Document:

Agreement, dated September 14, 2005

 Exhibit 10.18 
  
 AGREEMENT 
  
 This Agreement is entered into and is effective as of the 14th day of September, 2005 (the “Effective Date”), by and between the Attorney General of the State of South Dakota (the “Attorney General”) and FSB Financial, Ltd., a Texas Limited
Partnership (hereinafter “FSB”). 
  
 WHEREAS, FSB
purchased a portfolio of consumer retail installment contracts from South Dakota Acceptance Corporation (hereinafter “SDAC”); and 
  
 WHEREAS, the Attorney General has been actively investigating certain consumer complaints related to Retail Installment Contracts issued by SDAC; and

  
 WHEREAS, the Attorney General has requested, among other
things, reformation of such contracts; and 
  
 WHEREAS, FSB has
offered to reform the active retail installment contracts as set forth below in consideration of the Attorney General’s Agreement not to pursue further modifications or challenges to such active contracts owned or controlled by FSB or assigned
to third parties by FSB subsequent to the date of this Agreement. 
  
 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES DO HEREBY MUTUALLY AGREE AS FOLLOWS: 
  
 1. Reformation of Active Retail Installment Contracts. FSB agrees to reform the active retail installment contracts, as hereinafter defined,
in the following manner: 
  

	 	a.	Reduction of Principal Balance. The principal balance under each outstanding active retail installment contract purchased from SDAC will be reduced by the amount of $500 and
such reduction will be credited when and if the contract principal balance reaches $500. After such credit, the contract will have a zero balance and the FSB lien will be released. 

  

	 	b.	Interest Rate Adjustment. All outstanding active retail installment contracts with an annual percentage rate of interest in excess of 17.95% will, as of the Effective Date,
be immediately reduced to an annual percentage rate of interest of 17.95%. However, consumers’ payment amounts shall remain the same under their respective contracts. 

  

	 	c.	All Active Retail Installment Contracts Deemed Current. If a consumer has failed to make payments during the term of the contract and is greater than thirty (30) days past
due as of the Effective Date of this Agreement, the contract shall be deemed current as of the Effective Date of this Agreement, all past due interest will be waived as of the Effective Date of this Agreement, and all late fees or similar charges
existing as of the Effective Date of this Agreement shall be waived. The consumers shall be required to continue making payments as scheduled under the terms of the retail installment contracts and future missed or late payments will result in
delinquency reporting. Notwithstanding anything contained in this paragraph to the contrary, FSB shall have no obligation to waive past due interest, waive late fees or other charges or to bring any account current if FSB already modified such
contracts or took such action as a result of the July and August offers by FSB to its customers. 

	 	d.	Vehicle Repairs. FSB agrees to continue its current practice of aiding consumers with active retail installment contracts on a case by case basis with respect to
non-maintenance repairs to their vehicles. 

  

	 	e.	Assignment of Active Retail Installment Contracts. If FSB chooses to assign or sell its interest in the active retail installment contracts, the terms and provisions of such
contracts, including the reformed items specified herein, shall follow the contracts and be a part thereof. Except as provided in paragraph 2 below, all terms of this Agreement are specifically incorporated into the active retail installment
contracts and shall be fully and completely binding on any successors, assignees, or purchasers. FSB further agrees to give the Attorney General written notice of any such assignment or sale of contracts purchased from SDAC.

  

	 	f.	Legal Effect. All provisions of existing active retail installment contracts shall remain in effect except those provisions specifically reformed by this Agreement.

  

	 	g.	Definition of Active Retail Installment Contracts. For purposes of this Agreement, active retail installment contracts shall mean those retail installment contracts purchased
from SDAC for which there remains a balance owing by the consumer and which have not been “charged off” in the regularly maintained records of FSB as of August 1, 2005.  

  
 2. Cooperation Regarding Consumer Complaints. FSB agrees to
promptly inform the office of the Attorney General concerning any proposed resolutions of individual complaints as to all consumers who have complaints regarding Dan Nelson Automotive Group, Inc. or SDAC on file with the office of the Attorney
General as of the Effective Date of this Agreement and thereafter. Additionally, FSB and the Attorney General agree to consult each other, as they deem necessary, in resolving problems in the future relating to consumers who have not yet filed
complaints with the office of the Attorney General. The obligations contained in this paragraph shall relate only to FSB and not to its assigns. 
  
 3. Authority of Attorney General. The Attorney General represents to FSB that it has the power and authority to enter into this Agreement to
obtain relief for the South Dakota consumers affected hereby. 
  
 4. Minimum Requirements. It is recognized that FSB retains the flexibility to go above and beyond the terms of this Agreement in individual consumer cases if it deems it necessary or desirable. 
  
 5. Agreement to Not Collect Bad Debt. FSB represents
that some of the retail installment contracts it purchased from SDAC have been charged-off. FSB agrees that it will not attempt to collect this past charged off debt, that it will waive any deficiency judgments FSB may currently have against the
parties to these retail installment contracts, and that FSB will not sell these uncollected consumer payment obligations to a third party debt collector or any other party; provided, however, that FSB reserves the right to assert any such
indebtedness, deficiency 

  

 2 

 
judgment or claim as an offset if such customer files suit against FSB for any reason. For the purposes of this Agreement, “charged-off retail
installment contracts” means all loans which FSB purchased from SDAC which prior to the Effective Date of this Agreement were in default and which: (i) FSB has ceased collecting; (ii) are not subject to contract reformation pursuant to this
Agreement; (iii) with respect to which FSB had repossessed the collateral securing each such loan; or (iv) have been written off by FSB without FSB repossessing the collateral securing each such loan. FSB shall be free, however, to enforce the terms
and provisions (as modified or reformed by this Agreement) of all retail installment contracts which have not been charged off as of the Effective Date of this Agreement. 
  
 6. Attorney General’s Agreement Not to Pursue Further Modification or Challenges to Contracts. In
consideration of FSB’s agreements herein, the Attorney General agrees not to pursue further modifications or challenges to the enforceability or terms of such active retail installment contracts owned by FSB. 
  
 7. Letter to Consumers. As further consideration for the
agreements contained herein, the Attorney General agrees to provide a letter, in the form of that attached hereto as Exhibit “A” to all consumers who are parties to the active retail installment contracts notifying them of the benefits
obtained under the terms of this Agreement. As a courtesy, the Attorney General shall allow FSB to view and make comments regarding the substance of such letter prior to the time it is distributed. FSB agrees to send all such letters by First Class
U.S. Mail at FSB’s expense. 
  
 8. Release by the
Attorney General. Except for its obligations under this Agreement, the Attorney General does hereby release and forever discharge and covenant not to sue FSB, its affiliates, general partner, parent company, and their respective officers,
directors, employees, successors and assigns (the “Releasees”) from and for any claims arising out of alleged violations of SDCL chs. 37-23, 37-24, and 57A-3, and other consumer-related claims, and further agrees not to assert claims
against FSB or the Releasees as the assignee of the SDAC retail installment contracts pursuant to the FTC holder rule or any other claims relating to the enforceability or legality of such retail installment contracts as reformed. Nothing contained
herein shall constitute a release of the Releasees from any wrongful conduct occurring after the Effective Date of this Agreement or from any breach of this Agreement. 
  
 9. Scope of Agreement. It is acknowledged and agreed that this Agreement only covers those retail installment
contracts entered into in the State of South Dakota, which FSB purchased from SDAC. 
  
 10. Rights of Individual Consumers and FSB. It is acknowledged by the parties hereto that this Agreement shall not constitute a waiver or release of any individual consumer’s legal rights or
remedies and that all individual consumers retain the right to bring a private cause of action provided that if an individual consumer does bring a private right of action against FSB or its successors or assigns, FSB, and its successors and
assigns, reserves the right to offset or reduce any monetary judgment obtained by the consumer with the value of the monetary benefits provided to that consumer pursuant to this Agreement. This Agreement shall not in any event constitute a waiver of
any legal right or remedy of FSB, except as expressly set forth under this Agreement, including but not limited to rights or remedies under the retail installment contracts or as otherwise allowed under applicable law. Neither this Agreement nor
anything contained 

  

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herein shall constitute an admission of guilt or any wrongdoing on the part of FSB, but rather shall be construed as evidence of FSB’s willingness to
cooperate voluntarily with the Attorney General and provide certain benefits to South Dakota consumers. 
  

			
	 FSB FINANCIAL, LTD.

	 By: FSBF, LLC, Managing
 General Partner

  
 Dated
this 14th day of September, 2005, in Arlington, Texas. 
  

			
	 By:
	 	 /s/ Steve Burke

	 	 	Steve Burke, President
	
	 SOUTH DAKOTA ATTORNEY GENERAL

  
 Dated
this 13th day of September, 2005, in Pierre, South Dakota. 
  

			
	 By:
	 	 /s/ Larry Long

	 	 	Larry Long
	 	 	Attorney General

  

 4Offer Letter by and between the Company and Michael S. Ostrach

 Exhibit 10.22 
  
 September 12, 2005 
  
 Michael Ostrach 
  
 Re: Employment Terms 
  
 Dear Michael,

  
 This letter confirms that Threshold Pharmaceuticals, Inc.
(the “Company”) has offered you the position of Chief Operating Officer and General Counsel beginning on September 12, 2005 on the following terms: 
  

You will report to Harold E. Selick, our Chief Executive Officer and work at our facility located at 1300 Seaport Blvd., 5th Floor, Redwood City, CA 94063. Of course, the Company may change your position, duties and work location from time to time as
it deems necessary. 
  
 Your compensation will be $25,000 per
month, less payroll deductions and all required withholdings. You will be paid semi-monthly and will be eligible for standard Company benefits as outlined on the attached Employee Benefits Program summary as well as a performance-based annual bonus
of up to 30% of your annual salary. The Company may modify compensation and benefits from time to time as it deems necessary. 
  
 Subject to the approval of the Company’s Board of Directors, you will be awarded a stock option grant to purchase 250,000 shares of the
Company’s Common Stock subject to a four year vesting schedule as follows: (a) the first 25% of this grant shall vest at your first anniversary of your starting date with the Company and (b) thereafter an additional 1/48th of the grant shall
vest on each subsequent monthly anniversary of your starting date. [The exercise price of your stock option will be equal to the fair market value of the Company’s Common Stock on the date your option is approved by the Board of Directors.] As
a Company employee, you will be expected to abide by Company rules and regulations, sign and comply with the attached Proprietary Information and Inventions Agreement which prohibits unauthorized use or disclosure of Company proprietary information
and, once it is available, acknowledge in writing that you have read the Company’s Employee Handbook. 
  
 You will be eligible to sign the company’s form of Change of Control Severance Agreement, a copy of which has been provided to you. 
  
 In your work for the Company, you will be expected not to use or disclose any
confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with
training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. During our discussions about your proposed job duties,
you assured us that you would be able to perform those duties within the guidelines just described. 

 You agree that you will not bring onto Company premises any unpublished documents or property belonging
to any former employer or other person to whom you have an obligation of confidentiality. 
  
 You may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any time and for any reason
whatsoever, with or without cause or advance notice. If your employment is involuntarily terminated within 18 months following a change of control, then you will be entitled to the severance benefits provided in the Change of Control Severance
Agreement. As required by law, this offer is subject to satisfactory proof of your right to work in the United States. A “List of Acceptable Documents” for employment eligibility verification is attached for your information. 

 
 This letter, together with your Proprietary Information and Inventions
Agreement, forms the complete and exclusive statement of your employment agreement with the Company. The employment terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. This letter agreement
cannot be changed except in writing signed by you and a duly authorized officer of the Company. 
  
 Please indicate your acceptance of our offer by signing below and returning the original copy of this letter of employment from Threshold Pharmaceuticals
under the terms described above. This offer will remain until end of day September 14, 2005. Should you have any questions, please contact me at 650.474.8208. 
  

We look forward to your favorable reply and to a productive and enjoyable work relationship. 
  
 Sincerely, 
  

	
	 /s/ Mireya M. Ono

	Mireya M. Ono
	Director of Human Resources

  
 Accepted: 
  

			
	 /s/ Michael Ostrach

	 	 September 12, 2005

	Michael Ostrach	 	Date

  

			
	Enclosures:	  	Proprietary Information and Inventions Agreement
	 	  	Change of Control Severance Agreement
	 	  	Employee Benefits Summary
	 	  	I-9 List of Acceptable Documents

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