Effective February 5, 2014, David L. Johnson, age 60, was appointed to the position of Vice President and Chief Accounting Officer of Dynavax Technologies Corporation ("Dynavax" or the "Company"). In this role, Mr. Johnson will serve as the principal accounting officer of Dynavax. Since November 20, 2013, Mr. Johnson has provided consulting services to Dynavax. Since December, 2002, Mr. Johnson has been the Managing Director of Macauley Johnson, LLC, which provides Chief Financial Officer services to emerging, start-up and publicly traded life sciences companies on a contract basis. Prior to founding Macauley Johnson, LLC Mr. Johnson served as Chief Financial Officer of Pain Therapeutics, Inc., a publicly traded biopharmaceutical company that develops novel drugs, from January 2000 to December 2002. Prior to January 2000, Mr. Johnson held financial positions at companies including Elan Pharmaceuticals North America, Gilead Sciences, Chiron Corporation and The Cooper Companies. Mr. Johnson holds a Bachelors of Science in Accounting from Oklahoma State University and is a Certified Public Accountant.<br /><br />In connection with his appointment as Vice President and Chief Accounting Officer, Dynavax entered into an employment agreement with Mr. Johnson effective as of February 5, 2014. Under the terms of his employment offer letter, Mr. Johnson will be paid an annual salary of $275,000. Mr. Johnson is eligible for annual incentive bonus compensation of up to 40% of his annual salary. As part of his employment offer letter, on February 5, 2014, the Company granted Mr. Johnson an option to purchase 200,000 shares of the Company's Common Stock with an exercise price equal to the fair market value of the Common Stock on the date of the grant, which was $1.69 per share. The option will vest as follows: 25% of the shares subject to the option shall vest twelve months after the vesting commencement date, and 1/48 of the shares subject to the option shall vest on the last day of each month thereafter. All compensation offered to Mr. Johnson is subject to applicable tax withholdings.<br /><br />The foregoing description of Mr. Johnson's employment agreement is a summary and is qualified in its entirety by reference to Mr. Johnson's employment agreement, which will be filed as exhibit to Dynavax's Annual Report on Form 10-K for the year ending December 31, 2013.<br /><br />(e) Compensation Arrangements of Certain Officers and Directors<br /><br />On February 4, 2014, upon recommendation of the Compensation Committee, the Board of Directors (the "Board") approved 2014 base salaries, 2013 bonuses and 2014 equity awards for the executive officers of the Company, including the named executive officers.<br /><br />The Board and the Compensation Committee annually evaluate the performance and determine the compensation of Dynavax's executive officers for competitive positions in similar life sciences companies. The 2013 compensation program included a cash bonus target based on pre-defined target payouts as a percentage of corporate performance as well as individual performance. Executive equity compensation was based on each executive's performance based on previously-disclosed Company guidelines.<br /><br />The 2014 base salaries, 2013 bonuses and 2014 equity awards approved by the Board are as set forth below:<br /><br />Name and Title          2014      2013 Bonus      2014 Stock         2014<br />                        Base                        Option        Restricted<br />                       Salary                      Award(1)       Stock Unit<br />                                                                    ("RSU")<br />                                                                     Award<br /><br />Eddie Gray           $ 515,000  $     250,000        1,500,000    500,000 (2)<br />  Chief Executive<br />Officer<br />Robert L. Coffman,   $ 440,000  $     175,000                -     25,000 (3)<br />Ph.D.<br />  Senior Vice<br />President and Chief<br />Scientific Officer<br />Robert Janssen       $ 358,750  $     145,000          180,000              -<br />  Chief Medical<br />Officer and Vice<br />President, Clinical<br />Development and<br />Regulatory Affairs<br />David Novack         $ 309,000  $     155,000          220,000              -<br />   Senior Vice<br />President,<br />Operations and<br />Quality<br />Michael S. Ostrach   $ 354,152  $     185,000          270,000              -<br />  Vice President,<br />Chief Business<br />Officer, General<br />Counsel and<br />Principal Financial<br />Officer