Document:

Common Stock Purchase Agreement

 Exhibit 10.53 

COMMON STOCK PURCHASE AGREEMENT 

COMMON STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of September 20, 2010 by and between DYNAVAX
TECHNOLOGIES CORPORATION, a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company (the “Buyer”). Capitalized terms used herein and not otherwise defined
herein are defined in Section 10 hereof. 
 WHEREAS: 

Subject to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Buyer, and the Buyer wishes to buy
from the Company, up to Thirty Million Dollars ($30,000,000) of the Company’s common stock, par value $0.001 per share (the “Common Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the
“Purchase Shares.” 
 NOW THEREFORE, the Company and the Buyer hereby agree as follows: 

 

	 	1.	PURCHASE OF COMMON STOCK. 

Subject to the terms and conditions set forth in this Agreement, the Company has the right to sell to the Buyer, and the Buyer has the
obligation to purchase from the Company, Purchase Shares as follows: 
 (a) Initial Purchase; Commencement of Additional
Purchases of Common Stock. Following the satisfaction of the conditions (the “Commencement”) as set forth in Sections 6 and 7 below (the date of satisfaction of such conditions, the “Commencement Date”), the
Buyer shall purchase from the Company 1,000,000 Purchase Shares and upon receipt of such Purchase Shares pay to the Company as the purchase price therefor, via wire transfer, Two Million Dollars ($2,000,000) (such purchase the “Initial
Purchase” and such Purchase Shares are referred to herein as “Initial Purchase Shares”). Upon issuance and payment therefor as provided herein, such Initial Purchase Shares shall be validly issued and are fully paid and
non-assessable. The Initial Purchase Shares shall be issued without any restrictive legend. Thereafter, the purchase and sale of Purchase Shares hereunder shall occur from time to time upon written notices by the Company to the Buyer on the terms
and conditions as set forth herein. 
 (b) The Company’s Right to Require Purchases. Subject to the terms and
conditions set forth in this Agreement, on any given Business Day after the Commencement Date, the Company shall have the right but not the obligation to direct the Buyer by its delivery to the Buyer of a Purchase Notice from time to time, and the
Buyer shall thereupon have the obligation, to buy up to 150,000 Purchase Shares per Business Day (each such purchase, a “Purchase”) at the Purchase Price on the Purchase Date. The Company and the Buyer may mutually agree to increase
the number of shares that may be sold per Business Day to as much as an additional 1,000,000 Purchase Shares per Business Day. The Company may deliver multiple Purchase Notices to the Buyer from time to time so long as the most recent Purchase has
been completed. Share amounts subject to purchase under this Section 1(b) shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. 

 (c) Payment for Purchase Shares. In connection with any Purchase, the Buyer shall pay
to the Company an amount equal to the Purchase Amount with respect to such Purchase Shares as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Buyer receives such Purchase
Shares if they are received by the Buyer before 1:00 p.m. eastern time or if received by the Buyer after 1:00 p.m. eastern time, the next Business Day. All payments made under this Agreement shall be made in lawful money of the United States of
America via wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed to be due by the terms of
this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day. 

(d) Purchase Price Floor. The Company and the Buyer shall not effect any sales under this Agreement on any Purchase Date where the
Closing Sale Price is less than the Floor Price. “Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction.

 (e) Records of Purchases. The Buyer and the Company shall each maintain records showing the remaining Available Amount
at any given time and the dates and Purchase Amounts for each purchase, or shall use such other method reasonably satisfactory to the Buyer and the Company to reconcile the remaining Available Amount. 

(f) Taxes. The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and
delivery of any shares of Common Stock to the Buyer made under this Agreement. 
 (g) Compliance with Principal Market
Rules. Notwithstanding anything in this Agreement to the contrary, and in addition to the limitations set forth in Section 1(d), the number of shares of Common Stock which may be issued under this Agreement shall be limited to 19.99% of the
Company’s outstanding shares of Common Stock as of the date of this Agreement, unless shareholder approval is obtained to issue more than such 19.99%. 
  

	 	2.	BUYER’S REPRESENTATIONS AND WARRANTIES. 

The Buyer represents and warrants to the Company that as of the date hereof and as of the Commencement Date: 

(a) Investment Purpose. The Buyer is entering into this Agreement and acquiring the Purchase Shares and the Commitment Shares (as
defined in Section 4(e) hereof) (in this Agreement, the Purchase Shares and the Commitment Shares are collectively referred to herein as the “Securities”), for its own account for investment only and not with a view towards, or
for resale in connection with, the public sale or distribution thereof; provided however, by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term. 

(b) Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)(3)
of Regulation D. 
  

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 (c) Intentionally Omitted. 

(d) Information. The Buyer has been furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Securities that have been reasonably requested by the Buyer, including, without limitation, the SEC Documents (as defined in Section 3(f) hereof). The Buyer understands that its investment in
the Securities involves a high degree of risk. The Buyer (i) is able to bear the economic risk of an investment in the Securities including a total loss, (ii) has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the proposed investment in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial condition and business of
the Company and other matters related to an investment in the Securities. Neither such inquiries nor any other due diligence investigations conducted by the Buyer or its representatives shall modify, amend or affect the Buyer’s right to rely on
the Company’s representations and warranties contained in Section 3 below. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities. 
 (e) No Governmental Review. The Buyer understands that no United States federal or state agency or any
other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the
offering of the Securities. 
 (f) Intentionally Omitted. 

(g) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Buyer and
is a valid and binding agreement of the Buyer enforceable against the Buyer in accordance with its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(h) Residency. The Buyer is a resident of the State of Illinois. 

(i) No Prior Short Selling. The Buyer represents and warrants to the Company that at no time prior to the date of this Agreement
has any of the Buyer, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)) of the Common Stock or (ii) hedging transaction which establishes a net short position with respect to the Common Stock. 

 

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	 	3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

The Company represents and warrants to the Buyer that as of the date hereof and as of the Commencement Date: 

(a) Organization and Qualification. The Company and its “Subsidiaries” (which for purposes of this Agreement means any
entity in which the Company, directly or indirectly, owns 50% or more of the voting stock or capital stock or other similar equity interests) are corporations duly organized and validly existing in good standing under the laws of the jurisdiction in
which they are incorporated, and have the requisite corporate power and authority to own their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign corporation to
do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good
standing could not reasonably be expected to have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on any of: (i) the business, properties, assets, operations, results
of operations or financial condition of the Company and its Subsidiaries, taken as a whole, or (ii) the authority or ability of the Company to perform its obligations under the Transaction Documents (as defined in Section 3(b) hereof). The
Company has no Subsidiaries except as set forth on Schedule 3(a). 
 (b) Authorization; Enforcement; Validity.
(i) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement, and each of the other agreements entered into by the parties on the Commencement Date and attached hereto as
exhibits to this Agreement (collectively, the “Transaction Documents”), and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the Commitment Shares and the reservation for issuance and the issuance of the Purchase Shares issuable under this
Agreement, have been duly authorized by the Company’s Board of Directors or duly authorized committee thereof, do not conflict with the Company’s Certificate of Incorporation or Bylaws, and do not require further consent, approval or
authorization by the Company, its Board of Directors or its shareholders, (iii) this Agreement has been, and each other Transaction Document shall be on the Commencement Date, duly executed and delivered by the Company and (iv) this
Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.
The Board of Directors of the Company or duly authorized committee thereof has approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth as Exhibit B attached hereto to authorize this
Agreement and the transactions contemplated hereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Buyer a true and correct copy of a unanimous
written consent adopting the Signing Resolutions executed by all of the members of the Board of Directors of the Company. 
 (c)
Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 150,000,000 shares of Common Stock, of which as of the date hereof, 86,744,444 shares are issued and outstanding, none are held as
treasury shares, 8,241,380 shares are reserved for future issuance or purchase pursuant to the Company’s stock option plans of which only approximately 1,267,556 shares remain available for future option grants and purchases through the
Company’s Employee Stock Purchase Plan and 25,834,710 shares are issuable and reserved for issuance pursuant 
  

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to securities (other than stock options issued pursuant to the Company’s stock option and stock purchase plans) exercisable or exchangeable for, or convertible into, shares of Common Stock
and (ii) 5,000,000 shares of Preferred Stock, $0.001 par value, none of which are issued and outstanding as of the date hereof. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and
nonassessable. Except as disclosed in Schedule 3(c), (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company,
(ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the
Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, (iv) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement),
(v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or
any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement and (vii) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company has furnished or made available to
the Buyer true and correct copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as amended and as in effect
on the date hereof (the “By-laws”), and summaries of the terms of all securities convertible into or exercisable for Common Stock, if any, and copies of any documents containing the material rights of the holders thereof in respect
thereto. 
 (d) Issuance of Securities. The Commitment Shares have been duly authorized and, upon issuance in accordance
with the terms hereof, the Commitment Shares shall be (i) validly issued, fully paid and non-assessable and (ii) free from all taxes, liens and charges with respect to the issue thereof. Upon issuance and payment therefor in accordance
with the terms and conditions of this Agreement, the Purchase Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights
accorded to a holder of Common Stock. 
 (e) No Conflicts. Except as disclosed in Schedule 3(e), the execution, delivery
and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance of the Purchase Shares)
will not (i) result in a violation of the Certificate of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or
any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and 

 

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the rules and regulations of the Principal Market applicable to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound or
affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations under clause (ii), which could not reasonably be expected to result in a Material Adverse Effect. Except as disclosed in
Schedule 3(e), neither the Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any Certificate of Designation, Preferences and Rights of any outstanding series of preferred stock of the
Company or By-laws or their organizational charter or by-laws, respectively. Except as disclosed in Schedule 3(e), neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any material contract,
agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments which could not
reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, ordinance, regulation of any governmental entity, except for
possible violations, the sanctions for which either individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated by this Agreement or as required under the 1933 Act, the
rules of the Principal Market or applicable state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or
self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance with the terms hereof or thereof. Except as disclosed in Schedule 3(e) or as expressly
contemplated herein, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or prior to the Commencement Date. Except as disclosed
in Schedule 3(e), since January 1, 2009 the Company has not received nor delivered any notices or correspondence from or to the Principal Market. The Principal Market has not commenced any delisting proceedings against the Company. 

(f) SEC Documents; Financial Statements. Except as disclosed in Schedule 3(f), since January 1, 2009, the Company has timely
filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein
and financial statements and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their respective dates (except as they have been correctly amended), the SEC
Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the
SEC (except as they may have been properly amended), contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. As of their respective dates (except as they have been properly amended), the financial statements of the Company included in the SEC Documents complied as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during
the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary
statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the 

 

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periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as disclosed in Schedule 3(f) or routine correspondence which are available on the
SEC’s EDGAR database as of the date hereof, the Company has received no notices or correspondence from the SEC since January 1, 2009. The SEC has not commenced any enforcement proceedings against the Company or any of its
Subsidiaries. 
 (g) Absence of Certain Changes. Except as disclosed in Schedule 3(g), since June 30, 2010, there
has been no material adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries. For purposes hereof, a decrease in cash or cash equivalents in and of itself shall not be
deemed or considered a material adverse change. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as they become due.  

(h) Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or any of the
Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, which could reasonably be expected to have a Material Adverse Effect. A description of each material action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body which, as of the date of this Agreement, is pending or threatened in writing against or affecting the Company, the Common Stock or any of the
Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, is set forth in Schedule 3(h). 

(i) Acknowledgment Regarding Buyer’s Status. The Company acknowledges and agrees that the Buyer is acting solely in the
capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Buyer or any of its representatives or agents in connection with the Transaction Documents and
the transactions contemplated hereby and thereby is merely incidental to the Buyer’s purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into the Transaction Documents has been based
solely on the independent evaluation by the Company and its representatives and advisors. 
 (j) Intellectual Property
Rights. To the Company’s knowledge, the Company and its Subsidiaries own or possess adequate rights or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights,
copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights (collectively, “Intellectual Property”) necessary to conduct their respective businesses as now conducted, except as set forth in
Schedule 3(j) or to the extent that the failure to own, possess, license or otherwise hold adequate rights to use Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in Schedule
3(j), to the Company’s knowledge, none of the Company’s material trademarks, trade names, service marks, service mark registrations, service names, patents, patent 

 

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rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights have expired or terminated, or, by the terms and conditions
thereof, could expire or terminate within two years from the date of this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical
information by others and, except as set forth on Schedule 3(j), there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement, which could reasonably be expected to have a Material Adverse Effect.

 (k) Environmental Laws. To the Company’s knowledge, the Company and its Subsidiaries (i) are in compliance
with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such
permit, license or approval, except where, in each of the three foregoing clauses, the failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(l) Title. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(l) or such
as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under lease by the Company and
any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its
Subsidiaries. 
 (m) Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary
has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the Company and its
Subsidiaries, taken as a whole. 
 (n) Regulatory Permits. To the Company’s knowledge, the Company and its
Subsidiaries possess all material certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted, and neither the Company
nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. 
  

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 (o) Tax Status. The Company and each of its Subsidiaries has made or filed all
federal and state income and all other material tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are
no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

(p) Transactions With Affiliates. Except as set forth on Schedule 3(p) and other than in connection with the grant or exercise of
stock options or the grant of restricted stock, restricted stock units or similar equity awards, in each case issued for compensatory purposes, none of the officers, directors, or employees of the Company is presently a party to any transaction with
the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has
an interest or is an officer, director, trustee or partner. 
 (q) Application of Takeover Protections. Assuming that at
all times the Buyer maintains its beneficial ownership of the Common Stock, as calculated under Section 13(d) of the 1934 Act and related regulations, at a level below 20%, the Company and its board of directors have taken or will take prior to
the Commencement Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under
the Certificate of Incorporation or the laws of the state of its incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s
issuance of the Securities and the Buyer’s ownership of the Securities. 
 (r) Registration Statement. The Shelf
Registration Statement (as defined in Section 4(a) hereof) has been declared effective by the SEC, and no stop order has been issued or is pending or threatened by the SEC with respect thereto. As of the date hereof, the Company has a maximum
dollar amount of certain securities registered and unsold under the Shelf Registration Statement, which, in aggregate, is in an amount not less than the sum of (i) the Available Amount and (ii) the market value of the Commitment Shares on
the date hereof. 
  

	 	4.	COVENANTS. 

 (a) Filing
of Form 8-K and Registration Statement. The Company agrees that it shall, within the time required under the 1934 Act, file a Report on Form 8-K disclosing this Agreement and the transaction contemplated hereby. The Company shall also file
within one (1) Business Day from the date hereof a prospectus supplement to the Company’s existing shelf registration statement on Form S-3 (SEC File No. 333-165663) (the “Shelf Registration Statement”) covering the
sale of the Securities 
  

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(the “Prospectus Supplement”) in accordance with the terms of the Registration Rights Agreement between the Company and the Buyer, dated as of the date hereof (the
“Registration Rights Agreement”). The Company shall use reasonable best efforts to keep the Shelf Registration Statement effective pursuant to Rule 415 promulgated under the 1933 Act and available for sales of all Commitment Shares
and Purchase Shares until (i) the Company no longer qualifies to make sales under the Shelf Registration Statement or (ii) the date on which all Purchase Shares have been sold under this Agreement and no Available Amount remains
thereunder. The Shelf Registration Statement (including any amendments or supplements thereto and prospectuses or prospectus supplements, including the Prospectus Supplement, contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading. 

(b) Blue Sky. The Company shall take such action, if any, as is reasonably necessary in order to obtain an exemption for or to
qualify (i) the initial sale of the Securities to the Buyer under this Agreement and (ii) any subsequent sale of the Securities by the Buyer, in each case, under applicable securities or “Blue Sky” laws of the states of the
United States in such states as is reasonably requested by the Buyer from time to time, and shall provide evidence of any such action so taken to the Buyer. 

(c) Listing. The Company shall promptly secure the listing of all of the Securities upon each national securities exchange and
automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all such securities
from time to time issuable under the terms of the Transaction Documents. The Company shall maintain the Common Stock’s authorization for quotation on a Principal Market, and neither the Company nor any of its Subsidiaries shall take any action
that would be reasonably expected to result in the delisting or suspension of the Common Stock on a Principal Market; provided, that nothing in this Section 4(c) shall prevent or inhibit the Company from causing its Common Stock to be listed or
quoted on a Principal Market that is different from the Principal Market on the date hereof. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section. 

(d) Limitation on Short Sales and Hedging Transactions. The Buyer agrees that beginning on the date of this Agreement and ending
on the date of termination of this Agreement as provided in Section 11(k), the Buyer and its agents, representatives and affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short
sale” (as such term is defined in Section 242.200 of Regulation SHO of the 1934 Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 

(e) Issuance of Commitment Shares. Upon the execution hereof, the Company shall issue to the Buyer as consideration for the
Buyer entering into this Agreement 600,000 shares of Common Stock (the “Commitment Shares”). The Commitment Shares shall be issued without any restrictive legend. 

(f) Due Diligence. The Buyer shall have the right, from time to time as the Buyer may reasonably deem appropriate, to perform
reasonable due diligence on the Company during normal business hours. The Company and its officers and employees shall provide information and reasonably cooperate with the Buyer in connection with any reasonable request by the Buyer related to the
Buyer’s due diligence of the Company, including, but not limited to, any such request made by the Buyer in 
  

 -10- 

 
connection with (i) the filing of the registration statement described in Section 4(a) hereof and (ii) the Commencement. Each party hereto agrees not to disclose any Confidential
Information of the other party to any third party and shall not use the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges that the
Confidential Information shall remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other party. 

(g) Ownership. The Buyer agrees to take such action as shall be necessary at all times to maintain its beneficial ownership of the
Company’s Common Stock, as calculated under Section 13(d) of the 1934 Act and related regulations, at a level below 20%. The Company will not issue and the Buyer will not purchase, any Purchase Shares which, when aggregated with all other
shares of Common Stock then beneficially owned by the Buyer, would result in the beneficial ownership by the Buyer of more than 14.99% of the then issued and outstanding Common Stock. The Buyer will, upon the reasonable request of the Company,
either (i) inform the Company of the number of shares of Common Stock beneficially owned by it or (ii) confirm to the Company that its beneficial ownership (as calculated above) at the time does not exceed 10%. 

 

	 	5.	TRANSFER AGENT INSTRUCTIONS. 

The Commitment Shares and all of the Purchase Shares to be issued under this Agreement shall be issued without any restrictive legend
unless the Buyer expressly consents otherwise. The Company shall issue irrevocable instructions to the Transfer Agent, and any subsequent transfer agent, to issue Purchase Shares in the name of the Buyer for the Purchase Shares (the
“Irrevocable Transfer Agent Instructions”). The Company warrants to the Buyer that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, will be given by the Company to the
Transfer Agent with respect to the Purchase Shares and that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Registration Rights Agreement.

  

	 	6.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK UNDER THIS AGREEMENT. 

The right of the Company hereunder to commence sales of the Purchase Shares is subject to the satisfaction of each of the following
conditions on or before the Commencement Date (the date that the Company may begin sales): 
  

	 	(a)	The Buyer shall have executed each of the Transaction Documents and delivered the same to the Company; 

 

	 	(b)	The representations and warranties of the Buyer shall be true and correct; and 

 

	 	(c)	No stop order with respect to the Company’s Shelf Registration Statement shall be pending or threatened by the SEC. 

 

 -11- 

	 	7.	CONDITIONS TO THE BUYER’S OBLIGATION TO MAKE PURCHASES OF SHARES OF COMMON STOCK. 

The obligation of the Buyer to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions
on or before the Commencement Date (the date that the Company may begin sales) and once such conditions have been initially satisfied, there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred:

 (a) The Company shall have executed each of the Transaction Documents and delivered the same to the Buyer; 

(b) The Company shall have issued to the Buyer the Commitment Shares; 

(c) The Common Stock shall be authorized for quotation on the Principal Market, trading in the Common Stock shall not have been within
the last 365 days suspended by the SEC or the Principal Market and the Securities shall be approved for listing upon the Principal Market; 

(d) The Buyer shall have received an opinion of the Company’s legal counsel dated as of the Commencement Date in a form reasonably
acceptable to Buyer and its counsel; 
 (e) The representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 3 above, in which case, such representations and warranties shall be true and correct without further
qualification) as of the date when made and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects as of such
specific date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the
Commencement Date. The Buyer shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A; 

(f) The Board of Directors of the Company or a duly authorized committee thereof shall have adopted resolutions substantially in the form
attached hereto as Exhibit B which shall be in full force and effect without any material amendment or supplement thereto as of the Commencement Date; 

(g) Intentionally Omitted. 

(h) The Irrevocable Transfer Agent Instructions, in form acceptable to the Buyer shall have been delivered to and acknowledged in writing
by the Company and the Company’s Transfer Agent; 
 (i) The Company shall have delivered to the Buyer a certificate
evidencing the incorporation and good standing of the Company in the State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of the Commencement Date; 

(j) The Company shall have delivered to the Buyer a certified copy of the Certificate of Incorporation as certified by the Secretary of
State of the State of Delaware within ten (10) Business Days of the Commencement Date; 
  

 -12- 

 (k) The Company shall have delivered to the Buyer a secretary’s certificate executed by
the Secretary of the Company, dated as of the Commencement Date, in the form attached hereto as Exhibit C; 
 (l)
The Company’s Shelf Registration Statement shall have been declared effective under the 1933 Act by the SEC and no stop order with respect thereto shall be pending or threatened by the SEC. The Company shall have prepared and delivered to the
Buyer a final and complete form of prospectus supplement, dated and current as of the Commencement Date, to be used in connection with any sales of any Commitment Shares or any Purchase Shares, and to be filed by the Company one (1) Business
Day after the Commencement Date. The Company shall have made all filings under all applicable federal and state securities laws necessary to consummate the issuance of the Securities pursuant to this Agreement in compliance with such laws;

 (m) No Event of Default has occurred, or any event which, after notice and/or lapse of time, would become an Event of Default
has occurred; 
 (n) On or prior to the Commencement Date, assuming that at all times the Buyer maintains its beneficial
ownership of the Common Stock, as calculated under Section 13(d) of the 1934 Act and related regulations, at a level below 20%, the Company and its board of directors shall take all necessary action, if any, and such actions as reasonably
requested by the Buyer, in order to render inapplicable any control share acquisition, business combination, shareholder rights plan or poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under
the Certificate of Incorporation or the laws of the state of its incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s
issuance of the Securities and the Buyer’s ownership of the Securities; and 
 (o) The Company shall have provided the
Buyer with the information reasonably requested by the Buyer in connection with its due diligence requests made prior to, or in connection with, the Commencement, in accordance with the terms of Section 4(f) hereof. 

 

	 	8.	INDEMNIFICATION. 

 In
consideration of the Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities hereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend,
protect, indemnify and hold harmless the Buyer and all of its affiliates, shareholders, officers, directors and employees and any of the foregoing person’s agents or other representatives (including, without limitation, those retained in
connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and
expenses (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the 
  

 -13- 

 
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Indemnitee by
any third party and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, other than with respect to
Indemnified Liabilities which directly and primarily result from (A) a material breach of any of Buyer’s representation and warranties, covenants or agreements contained in this Agreement, or (B) the gross negligence or willful
misconduct of the Indemnitee. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law. 
  

	 	9.	EVENTS OF DEFAULT. 

 An
“Event of Default” shall be deemed to have occurred at any time as any of the following events occurs: 
 (a) the
effectiveness of any Registration Statement (as defined in the Registration Rights Agreement) lapses for any reason (including, without limitation, the issuance of a stop order) or is unavailable for sale of all of the Registrable Securities (as
defined in the Registration Rights Agreement) in accordance with the terms of the Registration Rights Agreement, and such lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of
thirty (30) Business Days in any 365-day period; 
 (b) the suspension from trading or (except as contemplated under clause
(c) below) failure of the Common Stock to be listed on a Principal Market for a period of three (3) consecutive Business Days; 

(c) the delisting of the Common Stock from the Principal Market, provided, however, that the Common Stock is not immediately thereafter
trading on the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market, the NYSE Amex Equities or the OTC Bulletin Board; 

(d) the failure for any reason by the Transfer Agent to issue Purchase Shares to the Buyer within five (5) Business Days after the
applicable Purchase Date which the Buyer is entitled to receive; 
 (e) the Company breaches any representation, warranty,
covenant or other term or condition under any Transaction Document if such breach could have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such breach continues for a period of at
least five (5) Business Days; 
 (f) if any Person commences a proceeding against the Company pursuant to or within the
meaning of any Bankruptcy Law ; 
 (g) if the Company pursuant to or within the meaning of any Bankruptcy Law;
(A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a Custodian of it or for all or substantially all of its property, (D) makes a
general assignment for the benefit of its creditors, (E) becomes insolvent, or (F) is generally unable to pay its debts as the same become due; or 
  

 -14- 

 (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law
that (A) is for relief against the Company in an involuntary case, (B) appoints a Custodian of the Company or for all or substantially all of its property, or (C) orders the liquidation of the Company or any Subsidiary. 

In addition to any other rights and remedies under applicable law and this Agreement, including the Buyer termination rights under
Section 11(k) hereof, so long as an Event of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and is continuing, or so long as the Closing Sale
Price is below the Floor Price, the Buyer shall not be obligated to purchase any shares of Common Stock under this Agreement. If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences
a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors, (any of which would be an Event of Default as
described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement shall automatically terminate without any liability or payment to the Company without further action or notice by any Person. No such termination of this Agreement under
Section 11(k)(i) shall affect the Company’s or the Buyer’s obligations under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any pending
purchases under this Agreement. 
  

	 	10.	CERTAIN DEFINED TERMS. 

For purposes of this Agreement, the following terms shall have the following meanings: 

(a) “1933 Act” means the Securities Act of 1933, as amended. 

(b) “Available Amount” means initially Thirty Million Dollars ($30,000,000) in the aggregate which amount shall be
reduced by the Purchase Amount each time the Buyer purchases shares of Common Stock pursuant to Section 1 hereof. 
 (c)
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. 

(d) “Business Day” means any day on which the Principal Market is open for trading including any day on which the
Principal Market is open for trading for a period of time less than the customary time. 
 (e) “Closing Sale
Price” means the last closing trade price for the Common Stock on the Principal Market as reported by the Principal Market. 

(f) “Confidential Information” means any information disclosed by either party to the other party, either directly or
indirectly, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment), which is designated as “Confidential,” “Proprietary” or some similar
designation. Information communicated orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information within ten (10) Business Days after the initial disclosure. Confidential
Information may also 
  

 -15- 

 
include information disclosed to a disclosing party by third parties. Confidential Information shall not, however, include any information which (i) was publicly known and made generally
available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving party through no action or inaction of
the receiving party; (iii) is already in the possession of the receiving party at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to the time of disclosure; (iv) is
obtained by the receiving party from a third party without a breach of such third party’s obligations of confidentiality; (v) is independently developed by the receiving party without use of or reference to the disclosing party’s
Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession; or (vi) is required by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing
party prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting the information from public disclosure. 

(g) “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 (h) “Maturity Date” means October 31, 2012. 

(i) “Person” means an individual or entity including any limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 (j)
“Principal Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is ever listed or traded on the Nasdaq Global Market, the Nasdaq Global Select Market, the OTC Bulletin Board,
the New York Stock Exchange or the NYSE Amex Equities, then the “Principal Market” shall mean such other market or exchange on which the Company’s Common Stock is then listed or traded. 

(k) “Purchase Amount” means, with respect to any particular purchase made hereunder, the portion of the Available Amount
to be purchased by the Buyer pursuant to Section 1 hereof as set forth in a valid Purchase Notice which the Company delivers to the Buyer. 

(l) “Purchase Date” means with respect to any Purchase made hereunder, the Business Day of receipt by the Buyer of a
valid Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1 hereof. 
 (m) “Purchase
Notice” shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase Shares as specified by the Company therein at the applicable Purchase Price on the Purchase Date. 

(n) “Purchase Price” means the lower of the (A) the lowest Sale Price of the Common Stock on the Purchase Date and
(B) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the twelve (12) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction). 
  

 -16- 

 (o) “Sale Price” means any trade price for the shares of Common Stock on
the Principal Market as reported by the Principal Market. 
 (p) “SEC” means the United States Securities and
Exchange Commission. 
 (q) “Transfer Agent” means the transfer agent of the Company as set forth in
Section 11(f) hereof or such other person who is then serving as the transfer agent for the Company in respect of the Common Stock. 
  

	 	11.	MISCELLANEOUS. 

 (a)
Governing Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its shareholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of Chicago, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY. 
 (b) Counterparts. This Agreement may be executed in two or more identical counterparts, all
of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be
binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 

(c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. 
 (d) Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. 
  

 -17- 

 (e) Entire Agreement. With the exception of the Mutual Nondisclosure Agreement
between the parties dated as of August 10, 2010, this Agreement supersedes all other prior oral or written agreements between the Buyer, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed
herein, and this Agreement, the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or
therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees that is has not relied on, in any manner whatsoever, any representations or
statements, written or oral, other than as expressly set forth in this Agreement. 
 (f) Notices. Any notices, consents
or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 
 If to the
Company: 
 Dynavax Technologies Corporation 

2929 Seventh Street, Suite 100 

Berkeley, CA 94710-2753 

Telephone: 510-848-5100 

Facsimile: 510-848-2731 

Attention: Jennifer Lew 

With a copy to: 

Cooley LLP 
 Five
Palo Alto Square 
 3000 El Camino Real 

Palo Alto, CA 94306-2155 

Telephone: 650-843-5000 

Facsimile: 650-849-7400 

Attention: Glen Y. Sato, Esq. 

If to the Buyer: 

Aspire Capital Fund, LLC 

155 North Wacker Drive, Suite 1600 

Chicago, IL 60606 

Telephone: 312-658-0400 

Facsimile: 312-658-4005 

Attention: Steven G. Martin 
  

 -18- 

 If to the Transfer Agent: 

BNY Mellon Shareholder Services 

400 S. Hope Street,
4th Floor 

Los Angeles, CA 90017 

Telephone: 213-553-9728 

Facsimile: 213-553-9735 

Attention: James Kirkland 
 or
at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party one (1) Business Day prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, and recipient facsimile
number or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause
(i), (ii) or (iii) above, respectively. Any party to this Agreement may give any notice or other communication hereunder using any other means (including messenger service, ordinary mail or electronic mail), but no such notice or other
communication shall be deemed to have duly given unless it actually is received by the party for whom it is intended. 
 (g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Buyer, including by merger or consolidation. The Buyer may not assign its rights or obligations under this Agreement. 

(h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 
 (i)
Publicity. The Buyer shall have the right to approve before issuance any press release, SEC filing or any other public disclosure made by or on behalf of the Company whatsoever with respect to, in any manner, the Buyer, its purchases
hereunder or any aspect of this Agreement or the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make any press release or other public disclosure (including any
filings with the SEC) with respect to such transactions as is required by applicable law and regulations so long as the Company and its counsel consult with the Buyer in connection with any such press release or other public disclosure at least two
(2) Business Days prior to its release. The Buyer must be provided with a copy thereof at least two (2) Business Days prior to any release or use by the Company thereof. 

(j) Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 
  

 -19- 

 (k) Termination. This Agreement may be terminated only as follows: 

(i) By the Buyer any time an Event of Default exists without any liability or payment to the Company. However, if pursuant
to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company
makes a general assignment for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement shall automatically terminate without any liability or payment to the Company
without further action or notice by any Person. No such termination of this Agreement under this Section 11(k)(i) shall affect the Company’s or the Buyer’s obligations under this Agreement with respect to pending purchases and the
Company and the Buyer shall complete their respective obligations with respect to any pending purchases under this Agreement. 

(ii) In the event that the Commencement shall not have occurred, the Company shall have the option to terminate this
Agreement for any reason or for no reason without any liability whatsoever of any party to any other party under this Agreement. 

(iii) In the event that the Commencement shall not have occurred on or before September 30, 2010, due to the failure
to satisfy the conditions set forth in Sections 6 and 7 above with respect to the Commencement, any party shall have the option to terminate this Agreement at the close of business on such date or thereafter without liability of any party to any
other party; provided, however, that the right to terminate this Agreement under this Section 11(k)(iii) shall not be available to any party if such failure to satisfy and of the conditions set forth in Section 6 and 7 is the result of a
breach of this Agreement by such party or the failure of any representation or warranty of such party included in this Agreement to be true and correct. 

(iv) At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason
or for no reason by delivering notice (a “Company Termination Notice”) to the Buyer electing to terminate this Agreement without any liability whatsoever of any party to any other party under this Agreement. The Company Termination
Notice shall not be effective until one (1) Business Day after it has been received by the Buyer. 
 (v)
This Agreement shall automatically terminate on the date that the Company sells and the Buyer purchases the full Available Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any
party to any other party under this Agreement. 
 (vi) If by the Maturity Date for any reason or for no reason
the full Available Amount under this Agreement has not been purchased as provided for in Section 1 of this Agreement, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of any party and
without any liability whatsoever of any party to any other party under this Agreement. Notwithstanding the foregoing, in such case, the Buyer shall be required to immediately pay to the Company a termination fee (the “Termination
Fee”), equal to the number of Commitment Shares multiplied by $2.00 multiplied by Unfunded Amount Percentage (as defined below). The Termination Fee may, at the election of the Buyer,

  

 -20- 

 
be paid in cash or in shares of common stock valued at $2.00 per share. “Unfunded Amount Percentage” means the percentage of the Aggregate Amount that the Company did not receive from
the Buyer during the term of this Agreement. 
 Except as set forth in Sections 11(k)(i) (in respect of an Event of Default under Sections 9(f),
9(g) and 9(h)), 11(k)(v) and 11(k)(vi), any termination of this Agreement pursuant to this Section 11(k) shall be effected by written notice from the Company to the Buyer, or the Buyer to the Company, as the case may be, setting forth the basis
for the termination hereof. The representations and warranties of the Company and the Buyer contained in Sections 2, 3 and 5 hereof, the indemnification provisions set forth in Section 8 hereof and the agreements and covenants set forth in
Section 11, shall survive the Commencement and any termination of this Agreement. No termination of this Agreement shall affect the Company’s or the Buyer’s rights or obligations (i) under the Registration Rights Agreement which
shall survive any such termination or (ii) under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any pending purchases under this Agreement. 

(l) No Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Buyer that it has not
engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Buyer represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or
finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder engaged by the Company relating to or
arising out of the transactions contemplated hereby. The Company shall pay, and hold the Buyer harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out of pocket expenses) arising in connection
with any such claim. 
 (m) No Strict Construction. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 

(n) Remedies, Other Obligations, Breaches and Injunctive Relief. Each party’s remedies provided in this Agreement shall be
cumulative and in addition to all other remedies available to it under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief), no remedy of either party contained herein shall be deemed a
waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit either party’s right to pursue actual damages for any failure by other party to comply with the terms of this Agreement. Each party acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the other and that the remedy at law for any such breach may be inadequate. Each party therefore agrees that, in the event of any such breach or threatened breach, the
other party shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 

(o) Failure or Indulgence Not Waiver. No failure or delay in the exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

* * * * * 
  

 -21- 

 IN WITNESS WHEREOF, the Buyer and the Company have caused this Common Stock Purchase
Agreement to be duly executed as of the date first written above. 
  

			
	THE COMPANY:
	
	DYNAVAX TECHNOLOGIES CORPORATION
		
	By:	 	 /s/ Dino Dina, MD

	Name:	 	Dino Dina, MD
	Title:	 	Chief Executive Officer
	
	BUYER:
	
	ASPIRE CAPITAL FUND, LLC
	BY:	 	ASPIRE CAPITAL PARTNERS, LLC
	BY:	 	SGM HOLDINGS CORP.
		
	By:	 	 /s/ Steven G. Martin

	Name:	 	Steven G. Martin
	Title:	 	President

  

 -22- 

 SCHEDULES 

 

			
	Schedule 3(a)	  	Subsidiaries
	Schedule 3(c)	  	Capitalization
	Schedule 3(e)	  	Conflicts
	Schedule 3(f)	  	1934 Act Filings
	Schedule 3(g)	  	Material Changes
	Schedule 3(h)	  	Litigation
	Schedule 3(j)	  	Intellectual Property
	Schedule 3(l)	  	Liens
	Schedule 3(p)	  	Transactions with Affiliates

EXHIBITS 
  

			
	Exhibit A	  	Form of Officer’s Certificate
	Exhibit B	  	Form of Resolutions of Board of Directors of the Company
	Exhibit C	  	Form of Secretary’s Certificate

 DISCLOSURE SCHEDULES 

Schedule 3(a) – Subsidiaries 
 Rhein
Biotech GmbH 
 Symphony Dynamo, Inc. 

Schedule 3(c) – Capitalization 

Except as disclosed in Note 2 to our Form 10-Q for the period ended June 30, 2010 filed with the SEC on August 2, 2010. 

Schedule 3(e) – No Conflicts 
 None

 Schedule 3(f) – 1934 Act Filings 

None 
 Schedule 3(g) – Absence of
Certain Changes 
 None 

Schedule 3(h) – Litigation 
 None

 Schedule 3(j) – Intellectual Property Rights 

Except as disclosed in the Risk Factors to our Form 10-Q for the period ended June 30, 2010 filed with the SEC on August 2, 2010. 

Schedule 3(l) – Title 
 None

 Schedule 3(p) – Transactions with Affiliates 

Except as disclosed in Note 2 and the Risk Factors to our Form 10-Q for the period ended June 30, 2010 filed with the SEC on August 2, 2010.

 EXHIBIT A 

FORM OF OFFICER’S CERTIFICATE 

This Officer’s Certificate (the “Certificate”) is being delivered pursuant to Section 7(e) of that certain
Common Stock Purchase Agreement dated as of                     , (the “Common Stock Purchase Agreement”), by and between
DYNAVAX TECHNOLOGIES CORPORATION, a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC (the “Buyer”). Terms used herein and not otherwise defined shall have the meanings ascribed to
them in the Common Stock Purchase Agreement. 
 The undersigned,
                    ,
                     of the Company, hereby certifies as follows: 

1. I am the
                     of the Company and make the statements contained in this Certificate; 

2. The representations and warranties of the Company set forth in Section 3 of the Common Stock Purchase Agreement
are true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 3 of the Common Stock Purchase Agreement, in which case, such representations
and warranties are true and correct without further qualification) as of the date when made and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which are true and
correct in all material respects as of such specific date); 
 3. The Company has performed, satisfied and
complied in all material respects with covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date. 

4. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to
any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally
able to pay its debts as they become due. 
 IN WITNESS WHEREOF, I have hereunder signed my name on this
     day of             . 
  

 

	
	  

	 Name:

	 Title:

The undersigned as Secretary of
                    , a
                     corporation, hereby certifies that
                     is the duly elected, appointed, qualified and acting
                     of
                     and that the signature appearing above is his genuine signature. 

 
  

	
	  

	 Secretary

 EXHIBIT B 

FORM OF COMPANY RESOLUTIONS 

FOR SIGNING PURCHASE AGREEMENT 

WHEREAS, there has been presented to the Board of Directors of the Corporation a draft of the Common Stock Purchase Agreement (the
“Purchase Agreement”) by and between the Corporation and Aspire Capital Fund, LLC (“Aspire”), providing for the purchase by Aspire of up to Thirty Million Dollars ($30,000,000) of the Corporation’s common
stock, par value $0.001 (the “Common Stock”); and 
 WHEREAS, after careful consideration of the Purchase
Agreement, the documents incident thereto and other factors deemed relevant by the Board of Directors, the Board of Directors has determined that it is advisable and in the best interests of the Corporation to engage in the transactions contemplated
by the Purchase Agreement, including, but not limited to, the issuance of 600,000 shares of Common Stock to Aspire as a commitment fee (the “Commitment Shares”) and the sale of shares of Common Stock to Aspire up to the available
amount under the Purchase Agreement (the “Purchase Shares”). 
 Transaction Documents 

NOW, THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase Agreement are hereby approved and
                             (the “Authorized Officers”) are severally authorized to
execute and deliver the Purchase Agreement, and any other agreements or documents contemplated thereby including, without limitation, a registration rights agreement (the “Registration Rights Agreement”) providing for the
registration of the shares of the Company’s Common Stock issuable in respect of the Purchase Agreement on behalf of the Corporation, with such amendments, changes, additions and deletions as the Authorized Officers may deem to be appropriate
and approve on behalf of, the Corporation, such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and 

FURTHER RESOLVED, that the Authorized Officers are hereby authorized to approve any amendments or supplements to the prospectus or
prospectuses forming a part of the Company’s outstanding shelf registration statement(s) on Form S-3, and to file or cause to be filed the same in order to cover the offer and sale of the Commitment Shares and the Purchase Shares under the
Purchase Agreement; and that terms and provisions of the Registration Rights Agreement by and among the Corporation and Aspire are hereby approved and the Authorized Officers are authorized to execute and deliver the Registration Rights Agreement
(pursuant to the terms of the Purchase Agreement), with such amendments, changes, additions and deletions as the Authorized Officer may deem appropriate and approve on behalf of, the Corporation, such approval to be conclusively evidenced by the
signature of an Authorized Officer thereon; and 
 FURTHER RESOLVED, that the terms and provisions of the Form of Transfer Agent
Instructions (the “Instructions”) are hereby approved and the Authorized Officers are authorized to execute and deliver the Instructions (pursuant to the terms of the Purchase Agreement), with such amendments, changes, additions and
deletions as the Authorized Officers may deem appropriate and approve on behalf of, the Corporation, such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and 

 Execution of Purchase Agreement 

FURTHER RESOLVED, that the Corporation be and it hereby is authorized to execute the Purchase Agreement providing for the purchase of common stock of the
Corporation having an aggregate value of up to $30,000,000; and 
 Issuance of Common Stock 

FURTHER RESOLVED, that the Corporation is hereby authorized to issue 600,000 shares of Common Stock to Aspire as Commitment Shares and
that upon issuance of the Commitment Shares pursuant to the Purchase Agreement, the Commitment Shares shall be duly authorized, validly issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof; and

 FURTHER RESOLVED, that the Corporation is hereby authorized to issue shares of Common Stock upon the purchase of Purchase
Shares up to the available amount under the Purchase Agreement in accordance with the terms of the Purchase Agreement and that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement, the Purchase Shares will be duly authorized,
validly issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof; and 
 FURTHER
RESOLVED, that the Corporation shall initially reserve 15,000,000 shares of Common Stock for issuance as Purchase Shares under the Purchase Agreement. 

Listing Of The Shares On The Nasdaq Capital Market 

FURTHER RESOLVED, that the officers of the Corporation with the assistance of counsel be, and each of them hereby is, authorized and
directed to take all necessary steps and do all other things necessary and appropriate to effect the listing of the Shares on the Nasdaq Capital Market. 

Approval of Actions 

FURTHER RESOLVED, that, without limiting the foregoing, the Authorized Officers are, and each of them hereby is, authorized and directed
to proceed on behalf of the Corporation and to take all such steps as deemed necessary or appropriate, with the advice and assistance of counsel, to cause the Corporation to consummate the agreements referred to herein and to perform its obligations
under such agreements; and 
 FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is, authorized,
empowered and directed on behalf of and in the name of the Corporation, to take or cause to be taken all such further actions and to execute and deliver or cause to be executed and delivered all such further agreements, amendments, documents,
certificates, reports, schedules, applications, notices, letters and undertakings and to incur and pay all such fees and expenses as in their judgment shall be necessary, proper or desirable to carry into effect the purpose and intent of any and all
of the foregoing resolutions, and that all actions heretofore taken by any officer or director of the Corporation in connection with the transactions contemplated by the agreements described herein are hereby approved, ratified and confirmed in all
respects. 

 EXHIBIT C 

FORM OF SECRETARY’S CERTIFICATE 

This Secretary’s Certificate (the “Certificate”) is being delivered pursuant to Section 7(k) of that certain
Common Stock Purchase Agreement dated as of                     , (the “Common Stock Purchase Agreement”), by and between
DYNAVAX TECHNOLOGIES CORPORATION, a Delaware corporation (the “Company”) and ASPIRE CAPITAL FUND, LLC (the “Buyer”), pursuant to which the Company may sell to the Buyer up to Thirty Million Dollars
($30,000,000) of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”). Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Common Stock Purchase Agreement.

 The undersigned,
                    , Secretary of the Company, hereby certifies as follows: 

1. I am the Secretary of the Company and make the statements contained in this Secretary’s Certificate. 

2. Attached hereto as Exhibit A and Exhibit B are true, correct and complete copies of the Company’s
by-laws (the “By-laws”) and Certificate of Incorporation (the “Certificate of Incorporation”), in each case, as amended through the date hereof, and no action has been taken by the Company, its directors, officers
or shareholders, in contemplation of the filing of any further amendment relating to or affecting the Bylaws or Articles. 

3. Attached hereto as Exhibit C are true, correct and complete copies of the resolutions duly adopted by the Board
of Directors of the Company on                     , at which a quorum was present and acting throughout. Such resolutions have not been
amended, modified or rescinded and remain in full force and effect and such resolutions are the only resolutions adopted by the Company’s Board of Directors, or any committee thereof, or the shareholders of the Company relating to or affecting
(i) the entering into and performance of the Common Stock Purchase Agreement, or the issuance, offering and sale of the Purchase Shares and the Commitment Shares and (ii) and the performance of the Company of its obligation under the
Transaction Documents as contemplated therein. 
 4. As of the date hereof, the authorized, issued and reserved
capital stock of the Company is as set forth on Exhibit D hereto. 
 IN WITNESS WHEREOF, I have hereunder signed
my name on this      day of                     . 

 
  

	
	  

	Secretary

 The undersigned as
                    of
                    , a
                    corporation, hereby certifies that
                     is the duly elected, appointed, qualified and acting Secretary of
                    , and that the signature appearing above is his genuine signature.Material Contract Employment Contract McZeal

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this 15th day of June 2010, by and between PGI ENERGY FUND
I SERIES-20l0, INC., a Texas corporation (the “Company”) and Marcellous McZeal (“Executive”), to become effective as of June 15, 2010 (the “Effective Date”). 

NOW THEREFORE, in consideration of Executive’s employment by the Company, and the mutual promises and covenants contained in, and
the mutual benefits to be derived from this Agreement, and to set forth and establish the terms and conditions upon which Executive shall be employed by the Company, the parties hereto agree as follows: 

 

	1.	Employment 

 The Company
hereby employs Executive and Executive hereby accepts such employment, upon the terms and conditions set forth herein. 
  

	2.	Terms and Conditions of Employment. 

 (a)
Executive shall be employed in the position of Chief Executive Officer and, subject to direction from the Board of Directors, shall serve in said capacity at the discretion of the board of directors, shall supervise, control and be
responsible for corporate governance, policy writing, acquisition and merger target procurement, contract preparation and review, loan docs prep, commitment docs, title report review, must approve all press releases and communications with media
sources and shall approve all executive employment contracts or recommendations for termination of employment by the board of directors. 

Executive shall also perform such related services and duties for the Company as are from time to time assigned or delegated to him from
time to time by the Board of Directors. Executive shall report directly to the Board of Directors. 
 (b) Throughout his
employment hereunder, Executive shall devote his full time, energy and skill to perform the duties of his employment (reasonable vacations in accordance with this Agreement and reasonable absences due to illness excepted), shall faithfully and
industriously perform such duties, and shall use his best efforts to follow and implement all management policies and decisions of the Board of Directors. The expenditure of reasonable amounts of time for teaching, personal, charitable, and
professional activities shall not be deemed a breach of this Agreement provided Executive does not materially interfere with the services required to be rendered to the Company hereunder. 

 

	3.	Compensation and Benefits. 

As the entire consideration for the services to be performed and the obligations incurred by Executive hereunder, and subject to the terms
and conditions hereof, during the Term (as defined below) of this Agreement, Executive shall be entitled to the following: 

(a) Salary. Commencing on July 1st, 2010, the Company shall pay Executive an annual salary of $250,000.00 (the “Annual
Salary”). As a signing bonus said executive shall receive one year salary in advance. In the event of separation of employment or termination of employment said advance shall be off-set and repaid to the company through reduction of severance
pay package and or recalling stock ownership issued as part of compensation. Such Annual Salary will be pro-rated for any partial employment period, will be payable in equal semi-monthly installments or at such other intervals as may be established
for the Company’s customary pay schedule. The Annual Salary is subject to such incremental increases as may determine from time to time and approved by the Board of Directors. 

 (b) Bonus. As additional compensation and as further consideration for his entering
into this Agreement for services to be rendered by Executive, the Company may pay Executive annually following the end of each fiscal year, a cash bonus. Such bonus shall be paid to Executive upon the satisfaction. as determined by the Board of
Directors at its sole discretion, by the Company of performance objectives as established by the Board of Directors of the Company on an annual basis. Executive shall have the right to direct any portion of the bonus to be paid into a deferred
compensation fund. 
 (c) Additional Benefits. Executive shall be entitled to participate, to the extent of
Executive’s eligibility, in any Executive benefit plans made available by the Company to its Executives during the Term of this Agreement, including, without limitation, such profit sharing plans, 401K and cafeteria plans, and health, life,
hospitalization, dental, disability or other insurance plans as may be in effect from time to time. Such participation shall be in accordance with the terms established from time to time by the Company for individual participation in any such plans.

 (d) Life Insurance. The Company shall provide Executive with a life insurance policy in an amount equal to the lesser
of (i) twice his Annual Salary or (ii) the maximum amount allowable under the Company’s life insurance plan. 

 (e) Vacation, Sick Leave, and Holidays. Executive shall be entitled to four
(4) weeks (28 business days) of vacation, and also sick leave and holidays at full pay in accordance with the Company’s policies established and in effect from time to time. 

(f) Deductions. The Company shall have the right to deduct and withhold from the compensation due to Executive hereunder,
including Executive’s Annual Salary and Compensation Bonus, if any, such taxes and other amounts as may be customary or required by law. 

(g) Change in Control. A “Change in Control” shall be deemed to have occurred if (i) a tender offer shall be made
and consummated for the ownership of more than 50% of the outstanding voting securities of the Company, (ii) the Company shall be merged, consolidated or reorganized with another corporation, partnership or other entity and as a result of such
merger, consolidation or reorganization less than 50% of the outstanding voting securities of the surviving or resulting corporation, partnership or other entity shall be owned in the aggregate by the shareholders of the Company, as determined
immediately prior to the consummation of such merger, consolidation or reorganization, (iii) the Company shall sell all or substantially all of its assets to another corporation which is not a wholly-owned subsidiary or affiliate in a single
transaction or a series of related transactions, or (iv) a person, within the meaning of Section 3(a)(9) or of Section 1 3(d)(3) (as in effect on the date hereof) of the Securities Exchange Act of 1934 (“Exchange Act”),
other than any Executive benefit plan then maintained by the Company, shall acquire more than 30% of the outstanding voting securities of the Company (whether directly, indirectly, beneficially or of record). For purposes hereof, ownership of voting
securities shall take into account and shall include ownership as determined by applying the provisions of Rule 1 3d-3(d)(l)(i) (as in effect on the date hereof) pursuant to the Exchange Act. 

 

	4.	Business Expenses. 

 The
Company shall promptly reimburse Executive for all reasonable out-of-pocket business expenses incurred in performing Executive’s duties hereunder, in accordance with the Company’s policies with respect thereto in effect from time to time
(including without limitation policies regarding prior consent for significant expenditures), provided that Executive promptly furnishes to the Company adequate records and other documentary evidence required by all federal and state statutes and
regulations issued by the appropriate taxing authorities for the substantiation of each such business expense as a deduction on the federal and state income tax returns of the Company. 

 

	5.	Term and Termination. 

(a) Term. The term of this Agreement (the “Term”) shall commence on the Effective Date of this Agreement, and subject to
earlier termination as provided below, and except for the provisions of this Agreement which, by their terms, continue in force beyond the termination hereof, shall end on June 15, 2015. 

(b) Termination on Death and for Cause. This Agreement, and Executive’s employment hereunder, shall terminate upon
Executive’s death and is otherwise immediately terminable for cause (as defined below) upon written notice from the Company to Executive. As used in this Agreement, “cause” shall include: (i) habitual neglect of or deliberate or
intentional refusal to perform any of Executive’s duties or obligations under this Agreement or to follow Company policies or procedures following written notification by the Board of Directors to Executive of his failure to perform such duties
or obligations or to follow such policies or procedures and a ten (10) day period for Executive to cure the failure set forth in such written notification; (ii) fraudulent or criminal activities; (iii) any grossly negligent act or
omission; (iv) deliberate breach of Company rules resulting in material loss or damage to the Company, or intentional or negligent unauthorized disclosure of Company trade secrets or confidential information; or (v) if Executive fails to
fulfill the annual performance goals and objectives, which shall be mutually determined by Executive and the President and Chief Executive Officer. A determination whether Executive’s actions justify termination for cause and the date such
termination is effective shall be made by the Board of Directors in their sole discretion. However, if Executive’s employment is terminated for cause under this Subsection, the Company shall pay to Executive a severance payment in the amount
equal to three (3) months of the salary then payable to Executive pursuant to Section 3(a) hereof on the date of termination, but not more than the portion of the Annual Salary left to be paid during the remainder of the Term. This
severance payment shall be made according to the terms and conditions in Section 5(d)(i) below. 

 (c) Termination for Disability. The Board of Directors may terminate this Agreement,
upon written notice to Executive, for the “disability” (as defined below) of Executive at the expiration of a consecutive twenty-six (26) week period of disability if the Board of Directors determines in their sole discretion that
Executive’s disability will prevent Executive from substantially performing Executive’s duties hereunder. As used in this Agreement, “disability” shall be defined as (i) Executive’s inability, by reason of physical or
mental illness or other cause, to perform substantially Executive’s duties hereunder; or (ii), in the discretion of the Board of Directors, as it is defined in any disability insurance policy in effect at the Company during the time in
question. Executive shall receive full compensation, benefits, and reimbursement of expenses pursuant to the terms of this Agreement from the date disability begins until the date Executive receives notice of termination under this paragraph or
until Executive begins to receive disability benefits pursuant to a Company disability insurance policy in an amount comparable to Executive’s salary, whichever occurs first. 

(d) Termination Without Cause or for Good Reason. The Company may terminate Executive’s employment hereunder at any time
during the Term for any reason other than for “cause” (as defined above) by giving Executive at least ten (10) days written notice, and Executive may terminate his employment at any time for “good reason” (as defined below)
by giving the Company at least ten (10) days written notice. If Executive’s employment is terminated pursuant to the preceding sentence, the Company shall pay to Executive all salary and bonuses accrued up to and including the date of
termination, all unused vacation and all unreimbursed expenses which are reimbursable pursuant to Section 4 incurred prior to such termination. As used in this Agreement, “good reason” shall be defined as (i) the material breach
of this Agreement by the Company, (ii) the assignment of Executive without their consent to a position, responsibilities or duties of a materially lesser status or degree of responsibility than their position, responsibilities, or duties as
stated in this Agreement, or (iii) any reduction of the Annual Salary without Executive’s consent. In addition, in the event of such termination without cause or for good reason, the Company shall have the following duties: 

(i) The Company shall pay to Executive a severance payment in an amount equal to six (6) months of the salary then payable to
Executive pursuant to Section 3(a) hereof on the date of termination, but not more than the Salary left to be paid during the remainder of the Term (the “Severance Payment”). The Severance Payment shall be paid in approximately equal
bi-weekly installments, or at such other intervals as may be established for the Company’s customary pay schedule, at the annual rate of Executive’s Salary on the date of termination; 

(ii) The Company shall pay to Executive all deferred compensation, if any, owed to Executive, under any other agreement in a single lump
sum payment immediately following termination. However, any amounts owed under a 401(k) or other plan qualified under the Internal Revenue Code shall be paid in accordance with the terms and provisions of such plans; 

(iii) All outstanding stock options allocated to Executive which would have been vested at the end of the Term had Executive remained
employed by the Company to the end of the Term, shall be immediately vested, subject to the restrictions that may apply under the law including restrictions applicable to any options granted under the Company’s 2010 Long-Term Incentive Plan;
and 
 (iv) Executive shall no longer be subject to the covenants and agreements not to compete under Section 6 of this
Agreement following the date of termination under this Section 5(d). 
 (e) Mutual Voluntary Termination. The
parties may mutually agree in writing to terminate this Agreement. In such event, Executive agrees, at the Company’s request, to continue providing services for a requested period of time up to, but not more than, six months after such
voluntary termination (the “Transition Period”) to facilitate transition. Executive shall be an independent contractor and not an employee during the Transition Period and shall be available to assist in the transition during such period.
During the Transition Period, Executive shall receive compensation equal to 110 percent of the Salary at the time of the voluntary termination. Payment of such compensation shall be made at least monthly. It is understood and agreed that Executive,
during the Transition Period, may be seeking other opportunities and will not be devoting 100 percent of his time to the affairs of the Company. The Company may elect to terminate the independent contractor relationship with Executive prior to the
end of the Termination Period once Executive accepts a full time position with another company. 
 (f) Effect of
Termination. In the event Executive’s employment is terminated hereunder, all obligations of the Company and all obligations of Executive shall cease except as otherwise provided herein. Upon such termination, Executive or Executive’s
representative or estate shall be entitled to receive only the compensation, benefits, and reimbursement earned or accrued by Executive under the terms of this Agreement prior to the date of termination computed pro rata up to and including the date
of termination, but shall not be entitled to any further compensation, benefits, or reimbursement from such date, except as otherwise provided herein. 

	6.	Covenant Not to Compete 

(a) Covenant. In exchange for providing to him Confidential Information, as defined below in Section 7 and as a means of
enforcing the obligation to protect that Confidential Information, Executive hereby covenants and agrees that during the Term and for a period of one (1) year thereafter, he will not, except as a director, officer, executive or consultant of
the Company, or any subsidiary or affiliate of the Company, directly or indirectly own, manage, operate, join, control, or participate in the ownership, management, operation or control of, or be connected with (as director, officer, executive,
consultant, agent, independent contractor of otherwise) in any other manner with any business engaged in the Defined Business (as described below) which is the same or substantially similar in nature to the business engaged in by the Company or
contemplated by the Company as of the date thereof in the State of Texas, and each of the other states in the United States, and each foreign country, in which the Company does business (whether directly or indirectly through subsidiaries,
affiliates, franchisees, licensees, representatives, agents or otherwise). Notwithstanding the foregoing, after termination of Executive’s employment with the Company, Executive may contract as an independent contractor or be employed in a
position with a business that is the same or substantially similar in nature to the business engaged by the Company, provided that Executive is neither employed by nor involved in any manner whatsoever with any part of the business that competes
directly with any product of the Company and Executive does not work on any product that competes with any product existing, being designed or in development by the Company. 

(b) Definition of Defined Business. As used herein, the term “Defined Business” shall mean the business of developing,
manufacturing, marketing or selling products that are similar to or compete with the current or contemplated products of the Company as of the date thereof. 

(c) Non-Solicitation Agreement. Executive shall not, directly or indirectly, solicit for employment, or advise or recommend to any
other person that they solicit for employment, any employee of the Company (or any subsidiary or affiliate), during the Term and for a term of two years thereafter; provided however, that this paragraph shall not preclude Executive from giving an
employment reference at the request of any Executive of the Company or at the request of a prospective employer of such Executive. 

(d) Conflicting Employment. Executive shall not, during the Term, engage in any other employment, occupation, consulting or other
business activity directly related to the Defined Business, nor will Executive engage in any other activities that conflict with his obligations to the Company. 

(e) Unique and Essential Nature of Services of Executive. Executive understands and acknowledges that the Company is entering into
this Agreement in reliance upon the unique and essential nature of the personal services Executive is to perform as an Executive of the Company and that irreparable injury would befall the Company or its subsidiaries or affiliates should Executive
serve a competitor of, or compete, with the Company or any of its subsidiaries or affiliates. 
 (f) Acknowledgment of
Reasonableness of Restrictions. Executive specifically acknowledges and agrees that the post-employment limitation upon his activities as specified above, together with the geographical limitations set forth above, are reasonable limitations as
to time and place upon Executive’s post-employment activities and that the restrictions are necessary to preserve, promote and protect the business, accounts and goodwill of the Company and impose no greater restraint than is reasonably
necessary to secure such protection. 
 (g) Limitation on Scope or Duration. In the event that any provision of this
Section 6 shall be held invalid or unenforceable by a court of competent jurisdiction by reason of the geographic or business scope or the duration thereof, such invalidity or unenforceability shall attach only to the scope or duration of such
provision and shall not affect or render invalid or unenforceable any other provision of this Section 6 and, to the fullest extent permitted by law, this Section shall be construed as if the geographic or business scope or the duration of such
provision had been more narrowly drafted so as not to be invalid or unenforceable but rather to provide the broadest protection to the Company permitted by law. 

	7.	Confidential Information. 

Company agrees that it will supply to Executive, and Executive will keep confidential and will not, during or after this Agreement, in any
medium, disclose, divulge, furnish or make accessible to any person, firm, corporation or other business entity or enterprise, any information, trade secrets, customer information, marketing information, sales information, cost information,
technical data, know-how, secret processes, discoveries, methods, patentable or non-patentable ideas, formulae, processing techniques or technical operations relating to the business, business practices, methods, products, processes, equipment,
financial affairs or any confidential or secret aspect of the business of the Company, including, by means of example and not limitation, the following; (i) information identifying or tending to identify any of the clients, customers,
executives, or distributors of the Company or any subsidiary of the Company; (ii) information regarding the intellectual property of the Company or any subsidiary of the Company, including all patents, trademarks, trade names, service marks,
and copyrighted materials, all computer programs, computer software (in object or executable code versions), computer source codes, and graphical user interface screens, and all copy, ideas, designs, methods, scripts, concepts, inventions,
recordings, advertising and promotional materials, whether or not protected under any law; and (iii) information pertaining to the plans, products, services, processes, prospects, supplies, procedures, techniques, research and development,
financial statements, and financial forecasts and projections of the Company or any subsidiary of the Company; but excluding information that has been intentionally disclosed to the public by the Company or any subsidiary of the Company or a
disclosure required by law, by a court of competent jurisdiction, or to respond in good faith to a valid inquiry by a governmental authority and training in the unique business methods of the Company (collectively, the “Confidential
Information”) without the prior written consent of the Company. Upon the termination of this Agreement for any reason, and at any time prior thereto upon request by the Company, Executive shall return to the Company all written records of any
Confidential Information, together with any and all copies of such records, in Executive’s possession. Any Confidential Information which Executive may conceive of or make during the Term shall be and remain the property of the Company.
Executive agrees promptly to communicate and disclose all such Confidential Information to the Company and to execute and deliver to the Company any instruments deemed necessary by the Company to effect disclosure and assignment thereof to it.

  

	8.	Assignment. 

 This
Agreement is for the unique personal services of Executive and is not assignable or delegable in whole or in part by Executive without the consent of the Board of Directors of the Company. This Agreement may be assigned or delegated in whole or in
part by the Company and, in such case, the terms of this Agreement shall inure to the benefit of, be assumed by, and be binding upon the entity to which this Agreement is assigned. 

 

	9.	Executive’s Warranty. 

Executive’s undertakings herein will not constitute a breach of any agreement to which Executive is a party or any obligation to
which Executive is bound. Executive is not bound by any non-disclosure or non-compete agreement which would in any way affect Executive’s performance of this Agreement. Executive has no obligations to others which are inconsistent with the
terms of this Agreement or with Executive’s duties to the Company under this Agreement. 
  

	10.	Exit Interview. 

 Upon
termination or expiration of the Agreement, Executive agrees to participate in an exit interview with the Board of Directors of the Company or their designee, wherein they will review the obligations under this Agreement and Executive will ask any
questions that he may have at that time concerning whether information that he was exposed in connection with this Agreement is considered confidential by the Company. Executive agrees that he will inform the Company at that time of any employer
with whom he has accepted employment as well as the position in which he will be employed. 
 Executive agrees to return all
property in his possession belonging to the Company or any subsidiary or affiliate, including all written or printed materials, keys, cards, equipment, cars, and any other item that is the property of the Company or any subsidiary or affiliate.
Executive specifically authorizes the Company to deduct from his paycheck any amounts due the Company or any subsidiary or affiliate, such as charges for the Company’s property damaged or not returned to the Company when requested, and any
unapproved charges incurred by Executive and payable by the Company. 
  

	11.	Injunctive Relief. 

Executive acknowledges and agrees that the remedies at law for any breach of any of Executive’s obligations under the provisions of
Sections 6, 7 or 9 would be inadequate, and agrees and consents that temporary and permanent injunctive relief may be granted in any proceeding which may be brought to enforce any of the provisions contained in Sections 6, 7 or 9 without the
necessity of proof of actual damage. 
  

	12.	Waiver or Modification. 

Any waiver, modification or amendment of any provision of this Agreement shall be effective only if in writing in a document that
specifically refers to this Agreement and such document is signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought. The waiver by either party of a breach of any provision of this Agreement
by the other party shall not operate or be construed as a waiver of any other provision hereof or any subsequent breach of the same provision hereof. The failure of the Company at any time, or from time to time, to require performance of any of
Executive’s obligations under this Agreement shall in no manner affect the Company’s right to enforce any provision of this Agreement at a subsequent time. 
  

	13.	Severability. 

 If any
provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect. 

	14.	Notices. 

 Any notice
required or permitted hereunder to be given by either party shall be in writing and shall be delivered personally or sent by certified or registered mail, postage prepaid, or by private courier, or by telex or telegram to the party to the address
set forth below or to such other address as either party may designate from time to time according to the terms of this paragraph: 
  

			
	To Executive at:	  	 7322 Southwest Frwy Ste 1100

Houston TX. 77074

		
	To the Company at:	  	 PGI ENERGY FUND SERIES-2010, Inc.

7322 Southwest Frwy Ste 1100
 Houston, TX 77074

 A notice delivered personally shall be effective upon receipt. A notice sent by facsimile or telegram shall
be effective twenty-four (24) hours after the dispatch thereof. A notice delivered by mail or by private courier shall be effective on the third day after the day of mailing. 

 

	15.	Attorney’s Fees. 

 In
the event of any action at law or equity to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees and court costs in addition to any other relief to which such party may be
entitled. 
  

	16.	Entire Agreement. 

 This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and, except for the agreement(s) evidencing the Restricted Stock award between Executive and the Company, supersedes all prior agreements
and understandings, both written and oral between the parties hereto with respect to the subject matter hereof and is not intended to confer upon any other person or entity any rights or remedies hereunder except as otherwise expressly provided
herein. 
  

	17.	Governing Law. 

 This
Agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to contracts entered into and to be performed entirely within such state. It is to be performed in Houston, Harris County, Texas. 

	18.	Counterparts. 

 This
Agreement is being executed in several counterparts, each to be considered an original for all purposes. 
 [Signature Page to
Follow] 

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first
set forth above. 
  

	
	EXECUTIVE:
	
	 /s/ Marcellous McZeal

	Marcellous McZeal

  

			
	THE COMPANY:
	
	PGI ENERGY FUND SERIES-2010, INC.
		
	By:	 	 /s/ Robert Gandy

	Its:	 	Majority Shareholder

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