Document:

Exhibit 10.5

 

 

June 1, 2016

[EMPLOYEE NAME]

Re: Retention Bonus

Dear [EMPLOYEE NAME]:

 

Lion Biotechnologies, Inc. today announced
that it is effecting a financing, that it will appoint a new Chief Executive Officer, and that it is appointing three new directors
to its Board of Directors. We consider your continued service and dedication to Lion important to our current business plan.
Accordingly, to induce you to remain employed with Lion and to alleviate any concerns about your job security, we are pleased to
offer you a retention bonus, as described in this letter agreement. The retention bonus is in addition to any other compensation
or bonus payment you are currently entitled to.

 

In recognition of your continued service
with Lion, we are offering you a cash retention bonus in the amount of $200,000. If you remain employed with Lion on the following
dates, you will earn the following retention payments: (i) $100,000 on December 31, 2016, and (ii) $100,000 on June 30, 2017. If
your employment is terminated by Lion without “cause” (as defined below) before either December 31, 2016 or June 30,
2017, you will be entitled to the payment you would have earned on either December 31, 2016 or June 30, 2017, respectively. You
will not be entitled to a pro-rata portion of any bonus payment if you resign, retire, are terminated by Lion with “cause”,
or otherwise are not employed with Lion on either December 31, 2016 or June 30, 2017.

 

In addition, in the event of a “change
in control” of Lion that occurs after the current financing but before June 30, 2017, you will be entitled to receive the
retention bonus, less any portion previously paid to you as described above, if you are employed by Lion on the date of the change
in control. This bonus will be paid promptly after the change of control transaction occurs. A “change in control”
for this purpose means the sale of a controlling interest in Lion (whether by merger, consolidation, recapitalization, reorganization
or sale of securities of Lion) or of a majority of the business and assets of Lion.

 

This letter agreement does not entitle you
to continued employment by Lion or otherwise affect your employment status or any employment related agreement that you may have
entered into with Lion. Accordingly, Lion will continue to have the right to terminate your employment at any time, with or without
cause. For the purposes of this letter agreement, “cause” means that Lion can terminate your employment because your
performance is not satisfactory, because you have engaged in an act of dishonesty that is injurious to Lion, because of your intentional
misconduct, willful neglect or gross negligence in the performance of your duties, or because you are convicted of a crime.

 

     

     

    

 

[EMPLOYEE NAME]

[DATE]

Page 2

 

 

Lion will pay to you one-half of the retention
bonus on each of December 31, 2016 and June 30, 2017 if such dates are regularly scheduled payroll dates or, if not, then Lion
will pay the bonuses on the first payroll date after those dates. All payments to you under this letter agreement will be subject
to applicable withholding and payroll deductions.

 

This letter agreement contains all of the
understandings and representations between Lion and you relating to the retention bonus or any similar bonus and supersedes all
prior and cotemporaneous understandings, discussions, agreements, representations and warranties, both written and oral, with respect
to any such bonus. This letter agreement may not be amended or modified unless in writing signed by Lion and you. This letter agreement
may be executed and delivered (by facsimile, pdf, or otherwise) in counterparts, each of which, when executed and delivered, shall
be deemed an original, and both of which together shall constitute the same agreement. Delivery of an executed signature page of
this letter agreement in pdf, or by facsimile. email or other electronic means, shall be as effective as delivery of a manually
executed signature page.

 

We look forward to your continued employment
with us.

 

	 	 	Very truly yours,	 
	 	 	 	 
	 	 	 	 
	 	 		 
	 	 	Chief Financial Officer	 
	 	 	Lion Biotechnologies, Inc.	 
	 	 	 	 
	Agreed to and accepted:                                ,
    2016	 	 	 
	 	 	 	 
	 	 	 	 
		 	 	 
	[EMPLOYEE NAME]	 	 	 
	 	 	 	 

 

 

    2Exhibit

EXHIBIT 10.1

FOURTH AMENDMENT
This Fourth Amendment dated June 1, 2016 (this “Amendment”), between Quantum Fuel Systems Technologies Worldwide, Inc., as “Borrower,” and Douglas Acquisitions LLC, as “Lender,” amends the Superpriority Debtor-in-Possession Credit Agreement dated March 22, 2016 (as amended, the “Credit Agreement”), between the Borrower and the Lender. Capitalized terms used but not otherwise defined in this Amendment have the meanings assigned to those terms in the Credit Agreement.
A.    The Borrower has requested the Lender to increase the Commitment from $7,636,000 to $9,000,000.
B.    The Borrower and the Lender have accordingly agreed to make the following changes to the terms of the Credit Agreement.
The parties hereto, for valuable consideration, agree as follows:
1.    The definition of “Commitment” is amended to read: “‘Commitment’: the obligation of the Lender to make Loans to the Borrower in an aggregate outstanding principal amount not to exceed $9,000,000 at any time.”
2.    In accordance with Section 5.4(a) of the Credit Agreement, the Lender approves an updated Budget in the form attached to this Amendment as Exhibit A.  
3.    This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Amendment by fax or other electronic-imaging means shall be effective as delivery of a manually executed counterpart hereof.
(Signature pages follow.)

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.
By    /s/ W. Brian  Olson             
    W. Brian Olson 
    President and CEO

LENDER:
DOUGLAS ACQUISITIONS LLC
By    /s/ Tim McGaw                 
    Tim McGaw 
    President

1
DWT 29695399v2 0091125-000010Exhibit

EXHIBIT 10.1

SECOND AMENDMENT  
TO ASSET PURCHASE AGREEMENT 

This SECOND AMENDMENT TO ASSET PURCHASE AGREEMENT (this “Amendment”), is entered into as of May 31, 2016, by and among Quantum Fuel Systems Technologies Worldwide, Inc., a Delaware corporation (“Seller”), and Douglas Acquisitions LLC, a California limited liability company (“Douglas”), the K&M Douglas Trust, and the Douglas Irrevocable Descendant’s Trust (collectively referred to as the “Trusts”). Douglas and the Trusts are collectively referred to as “Buyer”. The foregoing parties are collectively referred to herein as the “Parties”.  
RECITALS
WHEREAS, the Parties entered into an Asset Purchase Agreement dated April 8, 2016, as previously amended (the “Purchase Agreement”).  The Parties desire to amend the Purchase Agreement pursuant to this Amendment.  Capitalized terms used and not defined herein shall have the respective meanings ascribed to such terms in the Purchase Agreement; 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto do hereby agree as follows:
AMENDMENT
1.Amendment to Section 1.02(f) (Excluded Assets).  Section 1.02(f) is hereby deleted and replaced with the following:
“any avoidance claims arising under the Bankruptcy Code or applicable state law, including without limitation all rights and avoidance claims of Sellers arising under Chapter 5 of the Bankruptcy Code;”

2.Amendment to Section 5.04 (Employees).  The following sentence is added to Section 5.04(a):
“Notwithstanding the first sentence of this section:

(i) The Code Section 401(k) plan offered by Buyer to hired Seller employees will contain, or shall be amended to contain, provisions permitting hired Seller employees to roll over any existing plan loans received from Seller’s Code Section 401(k) plan(s) to such Buyer-sponsored plan. Buyer shall administer any such rolled-over plan loans in accordance with applicable law. Seller agrees to use commercially reasonable efforts to cooperate with Buyer to effect the roll over of plan loans to  Buyer’s Code Section 401(k) plan. 

(ii) The Code Section 401(k) plan offered by Buyer to hired Seller employees will contain, or shall be amended to contain, provisions permitting hired Seller employees to roll over any other Code Section 401(k) plan accounts from Seller’s Code Section 401(k) plan(s). 

(iii) Buyer shall offer benefit plans including provisions for flexible spending accounts and shall permit hired Seller employees to immediately participate in such flexible spending accounts.  In addition, pursuant to IRS Revenue Ruling 2002-32, Buyer shall permit any amounts remaining in the hired Seller employees’ flexible spending accounts under Seller’s benefit plans as of the Closing Date to be transferred to flexible spending accounts maintained by Buyer. Buyer shall honor the salary reduction elections for flexible spending accounts made for the plan year in which this transaction is consummated by transferred Seller employees for the remainder of such plan year;

(iv) To the extent it impacts any benefit plan, program, or policy offered by Buyer at Closing, including, but not limited to the amount of vacation, paid-time off, or other similar benefits provided to employees, Buyer shall recognize each hired Seller employee’s tenure based on their length of prior service with the Seller.”

3.Amendment to Section 5.12(c) (Bankruptcy Matters).  The first sentence of Section 5.12(c) is hereby deleted and replaced with the following:
“Seller shall (i) upon consummation of such Alternative Transaction, pay Buyer a break-up fee equal to two percent (2%) of the Purchase Price (the “Break-Up Fee”), provided that the aggregate purchase price paid in the Alternative Transaction is equal to or greater than the sum of (x) Twenty Three Million Dollars ($23,000,000), (y) the amount by which the amount required to satisfy the DIP Loan exceeds Six Million Dollars ($6,000,000), and (z) Two Million Five Hundred Thousand Dollars ($2,500,000) (the “Price Threshold”); and (ii) reimburse the Buyer up to a maximum of $300,000 for all its reasonable documented out-of-pocket costs and expenses (not otherwise reimbursable pursuant to the DIP Facility) incurred in connection with (a) the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and any other documents prepared in connection herewith or therewith, (b) conducting due diligence on Buyer’s assets and business, (c) participating in the Bankruptcy Case, and enforcing or preserving any rights under this and any such other documents, including the fees and disbursements of counsel to the Buyer (the “Expense Reimbursement”).”

4.Amendment to Section 7.01(b)(iv) (Termination).  Section 7.01(b)(iv) is hereby deleted and replaced with the following: 
“[INTENTIONALLY DELETED]”

5.Amendment to Section 7.01(b)(v) (Termination).  Section 7.01(b)(v) is hereby deleted and replaced with the following: 
“at any time on or prior to June 1, 2016 (the “Diligence Deadline”), if Buyer determines, in its sole and absolute discretion, that it is not satisfied with the results of its due diligence, including the Cure Amounts payable in connection with Business Contracts;”

6.Entire Agreement.  This Amendment and the Purchase Agreement constitute the entire agreement of the Parties with respect to the subject matter hereof.  Except as amended by this Amendment, the Purchase Agreement remains in full force and effect.
7.Governing Law.  This Amendment shall be governed by and construed in accordance with the domestic Laws of, and enforced in, the State of California without giving effect to any choice or conflict of law provision or rule that would cause the application of the Laws of any jurisdiction other than the State of California.
8.Binding Effect.  Except to the extent set forth and amended expressly herein, each of the Parties hereto acknowledges and agrees that all terms and provisions, covenants and conditions of the Purchase Agreement and all documents executed in conjunction therewith shall be and remain in full force and effect.  Further, each of the Parties hereto acknowledges and agrees that the Purchase Agreement as amended hereby, shall constitute its legal, valid, and biding obligation, in each case, enforceable in accordance with its terms.
9.Section References.  Section titles and references used in this Amendment shall be without substantive meaning or content of any kind whatsoever and are not part of the agreements among the parties hereto evidenced hereby.
10.Counterparts.   This Amendment may be signed in any number of counterparts, each of which shall be an original, but all of which taken together constitute one and the same instrument.
[Signature Page Follows]

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the date first above written.

	
		
	

	 

Page 1 - Second Amendment to Purchase Agreement

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