Company: DVAX
Filing Date: 2025-04-03
Form Type: PREC14A
Source: 0000930413-25-001153
Chunk: 73

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-04-03
Form: PREC14A
Chunk 73
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 group data reference points with respect to an approximation of grant date fair value and shares
granted, expressed as a percentage of total common shares outstanding. Additionally, the Compensation Committee considered the
mix of stock options, RSUs and PSUs granted in 2024. The Compensation Committee made final determinations based on its judgment
in accordance with our pay-for-performance philosophy and the need to retain and motivate these highly experienced and essential
members of our management team.

For 2024, the Compensation Committee (and
the Board with respect to Mr. Spencer) determined to grant each NEO’s annual long-term incentive compensation with a mix
of stock options RSUs and PSUs. Specifically, in February 2024, the Compensation Committee approved annual equity grants for the
NEOs in the form of stock options, RSUs and PSUs, with each representing approximately one-third of the aggregate target option
equivalents granted. This particular mix was chosen in order to provide appropriate retention incentives and the opportunity for
our NEOs to realize value directly in line with our stock price, particularly in light of historic volatility in our stock price,
as well as to respond to investor feedback. Consideration was also given to annual/ cumulative equity plan dilution and impact
to future share availability to ensure program sustainability.

The PSUs granted in 2024 would, subject
to and qualified by the terms of the grant agreement, vest solely upon the Compensation Committee’s certification that our
relative total stockholder return ranking (as defined in the grant agreement) is equal to or greater than the 50
percentile during the performance period starting January 1, 2024 and ending December 31, 2026 (“Performance Period”).
To calculate the relative ranking, the Company’s total stockholder return will be compared to the returns of the other companies
comprising the Nasdaq Biotechnology Index during the entire Performance Period. No shares can vest under these awards if the Company’s
relative ranking is below the twenty-fifth percentile. Fifty percent can vest at a threshold of at least the twenty-fifth percentile,
one hundred percent can vest at the fiftieth percentile, and a maximum of two hundred percent can vest at or above a ninetieth
percentile relative total stockholder return ranking, except that the maximum portion that can vest is the target amount, 50%,
if the Company’s absolute total stockholder return is negative, regardless of whether the company achieves a higher than
target relative ranking. Stock options granted to each