**Exhibit 10.26****MICROMET, INC.****DIRECTOR COMPENSATION POLICY**     Non-employee members of the board of directors (the “Board”) of Micromet, Inc. (the“Company”), shall be eligible to receive cash and equity compensation effective uponconsummation of the merger of CancerVax Corporation with Micromet AG, a corporation organized underthe laws of Germany (the “Merger Date”), as set forth in this Director Compensation Policy.The cash compensation and equity awards described in this Director Compensation Policy shall bepaid or be made, as applicable, automatically and without further action of the Board, to eachnon-employee director who may be eligible to receive such cash compensation or equity awards unlesssuch non-employee director declines the receipt of such cash compensation or equity awards bynotice to the Company. This Director Compensation Policy shall remain in effect until it isrevised or rescinded by further action of the Board.     1. Cash Compensation.          (a) General Board Retainer. Each non-employee director shall be eligible to receivean annual retainer of $16,000 for service on the Board. In addition, the Chairman of the Boardshall be eligible to receive an annual retainer of $85,000 for service on the Board. TheChairman’s annual retainer for the first year following completion of the merger shall be paid uponconsummation of the merger in common stock in lieu of cash.          (b) Meeting Stipends. Each non-employee director shall receive a stipend of $1,500for each Board meeting attended in person and $1,000 for each committee meeting attended in person.In addition, each non-employee director shall receive such stipends with respect to telephonicBoard meetings and committee meetings if such telephonic meetings last approximately two hours orlonger. The Chairman’s meeting stipends for the first year following completion of the mergershall be paid in common stock in lieu of cash.          (c) Expense Reimbursements. The Company shall reimburse non-employee directors forreasonable expenses incurred to attend meetings of the Board or its committees. Any travelexpenses shall be reimbursed in accordance with the Company’s standard travel policy.     2. Equity Compensation. The stock options described in this Director CompensationPolicy shall be granted under and shall be subject to the terms and provisions of the Company’sAmended and Restated 2003 Equity Incentive Award Plan (the “2003 Plan”), as amended fromtime to time, and shall be granted subject to the execution and delivery of award agreements,including attached exhibits, in substantially the same forms approved by the Board, setting forththe vesting schedule applicable to such awards and such other terms as may be required by the 2003Plan.          (a) Initial Awards. On the Merger Date, a person who is a non-employee director,other than the Chairman of the Board, automatically shall be granted a non-qualified stock optionto purchase 35,000 shares of Company common stock (subject to adjustment as
 

 
provided in the 2003Plan). On the Merger Date, the Chairman of the Board automatically shall be granted anon-qualified stock option to purchase 70,000 shares of the Company’s common stock (subject toadjustment as provided in the 2003 Plan). In addition, a person who is initially elected orappointed to the Board following the Merger Date, and who is a non-employee director at the time ofsuch initial election or appointment, automatically shall be granted a non-qualified stock optionto purchase 35,000 shares of Company common stock (subject to adjustment as provided in the 2003Plan) on the date of such initial election or appointment. Each of the options described in thisSection 2(a) is referred to herein as an “Initial Award.”          (b) Committee Chair Awards. On the Merger Date, and thereafter on the date of eachannual meeting of the Company’s stockholders, (i) the Chairman of the Audit Committee automaticallyshall be granted a non-qualified stock option to purchase 7,500 shares of Company common stock(subject to adjustment as provided in the 2003 Plan), (ii) the Chairman of the CompensationCommittee automatically shall be granted a non-qualified stock option to purchase 5,000 shares ofCompany common stock (subject to adjustment as provided in the 2003 Plan), and (iii) the Chairmanof the Nominating/Corporate Governance Committee automatically shall be granted a non-qualifiedstock option to purchase 2,500 shares of common stock (subject to adjustment as provided in the2003 Plan). The option grants described in this Section 2(b) are referred to herein as“Committee Chair Awards.”          (c) Annual Awards. A person who is a non-employee director, other than the Chairmanof the Board, automatically shall be granted a non-qualified stock option to purchase 15,000 sharesof Company common stock (subject to adjustment as provided in the 2003 Plan) on the date of eachannual meeting of the Company’s stockholders after the Merger Date. The Chairman of the Boardautomatically shall be granted a non-qualified stock option to purchase 30,000 shares of theCompany’s common stock (subject to adjustment as provided in the 2003 Plan) on the date of eachannual meeting of the Company’s stockholders after the Merger Date. The option grants described inthis Section 2(c) are referred to herein as “Annual Awards.”          (d) Terms of Option Awards.               (i) Exercise Price of Options. The per share price of each option granted to anon-employee director shall equal 100% of the fair market value of a share of common stock on thedate the option is granted (as determined under the 2003 Plan).               (ii) Vesting of Initial Awards. Options granted as Initial Awards to non-employeedirectors shall become vested in equal installments at the end of each calendar month over a periodof three years from the date of grant, such that each stock option shall be 100% vested on thethird anniversary of its date of grant, subject to a director’s continuing service on the Boardthrough such dates. No portion of an option which is unexercisable at the time of a non-employeedirector’s termination of membership on the Board shall thereafter become exercisable.               (iii) Vesting of Committee Chair Awards and Annual Awards. Options granted as AnnualAwards to non-employee directors shall become vested in equal installments at the end of eachcalendar month over a period of one year from the date of grant, such that each stock option shallbe 100% vested on the first anniversary of the date of grant, subject to a director’s continuingservice on the Board through such date. No portion of an option which is unexercisable at the timeof a non-employee director’s termination of membership on the Board shall thereafter becomeexercisable.               (iv) Term. The term of each option granted to a non-employee director shall be tenyears from the date the option is granted.
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