Document:

exv10w20

 

Exhibit 10.20

DYNAVAX TECHNOLOGIES CORPORATION

MANAGEMENT CONTINUITY AND SEVERANCE AGREEMENT

     This Management Continuity and Severance Agreement (the “Agreement”) is dated as of
January 4, 2005, by and between Deborah A. Smeltzer, Chief Financial Officer and Vice President,
Operations, Dynavax Technologies Corporation (“Employee”), and Dynavax Technologies Corporation, a
Delaware corporation (the “Company” or “Dynavax”).

RECITALS

     A. It is expected that another company may from time to time consider the possibility of
acquiring the Company or that a change in control may otherwise occur, with or without the approval
of the Company’s Board of Directors. The Board of Directors recognizes that such consideration can
be a distraction to Employee and can cause Employee to consider alternative employment
opportunities. The Board of Directors has determined that it is in the best interests of the
Company to assure that the Company will have the continued dedication and objectivity of the
Employee, notwithstanding the possibility, threat, or occurrence of a Change of Control (as defined
below) of the Company.

     B. The Company’s Board of Directors believes it is in the best interests of the Company to
retain Employee and provide incentives to Employee to continue in the service of the Company.

     C. The Board of Directors further believes that it is imperative to provide Employee with
certain benefits upon a Change of Control and, under certain circumstances, upon termination of
Employee’s employment in connection with a Change of Control and independent of a Change of
Control, which benefits are intended to provide Employee with encouragement to Employee to remain
with the Company, notwithstanding the possibility of a Change of Control or an employment
termination.

     D. To accomplish the foregoing objectives, the Board of Directors has directed the Company,
upon execution of this Agreement by Employee, to agree to the terms provided in this Agreement.

     Now therefore, in consideration of the mutual promises, covenants, and agreements contained
herein, and in consideration of the continuing employment of Employee by the Company, the parties
hereto agree as follows:

     1. At-Will Employment. The Company and Employee acknowledge that Employee’s
employment is and shall continue to be at-will, as defined under applicable law, and that
Employee’s employment with the Company may be terminated by either party at any time for any or no
reason. If Employee’s employment terminates for any reason, Employee shall not be entitled to any
payments, benefits, damages, award, or compensation other than as provided in

 

 

this Agreement, and as may otherwise be available in accordance with the terms of the
Company’s established employee plans and written policies at the time of termination. The terms of
this Agreement shall terminate upon the earlier of: (i) the date on which Employee ceases to be
employed as an executive corporate officer of the Company, other than as a result of an Involuntary
Termination by the Company without Cause; or (ii) the date that all obligations of the parties
hereunder have been satisfied. A termination of the terms of this Agreement pursuant to the
preceding sentence shall be effective for all purposes, except that such termination shall not
affect the payment or provision of compensation or benefits on account of a termination of
employment occurring prior to the termination of the terms of this Agreement. The rights and
duties created by this Section 1 may not be modified in any way except by a written agreement
executed by an officer of the Company upon direction from the Board of Directors.

     2. Benefits Upon Termination of Employment.

          (a) Termination for Cause. If Employee’s employment is terminated for Cause at any
time, then Employee shall not be entitled to receive payment of any severance benefits. Employee
will receive payment for all salary as of the date of Employee’s termination of employment and
Employee’s benefits will be continued under the Company’s then existing benefit plans and policies
in accordance with such plans and policies in effect on the date of termination and in accordance
with applicable law.

          (b) Voluntary Resignation. If Employee voluntarily resigns from the Company (the
Employee’s employment does not end by reason of Involuntary Termination), then Employee shall not
be entitled to receive payment of any severance benefits. Employee will receive payment for all
salary as of the date of Employee’s termination of employment and Employee’s benefits will be
continued under the Company’s then existing benefit plans and policies in accordance with such
plans and policies in effect on the date of termination and in accordance with applicable law.

          (c) Involuntary Termination. If Employee’s employment is terminated for Involuntary
Termination, then the Employee shall be entitled to: (1) six (6) months of Employee’s then current
annual base salary (less appropriate withholding deductions) to be paid over 6 months in accordance
with the Company’s payroll cycle; (2) six (6) months of COBRA Continuation paid by the Company if
COBRA Continuation is elected; (3) an additional six (6) months vesting of employee’s stock option
to purchase the Company’s Common Stock; and (4) as per the Dynavax Technologies 2004 Stock Option
Plan, ninety (90) days to exercise vested options.

          (d) Termination for Death or Disability. If Employee’s employment terminates due to
Employee’s death, then Employee’s beneficiary will receive any salary earned (less appropriate
withholding deductions) through the date of termination of employment. If Employee’s employment
terminates due to becoming disabled, all salaries due to Employee will be paid through the date of
inception of Employee’s disability.

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               In the event of termination for either death or disability, the exercise period of all vested
options granted to Employee by the Company is extended to twelve (12) months from the date of
termination of employment.

     3. Benefits Upon a Change of Control.

          (a) Treatment of Stock Options. In the event of a Change of Control and the Employee:
(i) is offered and accepts a position with the New Company, or (ii) is not offered a position as
an executive officer with the New Company, then immediately prior to the effective date of the
Change of Control an additional two (2) years vesting of Employee’s stock option to purchase the
Company’s Common Stock granted to Employee over the course of his employment with the Company and
held by Employee on the effective date of a Change of Control shall immediately vest on such date
as to that number of shares that would have vested in accordance with the terms of the 1997
Incentive Plan, as amended. “New Company,” as used in this section, shall mean: (a) in the case
of a Change of Ownership (as defined in Section 4(a)(i) below), the Company; (b) in the case of a
Merger (as defined in Section 4(a)(ii) below), the surviving entity; or (c) in the case of a Sale
of Assets (as described in section 4(a)(ii) below), the purchaser of all or substantially all of
the Company’s assets.

          (b) Severance. In the event that Employee’s employment is terminated within
twenty-four (24) months of a Change of Control, the Employee shall be entitled to: (1) twelve (12)
months of Employee’s then current annual base salary, less applicable withholding deductions to be
paid over 12 months in accordance with the Company’s payroll cycle; (2) a lump-sum cash payment
equal to the Employee’s target incentive bonus of forty percent (40%) (or such higher percentage
then in effect under the management incentive program or other similar bonus program) of the
Employee’s then current annual base salary, less applicable withholding deductions; and (3) twelve
(12) months Company-paid COBRA continuation coverage upon Employee’s election of COBRA Continuation
Coverage.

     4. Definition of Terms. The following terms referred to in this Agreement shall have
the following meanings:

          (a) Change of Control. “Change of Control” shall mean the occurrence of any of the
following events:

               (i) Change of Ownership. Any “Person” (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “Beneficial Owner”
(as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then outstanding
voting securities; or

               (ii) Merger/Sale of Assets. A merger or consolidation of the Company whether or not
approved by the Board, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity) at
least 50% of the total voting power represented by the voting

-3-

 

securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of
the Company’s assets.

          (b) Cause. “Cause” shall mean: (i) gross negligence or willful misconduct in the
performance of Employee’s duties to the Company, where such gross negligence or willful misconduct
has resulted or is likely to result in substantial and material damage to the Company or its
subsidiaries; (ii) repeated unexplained or unjustified absence from the Company; (iii) a material
and willful violation of any federal or state law; (iv) commission of any act of fraud with respect
to the Company; or (v) conviction of a felony or a crime involving moral turpitude causing material
harm to the standing and reputation of the Company, in each case as determined in good faith by the
Board.

          (c) Involuntary Termination. “Involuntary Termination” shall mean: (i) any
termination by the Company other than for Cause; (ii) Employee’s voluntary termination following a
material reduction or change in job duties, responsibilities, and requirements inconsistent with
the Employee’s position with the Company and the Employee’s prior duties, responsibilities, and
requirements, or a change in the level of management to which the Employee reports; (iii) any
reduction of Employee’s base compensation (other than in connection with a general decrease in base
salaries for most officers of the successor corporation); or (iv) Employee’s refusal to relocate to
a facility or location more than 15 miles from the Company’s current location.

     5. Conflicts. Employee represents that his performance of all the terms of this
Agreement will not breach any other agreement to which Employee is a party. Employee has not
entered, and will not during the term of this Agreement enter, into any oral or written agreement
in conflict with any of the provisions of this Agreement. Employee further represents that he is
entering into or has entered into an employment relationship with the Company of his own free will
and that he has not been solicited as an employee in any way by the Company.

     6. Successors. Any successor to the Company (whether direct or indirect and whether
by purchase, lease, merger, consolidation, liquidation, or otherwise) to all or substantially all
of the Company’s business and/or assets shall assume the obligations under this Agreement and agree
expressly to perform the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a succession. The
terms of this Agreement and all of Employee’s rights hereunder and thereunder shall inure to the
benefit of, and be enforceable by, Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees.

     7. Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices
to Employee shall be addressed to Employee at the home address that Employee most recently
communicated to the Company in writing. In the case of the Company, mailed

-4-

 

notices shall be addressed to its corporate headquarters, and all notices shall be directed to the
attention of its Secretary.

     8. Miscellaneous Provisions.

          (a) No Duty to Mitigate. Employee shall not be required to mitigate the amount of any
payment contemplated by this Agreement (whether by seeking new employment or in any other manner),
nor shall any such payment be reduced by any earnings that Employee may receive from any other
source.

          (b) Waiver. No provision of this Agreement shall be modified, waived, or discharged
unless the modification, waiver, or discharge is agreed to in writing and signed by Employee and by
an authorized officer of the Company (other than Employee). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time.

          (c) Whole Agreement. No agreements, representations, or understandings (whether oral
or written and whether expressed or implied) which are not expressly set forth in this Agreement
have been made or entered into by either party with respect to the subject matter hereof, except as
set forth in the employment offer letter from the Company to the Employee dated December 18, 2004.
This Agreement supersedes any agreement of the same title and concerning similar subject matter
dated prior to the date of this Agreement, and by execution of this Agreement both parties agree
that any such predecessor agreement shall be deemed null and void.

          (d) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California without reference to conflict of
laws provisions.

          (e) Severability. If any term or provision of this Agreement or the application
thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering unenforceable the remaining
terms and provisions of this Agreement or the application of such terms and provisions to
circumstances other than those as to which it is held invalid or unenforceable, and a suitable and
equitable term or provision shall be substituted therefore to carry out, insofar as may be valid
and enforceable, the intent and purpose of the invalid or unenforceable term or provision.

          (f) Arbitration. Any dispute or controversy arising under or in connection with this
Agreement may be settled at the option of either party by binding arbitration in the County of
Alameda, California, in accordance with the rules of the American Arbitration Association then in
effect before a single arbitrator. The judgment may be entered on the arbitrator’s award in any
court having jurisdiction. Punitive damages shall not be awarded.

-5-

 

          (g) Legal Fees and Expenses. The parties shall each bear their own expenses, legal
fees, and other fees incurred in connection with this Agreement. This means the Company pays its
own legal fees in connection with this Agreement and the Employee is responsible for his own legal
fees in connection with this Agreement. However, the arbitrator may award legal fees and expenses
in connection with any arbitration as deemed appropriate.

          (h) No Assignment of Benefits. The rights of any person to payments or benefits under
this Agreement shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment, or other creditor’s process, and any action in violation of this Section
8(h) shall be void.

          (i) Employment Taxes. All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

          (j) Assignment by Company. The Company may assign its rights under this Agreement to
an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of
the Company or to the Company; provided, however, that such assignee is the employer of the
Employee. In the case of any such assignment, the term “Company” when used in a section of this
Agreement shall mean the corporation that actually employs the Employee except that the term
“Company” shall continue to mean Dynavax Technologies Corporation with regard to the definition of
a Change of Control.

          (k) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

-6-

 

               The parties have executed this Agreement on the date first written above.

	 	 	 	 	 	 	 
	 	 	DYNAVAX TECHNOLOGIES CORPORATION
	 	 	
	 

	 	By:
	 	    /s/ Dino Dina

	 	 
	 
	 	 	 	 	 	 
	

	 	Title:
	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	

	 	Address:
	     2929 Seventh Street, Suite 100

     Berkeley, CA 94710	 	 
	 
	 	 	 	 	 	 
	 	 	DEBORAH A. SMELTZER
	 
	 	 	 	 	 	 
	

	 	Signature:
	    /s/ Deborah A. Smeltzer	 	 
	

	 	 	 	
	 	 
	

	 	Address:
	     [intentionally omitted]	 	 

-7-<PAGE>

                                  EXHIBIT 10.1

CONTACT: CUSTOMER SERVICES -- CTSLINK
         WELLS FARGO BANK MINNESOTA, N.A.
         SECURITIES ADMINISTRATION SERVICES
         7485 NEW HORIZON WAY
         FREDERICK, MD  21703
         WWW.CTSLINK.COM
         TELEPHONE:        (301) 815-6600
         FAX:              (301) 315-6660

                                SHT SERIES 2004-1
                         RECORD DATE: NOVEMBER 30, 2004
                      DISTRIBUTION DATE: DECEMBER 20, 2004

<TABLE>
<CAPTION>

                                      CERTIFICATEHOLDER DISTRIBUTION SUMMARY
------------- --------------- ------------- ----------------- ------------------ ----------------
                              Certificate                          Beginning
                                 Class      Certificate Pass-     Certificate        Interest
   Class          CUSIP       Description     Through Rate          Balance        Distribution
------------- --------------- ------------- ----------------- ------------------ ----------------
<S>           <C>             <C>           <C>               <C>                <C>
    NOTE        817419AA2         SEN               2.37000%     293,456,536.08       540,938.22
     L          SHT04002L         DRAW              0.00000%               0.00             0.00
     O          SHT04002O          OC               0.00000%       2,288,489.09             0.00
   AMBAC                          FEE               0.12000%               0.00        29,345.65
------------- --------------- ------------- ----------------- ------------------ ----------------
Totals                                                           295,745,025.17       570,283.87
------------- --------------- ------------- ----------------- ------------------ ----------------
</TABLE>

<TABLE>
<CAPTION>

                                      CERTIFICATEHOLDER DISTRIBUTION SUMMARY
------------- --------------- --------------- ------------------ ----------------- ----------------

                Principal        Current      Ending Certificate       Total          Cumulative
   Class       Distribution   Realized Loss         Balance        Distribution     Realized Loss
------------- --------------- --------------- ------------------ ----------------- ----------------
<S>           <C>             <C>             <C>                <C>               <C>
    NOTE        7,327,303.35            0.00     286,129,232.73      7,868,241.57             0.00
     L                  0.00            0.00               0.00              0.00             0.00
     O                  0.00            0.00       2,824,941.18              0.00             0.00
   AMBAC                0.00            0.00               0.00         29,345.65             0.00
------------- --------------- --------------- ------------------ ----------------- ----------------
Totals          7,327,303.35            0.00     288,954,173.91      7,897,587.22             0.00
------------- --------------- --------------- ------------------ ----------------- ----------------

</TABLE>

All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee.

<TABLE>
<CAPTION>

                                         PRINCIPAL DISTRIBUTION STATEMENT
------------- ---------------- ------------------ -------------- ----------------- -----------
                                   Beginning        Scheduled      Unscheduled
               Original Face      Certificate       Principal       Principal
   Class          Amount            Balance       Distribution     Distribution    Accretion
------------- ---------------- ------------------ -------------- ----------------- -----------
<S>           <C>              <C>                <C>            <C>               <C>
    NOTE       317,044,000.00     293,456,536.08           0.00      7,327,303.35        0.00
     L                   0.00               0.00           0.00              0.00        0.00
     O                  81.98       2,288,489.09           0.00              0.00        0.00
   AMBAC                 0.00               0.00           0.00              0.00        0.00
              ---------------- ------------------ -------------- ----------------- -----------
Totals         317,044,081.98     295,745,025.17           0.00      7,327,303.35        0.00
------------- ---------------- ------------------ -------------- ----------------- -----------
</TABLE>

<TABLE>
<CAPTION>
                                         PRINCIPAL DISTRIBUTION STATEMENT
------------- ------------ ---------------- ------------------- ------------------- ------------------

               Realized    Total Principal  Ending Certificate  Ending Certificate    Total Principal
   Class       Loss (1)       Reduction           Balance           Percentage          Distribution
------------- ------------ ---------------- ------------------- ------------------- ------------------
<S>           <C>          <C>              <C>                 <C>                 <C>
    NOTE             0.00     7,327,303.35      286,129,232.73          0.90249061       7,327,303.35
     L               0.00             0.00                0.00          0.00000000               0.00
     O               0.00             0.00        2,824,941.18     34,458.90680654               0.00
   AMBAC             0.00             0.00                0.00          0.00000000               0.00
              ------------ ---------------- ------------------- ------------------- ------------------
Totals               0.00     7,327,303.35      288,954,173.91          0.91140062       7,327,303.35
------------- ------------ ---------------- ------------------- ------------------- ------------------
</TABLE>

(1) Amount does not include excess special hazard, bankruptcy, or fraud losses
unless otherwise disclosed. Please refer to the prospectus supplement for a full
description.

<TABLE>
<CAPTION>

                                     PRINCIPAL DISTRIBUTION FACTORS STATEMENT
------------- ---------------- -------------------- ------------- --------------- --------------
                                                     Scheduled     Unscheduled
               Original Face        Beginning        Principal      Principal
   Class          Amount       Certificate Balance  Distribution   Distribution     Accretion
------------- ---------------- -------------------- ------------- --------------- --------------
<S>           <C>              <C>                  <C>           <C>             <C>
    NOTE       317,044,000.00         925.60192301    0.00000000     23.11131373     0.00000000
     L                   0.00           0.00000000    0.00000000      0.00000000     0.00000000
     O                  81.98     7915212.12490850    0.00000000      0.00000000     0.00000000
   AMBAC                 0.00           0.00000000    0.00000000      0.00000000     0.00000000
------------- ---------------- -------------------- ------------- --------------- --------------
</TABLE>

<TABLE>
<CAPTION>

                                     PRINCIPAL DISTRIBUTION FACTORS STATEMENT
------------- ---------------- -------------- --------------------- ------------------ -------------
                                   Total                                 Ending           Total
                 Realized        Principal     Ending Certificate      Certificate      Principal
   Class         Loss (3)        Reduction          Balance            Percentage      Distribution
------------- ---------------- -------------- --------------------- ------------------ -------------
<S>           <C>              <C>            <C>                   <C>                <C>
    NOTE           0.00000000    23.11131373          902.49060928         0.90249061   23.11131373
     L             0.00000000     0.00000000            0.00000000         0.00000000    0.00000000
     O             0.00000000     0.00000000     34458906.80653820     34458.90680654    0.00000000
   AMBAC           0.00000000     0.00000000            0.00000000         0.00000000    0.00000000
------------- ---------------- -------------- --------------------- ------------------ -------------

</TABLE>

(3) Amount does not include excess special hazard, bankruptcy, or fraud losses
unless otherwise disclosed. Please refer to the prospectus supplement for a full
description.

<PAGE>

<TABLE>
<CAPTION>

                                          INTEREST DISTRIBUTION STATEMENT
------------- ---------------- ---------------- ---------------- -------------- ------------- -------------

                                                   Beginning                     Payment of
                                                 Certificate/       Current        Unpaid       Current
               Original Face       Current         Notional         Accrued       Interest      Interest
   Class          Amount       Certificate Rate    Balance         Interest      Shortfall     Shortfall
------------- ---------------- ---------------- ---------------- -------------- ------------- -------------
<S>           <C>              <C>              <C>              <C>            <C>           <C>
    NOTE       317,044,000.00         2.37000%   293,456,536.08     540,938.21          0.00          0.00
     L                   0.00         0.00000%             0.00           0.00          0.00          0.00
     O                  81.98         0.00000%     2,288,489.09           0.00          0.00          0.00
   AMBAC                 0.00         0.12000%   293,456,536.08      29,345.65          0.00          0.00
------------- ---------------- ---------------- ---------------- -------------- ------------- -------------
   Totals      317,044,081.98                                       570,283.86          0.00          0.00
------------- ---------------- ---------------- ---------------- -------------- ------------- -------------
</TABLE>

<TABLE>
<CAPTION>
                                          INTEREST DISTRIBUTION STATEMENT
------------- ------------ ------------ ---------------- ------------- ------------------

                  Non-                                     Remaining         Ending
               Supported                                     Unpaid       Certificate/
                Interest     Realized    Total Interest     Interest       Notational
   Class        Shortfall    Loss (4)     Distribution     Shortfall         Balance
------------- ------------ ------------ ---------------- ------------- ------------------
<S>           <C>          <C>          <C>              <C>           <C>
    NOTE             0.00         0.00       540,938.22          0.00     286,129,232.73
     L               0.00         0.00             0.00          0.00               0.00
     O               0.00         0.00             0.00          0.00       2,824,941.18
   AMBAC             0.00         0.00        29,345.65          0.00     286,129,232.73
------------- ------------ ------------ ---------------- ------------- ------------------
   Totals            0.00         0.00       570,283.87          0.00
------------- ------------ ------------ ---------------- ------------- ------------------
</TABLE>
(4) Amount does not include excess special hazard, bankruptcy, or fraud losses
unless otherwise disclosed. Please refer to the prospectus supplement for a full
description.

<TABLE>
<CAPTION>
                                      INTEREST DISTRIBUTION FACTORS STATEMENT
-------------- ---------------- ------------- -------------------- ------------ ------------ --------------

                                                                                Payment of
                                  Current          Beginning         Current      Unpaid        Current
  Class (5)     Original Face   Certificate      Certificate/        Accrued     Interest      Interest
                   Amount           Rate       Notional Balance     Interest     Shortfall     Shortfall
-------------- ---------------- ------------- -------------------- ------------ ------------ --------------
<S>            <C>              <C>           <C>                  <C>          <C>          <C>
    NOTE        317,044,000.00      2.37000%         925.60192301   1.70619286    0.00000000    0.00000000
      L                   0.00      0.00000%           0.00000000   0.00000000    0.00000000    0.00000000
      O                  81.98      0.00000%    27915212.12490850   0.00000000    0.00000000    0.00000000
    AMBAC                 0.00      0.12000%         925.60192301   0.09256018    0.00000000    0.00000000
-------------- ---------------- ------------- -------------------- ------------ ------------- -------------
</TABLE>

<TABLE>
<CAPTION>
                                      INTEREST DISTRIBUTION FACTORS STATEMENT
-------------- ------------ -------------- --------------- ------------ --------------------

                    Non-                                     Remaining
                 Supported                                     Unpaid
  Class (5)       Interest    Realized      Total Interest   Interest    Ending Certificate/
                 Shortfall    Loss (6)       Distribution    Shortfall   Notational Balance
-------------- ------------ -------------- --------------- ------------ --------------------
<S>            <C>          <C>            <C>             <C>          <C>
    NOTE         0.00000000    0.00000000      1.70619289   0.00000000         902.49060928
      L          0.00000000    0.00000000      0.00000000   0.00000000           0.00000000
      O          0.00000000    0.00000000      0.00000000   0.00000000    34458906.80653820
    AMBAC        0.00000000    0.00000000      0.09256018   0.00000000         902.49060928
-------------- ------------- ------------- --------------- ------------ --------------------
</TABLE>
(5) Per $1 denomination
(6) Amount does not include excess special hazard, bankruptcy, or fraud losses
unless otherwise disclosed. Please refer to the prospectus supplement for a full
description.

<TABLE>
<CAPTION>
                               CERTIFICATEHOLDER ACCOUNT STATEMENT
-------------------------------------------------------------------------------------------------
                                       CERTIFICATE ACCOUNT
<S>                                                                     <C>
Beginning Balance                                                                     0.00

Deposits
         Payments of Interest and Principal                                   8,026,754.68
         Liquidations, Insurance Proceeds, Reserve Funds                              0.00
         Proceeds from Repurchased Loans                                              0.00
         Other Amounts (Servicer Advances)                                            0.00
         Realized Losses (Gains, Subsequent Expenses & Recoveries)                    0.00
         Prepayment Penalties                                                         0.00
                                                                       --------------------
Total Deposits                                                                8,026,754.68

Withdrawals
         Reimbursement for Servicer Advances                                          0.00
         Payment of Service Fee                                                 129,167.46
         Payment of Interest and Principal                                    7,897,587.22
                                                                       --------------------
Total Withdrawals (Pool Distribution Amount)                                  8,026,754.68

Ending Balance                                                                        0.00
                                                                       ====================

-------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

--------------------------------------------------------------------------------

                    PREPAYMENT/CURTAILMENT INTEREST SHORTFALL

<TABLE>
<S>                                                           <C>
Total Prepayment/Curtailment Interest Shortfall                             0.00
Servicing Fee Support                                                       0.00
                                                              ------------------

Non-Supported Prepayment Curtailment Interest Shortfall                     0.00
                                                              ==================
</TABLE>

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                 SERVICING FEES

<TABLE>
<S>                                                           <C>

    Gross Servicing Fee                                               125,470.65
    Master Servicing Fee                                                3,696.81
    Supported Prepayment/Curtailment Interest Shortfall                     0.00
                                                              ------------------

    Net Servicing Fee                                                 129,167.46
                                                              ==================
</TABLE>

--------------------------------------------------------------------------------

<TABLE>
-------------------------------------------------------------------------------------------------------------
                                               OTHER ACCOUNTS

                                                 Beginning          Current          Current       Ending
                Account Type                      Balance         Withdrawals       Deposits       Balance
--------------------------------------------- ---------------- ------------------ -------------- ------------
<S>                                           <C>              <C>                <C>            <C>
Financial Guaranty                                 0.00              0.00             0.00          0.00

-------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                              LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT
---------------------------------------- ---------------------------------- -----------------------------------
              DELINQUENT                            BANKRUPTCY                         FORECLOSURE
---------------------------------------- ---------------------------------- -----------------------------------

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>           <C>          <C>           <C>        <C>         <C>         <C>        <C>          <C>
0-29 Days          0               0.00  0-29 Days      2       163,162.86  0-29 Days       2        62,739.98
30 Days            3         104,034.96  30 Days        0             0.00  30 Days         0             0.00
60 Days            0               0.00  60 Days        0             0.00  60 Days         0             0.00
90 Days            1          14,739.98  90 Days        0             0.00  90 Days         0             0.00
120 Days           1          48,000.00  120 Days       0             0.00  120 Days        0             0.00
150 Days           0               0.00  150 Days       0             0.00  150 Days        0             0.00
180+ Days          0               0.00  180+ Days      0             0.00  180+ Days       0             0.00
              ------------ -------------            ----------- -----------             ----------- -----------
                   5         166,774.94                 2       163,162.86                  2        62,739.98

<CAPTION>

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>           <C>          <C>           <C>        <C>         <C>         <C>        <C>          <C>
0-29 Days      0.000000%    0.000000%    0-29 Days  0.042026%   0.056467%   0-29 Days   0.042026%   0.021713%
30 Days        0.063038%    0.036004%    30 Days    0.000000%   0.000000%   30 Days     0.000000%   0.000000%
60 Days        0.000000%    0.000000%    60 Days    0.000000%   0.000000%   60 Days     0.000000%   0.000000%
90 Days        0.021013%    0.005101%    90 Days    0.000000%   0.000000%   90 Days     0.000000%   0.000000%
120 Days       0.021013%    0.016612%    120 Days   0.000000%   0.000000%   120 Days    0.000000%   0.000000%
150 Days       0.000000%    0.000000%    150 Days   0.000000%   0.000000%   150 Days    0.000000%   0.000000%
180+ Days      0.000000%    0.000000%    180+ Days  0.000000%   0.000000%   180+ Days   0.000000%   0.000000%
              ------------ -------------            ----------- -----------             ----------- -----------
               0.105064%    0.057717%               0.042026%   0.056467%               0.042026%   0.021713%

------------- ------------ ------------- ---------------------------------- -----------------------------------

</TABLE>

<TABLE>
<CAPTION>
                              LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT
------------------------------------------------ -------------------------------------
                            REO                                 TOTAL
------------------------------------------------ -------------------------------------

              No. of     Principal                 No. of     Principal
               Loans      Balance                  Loans       Balance
<S>         <C>         <C>          <C>         <C>         <C>
0-29 Days        0             0.00  0-29 Days       4         225,902.84
30 Days          0             0.00  30 Days         3         104,034.96
60 Days          0             0.00  60 Days         0               0.00
90 Days          0             0.00  90 Days         1          14,739.98
120 Days         0             0.00  120 Days        1          48,000.00
150 Days         0             0.00  150 Days        0               0.00
180+ Days        0             0.00  180+ Days       0               0.00
            ------------ -----------             ----------- -------------
                 0             0.00                  9         392,677.78

<CAPTION>

              No. of     Principal                 No. of     Principal
               Loans      Balance                  Loans       Balance
<S>         <C>          <C>         <C>         <C>          <C>
0-29 Days    0.000000%   0.000000%   0-29 Days   0.084051%    0.078179%
30 Days      0.000000%   0.000000%   30 Days     0.063038%    0.036004%
60 Days      0.000000%   0.000000%   60 Days     0.000000%    0.000000%
90 Days      0.000000%   0.000000%   90 Days     0.021013%    0.005101%
120 Days     0.000000%   0.000000%   120 Days    0.021013%    0.016612%
150 Days     0.000000%   0.000000%   150 Days    0.000000%    0.000000%
180+ Days    0.000000%   0.000000%   180+ Days   0.000000%    0.000000%
            ------------ -----------             ----------- -------------
             0.000000%   0.000000%               0.189115%    0.135896%

------------------------------------------------ -------------------------------------
</TABLE>

<TABLE>
<S>                                         <C>    <C>                                           <C>      <C>                 <C>
Current Period Class A Insufficient Funds:  0.00   Principal Balance of Contaminated Properties  0.00     Periodic Advance    0.00
</TABLE>

<TABLE>

------------------------------------------------------------------------------------------------------------
<S>                                     <C>                    <C>                      <C>
Class L                                 81.98                  0.00002586%              2,824,941.18
Class O                                  0.00                  0.00000000%                      0.00

</TABLE>
<TABLE>
-------------------------------------------------------------------------------------------------------------
<S>                                       <C>                          <C>                     <C>
Class L                                   0.98729555%                  0.000000%               0.000000%
Class O                                   0.00000000%                  0.987296%               0.000000%

Please refer to the prospectus supplement for a full description of loss exposure
-------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>

-------------------------------------------------------------------------------------------------------------------

                                               COLLATERAL STATEMENT
<S>                                                                                                 <C>
Collateral Description                                                                                   Mixed Arm

Weighted Average Gross Coupon                                                                            5.014739%
Weighted Average Net Coupon                                                                              4.505636%
Weighted Average Pass-Through Rate                                                                       4.490636%
Weighted Average Maturity (Stepdown Calculation)                                                                 0

Beginning Scheduled Collateral Loan Count                                                                    4,894
Number of Loans Paid in Full                                                                                   135
Ending Scheduled Collateral Loan Count                                                                       4,759

Beginning Scheduled Collateral Balance                                                              293,456,536.08
Ending Scheduled Collateral Balance                                                                 286,129,232.73
Ending Actual Collateral Balance at 30-Nov-2004                                                     288,954,173.91

Monthly P&I Constant                                                                                          0.00
Special Servicing Fee                                                                                         0.00
Prepayment Penalties                                                                                          0.00
Realized Loss Amount                                                                                          0.00
Cumulative Realized Loss                                                                                      0.00

-------------------------------------------------------------------------------------------------------------------

</TABLE>
<TABLE>

--------------------------------------------------------------------------------
<S>                                                                <C>
MISCELLANEOUS REPORTING

Additional Balance Contributed Amount                                      0.00
Additional Balance                                                 9,451,188.82
Cumulative Loss Percent                                                0.00000%
Managed Amortization Period                                                 YES
Overcollateralization Amount                                       2,824,941.18
Six Month Rolling Delinquency                                        0.6506898%
Specified Overcollateralization Amount                             3,963,051.02
3 Largest Loan Balance                                             5,113,098.03
Draw Amount                                                        9,451,188.82
Rapid Amortization Event                                                     NO
Excess Cashflow                                                      536,452.10
--------------------------------------------------------------------------------

</TABLE>

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