Document:

Retention Bonus Agreement - Robert H. Tidwell

 EXHIBIT 10.5 
 [Cell Genesys, Inc. Letterhead] 
 April     , 2009 
 Robert H. Tidwell 
 c/o Cell Genesys, Inc. 
 400 Oyster Point Boulevard, Suite 525 
 South San Francisco, CA 94080

 Dear Bob: 
 This letter sets forth the agreement between you
and Cell Genesys, Inc. (the “Company”) regarding the terms of your retention payment opportunity. 
 1. If you continue to be
employed with the Company through the ninety-day period commencing on May 1, 2009 and ending on July 29, 2009 (the “Retention Period”) and a Change of Control does not occur at any time during the Retention Period, you will be
entitled to receive a retention payment of One Hundred Forty Thousand Dollars ($140,000) (the “Payment Amount”), such payment to be made, subject to applicable withholding, in a lump sum within five business days after the end of the
Retention Period. If, during the Retention Period, your employment terminates for any reason or a Change of Control of the Company occurs, you will not be entitled to a retention payment under this paragraph 1, although you may be entitled to a
payment under either paragraph 2 or paragraph 3 below, as applicable in the circumstances. 
 2. If your employment is terminated during the
Retention Period either by the Company without Cause (as defined in the attached Exhibit A) or as a result of an Involuntary Termination (as defined in the attached Exhibit A), and in either case other than due to your death or Disability, you will
be entitled to receive an amount equal to the Payment Amount, subject to applicable withholding, in a lump sum within 30 calendar days after the date on which your employment terminates; provided, however, that your right to receive such payment
shall be contingent upon your execution and delivery to the Company of a release of claims in a form acceptable to the Company promptly following your termination and your not revoking such release within any revocation period provided under
applicable law. You hereby acknowledge that, solely for purposes of this letter agreement, no event that has occurred prior to the date of this letter agreement shall constitute grounds for an Involuntary Termination of your employment under this
letter agreement. 
 3. If a Change of Control (as defined in the attached Exhibit A) occurs during the Retention Period and you continue to
be employed with the Company through the date of the Change of Control, you will be entitled to receive an amount equal to (1) the Payment Amount, multiplied by (2) a fraction (not greater than one), the numerator of which shall be the
number of days during the Retention Period through the date of the Change of Control, and the denominator of which shall be 90, such payment to be made, subject to applicable withholding, in a lump sum within five business days after the Change of
Control date. 

 4. In no event will you be entitled to receive a payment under more than one of the foregoing three
paragraphs. 
 5. To secure the obligations of the Company herein, the Company agrees to enter into a letter of credit agreement with you
substantially in the form of Exhibit B hereto (“Letter of Credit Agreement”). The Company and you agree that any obligations of the Company under this letter agreement may be satisfied in full by payment to you pursuant to the terms and
conditions set forth in the Letter of Credit Agreement. 
 6. Nothing contained in this letter agreement constitutes an employment or service
commitment by the Company (or any of its affiliates), affects your status as an employee at will who is subject to termination without cause at any time, or interferes in any way with the Company’s right (or the right of its affiliates) to
change your compensation or other terms of employment at any time. This letter agreement may be amended only by a written agreement, signed by an authorized officer of the Company other than you, that expressly refers to this letter agreement. This
letter agreement and the Letter of Credit Agreement contain all of the terms and conditions of your retention payment opportunity under this letter agreement and supersede all prior understandings and agreements, written or oral, between you and the
Company with respect to your retention payment opportunity, except insofar as Section 5 of your Change of Control Severance Agreement (your “Change of Control Agreement”) with the Company dated as of October 30, 2007 (which
generally provides that if any benefits payable to you in connection with a change in control of the Company would be subject to the excise tax imposed under Section 280G of the U.S. Internal Revenue Code, the benefits will either be paid in
full or will be reduced to the extent necessary to avoid triggering the excise tax, whichever results in a greater after-tax benefit for you) may apply to any payment payable to you pursuant to this letter agreement. For purposes of clarity, your
Change of Control Agreement, your indemnification agreement with the Company dated as of October 30, 2007 and any other agreements you may have with the Company are outside the scope of the foregoing integration provision and continue in effect
in accordance with their terms. 
 If this letter accurately sets forth our understanding and agreement as to the foregoing matters, please acknowledge your
agreement with the foregoing by signing the enclosed copy of this letter and returning it to me. 
  

	
	Sincerely,
	
	  

	Stephen A. Sherwin, M.D.
	Chairman of the Board and Chief Executive Officer

  

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	Agreed to and Accepted:
		
	 By:
	 	  

	 Name:
	 	Robert H. Tidwell

  

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 Exhibit A 
 For purposes of this letter agreement, the following definitions shall apply: 
 “Cause” shall mean
either (i) any act of personal dishonesty taken by you in connection with your responsibilities as an employee and intended to result in your substantial personal enrichment, (ii) your conviction of, or plea of nolo contendere to, a
felony, (iii) a willful act by you which constitutes gross misconduct and which is injurious to the Company, or (iv) following delivery to you of a written demand for performance from the Company which describes the basis for the
Company’s belief that you have not substantially performed your duties, continued violations by you of your obligations to the Company which are demonstrably willful and deliberate on your part. 
 “Involuntary Termination” shall mean resignation within 180 days following: (i) without your express written consent, a material reduction
of your duties, title, authority or responsibilities relative to your duties, title, authority or responsibilities as in effect immediately prior to such reduction, or the assignment to you of such reduced duties, title, authority or
responsibilities; (ii) without your express written consent, a material reduction, without good business reasons, of the facilities and perquisites (including office space and location) available to you immediately prior to such reduction;
(iii) a material reduction by the Company in your compensation as in effect immediately prior to such reduction; (iv) a material reduction by the Company in the kind or level of employee benefits, including bonuses, to which you were
entitled immediately prior to such reduction with the result that your overall benefits package is materially reduced; (v) your relocation to a facility or location more than twenty-five (25) miles from your then present location, without
your express written consent; (vi) any purported termination of you by the Company which is not effected for Disability or for Cause, or any purported termination for which the grounds relied upon are not valid; (vii) the failure of the
Company to obtain the assumption of this agreement by any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business
and/or assets; or (viii) any act or set of facts or circumstances which would, under California case law or statute constitute a constructive termination of you, provided, however, that none of the actions described above shall give rise to an
“Involuntary Termination” with respect to you if it was an isolated and inadvertent action not taken in bad faith by the company and if it is remedied by the Company within thirty (30) days after receipt of written notice thereof
given by you, which such notice must be delivered no later than sixty (60) days following the occurrence of such. For purposes of this definition, the Company and you agree that any reduction in base salary shall constitute a material reduction
in compensation. 
 “Change of Control” means the occurrence of any of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the
“beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding
voting securities; 
  

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 (ii) A change in the composition of the Company’s Board of Directors (the “Board”)
occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or
(B) are elected, or nominated for election, to the Board with the affirmative votes (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for election as a director without
objection to such nomination) of at least a majority of the Incumbent Directors at the time of such election or nomination; 
 (iii) The
consummation of a merger or consolidation of the Company with any other corporation, other than the merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or the entity that controls the Company or controls such surviving entity) at least fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity or the voting power represented by the voting securities of the Company or such surviving entity or the entity that controls the Company or controls such surviving entity outstanding
immediately after such merger or consolidation; or 
 (iv) The consummation of the sale or disposition by the Company of all or substantially
all the Company’s assets. 
 “Disability” shall mean you have been unable to perform the essential functions of your Company
duties, with or without reasonable accomodation, as a result of your incapacity due to physical or mental illness, and such inability, at least 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the
Company or its insurers and acceptable to you or your legal representative (such agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least 30 days’ written notice
by the Company of its intention to terminate your employment. In the event that you resume the performance of substantially all of your duties before the termination of employment becomes effective, the notice of intent to terminate will be
automatically revoked. 
  

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 Exhibit B 
 Letter of Credit Agreement 
  

 6Form of Letter of Credit Agreement

 EXHIBIT 10.6 
 Letter of Credit Agreement 
 This Letter of Credit Agreement (“Letter of Credit Agreement”)
dated as of April __, 2009 is entered into by and between Cell Genesys, Inc., a Delaware corporation (“Company”) and
[                    ] (“Employee”). 
 WHEREAS, in order to provide additional incentive to Employee to continue providing services to Company, Company desires to enter into a letter agreement (the “Retention Payment Agreement”) with Employee whereunder Employee is
entitled to receive a payment under the circumstances set forth therein; and 
 WHEREAS, Employee is willing to enter into the Retention
Payment Agreement with Company provided that Company provides security for its obligations thereunder in the form of a irrevocable standby letter of credit. 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  

	1.	Company shall use commercially reasonable efforts to cause to be delivered to Employee an irrevocable, standby letter of credit issued in favor of Employee by Wells Fargo Bank, N.A.
(the “Bank”) substantially in the form attached hereto as Exhibit A (the “Letter of Credit”); provided, however, that in the event Bank does not issue such Letter of Credit or substantially in such form, Company shall use
commercially reasonable efforts to cause to be issued a standby letter of credit agreement with such bank and in such form as Company and Employee shall reasonably agree (in such cases references to “Bank” and “Letter of Credit”
in this Letter of Credit Agreement shall hereinafter refer to such replacement bank or letter of credit). The Letter of Credit shall serve as security for any and all of Company’s obligations to Employee, which may arise under the terms of the
aforementioned Retention Payment Agreement. Unless otherwise defined herein or the context otherwise requires, each defined term used herein shall have the meaning ascribed to it in the Retention Payment Agreement, including Exhibit A thereto.

  

	2.	Company shall at all times maintain the Letter of Credit until all obligations of Company have been satisfied in full by payment of the applicable payment amount accrued to Employee
under one of the three circumstances set forth in the Retention Payment Agreement (the “Accrued Payment”) or until such time as Employee is no longer eligible to receive any Accrued Payment under the Retention Payment Agreement.

  

	3.	Provided that Company complies with paragraph 4 of this Letter of Credit Agreement, Employee shall, on and after the thirtieth (30th) day following the Entitlement Date (as such
term is defined below in Section 4) be entitled to draw on the Letter of Credit as follows: (1) if the Company has not paid Employee the full amount of the Net Entitlement (as defined below) and has not provided Employee reasonable
documentation that any withholding obligations related to the Accrued Payment have been satisfied, Employee shall be entitled to draw on the Letter of Credit up to the amount of the Accrued Payment (to the extent not theretofore paid by Company to
the Employee) that Employee is entitled to receive pursuant to the Retention Payment Agreement (“Gross Entitlement”); or (2) if the Company has not paid Employee the Net Entitlement but has remitted the withholding taxes related to
the Accrued Payment to the related taxing authorities, Employee shall be entitled to draw on the Letter of Credit up to the Gross Entitlement (to the extent not theretofore paid by Company to Employee) net of any withholding tax obligations (such
Gross Entitlement after deduction of any withholding tax obligations, the “Net Entitlement”). 

  

	4.	Within 5 business days of the date Employee first becomes entitled to payment of the Accrued Payment pursuant to the terms of the Retention Payment Agreement (such date of first
entitlement, the “Entitlement Date”), Company shall provide written notice to Employee, with a copy to Wells Fargo Bank, N.A., indicating eligibility under the Retention Payment Agreement and the amount of the Net Entitlement.

  

	5.	If Company shall fail to provide the notice within the period specified in paragraph 4, the Employee shall be entitled to draw on the Letter of Credit up to the amount of the Gross
Entitlement, provided that Employee has provided the documentation required in the Letter of Credit. 

  

	6.	If Employee’s employment with the Company is terminated and Employee is not eligible for any payment under the Retention Payment Agreement, Employee agrees to surrender the
Letter of Credit, execute such documents and take such actions as may be required to cause the Letter of Credit to be terminated as soon as reasonably practicable. 

  

	7.	In the event of a Change of Control, as defined in the Retention Payment Agreement, this Letter of Credit Agreement, including without limitation the Company’s obligation to
provide Notice, will inure to and be binding upon the Company’s successors. The Company will require any successor to agree in writing to assume this Agreement. 

  

	8.	The obligation of Company to provide the Letter of Credit shall terminate when all obligations under the Retention Payment Agreement terminate. 

  

	9.	The rights of Employee under this Letter of Credit Agreement shall not be assignable by Employee without Company’s consent, which may be withheld in Company’s sole
discretion. 

  

	10.	In no event shall the fact that Company established and/or maintains the Letter of Credit or any renewal or replacement thereof be construed as an employment or service commitment
by Company (or any of its affiliates), affect Employee’s status as an employee at will who is subject to termination without cause at any time, or interfere in any way with Company’s right (or the right of its affiliates) to change
Employee’s compensation or other terms of employment at any time. 

  

	11.	Other than Company’s withholding of taxes as required by law, Employee shall be solely responsible for his or her own tax liability with respect to amounts payable to Employee
pursuant to the Retention Payment Agreement, this Letter of Credit Agreement and/or the Letter of Credit. To the extent Employee draws on the Letter of Credit in excess of the Net Entitlement (i.e., such draw includes amounts attributed to
withholding obligations not satisfied by Company), Employee agrees to timely remit all of Employee’s required taxes related to the Accrued Payment (including amounts that otherwise should have been withheld by Company) to the applicable taxing
authorities. 

  

	12.	Any failure of Company to perform any of its obligations hereunder shall be a default under the Retention Payment Agreement. 

  

	13.	Each of the parties acknowledge that, in light of the uniqueness of the transactions contemplated by this Agreement, each party would not have an adequate remedy at law for money
damages in the event that this Agreement has not been performed in accordance with its terms and therefore agrees that the other party shall be entitled to specific performance of the terms hereof in addition to any other remedy that it may be
entitled, at law or in equity. 

  

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	14.	Employee hereby acknowledges that knowingly making false statements for the purpose of drawing on the Letter of Credit may be a violation of applicable law in addition to a breach
of this Agreement. 

  

	15.	This Letter of Credit Agreement shall be governed by the laws of New York, without regard to the principles of conflicts of laws. 

 IN WITNESS WHEREOF, the parties have caused this Letter of Credit Agreement to be duly executed and delivered as of the date above first written.

  

					
	CELL GENESYS, INC.
		
	 By
	 	  

			
		 	 Title
	 	  

	
	 EMPLOYEE

			
	 By
	 		 	  

			
		 	 Title
	 	  

  

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