Exhibit 10.1


 


EXECUTIVE EMPLOYMENT AGREEMENT


 


 


THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) dated September 28, 2016 by and between Lion Biotechnologies, Inc., a Nevada corporation
(the “Company”), and Gregory Schiffman (“Executive”) (either party individually, a “Party”;
collectively, the “Parties”).


 


WHEREAS, the Company
desires to retain the services of Executive to serve as the Company’s Chief Financial Officer;


 


WHEREAS, the Parties
desire to enter into this Agreement to set forth the terms and conditions of Executive’s employment by the Company and to
address certain matters related to Executive’s employment with the Company; and


 


WHEREAS, both the Company
and the Executive have read and understood the terms and provisions set forth in this Agreement, and Executive acknowledges Executive
has been afforded a reasonable opportunity to review this Agreement with Executive’s legal counsel to the extent desired;


 


NOW, THEREFORE,
in consideration of the foregoing and the mutual provisions contained herein, and for other good and valuable consideration, the
Parties hereto agree as follows:


 


1.       Employment.
Effective October 3, 2016 (the “Effective Date”), the Company hereby employs Executive, and Executive hereby accepts
such employment, upon the terms and conditions set forth herein.


 


2.       Duties.


 


2.1       Position.
Executive shall be employed by the Company in the position of Chief Financial Officer, and shall have the duties and responsibilities
consistent with the position of Chief Financial Officer. Executive shall report to the Company’s Chief Executive Officer.
Executive shall perform faithfully and diligently such duties as are reasonable and customary for Executive’s position, as
well as such other duties as the Chief Executive Officer shall reasonably assign from time to time. Executive shall provide his
services hereunder from the Company’s executive offices in California, except for travel from time to time as reasonably
required in connection with Executive’s employment duties.


 


2.2       Best
Efforts/Full-Time.


 


2.2(a) Executive understands
and agrees that Executive will faithfully devote Executive’s best efforts and substantially all of his time during normal
business hours to advance the interests of the Company. Executive will abide by all policies duly adopted by the Company, as well
as all applicable federal, state and local laws, regulations or ordinances. Executive will act in a manner that Executive reasonably
believes to be in the best interest of the Company at all times. Executive further understands and agrees that Executive has a
fiduciary duty of loyalty to the Company to the extent provided by applicable law and that Executive will take no action which
materially harms the business, business interests, or reputation of the Company.


 






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2.2(b) Executive agrees
that Executive will not directly engage in competition with the Company at any time during the existence of the employment relationship
between the Company and Executive.


 


2.2(c) Executive agrees
that, during the term of this Agreement, Executive shall work exclusively for the Company. Consequently, Executive agrees to not
engage in any other employment, consulting or other business activity without the written consent of the Company.


 


3.       At-Will
Employment. Executive’s employment with the Company will be “at- will” and will not be for any specific period
of time. As a result, Executive is free to resign at any time, for any or no reason, as Executive deems appropriate. The Company
will have a similar right and may terminate Executive’s employment at any time, with or without cause. Executive’s
and the Company’s respective rights and obligations at the time of termination are outlined below in Section 6 of this Agreement.


 


4.       Compensation.


 


4.1       Base
Salary and Sign-On Bonus. As compensation for the performance of all duties to be performed by Executive hereunder, the Company
shall pay to Executive a base salary of $450,000 per year, less required deductions for state and federal withholding tax, social
security and all other employment taxes and authorized payroll deductions, payable on a prorated basis as it is earned, in accordance
with the normal payroll practices of the Company (the “Base Salary”). As a sign-on bonus, Executive will be
paid $40,000 (subject to payroll taxes) with the first paycheck.


 


4.2       Stock
Options. Executive shall receive stock options to purchase an aggregate of 300,000 shares of the Company’s common stock.
To the extent legally permitted, the stock options shall be incentive stock options. The stock options will be granted, and will
have an exercise price equal to the fair market value of the common stock at the first Board of Directors meeting following the
Effective Date. Provided that Executive is still employed with the Company on the following dates, the foregoing stock options
will vest in three installments as follows: (i) Options for the purchase of 100,000 shares shall vest on the one year anniversary
of the Effective Date; and (ii) the remaining stock options shall vest as to 25,000 shares at the end of each quarter over the
next two years, commencing with the first quarter following the first anniversary of the Effective Date. Upon the termination of
Executive’s employment with the Company, except as provided herein, the unvested options will be forfeited and returned to
the Company. In addition to the foregoing grant of options, Executive shall also be entitled to receive stock option grants under
the Company’s stock option plan commencing one year after the Effective Date in such amounts and upon such terms as shall
be determined by the Board of Directors, in its sole discretion.


 


4.3       Incentive
Compensation. Executive will be eligible to participate in the Company’s annual incentive compensation program (“Incentive
Plan”) applicable to executive employees, as approved by the Board (the year for which the Incentive Plan is implemented,
the “Plan Year”). The target potential amount payable to Executive under his Incentive Plan, if earned, shall
be 40% of Executive’s Base Salary earned during the applicable calendar year. Compensation under the Incentive Plan (“Incentive
Compensation”) will be conditioned on the satisfaction of individual and company objectives, as established in writing
by the Company, and the condition that Executive is employed by Company on the Incentive Compensation payment date, which shall
be on or before March 15th of the year following the Plan Year. The payment of any Incentive Compensation pursuant to this Section
4.3 shall be made in accordance with the normal payroll practices of the Company, less required deductions for state and federal
withholding tax, social security and all other employment taxes and authorized payroll deductions.


 






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4.4       Performance
Review. The Company may periodically review Executive’s performance on no less than an annual basis and may increase
(but not decrease) Executive’s salary or other compensation, as it deems appropriate in its sole and absolute discretion.


 


4.5       Customary
Fringe Benefits. Executive understands and agrees that certain employee benefits may be provided to the Executive by the Company
incident to the Executive's employment. Executive will be eligible for all customary and usual fringe benefits generally available
to executive employees and all other employees of the Company subject to the terms and conditions of the Company’s benefit
plan documents. Executive understands and agrees that any employee benefits provided to the Executive by the Company incident to
the Executive's employment (other than Base Salary, Incentive Compensation and any applicable Severance Payment) are provided solely
at the discretion of the Company and may be modified, suspended or revoked at any time, without notice or the consent of the Executive,
unless otherwise provided by law. Moreover, to the extent that these benefits are provided pursuant to policies or plan documents
adopted by the Company, Executive acknowledges and agrees that these benefits shall be governed by the applicable employment policies
or plan documents. The benefits to be provided to Executive shall include group health insurances and participation in a 401(k)
plan. Executive will be eligible to receive paid time off benefits in the form of vacation, sick and holidays.


 


4.6       Business
Expenses. Executive will be reimbursed for all reasonable, out- of-pocket business expenses incurred in the performance of
Executive’s duties on behalf of the Company, including travel-related expenses. To obtain reimbursement, expenses must be
submitted promptly with appropriate supporting documentation in accordance with the Company’s policies.


 


5.       Confidentiality
and Proprietary Agreement. Executive agrees to abide by the Company’s Employee Proprietary Information and Inventions
Agreement (the “Non-Disclosure Agreement”), which Executive has signed and is incorporated herein by reference.


 


6.       Termination
of Executive’s Employment.


 


6.1       Termination
for Cause by the Company. The Company may terminate Executive’s employment immediately at any time and without notice
for “Cause.” For purposes of this Agreement, “Cause” shall mean (i) a material breach by Executive of this
Agreement or the Non-Disclosure Agreement; (ii) the death of Executive or his disability resulting in his inability to perform
his reasonable duties assigned hereunder for a period of 180 days; (iii) Executive’s theft, dishonesty, or falsification
of any Company documents or records; (iv) Executive’s improper use or disclosure of the Company’s confidential or proprietary
information; or (v) Executive’s conviction (including any plea of guilty or nolo contendere) of any criminal act which impairs
Executive’s ability to perform his duties hereunder or which in the Board’s judgment may materially damage the business
or reputation of the Company; provided, however, that prior to termination for cause arising under clause (i), Executive shall
have a period of ten days after written notice from the Company to cure the event or grounds constituting such cause. Any notice
of termination provided by Company to Executive under this Section 6.1 shall identify the events or conduct constituting the grounds
for termination with sufficient specificity so as to enable Executive to take steps to cure, if curable, the same if such default
is a material breach by Executive of this Agreement of the Non-Disclosure Agreement. In the event Executive’s employment
is terminated in accordance with this subsection 6.1, Executive shall be entitled to receive only the Base Salary. All other obligations
of the Company to Executive pursuant to this Agreement will be automatically terminated and completely extinguished.


 






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6.2       Termination
Without Cause By The Company/Separation Package. The Company may terminate Executive’s employment under this Agreement
without Cause (as defined in Section 6.1 above) at any time on thirty (30) days’ advance written notice to Executive. In
the event of such termination, Executive will receive (i) Executive’s Base Salary through the date of termination, and (ii)
a portion, prorated through the date of termination, of any Incentive Compensation that would have been payable to Executive under
Section 4.3 if Executive had remained employed with the Company through March 15 of the year following the Plan Year in which Executive’s
employment was terminated. In order to establish the amount of Incentive Compensation payable to Executive, the Company shall,
in good faith, estimate which of the individual and company objectives Executive would likely have satisfied had Executive remained
in the employ of the Company during the Plan Year. Upon such termination without Cause, any then unvested stock options granted
to Executive by the Company will become fully vested and Executive shall have six months from the date of termination within which
to exercise his vested options. In addition, upon a termination of Executive’s employment by the Company without Cause, Executive
will be eligible to receive a “Severance Payment” equivalent to six months of Executive’s then Base Salary,
payable in full within thirty (30) days after termination, provided that Executive first satisfies the Severance Conditions. For
purposes of this Agreement, the “Severance Conditions” are defined as (1) Executive’s execution and non-
revocation of a full general release, in the form attached hereto as Exhibit A, and such release has become effective in accordance
with its terms prior to the 30th day following the termination date; and (2) Executive’s reaffirmation of Executive’s
commitment to comply, and actual compliance, with all surviving provisions of this Agreement. Following payment of the Severance
Payment, Base Salary, any Incentive Compensation and any benefits required to be paid in accordance with applicable benefit plans
through the date of termination, all other obligations of the Company to Executive pursuant to this Agreement will be automatically
terminated and completely extinguished.


 


6.3       Resignation;
Termination for Good Reason. Executive shall have the right to terminate this Agreement at any time, for any reason, by providing
the Company with thirty (30) days written notice, provided, however, that subsequent to Executive’s resignation, Executive
shall be required to comply with all surviving provisions of this Agreement. Executive will only be entitled to receive Executive’s
Base Salary earned up to the date of termination. Executive shall not be entitled to any Severance Payment or any portion of the
Incentive Compensation. Notwithstanding the foregoing, Executive has the right upon thirty (30) days written notice to the Company
to terminate Executive’s employment for “Good Reason” due to occurrence of any of the following: (i) a material
adverse change in Executive’s title, duties or responsibilities; (ii) any failure by the Company to pay, or any reduction
by Company of, the base salary or any failure by Company to pay any Incentive Compensation to which Executive is entitled pursuant
to Section 4; (iii) the Company creates a work environment designed to constructively terminate Executive or to unlawfully harass
or retaliate against Executive; or (iv) a Change of Control occurs in which the Company is not the surviving entity and the surviving
entity fails to offer Executive an executive position at a compensation level at least equal to Executive’s then compensation
level under this Agreement. In the event that Executive terminates his employment for Good Reason, then Executive shall be entitled
to receive the Base Salary, a prorated portion of the Incentive Compensation, Severance Payment and stock option vesting and exercisability
as if Executive were terminated by the Company without Cause under Section 6.2, subject to Executive’s compliance with all
of the Severance Conditions. For purposes of this Agreement, “Change of Control” shall mean: (1) a merger or
consolidation or the sale or exchange by the stockholders of the Company of capital stock of the Company, where the stockholders
of the Company immediately before such transaction do not obtain or retain, directly or indirectly, at least a majority of the
beneficial interest in the voting stock or other voting equity of the surviving or acquiring corporation or other surviving or
acquiring entity, in substantially the same proportion as before such transaction; (2) any transaction or series of related transactions
to which the Company is a party in which in excess of fifty percent (50%) of the Company’s voting power is transferred; or
(3) the sale or exchange of all or substantially all of the Company’s assets (other than a sale or transfer to a subsidiary
of the Company as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”)),
where the stockholders of the Company immediately before such sale or exchange do not obtain or retain, directly or indirectly,
at least a majority of the beneficial interest in the voting stock or other voting equity of the corporation or other entity acquiring
the Company’s assets, in substantially the same proportion as before such transaction; provided, however, that a Change
of Control shall not be deemed to have occurred pursuant to any transaction or series of transactions relating to a public or private
financing or re-financing, the principal purpose of which is to raise money for the Company’s working capital or capital
expenditures and which does not result in a change in a majority of the members of the Board.


 






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6.4       Application
of Section 409A.


 


6.4(a) Notwithstanding
anything set forth in this Agreement to the contrary, no amount payable pursuant to this Agreement which constitutes a “deferral
of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “Section
409A Regulations”) shall be paid unless and until Executive has incurred a “separation from service” within
the meaning of the Section 409A Regulations.


 


6.4(b) Company intends
that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code. The
provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A
of the Code. However, Company does not guarantee any particular tax effect for income provided to Executive pursuant to this
Agreement. In any event, except for Company’s responsibility to withhold applicable income and employment taxes from
compensation paid or provided to Executive, Company shall not be responsible for the payment of any applicable taxes on compensation
paid or provided to Executive pursuant to this Agreement.


 


6.4(c) Furthermore,
to the extent that Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the
date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account
of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”)
which is first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of
Executive’s death following such separation from service. All such amounts that would, but for this Section, become payable
prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.


 






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6.4(d) Notwithstanding
anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be
subject to the following conditions: (i) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall
not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (ii) the reimbursement of eligible
expenses or in-kind benefits shall be made promptly, subject to Company’s applicable policies, but in no event later than
the end of the year after the year in which such expense was incurred; and (iii) the right to reimbursement or in-kind benefits
shall not be subject to liquidation or exchange for another benefit.


 


6.4(e) For purposes
of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to
a series of separate payments.


 


7.       General
Provisions.


 


7.1       Successors
and Assigns. The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assigns of the Company. Executive shall not be entitled to assign any of Executive’s rights or obligations
under this Agreement.


 


7.2       Waiver.
Either party's failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision,
or prevent that party thereafter from enforcing each and every other provision of this Agreement.


 


7.3       Severability.
In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being
intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification
is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity
and enforceability of the remaining provisions shall not be affected thereby.


 


7.4       Interpretation;
Construction. The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this
Agreement. Executive has participated in the negotiation of the terms of this Agreement. Furthermore, Executive acknowledges that
Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore,
the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement.


 


7.5       Governing
Law. This Agreement will be governed by and construed in accordance with the internal laws of the State of California.


 






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7.6       Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt;
(c) by telecopy, facsimile transmission, or electronic transmission such as e-mail, upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent
to the addresses set forth below each party’s signature, or such other address as either party may specify in writing.


 


7.7       Entire
Agreement. This Agreement constitutes the entire agreement between the Parties relating to this subject matter and supersedes
all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may
be amended or modified only with the written consent of Executive and the Company. No oral waiver, amendment or modification will
be effective under any circumstances whatsoever.


 


 


[Execution Page Follows]


 




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THE PARTIES TO THIS AGREEMENT HAVE READ
THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS
AGREEMENT ON THE DATES SHOWN BELOW.


 


	 	EXECUTIVE:
	 	 
	 	/s/ GREG SCHIFFMAN       
	 	Gregory Schiffman
	 	 
	 	Address:
	 	1030 NW JOHNSON STREET UNIT 608
	 	PORTLAND, OR 97209
	 	 
	 	 
	 	COMPANY:
	 	 
	 	Lion Biotechnologies, Inc.
	 	 
	 	By:
	 	/s/ MARIA FARDIS           
	 	Maria Fardis
	 	President & Chief Executive Officer
	 	112 W. 34th Street 17th Floor
	 	New York, NY 10120




 


 




     

     


    

 


Exhibit A


Form of Release and
Waiver of Claims


 


In consideration for the severance
payments and other benefits provided for in the Executive Employment Agreement, effective as of October 3, 2016 (the “Employment
Agreement”), I, Gregory Schiffman hereby furnish Lion Biotechnologies, Inc., a Nevada corporation (the “Company”)
with the following release and waiver (the “Release and Waiver”).


 


In exchange for the consideration
provided to me by the Employment Agreement, I hereby generally and completely release the Company and its officers, directors,
employees, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from
any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events,
acts, conduct, or omissions occurring prior to my signing this Release and Waiver. This general release includes, but is not limited
to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment;
(2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions,
vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and
fair dealing; (4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge
in violation of public policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990, and the federal Age Discrimination in Employment Act of 1967
(as amended) (“ADEA”).


 


I acknowledge that, among other
rights, I am waiving and releasing any rights I may have under ADEA and that this Release and Waiver is knowing and voluntary.
I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release
and waiver granted herein does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b)
I should consult with an attorney prior to executing this Release and Waiver; (c) I have 21 days in which to consider this Release
and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven days following the
execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not
be effective until the eighth day after I execute this Release and Waiver and the revocation period has expired. Notwithstanding
the foregoing, nothing contained in this Release and Waiver shall waive, release or otherwise diminish any claims that I might
have at law or in equity for payment of severance or other benefits to which I am entitled under the terms of the Employment Agreement.


 


I acknowledge my continuing obligations
under my Employee Proprietary Information and Inventions Agreement between me and the Company (the “Confidentiality Agreement”).
I understand and agree that my right to the severance pay I am receiving is in exchange for my agreement to the terms of this Release
and Waiver and is contingent upon my continued compliance with my Confidentiality Agreement.


 




     

     


    

 


This Release and Waiver, including
the Confidentiality Agreement, and the Employment Agreement constitute the complete, final and exclusive embodiment of the entire
agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation
by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both me
and a duly authorized officer of the Company.


 


_________________________________


Gregory Schiffman


 


 


Dated:_________