Document:

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[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                    EXHIBIT 10.7

                       DEVELOPMENT COLLABORATION AGREEMENT

         This Development Collaboration Agreement ("AGREEMENT") is made and
effective as of June 10, 2003 (the "EFFECTIVE DATE"), by and between BioSeek,
Inc., a California corporation, having a place of business at 863-C Mitten Road,
Burlingame, California 94010 ("BIOSEEK") and Dynavax Technologies Corporation, a
Delaware corporation, having a place of business at 717 Potter Street, Suite
100, Berkeley, California 94710 ("DYNAVAX").

                                   BACKGROUND

         A.       BioSeek has developed certain technology known as BioMAP
Technology (as defined below) that is used to perform, among other things,
biofunctional characterization of genes and potential therapeutic compounds, as
further described in this Agreement;

         B.       Dynavax is engaged in research and development of certain
proprietary compounds for potential human therapeutic use, as further described
in this Agreement;

         C.       Dynavax and BioSeek desire that BioSeek apply the BioMAP
Technology to analyze and characterize the activity of certain compounds with
the objective of advancing the development of such compounds, and the parties
desire to enter into this Agreement to enable them to engage in such activities.

         Now, therefore, in consideration of the mutual covenants and conditions
contained herein, and intending to be legally bound, the parties agree as
follows:

         1. DEFINITIONS.

                  (a) "AFFILIATE" means, with respect to a particular party,
another person that controls, is controlled by or is under common control with
such party. For the purposes of the definition in this Section 1(a), the word
"control" (including, with correlative meaning, the terms "controlled by" or
"under the common control with") means the actual power, either directly or
indirectly through one or more intermediaries, to direct or cause the direction
of the management and policies of such entity, whether by the ownership of at
least fifty percent (50%) of the voting stock of such entity, or by contract or
otherwise.

                  (b) "BioMAP TECHNOLOGY" means BioSeek's proprietary human
cell-based model systems technology as more fully described in Exhibit 1(b).

                  (c) "CONFIDENTIAL INFORMATION" means, in the case of Dynavax,
information disclosed by Dynavax to BioSeek concerning the identity of the
Provided TZP Compounds, their development status, results of preclinical assays
and requirements for their handling and safety ("DYNAVAX CONFIDENTIAL
INFORMATION"), and in the case of BioSeek, information disclosed to Dynavax
concerning the BioMAP Technology or otherwise related to BioSeek's performance
of the Program ("BioSEEK CONFIDENTIAL INFORMATION"), that, in either case, if
disclosed in tangible form is marked "Confidential" or with other similar
designation to indicate its confidential or proprietary nature, or if disclosed
orally is indicated orally to be confidential or proprietary by the disclosing
party at the time of disclosure and is confirmed in writing as confidential or
proprietary by the disclosing party within a reasonable time after such
disclosure.

                  (d) "DERIVATIVE" means any compound that is derived from
another compound. As used in this Section 1(d), a compound shall be considered a
"Derivative" of a precursor compound if it either:

                           (1) is actually synthesized in a chemical synthesis
                               program based on the precursor compound; or

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                           (2) is actually synthesized based on
                               structure-activity data relating to the precursor
                               compound; or

                           (3) was made in the course of further advancing one
                               or more precursor compounds toward
                               commercialization; or

                           (4) is included within the scope of any claim of a
                               patent application or patent which also claims
                               one or more precursor compounds and/or compounds
                               described in (1) through (3) above.

                  (e) "DYNAVAX PARTNER" means a third party with whom Dynavax
has entered into a Partnering Agreement.

                  (f) "FDA" means the United States Food and Drug
Administration.

                  (g) "IND" means an Investigational New Drug application, as
defined in the U.S. Food, Drug and Cosmetic Act and the regulations promulgated
thereunder, for initiating clinical trials in the United States.

                  (h) "NET SALES" means the total amount invoiced to
non-Affiliate third parties on sales of TZP Products by Dynavax, Dynavax's
Partners, and the Affiliates and sublicensees of each, less the following
reasonable and customary deductions allowed to the buyer against the invoiced
amount: (i) trade, cash and quantity discounts; (ii) amounts for claims,
allowances or credits for returns; and (iii) prepaid freight, sales taxes,
duties and other governmental charges (including value added tax) on particular
sales, but excluding what is commonly known as income taxes, in each case if
charged separately on the invoice and paid by the customer. For the removal of
doubt, Net Sales shall not include sales to Dynavax, Dynavax's Partners, and the
Affiliates and sublicensees of each for resale; however, sales to such entities
shall be treated as Net Sales at list price. A "sale" shall also include a
transfer or other disposition for consideration other than cash, in which case
such consideration shall be valued at the fair market value thereof.

                  (i) "NOVEL MARKER" means a measurement or profile of a
biological or biochemical analyte that indicates the activity of one or more of
the TZP Compounds in a manner that is relevant to a mechanism of action of such
TZP Compound in a particular disease state, which measurement or profile has not
been, as of the date it is identified by BioSeek, or by Dynavax based on the
Profiling Results, (i) disclosed as a marker for such purpose in the public
domain as a result of prior publication or use, or (ii) identified as a marker
for such purpose by Dynavax without use of any Profiling Results, which Dynavax
shall have the burden of demonstrating with competent evidence.

                  (j) "PARTNERING AGREEMENT" means any agreement, arrangement or
understanding between Dynavax and a third party under which Dynavax grants to
the third party, directly or indirectly, any right or option to market, sell,
distribute or otherwise commercialize a TZP Product in any geographic territory.

                  (k) "PHASE III TRIAL" means that portion of the clinical
studies for the FDA submission and approval process which provides for trials of
a product on sufficient numbers of patients to establish the safety and efficacy
of such product to support regulatory approval in the proposed therapeutic
indication as more fully defined in 21 C.F.R. Section 312.21(c).

                  (l) "PROFILING RESULTS" means the profiling information
regarding the Provided TZP Compounds obtained as a result of BioSeek's
performance of the Program.

                                                                             -2-
<PAGE>

                  (m) "PROGRAM" means the activities conducted or to be
conducted by BioSeek under Section 2 of this Agreement in analyzing the Provided
Compounds using the BioMAP Technology, with the objective of achieving the
Target Milestone.

                  (n) "PROVIDED TZP COMPOUNDS" means those TZP Compounds
specified in Exhibit 1(n) or otherwise provided by Dynavax to BioSeek in
connection with the Program.

                  (o) "TARGET MILESTONE" means the accomplishment by BioSeek of
[***].

                  (p) "THIRD-PARTY FINANCING" means Dynavax's closing of its
first financing after the Effective Date in which Dynavax receives cash through
the sale of its debt or equity securities, other than (i) the sale of its equity
or debt securities to a corporate partner in connection with and as part of a
product licensing transaction for other than a TZP Product, to the extent the
amount invested is to be applied to support development of such product by
Dynavax, or (ii) the sale of shares through exercise of options granted to
employees or consultants under stock option plans or exercise of warrants
outstanding on the Effective Date.

                  (q) "TZP COMPOUND" means any compound within the scope of one
or more of the following clauses (i) or (ii): (i) any compound within the scope
of any claim, as published 23 November 2000, of PCT publication No. WO 00/69861,
and any Derivative thereof; or (ii) any compound provided by Dynavax pursuant to
this Agreement, and any Derivative thereof.

                  (r) TZP PRODUCT" means a product that incorporates or utilizes
one or more TZP Compounds.

                  (s) "UC AGREEMENT" means that certain Exclusive License
Agreement between The Regents of the University of California and Dynavax, dated
October 2, 1998, as amended September 22, 1999.

         2. THE PROGRAM.

                  (a) Within ten (10) days after the Effective Date, Dynavax
will provide to BioSeek, at no charge to BioSeek, such reasonable quantities of
the TZP Compounds specified in Exhibit 1(n) as BioSeek may require under this
Section 2. BioSeek shall in its discretion perform such research and development
activities as it deems appropriate in its efforts to achieve the Target
Milestone. Dynavax shall also provide BioSeek, within fifteen (15) days after
the Effective Date, information specified in Exhibit 2(a), and Dynavax shall
provide technical advice concerning the handling and preparation of the Provided
Compounds. BioSeek and Dynavax shall each appoint a project leader to coordinate
activities under this Agreement and to act as the primary contact and source of
information on the Provided Compounds and the Program. Either party may change
its designated project leader by written notice to the other party.

                  (b) Dynavax will provide BioSeek with a Material Safety Data
Sheet for the Provided TZP Compounds and any additional available information
concerning the safety, handling, use, disposal and environmental effects of the
Provided TZP Compounds as may be necessary to conduct the Program. BioSeek shall
use the Provided TZP Compounds solely for the limited and express purpose of
conducting the Program. Without limiting the foregoing, the Provided TZP
Compounds will not be used in humans. Upon

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                             -3-
<PAGE>

completion or termination of the Program, at Dynavax's request, BioSeek shall
return any unused portions of the Provided TZP Compound.

         3. MILESTONE PAYMENT.

            As compensation for performance of the Program, Dynavax shall [***]
within 30 days after receiving notice from BioSeek of its achievement of the
Target Milestone (the "MILESTONE PAYMENT"), subject to the following:

If the Target Milestone is first achieved at a time at which Dynavax has neither
(i) entered into a Partnering Agreement with a third party for a TZP Product,
nor (ii) filed an IND for a TZP Product, nor (iii) closed a Third Party
Financing, then Dynavax's obligation to pay the Milestone Payment shall be
considered deferred until 30 days following the first to occur of (i), (ii) or
(iii).

         4. PARTNER INCOME AND OTHER PAYMENTS.

            If BioSeek achieves the Target Milestone, then as further
compensation for the performance of the Program Dynavax shall pay to BioSeek the
following:

                  (a) If the first Partnering Agreement is entered into before
the filing of an IND(s) for a TZP Product, Dynavax shall pay BioSeek:

                           (i)      [***], up to a maximum aggregate payment of
                                    [***]; and

                           (ii)     A royalty of [***].

                  (b) If the first Partnering Agreement is entered into after
the filing of an IND(s) and before the initiation of Phase III Trial(s) for a
TZP Product, Dynavax shall pay BioSeek:

                           (i)      [***], up to a maximum aggregate payment of
                                    [***]; and

                           (ii)     A royalty of [***].

                  (c) If Dynavax does not enter into a Partnering Agreement
prior to the initiation of Phase III clinical studies of a TZP Compound, then
Dynavax shall pay BioSeek:

                           (i)      [***] upon the initiation of a Phase III
                                    Trial for such TZP Product;

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                             -4-
<PAGE>

                           (ii)     [***] upon the first commercial sale of such
                                    TZP Product; and

                           (iii)    A royalty of [***].

                  (d) For purposes of this Section 4, the "initiation of Phase
III clinical studies" shall mean the enrollment of patients and commencement of
treatment of patients in such studies. Notwithstanding the foregoing provisions
of this Section 4, if Dynavax initially enters into a Partnering Agreement
during the time period specified in Section 4(a) or 4(b), and such Partnering
Agreement does not include the grant of rights in the United States, and Dynavax
subsequently enters into a Partnering Agreement granting rights to the United
States during the time specified in Section 4(b), or initiates Phase III
clinical trials prior to entering into a Partnering Agreement granting rights to
the United States, then at the time such subsequent Partnering Agreement is
entered into, [***].

                  (e) If Dynavax enters into any Partnering Agreement that
either party believes is not contemplated or reasonably addressed by the
provisions of this Section 4, the parties shall confer in good faith to
determine whether any adjustment to the provisions of this Agreement is
appropriate to address such Partnering Agreement and achieve the intent of the
parties. If after the date of this Agreement, Dynavax enters into a Partnering
Agreement with a third party for a new research and development program, the
objective of which is to develop products incorporating TZP Compounds for new
therapeutic indications that function by different mechanisms of action than
those identified by BioSeek in accomplishing the Target Milestone ("New Use
Compounds"), Dynavax shall so notify BioSeek in writing. Any payments made to
Dynavax under such a Partnering Agreement that are reasonably allocable to such
new research and development or to commercialization rights to any resulting New
Use Compounds [***].

         5. PAYMENTS AND REPORTS.

                  (a) NET PARTNERING INCOME AND NET REPORTS; PAYMENTS. Dynavax
shall forward to BioSeek a copy of any and all Partnering Agreements within 15
days after execution by the parties. Until such time as the aggregate amounts
specified in Sections 4(a) and 4(b), as applicable, have been paid to BioSeek,
Dynavax shall make quarterly written reports to BioSeek within sixty (60) days
after the end of each calendar quarter, stating in each such report the amounts
of and basis for any payments or other consideration received under each
Partnering Agreement, and including the number, description, and aggregate Net
Sales of each TZP Product sold during the calendar quarter; provided however,
that Dynavax's reporting of Net Sales during such quarter may be extended to
coincide with any longer reporting period included in the terms of the relevant
Partnering Agreement, and provided further that Dynavax shall use best efforts
to obtain such reports during such 60-day period. Simultaneously with the
delivery of each such report, Dynavax shall pay to BioSeek the total Net
Partnering Income and share of Net Sales, if any, due to BioSeek for the period
of such report.

                  (b) PAYMENT METHOD. All amounts payable under this Agreement
shall be made by bank-wire transfer in immediately available funds to an account
designated by BioSeek. All payments hereunder shall be made in U.S. dollars. Any
payments or portions thereof due hereunder which are not paid by the date such
payments are due under this Agreement shall bear interest equal to the lesser
one and one half percent (1 1/2%) per month, or the maximum rate permitted by
law, calculated on the number of days such payment is delinquent. This Section
5(b) shall in no way limit any other remedies available to BioSeek.

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                             -5-
<PAGE>

                  (c) CURRENCY CONVERSION. If any currency conversion is
required in connection with the calculation of any amounts payable under this
Agreement, such conversion shall be made using the standard procedure adopted
and consistently applied by Dynavax in accordance with U.S. generally accepted
accounting practices. In the absence of such a standard Dynavax procedure, such
conversion shall be made using the selling exchange rate for conversion of the
foreign currency into U.S. Dollars, quoted for current transactions reported in
The Wall Street Journal for the last business day of the calendar quarter or
calendar year, as the case may be, to which such payment pertains.

                  (d) RECORDS; INSPECTION. Dynavax, Dynavax's Partners, and the
Affiliates and sublicensees of each shall keep complete, true and accurate books
of account and records for the purpose of determining the amounts payable under
this Agreement. Such books and records shall be kept reasonably accessible for
five (5) years following the end of the calendar quarter to which they pertain.
Dynavax shall make all such records available for inspection during such five
(5)-year period by a representative or agent of BioSeek for the purpose of
verifying amounts payable hereunder (including royalty statements). To the
extent that Dynavax does not have the right to grant BioSeek the right to audit
the books and records of Dynavax's Partners, the Affiliates of Dynavax's
Partners, or the sublicensees of Dynavax or Dynavax's Partners, hereunder,
Dynavax shall use best efforts to obtain for itself such rights and, at the
request of BioSeek, shall exercise such audit rights and provide the results of
such audit for inspection by BioSeek pursuant to this Section 5(d). BioSeek
shall bear the costs and expenses of inspections conducted under this Section
5(d), unless a variation or error producing an underpayment in royalties payable
exceeding five percent (5%) of the amount paid for any period covered by the
inspection is established in the course of any such inspection, whereupon all
reasonable out-of-pocket costs paid to third parties relating to the inspection
and any unpaid amounts that are discovered will be paid by BioSeek, together
with interest on such unpaid amounts at the rate specified in Section 5(b)
above.

         6. CONFIDENTIALITY.

                  (a) CONFIDENTIALITY. BioSeek agrees that it shall maintain in
strict confidence all Dynavax Confidential Information, and Dynavax agrees that
it shall maintain in strict confidence all BioSeek Confidential Information,
using efforts no less diligent than such party uses to maintain the
confidentiality of its own proprietary or confidential information. In addition
to the foregoing, except to the extent expressly permitted by this Agreement,
each party (i) agrees not to disclose, use, or grant the right to use
Confidential Information of the other party to any third party without the prior
written consent of such other party, and (ii) will only disclose, use or grant
the use of such Confidential Information of the other party to those personnel,
collaborators, consultants, or Affiliates of such party who are bound by similar
obligations of confidentiality as those set forth herein and only to the extent
they require access thereto to perform the activities contemplated herein. In
addition to the foregoing, provided Dynavax gives BioSeek reasonable advance
written notice and BioSeek provides its written consent, which shall not be
unreasonably withheld, Dynavax may disclose to parties with whom Dynavax is
considering granting commercial rights to TZP Compounds, the following BioSeek
Confidential Information: cell types and disease-related pathways activated in
the BioMAP Technology to produce Profiling Results, mechanisms of action
disclosed within the Profiling Results (but not the methodology of how the
experiments were run using such experimental conditions, the informatics and
analytical tools used to generate results, and the generation of resulting
data); provided that such collaborators or potential Partners are under similar
obligations of confidentiality as those set forth herein for such Confidential
Information.

                  (b) Notwithstanding anything to the contrary in this
Agreement, Confidential Information shall not include information which the
receiving party can demonstrate by competent written proof: (i) is now, or
hereafter becomes, through no act or failure to act on the part of the receiving
party, generally known or available in the public domain; (ii) is known by the
receiving party at the time of receiving such information, or is hereafter
furnished to the receiving party by a third party, in each case, as a matter of
right and without restriction on disclosure, as evidenced by its records; (iii)
is generated by the receiving party

                                                                             -6-
<PAGE>

independent of any information disclosed by the disclosing party by persons who
have not had access to or knowledge of the Confidential Information of the
disclosing party; or (iv) is the subject of a written permission to disclose
provided by the disclosing party.

                  (c) Notwithstanding any other provision of this Agreement,
disclosure of Confidential Information shall not be precluded to the extent such
disclosure:

                           (i)      is in response to a valid order of a court
or other governmental body of a country or any political subdivision thereof;
provided however, that the receiving party shall give reasonable advance notice
to the disclosing party and shall have made a reasonable effort to obtain a
protective order requiring that the Confidential Information so disclosed be
used only for the purposes for which the order was issued; or

                           (ii)     is otherwise required by law or regulation;
provided that receiving party shall give reasonable advance notice to the other
party so that reasonable efforts can be made to obtain a protective order
requiring that the Confidential Information so disclosed be used only for
purposes required under the law or regulation.

                  (d) Except to the extent otherwise contemplated by this
Agreement, within thirty (30) days after the expiration or termination of this
Agreement for any reason, and in the absence of a further written agreement of
the parties, each party shall destroy or return to the other party, as directed
by such party, any and all materials containing Confidential Information
received from such other party.

         7. OWNERSHIP AND RIGHTS.

                  (a) TZP COMPOUNDS. As between the parties, all right, title
and interest in and to the Provided TZP Compounds and other TZP Compounds within
the scope of patent rights owned or exclusively licensed to Dynavax is, and will
at all times, remain the sole and exclusive property of Dynavax.

                  (b) BIOMAP TECHNOLOGY AND DATA. As between the parties, all
right, title, and interest in and to the BioMAP Technology and the results of
the Program is, and will at all times remain, the sole and exclusive property of
BioSeek, subject to the rights granted under Section 7(c) respecting the
Profiling Results. The parties acknowledge and agree that data included in the
Profiling Results will maintain and reside in BioSeek's database and that
BioSeek may maintain and utilize such data as part of its database provided that
(i) such data are coded in the database so that the identity of the Provided TZP
Compounds and Dynavax are not disclosed, and (ii) BioSeek will not provide such
data to other collaboration partners.

                  (c) PROFILING RESULTS. Upon completion of the Target
Milestone, and subject to the terms and conditions of this Agreement (including
the payment of all amounts due under this Agreement), BioSeek will grant to
Dynavax the right and license to use the Profiling Results solely for the
further research, development and commercialization of TZP Compounds and TZP
Products.

                  (d) NOVEL MARKERS. Notwithstanding anything to the contrary
herein, if Dynavax or a Dynavax Partner desires to use or commercialize a Novel
Marker identified by BioSeek in clinical trials for TZP Compounds or as a
diagnostic test, the right to use such Novel Marker shall not be considered
granted under Section 7(c), but Dynavax and BioSeek shall negotiate in good
faith an agreement providing for the use of such Novel Marker and providing for
additional consideration to BioSeek for the use of such Novel Marker.

                  (e) COOPERATION; RESTRICTION OF RIGHTS. Each party shall
cooperate with the other party, and shall obtain the cooperation of its
employees and agents, to provide, as necessary, rights set forth in this

                                                                             -7-
<PAGE>

Section 7. Nothing in this Agreement is to be construed as granting a right or
license to either party to use Confidential Information of the other party,
except as expressly provided herein.

         8. INDEPENDENT CONTRACTOR. Nothing herein shall be construed to create
any relationship of employer and employee, agent and principal, partnership or
joint venture between the parties. Each party is an independent contractor.
Neither party shall assume, either directly or indirectly, any liability of or
for the other party. Neither party shall have the authority to bind or obligate
the other party and neither party shall represent that it has such authority.

         9. USE OF TZP COMPOUNDS AND TECHNOLOGIES.

                  (a) Each party agrees to comply with all federal and state
government regulations, guidelines, laws, policies, and internal policies that
are applicable to such party's use of the TZP Compounds that are the subject of
this Agreement or the other party's Confidential Information.

                  (b) Each party reserves the right to distribute or disclose
compounds and Confidential Information owned by such party to others and to use
such compounds and Confidential Information owned by such party for its own
purposes.

         10. DILIGENCE.

                  (a) Subject to continued technical feasibility and
availability of internal resources, Dynavax shall diligently endeavor, either on
its own or with a Dynavax Partner, to develop, manufacture, market, sell and
meet commercial demand for TZP Products within a commercially reasonable time
after the achievement of the Target Milestone, and to otherwise perform as
required under Section 8 of the UC Agreement. As BioSeek may request from time
to time after the achievement of the Target Milestone, Dynavax shall keep
BioSeek informed as to Dynavax's progress in meeting its obligations under this
Section 10(a). Without limiting the foregoing, Dynavax shall use commercially
reasonable efforts to perform its obligations under the UC Agreement and to
maintain the UC Agreement in full force and effect.

                  (b) If Dynavax determines for any reason that it will not or
cannot pursue development of TZP Products, Dynavax shall promptly notify BioSeek
of such intention in writing, and in such event, or in the event this Agreement
is terminated pursuant to Section 14(c), without limiting any rights or remedies
otherwise available to BioSeek, the parties shall, at BioSeek's request and at
its option, negotiate in good faith on a non-exclusive basis for the grant to
BioSeek of the right to develop, manufacture, market, sell, distribute and
otherwise commercialize TZP Compounds, on reasonable terms and conditions which
shall take into account the value to TZP Compound development contributed by
both Dynavax and BioSeek.

                  (c) Subject to continued technical feasibility and
availability of internal resources and without limiting any other provisions of
this Agreement, BioSeek shall use commercially reasonable efforts to conduct the
Program in a manner that is consistent with its goals and objectives. As Dynavax
may request from time to time, BioSeek shall keep Dynavax informed as to
Dynavax's progress in performing the work in the Program.

         11. REPRESENTATION AND WARRANTY; DISCLAIMERS.

                  (a) REPRESENTATIONS AND WARRANTIES. Each party represents and
warrants that it has the power to enter into this Agreement and to the best of
its knowledge has the right to grant the rights granted herein to the other
party. In addition, Dynavax represents and warrants that (i) Dynavax has not
previously granted and will not grant any rights in any TZP Compounds
(including, without limitation, any intellectual property rights) that are
inconsistent with the rights and licenses granted to BioSeek herein; (ii)
subject to the UC Agreement, Dynavax is the exclusive owner of the entire right,
title, and interest in and to all TZP

                                                                             -8-
<PAGE>

Compounds (including, without limitation, all intellectual property rights
therein); (iii) Dynavax has the right to provide the Provided TZP Compounds to
BioSeek as set forth in this Agreement; (iv) Dynavax has performed as required
under the UC Agreement; and (v) the UC Agreement has not terminated, expired, or
in any way been limited, in any manner that would affect Dynavax's ability to
diligently develop, obtain market approvals for, and market any TZP Products.
BioSeek represents and warrants that it has the right to apply its BioMAP
Technology for the purposes contemplated under this Agreement.

                  (b) DISCLAIMERS.

         DYNAVAX AND BIOSEEK MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES
WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, EXPRESS OR IMPLIED, AND
EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY OF NON-INFRINGEMENT OF ANY PATENT,
COPYRIGHT, TRADEMARK, OR OTHER PROPRIETARY RIGHT, MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE.

Dynavax acknowledges and agrees that (i) BioSeek shall not be responsible for
any claims arising from use of the Provided TZP Compounds by Dynavax or third
parties in human clinical trials, for commercial sale, or otherwise, (ii)
Dynavax assumes sole responsibility for such use, and (iii) Dynavax indemnifies
and holds harmless BioSeek for any claims or liabilities, including but not
limited to attorneys' fees, arising from such use.

         12. PUBLICATION.

                  (a) Each party acknowledges the other party's interest in
publishing the results of the Program to obtain recognition within the
scientific community and to advance the state of scientific knowledge. Each
party also recognizes the mutual interest in obtaining valid patent protection
and in protecting business interests and trade secrets. Consequently, if (i)
BioSeek, its employees, agents or consultants wish to make a publication
regarding the use of the Profiling Results (it is understood that BioSeek will
not disclose Dynavax Confidential Information or the identity of the Provided
TZP Compounds or of Dynavax without Dynavax's prior written consent), or (ii)
Dynavax, its employees, agents or consultants wish to make a publication
regarding the use of the BioMAP Technology in connection with the TZP Compounds
(it is understood that Dynavax will not disclose any BioSeek Confidential
Information without BioSeek's prior written consent), in each case, such party
shall deliver to the other party a copy of the proposed written publication or
an outline of an oral disclosure at least thirty (30) days prior to submission
for publication or presentation. The reviewing party shall have the right (a) to
propose in good faith modifications to the publication for patent reasons, trade
secret reasons, or business reasons or (b) to request a reasonable delay in
publication or presentation to protect know-how and patentable subject matter.

                  (b) If the reviewing party requests a delay, the publishing
party shall delay submission or presentation for up to ninety (90) days to
enable patent applications to be filed. Upon expiration of such time period, the
publishing party shall be free to proceed with the publication or presentation.
If the reviewing party requests modifications to the publication, the publishing
party shall edit such publication to prevent disclosure of trade secrets or
proprietary business information (including Confidential Information) prior to
submission of the publication or presentation.

                  (c) Once a particular disclosure has been approved, either
party may disclose the information contained therein in subsequent disclosures,
including without limitation, promotions, press releases, public relations,
advertisements, or sales and marketing materials, without the need for further
approval by the other party, but may not use the other party's name or logo in
connection with such information except as expressly provided in Section 13.

         13. PRESS RELEASES; PUBLICITY.

                                                                             -9-
<PAGE>

                  (a) The parties agree that BioSeek and/or Dynavax may issue a
press release announcing the collaboration under this Agreement, which release
shall be subject to the reasonable approval of both parties. Dynavax also
acknowledges BioSeek's interest in disclosing certain limited information
concerning its research collaborations in order to promote and develop the
BioMAP Technology. Accordingly, Dynavax agrees that BioSeek may reference
Dynavax's name in conjunction with the promotion of its technologies, and refer
to Dynavax as a research collaboration partner in BioSeek's promotions and other
communications with prospective customers or investors, solely where such
reference to Dynavax's name would not associate Dynavax with any particular
compound or product.

                  (b) BioSeek may disclose in summary form data from the Program
in a manner that does not reveal directly or indirectly the specific identity of
any Provided TZP Compound or the identity of Dynavax. In addition to the
foregoing, within thirty (30) days after disclosure of the Profiling Results to
Dynavax, the parties shall in good faith discuss and mutually agree upon the
particular data and information within such Profiling Results that BioSeek shall
have the right to directly reference in conjunction with Dynavax's name or logo;
it being understood that objections by a party shall be based upon their
reasonable concerns regarding disclosure of (a) information that would provide a
competitive advantage to any third party's competitors, (b) information that
would adversely reflect on the goodwill of a party and or its business, (c)
information that constitutes a trade secret or a patentable invention, (d)
information that would constitute a violation of an agreement with a third party
in existence as of the Effective Date, or (e) Confidential Information owned by
the objecting party, and not otherwise permitted to be disclosed under this
Agreement.

         14. TERM; TERMINATION.

                  (a) The term of this Agreement begins on the Effective Date
and will continue in effect until this Agreement is terminated as provided in
this Section 14.

                  (b) BioSeek may terminate this Agreement, in its entirety or
solely with respect to the Program or particular portions of the Program, at any
time before BioSeek achieves the Target Milestone, upon not less than thirty
(30) days' written notice to Dynavax, due solely to BioSeek's determination,
which shall be made in good faith, that it is not technically feasible to
complete the Program (or such portion of the Program) on a commercially
reasonable basis. Dynavax may terminate this Agreement upon ninety (90) days'
written notice to BioSeek if BioSeek has not achieved the Target Milestone
within nine (9) months after the Effective Date, provided that such termination
shall not be effective if BioSeek achieves the Target Milestone during such
90-day notice period. Except as provided in this Section 14(b) or Section 14(c),
neither party shall have the right to terminate the Agreement unless the parties
mutually agree to do so in writing.

                  (c) Without limiting any other rights or remedies under this
Agreement, if within four years after the Effective Date, Dynavax has not (i)
entered into a Partnering Agreement respecting any TZP Compound or (ii)
initiated any clinical studies of any TZP Compound, then either BioSeek or
Dynavax may terminate this Agreement upon written notice to the other party.
Upon such termination, any rights of Dynavax to use any information or results
provided hereunder shall terminate, and BioSeek's right of negotiation under
Section 10(b) shall be triggered and shall continue in effect after such
termination.

                  (d) Termination of this Agreement for any reason shall not
release either party to this Agreement from any liability that, at the time of
the termination, has already accrued to the other party. In addition, the
provisions of Sections 1, 3, 4, 5, 6, 7(a), 7(b), 7(e), 10(b), 11(b), 12, 13, 14
and 15 shall survive any termination of this Agreement. Any rights and licenses
granted under Section 7(c) shall terminate upon any termination of this
Agreement.

         15. MISCELLANEOUS.

                                                                            -10-
<PAGE>

                  (a) GOVERNING LAW. This Agreement shall be construed and
enforced in accordance with the law of the State of California without regard to
principles of conflicts of law.

                  (b) GENERAL. This Agreement constitutes the entire
understanding and agreement of the parties respecting the subject matter hereof
and supersedes any and all prior agreements or arrangements, written or oral,
between the parties relating thereto. This Agreement may not be amended or
supplemented in any way except by a written document signed by the party against
whom such amendment or supplement is sought to be enforced. The failure on the
part of either party to enforce, or any delay in enforcing, any right, power or
remedy that such party may have under this Agreement shall not constitute a
waiver of any such right, power or remedy, or release the other party from any
obligations under this Agreement, except by a written document signed by the
party against whom such waiver or release is sought to be enforced.

                  (c) ASSIGNMENT. Neither party shall assign its rights or
obligations under this Agreement, in whole or in part, by operation of law or
otherwise, without the prior express written consent of the other party;
provided, however, that either party may, without such consent, assign this
Agreement and its rights and obligations hereunder to an Affiliate or in
connection with (i) the transfer or sale of all or substantially all of its
business to which this Agreement pertains, or (ii) a merger, consolidation,
change in control or similar transaction. Any permitted assignee shall assume
all obligations of its assignor under this Agreement. Any purported assignment
or transfer in violation of this Section 15(c) shall be void.

                  (d) NOTICES. All notices required or permitted to be given
under this Agreement will be in writing, and may be given by (i) personal
delivery, (ii) registered first-class United States mail, postage prepaid by the
sender, return receipt requested, (iii) overnight delivery service, charges
prepaid by the sender, or (iv) via facsimile, and, in each case, addressed to
the other party at the address for such party as set forth below, and will be
effective upon receipt in the case of (i), (iii) or (iv) above, and five days
after mailing in the case of (ii) above.

         If to BioSeek:             BioSeek, Inc.
                                    863-C Mitten Rd.
                                    Burlingame, CA 94010
                                    Fax #: 650.552.0725
                                    Attention: Chief Executive Officer

         If to Dynavax:             Dynavax Technologies Corporation
                                    717 Potter Street
                                    Suite 100
                                    Berkeley, CA 94710-2722
                                    Fax #510.450.7740
                                    Attention: Chief Executive Officer

                  (e) SEVERABILITY. In the event that any term of this Agreement
is held to be invalid, illegal, or unenforceable, such invalidity, illegality,
or unenforceability shall not affect any other portion of this Agreement, and
there shall be deemed substituted for such invalid, illegal or unenforceable
term an alternative term as will most fully realize the intent of the parties as
expressed in this Agreement to the fullest extent permitted by applicable law.
The parties hereby declare their intent that this Agreement is to be construed
in such fashion as to maintain its existence, validity and enforceability to the
greatest extent possible.

                  (f) INJUNCTIVE RELIEF. Each of BioSeek and Dynavax
acknowledges that the limitations and restrictions on its possession and use of
the Confidential Information of the other party are necessary and reasonable to
protect the other party, and each party acknowledges that monetary damages could
be inadequate to compensate the other party for any violation by such party of
any such limitations or

                                                                            -11-
<PAGE>

restrictions, and that any such violation could cause irreparable injury to the
other party. BioSeek and Dynavax agree that, in addition to any other remedies
that may be available in law, in equity or otherwise, each party shall be
entitled to seek temporary and permanent injunctive relief against any
threatened violation of such limitations or restrictions or the continuation of
any such violation in any court of competent jurisdiction, without the necessity
of proving actual damages.

         In witness whereof, the parties have by duly authorized persons,
executed this Agreement, as of the date first above written.

         BIOSEEK                                    DYNAVAX

         By:      /s/ Peter D. Staple               By:      /s/ Dino Dina
            --------------------------------           -------------------------

         Title: Chief Executive Officer             Title:______________________

                                                                            -12-
<PAGE>

                                  EXHIBIT 1(b)

                          BioMAP TECHNOLOGY DESCRIPTION

         BioMAP Technology includes; (i) the compositions (cell types, gene
products, proteins, carbohydrates, lipids, compounds) of assays for the testing
and analysis of compounds, genes, or biological samples ("BioMAP(TM) ASSAYS");
(ii) methods of measurement, instrumentation, techniques, materials, and
concepts related to the above; (iii) drug/compound effects related to the above;
(iv) drug/compound development to specific targets; (v) SDI(TM) animal model
design, testing and compound efficacy in such models; (vi) composition,
architecture and development of data, software and informatics tools regarding
the analysis of BioMap(TM) and SDI(TM) data; (vii) methods and uses of
combinatorial biology/BioMAP(TM) systems; and (viii) any improvements made of
any of the foregoing.

                                                                            -13-
<PAGE>

                                  EXHIBIT 1(n)

             TZP COMPOUNDS TO BE PROVIDED TO BIOSEEK FOR THE PROGRAM

As of the Effective Date, Dynavax shall provide the following TZP Compounds to
BioSeek for use in the Program:

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                            -14-
<PAGE>

                                  EXHIBIT 2(a)

                INFORMATION TO BE PROVIDED BY DYNAVAX TO BIOSEEK

1.  Structures of the Provided TZP Compounds

2.  Data corresponding to metabolism and stability tests performed on the
    Provided TZP Compounds

3.  Data on biochemical assays performed on the Provided TZP Compounds

4.  Summary of data corresponding to previous tests on candidate targets of the
    Provided TZP Compounds including:

        a.  RNA

        b.  Cytokines

        c.  In vitro cellular assays

        d.  Responses in animal models

                                                                            -15-<PAGE>
[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                                                    EXHIBIT 10.8

                          LICENSE AND SUPPLY AGREEMENT

         This License and Supply Agreement (this "Agreement") is entered into as
of the last signature hereunder (the "Effective Date") by and between Berna
Biotech AG, a Swiss corporation having its principal place of business at
Rehhagstrasse 79, CH-3018 Berne, Switzerland ("Berna"), and Dynavax Technologies
Corporation, a USA corporation having its offices at 717 Potter Street,
Berkeley, California 94710, USA ("Dynavax"). Berna and Dynavax may be referred
to in the Agreement individually as a "Party", and collectively as the
"Parties".

                                    RECITALS

         A.       Berna is the inventor of, and possesses certain information,
technology, patents and other intellectual property rights regarding its
proprietary yeast expression system based on the methyltrophic yeast Hansenula
polymorpha (Hansenula Expression System) which are protected as intellectual
property rights owned by Berna's affiliate Rhein Biotech N.V., Maastricht, The
Netherlands. Based on its proprietary Hansenula Expression System, Berna's
affiliates Rhein Biotech GmbH, Dusseldorf, Germany and Green Cross Vaccine
Corporation, Yongin City, Korea ("GCVC") have developed processes for the
production of adr-HBsAg, a component of vaccines for hepatitis B.

         B.       Dynavax is developing a prophylactic hepatitis B vaccine
comprising an ISS-1018 oligonucleotide and HBsAg. Dynavax desires to license
from Berna adr-HBsAg for use in such vaccine.

         C.       Dynavax is also developing a therapeutic hepatitis B vaccine
comprising an ISS oligonucleotide and HBsAg. Dynavax desires to license from
Berna adr-HBsAg for use in such vaccine.

         D.       Berna is willing to provide Dynavax access to adr-HBsAg,
including the supply thereof by GCVC, and to grant Dynavax a license under such
intellectual property rights of Rhein Biotech N.V., in accordance with the terms
and conditions set forth in this Agreement.

                                    AGREEMENT

For good and valuable consideration, including the covenants and obligations
expressed herein, receipt of which is hereby acknowledged, intending to be
legally bound, the parties hereto agree as follows:

1. DEFINITIONS.

         1.1      "adr-HBsAg" shall mean the hepatitis B surface antigen of the
subtype adr produced with the Hansenula polymorpha Expression System.

         1.2      "adr-HBsAg Technology" shall mean (a) the technology with
which adr-HBsAg in bulk can be produced and with which quality analysis is being
performed, and (b) all patents, know-how and other intellectual property owned
or controlled by Berna that claims or covers adr-HBsAg or its manufacture or
use, including but not limited to the patents listed in Appendix C.

<PAGE>

         1.3      "Affiliate" shall mean any business entity that controls, is
controlled by, or is under common control with another corporation or business
entity. As used in this definition, the direct or indirect ownership of at least
fifty percent (50%) or, if smaller, the maximum allowed by applicable law, of
the voting securities or an interest in the assets, profits or earnings of a
business entity shall be deemed to constitute "control" of the business entity.
Rhein Biotech N.V., Rhein Biotech GmbH and GCVC are Affiliates of Berna in the
sense of this definition.

         1.4      "Berna" shall mean Berna and/or its affiliates mentioned
above, as is appropriate in view of the rights and obligations under this
Agreement.

         1.5      "cGMP" shall mean current good manufacturing practices as
defined by relevant Pharmaceutical Law and Pharmaceutical, Control Authority and
Regulatory guidance in the country of Manufacturing.

         1.6      "Confidential Information" shall have the meaning assigned
thereto in Section 14.1.

         1.7      "Disease Field" shall mean the field of inducing an active,
long term prophylactic response or therapeutic immune response against Hepatitis
B (including chronic status) in humans.

         1.8      "Dynavax" shall mean Dynavax as defined above as well as its
affiliates, as is appropriate in view of the rights and obligations under this
Agreement.

         1.9      "Fill and Finish Manufacturer" shall have the meaning assigned
thereto in Section 2.3(c).

         1.10     "Government Approval" shall mean any approvals, licenses,
registrations or authorisations of any Regulatory Authorities, necessary for the
use, development, testing, production, marketing, sale or distribution of the
Vaccines in a regulatory jurisdiction.

         1.11     "ISS" shall mean ISS 1018 (5'-TGACT GTGAA CGTTC GAGAT GA-3')
or ISS 295 (5'-TCGTCGA-HEG-ACGTTCG-HEG-AGATGAT-3').

         1.12     "Manufacturing and Supply" shall mean the commercial
manufacture, processing, packing, holding, all required labelling, testing,
storage, release and supply to Dynavax or its designee of adr-HBsAg in
accordance with the terms and conditions set forth in this Agreement.

         1.13     "Net Sales" shall mean the gross amount invoiced by Dynavax or
Sublicensee (if applicable) for the sale or other disposition to an unaffiliated
third party of Vaccines, less the following deductions for amounts actually
incurred or allowed related to the sale or other disposition:

                           (a) trade, cash and quantity discounts (including
                  volume discounts), credits and rebates, and credits, rebates
                  and allowances and adjustments for rejections, recalls or
                  returns (not in excess of the selling price of the Vaccine);
                  and

                           (b) freight, insurance, sales, use, excise,
                  value-added and similar taxes or duties imposed on the sale
                  and included in the gross amount invoiced; and

                                       2
<PAGE>

                           (c) reasonable and customary rebates actually granted
                  to managed health care organizations, federal, state, or local
                  governments (or their agencies), and managed health
                  organizations (including Medicaid rebates); and

                           (d) amounts debited on account of specific bad debts
                  with respect to Net Sales previously invoiced, determined in
                  accordance with the selling Party's normal accounting
                  procedures consistently applied within and across its
                  pharmaceutical or biopharmaceutical operating unit.

         1.14     "Prophylactic Vaccine" shall mean a prophylactic Hepatitis B
vaccine developed by Dynavax or its sublicensee and comprised of an ISS and
adr-HBsAg, and that potentially utilises additional delivery or adjuvant
technology, in pharmaceutical dosage forms suitable for human use.

         1.15     "Proposed Publication" shall have the meaning assigned thereto
in Section 8.1.

         1.16     "Regulatory Authorities" shall mean those government agencies
or authorities responsible for the regulation of Vaccines and/or adr-HBsAg
(including without limitation the manufacture, supply and sale thereof) in the
Territories.

         1.17     "Specifications" shall mean those specifications set forth in
Appendix A

         1.18     "Sublicensee" shall mean any permitted sublicensee of the
license granted to Dynavax under this Agreement as further described in Section
2.3.

         1.19     "Territory A" shall mean Europe and North America.

         1.20     "Territory B" shall mean all countries of the world except
Japan and those named in the definition of Territory A.

         1.21     "Territories" shall mean Territory A and Territory B.

         1.22     "Therapeutic Vaccine" shall mean a therapeutic hepatitis B
vaccine developed by Dynavax or its sublicensee and comprised of an ISS and
adr-HBsAg, and that potentially utilises additional delivery or adjuvant
technology, in pharmaceutical dosage forms suitable for human use.

         1.23     "Vaccines" shall mean Prophylactic Vaccine and Therapeutic
Vaccine.

2. LICENSE GRANT.

         2.1      Subject to the terms and conditions of this Agreement, Berna
hereby grants to Dynavax for the term of this Agreement, unless earlier
terminated in accordance with Section 15, a non-exclusive license under the
adr-HBsAg Technology, with the right to sublicense solely in accordance with
Sections 2.3, to research, develop, manufacture, have manufactured, market,
distribute, import, use, offer for sale and sell Vaccines in the Territories for
use solely in the Disease Field. Such license grant does not permit the transfer
by Dynavax to any third party of adr-HBsAg other than as part of assembled
Vaccines (including, without limitation, transfer of Vaccines to third parties
for preclinical testing, toxicology, or clinical trials) or in accordance with
Section 2.3, without the prior written approval of Berna, such approval not to
be unreasonably withheld.

         2.2      The license granted in Section 2.1 is specific to the Disease
Field. For the purpose of clarification, Dynavax shall have no right to include
the adr-HBsAg in any other

                                       3
<PAGE>

product intended for therapeutic or prophylactic use in any field outside of the
Disease Field, whether such other product is formulated as part of the Vaccines
or sold in bundled package together with the Vaccines, unless a separate license
for such other product and other disease field is expressly granted in writing
by Berna to Dynavax.

         2.3      Berna hereby grants to Dynavax for the term of this Agreement,
unless earlier terminated in accordance with Section 15, the right to sublicense
the right to research, develop, manufacture, have manufactured, market,
distribute, import, use, offer for sale and sell Vaccines in the Territories
under the adr-HBsAg Technology in the Disease Field as follows:

                           (a) Prior to the grant of a sublicense, Dynavax shall
                  notify Berna in writing of the identity of the intended
                  Sublicensee, and Berna shall have thirty (30) days to consent
                  to the Sublicensee, such consent not to be unreasonably
                  withheld. If Berna does not notify Dynavax in writing within
                  such thirty (30) day period that Berna does not consent to
                  such Sublicensee, Berna shall be deemed to have consented. All
                  sublicense agreements shall be consistent with the terms of
                  this Agreement and shall expressly bind the Sublicensee to the
                  applicable terms of this Agreement and shall provide for the
                  automatic assignment of the sublicense agreement to Berna if
                  this Agreement is terminated by Berna. Dynavax shall promptly
                  furnish Berna with a fully executed copy of any sublicense
                  agreement.

                           (b) For the avoidance of doubt, either Dynavax or its
                  Sublicensee may develop, manufacture, have manufactured, use,
                  market, distribute, import, use, offer for sale and sell
                  Vaccines in any part of the Territories.

                           (c) For purposes of clarity, `manufacture' and `have
                  manufactured' includes the combining of the adr-HBsAg and the
                  ISS to create the Vaccines, but does not include the
                  manufacture of adr-HBsAg itself. For further clarity, the use
                  of a third party (the "Fill and Finish Manufacturer") for the
                  combining of the adr-HBsAg and the ISS and related formulation
                  work to create the Vaccines, and related fill and finish work
                  (including labelling and packaging), which will then be given
                  to Dynavax or its Sublicensee for sale or other distribution,
                  shall not be considered a sublicensing per se.

3. SUPPLY OF ADR-HBsAg.

         3.1      SUPPLY COMMITMENT. Berna agrees to provide Dynavax on a
non-exclusive basis, under the terms and condictions of this Article 3
(including supply prices) with the quantities of adr-HBsAg meeting the
Specifications as required by Dynavax for use in making Vaccines for sale by
Dynavax and/or its Sublicensees, whether as Prophylactic Vaccine and/or
Therapeutic Vaccine.

         3.2      SUPPLY PRICE

                  3.2.1    PROPHYLACTIC VACCINE. Berna will provide to Dynavax
adr-HBsAg meeting Specifications on a bulk basis for incorporation into
Prophylactic Vaccine, at the following prices:

                           (a) For pre-clinical and clinical development, [***].
                  For all subsequent orders for pre-clinical

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       4
<PAGE>

                  and clinical development purposes the price will be [***].

                           (b) For commercialisation in Territory A, [***].

                           (c) For commercialisation in Territory B, [***].

                  3.2.2    THERAPEUTIC VACCINE. Berna will provide to Dynavax
adr-HBsAg meeting Specifications on a bulk basis for incorporation into
Therapeutic Vaccine, at the following prices:

                           (a) For pre-clinical and clinical development, [***].

                           (b) For commercialisation in all Territories, [***].

                  3.2.3    If Berna's manufacturing costs increase due to
Dynavax's requirements for new or modified Specifications or formulations of
adr-HBsAg, the Parties shall negotiate in good faith a new pricing system. Berna
shall not be obligated to manufacture in accordance with any such new or
modified Specifications or formulations until the Parties have agreed to a
price.

         3.3      In all cases, sales to Dynavax will be EXW (ex works;Incoterms
2000). To control the shipment conditions, Berna will pack the quantities of
adr-HBsAg suitable for delivery to the destination selected by Dynavax.
Notwithstanding above mentioned EXW, Berna will arrange the shipping. All costs
for freight and insurance will be charged to Dynavax separately with the invoice
for each delivery. Thus the shipping terms on the invoice will show CIP `airport
of destination'.

         3.4      TITLE TO ADR-HBsAg. Berna shall retain all title and interest
in and to any and all adr-HBsAg manufactured by Berna hereunder until such
adr-HBsAg is supplied by Berna to Dynavax and paid for by Dynavax as provided in
Section 3.2. Transfer of ownership shall not in any way relieve Dynavax of the
covenants under Section 2.2, which shall continue to apply to all adr-HBsAg
purchased by Dynavax from Berna.

         3.5      FORECASTS. Within [***] after the Effective Date and [***],
Dynavax shall provide Berna with a rolling forecast for the amount of adr-HBsAg
required for the [***] period that commences [***] following the date of the
forecast. The amounts for the [***] shall be by [***]. The amounts for the
following [***] months shall be by [***]. The amounts forecasted for the [***]
of the forecast (the "Ordered Amount") shall be automatically [***] firm and
binding; [***] of the amounts forecasted for the following [***] of the forecast
shall be automatically firm and binding; and the amounts forecasted for the
[***] shall be non-binding.

                           (a) Berna shall fill each Ordered Amount within [***]
                  from receipt of such order from Dynavax; provided, however, in
                  the event a given order exceeds the requirements estimated in
                  Dynavax's latest [***] rolling forecast for the [***] in
                  question, Berna shall have up to [***] from receipt of such
                  order to fill such excess requirements.

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       5

<PAGE>

                           (b) Notwithstanding any other provision of this
                  Agreement, unless otherwise agreed to in writing by Berna,
                  Berna shall not be obligated to supply to Dynavax in a given
                  [***] more adr-HBsAg than [***] above the amount estimated in
                  Dynavax's latest [***] rolling forecast for the [***] in
                  question, even if such quantity falls within production
                  capacities, but Berna shall use commercially reasonable
                  efforts to supply any such excess amounts.

         3.6      CONFORMANCE TO SPECIFICATIONS. The adr-HBsAg supplied by Berna
or its manufacturing designee hereunder shall conform at the time of delivery to
Dynavax to the applicable Specifications. Dynavax may test any adr-HBsAg
delivered hereunder to determine conformance of such adr-HBsAg with the
applicable Specifications. If Dynavax determines that such adr-HBsAg does not
meet such Specifications, Dynavax, shall within [***] of receipt of the
nonconforming adr-HBsAg, notify Berna in writing of such nonconformance,
including test results supporting Dynavax's determination. Berna shall, at no
charge to Dynavax, replace nonconforming adr-HBsAg with adr-HBsAg that meet such
Specifications. If Berna disagrees with the alleged nonconformity of the
adr-HBsAg with the specifications, an independent laboratory, mutually agreed
upon in writing by the Parties, shall analyse samples of the alleged
nonconforming adr-HBsAg to determine compliance with the Specifications. Dynavax
and Berna shall be bound by the laboratory analysis of such adr-HBsAg. The cost
incurred in connection with retaining the independent laboratory shall be borne
by Dynavax if the adr-HBsAg in question is found to conform to the
Specifications and by Berna if it is found to not conform to the Specifications.

         3.7      PERMITTED USES. Dynavax shall use the adr-HBsAg supplied by
Berna hereunder only for purposes of research, development (including
pre-clinical testing and toxicology), manufacturing, marketing, distribution and
sale of Vaccines. Dynavax shall use the adr-HBsAg in compliance with this
Agreement and with all applicable federal, state and local laws and regulations.
Dynavax shall not transfer the adr-HBsAg or any related information to any
person who is not under the immediate and direct supervision of Dynavax, except
as may otherwise expressly be provided in this Agreement.

         3.8      ACCESS TO FACILITIES. At Dynavax cost, Berna shall permit
Dynavax and the Regulatory Authorities and their respective agents and
representatives reasonable access to the facilities where the Manufacturing and
Supply is being carried out at times mutually agreed to by Berna and Dynavax.

         3.9      SHIPPING. Delivery shall be to Dynavax, C.I.P, named place of
destination (Incoterms 2000), this place being outside the geographical region
of Europe, with costs of insurance and freight invoiced to Dynavax, or its
Sublicensee, as mentioned in Section 3.3. Risk for adr-HBsAg shall pass to
Dynavax after delivery. Title shall pass to Dynavax after full payment of the
invoiced price only.

         3.10     MAINTENANCE OF RECORDS. Berna shall keep or cause to be kept
complete, accurate and current records relating to all of its Manufacturing and
Supply activities in accordance with all applicable laws, cGMP and the
requirements of the Regulatory Authorities in the European Union.

         3.11     ACCESS TO RECORDS. Berna shall provide Dynavax, at Dynavax's
cost, with copies of all documentation under Berna's control relating to its
Manufacturing and Supply of adr-HBsAg to the extent such documentation is
required by any Regulatory Authority to be included in any Vaccines regulatory
approval submission to such Regulatory Authority and to the extent this is
economically reasonable. Berna hereby grants Dynavax and its Sublicensees

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       6
<PAGE>

the right to reference Berna's regulatory approvals, if any, for adr-HBsAg and
the drug master file for each adr-HBsAg on file with any regulatory agency. Upon
Dynavax's request, Berna shall execute letters of authorisation evidencing
Dynavax' and its Sublicensees' reference rights as set forth above. While Berna
grants the above rights to the adr-HBsAg Technology and the use of the related
documention, it is Dynavax's and its Sublicensees' obligation to comply with all
relevant laws and regulations in the Territories.

         3.12     COMPLIANCE WITH GMP STANDARDS. Berna is producing the
adr-HBsAg under local cGMP requirements and is involved in the process of
increasing the cGMP standards towards the level which will be compliant with
European standards. Berna agrees to use reasonable commercial efforts to provide
adr-HBsAg that complies with European and Canadian standards if so required by
Dynavax.

4. PAYMENTS AND REPORTS

         4.1      LICENSE FEE. As partial consideration for the rights and
licenses granted hereunder, Dynavax shall pay Berna a non-refundable,
non-creditable license fee of [***] within ten (10) days of the Effective Date
of this Agreement.

         4.2      PROPHYLACTIC VACCINE

                  4.2.1    MILESTONES. As partial consideration for the rights
and licenses granted hereunder, Dynavax shall pay Berna the following
non-refundable, non-creditable milestone payments:

                           (a) [***] within thirty (30) days of submission of
                  the first application for licensure of Prophylactic Vaccine
                  anywhere in the Territories.

                  Such payment shall only be due if payment for the
                  corresponding milestone for the Therapeutic Vaccine has not
                  been made (Section 4.3.1(a)(i)).

                           (b) [***] within thirty (30) days following the first
                  licensure of Prophylactic Vaccine anywhere in the Territories.

                  Such payment shall only be due if payment for the
                  corresponding milestone for the Therapeutic Vaccine has not
                  been made (Section 4.3.1 (a)(ii)).

                  4.2.2    ROYALTY. As partial consideration for the rights and
licenses granted hereunder, Dynavax shall pay Berna a [***] royalty on annual
Net Sales made by Dynavax or its Sublicensee of Prophylactic Vaccine, commencing
with the first commercial sale of Prophylactic Vaccine by Dynavax or its
Sublicensee anywhere in the Territories.

         4.3      THERAPEUTIC VACCINE

                  4.3.1    IN CASE OF COMPLETION OF DEVELOPMENT AND
COMMERCIALISATION BY DYNAVAX, Dynavax shall pay Berna the following:

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       7
<PAGE>

                           (a) MILESTONES. As partial consideration for the
                  rights and licenses granted hereunder, Dynavax shall pay Berna
                  the following non-refundable, non-creditable milestone
                  payments based on achievement of the milestone events by
                  Dynavax:

                                    (i)      [***] within thirty (30) days of
                                    submission of the first application for
                                    licensure of Therapeutic Vaccine anywhere in
                                    the Territories.

                                    Such payment shall only be due if payment
                                    for the corresponding milestone for
                                    Prophylactic Vaccine has not been made
                                    (Section 4.2.1(a)).

                                    (ii)     [***] within thirty (30) days
                                    following the first licensure of Therapeutic
                                    Vaccine anywhere in the Territories.

                                    Such payment shall only be due if payment
                                    for the corresponding milestone for
                                    Prophylactic Vaccine has not been made
                                    (Section 4.2.1(b)).

                           (b) ROYALTY. As partial consideration for the rights
                  and licenses granted hereunder, Dynavax shall pay Berna a
                  [***] royalty on annual Net Sales made by Dynavax of
                  Therapeutic Vaccine, commencing with the first commercial sale
                  of Therapeutic Vaccine by Dynavax anywhere in the Territories.

                           (c) SALES BONUS PAYMENTS. As partial consideration
                  for the rights and licenses granted hereunder, Dynavax shall
                  pay Berna the following one-time milestone payments if the
                  applicable milestone event is achieved:

                                    (iii)    [***] upon achievement of [***] in
                                    cumulative Net Sales of Therapeutic Vaccine
                                    anywhere in the Territories.

                                    (iv)     [***] upon achievement of [***] in
                                    cumulative Net Sales of Therapeutic Vaccine
                                    anywhere in the Territories.

                  4.3.2    IN CASE DYNAVAX ELECTS TO SUBLICENSE DEVELOPMENT AND/
OR COMMERCIAL RIGHTS TO THE THERAPEUTIC VACCINE, Dynavax shall pay Berna the
following in lieu of payment under 4.3.1:

                           (a) [***] of all revenues, in any form (including,
                  but not restricted to, upfront, milestones, royalty and sales
                  bonus payments), it receives in consideration of having
                  granted such sublicense.

                           (b) For clarity, the following amounts received by
                  Dynavax shall not be deemed to be revenues in consideration of
                  the sublicense: equity investment in Dynavax, loans (if
                  repaid), and R&D funding.

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       8
<PAGE>

         4.4      PAYMENT TERM. Royalties, if due, shall be paid for 15 years
from the first commercial sale of Vaccines in each country.

         4.5      PAYMENT SCHEDULE. Royalties shall be calculated on a
semi-annual basis, specifically, the periods January 1 through June 30 and July
1 through December 31, ("Semi-Annual Period") and shall be due and payable
within forty-five (45) days after the end of such Semi-Annual Period, commencing
upon the completion of the first Semi-Annual Period during which the first
commercial sale occurs.
Should Dynavax elect to sublicense development and/ or commercial rights to
Therapeutic Vaccine, payment of Berna share of the proceeds as defined in
Section 4.3.2 shall be due and payable within forty-five (45) days after the end
of the Semi-Annual Period, commencing upon completion of the Semi-Annual Period
during which signature of the sublicensing agreement occurs.

         4.6      PAYMENT REPORTS. Forty-five (45) days following the end of
each Semi-Annual Period, Dynavax shall furnish to Berna a written report that
includes (a) the identity of the countries in which sales of Vaccines have been
made and (b) the Net Sales of each Vaccine by Dynavax and the number thereof
sold in each such country. Such reports shall be due together with the royalty
and sales bonus payments under Sections 4.2.2, 4.3.1(b) and 4.3.1(c) subsequent
to launch of the Vaccines. Such reports shall be made whether or not Dynavax has
engaged in any sales of Vaccines during the Semi-Annual Period.
Should Dynavax elect to sublicense development and/ or commercial rights to
Therapeutic Vaccine, forty-five (45) days following the completion of the
Semi-Annual Period during which signature of the sublicensing agreement occurs,
Dynavax shall furnish to Berna a written report that includes details of
proceeds due to Dynavax under that agreement. At the end of each Semi-Annual
Period thereafter, Dynavax shall furnish to Berna a written report that details
any proceeds received by Dynavax from the Sublicensee. Such reports shall be due
together with payments under Section 4.3.2. Such report shall be made whether or
not Dynavax has received any proceeds from the Sublicensee during the
Semi-Annual Period.
All information provided by Dynavax pursuant to this Section 4.6 shall be
Confidential Information and subject to the terms of Section 14 hereto.

         4.7      AUDITS. Dynavax shall keep, and shall cause its Sublicensee to
keep, full, complete and accurate records and accounts of Net Sales of each
Vaccine and of other proceeds from Sublicensee in sufficient detail to enable
the royalty, sales bonus and other payments payable to Berna to be determined.
Upon reasonable notice to Dynavax, Berna shall have the right to have an
independent certified public accountant audit Dynavax's records pertaining to
Vaccines during normal business hours to verify the royalty, sales bonus and
other payments payable pursuant to this Agreement; provided, however that (a)
such audit shall not take place more frequently than once a year, and (b) shall
not cover such records for more than the preceding three (3) years. Such audits
shall be at Berna's expense unless such audit determines that Dynavax has paid
Berna less than ninety-five percent (95%) of the amount determined to be due for
a given time period, in which case such audit shall be at Dynavax's expense and
Dynavax shall pay to Berna the reasonable cost of such audit and any shortfall
in payments due to Berna within thirty (30) days following Berna's invoice to
Dynavax therefor. Dynavax shall preserve and maintain all such records and
accounts required for audit for a period of three (3) years after the calendar
year to which such records and accounts apply.

         4.8      PAYMENT INSTRUCTIONS. All payments due hereunder shall be made
in Swiss Francs (CHF) by wire transfer of immediately available funds to the
following account:

                  Account No.       [***]
                  Bank:             [***]

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       9
<PAGE>

                  Swift Code:       [***]
                  Clearing No.      [***]

or to such other account as Berna may designate from time to time.

         4.9      PAST DUE AMOUNTS. Any past due payments under this Agreement
shall accrue interest until paid at [***] per annum, or the maximum rate
permitted by law, whichever is less.

5. DEVELOPMENT AND COMMERCIALISATION

As partial consideration for the rights and licenses granted hereunder, Dynavax
and Berna agree to the following terms for development and commercialisation, as
follows:

         5.1      PROPHYLACTIC VACCINE

                  5.1.1    BERNA TO COMMERCIALISE. As partial consideration for
the rights and licenses granted hereunder, Dynavax grants Berna the exclusive
right to commercialise Prophylactic Vaccine in the Territories on the following
terms:

                           (a) Within two (2) months after availability to
                  Berna, in at least a written overview form, of clinical
                  results from the first pivotal phase III trial of Prophylactic
                  Vaccine, Berna will negotiate and enter into a
                  commercialisation agreement with Dynavax for Prophylactic
                  Vaccine on commercially-reasonable terms as are negotiated by
                  the Parties, by providing, on a country-by-country basis, an
                  acceptable sales and marketing plan.

                           (b) The commercialisation agreement shall be
                  structured in the form of a distribution agreement under which
                  Berna shall have [***].

                           (c) Based on its review of the phase III trial
                  results and evaluation of the commercial opportunity, Berna
                  may exercise an option out of such commercialisation agreement
                  with Dynavax for Prophylactic Vaccine (if entered into) on a
                  country-by-country basis at its sole discretion. If so,
                  Dynavax may choose to commercialise Prophylactic Vaccine
                  alone, subject to the payment provisions of Section 4.2.

         5.2      THERAPEUTIC VACCINE

                  5.2.1    OPTION TO COLLABORATE. As partial consideration for
the rights and licenses granted hereunder, Dynavax grants Berna an exclusive
option to negotiate and enter into a joint development agreement for the
Therapeutic Vaccine on commercially reasonable terms as are negotiated by the
Parties, on the following terms:

                           (a) This option shall be valid from the Effective
                  Date and shall expire [***] after availability to Berna, in at
                  least a written overview form, of phase II proof-of-concept
                  data showing statistically significant impact on markers of
                  viral replication or histological markers of liver damage.

                           (b) Should Berna exercise the option and the Parties
                  enter into a joint development agreement with Dynavax. [***].
                  This sum shall be

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       10
<PAGE>

                  payable in semi-annual instalments of one third. The first
                  payment shall be made within 30 days of expiry of the option
                  period, with the remaining payments to be made on the two
                  subsequent six-month anniversaries of this date.

                           (c) Should Berna exercise the option to enter into a
                  joint development agreement with Dynavax, [***].

                           (d) Should Berna exercise the option to enter into a
                  joint development agreement with Dynavax, the terms of this
                  Agreement, as applicable to Therapeutic Vaccine according to
                  Sections 2, 3.2, 4 and 6, become void from the date of
                  signature of the joint development agreement. The option to
                  commercialise (Section 5.2.2) becomes void also.

                  5.2.2    OPTION TO COMMERCIALISE. If Berna does not exercise
its option under Section 5.2.1, and Dynavax has not sublicensed commercial
rights to the Therapeutic Vaccine as part of a combined development and
commercialisation agreement, then Dynavax grants Berna an exclusive option to
commercialise Therapeutic Vaccine on the following terms:

                           (a) This option shall be valid from the Effective
                  Date and shall expire [***] after availability of clinical
                  results to Berna, in at least a written overview form, from
                  the first pivotal phase III trial, during which time Berna
                  will be entitled to negotiate and enter into a
                  commercialisation agreement with Dynavax for the Therapeutic
                  Vaccine on commercially-reasonable terms as are negotiated by
                  the Parties, by providing, on a country-by-country basis, an
                  acceptable sales and marketing plan.

                           (b) The commercialisation agreement shall be
                  structured in the form of a distribution agreement under which
                  Berna shall have [***].

                           (c) Should Berna exercise the option and the Parties
                  enter into a commercialisation agreement with Dynavax for
                  Therapeutic Vaccine, the terms of this Agreement as applicable
                  to Therapeutic Vaccine become void from the date of signature
                  of the commercialisation agreement.

6. PERFORMANCE OBLIGATIONS.

         6.1      COMMERCIAL DEVELOPMENT. Dynavax shall use its commercially
reasonable diligent efforts to meet the development schedule attached hereto as
Appendix B. Dynavax shall at all times keep Berna generally informed of
Dynavax's updated development plans, which Dynavax shall provide to Berna in
writing [***], for Vaccines, including Dynavax's planned timing for Vaccines
commercial launch dates on a country-by-country basis. All dates and other
information provided by Dynavax in such plan shall be used for planning purposes
only, and shall be subject to reasonable modification by Dynavax based on its
actual progress in the development process. Berna and Dynavax shall meet
annually regarding Dynavax's efforts under this Agreement. Not more than two
representatives from each Dynavax and Berna shall attend such meeting, which may
take place either in person in a mutually agreed-upon location or via
teleconference. At least thirty (30) days prior to each such meeting, Dynavax
shall submit an annual written report to Berna that summarises Dynavax's efforts
toward development and commercialisation of Vaccines.

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                       11
<PAGE>

         6.2      MARKETING DOCUMENTATION. At all times during the term of this
Agreement, Dynavax agrees to furnish reasonably promptly to Berna upon request
all documentation and data that is or may hereafter be in Dynavax's possession
relating to Dynavax's marketing of Vaccines, including, but not limited to,
marketing support data. All such information and data shall be Confidential
Information subject to Section 14 hereof.

7. GOVERNMENTAL APPROVALS.

         7.1      A Party shall be responsible at its own expense for obtaining
all Government Approvals for a Vaccine in any country where that Vaccine shall
be sold or otherwise distributed by that Party. Each Party, at its own expense,
agrees to provide the other Party with any assistance reasonably requested by it
in obtaining such Governmental Approvals. While Berna grants the above rights to
the adr-HBsAg Technology and the use of the related documention, it is Dynavax's
and its Sublicensees' obligation to comply with all relevant laws and
regulations in the Territories.

         7.2      Within sixty (60) days following receipt by a Party, it shall
promptly provide the other Party with notice of all Government Approvals
received by it regarding Vaccines.

8. PUBLICATIONS.

         8.1      IN GENERAL. Dynavax shall not publish or present, orally or in
writing, including without limitation at symposia, national or regional
professional meetings, or to publish in journals or other publications, any
Confidential Information of Berna in any way relating to any aspect of the
adr-HBsAg, whether separately or as part of Vaccines, including, but not limited
to, the development or manufacture of the adr-HBsAg, whether separately or as
part of Vaccines (the "Proposed Publication"), without providing Berna the
opportunity for prior review. The Proposed Publication will be submitted to
Berna at least [***] prior to the date on which it is to be submitted or
disclosed to any person or entity not a party to this Agreement. During the
[***] period, Berna will review the Proposed Publication for accuracy,
disclosure of patentable material or disclosure of its Confidential Information.
If, in Berna's sole opinion, a Proposed Publication contains patentable
material, Berna will so notify Dynavax before the expiration of the [***] review
period. After such notice, Berna may delay publishing for a period of up to
[***], to permit filing of appropriate patent applications. Berna shall have the
right to remove its Confidential Information from any Proposed Publication.

         8.2      PUBLIC ANNOUNCEMENTS.

                  8.2.1    Within 7 days of the execution of this Agreement, the
Parties agree to issue a joint press release on the same date. This press
release must receive the prior written approval of each party prior to issuance,
which approval shall not be unreasonably withheld

                  8.2.2    During the term of this Agreement, the Parties agree
to consult with each other before issuing any press release or making any public
statement based on new or previously undisclosed information with respect to
this Agreement or any other transaction contemplated herein and, except as may
be required by applicable law or any listing agreement with any national
securities exchange, shall not issue any such press release or make any such
public statement prior to obtaining the written consent of the other Party, such
consent not to be unreasonably withheld.

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                       12
<PAGE>

9. REPRESENTATIONS AND WARRANTIES.

         9.1      NONTRANSFER. Dynavax represents and warrants that it will not
transfer the adr-HBsAg, other than as part of the Vaccines, to any third party
without the prior written consent of Berna, save for Dynavax's transfer of
adr-HBsAg to its Sublicensee or Fill and Finish Manufacturer as stipulated in
Section 2.3, or as a Permitted Use under Section 3.7.

         9.2      COMPLIANCE WITH LAW. Dynavax warrants that Vaccines
manufactured and/or sold or distributed by Dynavax will be manufactured, sold
and distributed in accordance with all applicable laws, rules and regulations of
the country of manufacture, sale or distribution of such Vaccines. Berna
warrants that all adr-HBsAg manufactured and sold to Dynavax will be
manufactured, sold and distributed in accordance with all applicable laws, rules
and regulations of the country of manufacture.

         9.3      NO CONFLICT. Each Party hereby represents and warrants that it
is authorised to enter into this Agreement and that this Agreement does not
create a conflict with any other right or obligation provided under any other
agreement or obligation that such Party has with any third party.

10. INDEMNIFICATION.

         10.1     Dynavax hereby agrees to indemnify, defend and hold harmless
Berna, its Affiliates and their officers, agents and employees from and against
any and all claims, actions, proceedings, liabilities or losses, including
reasonable legal expenses and costs, including attorney fees (collectively,
"Losses"), that arise from (a) any material breach of this Agreement, including
a breach of any representation, warranty or covenant made by Dynavax hereunder,
by Dynavax, (b) the negligence or wilful misconduct of Dynavax, its Affiliates
or Sublicensee(s) and the employees, agents and contractors thereof, (c) any
manufacturing of Vaccines, (d) the Vaccines infringing upon or violating any
third party's patent or other proprietary rights , or (e) any handling,
possession, use, marketing, distribution or sales of Vaccines by Dynavax or its
Sublicensee(s); provided, however, that Dynavax shall have no obligation to
indemnify Berna to the extent that such losses are the result of Berna's gross
negligence or wilful misconduct or supply of defective adr-HBsAg.

         10.2     Berna hereby agrees to indemnify, defend and hold harmless
Dynavax, its Affiliates and their officers, agents and employees from and
against any and all claims, actions, proceedings, liabilities or losses,
including reasonable legal expenses and costs, including attorney fees
(collectively, "Losses"), that arise from (a) any material breach of this
Agreement, including a breach of any representation, warranty or covenant made
by Berna hereunder, by Berna, (b) the negligence or wilful misconduct of Berna,
its Affiliates or Sublicensee(s) and the employees, agents and contractors
thereof, (c) any manufacturing of adr-HBsAg, (d) the adr-HBsAg infringing upon
or violating any third party's patent or other proprietary rights in the country
of manufacturing, or (e) any handling, possession, use, marketing, distribution
or sales of Vaccines by Berna or its sublicensees; provided, however, that Berna
shall have no obligation to indemnify Dynavax to the extent that such Losses are
the result of Dynavax's gross negligence or wilful misconduct.

11. INSURANCE.

         11.1     Dynavax shall obtain and maintain in effect during the term of
this Agreement and for five (5) year thereafter, with financially strong
insurance carriers, commercial general liability insurance covering bodily
injury and property damage necessary to meet its liability obligations under
this Agreement or amounts comparable to other companies of the same size

                                       13
<PAGE>

and having the same business as Dynavax. Dynavax shall provide a statement to
Berna in which Dynavax identifies its insurer and warrants that its coverage is
sufficient to meet its obligations set forth herein. The insurance limits will
be increased as a function of increasing sales levels. There shall be a thirty
(30) day notice of cancellation with respect to the insurance coverage, and
Berna shall be notified in the event of any material change directly affecting
Berna in the insurance contract or coverages afforded. Dynavax shall be solely
responsible for the payment of any deductible. Berna shall maintain similar
insurance levels as the above.

12. LIMITATION OF LIABILITY

In no event will either Party hereto be liable for any special, incidental,
consequential or indirect damages suffered by the other Party arising in any way
out of this Agreement, however caused and on any theory of liability. This
limitation will apply even if the Party has been advised of the possibility of
such damage.

13. DISCLAIMER OF WARRANTIES.

All adr-HBsAg are licensed and supplied hereunder "as is," and Berna hereby
disclaims any and all representations and warranties with regard to the
adr-HBsAg and Vaccines, express or implied, and specifically disclaims any other
express or implied warranties, including any implied warranties of
merchantability or fitness for a particular purpose or use and any other
statutory warranties or any warranty of patentability or noninfringement.

14. CONFIDENTIALITY.

         14.1     CONFIDENTIAL INFORMATION. "Confidential Information" shall
mean any proprietary information of a Party that is specifically designated as
"confidential" and that is disclosed by such Party to the other Party in any
form in connection with this Agreement. For the term of this Agreement and five
(5) years from the date of expiration or termination, each party (a) shall treat
as confidential all Confidential Information provided by the other Party, (b)
shall not use such Confidential Information except as expressly permitted under
the terms of this Agreement or otherwise authorised in writing by the disclosing
party, (c) shall implement reasonable procedures to prohibit the disclosure,
unauthorised duplication, misuse or removal of such Confidential Information,
and (d) shall not disclose such Confidential Information to any third party
except as permitted under the Agreement. Without limiting the foregoing, each of
the Parties shall use at least the same procedures and degree of care to prevent
the disclosure of Confidential Information as it uses to prevent the disclosure
of its own confidential information of like importance, and shall in any event
use no less than reasonable procedures and a reasonable degree of care.

         14.2     EXCEPTIONS. Notwithstanding the above, a Party shall have no
obligation under Section 14.1 with regard to any Confidential Information of the
other Party that such Party can demonstrate by competent evidence:

                           (a) was generally known and available to the public
                  domain at the time it was disclosed, or becomes generally
                  known and available to the public domain through no fault of
                  the receiver;

                           (b) was known to the receiver at the time of
                  disclosure as shown by the written records in existence at the
                  time of disclosure;

                           (c) is disclosed with the prior written approval of
                  the disclosing Party;

                                       14
<PAGE>

                           (d) becomes known to the receiving Party from a
                  source other than the disclosing Party without breach of this
                  Agreement by the receiving party and in a manner which is
                  otherwise not in violation of the disclosing party's rights;
                  or

                           (e) was independently developed by receiving Party
                  without any use of Confidential Information of the disclosing
                  Party.

                  14.2.2   REQUIRED DISCLOSURE. Notwithstanding the foregoing, a
Party may disclose specific Confidential Information of the other Party solely
to the extent such disclosure is required pursuant to the order or requirement
of a court, administrative agency, or other governmental body; provided, that
the disclosing Party shall provide reasonable advance notice to enable the other
Party to seek a protective order or otherwise prevent such disclosure.

15. TERM AND TERMINATION.

         15.1     TERM. The term of this Agreement shall be from the Effective
Date until expiration of Dynavax obligations to pay royalties pursuant to
Section 4.4.

         15.2     TERMINATION BY AGREEMENT. This Agreement may be earlier
terminated by either party upon mutual written agreement.

         15.3     TERMINATION BY DYNAVAX.

                  15.3.1   TERMINATION. This Agreement may be earlier terminated
by Dynavax upon twelve (12) months written notice to Berna. If Dynavax
terminates under this provision, Berna may continue to manufacture the amounts
of adr-HBsAg that are then considered "firm and binding" pursuant to Section 3.5
above, and, if Berna provides or has provided adr-HBsAg to Dynavax, then Dynavax
shall make all payments later due to Berna pursuant to Sections 3.2 and 4.

                  15.3.2   PARTIAL TERMINATION. If Berna does not exercise its
option to collaborate under Section 5.2.1 above, then Dynavax may terminate this
Agreement solely as to the Therapeutic Vaccine if, in its sole discretion, it
determines based on technical and commercial considerations that further
development of the Therapeutic Vaccine is not feasible.

         15.4     TERMINATION FOR BREACH. Upon any material breach of this
Agreement by a Party, the non-breaching Party may terminate this Agreement upon
sixty (60) days written notice to the breaching party, provided that such notice
shall become effective at the end of the sixty (60) day period only if the
breaching party shall not have cured such breach within such period. For
purposes of this Agreement, breach shall be deemed to "material" if it includes,
but not be limited to, (a) the promotion and sale of Vaccines for use outside of
the Disease Field, (b) distribution of adr-HBsAg other than as allowed under
this Agreement, (c) failure to pay the royalties and other payments due under
Section 4, (d) failure to comply with the publication obligations specifically
related to adr-HBsAg under Section 8.1, and (e) failure to comply with the
insurance requirements under Section 11.

         15.5     BANKRUPTCY. Either Party may terminate this Agreement by
giving thirty (30) days written notice to the other Party if such other Party
(a) files a petition of bankruptcy or has any such petition filed against such
other Party; (b) goes into compulsory liquidation; (c) has its business placed
in the possession of a receiver, a government or a government agency; (d) makes
an assignment for the benefit of creditors; or (e) is subject to a dissolution
or winding up.

                                       15
<PAGE>

         15.6     EFFECTS OF TERMINATION. Neither expiration nor termination
shall relieve either party of its obligations under Sections 4.4 through 4.9, 8,
9 through 14 and 16. Further, Dynavax shall make all reports and payments as are
required for the final quarter. Upon expiration or termination hereof, at
Berna's option, Dynavax shall return or destroy, and certify destruction of, any
adr-HBsAg in Dynavax's possession or control.

16. MARCH-IN RIGHTS

In the event that Berna is unable to manufacture and/or to supply to Dynavax the
forecasted and ordered amount of adr-HBsAg requested by Dynavax (subject to the
exceptions of Section 3.5(a) and 3.5(b) above) for any reason whatsoever
(including, but not limited to, bankruptcy, reorganization or merger), and does
not cure such failure within one hundred and twenty (120) days of written notice
by Dynavax, then Berna grants Dynavax a non-exclusive, non-sublicensable, right
and license under the adr-HBsAg Technology in the Territories to make or have
made by a third party adr-HBsAg for purposes solely of satisfying Dynavax's
requirements for making Vaccines. The choice of such third party will require
the explicit consent of Berna, the declaration of which should not be
unreasonably withheld.

Dynavax shall thereafter be entitled to access to all material and proprietary
rights owned or licensed by Berna necessary to make adr-HBsAg. Such access
includes, but is not limited to:

                           (a) access to Berna's Manufacturing Working Cell
                  Bank, and manufacturing process for adr-HbsAg and the relevant
                  analytical procedures.

                           (b) reasonable technical assistance by Berna to
                  enable such manufacturing technology transfer.

All information provided by Berna pursuant to this Section 16 shall be
Confidential Information and subject to the terms of Section 14. Dynavax shall
use its best efforts to enter into any such manufacturing agreement on customary
commercial terms that will allow for termination upon Berna's ability to again
supply adr-HBsAg. If Dynavax does enter into such a manufacturing agreement,
then such right and license shall not be revoked until such time as Berna is
once again in a position to meet its supply obligations under this Agreement, at
which time Dynavax's agreement with any third-party manufacturer will be
terminated in accordance with the terms therein.

To prevent above mentioned inability to manufacture and/or to supply, Berna has
the right to supply to Dynavax, observing reasonable lead times for change,
adr-HbsAg from a different manufacturing site that meets the specifications of
Annex 2 and is accompanied by documentation satisfying Article 3.12 of this
Agreement.

17. GENERAL PROVISIONS.

17.1 INDEPENDENT CONTRACTORS. Berna and Dynavax shall be independent contractors
and shall not be deemed to be partners, joint venturers or each other's agents,
and neither party shall have the right to act on behalf of the other except as
is expressly set forth in this Agreement.

17.2 ENTIRE AGREEMENT; AMENDMENT. This Agreement sets forth the entire agreement
and understanding between the parties and supersedes all previous agreements,
promises, representations, understandings, and negotiations, whether written or
oral between the parties with respect to the subject matter hereof. There shall
be no amendments or modifications to

                                       16
<PAGE>

this Agreement, except by a written document signed by both parties.

17.3 ASSIGNMENT. This Agreement shall be binding upon and shall inure to the
benefit of any successor or successors of Berna and Dynavax by reorganisation,
merger, consolidation or otherwise, and any assignee that has acquired all of
substantially all of the business and properties of either. Berna and Dynavax
shall not otherwise assign their rights and obligations hereunder unless having
obtained the prior written consent of the other party hereto, which consent will
not be unreasonably withheld or delayed.

17.4 GOVERNING LAW; INJUNCTIVE RELIEF. This Agreement shall be construed and
enforced in accordance with the laws of Switzerland. It is understood that the
application of the United Nations Convention on Contracts for the International
Sales of Goods (CISG, Vienna 1980) shall be excluded.Berna shall have the right
to such injunctive relief or other legal or equitable relief as is reasonable to
ensure that Dynavax does not transfer the adr-HBsAg to a third party, except as
allowed under this Agreement, without Berna's prior written consent

17.5 DISPUTE RESOLUTION. Any dispute or claim arising out of or in
connection with this Agreement shall be resolved as follows: (a) for a period of
thirty (30) days after a dispute arises the respective chief executive officers
of the parties or their designees shall negotiate in good faith in an effort to
resolve the dispute, and (b) if the dispute has not been resolved at the close
of such thirty (30) day period, the matter will be finally settled by binding
arbitration. The arbitration proceedings shall be governed by the procedural
rules of Chapter 12 of the Swiss Private International Law Act of December18,
1987 (SPIL;SR 291) and by any further rules subsequently agreed upon by the
PARTIES or fixed by the arbitration tribunal.

17.6 SEVERABILITY. If any provision of this Agreement is finally held to be
invalid, illegal or unenforceable by a court of competent jurisdiction, the
validity, legality and enforceability of the remaining provisions shall not be
affected or impaired in any way.

17.7 WAIVER. Any delay or failure in enforcing a party's rights under this
Agreement or any waiver as to a particular default or other matter shall not
constitute a waiver of a party's right to the future enforcement of its rights
under this Agreement.

17.8 NOTICE. Any notice required or permitted by this Agreement to be given to
either party shall be in writing and shall be deemed given when delivered
personally, by confirmed telecopy to a fax number designated in writing by the
party to whom notice is given, or by registered, recorded or certified mail,
return receipt requested, and addressed to the party to whom such notice is
directed, at:

If to Berna:      Berna Biotech AG.
                  Rehhagstrasse 79
                  CH-3018 Berne
                  Switzerland
                  Attention:  CEO
                  Fax: +41 31 980 62 29

                                       17
<PAGE>

with a copy to:   Berna Biotech Ltd.
                  Rehhagstrasse 79
                  CH-3018 Berne
                  Switzerland
                  Attention: VP Legal/Regulatory Affairs
                  Fax: + 41 31 980 6312

If to Dynavax:    Dynavax Technologies Corporation
                  717 Potter Street, Suite #100
                  Berkeley, California 94710, USA
                  Attention: President
                  Fax: (510) 450-7740

with a copy to:   Cooley Godward LLP
                  Five Palo Alto Square
                  3000 El Camino Real
                  Palo Alto, CA 94306
                  Attention: Barclay James Kamb, Esq.
                  Fax: (650) 849-7400

or at such other address or telecopy number as such party to whom notice is
directed may designate to the other party in writing.

17.9     FORCE MAJEURE. If the performance of this Agreement or any obligations
hereunder is prevented, restricted or interfered with by reason of fire or other
casualty or accident, strikes or labour disputes, war or other violence, any
law, order, proclamation, ordinance, demand or requirement of any government
agency, or any other act or condition beyond the control of the parties hereto,
the party so affected, upon giving prompt notice to the other party shall be
excused from such performance (other than the obligation to pay money) during
such prevention, restriction or interference.

17.10    HEADINGS. The section headings appearing in this Agreement are inserted
only as a matter of convenience and in no way define, limit, construe or
describe the scope or extent of such section or in any way affect such section.

17.11    COUNTERPARTS. This Agreement may be signed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one
instrument.

18. LIST OF APPENDICES

Appendix A: Specification of adr-HBsAg, extra highly concentrated

Appendix B: Commercial Development schedules of Prophylactic Vaccine and of
Therapeutic Vaccine.

Appendix C: Berna Biotech List of relevant Patents

                                       18
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date last written below.

DYNAVAX,                                       717 Potter Street, Suite #100

                                               Berkeley, California 94710 U.S.A.

/s/ Dino Dina                                  October 28, 03
---------------------------                    --------------

Dr. Dino Dina                                  Date:

President and Chief Executive Officer

BERNA BIOTECH AG,                              Rehhagstrasse 79

                                               CH-3018 Berne, Switzerland

/s/ Daan Ellens
---------------------------

[Name] DAAN ELLENS                             Date: 28 October 2003

[Title]  CHIEF OPERATION OFFICER
         CEO, Rhein Biotech N.V.

/s/ Illegible
---------------------------

[Name] Illegible                               Date: 28 October 2003

[Title] Director Rhein Biotech NV

/s/ J. v. Manger - Koenig                      28 October 2003
---------------------------

Jorg von Manger - Koenig
Executive Vice President
Legal/Regulatory Affairs
Intellectual Property Rights

                                       19
<PAGE>

APPENDIX A

SPECIFICATION OF adr-HBsAg, EXTRA HIGHLY CONCENTRATED BULK

-   Not formaldehyde treated

-   No preservative (thimerosal) has been added.

<TABLE>
<CAPTION>
NR.           TEST-ITEM               METHOD                  DIMENSIONS                    SPECIFICATIONS
--------------------------------------------------------------------------------------------------------------------
<S>      <C>                     <C>                    <C>                       <C>
1.       Protein content         Lowry method           (Mu)g/mL                  1.8x10(3) < or = X < or = 2.6x10(3)
--------------------------------------------------------------------------------------------------------------------
2.       HBsAg protein content   ELISA                  % on protein              > or = 95
--------------------------------------------------------------------------------------------------------------------
3.       Polysaccharide content  Anthrone method        (Mu)g/100 (Mu)g protein   < or = 10
--------------------------------------------------------------------------------------------------------------------
4.       Lipid content           Sulfphospho            (Mu)g/100 (Mu)g protein   < or = 100
                                 vanillin method
--------------------------------------------------------------------------------------------------------------------
5.       Agents used for         determination by       (Mu)g/100 (Mu)g protein   < or =  50
         purification process:   spectrophotometer
         Tween 20 content
--------------------------------------------------------------------------------------------------------------------
6.       Agents used for         detection of           (Mu)g/20 (Mu)g protein    < or =  5
         purification process:   residual Cesium by
         CsCl content            ion chromatography
--------------------------------------------------------------------------------------------------------------------
7.       Endotoxin               LAL                    E.U./ 100 (Mu)g           < or = 10
                                                        protein
--------------------------------------------------------------------------------------------------------------------
8.       Sterility               Direct method or                                 Sterile
                                 Membrane filter
                                 method
--------------------------------------------------------------------------------------------------------------------
9.       Conclusion release      Pass
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       20
<PAGE>

APPENDIX B

COMMERCIAL DEVELOPMENT SCHEDULES: PROPHYLACTIC VACCINE AND THERAPEUTIC VACCINE

                   HEPATITIS B PROPHYLACTIC DEVELOPMENT PLAN

[***]

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                       21
<PAGE>

APPENDIX B

COMMERCIAL DEVELOPMENT SCHEDULES: PROPHYLACTIC VACCINE AND THERAPEUTIC VACCINE

                    HEPATITIS B THERAPEUTIC DEVELOPMENT PLAN

[***]

[***]=CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED WITH
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                       22
<PAGE>

APPENDIX C

Licensed Patents

<TABLE>
<CAPTION>
Docket           Title                         Country         Serial No/Filing Date    Status
Number
<S>              <C>                           <C>             <C>                      <C>
Rhein Biotech    Process for preparing a         EP            Filed 25.07.1985         Granted 12.06.1991 as EP
                                                                                        173 378

                 Polypeptide by culturing a                                             Granted 31.08.1993 as US
                 transformed                     US            Filed 24.09.1990         5,240,838

                 Microorganism suitable          US            Filed 07.06.1995         Granted 21.04.1998 as US
                                                                                        5,741,672

                 Therefore and DNA sequences
                 suitable for preparing such     JP                                     Granted as JP 2 592 444
                 microorganism
                                                 JP                                     Granted as JP 2 675 202

                                                 JP                                     Granted as JP 2 575 284

                                                 DK                                     Pending

                                                 CA                                     pending
</TABLE>

                                       23
<PAGE>

<TABLE>
<S>              <C>                             <C>           <C>                      <C>
Rhein Biotech    DNA molecules coding for        EP            Filed 17.07.1987         Granted 18.05.1994 as
                 FMDH control regions and                                               EP 299 108       Granted
                 structured gene for a           US            Filed 03.03.1992         14.02.1995 as US
                 protein having FMDH                                                    5,389,525        Granted
                 activity and their uses         CA            Filed 28.10.1988         25.03.1997 as CA
                                                                                        1,339,012        Granted

                                                 JP            Filed 01.11.1988         02.06.2000 as JP 307 299
                                                                                        3         Granted
                                                 BR            Filed 17.10.1996         01.08.2000 as BR PI
                                                                                        1100065-1
                                                 CL            Filed 24.09.1996         Pending

                                                 DK            Filed 26.10.1988         Pending
</TABLE>

                                       24

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