agent, UMB
Bank, N.A.

I hereby terminate my prior subscription to purchase shares of
common stock of Cole Real Estate
Income Strategy (Daily NAV), Inc. and request the return of my subscription funds. I certify to Cole Real Estate
Income Strategy (Daily NAV), Inc. that I am a resident of Pennsylvania.

	 	 	 	 	 
	 	 	 
	 	Signature:  	

 	 
	 	 	Name:	 	 
	 	 	 	       (please print)	 
	 	 	Date: 	 	 
	 

	 	 	 

	Please send the subscription refund to:

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 

 

 

EXHIBIT B

PERMISSIBLE ESCROW INVESTMENTS

	(i)	 	Bank accounts;
	 
	(ii)	 	Bank money-market accounts;
	 
	(iii)	 	Short time certificates of deposit issued by a bank; and
	 
	(iv)	 	Short-term securities issued or guaranteed by the U.S. governmentexv10w1

Exhibit 10.1

FORM OF EXCHANGE AGREEMENT

     EXCHANGE
AGREEMENT (this “Agreement”), dated as of December 6, 2011, by and between
Galena Biopharma, Inc., a Delaware corporation, with offices located at 310 N. State Street, Suite
208, Lake Oswego, Oregon 97034 (the “Company”), and the investor that is a signatory to
this Agreement (the “Investor”).

     WHEREAS:

     A. The Company entered into that certain Underwriting Agreement, dated as of March 1, 2011
(the “March Underwriting Agreement”), and that certain Underwriting Agreement, dated as of
April 15, 2011 (the “April Underwriting Agreement”), pursuant to which, among other things,
the Company sold and issued (i) shares of the Company’s common stock, par value $0.0001 per share
(the “Common Stock”), and (ii) warrants (“Warrants”) to purchase shares of Common
Stock.

     B. The Investor currently holds one or more Warrants to purchase the number of shares of
Common Stock set forth opposite the Investor’s name on Schedule 1 attached hereto (the
“Investor Warrants”).

     C. The Company and the Investor desire to enter into this Agreement, pursuant to which, among
other things, the Investor shall surrender to the Company for cancellation the Investor Warrants in
exchange for the Company’s issuance to the Investor of one share of Common Stock for each 1.4285714
shares of Common Stock purchasable under the Investor Warrants (collectively, the “Exchange
Shares”).

     D. The Company may enter into agreements similar to this Agreement with one or more other
holders of Warrants, subject to the terms of this Agreement.

     E. The exchange of the Investor Warrants for the Exchange Shares is being made in reliance
upon the exemption from registration provided by Section 3(a)(9) of the Securities Act.

     F. Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings ascribed to them in the April Underwriting Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter
set forth, the Company and the Investor hereby agree as follows:

     1. EXCHANGE OF INVESTOR WARRANTS. Subject to satisfaction (or waiver) of the
conditions set forth in Sections 4 and 5 below, on the Closing Date (as defined below) the Investor
shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities Act, exchange the
Investor Warrants for the Exchange Shares. At the Closing (as defined below), the following
transactions shall occur (such transactions in this Section 1, the “Exchange”):

          (a) Delivery. In exchange for the Investor Warrants, the Company shall cause the
Transfer Agent for the Common Stock to credit the Exchange Shares to the Investor’s or its
designee’s balance account with the Depositary Trust Company (“DTC”) Fast Automated
Securities Transfer Program. The Investor shall deliver or cause to be delivered to the Company

1

 

(or its designee) the Investor Warrants as soon as commercially practicable following the date
hereof. Immediately following the Closing Date and the completion of the deposit of the Exchange
Shares with the Investor’s or its designee’s balance account with DTC, the Investor Warrants shall
be cancelled.

          (b) Other Documents. The Company and the Investor shall execute and/or deliver such
other documents and agreements as are customary and reasonably necessary to effectuate the
Exchange.

          (c) Closing. Notwithstanding anything to the contrary contained herein, the Closing
shall occur simultaneously with the execution of this Agreement by the parties hereto on the date
hereof (the “Closing Date”) and the Company shall be required to deliver the Exchange
Shares to the Investors through DTC no later than the date hereof.

          (d) Consideration. The Exchange Shares shall be issued to the Investor in exchange
for the Investor Warrants and without the payment of any additional consideration in accordance
with Section 3(a)(9) of the Securities Act.

     2. REPRESENTATIONS AND WARRANTIES

          (a) Investor Representations and Warranties. The Investor hereby represents and
warrants to the Company, as of the date hereof and as of the Closing Date, as follows:

          (b) Organization; Authority. The Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with the
requisite power and authority to enter into and to consummate the transactions contemplated by this
Agreement and carry out its obligations hereunder. The execution, delivery and performance by the
Investor of the transactions contemplated by this Agreement has been duly authorized by all
necessary action on the part of the Investor. This Agreement has been duly executed and delivered
by the Investor, and constitutes the valid and legally binding obligation of the Investor,
enforceable against it in accordance with its terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.

          (c) No Conflicts. The execution, delivery and performance by the Investor of this
Agreement and the consummation by the Investor of the transactions contemplated hereby will not (i)
result in a violation of the organizational documents of the Investor or (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Investor is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to the Investor, except in the case of clauses (ii) and (iii)
above, for such conflicts, defaults, rights or violations which would not, individually or in the
aggregate, reasonably be expected to have a material adverse effect on the ability of the Investor
to perform its obligations hereunder.

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          (d) Ownership of Investor Warrants. The Investor is the sole record and beneficial
owner of the Investor Warrants and will transfer and deliver to the Company at the Closing valid
title to the Investor Warrants, free from preemptive or similar rights, taxes, liens, charges and
other encumbrances.

          (e) Company Representations and Warranties. The Company represents and warrants to
the Investor, as of the date hereof and as of the Closing Date as follows:

          (f) Organization and Qualification. Each of the Company and its Subsidiaries is an
entity duly organized and validly existing and in good standing under the laws of the jurisdiction
in which it is formed, and has the requisite power and authorization to own its properties and to
carry on its business as now being conducted and as presently proposed to be conducted. Each of
the Company and its Subsidiaries is duly qualified as a foreign entity to do business and is in
good standing in every jurisdiction in which its ownership of property or the nature of the
business conducted by it makes such qualification necessary, except to the extent that the failure
to be so qualified or be in good standing would not have a Material Adverse Effect.

          (g) Authorization; Enforcement; Validity. The Company has the requisite corporate
power and authority to enter into and perform its obligations under this Agreement and to issue the
Exchange Shares in accordance with the terms hereof. The execution and delivery of this Agreement
by the Company and the consummation by the Company of the transactions contemplated hereby,
including, without limitation, the issuance of the Exchange Shares, have been duly authorized by
the Company’s board of directors and no further filing, consent or authorization is required by the
Company, its board of directors or its stockholders or other governing body. This Agreement has
been duly executed and delivered by the Company, and constitutes the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies and except as rights to
indemnification and to contribution may be limited by federal or state securities law.

          (h) Issuance of Securities. The issuance of the Exchange Shares is duly authorized
and upon issuance in accordance with the terms of this Agreement, the Exchange Shares will be
validly issued, fully paid and non-assessable and free from all preemptive or similar rights,
taxes, liens, charges and other encumbrances with respect to the issue thereof. The Exchange
Shares shall be issued without any restrictive legend and may be freely resold by the Investor
without any restrictions.

          (i) No Conflicts. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby (including,
without limitation, the issuance of the Exchange Shares) will not (i) result in a violation of the
Certificate of Incorporation (including, without limitation, any certificates of designation
contained therein) or other organizational documents of the Company or any of its Subsidiaries, any
capital stock of the Company, or Bylaws, (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or

3

 

give to others any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or
(iii) result in a violation of any law, rule, regulation, order, judgment or decree (including,
without limitation, federal and state securities laws and regulations and the rules and regulations
of the Principal market) applicable to the Company or any of its Subsidiaries or by which any
property or asset of the Company or any of its Subsidiaries is bound or affected except, in the
case of clause (ii) or (iii) above, to the extent such violations would not have a Material Adverse
Effect.

          (j) Consents. The Company is not required to obtain any consent from, authorization
or order of, or make any filing or registration with any court, Governmental Entity or any
regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or
perform any of its obligations under, or contemplated by, this Agreement in accordance with the
terms hereof. All consents, authorizations, orders, filings and registrations which the Company is
required to obtain at or prior to the Closing have been obtained or effected on or prior to the
Closing Date. Except as disclosed in the Company’s Current Report on Form 8-K filed with the
Commission on November 18, 2011, the Company is not in violation of the requirements of The Nasdaq
Stock Market (“Nasdaq”), and has no knowledge of any other facts or circumstances which
could reasonably be expected to lead to delisting or suspension of the Common Stock from trading
thereon in the foreseeable future.

          (k) Disclosure. The Company confirms that neither it nor any other Person acting on
its behalf has provided the Investor or its agents or counsel with any information that constitutes
or could reasonably be expected to constitute material, nonpublic information. The Company
understands and confirms that the Investor will rely on the foregoing representations in effecting
transactions in securities of the Company. No event or circumstance has occurred nor does any
information exist with respect to the Company or any of its Subsidiaries or its or their business,
properties, prospects, operations or financial conditions, that, under applicable law, rule or
regulation, requires public disclosure or announcement by the Company, except for such event,
circumstances or information that has been so publicly announced or disclosed.

          (l) No Commissions. No commission or other remuneration is paid or payable by the
Company directly or indirectly to any Person for effecting the transactions contemplated by this
Agreement.

          (m) Securities Law Exemptions. Assuming the accuracy of the representations and
warranties of the Investor contained herein, the offer and issuance by the Company of the Exchange
Shares is exempt from registration under the Securities Act. The offer and issuance of the
Exchanged Securities is exempt from registration under the Securities Act pursuant to the exemption
provided by Section 3(a)(9) thereof.

          (n) Transfer Taxes. On the Closing Date, all share transfer or other taxes (other
than income or similar taxes) which are required to be paid in connection with the issuance of the
Exchange Shares to be exchanged with the Investor hereunder will be, or will have been, fully paid
or provided for by the Company, and all laws imposing such taxes will be or will have been complied
with.

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          (o) Exchange Terms. None of the terms offered to any other holder of the Investor
Warrants relating to the exchange, amendment or early exercise thereof (any such event being a
“Warrant Exchange”) are more favorable to such person than those provided to the Investor
pursuant to the terms of this Agreement.” Further, the Company will not execute a warrant exchange
for 90 days on different terms.

          (p)
Reverse Stock Split. The Company agrees to a restriction on announcing or doing a
reverse stock split for at least 30 days.

          (q)
Financings. The Company agrees not to conduct a financing for at least 30 days.

     3. CERTAIN COVENANTS AND AGREEMENTS.

          (a) Reasonable Best Efforts. Each party shall use its reasonable best efforts timely
to satisfy each of the conditions to be satisfied by it as provided in Sections 4 and 5 of this
Agreement.

          (b) Form 8-K. On or before 9:30 a.m., New York time, on the date hereof, the Company
shall file a Current Report on Form 8-K describing all the material terms of the transactions
contemplated by this Amendment in the form required by the 1934 Act (the “8- K Filing”).
From and after the issuance of the 8-K Filing, the Company shall have disclosed all material,
non-public information (if any) delivered to the Investor by the Company or any of its
Subsidiaries, or any of their respective officers, directors, employees or agents in connection
with the transactions contemplated by the Agreements or otherwise. Without the prior written
consent of the Investor, neither the Company nor any of its Subsidiaries or affiliates shall
disclose the name of the Investor in any filing, announcement, release or otherwise, except to the
extent required by law, rule or regulation.”

          (c) [Intentionally Omitted]

          (d) Section 3(a)(9). The Company represents that the exchange of the Investor
Warrants for the Exchange Shares is being made in reliance upon the exemption from registration
provided by Section 3(a)(9) of the 1933 Act and agrees not to take any position contrary to this
Section 3(c). For the purposes of Rule 144, the Company acknowledges that the holding period of
the Exchange Shares may be tacked onto the holding period of the Investor Warrants and the Company
agrees not to take a position contrary to this Section 4(c). The Company agrees to issue so-called
“freely tradable” Exchange Shares without any restrictions on transfer and without any restrictive
legend.

          (e) Participation Right. The Company agrees that if, at any time or from time to time
during the one-year period following the date of this Agreement, the Company undertakes a
Subsequent Placement (as defined below), the Company shall offer the Investor the opportunity to
participate to the extent of the Investor’s Ratable Share (as defined below) of up to 30% of the
total offering amount of the Subsequent Placement on the same terms and conditions as the other
offerees in the Subsequent Placement. The Investor’s “Ratable Share” for this purpose means the
proportion that the number of the Exchange Shares bears to the total number of shares of Common
Stock issued by the Company pursuant to this Agreement and one

5

 

or more similar agreements, if any, in exchange for the Warrants (not to exceed an aggregate
of 12,275,416 shares of Common Stock, including the Exchange Shares).

          (f) For the purposes of this Section 3, the following definitions shall apply:

               (i) “Common Share Equivalents” means, collectively, Options and Convertible
Securities.

               (ii) “Common Stock” means (i) shares of common stock, $0.0001 par value per share, of
the Company and (ii) any capital stock into which such common stock shall have been changed or any
share capital resulting from a reclassification of such common stock.

               (iii) “Convertible Securities” means any stock or securities (other than Options)
convertible into or exercisable or exchangeable for Common Stock.

               (iv) “Excluded Securities” means the issuance of (a) shares of Common Stock or options
to employees, officers or directors of the Company or its subsidiaries pursuant to any stock or
option plan duly adopted for such purpose, by a majority of the non—employee members of the Board
of Directors of the Company or a majority of the members of a committee of non-employee directors
established for such purpose, (b) securities upon the exercise or exchange of or exchangeable for
or convertible into shares of Common Stock issued and outstanding on the date hereof, provided that
such securities have not been amended since date hereof to increase the number of such securities
or to decrease the exercise price, exchange price or conversion price of such securities, and (c)
securities issued pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company, provided that any such issuance shall only be a Person (or
to the equity holders of a Person) which is, itself or through its subsidiaries, an operating
company or an owner of an asset in a business synergistic with the business of the Company and
shall provide to the Company additional benefits in addition to the investment of funds, but shall
not, for the purposes of this clause (c), include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose primary business is
investing in securities.

               (v) “Options” means any rights, warrants or options to subscribe for or purchase
Common Stock or Convertible Securities.

               (vi) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization, any other entity and a government
or any department or agency thereof.

               (vii) “Subsequent Placement” means the offer, sale, grant of any option to purchase,
or other disposition of (or the announcement of any offer, sale, grant of any option to purchase or
other disposition of), by the Company, directly or indirectly, of any of the Company’s or its
subsidiaries’ (but not including its RXi Pharmaceuticals Corporation subsidiary) equity or equity
equivalent securities, including, without limitation, any debt, preferred stock or other instrument
or security that is, at any time during its life and under any circumstances, convertible into or
exchangeable or exercisable for Common Shares or Common Share Equivalents.

6

 

     4. CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER.

     The obligations of the Company to the Investor hereunder are subject to the satisfaction of
each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion by providing the Investor with
prior written notice thereof:

          (a) The Investor shall have duly executed this Agreement and delivered the same to the
Company.

          (b) The Investor shall have delivered to the Company the Investor Warrants.

          (c) The representations and warranties of the Investor shall be true and correct in all
respects as of the date when made and as of the Closing Date as though made at that time (except
for representations and warranties that speak as of a specific date which shall be true and correct
as of such specified date), and the Investor shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Investor at or prior to the Closing Date.

     5. CONDITIONS TO INVESTOR’S OBLIGATIONS HEREUNDER.

     The obligations of the Investor hereunder are subject to the satisfaction of each of the
following conditions, provided that these conditions are for the Investor’s sole benefit and may be
waived by the Investor at any time in its sole discretion by providing the Company with prior
written notice thereof:

          (a) The Company shall have duly executed this Agreement and delivered the same to the
Investor.

          (b) The Company shall have delivered irrevocable written instructions to the Transfer Agent
for the Common Stock to credit the Exchange Shares to the Investor or its designee’s balance
account through the DTC Fast Automated Transfer Program.

          (c) From the date hereof to the Closing Date, (i) trading in the Common Stock shall not have
been suspended by the Commission or Nasdaq, and (ii) trading in securities generally as reported by
Bloomberg L P shall not have been suspended or limited or threatened either (A) in writing by the
Commission or Nasdaq or (B) by falling below the minimum listing maintenance requirements of
Nasdaq, or minimum prices shall not have been established on securities whose trades are reported
by such service, or on Nasdaq, nor shall a banking moratorium have been declared either by the
United States or New York State authorities nor shall there have occurred any material outbreak or
escalation of hostilities or other national or international calamity of such magnitude in its
effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of the Investor, makes it impracticable or inadvisable to consummate the
transactions contemplated by this Agreement.

          (d) The Company shall have delivered to the Investor a certificate, in the form reasonably
acceptable to the Investor, executed by the Secretary of the Company and dated as of

7

 

the Closing Date, as to (i) the resolutions as adopted by the Company’s board of directors
approving the transactions contemplated hereby in a form reasonably acceptable to the Investor,
(ii) the Certificate of Incorporation and (iii) the Bylaws of the Company, each as in effect at the
Closing.

          (e) The representations and warranties of the Company shall be true and correct as of the date
when made and as of the Closing Date as though made at that time (except for representations and
warranties that were made as of a specific date, which shall be true and correct as of such
specific date) and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Company at or prior to the Closing Date. The Investor shall have
received a certificate, executed by the Chief Executive Officer of the Company, dated as of the
Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested
by the Investor in the form reasonably acceptable to the Investor.

          (f) The Company shall have obtained all governmental, regulatory or third party consents and
approvals, if any, necessary for the issuance of the Exchange Shares.

          (g) There shall have been no Material Adverse Effect with respect to the Company since the
date hereof.

          (h) The Company shall have delivered to the Investor such other documents relating to the
transactions contemplated by this Agreement as the Investor or its counsel may reasonably request.

     6. TERMINATION.

     In the event that the Closing does not occur on or before five (5) business days from the date
hereof due to the Company’s or the Investor’s failure to satisfy the conditions set forth in
Sections 4 and 5 hereof (and the other party’s failure to waive such unsatisfied conditions(s)),
either party shall have the option to terminate this Agreement at the close of business on such
date without liability to the other party. Upon such termination, the terms hereof shall be null
and void and the parties shall continue to comply with all terms and conditions of the Investor
Warrants, as in effect prior to the execution of this Agreement. Notwithstanding the foregoing,
nothing contained herein shall relieve any party from liability for willful breach of its
representations, warranties, covenants or agreements contained in this Agreement.

     7. MISCELLANEOUS.

          (a) Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a
facsimile signature.

          (b) Headings. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.

8

 

          (c) Severability. If any provision of this Agreement is prohibited by law or
otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the
provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to
apply to the broadest extent that it would be valid and enforceable, and the invalidity or
unenforceability of such provision shall not affect the validity of the remaining provisions of
this Agreement so long as this Agreement as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially
impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable
provision(s) with a valid provision(s), the effect of which comes as close as possible to that of
the prohibited, invalid or unenforceable provision(s).

          (d) Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, 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. 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 WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

          (e) No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

          (f) Further Assurances. 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.

9

 

          (g) No Strict Construction. 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.

          (h) Entire Agreement; Effect on Prior Agreements; Amendments. This Agreement
supersedes all other prior oral or written agreements between the Investor, the Company, their
affiliates and Persons acting on their behalf with respect to the matters discussed herein, and
this Agreement and the instruments referenced herein contain the entire understanding of the
parties with respect to the matters covered herein and therein and, except as specifically set
forth herein or therein, neither the Company nor the Investor makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this Agreement may be
amended other than by an instrument in writing signed by the Company and the Investor. No
provision hereof may be waived other than by an instrument in writing signed by the party against
whom enforcement is sought.

          (i) Notices. 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 (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

               If to the Company:

Galena Biopharma, Inc.

310 N. State Street, Suite 208

Lake Oswego, Oregon 97034

Telephone: (855) 855-4052

Facsimile: (855) 855-7422

Attention: Mark J. Ahn, Ph.D.

               If to the Investor, to its address and
facsimile number set forth on Schedule 1
attached hereto .

or to 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 five (5) 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 containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iii) above, respectively.

          (j) Effective Date; Successors and Assigns. This Agreement shall be effective upon
its acceptance by the Company as evidenced by the Company’s execution and

10

 

delivery to the Investor of this Agreement. This Agreement shall binding upon and inure to
the benefit of the parties and their respective successors and assigns.

          (k) Survival. Unless this Agreement is terminated under Section 8, the
representations and warranties of the Company and the Investor contained herein and the agreements
and covenants set forth herein shall survive the Closing and the delivery and exercise of the
Exchange Shares, as applicable.

[Signature Pages Follow]

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          IN WITNESS WHEREOF, the Company has caused this Exchange Agreement to be duly executed as of
the date first written above.

	 	 	 	 	 
	 	COMPANY

 
 	 
	 	
GALENA BIOPHARMA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Mark J. Ahn, Ph.D. 	 
	 	 	Title:  	President and Chief
Executive Officer 	 

12

 

	 	 	 	 	 

     IN WITNESS WHEREOF, the Investor has caused this Exchange Agreement to be duly executed as of
the date first written above.

	 	 	 

	Name
of Investor:

	 	 
	 
	Number
of Warrant Shares:

	 	 

	 	 	 

	Name of Authorized Signatory:

	 	 
	 

	 	 

	 	 	 

	Name of Authorized Person:

	 	 
	 

	 	 

	 	 	 

	Signature of Authorized Person:

	 	 
	 

	 	 

13

 

SCHEDULE 1

	 	 	 

	Address of Investor

	 	Date, Warrant No., if any, and Total Number of Shares
of Common Stock Purchasable Under the Investor
Warrants
	 

	 	 

	 	 	 	 

	Telephone:

	 	 	 
	 

	 	 	 
	Facsimile:

	 	 	 
	 

	 	 	 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]