Document:

Financial Advisory Agreement, as amended

 Exhibit 10.2 
 Taglich Brothers, Inc. 
 Member: NASD, SIPC 
 November 6, 2007 
 Daniel O. Wilds 
 President and CEO 
 SCOLR Pharma, Inc. 
 3625 132nd Ave. SE,
Suite 400 
 Bellevue, WA 98006 
 Dear Dan: 
 This is to confirm the agreement (this “Agreement”) between Taglich Brothers, Inc. (“Taglich Brothers”) and SCOLR Pharma, Inc. (the
“Company”) as follows: 
 1. Financial Advisor. The Company has engaged Taglich Brothers to act as its financial advisor in
connection with a proposed sale of securities registered pursuant to the Company’s currently effective shelf registration statement on terms acceptable to the Company (“the Offering”). In this capacity, Taglich Brothers will provide
the Company financial advice and assistance in connection with the Offering as requested by the Company, which may include assisting the Company in analyzing its business, operations and prospects as well as conditions in the financial markets.
Taglich Brothers is aware the Company has engaged ThinkEquity Partners LLC (“ThinkEquity”) to act as sole placement agent in connection with the Offering. Taglich Brothers will deliver to the Company and ThinkEquity a list of potential
investors in the Offering. Unless otherwise requested by the Company or ThinkEquity, all initial contacts with prospective investors shall be made by ThinkEquity. Taglich Brothers will not contact any potential investor without the advance written
consent of the Company. Both the Company and Taglich Brothers acknowledge that Taglich Brothers is not party to any agreement or engagement between the Company and ThinkEquity. Under certain circumstances described in the Company’s engagement
letter with ThinkEquity, the Company may request Taglich Brothers to enter into an agreement to act as a co-agent in the Offering. This letter shall not constitute an offer, agreement or commitment to lend, provide financing, or buy or place
securities by Taglich Brothers or its affiliates. 
 2. Fees and Expenses. Taglich Brothers compensation for the services outlined in
this Agreement is dependent upon the outcome of the assignment. If the Offering is completed, the Company agrees to pay Taglich Brothers a transaction fee of $250,000 (the “Transaction Fee”). The Transaction Fee will be due and payable in
cash on the closing date of the Offering. The Transaction Fee shall constitute the only fees or expenses due and payable by the Company. 
 3. Expiration of Engagement. The engagement of Taglich Brothers as financial advisor under Section 1 shall expire on the earlier of the closing of the Offering or termination of Company’s engagement of ThinkEquity as
placement agent in connection with the Offering. The indemnity provisions, the waiver of the right to trial by jury provision and the confidentiality and non-disclosure provisions of this Agreement will remain in effect and shall survive termination
of this Agreement. 
 The Chrysler Building, 405 Lexington Avenue, 51st Floor, New York, New York 10174 
 (800) 456-1220 · (212) 661-6886 · (212) 661-6824 (Fax) 
 www.taglich.com 

 4. Company Information. The Company recognizes and confirms that, in performing the services
contemplated in this Agreement, Taglich Brothers will be relying on information furnished by the Company, as well as information available from generally recognized public sources. Such information will not be independently verified by Taglich
Brothers. The Company will cooperate fully with Taglich Brothers in connection with the services contemplated in this letter agreement, and represents that all such information provided by the Company will be complete and accurate in all material
respects and, as of the date such information is provided to Taglich Brothers, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the
circumstances under which they were made. All non-public information concerning the Company and its business that the Company discloses to Taglich Brothers will be used by Taglich Brothers solely in the performance of its services hereunder and will
be treated confidentially by Taglich Brothers for so long as it remains non-public. Except as otherwise required by law, regulation or legal process, Taglich Brothers will not disclose any non-public information concerning the Company to a third
party without the Company’s prior written consent. Taglich Brothers is aware of the restrictions imposed by the United States federal securities laws and other applicable foreign and domestic laws on a person in possession material non-public
information about a public company and Taglich Brothers will comply with such laws. 
 5. Matters Relating to Engagement. In rendering
services under this Agreement, Taglich Brothers shall act as an independent contractor, and any duties of Taglich Brothers arising out of its engagement hereunder shall be owed solely to the Company. 
 The scope of Taglich Brothers’ engagement shall be limited to those matters expressly set out in this Agreement. For the sake of clarity, the scope
of Taglich Brothers engagement shall not include giving legal, tax, accounting or regulatory matters in any jurisdiction, as to which the Company agrees to consult with its own advisors concerning such matters and shall be responsible for making its
own independent investigation and appraisal of the transactions contemplated hereby. 
 6. Indemnification by the Company. The Company
agrees to indemnify and hold harmless Taglich Brothers, its officers, directors and agents from and against any and all loss, liability, claim, damage and expense arising out of (1) a breach or alleged breach by the Company of any warranty or
obligations set forth in its engagement of ThinkEquity, or (2) any untrue statement or alleged untrue statement of a material fact made in connection with the Offering or the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 7. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflicts of laws principles thereof. The Company and Taglich Brothers irrevocably agree to waive trial by
jury in any action, proceeding, claim or counterclaim brought by or on behalf of either party related to or arising out of this letter agreement or the performance of services hereunder. 
 8. Miscellaneous. This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral
statements and prior writings with respect thereto. This Agreement may not be amended or modified except by a writing executed by each of the parties hereto. Section headings herein are for convenience only and are not a part of this Agreement. This
Agreement is solely for the benefit of the Company and Taglich Brothers, and no other person (except for indemnified persons 

  

 2 

 
to the extent set forth in Section 6.) shall acquire or have any rights under or by virtue of this Agreement. This Agreement may not be assigned
by either party hereto without the other party’s prior written consent. 
 This Agreement may be executed in counterparts, each of which
will be deemed an original, but all of which taken together will constitute one and the same instrument. 
 If the foregoing correctly sets
forth our understanding, please so indicate by executing this letter, together with the enclosed duplicate originals. 
  

			
	Very truly yours,
	
	Taglich Brothers, Inc.
		
	By:	 	 /s/ Robert C. Schroeder

	Name:	 	Robert C. Schroeder
	Title:	 	Vice President

  

			
	ACCEPTED AND AGREED TO AS OF THE ABOVE DATE:
	
	SCOLR Pharma, Inc.
		
	By:	 	 /s/ Daniel O. Wilds

	Name:	 	Daniel O. Wilds
	Title:	 	President and CEO

  

 3 

			
	

	  	 3625 132nd Avenue SE,
Suite 400, Bellevue, Washington 98006
 Phone: (425) 373-0171 Fax: (425) 373-0181
 www.scolr.com

 November 29, 2007 
 Robert C. Schroeder 
 Taglich Brothers, Inc. 
 THE
CHRYSLER BUILDING 
 405 Lexington Avenue, 51st Floor 
 New York,
New York 10174 
 Dear Rob: 
 This will confirm
our agreement to reduce the financial advisory fee payable to Taglich Brothers, Inc. pursuant to our letter agreement dated November 6, 2007, to $112,509 from $250,000. Except for the modification in the total fee amount, the letter agreement
shall continue in full force and effect. 
  

	
	With appreciation,
	
	 /s/ Daniel O. Wilds

	Daniel O. Wilds
	President and Chief Executive Officer
	SCOLR Pharma, Inc.

  

	
	ACKNOWLEDGED, ACCEPTED AND AGREED:
	
	 /s/ Robert C. Schroeder

	Robert C. Schroeder, Taglich Brothers, Inc.Form of Subscription Agreement

 Exhibit 10.3 
 FORM OF SUBSCRIPTION AGREEMENT 
 This subscription (this “Subscription
Agreement”) is dated November 29, 2007, by and between the investor identified on the signature page hereto (the “Investor”) and SCOLR Pharma, Inc., a Delaware corporation (the “Company”), whereby the
parties agree as follows: 
 1. Subscription. 
 (a) Investor agrees to buy and the Company agrees to sell and issue to Investor (i) such number of shares of common stock, par value $0.001 per share (the “Common Stock”), of the Company, set
forth on the signature page hereto (the “Shares”), and (ii) warrants to purchase such number of shares of Common Stock set forth on the signature page hereto (the “Warrants” and, together with the Shares, the
“Securities”) for an aggregate purchase price set forth on the signature page hereto (the “Purchase Price”). 
 (b) The Securities have been registered on a Registration Statement on Form S-3, Registration No. 333- 129275, which registration statement (together with any registration statement filed by the Company pursuant to Rule 462(b) under
the Securities Act, the “Registration Statement”) has been declared effective by the Securities and Exchange Commission, has remained effective since such date and is effective on the date hereof. 
 (c) NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS SUBSCRIPTION AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL REMIT
BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE SECURITIES BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING ACCOUNT DESIGNATED BY THE COMPANY AND THE PLACEMENT AGENT ENGAGED BY THE COMPANY IN CONNECTION WITH THE
SALE AND ISSUANCE OF THE SECURITIES (THE “PLACEMENT AGENT”) PURSUANT TO THE TERMS OF THAT CERTAIN ESCROW AGREEMENT (THE “ESCROW AGREEMENT”) DATED AS OF THE DATE HEREOF, BY AND AMONG THE COMPANY, THE PLACEMENT AGENT AND HELLER
EHRMAN LLP (THE “ESCROW AGENT”): 
 Citibank, N.A. 
 ABA # 021000089 
 Account No.: 49203159 
 Account Name: Heller Ehrman LLP (Attorney Trust Account) 
 Reference: ThinkEquity / SCOLR Pharma #43456-0003 
 Bank Contact: Donna Squires-Hernandez or Alice
O’Grady 
 For international wires, include the following information: 
 666 Fifth Avenue 
 New York, New York 10103

 Swift code is “CITIUS33” 
 Such funds shall be held in escrow until the Closing Date (as defined below) and delivered by the Escrow Agent on behalf of the Investor to the Company unless (i) the agreement between the Company and the Placement Agent (the
“Placement Agreement”) is terminated pursuant to the terms thereof or (ii) the conditions to closing in the Placement Agreement have not been satisfied or waived by the Closing Date. The Investor’s obligations are expressly not
conditioned on the purchase by any or all other investors of the Securities that they have agreed to purchase from the Company. The Placement Agent shall have no rights in or to any of the escrowed funds, unless the Placement Agent and the Escrow
Agent are notified in writing by the Company in connection with the closing that a portion of the escrowed funds shall be applied to the Placement Agent’s fees. 

 (d) NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS SUBSCRIPTION AGREEMENT BY THE
INVESTOR AND THE COMPANY, THE INVESTOR SHALL DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”) INSTRUCTING THE TRANSFER AGENT TO
CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE SHARES ON THE CLOSING DATE. 
 (e) On the third or fourth business day after the date of this
Subscription Agreement (the “Closing Date”), if the Placement Agreement has not been terminated pursuant to the terms thereof and the conditions to closing in the Placement Agreement have been satisfied or waived, then the Company
(i) shall cause its transfer agent to deliver to Investor the Shares via the Depository Trust Company’s (“DTC”) Deposit or Withdrawal at Custodian system and (ii) shall deliver to Investor the Warrants via the
instructions set forth on the signature page hereto, such Shares and Warrants to be registered in such name or names as designated by the Investor on the signature page hereto. The Shares and Warrants shall be unlegended and free of any resale
restrictions unless issued to an affiliate of the Company. 
 2. Company Representations and Warranties. The Company represents and
warrants that: (a) it has full right, power and authority to enter into this Subscription Agreement and to perform all of its obligations hereunder; (b) this Subscription Agreement has been duly authorized and executed by and constitutes a
valid and binding agreement of the Company enforceable in accordance with its terms; (c) the execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereby do not conflict with or result in a
breach of (i) the Company’s Certificate of Incorporation or Bylaws, or (ii) any material agreement to which the Company is a party or by which any of its property or assets is bound; (d) the Shares have been duly authorized for
sale and issuance and, when issued and delivered by the Company against payment therefor pursuant to this Subscription Agreement, will be validly issued, fully paid and nonassessable, the Warrants have been duly and validly authorized by the Company
and, upon delivery to the Investor at the Closing Date, will be valid and binding obligations of the Company, enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the rights and remedies of creditors generally or subject to general principles of equity, the shares of Common Stock initially issuable upon exercise of the Warrants have been duly authorized and reserved for
sale and issuance and, when issued and delivered by the Company against payment therefor in accordance with the terms thereof, will be validly issued, fully paid and nonassessable; (e) the Registration Statement and any post-effective amendment
thereto, at the time it became effective, did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; (f) the prospectus
contained in the Registration Statement, as amended or supplemented (including by disclosure delivered to the Investor no later than the date hereof), did not contain as of the effective date thereof, and as of the date hereof does not contain, any
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (g) all preemptive rights or rights of
first refusal held by stockholders of the Company and applicable to the transactions contemplated hereby have been duly satisfied or waived in accordance with the terms of the agreements between the Company and such stockholders conferring such
rights. 
 3. Investor Representations, Warranties and Acknowledgments. The Investor represents and warrants to, and covenants with,
the Company that the Investor: (A) is an “accredited investor” (as such term is defined in Section 501(a) of the Securities Act); (B) has such knowledge, sophistication and experience in financial and business matters and,
in particular, in investments in entities such as the 

 
Company, that such Investor is capable of adequately evaluating the merits and risks of an investment in the Securities and the Investor has concluded that
it is capable of bearing all of those risks; (C) is capable of bearing a loss of the entire amount of such Investor’s purchase of the Securities, based on the Investor’s net worth, annual income and liquid assets; (D) is suitable
to make an investment in the amount of Securities such Investor plans to purchase, based on such Investor’s net worth, annual income and liquid assets, and based on such Investor’s past experience investing in comparable high risk, early
stage biotechnology or specialty pharmaceutical companies that have weak cash positions; (E) has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Securities; and
(F) in connection with its decision to purchase the number of Securities set forth on the Signature Page, relied only upon any or all of the following: the Registration Statement, the Base Prospectus, the Prospectus Supplement, the
Company’s regular reports on Forms 10-K, 10-Q and 8-K as filed by the Company with the Commission, the Disclosure Package (as defined in the Placement Agreement) and the Final Term Sheet (as defined in the Placement Agreement) provided to the
Investor and the representations and warranties of the Company contained herein, and did not rely on any other representations, warranties or statements of the Company or the Placement Agent. 
 The Investor acknowledges, represents and agrees that no action has been or will be taken in any jurisdiction outside the United States by the Company or
the Placement Agent that would permit an offering of the Securities, or possession or distribution of offering materials in connection with the issue of the Securities in any jurisdiction outside the United States where action for that purpose is
required. Each Investor outside the United States will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Securities or has in its possession or distributes any offering
material, in all cases at its own expense. The Placement Agent is not authorized to make and has not made any representation or use of any information in connection with the issue, placement, purchase and sale of the Securities, except as set forth
or incorporated by reference in the Registration Statement, the Base Prospectus, the Prospectus Supplement or the Disclosure Package (as defined in the Placement Agreement). 
 The Investor understands that nothing in this Agreement or any other materials presented to the Investor in connection with the purchase and sale of the
Securities constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities. 

The Investor represents, warrants and agrees that, since the earlier to occur of (i) the date on which the Placement Agent first contacted the
Investor about the Offering and (ii) the date that is the tenth (10th) trading day prior to the date of this Agreement, it has not engaged in any short selling of the Company’s securities, or established or increased any “put
equivalent position” as defined in Rule 16(a)-1(h) under the Securities Exchange Act of 1934, as amended, with respect to the Company’s securities. 
 The Investor represents and warrants that: (a) it has full right, power and authority to enter into this Subscription Agreement and to perform all of its obligations hereunder; (b) this Subscription Agreement has been duly
authorized and executed by the Investor and constitutes a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms; (c) the execution and delivery of this Subscription Agreement and the
consummation of the transactions contemplated hereby do not conflict with or result in a breach of (i) the Investor’s certificate of incorporation or by-laws (or other governing documents), or (ii) any material agreement or any law or
regulation to which the Investor is a party or by which any of its property or assets is bound; and (d) prior to the execution hereof, Investor has received in portable document format, or has otherwise had access to, (i) the
Company’s base prospectus dated October 27, 2005, (ii) the Company’s preliminary prospectus supplement thereto dated November 28, 2007, and (iii) information as to the total number of Shares and Warrants to be sold in
the offering, the 

 
offering price per unit of Share and Warrant, the aggregate placement agency fees, and the estimated net proceeds to the Company. 
 4. Miscellaneous. 
 (a) This
Subscription Agreement constitutes the entire understanding and agreement between the parties with respect to its subject matter, and there are no agreements or understandings with respect to the subject matter hereof which are not contained in this
Subscription Agreement. This Subscription Agreement may be modified only in writing signed by the parties hereto. 
 (b) This Subscription
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto,
it being understood that all parties need not sign the same counterpart. Execution may be made by delivery by facsimile. 
 (c) The
provisions of this Subscription Agreement are severable and, in the event that any court or officials of any regulatory agency of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in
this Subscription Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Subscription
Agreement and this Subscription Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible, so long as such construction does not materially adversely affect the economic rights of either party hereto. 
 (d) All communications hereunder, except as may be otherwise specifically provided herein, shall be in writing and shall be mailed, hand delivered, sent by a recognized overnight courier service such as Federal
Express, or sent via facsimile and confirmed by letter, to the party to whom it is addressed at the following addresses or such other address as such party may advise the other in writing: 
 To the Company: as set forth on the signature page hereto. 
 To the Investor: as set forth on the signature page hereto. 
 All notices hereunder shall be effective upon
receipt by the party to which it is addressed. 
 (e) This Subscription Agreement shall be governed by and interpreted in accordance with the
laws of the State of New York for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. To the extent determined by such court, the prevailing party shall reimburse the
other party for any reasonable legal fees and disbursements incurred in enforcement of, or protection of, any of its rights under this Subscription Agreement. 

 If the foregoing correctly sets forth our agreement, please confirm this by signing and returning to us
the duplicate copy of this Subscription Agreement. 
 Number of Shares: ______________________ 
 Number of Warrants: ____________________ 
 (such number of Warrants to be equal to 50% of the number of Shares being purchased by the Investor) 
 Purchase Price Per Unit:
$1.50 
 Aggregate Purchase Price: $______________ 
 Address for Notice and Delivery of the Warrants: 
 _____________________________________ 
 _____________________________________ 
 _____________________________________ 
  

			
	SCOLR PHARMA, INC
		
	By:	 	  

		 	Name:
		 	Title:
	
	Address for Notice
	3625 132nd Avenue SE
	Bellevue, WA 98006
	Facsimile: 425-373-0181
	Attention: General Counsel

  

			
	INVESTOR:	 	  

		
	By:	 	  

	Name:	 	
	Title:	 	

			
	
	Address for Notice:
	
	  

	
	  

		
	Facsimile:	 	  

		
	Attention:	 	  

 DWAC Instructions for Delivery of the Shares: 
  

			
		
	 Name of DTC Participant:
	 	  

		
	 DTC Participant Number:
	 	  

  

			
	Account Number:	 	  

 NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS SUBSCRIPTION AGREEMENT BY THE
INVESTOR AND THE COMPANY, THE INVESTOR SHALL DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”) INSTRUCTING THE TRANSFER AGENT TO
CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE SHARES ON THE CLOSING DATE. 
 NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS
SUBSCRIPTION AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE SECURITIES BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING ACCOUNT: 
 Citibank, N.A. 
 ABA # 021000089 

Account No.: 49203159 
 Account Name:
Heller Ehrman LLP (Attorney Trust Account) 
 Reference: ThinkEquity / SCOLR Pharma #43456-0003 
 Bank Contact: Donna Squires-Hernandez or Alice O’Grady

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