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                                                                    EXHIBIT 10.2

                        DYNAVAX TECHNOLOGIES CORPORATION

                           1997 EQUITY INCENTIVE PLAN

                            ADOPTED JANUARY 22, 1997

                          AMENDED ON DECEMBER 17, 1998

                           AMENDED ON JANUARY 20, 2000

                             AMENDED ON MAY 10, 2000

1. PURPOSES.

      (a) The purpose of the Plan is to provide a means by which selected
Employees and Directors of and Consultants to the Company, and its Affiliates,
may be given an opportunity to benefit from increases in value of the stock of
the Company through the granting of (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, (iii) stock bonuses, and (iv) rights to purchase
restricted stock.

      (b) The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees or Directors of or Consultants to the Company or
its Affiliates, to secure and retain the services of new Employees, Directors
and Consultants, and to provide incentives for such persons to exert maximum
efforts for the success of the Company and its Affiliates.

      (c) The Company intends that the Stock Awards issued under the Plan shall,
in the discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c), be
either (i) Options granted pursuant to Section 6, including Incentive Stock
Options and Nonstatutory Stock Options, or (ii) stock bonuses or rights to
purchase restricted stock granted pursuant to Section 7. All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and in such form as issued pursuant to Section 6, and a
separate certificate or certificates will be issued for shares purchased on
exercise of each type of Option. Further the Company intends that Stock Awards
issued under the Plan shall comply with the provisions of Rule 701 promulgated
by the Securities and Exchange Commission under the Securities Act and are also
intended to be exempt from the securities qualification requirements of the
California Corporations Code pursuant to Section 25102(o) of that code.

2. DEFINITIONS.

      (a) "AFFILIATE" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and respectively, of the Code.
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      (b) "BOARD" means the Board of Directors of the Company.

      (c) "CAUSE" means, with respect to the termination by the Company or an
Affiliate of an individual's Continuous Status as an Employee, Director or
Consultant, that such termination is for "Cause" as such term is expressly
defined in a then-effective written agreement between the individual and the
Company or such Affiliate, or in the absence of such then-effective written
agreement and definition, is based on, in the determination of the
Administrator, the individual's: (i) refusal or failure to act in accordance
with any specific, lawful direction or order of the Company or an Affiliate;
(ii) unfitness or unavailability for service or unsatisfactory performance
(other than as a result of disability); (iii) performance of any act or failure
to perform any act in bad faith and to the detriment of the Company or an
Affiliate; (iv) dishonesty, intentional misconduct or material breach of any
agreement with the Company or an Affiliate; or (v) commission of a crime
involving dishonesty, breach of trust, or physical or emotional harm to any
person. At least 30 days prior to the termination of the individual's Continuous
Status as an Employee, Director or Consultant pursuant to (i) or (ii) above, the
Company shall provide the individual with notice of the Company's or such
Affiliate's intent to terminate, the reason therefor, and an opportunity for the
individual to cure such defects in his or her service to the Company's or such
Affiliate's satisfaction. During this 30 day (or longer) period, no Stock Award
issued to the individual under the Plan may be exercised or purchased.

      (d) "CODE" means the Internal Revenue Code of 1986, as amended.

      (e) "COMMITTEE" means a Committee appointed by the Board in accordance
with subsection 3(c) of the Plan.

      (f) "COMPANY" means Dynavax Technologies Corporation, a California
corporation.

      (g) "CONSULTANT" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services, provided that the term "Consultant" shall not include Directors
who are paid only a director's fee by the Company or who are not compensated by
the Company for their services as Directors.

      (h) "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT" means that
the service of an individual to the Company, whether as an Employee, Director or
Consultant, is not interrupted or terminated. The Board or the chief executive
officer of the Company may determine, in that party's sole discretion, whether
Continuous Status as an Employee, Director or Consultant shall be considered
interrupted in the case of: (i) any leave of absence approved by the Board or
the chief executive officer of the Company, including sick leave, military
leave, or any other personal leave; or (ii) transfers between the Company,
Affiliates or their successors.
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      (i) "COVERED EMPLOYEE" means the chief executive officer and the four (4)
other highest compensated officers of the Company for whom total compensation is
required to be reported to shareholders under the Exchange Act, as determined
for purposes of Section 162(m) of the Code.

      (j) "DIRECTOR" means a member of the Board.

      (k) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

      (l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

      (m) "FAIR MARKET VALUE" means, as of any date, the value of the common
stock of the Company determined as follows and in each case in a manner
consistent with Section 260.140.50 of Title 10 of the California Code of
Regulations:

            (i) If the common stock is listed on any established stock exchange
or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair
Market Value of a share of common stock shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of
trading in the Company's common stock) on the last market trading day prior to
the day of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable.

            (ii) In the absence of such markets for the common stock, the Fair
Market Value shall be determined in good faith by the Board.

      (n) "GOOD REASON" means the occurrence after a Corporate Transaction (as
defined in Section 12(b)) of any of the following events or conditions unless
consented to by an individual:

            (i) a change in the individual's status, title, position or
responsibilities which represents an adverse change from the individual's
status, title, position or responsibilities as in effect at any time within six
(6) months preceding the date of a Corporate Transaction or at any time
thereafter or (B) the assignment to the individual of any duties or
responsibilities which are inconsistent with the individual's status, title,
position or responsibilities as in effect at any time within six (6) months
preceding the date of a Corporate Transaction or at any time thereafter;

            (ii) reduction in the individual's base salary to a level below that
in effect at any time within six (6) months preceding the date of a Corporate
Transaction or at any time thereafter; or

            (iii) requiring the individual to be based at any place outside a
forty-mile radius from the individual's job location prior to the Corporate
Transaction except
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for reasonably required travel on business which is not materially greater than
such travel requirements prior to the Corporate Transaction.

      (o) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

      (p) "LISTING DATE" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange, or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in
accordance with the provisions of Section 25 1 00(o) of the California Corporate
Securities Law of 1968.

      (q) "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3.

      (r) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

      (s) "OFFICER" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

      (t) "OPTION" means a stock option granted pursuant to the Plan.

      (u) "OPTION AGREEMENT" means a written agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option grant.
Each Option Agreement shall be subject to the terms and conditions of the Plan.

      (v) "OPTIONEE" means a person to whom an Option is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding Option.

      (w) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
the Treasury regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the
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Company or an "affiliated corporation" at any time, and is not currently
receiving direct or indirect remuneration from the Company or an "affiliated
corporation" for services in any capacity other than as a Director, or (ii) is
otherwise considered an "outside director" for purposes of Section 162(m) of the
Code.

      (x) "PLAN" means this 1997 Equity Incentive Plan.

      (y) "RULE 10-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect with respect to the Company at the time discretion is
being exercised regarding the Plan.

      (z) "SECURITIES ACT" means the Securities Act of 1933, as amended.

      (aa) "STOCK AWARD" means any right granted under the Plan, including any
Option, any stock bonus and any right to purchase restricted stock.

      (bb) "STOCK AWARD AGREEMENT" means a written agreement between the Company
and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

3. ADMINISTRATION.

      (a) The Plan shall be administered by the Board unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

      (b) The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

            (i) To determine from time to time which of the persons eligible
under the Plan shall be granted Stock Awards; when and how each Stock Award
shall be granted; whether a Stock Award will be an Incentive Stock Option, a
Nonstatutory Stock Option, a stock bonus, a right to purchase restricted stock,
or a combination of the foregoing; the provisions of each Stock Award granted
(which need not be identical), including the time or times when a person shall
be permitted to receive stock pursuant to a Stock Award; and the number of
shares with respect to which a Stock Award shall be granted to each such person.

            (ii) To construe and interpret the Plan and Stock Awards granted
under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

            (iii) To amend the Plan or a Stock Award as provided in Section 13.
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            (iv) Generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

      (c) The Board may delegate administration of the Plan to a committee of
the Board composed of not fewer than two (2) members (the "Committee"), all of
the members of which Committee may be, in the discretion of the Board,
Non-Employee Directors and/or Outside Directors. If administration is delegated
to a Committee, the Committee shall have, in connection with the administration
of the Plan, the powers theretofore possessed by the Board, including the power
to delegate to a subcommittee of two (2) or more Outside Directors any of the
administrative powers the Committee is authorized to exercise (and references in
this Plan to the Board shall thereafter be to the Committee or such a
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. Additionally, prior to the Listing Date, and
notwithstanding anything to the contrary contained herein, the Board may
delegate administration of the Plan to any person or persons and the term
"Committee" shall apply to any person or persons to whom such authority has been
delegated. Notwithstanding anything in this Section 3 to the contrary, the Board
or the Committee may delegate to a committee of one or more members of the Board
the authority to grant Stock Awards to eligible persons who (1) are not then
subject to Section 16 of the Exchange Act and/or (2) are either (i) not then
Covered Employees and are not expected to be Covered Employees at the time of
recognition of income resulting from such Stock Award, or (ii) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code.

4. SHARES SUBJECT TO THE PLAN.

      (a) Subject to the provisions of Section 12 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock Awards shall
not exceed in the aggregate three million four hundred forty three thousand six
hundred thirty (3,443,630) shares of the Company's common stock. If any Stock
Award shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, the stock not acquired under such Stock
Award shall revert to and again become available for issuance under the Plan.

      (b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

5. ELIGIBILITY.

      (a) Incentive Stock Options may be granted only to Employees. Stock Awards
other than Incentive Stock Options may be granted only to Employees, Directors
or Consultants.
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      (b) No person shall be eligible for the grant of an Option or an award to
purchase restricted stock if, at the time of grant, such person owns (or is
deemed to own pursuant to Section 424(d) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any of its Affiliates unless the exercise price of such Option
is at least one hundred ten percent (110%) of the Fair Market Value of such
stock at the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant, or in the case of a
restricted stock purchase award, the purchase price is at least one hundred
percent (100%) of the Fair Market Value of such stock at the date of grant.

      (c) Subject to the provisions of Section 12 relating to adjustments upon
changes in stock, no person shall be eligible to be granted Options covering
more than seven hundred thousand (700,000) shares of the Company's common stock
in any calendar year. This subsection 5(c) shall not apply prior to the Listing
Date and, following the Listing Date, shall not apply until (i) the earliest
of-. (A) the first material, modification of the Plan (including any increase to
the number of shares reserved for issuance under the Plan in accordance with
Section 4); (B) the issuance of all of the shares of common stock reserved for
issuance under the Plan; (C) the expiration of the Plan; or (D) the first
meeting of shareholders at which directors are to be elected that occurs after
the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security under section 12 of the
Exchange Act; or (ii) such other date required by Section 162(m) of the Code and
the rules and regulations promulgated thereunder.

6. OPTION PROVISIONS.

      Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

      (a) TERM. No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

      (b) PRICE. The exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the stock
subject to the Option on the date the Option is granted; the exercise price of
each Nonstatutory Stock Option shall be not less than eighty-five percent (85%)
of the Fair Market Value of the stock subject to the Option on the date the
Option is granted. Notwithstanding the foregoing, an Option (whether an
Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an
exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option
in a manner satisfying the provisions of Section 424(a) of the Code.

      (c) CONSIDERATION. The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in
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cash at the time the Option is exercised, or (ii) at the discretion of the Board
or the Committee, at the time of the grant of the Option, (A) by delivery to the
Company of other common stock of the Company, (B) according to a deferred
payment or other arrangement (which may include, without limiting the generality
of the foregoing, the use of other common stock of the Company) with the person
to whom the Option is granted or to whom the Option is transferred pursuant to
subsection 6(d), or (C) in any other form of legal consideration that may be
acceptable to the Board.

      In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

      (d) TRANSFERABILITY. An Option shall not be transferable except by will or
by the laws of descent and distribution, and shall be exercisable during the
lifetime of the person to whom the Option is granted only by such person. The
person to whom the Option is granted may, by delivering written notice to the
Company, in a form satisfactory to the Company, designate a third party who, in
the event of the death of the Optionee, shall thereafter be entitled to exercise
the Option.

      (e) VESTING. The total number of shares of stock subject to an Option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal). The Option Agreement may provide that from time to time during each of
such installment periods, the Option may become exercisable ("vest") with
respect to some or all of the shares allotted to that period, and may be
exercised with respect to some or all of the shares allotted to such period
and/or any prior period as to which the Option became vested but was not fully
exercised. The Option may be subject to such other terms and conditions on the
time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate. The vesting provisions of
individual Options may vary but in each case will provide for vesting of at
least twenty percent (20%) per year of the total number of shares subject to the
Option; provided, however, that an Option granted to an officer, director or
consultant (within the meaning of Section 260.140.41 of Title 10 of the
California Code of Regulations) may become fully exercisable, subject to
reasonable conditions such as continued employment, at any time or during any
period established by the Company or of any of its Affiliates. The provisions of
this subsection 6(e) are subject to any Option provisions governing the minimum
number of shares as to which an Option may be exercised.

      (f) TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR CONSULTANT.
In the event an Optionee's Continuous Status as an Employee, Director or
Consultant terminates (other than upon the Optionee's death or disability), the
Optionee may exercise his or her Option (to the extent that the Optionee was
entitled to exercise it as of the date of termination) but only within such
period of time ending on the earlier of (i) the date three (3) months following
the termination of the Optionee's Continuous Status as an Employee, Director or
Consultant (or such longer or shorter period, which shall not be less than
thirty (30) days, unless such termination is for cause, specified in the Option
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Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, at the date of termination, the Optionee is not entitled
to exercise his or her entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan. If, after termination, the Optionee does not exercise his or her
Option within the time specified in the Option Agreement, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

      An Optionee's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionee's Continuous Status as an
Employee, Director, or Consultant (other than upon the Optionee's death or
disability) would result in liability under Section 16(b) of the Exchange Act,
then the Option shall terminate on the earlier of (i) the expiration of the term
of the Option set forth in the Option Agreement, or (ii) the tenth (10th) day
after the last date on which such exercise would result in such liability under
Section 16(b) of the Exchange Act. Finally, an Optionee's Option Agreement may
also provide that if the exercise of the Option following the termination of the
Optionee's Continuous Status as an Employee, Director or Consultant (other than
upon the Optionee's death or disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (1) the
expiration of the ten-n of the Option set forth in the first paragraph of this
subsection 6(t), or (ii) the expiration of a period of three (3) months after
the termination of the Optionee's Continuous Status as an Employee, Director or
Consultant during which the exercise of the Option would not be in violation of
such registration requirements.

      (g) DISABILITY OF OPTIONEE. In the event an Optionee's Continuous Status
as an Employee, Director or Consultant terminates as a result of the Optionee's
disability, the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it as of the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period, which in no
event shall be less than six (6) months, specified in the Option Agreement), or
(ii) the expiration of the term of the Option as set forth in the Option
Agreement. If, at the date of termination, the Optionee is not entitled to
exercise his or her entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan. If, after termination, the Optionee does not exercise his or her
Option within the time specified herein, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan.

      (h) DEATH OF OPTIONEE. In the event of the death of an Optionee during, or
within a period specified in the Option Agreement after the termination of, the
Optionee's Continuous Status as an Employee, Director or Consultant, the Option
may be exercised (to the extent the Optionee was entitled to exercise the Option
as of the date of death) by the Optionee's estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionee's death pursuant to subsection 6(d),
but only within the period ending on the
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earlier of (i) the date eighteen (18) months following the date of death (or
such longer or shorter period, which in no event shall be less than six (6)
months, specified in the Option Agreement), or (ii) the expiration of the term
of such Option as set forth in the Option Agreement. If, at the time of death,
the Optionee was not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the Option shall revert to and again
become available for issuance under the Plan. If, after death, the Option is not
exercised within the time specified herein, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan.

      (i) EARLY EXERCISE. The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option. Any unvested shares so
purchased shall be subject to a repurchase right in favor of the Company, with
the repurchase price to be equal to the original purchase price of the stock, or
to any other restriction the Board determines to be appropriate; provided,
however, that (i) the right to repurchase at the original purchase price shall
lapse at a minimum rate of twenty percent (20%) per year over five (5) years
from the date the Option was granted, and (ii) such right shall be exercisable
only within (A) the ninety (90) day period following the termination of
employment or the relationship as a Director or Consultant, or (B) such longer
period as may be agreed to by the Company and the Optionee (for example, for
purposes of satisfying the requirements of Section 1202(c)(3) of the Code
(regarding "qualified small business stock")), and (iii) such right shall be
exercisable only for cash or cancellation of purchase money indebtedness for the
shares. Should the right of repurchase be assigned by the Company, the assignee
shall pay the Company cash equal to the difference between the original purchase
price and the stock's Fair Market Value if the original purchase price is less
than the stock's Fair Market Value. Notwithstanding the foregoing, shares
received on exercise of an Option by an officer, director or consultant (within
the meaning of Section 260.140.41 of Title 10 of the California Code of
Regulations) may be subject to additional or greater restrictions.

      (j) RIGHT OF REPURCHASE. The Option may, but need not, include a provision
whereby the Company may elect, prior to the Listing Date, or prior to the
occurrence of an event constituting a "Change in Control" as defined in
subsection 12(b) of the Plan, to repurchase all or any part of the vested shares
exercised pursuant to the Option; provided, however, that (i) such repurchase
right shall be exercisable only within (A) the ninety (90) day period following
the termination of employment or the relationship as a Director or Consultant
(or in the case of post-termination exercise of the Option the ninety (90) day
period following such post-termination exercise), or (B) such longer period as
may be agreed to by the Company and the Optionee (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code (regarding
"qualified small business stock")), (ii) such repurchase right shall be
exercisable for less than all of the vested shares only with the Optionee's
consent, and (iii) such right shall be exercisable only for cash or cancellation
of purchase money indebtedness for the shares at a repurchase price equal to the
greater of (A) the stock's Fair Market Value at the time of such termination or
(B) the original purchase price paid for such shares by the Optionee.
Notwithstanding
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the foregoing, shares received on exercise of an Option by an officer, director
or consultant (within the meaning of Section 260.140.41 of Title 10 of the
California Code of Regulations) may be subject to additional or greater
restrictions specified in the Option Agreement.

      (k) RIGHT OF FIRST REFUSAL. The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionee of the
intent to transfer all or any part of the shares exercised pursuant to the
Option.

      (l) RE-LOAD OPTIONS. Without in any way limiting the authority of the
Board or Committee to make or not to make grants of Options hereunder, the Board
or Committee shall have the authority (but not an obligation) to include as part
of any Option Agreement a provision entitling the Optionee to a further Option
(a "Re-Load Option") in the event the Optionee exercises the Option evidenced by
the Option agreement, in whole or in part, by surrendering other shares of
Common Stock in accordance with this Plan and the terms and conditions of the
Option Agreement. Any such Re-Load Option (i) shall be for a number of shares
equal to the number of shares surrendered as part or all of the exercise price
of such Option; (ii) shall have an expiration date which is the same as the
expiration date of the Option the exercise of which gave rise to such Re-Load
Option; and (iii) shall have an exercise price which is equal to one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the
Re-Load Option on the date of exercise of the original Option. Notwithstanding
the foregoing, a Re-Load Option which is granted to a 10% shareholder (as
described in subsection 5(b)), shall have an exercise price which is equal to
one hundred ten percent (110%) of the Fair Market Value of the stock subject to
the Re-Load Option on the date of exercise of the original Option and shall have
a term which is no longer than five (5) years.

      Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory
Stock Option, as the Board or Committee may designate at the time of the grant
of the original Option; provided, however, that the designation of any Re-Load
Option as an Incentive Stock Option shall be subject to the one hundred thousand
dollar ($100,000) annual limitation on exercisability of Incentive Stock Options
described in subsection 12(e) of the Plan and in Section 422(d) of the Code.
There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option
shall be subject to the availability of sufficient shares under subsection 4(a)
and the limits on the grants of Options under subsection 5(c) and shall be
subject to such other terms and conditions as the Board or Committee may
determine which are not inconsistent with the express provisions of the Plan
regarding the terms of Options.

7. TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.

      Each stock bonus or restricted stock purchase agreement shall be in such
form and shall contain such terms and conditions as the Board or the Committee
shall deem appropriate. The terms and conditions of stock bonus or restricted
stock purchase agreements may change from time to time, and the terms and
conditions of separate
<PAGE>
agreements need not be identical, but each stock bonus or restricted stock
purchase agreement shall include (through incorporation of provisions hereof by
reference in the agreement or otherwise) the substance of each of the following
provisions as appropriate:

      (a) PURCHASE PRICE. The purchase price under each restricted stock
purchase agreement shall be such amount as the Board or Committee shall
determine and designate in such Stock Award Agreement, but in no event shall the
purchase price be less than eighty-five percent (85%) of the stock's Fair Market
Value on the date such award is made. Notwithstanding the foregoing, the Board
or the Committee may determine that eligible participants in the Plan may be
awarded stock. pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

      (b) TRANSFERABILITY. Rights under a stock bonus or restricted stock
purchase agreement shall be transferable by the grantee only upon such terms and
conditions as are set forth in the applicable Stock Award Agreement, as the
Board or the Committee shall determine in its discretion, so long as stock
awarded under such Stock Award Agreement remains subject to the terms of the
agreement.

      (c) CONSIDERATION. The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either: (i) in cash at the time of
purchase; (ii) at the discretion of the Board or the Committee, according to a
deferred payment or other arrangement with the person to whom the stock is sold;
or (iii) in any other form of legal consideration that may be acceptable to the
Board or the Committee in its discretion. Notwithstanding the foregoing, the
Board or the Committee to which administration of the Plan has been delegated
may award stock pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

      (d) VESTING. Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board or the Committee. The
applicable agreement shall provide (i) that the right to repurchase at the
original purchase price (or, in the case of a stock bonus, Fair Market Value on
the grant date) shall lapse at a minimum rate of twenty percent (20%) per year
over five (5) years from the date the Stock Award was granted (except that a
Stock Award granted to an officer, director or consultant (within the meaning of
Section 260.140.41 of Title 10 of the California Code of Regulations) may become
fully vested, subject to reasonable conditions such as continued employment, at
any time or during any period established by the Company or of any of its
Affiliates), and (ii) such right shall be exercisable only (A) within the ninety
(90) day period following the termination of employment or the relationship as a
Director or Consultant, or (B) such longer period as may be agreed to by the
Company and the holder of the Stock Award (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code (regarding
"qualified small business stock")), and (iii) such right shall be exercisable
only for cash or cancellation of purchase money indebtedness for the shares.
Should the right of repurchase be assigned by the Company, the assignee shall
pay the Company cash equal to the difference between the original purchase price
and the stock's
<PAGE>
Fair Market Value if the original purchase price is less than the stock's Fair
Market Value.

      (e) TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR CONSULTANT.
In the event a Participant's Continuous Status as an Employee, Director or
Consultant terminates, the Company may repurchase or otherwise reacquire,
subject to the limitations described in subsection 7(d), any or all of the
shares of stock held by that person which have not vested as of the date of
termination under the terms of the stock bonus or restricted stock purchase
agreement between the Company and such person.

      (f) RIGHT OF REPURCHASE. The stock bonus or restricted stock purchase
agreement may, but need not, include a provision whereby the Company may elect,
prior to the Listing Date, or prior to the occurrence of an event constituting a
"Change in Control" as defined in subsection 12(b) of the Plan, to repurchase
all or any part of the vested shares received pursuant to the stock bonus or
restricted stock purchase agreement; provided, however, that (i) such repurchase
right shall be exercisable only within (A) the ninety (90) day period following
the termination of employment or the relationship as a Director or Consultant,
or (B) such longer period as may be agreed to by the Company and the grantee
(for example, for purposes of satisfying the requirements of Section 1202(c)(3)
of the Code (regarding "qualified small business stock")), (ii) such repurchase
right shall be exercisable for less than all of the vested shares only with the
grantee's consent, and (iii) such right shall be exercisable only for cash or
cancellation of purchase money indebtedness for the shares at a repurchase price
equal to the greater of (A) the stock's Fair Market Value at the time of such
termination or (B) the original purchase price paid for such shares by the
grantee (or in the case of a stock bonus, Fair Market Value on the grant date).

8. CANCELLATION AND RE-GRANT OF OPTIONS.

      (a) The Board or the Committee shall have the authority to effect, at any
time and from time to time, (i) the repricing of any outstanding Options under
the Plan and/or (ii) with the consent of the affected holders of Options, the
cancellation of any outstanding Options under the Plan and the grant in
substitution therefor of new Options under the Plan covering the same or
different numbers of shares of stock, but having an exercise price per share not
less than eighty-five percent (85%) of the Fair Market Value (one hundred
percent (100%) of the Fair Market Value in the case of an Incentive Stock
Option) or, in the case of a 10% shareholder (as described in subsection 5(b)),
not less than one hundred ten percent (110%) of the Fair Market Value) per share
of stock on the new grant date. Notwithstanding the foregoing, the Board or the
Committee may grant an Option with an exercise price lower than that set forth
above if such Option is granted as part of a transaction to which section 424(a)
of the Code applies.

      (b) Shares subject to an Option canceled under this Section 8 shall
continue to be counted against the maximum award of Options permitted to be
granted pursuant to subsection 5(c) of the Plan. The repricing of an Option
under this Section 8, resulting in a reduction of the exercise price, shall be
deemed to be a cancellation of the original Option
<PAGE>
and the grant of a substitute Option; in the event of such repricing, both the
original and the substituted Options shall be counted against the maximum awards
of Options permitted to be granted pursuant to subsection 5(c) of the Plan. The
provisions of this subsection 8(b) shall be applicable only to the extent
required by Section 162(m) of the Code.

9. COVENANTS OF THE COMPANY.

      (a) During the terms of the Stock Awards, the Company shall keep available
at all times the number of shares of stock required to satisfy such Stock
Awards.

      (b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Stock Award; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act either the Plan, any Stock Award or any stock issued or
issuable pursuant to any such Stock Award. If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such Stock Awards
unless and until such authority is obtained.

10. USE OF PROCEEDS FROM STOCK.

      Proceeds from the sale of stock pursuant to Stock Awards shall constitute
general funds of the Company.

11. MISCELLANEOUS.

      (a) Subject to any applicable provisions of the California Corporate
Securities Law of 1968 and related regulations relied upon as a condition of
issuing securities pursuant to the Plan, the Board shall have the power to
accelerate the time at which a Stock Award may first be exercised or the time
during which a Stock Award or any part thereof will vest pursuant to subsection
6(e) or 7(d), notwithstanding the provisions in the Stock Award stating the time
at which it may first be exercised or the time during which it will vest.

      (b) Neither an Employee, Director or Consultant nor any person to whom a
Stock Award is transferred under subsection 6(d) or 7(b) shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any
shares subject to such Stock Award unless and until such person has satisfied
all requirements for exercise of the Stock Award pursuant to its terms.

      (c) Throughout the term of any Stock Award, the Company shall deliver to
the holder of such Stock Award, not later than one hundred twenty (120) days
after the close of each of the Company's fiscal years during the term of such
Stock Award, a balance sheet and an income statement. This subsection shall not
apply (i) after the Listing Date,
<PAGE>
or (11) when issuance is limited to key employees whose duties in connection
with the Company assure them access to equivalent information. The Company shall
comply with other information delivery requirements as applicable, including,
but not limited to, Rule 428 of the Securities Act.

      (d) Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Employee, Director, Consultant or other
holder of Stock Awards any right to continue in the employ of the Company or any
Affiliate (or to continue acting as a Director or Consultant) or shall affect
the right of the Company or any Affiliate to terminate the employment of any
Employee with or without cause the right of the Company's Board of Directors
and/or the Company's shareholders to remove any Director as provided in the
Company's By-Laws and the provisions of the California Corporations Code, or the
right to terminate the relationship of any Consultant subject to the terms of
such Consultant's agreement with the Company or Affiliate.

      (e) To the extent that the aggregate Fair Market Value (determined at the
time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time by any Optionee during any calendar year under
all plans of the Company and its Affiliates exceeds one hundred thousand dollars
($100,000), the Options or portions thereof which exceed such limit (according
to the order in which they were granted) shall be treated as Nonstatutory Stock
Options.

      (f) The Company may require any person to whom a Stock Award is granted,
or any person to whom a Stock Award is transferred pursuant to subsection 6(d)
or 7(b), as a condition of exercising or acquiring stock under any Stock Award,
(1) to give written assurances satisfactory to the Company as to such person's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters, and that such
person is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (2) to
give written assurances satisfactory to the Company stating that such person is
acquiring the stock subject to the Stock Award for such person's own account and
not with any present intention of selling or otherwise distributing the stock.
The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (i) the issuance of the shares upon the
exercise or acquisition of stock under the Stock Award has been registered under
a then currently effective registration statement under the Securities Act, or
(ii) as to any particular requirement, a determination is made by counsel for
the Company that such requirement need not be met in the circumstances under the
then applicable securities laws. The Company may, upon advice of counsel to the
Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the transfer
of the stock.

      (g) To the extent provided by the terms of a Stock Award Agreement, the
person to whom a Stock Award is granted may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of stock
under a Stock Award by any of
<PAGE>
the following means or by a combination of such means: (1) tendering a cash
payment; (2) authorizing the Company to withhold shares from the shares of the
common stock otherwise issuable to the participant as a result of the exercise
or acquisition of stock under the Stock Award; or (3) delivering to the Company
owned and unencumbered shares of the common stock of the Company.

12. ADJUSTMENTS UPON CHANGES IN STOCK.

      (a) If any change is made in the stock subject to the Plan, or subject to
any Stock Award (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the type(s) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person during any calendar year pursuant to subsection 5(c), and
the outstanding Stock Awards will be appropriately adjusted in the type(s) and
number of securities and price per share of stock subject to such outstanding
Stock Awards. Such adjustments shall be made by the Board or the Committee, the
determination of which shall be final, binding and conclusive. (The conversion
of any convertible securities of the Company shall not be treated as a
"transaction not involving the receipt of consideration by the Company".)

      (b) In the event of: (1) a dissolution, liquidation or sale of all or
substantially all of the assets of the Company; (2) a merger or consolidation in
which the Company is not the surviving corporation; or (3) a reverse merger in
which the Company is the surviving corporation but the shares of the Company's
common stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash or otherwise (each event, a "Corporate Transaction"); then: (i) any
surviving corporation or acquiring corporation shall assume any Stock Awards
outstanding under the Plan or shall substitute similar stock awards (including
an award to acquire the same consideration paid to the stockholders in the
transaction described in this subsection 13(b)) for those outstanding under the
Plan, or (ii) in the event any surviving corporation or acquiring corporation
refuses to assume such Stock Awards or to substitute similar stock awards for
those outstanding under the Plan, (A) with respect to Stock Awards held by
persons then performing services as Employees, Directors or Consultants and
subject to any applicable provisions of the California Corporate Securities Law
of 1968 and related regulations relied upon as a condition of issuing securities
pursuant to the Plan, the vesting of such Stock Awards (and, if applicable, the
time during which such Stock Awards may be exercised) shall be accelerated prior
to such event and the Stock Awards terminated if not exercised (if applicable)
after such acceleration and at or prior to such event, and (B) with respect to
any other Stock Awards outstanding under the Plan, such Stock Awards shall be
terminated if not exercised (if applicable) prior to such event. To the extent
that any surviving corporation or successor acquiring corporation assumes any
Stock Awards outstanding under the Plan or substitutes similar stock awards for
those outstanding under the Plan, then such Stock
<PAGE>
Award (if assumed) or replacement stock award (if replaced) automatically shall
become fully vested and exercisable and be released from any restrictions on
transfer (other than transfer restrictions applicable to Options) and repurchase
or forfeiture rights, immediately upon termination of such individual's
Continuous Status as an Employee, Director or Consultant (substituting the
successor employer corporation for "Company" or "Affiliate" for the definition
of "Continuous Status as an Employee, Director or Consultant") if such
Continuous Status as an Employee, Director or Consultant is terminated by the
successor company without Cause or voluntarily by the Optionee with Good Reason
within two (2) years of the Corporate Transaction.

13. AMENDMENT OF THE PLAN AND STOCK AWARDS.

      (a) The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 12 relating to adjustments upon changes
in stock, no amendment shall be effective unless approved by the shareholders of
the Company within twelve (12) months before or after the adoption of the
amendment, where the amendment will:

            (1) Increase the number of shares reserved for Stock Awards under
the Plan;

            (2) Modify the requirements as to eligibility for participation in
the Plan (to the extent such modification requires shareholder approval in order
for the Plan to satisfy the requirements of Section 422 of the Code); or

            (3) Modify the Plan in any other way if such modification requires
shareholder approval in order for the Plan to satisfy the requirements of
Section 422 of the Code or to comply with the requirements of Rule 16b-3.

      (b) The Board may in its sole discretion submit any other amendment to the
Plan for shareholder approval, including, but not limited to, amendments to the
Plan intended to satisfy the requirements of Section 162(m) of the Code and the
regulations promulgated thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to
certain executive officers.

      (c) It is expressly contemplated that the Board may amend the Plan in any
respect the Board deems necessary or advisable to provide eligible Employees
with the maximum benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to Incentive Stock
Options and/or to bring the Plan and/or Incentive Stock Options granted under it
into compliance therewith.

      (d) Rights and obligations under any Stock Award granted before amendment
of the Plan shall not be impaired by any amendment of the Plan unless (i) the
Company requests the consent of the person to whom the Stock Award was granted
and (ii) such person consents in writing.
<PAGE>
      (e) The Board at any time, and from time to time, may amend the terms of
any one or more Stock Award; provided, however, that the rights and obligations
under any Stock Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the person to whom the Stock Award was granted
and (ii) such person consents in writing.

14. TERMINATION OR SUSPENSION OF THE PLAN.

      (a) The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate ten (10) years from the date the Plan is
adopted by the Board or approved by the shareholders of the Company, whichever
is earlier. No Stock Awards may be granted under the Plan while the Plan is
suspended or after it is terminated.

      (b) Rights and obligations under any Stock Award granted while the Plan is
in effect shall not be impaired by suspension or termination of the Plan, except
with the written consent of the person to whom the Stock Award was granted.

15. EFFECTIVE DATE OF PLAN.

      The Plan shall become effective as determined by the Board, but no Options
granted under the Plan shall be exercised and no shares of the Company's common
stock subject to other Stock Awards shall be sold, disposed, or otherwise
transferred unless and until the Plan has been approved by the shareholders of
the Company, which approval shall be within twelve (12) months before or after
the date the Plan is adopted by the Board.<PAGE>
                                                                    Exhibit 10.3

                        DYNAVAX TECHNOLOGIES CORPORATION

                        2004 EMPLOYEE STOCK PURCHASE PLAN

      The following constitute the provisions of the 2004 Employee Stock
Purchase Plan of Dynavax Technologies Corporation.

      1. Purpose. The purpose of the Plan is to provide Employees of the Company
and its Designated Parents or Subsidiaries with an opportunity to purchase
Common Stock of the Company through accumulated payroll deductions. It is the
intention of the Company to have the Plan qualify as an "Employee Stock Purchase
Plan" under Section 423 of the Code and the applicable regulations thereunder.
The provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that Section
423 of the Code.

      2. Definitions. As used herein, the following definitions shall apply:

            (a) "Administrator" means either the Board or a committee of the
Board that is responsible for the administration of the Plan as is designated
from time to time by resolution of the Board.

            (b) "Applicable Laws" means the legal requirements relating to the
administration of employee stock purchase plans, if any, under applicable
provisions of federal securities laws, state corporate and securities laws, the
Code and the applicable regulations thereunder, the rules of any applicable
stock exchange or national market system, and the rules of any foreign
jurisdiction applicable to participation in the Plan by residents therein.

            (c) "Board" means the Board of Directors of the Company.

            (d) "Code" means the Internal Revenue Code of 1986, as amended.

            (e) "Common Stock" means the common stock of the Company.

            (f) "Company" means Dynavax Technologies Corporation, a Delaware
corporation.

            (g) "Compensation" means an Employee's base salary from the Company
or one or more Designated Parents or Subsidiaries, including such amounts of
base salary as are deferred by the Employee (i) under a qualified cash or
deferred arrangement described in Section 401(k) of the Code, or (ii) to a plan
qualified under Section 125 of the Code. Compensation does not include overtime,
bonuses, annual awards, other incentive payments, reimbursements or other
expense allowances, fringe benefits (cash or noncash), moving expenses, deferred
compensation, contributions (other than contributions described in the first
sentence) made on the Employee's behalf by the Company or one or more Designated
Parents or Subsidiaries under any employee benefit or welfare plan now or
hereafter established, and any other payments not specifically referenced in the
first sentence.

            (h) "Corporate Transaction" means any of the following transactions:

                                       1
<PAGE>
                  (1) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                  (2) the sale, transfer or other disposition of all or
substantially all of the assets of the Company (including the capital stock of
the Company's subsidiary corporations);

                  (3) the complete liquidation or dissolution of the Company;

                  (4) any reverse merger or series of related transactions
culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but
in which securities possessing more than forty percent (40%) of the total
combined voting power of the Company's outstanding securities are transferred to
a person or persons different from those who held such securities immediately
prior to such merger or the initial transaction culminating in such merger but
excluding any such transaction or series of related transactions that the
Administrator determines shall not be a Corporate Transaction; or

                  (5) acquisition in a single or series of related transactions
by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company's
outstanding securities but excluding any such transaction or series of related
transactions that the Administrator determines shall not be a Corporate
Transaction.

            (i) "Designated Parents or Subsidiaries" means the Parents or
Subsidiaries which have been designated by the Administrator from time to time
as eligible to participate in the Plan.

            (j) "Effective Date" means the effective date of the Registration
Statement relating to the Company's initial public offering of its Common Stock.
However, should any Parent or Subsidiary become a Designated Parent or
Subsidiary after such date, then the Administrator, in its discretion, shall
designate a separate Effective Date with respect to the employee-participants of
such Designated Parent or Subsidiary.

            (k) "Employee" means any individual, including an officer or
director, who is an employee of the Company or a Designated Parent or Subsidiary
for purposes of Section 423 of the Code. For purposes of the Plan, the
employment relationship shall be treated as continuing intact while the
individual is on sick leave or other leave of absence approved by the
individual's employer. Where the period of leave exceeds ninety (90) days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship will be deemed to have terminated on the
ninety-first (91st) day of such leave, for purposes of determining eligibility
to participate in the Plan.

            (l) "Enrollment Date" means the first day of each Offer Period.

            (m) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                                       2
<PAGE>
            (n) "Exercise Date" means the last day of each Purchase Period.

            (o) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (1) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date of determination (or, if no closing sales price or closing bid was
reported on that date, as applicable, on the last trading date such closing
sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable;

                  (2) If the Common Stock is regularly quoted on an automated
quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, its Fair Market Value shall be the closing sales price for
such stock as quoted on such system on the date of determination, but if selling
prices are not reported, the Fair Market Value of a share of Common Stock shall
be the mean between the high bid and low asked prices for the Common Stock on
the date of determination (or, if no such prices were reported on that date, on
the last date such prices were reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable; or

                  (3) In the absence of an established market for the Common
Stock of the type described in (1) and (2), above, the Fair Market Value thereof
shall be determined by the Administrator in good faith.

                  (4) On the initial Effective Date of the Plan, the Fair Market
Value shall be the price at which the Board, or if applicable, the Pricing
Committee of the Board, and the underwriters agree to offer the Common Stock to
the public in the initial public offering of the Common Stock.

            (p) "Offer Period" means an Offer Period established pursuant to
Section 4 hereof.

            (q) "Parent" means a "parent corporation" of the Company, whether
now or hereafter existing, as defined in Section 424(e) of the Code.

            (r) "Participant" means an Employee of the Company or Designated
Parent or Subsidiary who has completed a subscription agreement as set forth in
Section 5(a) and is thereby enrolled in the Plan.

            (s) "Plan" means this Employee Stock Purchase Plan.

            (t) "Purchase Period" means a period of approximately six months,
commencing on February 15 and August 15 of each year and terminating on the next
following August 14 or February 14, respectively; provided, however, that the
first Purchase Period shall commence on the Effective Date and shall end on
August 14, 2004.

                                       3
<PAGE>
            (u) "Purchase Price" shall mean an amount equal to 85% of the Fair
Market Value of a share of Common Stock on the Enrollment Date or on the
Exercise Date, whichever is lower.

            (v) "Reserves" means, as of any date, the sum of (1) the number of
shares of Common Stock covered by each then outstanding option under the Plan
which has not yet been exercised and (2) the number of shares of Common Stock
which have been authorized for issuance under the Plan but not then subject to
an outstanding option.

            (w) "Subsidiary" means a "subsidiary corporation" of the Company,
whether now or hereafter existing, as defined in Section 424(f) of the Code.

      3. Eligibility.

            (a) General. Any individual who is an Employee on a given Enrollment
Date shall be eligible to participate in the Plan for the Offer Period
commencing with such Enrollment Date. No individual who is not an Employee shall
be eligible to participate in the Plan.

            (b) Limitations on Grant and Accrual. Any provisions of the Plan to
the contrary notwithstanding, no Employee shall be granted an option under the
Plan (i) if, immediately after the grant, such Employee (taking into account
stock owned by any other person whose stock would be attributed to such Employee
pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding
options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or of any
Parent or Subsidiary, or (ii) which permits the Employee's rights to purchase
stock under all employee stock purchase plans of the Company and its Parents or
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
(US$25,000) worth of stock (determined at the Fair Market Value of the shares at
the time such option is granted) for each calendar year in which such option is
outstanding at any time. The determination of the accrual of the right to
purchase stock shall be made in accordance with Section 423(b)(8) of the Code
and the regulations thereunder.

            (c) Other Limits on Eligibility. Notwithstanding SubSection (a),
above, the following Employees shall not be eligible to participate in the Plan
for any relevant Offer Period: (i) Employees whose customary employment is 20
hours or less per week; (ii) Employees whose customary employment is for not
more than 5 months in any calendar year; and (iii) Employees who are subject to
rules or laws of a foreign jurisdiction that prohibit or make impractical the
participation of such Employees in the Plan.

      4. Offer Periods.

            (a) The Plan shall be implemented through overlapping or consecutive
Offer Periods until such time as (i) the maximum number of shares of Common
Stock available for issuance under the Plan shall have been purchased or (ii)
the Plan shall have been sooner terminated in accordance with Section 19 hereof.
The maximum duration of an Offer Period shall be twenty-seven (27) months.
Initially, the Plan shall be implemented through overlapping Offer Periods of
twenty-four (24) months' duration commencing each February 15 and

                                       4
<PAGE>
August 15 following the Effective Date (except that the initial Offer Period
shall commence on the Effective Date and shall end on February 14, 2006).

            (b) A Participant shall be granted a separate option for each Offer
Period in which he or she participates. The option shall be granted on the
Enrollment Date and shall be automatically exercised in successive installments
on the Exercise Dates ending within the Offer Period.

            (c) If on the first day of any Purchase Period in an Offer Period in
which an Employee is a Participant, the Fair Market Value of the Common Stock is
less than the Fair Market Value of the Common Stock on the Enrollment Date of
the Offer Period (after taking into account any adjustment during the Offer
Period pursuant to Section 18(a)), the Offer Period shall be terminated
automatically and the Participant shall be enrolled automatically in the new
Offer Period which has its first Purchase Period commencing on that date,
provided the Employee is eligible to participate in the Plan on that date and
has not elected to terminate participation in the Plan.

            (d) Except as specifically provided herein, the acquisition of
Common Stock through participation in the Plan for any Offer Period shall
neither limit nor require the acquisition of Common Stock by a Participant in
any subsequent Offer Period.

      5. Participation.

            (a) All Employees eligible to participate in the Plan as of the
first Enrollment Date of the Plan shall automatically become a Participant in
the initial Offer Period and be eligible to make a direct payment for shares of
the Common Stock on the Exercise Date of the first Purchase Period of the
initial Offer Period in an amount equal to the lesser of the aggregate Purchase
Price for 2,500 shares of the Common Stock or ten percent (10%) of the
Compensation that he or she receives during the first Purchase Period of the
initial Offer Period, unless a change of status notice in the form of Exhibit C
(or such other form or method (including electronic forms) as the Administrator
may designate from time to time) is filed to the contrary or the Participant
withdraws from the Plan as provided in Section 10. No subscription agreement
need be filed by the Participant with the Company in order to participate in the
initial Offer Period.

            (b) After the initial Offer Period, an eligible Employee may become
a Participant in the Plan by completing a subscription agreement authorizing
payroll deductions in the form of Exhibit A to this Plan (or such other form or
method (including electronic forms) as the Administrator may designate from time
to time) and filing it with the designated payroll office of the Company at
least five (5) business days prior to the Enrollment Date for the Offer Period
in which such participation will commence, unless a later time for filing the
subscription agreement is set by the Administrator for all eligible Employees
with respect to a given Offer Period.

            (c) No payroll deductions shall be made for Participants during the
first Purchase Period of the initial Offer Period, unless a change of status
notice in the form of Exhibit C to this Plan (or such other form or method
(including electronic forms) as the Administrator may designate from time to
time) authorizing the commencement of payroll

                                       5
<PAGE>
deductions is filed by the Participant with the Company after a registration
statement on Form S-8 has been filed with the Securities Exchange Commission
with respect to the shares being offered under the Plan. If so elected, the rate
of payroll deductions during the first Purchase Period of the initial Offer
Period may exceed the maximum permitted rate under Section 6(a) to make-up for
missed payroll deductions that would otherwise have been made prior to the
filing of the Form S-8 with respect to the Plan. Payroll deductions for a
Participant in the initial Offer Period shall commence at the rate elected by
the Participant under Section 6(a) with the first partial or full payroll period
beginning on the first day of the second Purchase Period of the initial Offer
Period and shall end on the last complete payroll period during the initial
Offer Period, unless a change of status notice in the form of Exhibit B (or such
other form or method (including electronic forms) as the Administrator may
designate from time to time) is filed to the contrary or the Participant
withdraws from the Plan as provided in Section 10. No direct payment for shares
shall be permitted after the first Purchase Period of the initial Offer Period.
Therefore, Participants in the initial Offer Period must file the change of
status notice in the form of Exhibit C to this Plan (or such other form or
method (including electronic forms) as the Administrator may designate from time
to time) prior to the commencement of the second Purchase Period of the initial
Offer Period to assure maximum participation rights under the Plan.

            (d) For Offer Periods, other than the initial Offer Period, payroll
deductions for a Participant shall commence with the first partial or full
payroll period beginning on the Enrollment Date and shall end on the last
complete payroll period during the Offer Period, unless sooner terminated by the
Participant as provided in Section 10.

      6. Payroll Deductions.

            (a) At the time a Participant files a subscription agreement, the
Participant shall elect to have payroll deductions made during the Offer Period
in amounts between one percent (1%) and not exceeding ten percent (10%) of the
Compensation which the Participant receives during the Offer Period.

            (b) All payroll deductions made for a Participant shall be credited
to the Participant's account under the Plan and will be withheld in whole
percentages only. A Participant may not make any additional payments into such
account.

            (c) A Participant may discontinue participation in the Plan as
provided in Section 10, or may increase or decrease the rate of payroll
deductions during the Offer Period by completing and filing with the Company a
change of status notice in the form of Exhibit B to this Plan (or such other
form or method (including electronic forms) as the Administrator may designate
from time to time) authorizing an increase or decrease in the payroll deduction
rate. During the first Purchase Period of the initial Offer Period, a
Participant may discontinue participation in the Plan as provided in Section 10
or initiate payroll deductions by completing and filing with the Company a
change of status notice in the form of Exhibit C to this Plan (or such other
form or method (including electronic forms) as the Administrator may designate
from time to time). Any increase or decrease in the rate of a Participant's
payroll deductions shall be effective with the first full payroll period
commencing five (5) business days after the Company's receipt of the change of
status notice unless the Company elects to process a given

                                       6
<PAGE>
change in participation more quickly. A Participant's subscription agreement (as
modified by any change of status notice) shall remain in effect for successive
Offer Periods unless terminated as provided in Section 10. The Administrator
shall be authorized to limit the number of payroll deduction rate changes during
any Offer Period.

            (d) Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) herein, a Participant's
payroll deductions shall be decreased to 0%. Payroll deductions shall recommence
at the rate provided in such Participant's subscription agreement, as amended,
at the time when permitted under Section 423(b)(8) of the Code and Section 3(b)
herein, unless such participation is sooner terminated by the Participant as
provided in Section 10.

      7. Grant of Option. On the Enrollment Date, each Participant shall be
granted an option to purchase (at the applicable Purchase Price) 10,000 shares
of the Common Stock, subject to adjustment as provided in Section 18 hereof;
provided (i) that such option shall be subject to the limitations set forth in
Sections 3(b), 6 and 12 hereof, and (ii) the maximum number of shares of Common
Stock a Participant shall be permitted to purchase in any Purchase Period shall
be 2,500 shares, subject to adjustment as provided in Section 18 hereof.1
Exercise of the option shall occur as provided in Section 8, unless the
Participant has withdrawn pursuant to Section 10, and the option, to the extent
not exercised, shall expire on the last day of the Offer Period with respect to
which such option was granted. Notwithstanding the foregoing, shares subject to
the option may only be purchased with accumulated payroll deductions credited to
a Participant's account in accordance with Section 6 of the Plan. In addition,
to the extent an option is not exercised on each Purchase Date, the option shall
lapse and thereafter cease to be exercisable.

      8. Exercise of Option. Unless a Participant withdraws from the Plan as
provided in Section 10, below, the Participant's option for the purchase of
shares of Common Stock will be exercised automatically on each Exercise Date, by
applying the accumulated payroll deductions in the Participant's account to
purchase the number of full shares subject to the option by dividing such
Participant's payroll deductions accumulated prior to such Exercise Date and
retained in the Participant's account as of the Exercise Date by the applicable
Purchase Price, provided, however, that if a Participant is eligible to purchase
any shares on the first Exercise Date of the initial Offer Period by direct
payment, the Participant's option for the purchase of shares will be exercised
to the extent possible by applying the direct payment amount made by the
Participant to purchase the number of full shares subject to the option by
dividing such direct payment amount by the applicable Purchase Price and,
provided, further, in no event may the accumulated payroll deductions and direct
payment amounts applied to the purchase of shares on the first Exercise Date of
the initial Offer Period exceed the amount specified in Section 5(a). No
fractional shares will be purchased; any payroll deductions accumulated in a
Participant's account which are not sufficient to purchase a full share shall be
carried over to the next Purchase Period or Offer Period, whichever applies, or
returned to the Participant, if the Participant withdraws from the Plan. Any
direct payment amounts which are not sufficient to purchase a full share shall
be returned to the Participant. Notwithstanding the foregoing, any amount
remaining in a Participant's account or any excess direct payment amount
following the

--------
1     All Share numbers in the Plan reflect the one-for-three reverse stock
      split which occurred on _________, 2004.

                                       7
<PAGE>
purchase of shares on the Exercise Date due to the application of Section
423(b)(8) of the Code or Section 7, above, shall be returned to the Participant
and shall not be carried over to the next Offer Period or Purchase Period.
During a Participant's lifetime, a Participant's option to purchase shares
hereunder is exercisable only by the Participant.

      9. Delivery. Upon receipt of a request from a Participant after each
Exercise Date on which a purchase of shares occurs, the Company shall arrange
the delivery to such Participant, as promptly as practicable, of a certificate
representing the shares purchased upon exercise of the Participant's option.

      10. Withdrawal; Termination of Employment.

            (a) A Participant may either (i) withdraw all but not less than all
the payroll deductions credited to the Participant's account and not yet used to
exercise the Participant's option under the Plan or (ii) terminate future
payroll deductions, but allow accumulated payroll deductions to be used to
exercise the Participant's option under the Plan at any time by giving written
notice to the Company in the form of Exhibit B to this Plan (or such other form
or method (including electronic forms) as the Administrator may designate from
time to time). During the first Purchase Period of the initial Offer Period, a
Participant may elect to withdraw from the Plan and not purchase shares by
direct payment by giving written notice to the Company in the form of Exhibit C
to this Plan (or such other form or method (including electronic forms) as the
Administrator may designate from time to time). If the Participant elects
withdrawal alternative (i) described above, all of the Participant's payroll
deductions credited to the Participant's account will be paid to such
Participant as promptly as practicable after receipt of notice of withdrawal,
such Participant's option for the Offer Period will be automatically terminated,
and no further payroll deductions for the purchase of shares will be made during
the Offer Period. If the Participant elects withdrawal alternative (ii)
described above, no further payroll deductions for the purchase of shares will
be made during the Offer Period, all of the Participant's payroll deductions
credited to the Participant's account will be applied to the exercise of the
Participant's option on the next Exercise Date (subject to Sections 3(b), 6, 7
and 12), and after such Exercise Date, such Participant's option for the Offer
Period will be automatically terminated and all remaining accumulated payroll
deduction amounts shall be returned to the Participant. If a Participant
withdraws from an Offer Period, payroll deductions will not resume at the
beginning of the succeeding Offer Period unless the Participant delivers to the
Company a new subscription agreement.

            (b) Upon termination of a Participant's employment relationship (as
described in Section 2(k)) at a time more than three (3) months from the next
scheduled Exercise Date, the payroll deductions credited to such Participant's
account during the Offer Period but not yet used to exercise the option will be
returned to such Participant or, in the case of his/her death, to the person or
persons entitled thereto under Section 14, and such Participant's option will be
automatically terminated without exercise of any portion of such option. Upon
termination of a Participant's employment relationship (as described in Section
2(k)) within three (3) months of the next scheduled Exercise Date, the payroll
deductions credited to such Participant's account during the Offer Period but
not yet used to exercise the option will be applied to the purchase of Common
Stock on the next Exercise Date, unless the Participant (or in the case of the
Participant's death, the person or persons entitled to the Participant's account
balance under

                                       8
<PAGE>
Section 14) withdraws from the Plan by submitting a change of status notice in
accordance with subSection (a) of this Section 10. In such a case, no further
payroll deductions will be credited to the Participant's account following the
Participant's termination of employment and the Participant's option under the
Plan will be automatically terminated after the purchase of Common Stock on the
next scheduled Exercise Date.

      11. Interest. No interest shall accrue on the payroll deductions credited
to a Participant's account under the Plan.

      12. Stock.

            (a) Subject to adjustment upon changes in capitalization of the
Company as provided in Section 18, the maximum number of shares of Common Stock
which shall be made available for sale under the Plan shall be 250,000 shares,
plus an annual increase to be added on the first business day of each Calendar
year beginning in 2005 equal to the lesser of (i) 250,000 shares, (ii) one
percent (1%) of the outstanding shares of Common Stock on such date, or (iii) a
lesser number of shares determined by the Administrator.2 With respect to any
amendment to increase the total number of shares of Common Stock under the Plan,
the Administrator shall have discretion to disallow the purchase of any
increased shares of Common Stock for Offer Periods in existence prior to such
increase. If the Administrator determines that on a given Exercise Date the
number of shares with respect to which options are to be exercised may exceed
(x) the number of shares then available for sale under the Plan or (y) the
number of shares available for sale under the Plan on the Enrollment Date(s) of
one or more of the Offer Periods in which such Exercise Date is to occur, the
Administrator may make a pro rata allocation of the shares remaining available
for purchase on such Enrollment Dates or Exercise Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine to be
equitable, and shall either continue all Offer Periods then in effect or
terminate any one or more Offer Periods then in effect pursuant to Section 19,
below. Any amount remaining in a Participant's payroll account following such
pro rata allocation shall be returned to the Participant and shall not be
carried over to any future Purchase Period or Offer Period, as determined by the
Administrator.

            (b) A Participant will have no interest or voting right in shares
covered by the Participant's option until such shares are actually purchased on
the Participant's behalf in accordance with the applicable provisions of the
Plan. No adjustment shall be made for dividends, distributions or other rights
for which the record date is prior to the date of such purchase.

            (c) Shares to be delivered to a Participant under the Plan will be
registered in the name of the Participant or in the name of the Participant and
his or her spouse, as designated in the Participant's subscription agreement.

      13. Administration. The Plan shall be administered by the Administrator
which shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every

--------
2     All Share numbers in the Plan reflect the one-for-three reverse stock
      split which occurred on _________, 2004.

                                       9
<PAGE>
finding, decision and determination made by the Administrator shall, to the full
extent permitted by Applicable Law, be final and binding upon all persons.

      14. Designation of Beneficiary.

            (a) Each Participant will file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
Participant's account under the Plan in the event of such Participant's death.
If a Participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

            (b) Such designation of beneficiary may be changed by the
Participant (and the Participant's spouse, if any) at any time by written
notice. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living (or in existence) at
the time of such Participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the Participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Administrator), the Administrator shall deliver such shares and/or cash to
the spouse (or domestic partner, as determined by the Administrator) of the
Participant, or if no spouse (or domestic partner) is known to the
Administrator, then to the issue of the Participant, such distribution to be
made per stirpes (by right of representation), or if no issue are known to the
Administrator, then to the heirs at law of the Participant determined in
accordance with Section 27.

      15. Transferability. No payroll deductions credited to a Participant's
account, options granted hereunder, or any rights with regard to the exercise of
an option or to receive shares under the Plan may be assigned, transferred,
pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, or as provided in Section 14 hereof) by the
Participant. Any such attempt at assignment, transfer, pledge or other
disposition shall be without effect, except that the Administrator may, in its
sole discretion, treat such act as an election to withdraw funds from an Offer
Period in accordance with Section 10.

      16. Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions or hold them
exclusively for the benefit of Participants. All payroll deductions received or
held by the Company may be subject to the claims of the Company's general
creditors. Participants shall have the status of general unsecured creditors of
the Company. Any amounts payable to Participants pursuant to the Plan shall be
unfunded and unsecured obligations for all purposes, including, without
limitation, Title I of the Employee Retirement Income Security Act of 1974, as
amended. The Company shall retain at all times beneficial ownership of any
investments, including trust investments, which the Company may make to fulfill
its payment obligations hereunder. Any investments or the creation or
maintenance of any trust or any Participant account shall not create or
constitute a trust or fiduciary relationship between the Administrator, the
Company or any Designated Parent or Subsidiary and a Participant, or otherwise
create any vested or beneficial interest in any Participant or the Participant's
creditors in any assets of the Company or a Designated Parent or Subsidiary. The
Participants shall have no claim against the Company or any Designated Parent or
Subsidiary for any changes in the value of any assets that may be invested or
reinvested by the Company with respect to the Plan.

                                       10
<PAGE>
      17. Reports. Individual accounts will be maintained for each Participant
in the Plan. Statements of account will be given to Participants at least
annually, which statements will set forth the amounts of payroll deductions, the
Purchase Price, the number of shares purchased and the remaining cash balance,
if any.

      18. Adjustments Upon Changes in Capitalization; Corporate Transactions.

            (a) Adjustments Upon Changes in Capitalization. Subject to any
required action by the stockholders of the Company, the Reserves, the Purchase
Price, the maximum number of shares that may be purchased in any Offer Period or
Purchase Period, as well as any other terms that the Administrator determines
require adjustment shall be proportionately adjusted for (i) any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, (ii) any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company,
or (iii) as the Administrator may determine in its discretion, any other
transaction with respect to Common Stock including a corporate merger,
consolidation, acquisition of property or stock, separation (including a
spin-off or other distribution of stock or property), reorganization,
liquidation (whether partial or complete) or any similar transaction; provided,
however that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Administrator and its determination shall be
final, binding and conclusive. Except as the Administrator determines, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason hereof shall be made with respect to, the Reserves and the Purchase
Price.

            (b) Corporate Transactions. In the event of a proposed Corporate
Transaction, each option under the Plan shall be assumed by such successor
corporation or a parent or subsidiary of such successor corporation, unless the
Administrator, in the exercise of its sole discretion and in lieu of such
assumption, determines to shorten the Offer Period then in progress by setting a
new Exercise Date (the "New Exercise Date"). If the Administrator shortens the
Offer Period then in progress in lieu of assumption in the event of a Corporate
Transaction, the Administrator shall notify each Participant in writing at least
ten (10) business days prior to the New Exercise Date, that the Exercise Date
for the Participant's option has been changed to the New Exercise Date and that
either:

                  (1) the Participant's option will be exercised automatically
on the New Exercise Date, unless prior to such date the Participant has
withdrawn from the Offer Period as provided in Section 10; or

                  (2) the Company shall pay to the Participant on the New
Exercise Date an amount in cash, cash equivalents, or property as determined by
the Administrator that is equal to the difference in the Fair Market Value of
the shares subject to the option and the Purchase Price due had the
Participant's option been exercised automatically under SubSection (b)(i) above.

                                       11
<PAGE>
      For purposes of this Subsection, an option granted under the Plan shall be
deemed to be assumed if, in connection with the Corporate Transaction, the
option is replaced with a comparable option with respect to shares of capital
stock of the successor corporation or Parent thereof. The determination of
option comparability shall be made by the Administrator prior to the Corporate
Transaction and its determination shall be final, binding and conclusive on all
persons.

      19. Amendment or Termination.

            (a) The Administrator may at any time and for any reason terminate
or amend the Plan. Except as provided in Section 18, no such termination can
affect options previously granted, provided that the Plan or any one or more
Offer Periods may be terminated by the Administrator on any Exercise Date or by
the Administrator establishing a new Exercise Date with respect to any Offer
Period and/or any Purchase Period then in progress if the Administrator
determines that the termination of the Plan or such one or more Offer Periods is
in the best interests of the Company and its stockholders. Except as provided in
Section 18 and this Section 19, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any Participant
without the consent of affected Participants. To the extent necessary to comply
with Section 423 of the Code (or any successor rule or provision or any other
Applicable Law), the Company shall obtain stockholder approval in such a manner
and to such a degree as required.

            (b) Without stockholder consent and without regard to whether any
Participant rights may be considered to have been "adversely affected," the
Administrator shall be entitled to limit the frequency and/or number of changes
in the amount withheld during Offer Periods, change the length of Purchase
Periods within any Offer Period, determine the length of any future Offer
Period, determine whether future Offer Periods shall be consecutive or
overlapping, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, establish additional terms, conditions, rules
or procedures to accommodate the rules or laws of applicable foreign
jurisdictions, permit payroll withholding in excess of the amount designated by
a Participant in order to adjust for delays or mistakes in the Company's
processing of properly completed withholding elections, establish reasonable
waiting and adjustment periods and/or accounting and crediting procedures to
ensure that amounts applied toward the purchase of Common Stock for each
Participant properly correspond with amounts withheld from the Participant's
Compensation, and establish such other limitations or procedures as the
Administrator determines in its sole discretion advisable and which are
consistent with the Plan.

      20. Notices. All notices or other communications by a Participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Administrator at the location,
or by the person, designated by the Administrator for the receipt thereof.

      21. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all Applicable Laws
and shall be further subject to the approval of counsel for the Company with
respect to such compliance. As a condition to the exercise of an option, the
Company may require the Participant to represent and warrant at the time of any
such

                                       12
<PAGE>
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned Applicable Laws. In addition, no options shall be exercised or
shares issued hereunder before the Plan shall have been approved by stockholders
of the Company as provided in Section 23.

      22. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the stockholders of the
Company. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 19.

      23. Stockholder Approval. Continuance of the Plan shall be subject to
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such stockholder approval shall be obtained
in the degree and manner required under Applicable Laws.

      24. No Employment Rights. The Plan does not, directly or indirectly,
create any right for the benefit of any employee or class of employees to
purchase any shares under the Plan, or create in any employee or class of
employees any right with respect to continuation of employment by the Company or
a Designated Parent or Subsidiary, and it shall not be deemed to interfere in
any way with such employer's right to terminate, or otherwise modify, an
employee's employment at any time.

      25. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Designated Parent or Subsidiary, participation in the Plan shall not be deemed
compensation for purposes of computing benefits or contributions under any
retirement plan of the Company or a Designated Parent or Subsidiary, and shall
not affect any benefits under any other benefit plan of any kind or any benefit
plan subsequently instituted under which the availability or amount of benefits
is related to level of compensation. The Plan is not a "Retirement Plan" or
"Welfare Plan" under the Employee Retirement Income Security Act of 1974, as
amended.

      26. Effect of Plan. The provisions of the Plan shall, in accordance with
its terms, be binding upon, and inure to the benefit of, all successors of each
Participant, including, without limitation, such Participant's estate and the
executors, administrators or trustees thereof, heirs and legatees, and any
receiver, trustee in bankruptcy or representative of creditors of such
Participant.

      27. Governing Law. The Plan is to be construed in accordance with and
governed by the internal laws of the State of California without giving effect
to any choice of law rule that would cause the application of the laws of any
jurisdiction other than the internal laws of the State of California to the
rights and duties of the parties, except to the extent the internal laws of the
State of California are superseded by the laws of the United States. Should any
provision of the Plan be determined by a court of law to be illegal or
unenforceable, the other provisions shall nevertheless remain effective and
shall remain enforceable.

      28. Dispute Resolution. The provisions of this Section 28 (and as restated
in the Subscription Agreement) shall be the exclusive means of resolving
disputes arising out of or

                                       13
<PAGE>
relating to the Plan. The Company and the Participant, or their respective
successors (the "parties"), shall attempt in good faith to resolve any disputes
arising out of or relating to the Plan by negotiation between individuals who
have authority to settle the controversy. Negotiations shall be commenced by
either party by notice of a written statement of the party's position and the
name and title of the individual who will represent the party. Within thirty
(30) days of the written notification, the parties shall meet at a mutually
acceptable time and place, and thereafter as often as they reasonably deem
necessary, to resolve the dispute. If the dispute has not been resolved by
negotiation, the parties agree that any suit, action, or proceeding arising out
of or relating to the Plan shall be brought in the United States District Court
for the Northern District of California (or should such court lack jurisdiction
to hear such action, suit or proceeding, in a California state court in the
County of San Francisco) and that the parties shall submit to the jurisdiction
of such court. The parties irrevocably waive, to the fullest extent permitted by
law, any objection the party may have to the laying of venue for any such suit,
action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY
RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Section 28 shall for any
reason be held invalid or unenforceable, it is the specific intent of the
parties that such provisions shall be modified to the minimum extent necessary
to make it or its application valid and enforceable.

                                       14
<PAGE>
                                    EXHIBIT A

              Dynavax Technologies Corporation 2004 Employee Stock Purchase Plan
                                                          SUBSCRIPTION AGREEMENT

                                   Effective with the Offer Period beginning on:

            [ ] ESPP Effective Date [ ] August 15, 2004 or [ ] February 15, 2005

1.    PERSONAL INFORMATION [MODIFY DATA REQUESTED AS APPROPRIATE]

<TABLE>
<S>                                                      <C>
Legal Name (Please Print)
                          -----------------------------  ----------  -----------
                          (Last)     (First)      (MI)   Location    Department

Street Address
               ----------------------------------------  -----------------------
                                                         Daytime Telephone

City, State/Country, Zip
                        -------------------------------  -----------------------
                                                         E-Mail Address

Social Security No.   -   -        Employee I.D. No.
                   --- --- --------                      -----------------------
                                                         Manager   Mgr. Location
</TABLE>

2.    ELIGIBILITY Any Employee whose customary employment is more than 20 hours
      per week and more than 5 months per calendar year and who does not hold
      (directly or indirectly) five percent (5%) or more of the combined voting
      power of the Company, a parent or a subsidiary, whether in stock or
      options to acquire stock is eligible to participate in the Dynavax
      Technologies Corporation 2004 Employee Stock Purchase Plan (the "ESPP");
      provided, however, that Employees who are subject to the rules or laws of
      a foreign jurisdiction that prohibit or make impractical the participation
      of such Employees in the ESPP are not eligible to participate.

3.    DEFINITIONS Each capitalized term in this Subscription Agreement shall
      have the meaning set forth in the ESPP.

4.    SUBSCRIPTION I hereby elect to participate in the ESPP and subscribe to
      purchase shares of the Company's Common Stock in accordance with this
      Subscription Agreement and the ESPP. I have received a complete copy of
      the ESPP and a prospectus describing the ESPP and understand that my
      participation in the ESPP is in all respects subject to the terms of the
      ESPP. The effectiveness of this Subscription Agreement is dependent on my
      eligibility to participate in the ESPP.

5.    PAYROLL DEDUCTION AUTHORIZATION I hereby authorize payroll deductions from
      my Compensation during the Offer Period in the percentage specified below
      (payroll reductions may not exceed 10% of Compensation nor the limitation
      under Section 423(b)(8) of the Code and the regulations thereunder):

      Percentage to be Deducted (circle one) 1%   2%   3%   4%   5%   6%   7%
                                        8%   9%   10%

6.    ESPP ACCOUNTS AND PURCHASE PRICE I understand that all payroll deductions
      will be credited to my account under the ESPP. No additional payments may
      be made to my account. No interest will be credited on funds held in the
      account at any time including any refund of the account caused by
      withdrawal from the ESPP. All payroll deductions shall be accumulated for
      the purchase of Company Common Stock at the applicable Purchase Price
      determined in accordance with the ESPP.

7.    WITHDRAWAL AND CHANGES IN PAYROLL DEDUCTION I understand that I may
      discontinue my participation in the ESPP at any time prior to an Exercise
      Date as provided in Section 10 of the

                                       A-1
<PAGE>
      ESPP, but if I do not withdraw from the ESPP, any accumulated payroll
      deductions will be applied automatically to purchase Company Common Stock.
      I may increase or decrease the rate of my payroll deductions in whole
      percentage increments to not less than one percent (1%) on one occasion
      during any Purchase Period by completing and timely filing a Change of
      Status Notice. Any increase or decrease will be effective for the full
      payroll period occurring after five (5) business days from the Company's
      receipt of the Change of Status Notice.

8.    PERPETUAL SUBSCRIPTION I understand that this Subscription Agreement shall
      remain in effect for successive Offer Periods until I withdraw from
      participation in the ESPP, or termination of the ESPP.

9.    TAXES I have reviewed the ESPP prospectus discussion of the federal tax
      consequences of participation in the ESPP and consulted with tax
      consultants as I deemed advisable prior to my participation in the ESPP. I
      hereby agree to notify the Company in writing within thirty (30) days of
      any disposition (transfer or sale) of any shares purchased under the ESPP
      if such disposition occurs within two (2) years of the Enrollment Date
      (the first day of the Offer Period during which the shares were purchased)
      or within one (1) year of the Exercise Date (the date I purchased such
      shares), and I will make adequate provision to the Company for foreign,
      federal, state or other tax withholding obligations, if any, which arise
      upon the disposition of the shares. In addition, the Company may withhold
      from my Compensation any amount necessary to meet applicable tax
      withholding obligations incident to my participation in the ESPP,
      including any withholding necessary to make available to the Company any
      tax deductions or benefits contingent on such withholding.

10.   DISPUTE RESOLUTION The provisions of this Section 10 and Section 28 of the
      ESPP shall be the exclusive means of resolving disputes arising out of or
      relating to the Plan. The Company and I, or our respective successors (the
      "parties"), shall attempt in good faith to resolve any disputes arising
      out of or relating to the Plan by negotiation between individuals who have
      authority to settle the controversy. Negotiations shall be commenced by
      either party by notice of a written statement of the party's position and
      the name and title of the individual who will represent the party. Within
      thirty (30) days of the written notification, the parties shall meet at a
      mutually acceptable time and place, and thereafter as often as they
      reasonably deem necessary, to resolve the dispute. If the dispute has not
      been resolved by negotiation, the Company and I agree that any suit,
      action, or proceeding arising out of or relating to the Plan shall be
      brought in the United States District Court for the Northern District of
      California (or should such court lack jurisdiction to hear such action,
      suit or proceeding, in a California state court in the County of San
      Francisco) and that we shall submit to the jurisdiction of such court. The
      Company and I irrevocably waive, to the fullest extent permitted by law,
      any objection we may have to the laying of venue for any such suit, action
      or proceeding brought in such court. THE COMPANY AND I ALSO EXPRESSLY
      WAIVE ANY RIGHT WE HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT,
      ACTION OR PROCEEDING. If any one or more provisions of this Section 10 or
      Section 28 of the ESPP shall for any reason be held invalid or
      unenforceable, it is the specific intent of the Company and I that such
      provisions shall be modified to the minimum extent necessary to make it or
      its application valid and enforceable.

11.   DESIGNATION OF BENEFICIARY In the event of my death, I hereby designate
      the following person or trust as my beneficiary to receive all payments
      and shares due to me under the ESPP:

            [ ]  I am single       [ ]  I am married

<TABLE>
<S>                                                                                <C>
Beneficiary (please print)                                                         Relationship to Beneficiary (if any)
                           -----------------------------------------------------
                               (Last)              (First)              (MI)

Street Address
               -----------------------------------------------------------------   --------------------------------------
</TABLE>

                                      A-2
<PAGE>
City, State/Country, Zip
                         -------------------------------------------------------

12.   TERMINATION OF ESPP I understand that the Company has the right,
      exercisable in its sole discretion, to amend or terminate the ESPP at any
      time, and a termination may be effective as early as an Exercise Date,
      including the establishment of an alternative date for an Exercise Date
      within each outstanding Offer Period.

      Date:                  Employee Signature:
            --------------                      --------------------------------

                                                --------------------------------
                                                spouse's signature (if
                                                beneficiary is other
                                                than spouse)

                                      A-3
<PAGE>
                                    EXHIBIT B

              Dynavax Technologies Corporation 2004 Employee Stock Purchase Plan
                                                         CHANGE OF STATUS NOTICE

--------------------------------------------------------------
  Participant Name (Please Print)

--------------------------------------------------------------
  Social Security Number

================================================================================

      WITHDRAWAL FROM ESPP

      I hereby withdraw from the Dynavax Technologies Corporation 2004 Employee
      Stock Purchase Plan (the "ESPP") and agree that my option under the
      applicable Offer Period will be automatically terminated and all
      accumulated payroll deductions credited to my account will be refunded to
      me or applied to the purchase of Common Stock depending on the alternative
      indicated below. No further payroll deductions will be made for the
      purchase of shares in the applicable Offer Period and I shall be eligible
      to participate in a future Offer Period only by timely delivery to the
      Company of a new Subscription Agreement.

[ ]   WITHDRAWAL AND PURCHASE OF COMMON STOCK

      Payroll deductions will terminate, but your account balance will be
      applied to purchase Common Stock on the next Exercise Date. Any remaining
      balance will be refunded.

[ ]   WITHDRAWAL WITHOUT PURCHASE OF COMMON STOCK

      Entire account balance will be refunded to me and no Common Stock will be
      purchased on the next Exercise Date provided this notice is submitted to
      the Company ten (10) business days prior to the next Exercise Date.

================================================================================

[ ]   CHANGE IN PAYROLL DEDUCTION

      I hereby elect to change my rate of payroll deduction under the ESPP as
      follows (select one):

      Percentage to be Deducted (circle one) 1%  2%  3%  4%  5%  6%  7%
                                     8%  9%  10%

      An increase or a decrease in payroll deduction will be effective for the
      first full payroll period commencing no fewer than five (5) business days
      following the Company's receipt of this notice, unless this change is
      processed more quickly.

================================================================================

                                      B-1
<PAGE>
================================================================================

[ ] CHANGE OF BENEFICIARY              [ ] I am single          [ ] I am married

      This change of beneficiary shall terminate my previous beneficiary
      designation under the ESPP. In the event of my death, I hereby designate
      the following person or trust as my beneficiary to receive all payments
      and shares due to me under the ESPP:

<TABLE>
<S>                                                                                 <C>
Beneficiary (please print)                                                          Relationship to Beneficiary (if any)
                          ------------------------------------------------------
                                 (Last)            (First)            (MI)

Street Address
               -----------------------------------------------------------------    -------------------------------------

City, State/Country, Zip
                         -------------------------------------------------------
</TABLE>

================================================================================

      Date:                  Employee Signature:
            --------------                      --------------------------------

                                                --------------------------------
                                                spouse's signature (if
                                                beneficiary is other
                                                than spouse)

                                      B-1
<PAGE>
                                    EXHIBIT C

              Dynavax Technologies Corporation 2004 Employee Stock Purchase Plan
                                                         CHANGE OF STATUS NOTICE

                        DURING FIRST PURCHASE PERIOD OF THE INITIAL OFFER PERIOD

--------------------------------------------------------------
Participant Name (Please Print)

--------------------------------------------------------------
Social Security Number

================================================================================

      WITHDRAWAL FROM ESPP

      I hereby withdraw from the Dynavax Technologies Corporation 2004 Employee
      Stock Purchase Plan (the "ESPP") and agree that my option under the
      applicable Offer Period will be automatically terminated. No payroll
      deductions will be made for the purchase of shares in the initial Offer
      Period and I shall be eligible to participate in a future Offer Period
      only by timely delivery to the Company of a new Subscription Agreement.

[ ]   WITHDRAWAL WITHOUT PURCHASE BY DIRECT PAYMENT

      I elect not to purchase shares by direct payment during the first Purchase
      Period of the initial Offer Period.

================================================================================

[ ]   INITIATE PAYROLL DEDUCTION DURING FIRST PURCHASE PERIOD OF INITIAL OFFER
      PERIOD

      I hereby elect to initiate payroll deduction under the ESPP as follows
      (select one):

Percentage to be Deducted (circle one)  1%  2%  3%  4%  5%  6%  7%
                                8%  9%  10%

      To the extent possible, the rate of payroll deduction will exceed the
      percentage indicated to yield the correct amount of withholding on the
      Exercise Date to cover payroll periods during which no withholding for
      participation in the Plan was made.

      I understand that this notice and payroll withholding rate shall remain in
      effect for successive Offer Periods until I withdraw from participation in
      the ESPP, change withholding rates, or the ESPP terminates.

      An increase or a decrease in payroll deduction or direct payment
      percentage will be effective for the first full payroll period commencing
      no fewer than five (5) business days following the Company's receipt of
      this notice, unless this change is processed more quickly.

================================================================================

                                      C-1
<PAGE>
================================================================================

DESIGNATION OF BENEFICIARY

      In the event of my death, I hereby designate the following person or trust
      as my beneficiary to receive all payments and shares due to me under the
      ESPP:    [ ] I am single       [ ] I am married

<TABLE>
<S>                                                                               <C>
Beneficiary (please print)                                                        Relationship to Beneficiary (if any)
                           -----------------------------------------------------
                                 (Last)            (First)              (MI)

Street Address
               -----------------------------------------------------------------  ------------------------------------

City, State/Country, Zip
                         -------------------------------------------------------
</TABLE>

================================================================================

      Date:                  Employee Signature:
            --------------                      --------------------------------

                                                --------------------------------
                                                spouse's signature (if
                                                beneficiary is other
                                                than spouse)

                                      C-1

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