Document:

exv10w20

 

EXHIBIT 10.20

DYNAVAX TECHNOLOGIES CORPORATION

2004 NON-EMPLOYEE DIRECTOR OPTION PROGRAM (REVISED)

AND

2005 NON-EMPLOYEE DIRECTOR CASH COMPENSATION PROGRAM

EFFECTIVE APRIL 14, 2005

(REVISION VERSION 2.0)

ARTICLE I

ESTABLISHMENT AND PURPOSE OF THE PROGRAM

1.1     Establishment of Program

The Dynavax Technologies Corporation 2004 Non-Employee Director Option Program, as revised herein,
including the Non-Employee Director Cash Compensation Program (collectively, the “Director
Program”) is adopted pursuant to the Dynavax Technologies Corporation 2004 Stock Incentive Plan
(the “Plan”) and, in addition to the terms and conditions set forth below, is subject to the
provisions of the Plan.

1.2     Purpose of Program

The purpose of the Director Program is to enhance the ability of the Company to attract and retain
directors who are not Employees (“Non-Employee Directors”) through an Option and Cash Compensation
program.

1.3     Effective Date of the Program

The Director Program is effective as of the Registration Date, and as revised on April 14, 2005.

ARTICLE II

DEFINITIONS

Capitalized terms in this Director Program, unless otherwise defined herein, have the meaning
given to them in the Plan.

ARTICLE III

OPTION TERMS

3.1     Date of Grant and Number of Shares

Effective April 14, 2005, a Non-Qualified Stock Option to purchase 20,000 shares of Common Stock
shall be granted (the “Initial Grant”) to each Non-Employee Director and 30,000 shares shall be
granted to the Non-Employee Chairman of the Board (the “Initial Grant”), and such Initial Grant to
be made to Non-Employee Directors elected or appointed to the Board upon the date each such
Non-Employee Director first becomes a Non-Employee Director.

Effective April 14, 2005, each Non-Employee Director currently on the Company’s Board who did not
receive an initial grant upon election or appointment to the board, shall receive an Initial Grant
as described above.

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Also effective on April 14, 2005, each Non-Employee Director currently on the Company’s Board, and
who received an initial grant to purchase less than 20,000 shares of Common Stock upon election or
appointment to the board, shall receive a grant for the difference so that said board member’s
initial grant equals 20,000 shares.

In addition, immediately following each annual meeting of the Company’s stockholders, commencing
with the annual meeting of the Company’s stockholders in 2004, each Non-Employee Director who
continues as a Non-Employee Director following such annual meeting shall be granted a Non-Qualified
Stock Option to purchase 10,000 shares of Common Stock (a “Subsequent Grant”); provided that no
Subsequent Grant shall be made to any Non-Employee Director who has not served as director of the
Company, as of the time of such annual meeting, for at least eleven (11) months. Each such
Subsequent Grant shall be made on the date of the annual stockholders’ meeting in question.

3.2     Vesting

Each Initial Grant of Common Stock subject to the Option under the Director Program shall vest
twenty-five percent (25%) twelve (12) months after the grant date and an additional twenty-five
percent (25%) of the shares of Common Stock subject to the Option shall vest on each yearly
anniversary of the grant date thereafter, such that the Option will be fully exercisable four (4)
years after its date of grant.

Each Subsequent Grant under the Director Program will vest and become exercisable as to all of the
shares of Common Stock subject to the Option twelve (12) months after the grant date.

3.3     Exercise Price

The exercise price per share of Common Stock of each Initial Grant and Subsequent Grant shall be
one hundred percent (100%) of the Fair Market Value per share on the date of grant.

3.4     Corporate Transaction/Change in Control

Each Option under the Director Program shall be subject to the provisions of Section 11 of the Plan
relating to the exercise or termination of the Option in the event of a Corporate Transaction or a
Change in Control.

3.5     Other Terms

The Administrator (the “Dynavax Board of Directors”) of the Plan shall determine the remaining
terms and conditions of the Options awarded under the Program.

ARTICLE IV

CASH COMPENSATION TERMS

4.1     Annual Fees

Each Non-Employee Director currently on the Company’s board, or elected in 2005 and thereafter,
shall receive an annual retainer fee of $20,000. The Chairman of the Board shall receive an annual
retainer fee of $30,000. Such annual retainer fees will be paid quarterly at the end of each
fiscal quarter where such person is an active director of the board (“active director” requires
attendance at 75% of the annually scheduled board meetings).

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4.2     Board Meeting Fees

Each Non-Employee Director will receive a fee of $2,000 for each Board of Directors meeting
attended in person or $500 for each Board of Directors meeting attended by telephone.

4.3     Committee Meeting Fees

The Chairman of the Audit Committee shall receive an annual retainer of $15,000. Each member of
the audit committee shall receive a fee of $1,500 for each Audit Committee meeting attended in
person or $500 for each Audit Committee meeting attended by telephone.

The Chairman of the Compensation Committee shall receive an annual retainer of $6,000. Each member
of the compensation committee shall receive a fee of $1,000 for each committee meeting attended in
person or $500 for each committee meeting attended by telephone.

The Chairman of the Nominating Committee shall receive an annual retainer of $3,000. Each member
of the nominating committee shall receive a fee of $1,000 for each committee meeting attended in
person or $500 for each committee meeting attended by telephone.

Such annual retainer fees for chairman of a committee will be paid quarterly at the end of each
fiscal quarter where such person is an active Chairman of the Committee and an Active Director.
Such committee fees will be paid quarterly at the end of each fiscal quarter where such person is
an Active Director.

4.4     Travel and Related Costs

Reasonable travel and related costs associated with attending Board and committee meetings shall be
reimbursed. The Board member needs to submit proper documentation for reimbursement.

3<PAGE>
                          SEE RESTRICTIVE LEGENDS ON REVERSE SIDE OF CERTIFICATE

                                                                     EXHIBIT 4.2

No.                         AD.VENTURE PARTNERS, INC.          __________ Shares
              Incorporated under the Laws of the State of Delaware

Common Stock                                          Par Value $.0001 Per Share

                       SEE REVERSE FOR CERTAIN DEFINITIONS

THIS CERTIFIES THAT_____________________________________________________________
IS THE OWNER OF_________________________________________________________________
FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, WITH A PAR VALUE OF $.0001
PER SHARE, OF AD.VENTURE PARTNERS, INC. (the "Corporation"), transferable on the
books of the Corporation in person or by duly authorized attorney upon surrender
of this certificate if properly endorsed. This certificate is not valid unless
countersigned by the Transfer Agent and registered by the Registrar.

WITNESS the seal of the Corporation and the facsimile signatures of its duly
authorized officers.

Dated: __________, 2005

                            AD.VENTURE PARTNERS, INC.

                                 CORPORATE SEAL
                                      2005
                                    DELAWARE

----------------------------                         ---------------------------
Secretary                                               Chief Executive Officer

----------------------------
Transfer Agent

<PAGE>
                          SEE RESTRICTIVE LEGENDS ON REVERSE SIDE OF CERTIFICATE

      The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM    as tenants in common            Unif Gift Min Act - _________________
                                                                   (Cust)

                                           Custodian ___________________________
                                                              (Minor)
TEN ENT    tenants by the entireties

JT TEN     as joint tenants with right of          Under Uniform Gifts to Minors
              survivorship and not as
              tenants in common                    Act:_________________________
                                                              (State)

    Additional Abbreviations may also be used though not in the above list.

                            AD.VENTURE PARTNERS, INC.

      The Corporation will furnish without charge to each stockholder who so
requests the powers, designations, preferences and relative, participating,
option or other special rights of each class of stock or series thereof of the
Corporation and the qualifications, limitations, or restrictions of such
preferences and/or rights. This certificate and the shares represented hereby
are issued and shall be held subject to all the provisions of the Certificate of
Incorporation and all amendments thereto and resolutions of the Board of
Directors providing for the issue of shares of Preferred Stock (copies of which
may be obtained from the secretary of the Corporation), to all of which the
holder of this certificate by acceptance hereof assents.

THE HOLDER OF THIS CERTIFICATE SHALL BE ENTITLED TO RECEIVE FUNDS FROM THE
CORPORATION'S TRUST FUND ONLY IN THE EVENT OF A LIQUIDATION OF THE CORPORATION
UPON FAILURE TO CONSUMMATE A BUSINESS COMBINATION OR IF THE HOLDER SEEKS TO
CONVERT HIS RESPECTIVE SHARES INTO CASH UPON A BUSINESS COMBINATION WHICH HE
VOTED AGAINST AND WHICH IS ACTUALLY COMPLETED BY THE CORPORATION. EXCEPT AS
REQUIRED BY APPLICABLE LAW, IN NO OTHER CIRCUMSTANCES SHALL THE HOLDER HAVE ANY
RIGHT OR INTEREST OF ANY KIND IN OR TO THE TRUST FUND.

FOR VALUE RECEIVED, __________ HEREBY SELL, ASSIGN AND TRANSFER UNTO

PLEASE INSERT SOCIAL SECURITY OR OTHER
        IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

shares of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint __________ Attorney, to transfer the said
stock on the books of the within named Corporation with full power of
substitution in the premises.

<PAGE>

Dated                                     By:

--------------------------------------    --------------------------------------
                                          NOTICE: THE SIGNATURE TO THIS
                                          ASSIGNMENT MUST CORRESPOND WITH THE
                                          NAME AS WRITTEN UPON THE FACE OF THE
                                          CERTIFICATE IN EVERY PARTICULAR,
                                          WITHOUT ALTERATION OR ENLARGEMENT OR
                                          ANY CHANGE WHATEVER.

Signature(s) Guaranteed:

By:
--------------------------------------
THE SIGNATURE(S) SHOULD BE GUARANTEED
BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN
ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM, PURSUANT
TO S.E.C. RULE 17AD-15).

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