Exhibit 10.16

AVIGEN, INC.

NONSTATUTORY STOCK OPTION

1996 NON-EMPLOYEE DIRECTOR’S STOCK OPTION PLAN

          _________________,   Optionee:

          AVIGEN, INC. (The “Company”), pursuant to its 1996 Non-Employee
Directors’ Stock Option Plan (the “Plan”) has on __________, _________ granted
to you, the optionee named above, an option to purchase shares of the common
stock of the Company (“Common Stock”). This option is not intended to qualify
and will not be treated as an “incentive stock option” within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

          The grant hereunder is in connection with and in furtherance of the
Company’s compensatory benefit plan for participation of the Company’s
Non-Employee Directors (as defined in the Plan).  (See Schedule A.)

          The details of your option are as follows:

          1.          The total number of shares of Common Stock subject to this
option is _______.  Subject to the limitations contained herein, this option
shall be exercisable in accordance with the Plan.

          2.          The exercise price of this option is ___________ per
share, being one hundred percent (100%) of the fair market value (as defined in
the Plan) of the Common Stock on the date of grant of this option.

          3.          (a)          This option may be exercised, to the extent
specified in the Plan, by delivering a notice of exercise (in a form designated
by the Company) together with the exercise price to the Secretary of the
Company, or to such other person as the Company may designate, during regular
business hours, together with such additional documents as the Company may then
require pursuant to paragraph 6 of the Plan. This option may not be exercised
for any number of shares which would require the issuance of anything other than
whole shares.

                       (b)          By exercising this option you agree that the
Company may require you to enter an arrangement providing for the cash payment
by you to the Company of any tax withholding obligation of the Company arising
by reason of the exercise of this option or the lapse of any substantial risk of
forfeiture to which the shares are subject at the time of exercise.

          4.          Any notices provided for in this option or the Plan shall
be given in writing and shall be deemed effectively given upon receipt or, in
the case of notices delivered by the Company to you, five (5) days after deposit
in the United States mail, postage prepaid, addressed to you at the address
specified below or at such other address as you hereafter designate by written
notice to the Company.

          5.          This option is subject to all the provisions of the Plan,
a copy of which is attached hereto and its provisions are hereby made a part of
this option, including without limitation the provisions of paragraph 6 of the
Plan relating to option provisions, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of this option and those of the Plan, the provisions of
the Plan shall control.

          Dated the ___ day of _____.

 

Very truly yours,

 

 

 

 

AVIGEN, INC.

 

 

 

 

 

 

 

By:

 

 

 

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Kenneth G. Chahine, J.D., Ph.D.

 

 

President and CEO

 

 

Duly authorized on behalf of the

 

 

Board of Directors

 

 

 

ATTACHMENTS:

 

 

 

 

 

1996 Non-Employee Directors’ Stock Option Plan

 

 

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The undersigned:

 

(a)

Acknowledges receipt of the foregoing option and the attachments referenced
therein and understands that all rights and liabilities with respect to this
option are set forth in the option and the Plan:

 

 

 

 

(b)

Acknowledges that as of the date of grant of this option, it sets forth the
entire understanding between the undersigned optionee and the Company and its
affiliates regarding the acquisition of stock in the Company and supersedes all
prior oral and written agreements on that subject with the exception of (i) the
options previously granted and delivered to the undersigned under stock options
plans of the Company, and (ii) the following agreements only:

 

NONE

____________________________________________________

 

 

 

 

 

 

 

(Initial)

 

 

 

 

 

 

OTHER

____________________________________________________

 

 

 

 

 

 

 

____________________________________________________

 

 

 

 

 

 

 

____________________________________________________

 

 

____________________________________

 

 

 

Optionee

 

 

 

 

 

ADDRESS:

 

 

 

____________________________________

 

 

 

____________________________________

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__________, Optionee:

SCHEDULE A

Vesting Commencement Date:          _______________

Option Vesting Dates:

Date

 

Number of Shares

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