Document:

Offer Letter to James Sulat dated September 22, 2009

 Exhibit 10.1 
 

 
 September 22nd, 2009 
 James Sulat 
 [Address] 
 Dear Jim: 
 On behalf of Maxygen, Inc., I am pleased to extend to you this offer of employment with Maxygen in connection with your
appointment by the Maxygen Board of Directors as Chief Executive Officer and Chief Financial Officer. Your employment with Maxygen is effective today, with your appointment as Chief Executive Officer and Chief Financial Officer to be effective as of
October 1, 2009. Your position is a full-time, exempt position. 
 Your employment is subject to proof of your legal right to work in the
United States, and to your completing the Immigration and Naturalization Service Employment Eligibility Verification Form I-9. 
 Compensation 
 If you accept this offer and begin employment, you will receive an initial salary of $43,793.33 per month
(equivalent to $525,520 per year), payable in periodic installments on our regular paydays. In addition, starting with 2009, you will be eligible to receive a performance-based, discretionary, annual cash bonus with your target level of bonus being
50% with a range of from 0% to a maximum of 100% of your annualized base salary (typically paid out in January of each year or to be paid at the same time as annual bonuses are paid to other Maxygen employees), which will be awarded at the
discretion of the Board of Directors. You must be employed by Maxygen on the date that the bonus is to be paid in order to be eligible for the bonus. 
 Equity Incentives 
 In connection with your employment with the Company as of today and your appointment as CEO and CFO, the
Board of Directors has also granted you equity awards under Maxygen’s 2006 Equity Incentive Plan (the “2006 Plan”) consisting of (i) options to purchase 400,000 shares of Maxygen, Inc. common stock, (ii) 400,000 shares of
restricted Maxygen, Inc. common stock and (iii) 353,259 contingent performance units (CPUs). The exercise price of the option will be the closing price of Maxygen common stock today (the date of grant). 
 Generally subject to your continuous service to Maxygen, the option and restricted stock award will vest as to 10% of the shares subject to each award on
the first anniversary of the grant date, quarterly thereafter until the second anniversary of the grant date as to 20% of the shares subject to each award, quarterly thereafter until the third anniversary of the grant date as to 45% of the shares
subject to each award, and quarterly thereafter until the fourth anniversary of the grant date as to the remaining 25% of the shares subject to each award; provided, however, that all shares subject to an award will immediately vest upon occurrence
of a change in control or dissolution of the Company. 
 CPUs will vest on the earliest to occur of (i) a change in control of Maxygen,
(ii) a corporate dissolution or liquidation of Maxygen, or (iii) the fourth anniversary of the grant date (the

 
“Settlement Date”), generally so long as you continue to provide services for Maxygen on a continuous basis from the grant date to the Settlement Date. The actual number of CPUs that
will vest will be equal to any loss in value of your stock options following the grant date, taking into consideration all dividend payments or other distributions made to Maxygen’s stockholders following the grant date of the CPUs, since the
options will not participate in any potential future dividends and distributions. The earned value of any CPU will be settled in shares of common stock of Maxygen. The value of any earned dividend payments or other distributions to shareholders that
are attributable to CPUs will generally be settled in the form received by stockholders, although Maxygen retains the ability to settle in shares of common stock of Maxygen and/or cash. In the event your service with the Company is terminated for
any reason prior to the Settlement Date, the Board will have the discretion to decide how to treat your CPUs. All unvested CPUs remaining following the Settlement Date will expire immediately. 
 Each of your equity awards will be subject to the terms and conditions of the 2006 Plan and will be conditioned on your acceptance of the applicable equity
award agreement. Unless otherwise indicated in your award agreement, your stock option will be “non-qualified stock option” under IRS rules. Please consult your tax advisor for information as to how this definition may affect your personal
financial situation. 
 Change of Control Arrangements 
 In connection with your employment with Maxygen, the Board also authorized and approved the terms of a change of control agreement to be entered into between you and Maxygen. The change of control
agreement provides that, in the event of the termination of your employment without “cause” or your resignation with “good reason,” in each case within 18 months following a “change of control” (as each such term is
defined in the change of control agreement), you will be entitled to receive (i) a lump sum payment equal to one year of your then-current base salary; (ii) continuation of your health benefits for up to 12 months; and (iii) the
payment of your target bonus amount for the fiscal year in which your employment is terminated. 
 Household Goods Shipment Assistance 

 It is understood that it is not your intention, if you accept this job offer, to entirely move your personal residence to the San Francisco
Bay Area at this time. However, it is understood that you may desire to ship some household goods to your residence located in San Francisco or to the Maxygen offices at this time, with the expectation that you will ship the remainder of your
household goods sometime in the future. Maxygen agrees to reimburse you for these household goods shipments provided you are employed by Maxygen at the time the expenses are incurred and that such expenses are: (i) reasonably priced,
(ii) approved-in-advance, (iii) submitted for reimbursement within 24 months of the start of your Maxygen employment, (iv) solely related to shipments from your New York residence to your San Francisco residence or to the Maxygen
offices, and (v) not in excess of $100,000 in total. 
 Employee Benefits 
 As a fulltime employee, you will be eligible for the Maxygen employee benefit plans, including medical, dental, vision, long and short-term disability plans,
life insurance, a 401(k) savings plan and our flexible time off plan that allows fulltime employees to accrue 20 days of flexible time off each year of employment. Additional details on the employee benefits plan will be provided to you. 

 Other Terms and Conditions of Employment 
 All employment with Maxygen is at will. Employment “at will” means that you are free to resign from your employment at any time, for any reason or
no reason at all, with or without cause and with or without notice. Similarly, Maxygen may terminate your employment at any time for any legal reason, with or without cause and with or without notice. By accepting this offer of employment, you agree
that your employment is at will, and acknowledge that no one, other than the Chief Executive Officer of Maxygen, has the authority to promise you, either orally or in writing, anything to the contrary. Any such agreement must be in writing and
signed by both you and the Executive Chairman of the Board to be effective. 
 Employment with any other entity, or for yourself in competition
with Maxygen, is not permitted. It is understood that you currently have Board roles and responsibilities with Momenta Pharmaceuticals, Inc. and Intercell AG and that you may continue in these roles. If you want to take on additional outside jobs or
roles, you will need to discuss these opportunities with the Maxygen Board of Directors in advance so that they can determine if any actual or potential conflict of interest exists. 
 Our business requires all employees to be flexible in their ability to perform multiple tasks, and to accept changes in scheduling and duties to reflect shifting demands. By accepting this offer of
employment, you agree that your title and compensation are subject to change, and that your job duties may change from time to time, as required by our business needs. 
 During the course of your employment, you may create, develop or have access to confidential information belonging to Maxygen, including trade secrets and proprietary information, such as technical and
scientific research and/or protocols, customer and supplier information, business plans, marketing plans, unpublished financial information, designs, drawings, innovations, inventions, discoveries, specifications, software, source codes, and
personnel information. You agree that as a condition of your employment with Maxygen, you will sign and comply with the Maxygen Confidential Information, Secrecy and Invention Agreement. 
 Arbitration of Disputes 
 You agree that, except as described below, any dispute relating to
your employment or the termination of your employment with Maxygen shall be finally settled by binding arbitration in Palo Alto, California before a neutral arbitrator of the American Arbitration Association (“AAA”) under its National
Rules for the Resolution of Employment Disputes. Claims subject to arbitration shall include, but shall not be limited to, claims under Title VII of the Civil Rights Act of 1964 (as amended) and other civil rights statutes of the United States,
the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act of 1974, the California Fair Employment and Housing Act, the California Labor Code, and any
other federal, state or local statute or regulation, and the common law of contract and tort. However, this agreement to arbitrate shall not apply to claims (a) for workers’ compensation, (b) for unemployment compensation or
(c) injunctive relief arising out of or related to misappropriation of trade secrets or misuse or improper disclosure of confidential information, unfair competition or breach of any non-competition or non-solicitation agreement between you and
Maxygen. 
 You understand that by this agreement, you and Maxygen are waiving your respective rights to trial by jury, and that judgment upon
any arbitration award may be entered in any court having jurisdiction of the matter. Any controversy or claim subject to arbitration shall be waived and

 
forever barred if arbitration is not initiated within one year after the date the controversy or claim first arose, or if statutory rights are involved, within the time limit established by the
applicable statute of limitations. With regard to statutory claims, you and Maxygen will have the same remedies available in arbitration as those available had the claim been filed in a court of law, including, where authorized by statute,
compensatory and punitive damages, injunctive relief and attorneys’ fees. Although Maxygen will pay all costs of the AAA and the arbitrator, you agree to pay all costs you would otherwise be required to pay were your claims litigated in a court
of law, such as costs of your attorney, deposition transcripts and expert witness fees and expenses. 
 The terms described in this letter
replace all prior agreements, understandings, and promises between Maxygen and you concerning the terms and conditions of your employment with the Company. 
 Jim, we are pleased to extend this offer of employment to you, and hope that your association with Maxygen will be successful and rewarding. Please indicate your acceptance of this offer by signing this
letter below and returning the letter to me. A copy of the letter is enclosed for your records. 
  

			
	Sincerely,
	
	Maxygen, Inc.
		
	By:	 	 /s/    Jim Shunk        

		 	Jim Shunk
		 	Vice President, Human Resources

 I understand and agree to the foregoing terms and conditions of employment with Maxygen, Inc.

  

			
	 /s/    James
Sulat        

	 James Sulat 

	
	 September 22, 2009    /    September
22, 2009

	Date
                                Start DateForm of Change of Control Agreement

 Exhibit 10.2 
 MAXYGEN, INC. 
 FORM
OF CHANGE OF CONTROL AGREEMENT 
 This
CHANGE OF CONTROL AGREEMENT (the “Agreement”) is made by and between MAXYGEN, INC., a Delaware corporation (the
“Company”), and                      (the “Executive”), effective as of
[                    ] (the “Effective Date”). 
 WHEREAS, the Company considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel; 
 WHEREAS, the Board of Directors of the Company recognizes that, as is the case with many publicly-held
corporations, the possibility of a Change of Control (as defined herein) exists and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management personnel to
the detriment of the Company and its stockholders; and 
 WHEREAS, the Board has determined
that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially
disturbing circumstances arising from the possibility of a Change of Control. 
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive agree as follows: 
 1. Introduction; Purposes and Effectiveness. 
 (a) The purpose of this
Agreement is to provide the Executive with protection of certain benefits in case of a termination of his or her employment with the Company in connection with a Change of Control of the Company. 
 (b) The Company, by means of the Agreement, seeks to (i) secure and/or retain the services of the Executive and (ii) provide
incentives for the Executive to exert maximum efforts for the success of the Company even in the face of a potential Change of Control of the Company. 
 2. Definitions. 
 (a) “Accountants” has the meaning given thereto
in Section 4. 
 (b) “ADEA” has the meaning given thereto in Section 5(c). 
 (c) “Agreement” means this Change of Control Agreement. 
 (d) “Board” means the Board of Directors of the Company. 

 (e) “Cause” means the Executive’s: (i) willful and continued failure to
substantially perform the Executive’s duties with the Company (other than as a result of physical or mental disability) after a written demand for substantial performance is delivered to the Executive by the Company, which demand specifically
identifies the manner in which the Company believes that the Executive has not substantially performed the Executive’s duties and that has not been cured within fifteen (15) days following receipt by the Executive of the written demand;
(ii) commission of a felony (other than a traffic-related offense) that in the written determination of the Company is likely to cause or has caused material injury to the Company’s business; (iii) dishonesty with respect to a
significant matter relating to the Company’s business; or (iv) material breach of any agreement by and between the Executive and the Company, which material breach has not been cured within fifteen (15) days following receipt by the
Executive of written notice from the Company identifying such material breach. 
 (f) “Change of Control” means:
(i) a dissolution or liquidation of the Company; (ii) a sale of all or substantially all the assets of the Company; (iii) a merger, recapitalization, reorganization, consolidation or other similar transaction (a “Business
Combination”) in which beneficial ownership of securities of the Company representing at least thirty-five percent (35%) of the combined voting power entitled to vote in the election of directors has changed; (iv) a reverse merger in
which the Company is the surviving corporation but the shares of the common stock of the Company outstanding immediately before the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, and in which beneficial ownership of securities of the Company representing at least thirty-five percent (35%) of the combined voting power entitled to vote in the election of directors has changed; (v) an acquisition by any
person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act, or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the
Company or other entity controlled by the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least thirty-five percent
(35%) of the combined voting power entitled to vote in the election of directors; (vi) in the event that the individuals who are members of the Incumbent Board cease for any reason to constitute at least fifty percent (50%) of the
Board; or (vii) the consummation by the Company of a Business Combination with respect to which all or substantially all of the individuals and entities who were the beneficial owners of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of directors immediately prior to such Business Combination do not, following consummation of all transactions intended to constitute part of such Business Combination,
beneficially own, directly or indirectly, at least sixty-five percent (65%) of the voting securities of the Company (or the corporation, business trust or other entity resulting from or being the surviving entity in such Business Combination).

 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
 (h) “Company” means Maxygen, Inc., a Delaware corporation. 
  

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 (i) “Company-Paid Coverage” has the meaning given thereto in Section 3(a).

 (j) “Confidential Information, Secrecy and Invention Agreement” has the meaning given thereto in Section 5(b).

 (k) “Disability” means Executive (i) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan
covering Company employees. 
 (l) “Effective Date” means the date specified above. 
 (m) “Employee Agreement and Release” has the meaning given thereto in Section 5(c). 
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (o) “Excise Tax” has the meaning given thereto in Section 4. 
 (p) “Executive” means the person identified in the introductory paragraph of this Agreement. 
 (q) “Good Reason” means: (i) any material reduction in the Executive’s duties, authority, or responsibilities relative
to the Executive’s duties, authority, or responsibilities in effect immediately before such reduction, except if agreed to by the Executive: (ii) a material reduction by the Company in the base compensation of the Executive as in effect
immediately before such reduction, except if agreed to in writing by the Executive; (iii) a material change in the geographic location at which Executive must perform services, except if agreed to in writing by the Executive; or (iv) a
material breach by the Company of any provision of this Agreement; provided, however, that such events shall not constitute grounds for a Good Reason termination unless the Executive has provided notice to the Company of the existence of the one or
more of the above conditions within ninety (90) days of its initial existence and the Company has been provided at least thirty (30) days to remedy the condition. 
 (r) “Incumbent Board” means the individuals who, as of the Effective Date, are members of the Board. If the election, or
nomination for election by the Company’s stockholders, of any new director is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board. 

 

 3 

 (s) “Section 16 Officer” means an “officer” of the Company, as defined
in Rule 16a-1(f) promulgated under the Exchange Act, designated as such by action of the Board. 
 (t) “Target Bonus”
means the Executive’s target bonus for the then current fiscal year, as set by the Board or the appropriate committee thereof. 
 3. Severance Benefits in the Event of a Change of Control. 
 (a) If within eighteen
(18) months following the date of a Change of Control of the Company either (A) the Company terminates the Executive’s employment other than for Cause, death or Disability, or (B) the Executive terminates his or her employment
with the Company voluntarily with Good Reason, then in each case, subject to Section 4 and Section 5: (i) the Executive shall be entitled to receive, on the 61st day following the employment termination date or such later date as is required under Section 11, a lump sum
payment equal to the Executive’s yearly base salary in effect on the date of termination (without giving effect to any reduction in base salary subsequent to a Change of Control that constitutes Good Reason), (ii) each of the
Executive’s outstanding stock options, all stock subject to repurchase or forfeiture, including without limitation, restricted stock, restricted stock units and performance shares awards, and any options, stock subject to repurchase or
forfeiture, awards or purchases held in the name of an estate planning vehicle for the benefit of the Executive or his or her immediate family, shall have their vesting and exercisability schedule accelerate in full (or, as applicable, the
corresponding repurchase or forfeiture right shall lapse in full) as of the date of termination; (iii) if on the date of termination the Executive is covered by any Company-paid health, disability, accident and/or life insurance plans or
programs, the Company shall provide to the Executive benefits substantially similar to those that the Executive was receiving immediately prior to the date of termination (the “Company-Paid Coverage”), with any premiums related to such
coverage paid by the Company no later than thirty (30) days following the premium due date; and (iv) the post-termination exercise period of Executive’s outstanding stock option and stock appreciation right awards shall automatically
be extended to the later of (A) the fifteenth day of the third month following the date at which the stock option or stock appreciation right would otherwise have expired but for this extension, based on the terms of the stock option or stock
appreciation right on its grant date, or (B) December 31 of the calendar year in which the stock option or stock appreciation right would otherwise have expired but for this extension, based on the terms of the stock option or stock
appreciation right on its grant date; provided, however, that in the event final Treasury Regulations under Code Section 409A permit a longer extension without resulting in the imposition of an additional tax under Code Section 409A, the
stock option or stock appreciation right shall provide for such greater post-termination exercise period; provided, further, that in no event shall the term of the stock option or stock appreciation right be extended longer than its original maximum
term. If the Company-Paid Coverage referenced in clause (iii) of this Section 3(a) included the Executive’s spouse and/or dependents immediately prior to the date of termination, such spouse and/or dependents shall also be covered at
Company expense. Company-Paid Coverage shall continue until the earlier of (x) one (1) year from the date of termination, or (y) the date that the Executive and his or her spouse

  

 4 

 
and/or dependents become covered under another employer’s health, disability, accident and/or life insurance plans or programs that provides the Executive and his or her spouse and/or
dependents with comparable benefits and levels of coverage; provided, however that any reimbursements to Executive for the premium payments for such coverage (to the extent Executive pays the premiums for such coverage in the interim) shall be
delayed six months and one day from Employee’s termination date (and then paid in full in arrears) to the extent required to avoid the imposition of additional tax under Code Section 409A. 
 (b) If within eighteen (18) months following the date of a Change of Control of the Company the Executive’s employment with the
Company is terminated as a result of death or Disability, then in each case, subject to Section 4 and Section 5: (i) each of the Executive’s outstanding stock options, all stock subject to repurchase or forfeiture, including
without limitation restricted stock, restricted stock units, performance shares awards, and any options, stock subject to repurchase or forfeiture, awards or purchases held in the name of an estate planning vehicle for the benefit of the Executive
or his or her immediate family, shall have their vesting and exercisability schedule accelerated such that vesting (or, as applicable, the corresponding repurchase or forfeiture right lapsing) shall occur as if the vesting (or lapsing) had occurred
on a monthly basis from the last date of vesting (or lapse) to the date of termination; and (ii) the Company will provide the Executive with health, disability, accident and/or life insurance benefits as described in Section 3(a)(iii).

 (c) In no event shall the Executive be obligated to seek other employment or take any other action to mitigate the amounts
payable or benefits provided to the Executive under this Agreement, nor shall any such payments or benefits be reduced by any earnings or benefits that the Executive may receive from any other source. 
 (d) The Executive’s employment shall be deemed to have been terminated following a Change of Control by the Company without Cause or by
the Executive with Good Reason if the Executive’s employment is terminated prior to a Change of Control without Cause at the direction of a person who has entered into an agreement with the Company the consummation of which will constitute a
Change of Control or if the Executive terminates his or her employment with Good Reason prior to a Change of Control if the circumstances or event that constitutes Good Reason occurs at the direction of such person. 
 (e) If the Executive is eligible for severance benefits pursuant to this Article 3, then the Executive shall be eligible
for and receive a bonus for the calendar year in which the Executive’s employment terminates at the same time other employees are considered for a bonus for such calendar year even though the Executive will no longer be an employee of the
Company at that time; provided, however, any such bonus shall not be less than the Target Bonus regardless of the effective date of the Executive’s termination. Any such bonus shall be paid no later than 2 1/2 months following the end of the taxable year in which the bonus is
earned. 
  

 5 

 (f) Notwithstanding any contrary provision of the Agreement, if the Company determines, in
its good faith judgment, that Section 409A of the Code shall result in the imposition of additional tax on any payment or benefit otherwise due to the Executive under the Agreement during the six (6) month period following the
Executive’s termination date, all such payments or benefits shall accrue during the six (6) month period and shall become payable in a lump sum payment on the date six (6) months and one (1) day following the Executive’s
termination date. All subsequent payments or benefits, if any, shall be paid as provided in the Agreement. 
 4. Parachute
Payments; Excise Tax. 
 In the event that the severance, acceleration of stock options and other benefits payable to the
Executive as a result of a Change of Control of the Company (i) constitute “parachute payments” within the meaning of Section 280G (as it may be amended or replaced) of the Code and (ii) but for this Section 4, would be
subject to the excise tax imposed by Section 4999 (as it may be amended or replaced) of the Code (the “Excise Tax”), then the Executive’s benefits payable in connection therewith shall be either 
 (a) delivered in full, or 
 (b) delivered as to such lesser extent that would result in no portion of such benefits being subject to the Excise Tax, 
 whichever
of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or
some portion of such benefits may be taxable under the Excise Tax. Unless the Company and the Executive otherwise agree in writing, any determination required under this Section 4 shall be made in writing in good faith by a “Big Four”
national accounting firm selected by the Company or such other person or entity to which the parties mutually agree (the “Accountants”). Any reduction in payments and/or benefits required by this section shall occur in the following order:
(1) reduction in vesting acceleration of stock options; (2) reduction in vesting acceleration of restricted stock units and restricted stock; (3) reduction of cash payments; and (4) reduction of other benefits paid or provided to
the Executive. In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for the Executive’s equity awards. If two or more equity
awards are granted on the same date, each award will be reduced on a pro-rata basis. For purposes of making the calculations required by this Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable
taxes and may rely on reasonable, good faith interpretations concerning the application of the Code. Any good faith determination of the Accountants made hereunder shall be final, binding and conclusive upon the Company and the Executive.

 The Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section 4. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4. 
  

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 5. Limitations and Conditions on Benefits. 
 The benefits and payments provided under this Agreement shall be subject to the following terms and limitations: 
 (a) Withholding Taxes. The Company shall withhold required foreign, federal, state and local income and employment taxes from any
payments hereunder. 
 (b) Confidential Information, Secrecy and Invention Agreement Prior to Receipt of Benefits. The
Executive shall have executed and delivered to the Company, a standard form of the Company’s confidential information, secrecy and invention agreement, a copy of the current form of which is attached as Exhibit A (the “Confidential
Information, Secrecy and Invention Agreement”), prior to the receipt or provision of any benefits (including the acceleration benefits) under this Agreement. Additionally, the Executive agrees that all documents, records, apparatus, equipment
and other physical property that is furnished to or obtained by the Executive in the course of his or her employment with the Company shall be and shall remain the sole property of the Company. The Executive agrees not to make or retain copies,
reproductions or summaries of any such property, except as otherwise necessary while acting in the normal course of business. In the event of any material breach by the Executive of the Confidential Information, Secrecy and Invention Agreement that
is not cured within thirty (30) days of notice of such breach to the Executive, all benefits payable under Section 4 of this Agreement shall immediately terminate. 
 (c) Employee Agreement and Release Prior to Receipt of Benefits. If the Executive’s employment with the Company terminates
involuntarily other than for Cause, death or Disability, or the Executive terminates his or her employment with the Company voluntarily with Good Reason, then prior to, and as a condition of the receipt of any benefits (including the acceleration
benefits) under this Agreement on account of such termination, the Executive shall, as of the date of such termination, execute an employee agreement and release in the form attached as Exhibit B (the “Employee Agreement and
Release”) prior to receipt of benefits. The receipt of any severance payments or benefits pursuant to Section 3 will be subject to the Executive signing and not revoking such Employee Agreement and Release and provided that such Employee
Agreement and Release is effective within sixty (60) days following the termination of Executive’s employment. No benefits (including the acceleration benefits) under Section 3 of this Agreement shall be payable or made available to
the Executive on account of a termination until the Executive Agreement and Release becomes effective. Such Employee Agreement and Release shall specifically relate to all the Executive’s rights and claims in existence at the time of such
execution and shall confirm the Executive’s obligations under the Company’s standard form of Confidential Information, Secrecy and Invention Agreement. 
  

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 6. Termination. Prior to a Change of Control of the Company, this Agreement shall
automatically terminate on the date the Executive ceases to be a Section 16 Officer, as evidenced by action of the Board removing the Executive as a Section 16 Officer or otherwise; provided, however, that if the Executive ceases to be a
Section 16 Officer prior to a Change of Control at the direction of a person who has entered into an agreement with the Company the consummation of which will constitute a Change of Control, this Agreement shall not terminate due to the change
in status of the Executive. 
 7. At-Will Employment. The Company and the Executive acknowledge that the Executive’s
employment is and shall continue to be at-will, as defined under applicable law. This Agreement shall not be construed as creating an express or implied contract of employment between the Executive and the Company. The Executive shall not have any
right to be retained in the employment of the Company. 
 8. Notices. Any notice provided under this Agreement shall be
in writing and shall be deemed to have been effectively given (i) upon receipt when delivered personally, (ii) one day after sending when sent by express mail service (such as Federal Express), or (iii) five (5) days after
sending when sent by regular mail to the following address: 
 In the case of the Company: 
 Maxygen, Inc. 
 515 Galveston Drive 
 Redwood City, CA 94063 
 Attn: General Counsel 
 In the case of the Executive: 
 The last personal residence 
 address known by the Company 
 or
to such other address as the Company or the Executive hereafter designates by written notice in accordance with this Section 8. 
 9. Litigation/Arbitration Expenses. Reasonable litigation and/or arbitration costs and expenses shall be paid by the Company, win or lose, in connection with any dispute between the Company (and its successors) and the Executive
concerning this Agreement; provided, however, that if the litigation or arbitration is found to have been commenced in bad faith by the Executive, the Executive shall bear all of his or her own costs and expenses in connection with such litigation
or arbitration. 
 10. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be
enforceable by the Executive, and the Company, and any surviving entity resulting from a Change of Control and upon any other person who is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the
Company, and their respective successors, assigns, heirs, executors and

  

 8 

 
administrators, without regard to whether or not such person actively assumes any rights or duties hereunder; provided, however, that the Executive may not assign any duties hereunder without the
prior written consent of the Company. 
 11. Section 409A. 
 (a) Notwithstanding any provision to the contrary herein, no Deferred Compensation Separation Payments (as defined below) that become payable
under this Agreement by reason of Employee’s termination of employment with the Company (or any successor entity thereto) will be made unless such termination of employment constitutes a “separation from service” within the meaning of
Section 409A of the Internal Revenue Code (the “Code”), and any final regulations and Internal Revenue Service guidance promulgated thereunder (“Section 409A”). Further, if Executive is a “specified employee” of
the Company (or any successor entity thereto) within the meaning of Section 409A on the date of Employee’s termination (other than a termination due to death), then the severance payable to Employee, if any, under this Agreement, when
considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (collectively, but excluding any amounts specified in paragraphs (b) or (c) below, the
“Deferred Compensation Separation Payments”) that are payable within the first six (6) months following Employee’s termination of employment, shall be delayed until the first payroll date that occurs on or after the date that is
six (6) months and one (1) day after the date of the termination, when they shall be paid in full arrears. All subsequent Deferred Compensation Separation Payments, if any, shall be paid in accordance with the payment schedule applicable
to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following his termination but prior to the six (6) month anniversary of his termination, then any Payments delayed in accordance with this paragraph
will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death and all other Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and
benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. 
 (b) Any amounts paid under this Agreement that satisfy the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute
Deferred Compensation Separation Payments for purposes of clause (a) above. 
 (c) Any amount paid under this Agreement
that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit shall not constitute Deferred Compensation
Separation Payments for purposes of clause (ii) above. “Section 409A Limit” will mean the lesser of two (2) times: (A) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the
Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect
thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated. 
  

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 (d) Any taxable reimbursements and/or taxable in-kind benefits provided in this Agreement
shall be made or provided in accordance with the requirements of Section 409A, including: (i) the amount of any such expense reimbursement or in-kind benefit provided during a taxable year of the Executive shall not affect any expenses
eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense shall be made no later than the last day of the employee’s taxable year that immediately follows the taxable year in which the expense was
incurred; and (iii) the right to any such reimbursement shall not be subject to liquidation or exchange for another benefit or payment. 
 (e) The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided in this Agreement will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. 
 12. Miscellaneous. 
 (a) No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing by each of the parties. 
 (b) No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by
either party that are not expressly set forth in this Agreement. 
 (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  

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 13. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of California, regardless of the law that might be applied under applicable principles of conflicts of law. 
  

			
	MAXYGEN, INC.
		
	By:	 	  

		 	Louis Lange
		 	Chairman, Compensation Committee
	
	Date:             , 2009
	
	THE EXECUTIVE
	
	  

	
	Date:             , 2009

  

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 Exhibit A 
 to Change of Control Agreement 
 MAXYGEN, INC. 
 CONFIDENTIAL INFORMATION, SECRECY AND 
 INVENTION AGREEMENT 
  

 12 

 Exhibit B 
 to Change of Control Agreement 
 MAXYGEN, INC. 
 AGREEMENT AND RELEASE 
 I hereby confirm my obligations under the Confidential Information, Secrecy and Invention Agreement that I have previously entered into with the Company. 
 I acknowledge that I have read and understand Section 1542 of the California Civil Code that reads as follows: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected
his settlement with the debtor. 
 I hereby expressly waive and relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may have against the Company. 
 Except as otherwise
set forth in this Agreement and Release (the “Release”) and except for obligations of the Company set forth in the Change of Control Agreement entered into between the Company and me, I hereby release, acquit and forever discharge the
Company, its parents and subsidiaries, and their officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys
fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as a result of any third
party action against me based on my employment with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the Effective Date of this Release (as defined below), including but not
limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment, including but not limited to, claims of intentional and negligent
infliction of emotional distress, any and all tort claims for personal injury, claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of compensation; claims pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended (“ADEA”); the federal Americans with Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; discrimination; fraud; defamation;
emotional distress; and breach of the implied covenant of good faith

  

 13 

 
and fair dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation to (i) indemnify me pursuant to any applicable
statute, provision in the Company’s certificate of incorporation or bylaws, or indemnification agreement and to provide me with continued coverage under the Company’s directors and officers liability insurance policy to the same extent
that it has provided such coverage to previously departed officers and directors of the Company or (ii) provide the benefits to me set forth in the Change of Control Agreement entered into between the Company and me; and provided further that
this paragraph shall not be effective as a release to claims which cannot be waived under applicable law. 
 I acknowledge that
I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA. I also acknowledge that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was
already entitled. If and only if I am covered by ADEA, I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise after the
Effective Date of this Release; (B) I have the right to consult with an attorney prior to executing this Release; (c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily execute this Release
earlier); (D) I have seven (7) days following the execution of this Release to revoke the Release; and (E) this Release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day
after this Release is executed by me (the “Effective Date”). If I am not covered by ADEA, I acknowledge that this Agreement shall be effective as of the date upon which this Release has been executed by me (the “Effective Date”).

  

			
	By:	 	  

		 	        THE EXECUTIVE
		
	Date:	 	  

  

 14

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