Document:

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                                                                   EXHIBIT 10.12

                                                              Customer No.  1080

                          LOAN AND SECURITY AGREEMENT

          THIS LOAN AND SECURITY AGREEMENT dated as of July 30, 1999, is made by
Dendreon Corporation (the "Borrower"), a Delaware corporation having its
principal place of business and chief executive office at 3005 First Avenue,
Seattle, Washington, 98121, in favor of Transamerica Business Credit
Corporation, a Delaware corporation (the "Lender"), having its principal office
at 9399 West Higgins Road, Suite 600, Rosemont, Illinois 60018 and having an
office at 76 Batterson Park Road, Farmington, Connecticut 06032.

          WHEREAS, the Borrower has requested that the Lender make a Loan to the
Borrower; and

          WHEREAS, the Lender has agreed to make such Loan on the terms and
conditions of this Agreement.

          NOW, THEREFORE, in consideration of the premises and to induce the
Lender to extend credit, the Borrower hereby agrees with the Lender as follows:

          SECTION 1.  DEFINITIONS.
                      -----------

          As used herein, the following terms shall have the following meanings,
and shall be equally applicable to both the singular and plural forms of the
terms defined:

          Agreement shall mean this Loan and Security Agreement together with
          ---------
all schedules and exhibits hereto, as amended, supplemented, or otherwise
modified from time to time.

          Applicable Law shall mean the laws of the State of Illinois (or any
          --------------
other jurisdiction whose laws are mandatorily applicable notwithstanding the
parties' choice of Illinois law) or the laws of the United States of America,
whichever laws allow the greater interest, as such laws now exist or may be
changed or amended or come into effect in the future.

          Business Day shall mean any day other than a Saturday, Sunday, or
          ------------
public holiday or the equivalent for banks in New York City.

          Cash Equivalents means (i) securities issued, guaranteed or insured by
          ----------------
the United States or any of its agencies with maturities of not more than one
year from the date acquired; (ii) certificates of deposit with maturities of not
more than one year from the date acquired, issued by any U.S. federal or state
chartered commercial bank of recognized standing which has capital and
unimpaired surplus in excess of $100,000,000; (iii) investments in money market
funds registered under the Investment Company Act of 1940; (iv) mutual funds, at
least 90% of the assets of which constitute Cash Equivalents of the kinds
described in clauses (i) - (iii) of this definition; and (v) other instruments,
commercial paper or investments acceptable to the Lender in its sole discretion.

          Closing Date means the date first set forth above.
          ------------

          Code shall have the meaning specified in Section 8(d).
          ----

                                       1.
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          Collateral shall have the meaning specified in Section 2.
          ----------

          Collateral Access Agreement shall mean any landlord waiver, mortgagee
          ---------------------------
waiver, bailee letter, or similar acknowledgement of any warehouseman or
processor in possession of any Collateral.

          Contingent Obligation means any direct, indirect, contingent or non-
          ---------------------
contingent guaranty or obligation for the indebtedness of another Person, except
endorsements in the ordinary course of business.

          Effective Date shall mean the date on which all of the conditions
          --------------
specified in Section 3.3 shall have been satisfied.

          Event of Default shall mean any event specified in Section 7.
          ----------------

          Financial Statements shall have the meaning specified in Section 6.1.
          --------------------

          GAAP shall mean generally accepted accounting principles in the United
          ----
States of America, as in effect from time to time.

          Loans shall mean the loans and financial accommodations made by the
          -----
Lender to the Borrower in accordance with the terms of this Agreement and any
Note delivered hereunder.

          Loan Documents shall mean, collectively, this Agreement, the Notes,
          --------------
and all other present and future documents, agreements, certificates,
instruments, and opinions delivered by the Borrower under, in connection with or
relating to this Agreement, or any other present or future instrument or
agreement between Lender and Borrower, as each of the same may be amended,
modified, extended, restated or supplemented from time to time.

          Material Adverse Change shall mean, with respect to any Person, a
          -----------------------
material adverse change in the business, operations, results of operations,
assets, liabilities, or financial condition of such Person taken as a whole.

          Material Adverse Effect shall mean, with respect to any Person, a
          -----------------------
material adverse effect on the business, operations, results of operations,
assets, liabilities, or financial condition of such Person taken as a whole.

          Note shall mean each Promissory Note, in substantially the form
          ----
attached hereto, made by the Borrower in favor of the Lender, as amended,
supplemented, or otherwise modified from time to time.

          Obligations shall mean and include all loans (including the Loans),
          -----------
advances, debts, liabilities, obligations, covenants and duties owing by
Borrower to Lender of any kind or nature, present or future, whether or not
evidenced by the Note or any note, guaranty or other instrument, whether or not
arising under or in connection with, this Agreement, any other Loan Document or
any other present or future instrument or agreement, whether or not for the
payment of money, whether arising by reason of an extension of credit, opening,
guaranteeing or confirming of a letter of credit, loan, guaranty,
indemnification or in any other manner, whether direct or indirect (including
those acquired by assignment, purchase, discount or otherwise), whether absolute
or contingent, due or to become due, now due or hereafter arising and however
acquired (including without limitation all loans previously made by Lender to
Borrower).  The term includes, without limitation, all interest (including
interest accruing on or after an bankruptcy, whether or not an allowed claim),
charges, expenses, commitment, facility, closing and collateral management fees,
letter of credit fees, reasonable attorneys' fees, taxes and any other sum

                                       2.
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properly chargeable to Borrower under this Agreement, the other Loan Documents
or any other present or future agreement between Lender and Borrower.

          Permitted Liens shall mean such of the following as to which no
          ---------------
enforcement, collection, execution, levy, or foreclosure proceeding shall have
been commenced: (a) liens for taxes, assessments, and other governmental charges
or levies or the claims or demands of landlords, carriers, warehousemen,
mechanics, laborers, materialmen, and other like Persons arising by operation of
law in the ordinary course of business for sums which are not yet due and
payable, or liens which are being contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves are
maintained to the extent required by GAAP; (b) deposits or pledges to secure the
payment of worker's compensation, unemployment insurance, or other social
security benefits or obligations, public or statutory obligations, surety or
appeal bonds, bid or performance bonds, or other obligations of a like nature
incurred in the ordinary course of business; (c) licenses, restrictions, or
covenants for or on the use of the Collateral which do not materially impair
either the use of the Collateral in the operation of the business of the
Borrower or the value of the Collateral; (d) attachment or judgment liens that
do not constitute an Event of Default; and (e) a lien on any item of equipment
created substantially simultaneously with the acquisition of such equipment for
the purpose of financing such acquisition, provided that such lien shall attach
only to the equipment acquired.

          Person shall mean any individual, sole proprietorship, partnership,
          ------
limited liability partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
entity, party, or government (including any division, agency, or department
thereof), and the successors, heirs, and assigns of each.

          Receivable shall have the meaning set forth in Section 8(e).
          ----------

          Schedule shall mean Schedule A hereto containing certain information
          --------
pertaining to the Borrower.

          Solvent means, with respect to any Person, that as of the date as to
          -------
which such Person's solvency is measured:

          (a) the fair saleable value of its assets is in excess of the total
amount of its liabilities (including contingent liabilities as valued in
accordance with GAAP) as they become absolute and matured;

          (b) it has sufficient capital to conduct its business; and

          (c) it is able generally to meet its debts as they mature.

          Taxes shall have the meaning specified in Section 5.5.
          -----

SECTION 2.    CREATION OF SECURITY INTEREST; COLLATERAL. The Borrower hereby
              -----------------------------------------
assigns and grants to the Lender a continuing general, lien on, and security
interest in, all the Borrower's right, title, and interest in and to the
collateral described in the next sentence (the "Collateral") to secure the
payment and performance of all the Obligations, subject only to Permitted Liens.
Collateral means Receivables, Investment Property, Inventory, Equipment, and
Other Property and all additions and accessions thereto and substitutions and
replacements therefor and improvements thereon, and all proceeds (whether cash
or other property) and products thereof, including, without limitation, all
proceeds of insurance coveting the same and all tort claims in connection
therewith, and all records, files, computer

                                       3.
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programs and files, data and writings relating to the foregoing, and all
equipment containing the foregoing.

          Equipment means all machinery, equipment, furniture, fixtures,
          ---------
conveyors, tools, materials, storage and handling equipment, hydraulic presses,
cutting equipment, computer equipment and hardware, including central processing
units, terminals, drives, memory units, printers, keyboards, screens,
peripherals and input or output devices, molds, dies, stamps, vehicles, and
other equipment of every kind and nature and wherever situated now or hereafter
owned by Borrower or in which Borrower may have any interest as lessee or
otherwise (to the extent of such interest), together with all additions and
accessions thereto, all replacements and all accessories and parts therefor, all
manuals, blueprints, know-how, warranties and records in connection therewith,
all rights against suppliers, warrantors, manufacturers, sellers or others in
connection therewith, and together with all substitutes for any of the
foregoing; and

          Inventory means all present and future goods intended for sale, lease
          ---------
or other disposition by Borrower including, without limitation, all raw
materials, work in process, finished goods and other retail inventory, goods in
the possession of outside processors or other third parties, goods consigned to
Borrower to the extent of its interest therein as consignee, materials and
supplies of any kind, nature or description which are or might be used in
connection with the manufacture, packing, shipping, advertising, selling or
finishing of any such goods, and all documents of title or documents
representing the same; and

          Investment Property means any and all investment property of Borrower,
          -------------------
including all securities, whether certificated or uncertificated, security
entitlements, securities accounts, commodity contracts and commodity accounts,
and all financial assets held in any securities account or otherwise, wherever
located, and whether now existing or hereafter acquired or arising; and

          Other Property means all present and future instruments, documents,
          --------------
documents of title, securities, bonds, notes, promissory notes, drafts,
acceptances, letters of credit and rights to receive proceeds of letters of
credit, deposit accounts, chattel paper, certificates, insurance policies,
insurance proceeds, leases, computer tapes, causes of action, judgments, claims
against third parties, leasehold rights in any personal property, books,
ledgers, files and records, general intangibles (including without limitation,
all contract rights, tax refunds, rights to receive tax refunds, patents, patent
applications, copyrights (registered and unregistered), royalties, licenses,
permits, franchise rights, authorizations, customer lists, rights of
indemnification, contribution and subrogation, computer programs, discs and
software, trade secrets, computer service contracts, trademarks, trade names,
service marks and names, logos, goodwill, deposits, choses in action, designs,
blueprints, plans, know-how, telephone numbers and rights thereto, credits,
reserves, and all forms of obligations whatsoever now or hereafter owing to
Borrower), all property at any time in the possession or under the control of
Lender, and all security given by Borrower to Lender pursuant to any other loan
document or agreement; and

          Receivables means all present and future accounts and accounts
          -----------
receivable, together with all security therefor and guaranties thereof and all
rights and remedies relating thereto, including any right of stoppage in
transit.

SECTION 3.  THE CREDIT FACILITY.
            -------------------

            SECTION 3.1.  Borrowings.  The Lender, subject to the terms and
conditions of this Agreement, agrees to make a Loan to Borrower in a single
drawdown, at Borrower's request, in a principal amount not to exceed $3,000,000.
Notwithstanding anything herein to the contrary, the Lender shall be obligated
to make such Loan only after the Lender, in its sole discretion, determines that
the

                                       4.
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applicable conditions for borrowing contained in Sections 3.3 and 3.4 are
satisfied. The timing and financial scope of Lender's obligation to make Loans
hereunder are limited as set forth in a commitment letter executed by Lender and
Borrower, dated as of July 9, 1999 and attached hereto as Exhibit A (the
"Commitment Letter").

          SECTION 3.2.  Application of Proceeds.  The Borrower shall use the
proceeds of the Loans for its general working capital purposes.

          SECTION 3.3.  Conditions to Loan.

     (a)  The obligation of the Lender to make the Loan is subject to the
Lender's receipt of the following, on or before the Closing Date, each dated the
date of the Loan or as of an earlier date acceptable to the Lender, in form and
substance satisfactory to the Lender and its counsel:

          (i)    completed requests for information (Form UCC-11) listing all
effective Uniform Commercial Code financing statements naming the Borrower as
debtor and all tax lien, judgment, and litigation searches for the Borrower as
the Lender shall deem necessary or desirable;

          (ii)   acknowledgment copies of Uniform Commercial Code financing
statements (naming the Lender as secured party and the Borrower as debtor), duly
fried in all jurisdictions that the Lender deems necessary or desirable to
perfect and protect the security interests created hereunder, and evidence that
all other filings, registrations and recordings have been made in the
appropriate governmental offices, and all other action has been taken, which
shall be necessary to create, in favor of the Lender, a perfected first priority
Lien on the Collateral;

          (iii)  a Note duly executed by the Borrower evidencing the amount of
such Loan;

          (iv)   an Intellectual Property Security Agreement, in form and
substance satisfactory to the Lender and its counsel, duly executed by the
Borrower, specifically identifying and granting to the Lender a security
interest in all of the Borrower's intellectual property;

          (v)    if requested by the Lender, a Collateral Access Agreement duly
executed by the lessor or mortgagee, as the case may be, of each premises where
the equipment Collateral is located;

          (vi)   a Notice of Security Interest, in form and substance
satisfactory to the Lender and its counsel, to each financial institution at
which any deposit accounts of Borrower are maintained;

          (vii)  the warrants described in the Commitment Letter, if any;

          (viii) certificates of insurance required under Section 5.4 of this
Agreement together with loss payee endorsements for all such policies naming the
Lender as lender loss payee and as an additional insured;

          (ix)   a certificate of the Secretary or an Assistant Secretary of the
Borrower ("Secretary's Certificate") certifying (A) that attached to the
Secretary's Certificate is a true, complete, and accurate copy of the
resolutions of the Board of Directors of the Borrower (or a unanimous consent of
directors in lieu thereof) authorizing the execution, delivery, and performance
of this Agreement, the other Loan Documents, and the transactions contemplated
hereby and thereby, and that such resolutions have not been amended or modified
since the date of such certification and are in full force and effect; (B) the
incumbency, names, and true signatures of the officers of the Borrower
authorized to sign the

                                       5.
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Loan Documents to which it is a party; (C) that attached to the Secretary's
Certificate is a true and correct copy of the Articles or Certificate of
Incorporation of the Company, as amended, which Articles or Certificate of
Incorporation have not been further modified, repealed or rescinded and are in
full force and effect; (D) that attached to the Secretary's Certificate of the
Borrower is a true and correct copy of the Bylaws, as amended, which Bylaws of
the Company have not been further modified, repealed or rescinded and are in
full force and effect; and (E) that attached to the Secretary's Certificate is a
valid Certificate of Good Standing issued by the Secretary of the State of the
Borrower's state of incorporation;

          (xi)   the opinion of counsel for the Borrower covering such matters
incident to the transactions contemplated by this Agreement as the Lender may
reasonably require;

          (xii)  evidence of the consent or authorization of, filing with or
other act by or in respect of any governmental agency or authority or any other
Person required in connection with the execution, delivery, performance,
validity or enforceability of this Agreement, or the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby; and

          (xiii) such other documents, agreements and instruments as the Lender
deems necessary in its sole and absolute discretion in connection with the
transactions contemplated hereby.

     (b)  The security interests in the Collateral granted in favor of the
Lender under this Agreement shall have been duly perfected and shall constitute
first priority liens, except for Permitted Liens.

          SECTION 3.4.  Additional Conditions Precedent. The obligation of the
Lender to make the Loan is subject to the satisfaction of the following
additional conditions precedent:

     (a)  There shall be no pending or, to the knowledge of the Borrower after
due inquiry, threatened litigation, proceeding, inquiry, or other action (i)
seeking an injunction or other restraining order, damages, or other relief with
respect to the transactions contemplated by this Agreement or the other Loan
Documents or thereby or (ii) which affects or could affect the business,
prospects, operations, assets, liabilities, or condition (financial or
otherwise) of the Borrower, except, in the case of clause (ii), where such
litigation, proceeding, inquiry, or other action could not be expected to have a
Material Adverse Effect in the judgment of the Lender;

     (b)  all representations and warranties contained in this Agreement and the
other Loan Documents shall be true and correct on and as of the date of such
Loan as if then made, other than representations and warranties that expressly
relate solely to an earlier date, in which case they shall have been true and
correct as of such earlier date;

     (c)  no Event of Default or event which with the giving of notice or the
passage of time, or both, would constitute an Event of Default shall have
occurred and be continuing or would result from the making of the requested Loan
as of the date of such request; and

     (d)  the Borrower shall be deemed to have hereby reaffirmed and ratified
all security interests, liens, and other encumbrances heretofore granted by the
Borrower to the Lender.

          SECTION 3.5.  Interest Rate; Repayment. The interest rate applicable
to the Loan made by the Lender hereunder, and the repayment date for such Loan,
are as set forth in the Note evidencing such Loan.

                                       6.
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               SECTION 4.  REPRESENTATIONS AND WARRANTIES.
                           ------------------------------

               SECTION 4.1.  Good Standing; Qualified to do Business.  The
Borrower (a) is duly organized, validly existing, and in good standing under the
laws of the State of its organization, (b) has the power and authority to own
its properties and assets and to transact the businesses in which it is
presently, or proposes to be, engaged, and (c) is duly qualified and authorized
to do business and is in good standing in every jurisdiction in which the
failure to be so qualified could have a Material Adverse Effect on (i) the
Borrower, (ii) the Borrower's ability to perform its obligations under the Loan
Documents, or (iii) the rights of the Lender hereunder.

               SECTION 4.2.  Due Execution, etc.  The execution, delivery, and
performance by the Borrower of each of the Loan Documents to which it is a party
are within the powers of the Borrower, do not contravene the organizational
documents, if any, of the Borrower, and do not (a) violate any law or
regulation, or any order or decree of any court or governmental authority, (b)
conflict with or result in a breach of, or constitute a default under, any
material indenture, mortgage, or deed of trust or any material lease, agreement,
or other instrument binding on the Borrower or any of its properties, or (c)
require the consent, authorization by, or approval of or notice to or filing or
registration with any governmental authority or other Person, except as may be
set forth in the Schedule.  This Agreement is, and each of the other Loan
Documents to which the Borrower is or will be a party, when delivered hereunder
or thereunder, will be, the legal, valid, and binding obligation of the Borrower
enforceable against the Borrower in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, or similar laws
affecting creditors' rights generally and by general principles of equity.

               SECTION 4.3.  Solvency; No Liens.  The Borrower is Solvent and
will be Solvent upon the completion of all transactions contemplated to occur
hereunder (including, without limitation, the Loan to be made on the Effective
Date); the security interests granted herein constitute and shall at all times
constitute the first and only liens on the Collateral other than Permitted
Liens; and the Borrower is, or will be at the time additional Collateral is
acquired by it, the absolute owner of the Collateral with full right to pledge,
sell, consign, transfer, and create a security interest therein, free and clear
of any and all claims or liens in favor of any other Person other than Permitted
Liens.

               SECTION 4.4.  No Judgments, Litigation. No judgments are
outstanding against the Borrower nor is there now pending or, to the best of the
Borrower's knowledge, threatened any litigation, contested claim, or
governmental proceeding by or against the Borrower except judgments and pending
or threatened litigation, contested claims, and governmental proceedings which
would not, in the aggregate, have a Material Adverse Effect on the Borrower.

               SECTION 4.5.  No Defaults. The Borrower is not in default or has
not received a notice of default under any material contract, lease, or
commitment to which it is a party or by which it is bound. The Borrower knows of
no dispute regarding any contract, lease, or commitment which could have a
Material Adverse Effect on the Borrower.

               SECTION 4.6.  Collateral Locations. The address of the principal
place of business and chief executive office of Borrower is, and the books and
records of Borrower and all of its chattel paper and records relating to
Collateral are maintained exclusively in the possession of Borrower at, the
address of Borrower specified in the heading of this Agreement. Borrower has
places of business, and Collateral is located, only at such address and at the
addresses set forth in the Schedule and at any additional locations reported to
the Lender as provided in Section 5.7 as to which the Lender has taken all
necessary action to perfect and protect its security interests in the Collateral
at any such locations.

                                       7.
<PAGE>

               SECTION 4.7.  Corporate and Trade Names; Federal Tax ID. During
the past five years, Borrower has not been known by or used any other corporate,
trade or fictitious name except for its name as set forth on the signature page
of this Agreement and the other names specified in the Schedule.  The Borrower's
Federal Tax ID number is as set forth in the Schedule.

               SECTION 4.8.  No Events of Default. No Event of Default has
occurred and is continuing nor has any event occurred which, with the giving of
notice or the passage of time, or both, would constitute an Event of Default.

               SECTION 4.9.  No Limitation on Lender's Rights. Except as
permitted herein, none of the Collateral is subject to contractual obligations
that may restrict or inhibit the Lender's rights or abilities to sell or dispose
of the Collateral or any part thereof after the occurrence of an Event of
Default.

               SECTION 4.10. Perfection and Priority of Security Interest. This
Agreement creates a valid and, upon completion of all required filings of
financing statements, perfected, and first priority and exclusive, security
interest in the Collateral, except for any Permitted Liens, securing the payment
of all the Obligations.

               SECTION 4.11. Intellectual Property.  Set forth in the Schedule
is a complete and accurate list of all patents, trademarks, trade names, service
marks and copyrights (registered and unregistered), and all applications
therefor and licenses thereof, of Borrower.  Borrower owns or licenses all
material patents, trademarks, service-marks, logos, tradenames, trade secrets,
know-how, copyrights, or licenses and other rights with respect to any of the
foregoing, which are necessary or advisable for the operation of its business as
presently conducted or proposed to be conducted.  To the best of its knowledge
after due inquiry, Borrower has not infringed any patent, trademark, service-
mark, tradename, copyright, license or other right owned by any other Person by
the sale or use of any product, process, method, substance, part or other
material presently contemplated to be sold or used, where such sale or use would
reasonably be expected to have a Material Adverse Effect and no claim or
litigation is pending, or to the best of Borrower's knowledge, threatened
against or affecting Borrower that contests its right to sell or use any such
product, process, method, substance, part or other material.

               SECTION 4.12. Consents and Filings.  No consent, authorization
or approval of, or filing with or other act by, any shareholders of Borrower or
any governmental authority or other Person is required in connection with the
execution, delivery, performance, validity or enforceability of this Agreement
or any other Loan Document, the consummation of the transactions contemplated
hereby or thereby or the continuing operations of Borrower following such
consummation, except (i) those that have been obtained or made, (ii) the filing
of financing statements under the Code and (iii) any necessary filings with U.S.
Copyright Office and the U.S. Patent and Trademark Office.

               SECTION 4.13. Year 2000 Compliance. The Borrower has (i)
initiated a review and assessment of all areas within its business and
operations (including those affected by suppliers and vendors) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Borrower (or its suppliers and vendors) may be unable
to recognize and perform properly date-sensitive functions involving certain
dates prior to and any date after December 31, 1999), (ii) developed a plan and
timeline for addressing the Year 2000 Problem on a timely basis, and (iii) to
date, implemented that plan in accordance with that timetable. The Borrower
reasonably believes that all computer applications (including those of its
suppliers and vendors) that are material to its business and operations will on
a timely basis be able to perform properly date-sensitive functions for all
dates before and after January 1, 2000 (that is, be "Year 2000 compliant"),
except to the extent that a failure to do so could not reasonably be expected to
have Material Adverse Effect.

                                       8.
<PAGE>

               SECTION 4.14. Taxes.  Borrower has properly completed and timely
filed all income tax returns it is required to file, and all Taxes, assessments,
fees and other governmental charges for periods beginning prior to the date of
this Agreement have been timely paid (or, if not yet due or being disputed in
good faith, adequate reserves therefor have been established in accordance with
GAAP) and Borrower has no liability for Taxes in excess of the amounts so paid
or reserves so established.  No deficiencies for Taxes have been claimed,
proposed or assessed by any taxing or other governmental agency or authority
against Borrower and no notice of any tax lien has been filed.  There are no
pending or (to the best knowledge of Borrower) threatened audits, investigations
or claims for or relating to any liability for Taxes and there are no matters
under discussion with any governmental agency or authority which could result in
an additional material liability for Taxes.

               SECTION 4.15. Financial Statements.  Borrower has provided to
the Lender complete and accurate Financial Statements, which have been prepared
in accordance with GAAP (except for the absence of footnotes and subject to
normal year-end adjustments with respect to unaudited financial statements)
consistently applied throughout the periods involved and fairly present the
financial position and results of operations of Borrower for each of the periods
covered, subject, in the case of any quarterly financial statements, to normal
year-end adjustments and the absence of notes.  Borrower has no Contingent
Obligation or liability for Taxes, unrealized losses, unusual forward or long-
term commitments or long-term leases, which is not reflected in such Financial
Statements or the footnotes thereto.  Since the last date covered by such
Financial Statements, there has been no sale, transfer or other disposition by
Borrower of any material part of its business or property and no purchase or
other acquisition of any business or property (including any capital stock of
any other Person) material in relation to the financial condition of Borrower at
said date.  Since said date, (i) there has been no change, occurrence,
development or event which has had or could reasonably be expected to have a
Material Adverse Effect and (ii) none of the capital stock of Borrower has been
redeemed, retired, purchased or otherwise acquired for value by Borrower.

               SECTION 4.16. Accuracy and Completeness of Information.  All
data, reports, and information heretofore, contemporaneously, or hereafter
furnished by or on behalf of the Borrower in writing to the Lender or for
purposes of or in connection with this Agreement or any other Loan Document, or
any transaction contemplated hereby or thereby, are or will be true and accurate
in all material respects on the date as of which such data, reports, and
information are dated or certified and not incomplete by omitting to state any
material fact necessary to make such data, reports, and information not
misleading at such time.  There are no facts now known to the Borrower which
individually or in the aggregate would reasonably be expected to have a Material
Adverse Effect and which have not been specified herein, in the Financial
Statements, or in any certificate, opinion, or other written statement
previously furnished by the Borrower to the Lender.

    SECTION 5. COVENANTS OF THE BORROWER.

               SECTION 5.1.  Existence, etc.  The Borrower shall: (a) retain
its existence and its current yearly accounting cycle, (b) maintain in full
force and effect all licenses, bonds, franchises, leases, trademarks, patents,
contracts, and other rights necessary or desirable to the profitable conduct of
its business unless the failure to do so could not reasonably be expected to
have a Material Adverse Effect on the Borrower, (c) continue in, and limit its
operations to, the same general lines of business as those presently conducted
by it, and (d) comply with all applicable laws and regulations of any federal,
state, or local governmental authority, except for such laws and regulations the
violations of which would not, in the aggregate, have a Material Adverse Effect
on the Borrower.

                                       9.
<PAGE>

               SECTION 5.2.   Notice to the Lender. As soon as possible, and in
any event within five days after the Borrower learns of the following, the
Borrower will give written notice to the Lender of the following:

               (a)  any proceeding instituted or threatened to be instituted by
or against the Borrower in any federal, state, local, or foreign court or before
any commission or other regulatory body (federal, state, local, or foreign)
involving a sum, together with the sum involved in all other similar
proceedings, in excess of $50,000 in the aggregate,

               (b)  any contract that is terminated or amended and which has had
or could reasonably be expected to have a Material Adverse Effect on the
Borrower,

               (c)  the occurrence of any Material Adverse Change with respect
to the Borrower;

               (d)  the occurrence of any Event of Default or event or condition
which, with notice or lapse of time or both, would constitute an Event of
Default, together with a statement of the action which the Borrower has taken or
proposes to take with respect thereto;

               (e)  of any discovery or determination by Borrower that any
computer application (including those of its suppliers and vendors) that is
material to its business and operations will not be Year 2000 compliant on a
timely basis, except to the extent that such failure could not reasonably be
expected to have a Material Adverse Effect;

               (f)  of any material damage to, the destruction of or any other
material loss to any Collateral owned or used by Borrower other than any such
Collateral with a net book value (individually or in the aggregate) less than
$10,000 or any condemnation, confiscation or other taking, in whole or in part,
or any event that otherwise diminishes so as to render impracticable or
unreasonable the use of such Collateral owned or used by Borrower together with
the amount of the damage, destruction, loss or diminution in value;

               (g)  of any copyright registration made by it, any rights
Borrower may obtain to any copyrightable works, new trademarks or any new
patentable inventions, and of any renewal or extension of any trademark
registration, or if it shall otherwise become entitled to the benefit of any
patent or patent application or trademark or trademark application; and

               (h)  of the opening of any new bank account or other deposit
account, and any new securities account.

               SECTION 5.3.   Maintenance of Books and Records. Borrower shall
(i) maintain books and records (including computer records) pertaining to the
Collateral in such detail, form and scope as is customary for companies in
similar businesses in similar situations and (ii) provide the Lender and its
agents access to the premises of Borrower at any time and from time to time,
during normal business hours and upon reasonable notice under the circumstances,
and at any time on and after the occurrence and during the existence of an Event
of Default, or event or condition which, with notice or lapse of time or both,
would constitute an Event of Default, for the purposes of (A) inspecting and
verifying the Collateral, (B) inspecting and copying (at Borrower's expense) any
and all records pertaining thereto, and (C) discussing the affairs, finances and
business of Borrower with any officer, employee or director of Borrower or with
Borrower's accountants. Borrower shall reimburse the Lender for the reasonable
travel and related expenses of the Lender's employees or, at the Lender's
option, of such outside accountants or examiners as may be retained by the
Lender to verify or inspect Collateral,

                                      10.
<PAGE>

records or documents of Borrower on a regular basis or for a special inspection
if the Lender deems the same appropriate. If the Lender's own employees are
used, Borrower shall also pay therefor $600 per person per day (or such other
amount as shall represent the Lender's then current standard charge for the
same), or, if outside examiners or accountants are used, Borrower shall also pay
the Lender such reasonable sum as the Lender may be obligated to pay as fees
therefor.

               SECTION 5.4.   Insurance. Borrower shall maintain public
liability insurance, business interruption insurance, third party property
damage insurance and replacement value insurance on its assets (including the
Collateral) under such policies of insurance, with such insurance companies, in
such amounts and covering such risks as are at all times reasonably satisfactory
to the Lender in its commercially reasonable judgment, all of which policies
coveting the Collateral shall name the Lender as an additional insured and
lender loss payee in case of loss, and contain other provisions as the Lender
may reasonably require to protect fully the Lender's interest in the Collateral
and any payments to be made under such policies.

               SECTION 5.5.   Taxes. The Borrower will pay, when due, all taxes,
assessments, claims, and other charges ("Taxes") lawfully levied or assessed
against the Borrower or the Collateral other than taxes that are being
diligently contested in good faith by the Borrower by appropriate proceedings
promptly instituted and for which an adequate reserve is being maintained by the
Borrower in accordance with GAAP. If any Taxes remain unpaid after the date
fixed for the payment thereof, or if any lien shall be claimed therefor, then,
without notice to the Borrower, but on the Borrower's behalf, the Lender may pay
such Taxes, and the amount thereof shall be included in the Obligations.

               SECTION 5.6.   Borrower to Defend Collateral Against Claims; Fees
on Collateral. The Borrower will defend the Collateral against all claims and
demands of all Persons at any time claiming the same or any interest therein.
The Borrower will not permit any notice creating or otherwise relating to liens
on the Collateral or any portion thereof to exist or be on file in any public
office other than Permitted Liens. The Borrower shall promptly pay, when
payable, all transportation, storage, and warehousing charges and license fees,
registration fees, assessments, charges, permit fees, and taxes (municipal,
state, and federal) which may now or hereafter be imposed upon the ownership,
leasing, renting, possession, sale, or use of the Collateral, other than taxes
on or measured by the Lender's income and fees, assessments, charges, and taxes
which are being contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves are maintained to the
extent required by GAAP.

               SECTION 5.7.   Change of Location, Structure, or Identity. The
Borrower will give Lender at least 30 days prior written notice of any change of
Borrower's chief executive office or of the opening of any additional place of
business. The Borrower will not move or permit the movement of any item of
Collateral from the locations specified in the Schedule, except that the
Borrower keep Collateral at other locations within the United States provided
that the Borrower has delivered to the Lender (i) prior written notice thereof
and (ii) duly executed financing statements and other agreements and instruments
(all in form and substance satisfactory to the Lender) necessary or, in the
opinion of the Lender, desirable to perfect and maintain in favor of the Lender
a first priority security interest in the Collateral. Notwithstanding anything
to the contrary in the immediately preceding sentence, the Borrower may keep any
Collateral consisting of motor vehicles or rolling stock at any location in the
United States provided that the Lender's security interest in any such
Collateral is conspicuously marked on the certificate of title thereof and the
Borrower has complied with the provisions of Section 5.9.

               SECTION 5.8.   Use of Collateral; Licenses; Repair. The
Collateral shall be operated by competent, qualified personnel in connection
with the Borrower's business purposes,

                                      11.
<PAGE>

for the purpose for which the Collateral was designed and in accordance with
applicable operating instructions, laws, and government regulations, and the
Borrower shall use every reasonable precaution to prevent loss or damage to the
Collateral from fire and other hazards. The Borrower shall procure and maintain
in effect all orders, licenses, certificates, permits, approvals, and consents
required by federal, state, or local laws or by any governmental body, agency,
or authority in connection with the delivery, installation, use, and operation
of the Collateral.

               SECTION 5.9.   Further Assurances. The Borrower will, promptly
upon request by the Lender, execute and deliver or use its best efforts to
obtain any document required by the Lender (including, without limitation,
warehouseman or processor disclaimers, mortgagee waivers, landlord disclaimers,
or subordination agreements with respect to the Obligations and the Collateral),
give any notices, execute and file any financing statements, mortgages, or other
documents (all in form and substance satisfactory to the Lender), mark any
chattel paper, deliver any chattel paper or instruments to the Lender, and take
any other actions that are necessary or, in the opinion of the Lender, desirable
to perfect or continue the perfection and the first priority of the Lender's
security interest in the Collateral, to protect the Collateral against the
rights, claims, or interests of any Persons, or to effect the purposes of this
Agreement. The Borrower hereby authorizes the Lender to file one or more
financing or continuation statements, and amendments thereto, relating to all or
any part of the Collateral without the signature of the Borrower where permitted
by law. A carbon, photographic, or other reproduction of this Agreement or any
financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law. To the extent
required under this Agreement, the Borrower will pay all costs incurred in
connection with any of the foregoing.

               SECTION 5.10.  No Disposition of Collateral. The Borrower will
not in any way hypothecate or create or permit to exist any lien, security
interest, charge, or encumbrance on or other interest in any of the Collateral,
except for the lien and security interest granted hereby and Permitted Liens. In
the event the Collateral, or any part thereof, is sold, transferred, assigned,
exchanged, or otherwise disposed of in violation of this Agreement, the security
interest of the Lender shall continue in such Collateral or part thereof
notwithstanding such sale, transfer, assignment, exchange, or other disposition,
and the Borrower will hold the proceeds thereof in a separate account for the
benefit of the Lender. Following such a sale, the Borrower will transfer such
proceeds to the Lender in kind.

               SECTION 5.11.  No Limitation on Lender's Rights. The Borrower
will not enter into any contractual obligations which may restrict or inhibit
the Lender's rights or ability to sell or otherwise dispose of the Collateral or
any part thereof.

               SECTION 5.12.  Protection of Collateral. Upon notice to the
Borrower (provided that if an Event of Default has occurred and is continuing
the Lender need not give any notice), the Lender shall have the right at any
time to make any payments and do any other acts the Lender may deem necessary to
protect its security interests in the Collateral, including, without limitation,
the rights to satisfy, purchase, contest, or compromise any encumbrance, charge,
or lien which, in the reasonable judgment of the Lender, appears to be prior to
or superior to the security interests granted hereunder, and appear in, and
defend any action or proceeding purporting to affect its security interests in,
or the value of, any of the Collateral. The Borrower hereby agrees to reimburse
the Lender for all payments made and expenses incurred under this Agreement
including fees, expenses, and disbursements of attorneys and paralegals
(including the allocated costs of in-house counsel) acting for the Lender,
including any of the foregoing payments under, or acts taken to protect its
security interests in, any of the Collateral, which amounts shall be secured
under this Agreement, and agrees it shall be bound by any payment made or act
taken by the Lender hereunder absent the Lender's gross negligence or willful
misconduct. The Lender shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts.

                                      12.
<PAGE>

               SECTION 5.13.  Delivery of Items. The Borrower will (a) promptly
(but in no event later than one Business Day) after its receipt thereof, deliver
to the Lender any documents or certificates of title issued with respect to any
property included in the Collateral, and any promissory notes, letters of credit
or instruments related to or otherwise in connection with any property included
in the Collateral, which in any such case come into the possession of the
Borrower, or shall cause the issuer thereof to deliver any of the same directly
to the Lender, in each case with any necessary endorsements in favor of the
Lender and (b) deliver to the Lender as soon as available copies of any and all
press releases and other similar communications issued by the Borrower.

               SECTION 5.14.  Solvency.  The Borrower shall be and remain
Solvent at all times.

               SECTION 5.15.  Intellectual Property. Borrower shall do and cause
to be done all things necessary to preserve, maintain and keep in full force and
effect all of its registrations of trademarks, service marks and other marks,
trade names and other trade rights, patents, copyrights and other intellectual
property in accordance with prudent business practices, except to the extent
that the failure to preserve or maintain any of the foregoing would not
reasonably be expected to have a Material Adverse Effect. Without limiting the
generality of the foregoing, Borrower agrees Promptly, and in any event not
later than 30 days after the date hereof, to have any of its currently
unregistered copyrightable software, computer programs and other materials
registered with the U.S. Copyright Office in Washington, D.C. (the "Copyright
Office") and to promptly provide TBCC with evidence of such registration.
Borrower will, on an ongoing basis, promptly register any future unregistered
copyrightable software, computer programs and other materials with the Copyright
Office.

               SECTION 5.16.  Fundamental Changes. The Borrower shall not (a)
amend or modify its name, unless the Borrower delivers to the Lender thirty days
prior to any such proposed amendment or modification written notice of such
amendment or modification and within ten days before such amendment or
modification delivers executed Uniform Commercial Code financing statements (in
form and substance satisfactory to the Lender) or (b) merge or consolidate with
any other entity or make any material change in its capital structure, in each
case without the Lender's prior written consent which shall not be unreasonably
withheld.

               SECTION 5.17.  Contingent Obligations. Borrower will not,
directly or indirectly, incur, assume, or suffer to exist any Contingent
Obligation, excluding indemnities given in connection with this Agreement or the
other Loan Documents in favor of the Lender or in connection with the sale of
inventory or other asset dispositions permitted hereunder, except Contingent
Obligations and other similar third party credit support relating to obligations
of vendors and suppliers of Borrower in respect of transactions entered into in
the normal course of business, provided that the aggregate amount of any such
guarantees and other similar third party credit support shall not exceed
$100,000 at any time outstanding, and provided further that no Default or Event
of Default shall exist either immediately prior to or after giving effect to the
making of the foregoing guarantees or the entering into any third party credit
support transactions.

               SECTION 5.18.  Change in Nature of Business. Borrower will not at
any time make any material change in the lines of its business as carried on at
the date of this Agreement or enter into any new line of business; provided that
Borrower may enter businesses reasonably related or incidental to its current
lines of business.

               SECTION 5.19.  Sales of Assets. Borrower will not, directly or
indirectly, in any fiscal year, sell, transfer or otherwise dispose of any
assets, or grant any option or other right to purchase or otherwise acquire any
assets other than (i) equipment with an aggregate value of less

                                      13.
<PAGE>

than $25,000 the proceeds of which shall be paid to the Lender and applied to
the Obligations, (ii) sales of inventory in the ordinary course of business and
(iii) licenses or sublicenses on a non-exclusive basis of intellectual property
in the ordinary course of Borrower's business.

               SECTION 5.20.  Loans to Other Persons. Borrower will not at any
time make loans or advance any credit (except to trade debtors in the ordinary
course of business) to any Person in excess of $25,000 in the aggregate at any
time for all such loans, except that Borrower may make cashless advances of
credit to senior members of Borrower's management team to purchase restricted
stock of Borrower.

               SECTION 5.21.  Dividends, Stock Redemptions. Borrower will not,
directly or indirectly, pay any dividends or distributions on, purchase, redeem
or retire any shares of any class of its capital stock or any warrants, options
or rights to purchase any such capital stock, whether now or hereafter
outstanding ("Stock"), or make any payment on account of or set apart assets for
a sinking or other analogous fund for, the purchase, redemption, defeasance,
retirement or other acquisition of its Stock, or make any other distribution in
respect thereof, either directly or indirectly, whether in cash or property or
in obligations of Borrower, except for dividends paid solely in stock of the
Borrower and repurchases of stock owned by employees, directors and consultants
of Borrower pursuant to terms of employment, consulting or other stock
restrictions agreements at such time as any such employee, director or
consultant terminates his or her affiliations with the Borrower, provided that
no Default or Event of Default shall exist either immediately prior to or after
giving effect to such repurchase, and provided further that the total amount
paid in connection therewith by Borrower shall not exceed $50,000 in any
consecutive 12-month period.

               SECTION 5.22.  Investments in Other Persons. Borrower will not,
directly or indirectly, at any time make or hold any Investment in any Person
(whether in cash, securities or other property of any kind) other than
investments in Cash Equivalents.

               SECTION 5.23.  Acquisition of Stock or Assets. Borrower will not
acquire or commit or agree to acquire all or any stock, securities or assets of
any other Person other than inventory and equipment acquired in the ordinary
course of business.

               SECTION 5.24.  Partnerships; Subsidiaries; Joint Ventures;
Management Contracts. Borrower will not at any time create any direct or
indirect Subsidiary, enter into any joint venture or similar arrangement (other
than joint ventures or strategic partnerships consisting of non-exclusive
licensing of technology or the providing of technical support) or become a
partner in any general or limited partnership or enter into any management
contract (other than an employment contract for the employment of an officer or
employee entered into in the regular course of Borrower's business) permitting
third party management rights with respect to Borrower's business.

               SECTION 5.25.  Right of First Refusal. In connection with any
proposed line of credit hereafter to be obtained by Borrower, Borrower agrees
that the Lender shall have a right of first refusal to provide such financing to
Borrower. Accordingly, the Lender shall have the right (but not the obligation)
to make a financing proposal for a line of credit for Borrower upon receiving
notice from Borrower of Borrower's intent to obtain such financing. Borrower
shall provide the Lender with advance notice of its intent to obtain such
financing. Thereafter, Borrower shall afford the Lender the opportunity to make
a financing proposal to Borrower, which Borrower agrees to evaluate in Good
Faith. If the Lender and Borrower shall not mutually agree upon the terms and
conditions of such financing within 45 days following Borrower's receipt of
notice, Borrower may obtain such financing from alternative sources.

                                      14.
<PAGE>

               SECTION 5.26.  Limitation on Additional Debt. The Borrower shall
not incur additional indebtedness without the consent of the Lender.
Notwithstanding the foregoing, Borrower may incur indebtedness so long as such
indebtedness is only secured by specific items of equipment financed.
Notwithstanding the foregoing, Borrower may incur up to $2,000,000 in unsecured
indebtedness with Kirin Brewery so long as repayment does not occur during the
term of Lenders loan.

               SECTION 5.27.  Additional Requirements. The Borrower shall take
all such further actions and execute all such further documents and instruments
as the Lender may reasonably request.

               SECTION 6.     FINANCIAL STATEMENTS. Until the payment and
                              --------------------
satisfaction in full of all Obligations, the Borrower shall deliver to the
Lender the following financial information:

               SECTION 6.1.   Annual Financial Statements. As soon as available,
but not later than 90 days after the end of each fiscal year of the Borrower and
its consolidated subsidiaries, the consolidated balance sheet, income statement,
and statements of cash flows and shareholders equity for the Borrower and its
consolidated subsidiaries (the "Financial Statements") for such year, reported
on by independent certified public accountants without an adverse qualification;
and

               SECTION 6.2.   Quarterly Financial Statements. As soon as
available, but not later than 30 days after the end of each of the first three
fiscal quarters in any fiscal year of the Borrower and its consolidated
subsidiaries, the Financial Statements for such fiscal quarter, together with a
certification duly executed by a responsible officer of the Borrower that such
Financial Statements have been prepared in accordance with GAAP and are fairly
stated in all material respects (subject to normal year-end audit adjustments).

               SECTION 7.     EVENTS OF DEFAULT. The occurrence of any of the
                              -----------------
following events shall constitute an Event of Default hereunder:

                    (a) the Borrower shall fail to pay when due any principal,
interest, fee or other amount required to be paid by the Borrower under or in
connection with any Note and this Agreement;

                    (b) any representation or warranty made or deemed made by
the Borrower under or in connection with any Loan Document or any Financial
Statement shall prove to have been false or incorrect in any material respect
when made or deemed made;

                    (c) the Borrower shall fail to perform or observe (i) any of
the terms, covenants or agreements contained in Sections 5.4, 5.7, 5.10, 5.14 or
5.16 through 5.25 hereof or (ii) any other term, covenant, or agreement
contained in any Loan Document (other than the other Events of Default specified
in this Section 7) and such failure remains unremedied for the earlier of ten
days from (A) the date on which the Lender has given the Borrower written notice
of such failure and (B) the date on which the Borrower knew or should have known
of such failure;

                    (d) any defined "Event of Default" shall occur under any
other Loan Document; or Borrower or any Person shall deny or disaffirm its
obligations under any of the Loan Documents or any Liens granted in connection
therewith or shall otherwise challenge any of its obligations under any of the
Loan Documents; or any Liens granted in any of the Collateral shall be
determined to be void, voidable or invalid, are subordinated or are not given
the priority contemplated by this Agreement; or any Loan Document shall for any
reason cease to create a valid and perfected Lien on the Collateral purported to
be covered thereby, of first priority (except for Permitted Liens);

                                      15.
<PAGE>

                    (e) dissolution, liquidation, winding up, or cessation of
the Borrower's business, failure of the Borrower generally to pay its debts as
they mature, admission in writing by the Borrower of its inability generally to
pay its debts as they mature, or calling of a meeting of the Borrower's
creditors for purposes of compromising any of the Borrower's debts;

                    (f) the commencement by or against the Borrower of any
bankruptcy, insolvency, arrangement, reorganization, receivership, or similar
proceedings under any federal or state law and, in the case of any such
involuntary proceeding, such proceeding remains undismissed or unstayed for
thirty days following the commencement thereof, or any action by the Borrower is
taken authorizing any such proceedings;

                    (g) an assignment for the benefit of creditors is made by
the Borrower, whether voluntary or involuntary, the appointment of a trustee,
custodian, receiver, or similar official for the Borrower or for any substantial
property of the Borrower, or any action by the Borrower authorizing any such
proceeding;

                    (h) the Borrower shall default in (i) the payment of
principal or interest on any indebtedness in excess of $100,000 (other than the
Obligations) beyond the period of grace, if any, provided in the instrument or
agreement under which such indebtedness was created, and such payment default
has not been cured within any applicable grace period unless such default has
been waived by such Person; or (ii) the observance or performance of any other
agreement or condition relating to any such indebtedness or contained in any
instrument or agreement relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such indebtedness to cause, with
the giving of notice if required, such indebtedness to become due prior to its
stated maturity, and such default has not been cured within any applicable grace
period unless such default has been waived by such Person; or (iii) any loan or
other agreement under which the Borrower has received financing from
Transamerica Corporation or any of its affiliates;

                    (i) the Borrower suffers or sustains a Material Adverse
Change;

                    (j) any tax lien, other than a Permitted Lien, is filed of
record against the Borrower and is not bonded or discharged within five Business
Days;

                    (k) any judgment or order for the payment of money in excess
of $50,000 and not otherwise covered by applicable insurance shall be rendered
against the Borrower and such judgment or order shall not be stayed, vacated,
bonded, or discharged within thirty days;

                    (1) any material covenant, agreement, or obligation, as
determined in the sole discretion of the Lender, made by the Borrower and
contained in or evidenced by any of the Loan Documents shall cease to be
enforceable, or shall be determined to be unenforceable, in accordance with its
terms; the Borrower shall deny or disaffirm the Obligations under any of the
Loan Documents or any liens granted in connection therewith; or any liens
granted on any of the Collateral in favor of the Lender shall be determined to
be void, voidable, or invalid, or shall not be given the priority contemplated
by this Agreement; or

                    (n) there is a change in more than 35% of the ownership of
any equity interests of the Borrower on the date hereof or more than 35% of such
interests become subject to any contractual, judicial, or statutory lien,
charge, security interest, or encumbrance.

               SECTION 8.   REMEDIES. If any Event of Default shall have
occurred and be continuing:

                                      16.
<PAGE>

                    (a) The Lender may, without prejudice to any of its other
rights under any Loan Document or Applicable Law, declare all Obligations to be
immediately due and payable (except with respect to any Event of Default set
forth in Section 7(f) hereof, in which case all Obligations shall automatically
become immediately due and payable without necessity of any declaration) without
presentment, representation, demand of payment, or protest, which are hereby
expressly waived.

                    (b) The Lender may take possession of the Collateral and,
for that purpose may enter, with the aid and assistance of any person or
persons, any premises where the Collateral or any part hereof is, or may be
placed, and remove the same.

                    (c) The obligation of the Lender, if any, to make additional
Loans or financial accommodations of any kind to the Borrower shall immediately
terminate.

                    (d) The Lender may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein (or in any Loan
Document) or otherwise available to it, all the rights and remedies of a secured
party under the applicable Uniform Commercial Code (the "Code") whether or not
the Code applies to the affected Collateral and also may (i) require the
Borrower to, and the Borrower hereby agrees that it will at its expense and upon
request of the Lender forthwith, assemble all or part of the Collateral as
directed by the Lender and make it available to the Lender at a place to be
designated by the Lender that is reasonably convenient to both parties and (ii)
without notice except as specified below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the Lender's
offices or elsewhere, for cash, on credit, or for future delivery, and upon such
other terms as the Lender may deem commercially reasonable.

                    (e) The Lender may accelerate or extend the time of payment,
compromise, issue credits, or bring suit on all accounts receivable
("Receivables") and other Collateral (in the name of Borrower or the Lender) and
otherwise administer and collect the Receivables and other Collateral.

                    (f) The Lender may collect, receive, dispose of and realize
upon any investment property Collateral, including withdrawal of any and all
funds from any securities accounts.

                    (g) The Lender may (i) settle or adjust disputes or claims
directly with account debtors for amounts and upon terms which it considers
advisable, and (ii) notify account debtors on the Receivables and other
Collateral that the Receivables and Collateral have been assigned to the Lender,
and that payments in respect thereof shall be made directly to the Lender. If an
Event of Default has occurred and is continuing, Borrower hereby irrevocably
authorizes and appoints the Lender, or any Person the Lender may designate, as
its attorney-in-fact, at Borrower's sole cost and expense, to exercise, all of
the following powers, which are coupled with an interest and are irrevocable,
until all of the Obligations have been indefeasibly paid and satisfied in full
in cash: (A) to receive, take, endorse, sign, assign and deliver, all in the
name of the Lender or Borrower, any and all checks, notes, drafts, and other
documents or instruments relating to the Collateral; (B) to receive, open and
dispose of all mail addressed to Borrower and to notify postal authorities to
change the address for delivery thereof to such address as the Lender may
designate; and (C) to take or bring, in the name of the Lender or Borrower, all
steps, actions, suits or proceedings deemed by the Lender necessary or desirable
to enforce or effect collection of Receivables and other Collateral or file and
sign Borrower's name on a proof of claim in bankruptcy or similar document
against any obligor of Borrower.

                    (h) The Borrower agrees that, to the extent notice of sale
shall be required by law, at least ten days' notice to the Borrower of the time
and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Lender shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given.
The Lender may

                                      17.
<PAGE>

adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned. Borrower recognizes that the
Lender may be unable to make a public sale of any or all of any investment
property Collateral, by reason of prohibitions contained in applicable
securities laws or otherwise, and expressly agrees that a private sale to a
restricted group of purchasers for investment and not with a view to any
distribution thereof shall be considered a commercially reasonable sale.

                    (i) Unless expressly prohibited by any licensor thereof, the
Lender is hereby granted a license to use all computer software programs, data
bases, processes, trademarks, tradenames and materials used by Borrower in
connection with its businesses or in connection with the Collateral.

                    (j) All cash proceeds received by the Lender in respect of
any sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of the Lender, be held by the Lender as
collateral for, or then or at any time thereafter applied in whole or in part by
the Lender against, all or any part of the Obligations in such order as the
Lender shall elect. Any surplus of such cash or cash proceeds held by the Lender
and remaining after the full and final payment of all the Obligations shall be
paid over to the Borrower or to such other Person to which the Lender may be
required under applicable law, or directed by a court of competent jurisdiction,
to make payment of such surplus.

                     SECTION 9.  MISCELLANEOUS PROVISIONS.

               SECTION 9.1.   Notices. Except as otherwise provided herein, all
notices, approvals, consents, correspondence, or other communications required
or desired to be given hereunder shall be given in writing and shall be
delivered by overnight courier, hand delivery, or certified or registered mail,
postage prepaid, if to the Lender, then to at 76 Batterson Park Road,
Farmington, Connecticut 06032, with a copy to the Lender at Riverway II, West
Office Tower, 9399 West Higgins Road, Rosemont, Illinois 60018, and if to the
Borrower, then to 3005 First Avenue, Seattle, Washington, 98121, or such other
address as shall be designated by the Borrower or the Lender to the other party
in accordance herewith. All such notices and correspondence shall be effective
when received.

               SECTION 9.2.   Headings. The headings in this Agreement are for
purposes of reference only and shall not affect the meaning or construction of
any provision of this Agreement.

               SECTION 9.3.   Assignments and Participations. The Borrower shall
not have the right to assign any Note or this Agreement or any interest therein
unless the Lender shall have given the Borrower prior written consent and the
Borrower and its assignee shall have delivered assignment documentation in form
and substance satisfactory to the Lender in its sole discretion. The Lender may
assign (without the consent of Borrower) to one or more Persons all or a portion
of its rights and obligations under this Agreement and the other Loan Documents
(provided that such Person shall not be a direct or indirect competitor of the
Borrower). The Lender may sell participations in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of any Loans); provided, however, that the Lender's obligations
under this Agreement shall remain unchanged. The Lender may, in connection with
any permitted assignment or participation or proposed assignment or
participation pursuant to this Agreement, disclose to the assignee or
participant or proposed assignee or participant any information relating to
Borrower furnished to the Lender by or on behalf of Borrower.

               SECTION 9.4.   Amendments, Waivers, and Consents. Any amendment
or waiver of any provision of this Agreement and any consent to any departure by
the

                                      18.
<PAGE>

Borrower from any provision of this Agreement shall be effective only by a
writing signed by the Lender and shall bind and benefit the Borrower and the
Lender and their respective successors and assigns, subject, in the case of the
Borrower, to the first sentence of Section 9.3.

               SECTION 9.5.   Interpretation of Agreement. Time is of the
essence in each provision of this Agreement of which time is an element. All
terms not defined herein or in a Note shall have the meaning set forth in the
applicable Code, except where the context otherwise requires. To the extent a
term or provision of this Agreement conflicts with any Note, or any term or
provision thereof, and is not dealt with herein with more specificity, this
Agreement shall control with respect to the subject matter of such term or
provision. Acceptance of or acquiescence in a course of performance rendered
under this Agreement shall not be relevant in determining the meaning of this
Agreement even though the accepting or acquiescing party had knowledge of the
nature of the performance and opportunity for objection.

               SECTION 9.6.   Continuing Security Interest. This Agreement shall
create a continuing security interest in the Collateral and shall (i) remain in
full force and effect until the indefeasible payment in full of the Obligations,
(ii) be binding upon the Borrower and its successors and assigns and (iii)
inure, together with the rights and remedies of the Lender hereunder, to the
benefit of the Lender and its successors, transferees, and assigns.

               SECTION 9.7.   Reinstatement. To the extent permitted by law,
this Agreement and the rights and powers granted to the Lender hereunder and
under the Loan Documents shall continue to be effective or be reinstated if at
any time any amount received by the Lender in respect of the Obligations is
rescinded or must otherwise be restored or returned by the Lender upon the
insolvency, bankruptcy, dissolution, liquidation, or reorganization of the
Borrower or upon the appointment of any receiver, intervenor, conservator,
trustee, or similar official for the Borrower or any substantial part of its
assets, or otherwise, all as though such payments had not been made.

               SECTION 9.8.   Survival of Provisions. All representations,
warranties, and covenants of the Borrower contained herein shall survive the
execution and delivery of this Agreement, and shall terminate only upon the full
and final payment and performance by the Borrower of the Obligations secured
hereby.

               SECTION 9.9.   Indemnification. The Borrower agrees to indemnify
and hold harmless the Lender and its directors, officers, agents, employees, and
counsel from and against any and all costs, expenses, claims, or liability
incurred by the Lender or such Person hereunder and under any other Loan
Document or in connection herewith or therewith, unless such claim or liability
shall be due to willful misconduct or gross negligence on the part of the Lender
or such Person. In addition and without limiting the generality of the
foregoing, Borrower shall, upon demand, pay to the Lender all reasonable costs
and expenses incurred by the Lender (including the reasonable fees and
disbursements of counsel and other professionals) in connection with the
preparation, execution, delivery, administration, modification and amendment of
the Loan Documents, and pay to the Lender all reasonable costs and expenses
(including the reasonable fees and disbursements of counsel and other
professionals) paid or incurred by the Lender in order to enforce or defend any
of its rights under or in respect of this Agreement, any other Loan Document or
any other document or instrument now or hereafter executed and delivered in
connection herewith, collect the Obligations or otherwise administer this
Agreement, foreclose or otherwise realize upon the Collateral or any part
thereof, prosecute actions against, or defend actions by, account debtors;
commence, intervene in, or defend any action or proceeding; initiate any
complaint to be relieved of the automatic stay in bankruptcy; file or prosecute
any probate claim, bankruptcy claim, third-party claim, or other claim; examine,
audit, copy, and inspect any of the Collateral or any of Borrower's books and
records; protect, obtain possession of, lease, dispose of, or

                                      19.
<PAGE>

otherwise enforce the Lender's security interest in, the Collateral; and
otherwise represent the Lender in any litigation relating to Borrower.

               SECTION 9.10.  Counterparts; Signatures by Facsimile. This
Agreement may be executed in counterparts, each of which when so executed and
delivered shall be an original, but both of which shall together constitute one
and the same instrument. This Agreement and each of the other Loan Documents and
any notices given in connection herewith or therewith may be executed and
delivered by facsimile transmission all with the Same force and effect as if the
same was a fully executed and delivered original manual counterpart.

               SECTION 9.11.  Severability. In case any provision in or
obligation under this Agreement or any Note or any other Loan Document shall be
invalid, illegal, or unenforceable in any jurisdiction, the validity, legality,
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

               SECTION 9.12.  Delays; Partial Exercise of Remedies. No delay or
omission of the Lender to exercise any right or remedy hereunder, whether before
or after the happening of any Event of Default, shall impair any such right or
shall operate as a waiver thereof or as a waiver of any such Event of Default.
No single or partial exercise by the Lender of any right or remedy shall
preclude any other or further exercise thereof, or preclude any other right or
remedy.

               SECTION 9.13.  Entire Agreement. The Borrower and the Lender
agree that this Agreement, the Schedule hereto, and the Commitment Letter are
the complete and exclusive statement and agreement between the parties with
respect to the subject matter hereof, superseding all proposals and prior
agreements, oral or written, and all other communications between the parties
with respect to the subject matter hereof. Should there exist any inconsistency
between the terms of the Commitment Letter and this Agreement, the terms of this
Agreement shall prevail.

               SECTION 9.14.  Setoff. In addition to and not in limitation of
all rights of offset that the Lender may have under Applicable Law, and whether
or not the Lender has made any demand or the Obligations of the Borrower have
matured, the Lender shall have the right to appropriate and apply to the payment
of the Obligations of the Borrower all deposits and other obligations then or
thereafter owing by the Lender to or for the credit or the account of the
Borrower.

               SECTION 9.15.  Joint and Several Liability. If Borrower consists
of more than one Person, their liability shall be joint and several, and the
compromise of any claim with, or the release of, any Borrower shall not
constitute a compromise with, or a release of, any other Borrower.

               SECTION 9.16.  Maximum Rate. Notwithstanding anything to the
contrary contained elsewhere in this Agreement or in any other Loan Document,
the parties hereto hereby agree that all agreements between them under this
Agreement and the other Loan Documents, whether now existing or hereafter
arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever shall the amount paid, or agreed to be paid, to
the Lender for the use, forbearance, or detention of the money loaned to
Borrower and evidenced hereby or thereby or for the performance or payment of
any covenant or obligation contained herein or therein, exceed the maximum non-
usurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the Obligations, under
the laws of the State of Illinois (or the laws of any other jurisdiction whose
laws may be mandatorily applicable notwithstanding other provisions of this
Agreement and the other Loan Documents), or under applicable federal laws which
may presently or hereafter be in effect and which allow a higher maximum non-
usurious interest rate than under the laws of

                                      20.
<PAGE>

the State of Illinois (or such other jurisdiction), in any case after taking
into account, to the extent permitted by applicable law, any and all relevant
payments or charges under this Agreement and the other Loan Documents executed
in connection herewith, and any available exemptions, exceptions and exclusions
(the "Highest Lawful Rate"). If due to any circumstance whatsoever, fulfillment
of any provisions of this Agreement or any of the other Loan Documents at the
time performance of such provision shall be due shall exceed the Highest Lawful
Rate, then, automatically, the obligation to be fulfilled shall be modified or
reduced to the extent necessary to limit such interest to the Highest Lawful
Rate, and if from any such circumstance the Lender should ever receive anything
of value deemed interest by applicable law which would exceed the Highest Lawful
Rate, such excessive interest shall be applied to the reduction of the principal
amount then outstanding hereunder or on account of any other then outstanding
Obligations and not to the payment of interest, or if such excessive interest
exceeds the principal unpaid balance then outstanding hereunder and such other
then outstanding Obligations, such excess shall be refunded to Borrower. All
sums paid or agreed to be paid to the Lender for the use, forbearance, or
detention of the Obligations and other indebtedness of Borrower to the Lender
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such indebtedness, until
payment in full thereof, so that the actual rate of interest on account of all
such indebtedness does not exceed the Highest Lawful Rate throughout the entire
term of such indebtedness. The terms and provisions of this Section shall
control every other provision of this Agreement, the other Loan Documents and
all other agreements between the parties hereto.

               SECTION 9.17.  WAIVER OF JURY TRIAL. THE BORROWER AND THE LENDER
IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

               SECTION 9.18.  GOVERNING LAW. THE VALIDITY, INTERPRETATION, AND
ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAW PRINCIPLES THEREOF.

               SECTION 9.19.  Venue; Service of Process. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS SITUATED IN COOK COUNTY, OR OF
THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION
OF THE AFORESAID COURTS. THE BORROWER HEREBY IRREVOCABLY WAIVES, IN CONNECTION
WITH ANY SUCH ACTION OR PROCEEDING, (a) ANY OBJECTION, INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND (b) THE RIGHT TO
INTERPOSE ANY NONCOMPULSORY SETOFF, COUNTERCLAIM, OR CROSS-CLAIM. THE BORROWER
IRREVOCABLY' CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE ADDRESS
FOR IT SPECIFIED IN SECTION 9.1 HEREOF. NOTHING HEREIN SHALL AFFECT THE RIGHT OF
THE LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE

                                      21.
<PAGE>

PROCEED AGAINST THE BORROWER IN ANY OTHER JURISDICTION, SUBJECT IN EACH INSTANCE
TO THE PROVISIONS HEREOF WITH RESPECT TO RIGHTS AND REMEDIES.

                    IN WITNESS WHEREOF, the undersigned Borrower has caused this
Agreement to be duly executed and delivered by its proper and duly authorized
officer as of the date first set forth above.

                                   DENDREON CORPORATION

                                   By: /s/  Martin A. Simonetti
                                       -----------------------------
                                   Name:   Martin A. Simonetti
                                   Title:  CFO

Accepted as of the
____ day of July, 1999

TRANSAMERICA BUSINESS CREDIT CORPORATION

By: /s/ Gary P. Moro
    -------------------------------------
Name:   Gary P. Moro
Title:  Senior Vice President

                                      22.<PAGE>

                                                                   EXHIBIT 10.13

                                                               Customer No. 1080

                             AMENDED AND RESTATED
                            MASTER LEASE AGREEMENT

Lessor:   TRANSAMERICA BUSINESS CREDIT CORPORATION
          Riverway II
          West Office Tower
          West Higgins
          Rosemont, Illinois 60018

Lessee:   DENDREON CORPORATION
          3005 First Avenue
          Seattle, Washington 98121

     The lessor pursuant to this Master Lease Agreement ("Agreement") dated as
of December 11, 1997, as amended and restated as of May 28, 1999, is
Transamerica Business Credit Corporation ("Lessor"). All equipment, together
with all present and future additions, parts, accessories, attachments,
substitutions, repairs, improvements, and replacements thereof or thereto, which
are the subject of a Lease (as defined in the next sentence) shall be referred
to as "Equipment." Simultaneous with the execution and delivery of this
Agreement, the parties are entering into one or more Lease Schedules (each, a
"Schedule") which refer to and incorporate by reference this Agreement, each of
which constitutes a lease (each, a "Lease") for the Equipment specified therein.
Additional details pertaining to each Lease are specified in the applicable
Schedule. Each Schedule that the parties hereafter enter into shall constitute a
Lease. Except as set forth in Paragraph 1 below, Lessor has no obligation to
enter into any additional leases with, or extend any future financing to,
Lessee.

     1.   LEASE. Subject to and upon all of the terms and conditions of this
Agreement and each Schedule, Lessor hereby agrees to lease to Lessee and Lessee
hereby agrees to lease from Lessor the Equipment for the Term (as defined in
Paragraph 2 below) thereof. The timing and financial scope of Lessor's
obligation to enter into Leases hereunder are limited as set forth in the
Commitment Letters executed by Lessor and Lessee, dated as of October 2, 1997
and April 14, 1999 and attached hereto as Exhibits A and B (collectively the
"Commitment Letters").

     2.   TERM. Each Lease shall be effective and the term of each Lease
("Term") shall commence on the commencement date which shall not be prior to
delivery, acceptance and funding of the Equipment and shall be specified in the
applicable Schedule and, unless sooner terminated (as hereinafter provided),
shall expire at the end of the term specified in such Schedule; provided,
however, that obligations due to be performed by Lessee during the Term shall
continue until they have been performed in full. Schedules will only be executed
after the delivery of the Equipment to Lessee or upon completion of deliveries
of items of such Equipment with aggregate cost of not less than $50,000.

     3.   RENT. Lessee shall pay as rent to Lessor, for use of the Equipment
during the Term or Renewal Term (as defined in Paragraph 8), rental payments
equal to the sum of all

                                       1.
<PAGE>

rental payments including, without limitation, security deposits, advance rents,
and interim rents payable in the amounts and on the dates specified in the
applicable Schedule ("Rent"). If any Rent or other amount payable by Lessee is
not paid within five days after the day on which it becomes payable, Lessee will
pay on demand, as a late charge, an amount equal to 3% of such unpaid Rent or
other amount but only to the extent permitted by applicable law. All payments
provided for herein shall be payable to Lessor at its address specified above,
or at any other place designated by Lessor. The $5,000 Application Fee
previously paid by Lessee shall be applied pro rata toward the second month's
rent due under each Lease after deducting expenses under Paragraph 23.

     4.   LEASE NOT CANCELABLE; LESSEE'S OBLIGATIONS ABSOLUTE. No Lease may be
canceled or terminated except as expressly provided herein. So long as Lessor
has not wrongfully interfered with Lessee's quiet enjoyment of the Equipment,
Lessee's obligation to pay all Rent due or to become due hereunder shall be
absolute and unconditional and shall not be subject to any delay, reduction,
set-off, defense, counterclaim, or recoupment for any reason whatsoever,
including any failure of the Equipment or any representations by the
manufacturer or the vendor thereof. If the Equipment is unsatisfactory for any
reason, Lessee shall make any claim solely against the manufacturer or the
vendor thereof and shall, nevertheless, pay Lessor all Rent payable hereunder.

     5.   SELECTION AND USE OF EQUIPMENT. Lessee agrees that it shall be
responsible for the selection and use of, and results obtained from, the
Equipment and any other associated equipment or services.

     6.   WARRANTIES. LESSOR MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE DESIGN
OR CONDITION OF THE EQUIPMENT OR ITS MERCHANTABILITY, SUITABILITY, QUALITY, OR
FITNESS FOR A PARTICULAR PURPOSE, AND HEREBY DISCLAIMS ANY SUCH WARRANTY.
LESSEE-SPECIFICALLY WAIVES ALL RIGHTS TO MAKE A CLAIM AGAINST LESSOR FOR BREACH
OF ANY WARRANTY WHATSOEVER. LESSEE LEASES THE EQUIPMENT "AS IS." IN NO EVENT
SHALL LESSOR HAVE ANY LIABILITY, NOR SHALL LESSEE HAVE ANY REMEDY AGAINST
LESSOR, FOR ANY LIABILITY, CLAIM, LOSS, DAMAGE, OR EXPENSE CAUSED DIRECTLY OR
INDIRECTLY BY THE EQUIPMENT OR ANY DEFICIENCY OR DEFECT THEREOF OR THE
OPERATION, MAINTENANCE, OR REPAIR THEREOF OR ANY CONSEQUENTIAL DAMAGES AS THAT
TERM IS USED IN SECTION 2-719(3) OF THE MODEL UNIFORM COMMERCIAL CODE, AS
AMENDED FROM TIME TO TIME ("UCC"). Lessor grants to Lessee, for the sole purpose
of prosecuting a claim or otherwise receiving benefits under any warranty, the
benefits of any and all warranties made available by the manufacturer or the
veneer of the Equipment to the extent assignable.

     7.   DELIVERY. Lessor hereby appoints Lessee as Lessor's agent for the sole
and limited purpose of accepting delivery of the Equipment from each vendor
thereof. Lessee shall pay any and all delivery and installation charges. Lessor
shall not be liable to Lessee for any delay in, or failure of, delivery of the
Equipment.

                                       2.
<PAGE>

     8.   RENEWAL. So long as no Event of Default or event which, with the
giving of notice, the passage of time, or both, would constitute an Event of
Default, shall have occurred and be continuing, or the Lessee shall not have
exercised its purchase option under Paragraph 9 hereof, each Lease will
automatically renew for a term specified in the applicable Schedule (the
"Renewal Term") on the terms and conditions of this Agreement. or as set forth
in such Schedule; provided, however, that Obligations due to be performed by the
Lessee during the Renewal Term shall continue until they have been performed in
full.

     9.   PURCHASE OPTION. So long as no Event of Default or event which, with
the giving of notice, the passage of time, or both, would constitute an Event of
Default, shall have occurred and be continuing, Lessee may, upon written notice
to Lessor received at least one hundred eighty days before the expiration of a
Term, purchase all, but not less than all, the Equipment covered by the
applicable Lease on the date specified therefor in the applicable Schedule
("Purchase Date"). The purchase price for such Equipment shall be its fair
market value as set forth in the applicable Schedule determined on an "In-place,
In-use" basis, as mutually agreed by Lessor and Lessee, or, if they cannot
agree, as determined by an independent appraiser selected by Lessor and approved
by Lessee, which approval will not be unreasonably delayed or withheld. Lessee
shall pay the cost of any such appraisal. So long as no Event of Default or
event which, with the giving of notice, the passage of time, or both, would
constitute an Event of Default shall have occurred and be continuing, Lessee
may, upon written notice to Lessor received at least one hundred eighty days
prior to the expiration of the Renewal Term, purchase all, but not less than
all, the Equipment covered by the applicable Schedule by the last date of the
Renewal Term (the "Alternative Purchase Date") at a purchase price equal to its
then fair market value on an "In-place, In-use" basis. On the Purchase Date or
the Alternative Purchase Date, as the case may be, for any Equipment, Lessee
shall pay to Lessor the purchase price, together with all sales and other taxes
applicable to the transfer of the Equipment and any other amount payable and
arising hereunder, in immediately available funds, whereupon Lessor shall
transfer to Lessee, without recourse or warranty of any kind, express or
implied, all of Lessor's right, title, and interest in and to-such Equipment on
an "As Is, Where Is" basis and file a UCC-3 termination statement.

     10.  OWNERSHIP; INSPECTION; MARKING; FINANCING STATEMENTS. Except for
tenant improvements, Lessee shall affix to the Equipment any labels supplied by
Lessor indicating ownership of such Equipment. The Equipment is and shall be the
sole property of Lessor. Lessee shall have no right, title, or interest therein,
except as lessee under a Lease. The Equipment is and shall at all times be and
remain personal property and shall not become a fixture. Lessee shall obtain and
record such instruments and take such steps as may be necessary to prevent any
person from acquiring any rights in the Equipment by reason of the Equipment
being claimed or deemed to be real property. Upon request by Lessor, Lessee
shall obtain and deliver to Lessor valid and effective waivers, in recordable
form, by the owners, landlords, and mortgagees of the real property upon which
the Equipment is located or certificates of Lessee that it is the owner of such
real property or that such real property is neither leased nor mortgaged. Lessee
shall make the Equipment and its maintenance records available for inspection by
Lessor at reasonable times and upon reasonable notice. Lessee shall execute and
deliver to Lessor for filing any UCC financing statements or similar documents
Lessor may reasonably request.

                                       3.
<PAGE>

     11.  EQUIPMENT USE. Lessee agrees that the Equipment will be operated by
competent, qualified personnel in connection with Lessee's business for the
purpose for which the Equipment was designed and in accordance with applicable
operating instructions, laws, and government regulations, and that Lessee shall
use all reasonable precautions to prevent loss or damage to the Equipment from
fire and other hazards. Lessee shall procure and maintain in effect all orders,
licenses, certificates, permits, approvals, and consents required by federal,
state, or local laws or by any governmental body, agency, or authority in
connection with the delivery, installation, use, and operation of the Equipment.

     12.  MAINTENANCE. Lessee, at its sole cost and expense, shall keep the
Equipment in a suitable, environment as specified by the manufacturer's
guidelines or the equivalent, shall meet all recertification requirements, and
shall maintain the Equipment in its original condition and working order,
ordinary wear and tear excepted. At the reasonable request of Lessor, Lessee
shall furnish all proof of maintenance.

     13.  ALTERATION; MODIFICATIONS; PARTS. Lessee may alter or modify the
Equipment only with the prior written consent of Lessor. Any alteration shall be
removed and the Equipment restored to its normal, unaltered condition at
Lessee's expense (without damaging the Equipment's originally intended function
or its value) prior to its return to Lessor. Any part installed in connection
with warranty or maintenance service or which cannot be removed in accordance
with the preceding sentence shall be the property of Lessor.

     14.  RETURN OF EQUIPMENT. Except for Equipment that has suffered a Casualty
Loss (as defined in Paragraph 15 below) and is not required to be repaired
pursuant to Paragraph 15 below or Equipment purchased by Lessee pursuant to
Paragraph 9 above, upon the expiration of the Renewal Term of a Lease, or upon
demand by Lessor pursuant to Paragraph 22 below, Lessee shall contact Lessor for
shipping instructions and, at Lessee's own risk, immediately return the
Equipment, freight prepaid, to a location in the continental United States
specified by Lessor. At the time of such return to Lessor, the Equipment shall
(i) be in the operating order, repair, and condition as required by or specified
in the original specifications and warranties of each manufacturer and vendor
thereof, ordinary wear and tear excepted, (ii) meet all recertification
requirements, and (iii) be capable of being promptly assembled and operated by a
third party purchaser or third party lessee without further repair, replacement,
alterations, or improvements, and in accordance and compliance with any and all
statutes, laws, ordinances, roles, and regulations of any governmental authority
or any political subdivision thereof applicable to the use and operation of the
Equipment. Except as otherwise provided under Paragraph 9 hereof, at least sixty
days before the expiration of the Renewal Term, Lessee shall give Lessor notice
of its intent to return the Equipment at the end of such Renewal Term. During
the sixty-day period prior to the end of a Term or the Renewal Term, Lessor and
its prospective purchasers or lessees shall have, upon not less than two
business days' prior notice to Lessee and during normal business hours, or at
any time and without prior notice upon the occurrence and continuance of an
Event of Default, the right of access to the premises on which the Equipment is
located to inspect the Equipment, and Lessee shall cooperate in all other
respects with Lessor's remarketing of the Equipment. The provisions of this
Paragraph 14 are of the essence of the Lease, and upon application to any court
of equity having jurisdiction in the premises, Lessor shall be entitled to a
decree against Lessee requiring specific performance of the covenants of Lessee
set forth in this Paragraph 14. If Lessee fails to return the Equipment

                                       4.
<PAGE>

when required, the terms and conditions of the Lease shall continue to be
applicable and Lessee shall continue to pay Rent until the Equipment is received
by Lessor.

     15.  CASUALTY INSURANCE; LOSS OR DAMAGE. Lessee will maintain, at its own
expense, liability and property damage insurance relating to the Equipment,
insuring against such risks as are customarily insured against on the type of
equipment leased hereunder by businesses in which Lessee is engaged in such
amounts, in such form, and with insurers satisfactory to Lessor; provided,
however, that the amount of insurance against damage or loss shall not be less
than the greater of (a) the replacement value of the Equipment and (b) the
stipulated loss value of the Equipment specified in the applicable Schedule
("Stipulated Loss Value"). Each liability insurance policy shall provide
coverage (including, without limitation, personal injury coverage) of not less
than $1,000,000 for each occurrence, and shall name Lessor as an additional
insured; and each property damage policy shall name Lessor as sole loss payee
and all policies shall contain a clause requiring the insurer to give Lessor at
least thirty days' prior written notice of any alteration in the terms or
cancellation of the policy. Lessee shall furnish to Lessor a copy of each
insurance policy (with endorsements) or other evidence satisfactory to Lessor
that the required insurance coverage is in effect; provided, however, Lessor
shall have no duty to ascertain the existence of or to examine the insurance
policies to advise Lessee if the insurance coverage does not comply with the
requirements of this Paragraph. If Lessee fails to insure the Equipment as
required, Lessor shall have the right but not the obligation to obtain such
insurance, and the cost of the insurance shall be for the account of Lessee due
as part of the next due Rent. Lessee consents to Lessor's release, upon its
failure to obtain appropriate insurance coverage, of any and all information
necessary to obtain insurance with respect to the Equipment or Lessor's interest
therein.

     Until the Equipment is returned to and received by Lessor as provided in
Paragraph 14 above, Lessee shall bear the entire risk of theft or destruction
of, or damage to, the Equipment including, without limitation, any condemnation,
seizure, or requisition of title or use ("Casualty Loss"). No Casualty Loss
shall relieve Lessee from its obligations to pay Rent except as provided in
clause (b) below. When any Casualty Loss occurs, Lessee shall immediately notify
Lessor and, at the option of Lessor, shall promptly (a) place such Equipment in
good repair and working order; or (b) pay Lessor an amount equal to the
Stipulated Loss Value of such Equipment and all other amounts (excluding Rent)
payable by Lessee hereunder, together with a late charge on such amounts at a
rate per annum equal to the rate imputed in the Rent payments hereunder (as
reasonably determined by Lessor) from the date of the Casualty Loss through the
date of payment of such amounts, whereupon Lessor shall transfer to Lessee,
without recourse or warranty (express or implied), all of Lessor's interest, if
any, in and to such Equipment on an- "AS IS, WHERE IS" basis. The proceeds of
any insurance payable with respect to the Equipment shall be applied, at the
option of Lessee, either towards (i) repair of the Equipment or (ii) payment of
any of Lessee's obligations hereunder. Lessee hereby appoints Lessor as Lessee's
attorney-in--fact to make claim for, receive payment of, and execute and endorse
all documents, checks or drafts issued with respect to any Casualty Loss under
any insurance policy relating to the Equipment.

     16.  TAXES. Lessee shall pay when due (subject to Lessee's right to contest
in good faith), and indemnify and hold Lessor harmless from, all sales, use,
excise, and other taxes, charges, and fees (including, without limitation,
income, franchise, business and occupation,

                                       5.
<PAGE>

gross receipts, licensing, registration, titling, personal property, stamp and
interest equalization taxes, levies, imposts, duties, charges, or withholdings
of any nature), and any fines, penalties, or interest thereon, imposed or levied
by any governmental body, agency, or tax authority upon or in connection with
the Equipment, its purchase, ownership, delivery, leasing, possession, use, or
relocation of the Equipment or otherwise in connection with the transactions
contemplated by each Lease or the Rent thereunder, excluding taxes on or
measured by the net income of Lessor. Upon request, Lessee will provide proof of
payment. Unless Lessor elects otherwise, Lessor will pay all property taxes on
the Equipment for which Lessee shall reimburse Lessor promptly upon request.
Lessee shall timely prepare and file all reports and returns which are required
to be made with respect to any obligation of Lessee under this Paragraph 16.
Lessee shall, to the extent permitted by law, cause all billings of such fees,
taxes, levies, imposts, duties, withholdings, and governmental charges to be
made to Lessor in care of Lessee. Upon request, Lessee will provide Lessor with
copies of all such billings.

     17.  LESSOR'S PAYMENT. If Lessee fails to perform its obligations under
Paragraph 15 or 16 above, or Paragraph 23 below, Lessor shall have the right to
substitute performance, in which case Lessee shall immediately reimburse Lessor
therefor.

     18.  GENERAL INDEMNITY. Each Lease is a net lease. Therefore, Lessee shall
indemnify Lessor and its successors and assigns against, and hold Lessor and its
successors and assigns harmless from, any and all claims, actions, damages,
obligations, liabilities, and all costs and expenses, including, without
limitation, legal fees incurred by Lessor or its successors and assigns arising
out of each Lease including, without limitation, the purchase, ownership,
delivery, lease, possession, maintenance, condition, use, or return of the
Equipment, or arising by operation of law, except that Lessee shall not be
liable for any claims, actions, damages, obligations, and costs and expenses
determined to have occurred as a result of the gross negligence or willful
misconduct of Lessor or its successors and assigns. Lessee agrees that upon
written notice by Lessor of the assertion of any claim, action, damage,
obligation, liability, or lien, Lessee shall assume full responsibility for the
defense thereof, provided that Lessor's failure to give such notice shall not
limit or otherwise affect its rights hereunder. Any payment pursuant to this
Paragraph (except for any payment of Rent) shall be of such amount as shall be
necessary so that, after payment of any taxes required to be paid thereon by
Lessor, including taxes on or measured by the net income of Lessor, the balance
will equal the amount due hereunder. The provisions of this Paragraph with
regard to matters arising during a Lease shall survive the expiration or
termination of such Lease.

     19.  ASSIGNMENT BY LESSEE. Lessee shall not, without the prior written
consent of Lessor, (a) assign, transfer, pledge, or otherwise dispose of any
Lease or Equipment, or any interest therein; (b) sublease or lend any Equipment
or permit it to be used by anyone other than Lessee and its employees; or (c)
move any Equipment from the location specified for it in the applicable
Schedule, except that Lessee may move Equipment to another location within the
United States provided that Lessee has delivered to Lessor (A) prior written
notice thereof and (B) duly executed financing statements and other agreements
and instruments (all in form and substance satisfactory to Lessor) necessary or,
in the opinion of the Lessor, desirable to protect Lessor's interest in such
Equipment. Notwithstanding anything to the contrary in the immediately preceding
sentence, Lessee may keep any Equipment consisting of motor vehicles or rolling
stock at any location in the United States.

                                       6.
<PAGE>

     20.  ASSIGNMENT BY LESSOR. Lessor may assign its interest or grant a
security interest in any Lease and the Equipment individually or together, in
whole or in part. If Lessee is given written notice of any such assignment, it
shall immediately make all payments of Rent and other amounts hereunder directly
to such assignee. Each such assignee shall have all of the rights of Lessor
under each Lease assigned to it. Lessee shall not. assert against any such
assignee any set-off, defense, or counterclaim that Lessee may have against
Lessor or any other person. Notwithstanding any assignment by Lessor, Lessor
shall not be relieved of its obligations under any Lease, but in no event shall
Lessor be liable for any act or omission of its assignee.

     21.  DEFAULT; NO WAIVER. Lessee or any guarantor of any or all of the
obligations of Lessee hereunder (together with Lessee, the "Lease Parties")
shall be in default under each Lease upon the occurrence of any of the following
events (each, an "Event of Default"): (a) Lessee fails to pay within five days
of when due any amount required to be paid by Lessee under or in connection with
any Lease; (b) any of the Lease Parties fails to perform in any material respect
any other provision under or in connection with a Lease or violates in any
material respect any of the covenants or agreements of such Lease Party under or
in connection with a Lease and such breach is not cured within 10 days after
notice thereof or after Lessee has actual knowledge thereof; (c) any
representation made or financial information delivered or furnished by any of
the Lease Parties under or in connection with a Lease shall prove to have been
inaccurate in any material respect when made; (d) any of the Lease Parties makes
an assignment for the benefit of creditors, whether voluntary or involuntary, or
consents to the appointment of a trustee or receiver, or if either shall be
appointed for any of the Lease Parties or for a substantial part of its property
without its consent and, in the case of any such involuntary proceeding, such
proceeding remains undismissed or unstayed for forty-five days following the
commencement thereof; (e) any petition or proceeding is filed by or against any
of the Lease Parties under any Federal or State bankruptcy or insolvency code or
similar law and, in the case of any such involuntary petition or proceeding,
such petition or proceeding remains undismissed or unstayed for forty-five days
following the filing or commencement thereof, or any of the Lease Parties takes
any action authorizing any such petition or proceeding; (f) any of the Lease
Parties fails to pay when due any indebtedness for borrowed money or under
conditional sales or installment sales contracts or similar agreements, leases,
or obligations evidenced by bonds, debentures, notes, or other similar
agreements or instruments to any creditor (including Lessor under any other
agreement) in an amount in excess of $100,000 after any and all applicable cure
periods therefor shall have elapsed; (g) any judgment shall be rendered against
any of the Lease Parties which shall remain unpaid or unstayed for a period of
sixty days; (h) any of the Lease Parties shall dissolve, liquidate, wind up or
cease its business, sell or otherwise dispose of all or substantially all of its
assets, or make any material change in its lines of business; (i) any of the
Lease Parties shall amend or modify its name, unless such Lease Party delivers
to Lessor, thirty days prior to any such proposed amendment or modification,
written notice of such amendment or modification and within ten days before such
amendment or modification delivers executed financing statements (in form and
substance satisfactory to the Lessor), provided that Lessee shall have 10
business days after notice to cure any default under this subparagraph (i); (j)
any of the Lease Parties shall merge or consolidate with any other entity or
make any material change in its capital structure, in each case without Lessor's
prior written consent, which shall not be unreasonably withheld; (k) any of the
Lease Parties shall suffer any loss or suspension of any material license,
permit or other right or asset necessary to the profitable conduct of its
business,

                                       7.
<PAGE>

fail generally to pay its debts as they mature, or call a meeting for purposes
of compromising its debts; (1) any of the Lease Parties shall deny or disaffirm
its obligations hereunder or under any of the documents delivered in connection
herewith; (m) there is a change, which change results from a single transaction
or series of related transactions, but not from the sale of newly issued
securities to investors, in more than 35% of the ownership of any equity
interests of any of the Lease Parties on the date hereof or more than 35% of
such interests become subject to any contractual, judicial or statutory lien,
charge, security interest, or encumbrance; or (n) any of the Lease Parties
suffers a material adverse change in the business, prospects, operations,
results of operations, assets, liabilities, or condition (financial or
otherwise).

     22.  REMEDIES. Upon the occurrence and continuation of an Event of Default,
Lessor shall have the right, in its sole discretion, to exercise any one or more
of the following remedies: (a) terminate each Lease; (b) declare any and all
Rent and other amounts then due and any and all Rent and other amounts to become
due under each Lease (collectively, the "Lease Obligations") immediately due and
payable; (c) take possession of any or all items of Equipment, wherever located,
without demand, notice, court order, or other process of law, and without
liability for entry to Lessee's premises, for damage to Lessee's property, or
otherwise; (d) demand that Lessee immediately return any or all Equipment to
Lessor in accordance with Paragraph 14 above, and, for each day that Lessee
shall fail to return any item of Equipment, Lessor may demand an amount equal to
the Rent payable for such Equipment in accordance with Paragraph 14 above; (e)
lease, sell, or otherwise dispose of the Equipment in a commercially reasonable
manner, with or without notice and on public or private bid; (f) recover the
following..-amounts from the Lessee (as damages, including reimbursement of
costs and expenses, liquidated for all purposes and not as a penalty): (i) all
costs and expenses of Lessor reimbursable to it hereunder, including, without
limitation, expenses of disposition of the Equipment, legal fees, and all other
amounts specified in Paragraph 23 below; (ii) an amount equal to the sum of (A)
any accrued and unpaid Rent through the later of (1) the date of the applicable
default, (2) the date that Lessor has obtained possession of the Equipment, or
(3) such other date as Lessee has made an effective tender of possession of the
Equipment to Lessor (the "Default Date") and (B) if Lessor resells or re-lets
the Equipment, Rent at the periodic rate provided for in each Lease for the
additional period that it takes Lessor to resell or re-let all of the Equipment;
(iii) the present value of all future Rent reserved in the Leases and contracted
to be paid over the unexpired Term of the Leases discounted at seven percent
compound interest; (iv) the reversionary value of the Equipment as of the
expiration of the Term of the applicable Lease as set forth on the applicable
Schedule discounted at seven percent compound interest; and (v) any indebtedness
for Lessee's indemnity under Paragraph 18 above, plus a late charge at the rate
specified in Paragraph 3 above, less the amount received by Lessor, if any, upon
sale or re-let of the Equipment; and (g) exercise any other right or remedy to
recover damages or enforce the terms of the Leases. Upon the occurrence and
continuance of an Event of Default, or an event which with the giving of notice
or the passage of time, or both, would result in an Event of Default, Lessor
shall have the right, whether or not Lessor has made any demand or the
obligations of Lessee hereunder have matured, to appropriate and apply to the
payment of the obligations of Lessee hereunder all security deposits and other
deposits (general or special, time or demand, provisional or final) now or
hereafter held by and other indebtedness or property now or hereafter owing by
Lessor to Lessee. Lessor may pursue any other rights or remedies available at
law or in equity, including, without limitation, rights or remedies seeking
damages, specific-performance, and injunctive relief. Any failure of Lessor to
require strict performance

                                       8.
<PAGE>

by Lessee, or any waiver by Lessor of any provision hereunder or under any
Schedule, shall not be construed as a consent or waiver of any other breach of
the same or of any other provision. Any amendment or waiver of any provision
hereof or under any Schedule or consent to any departure by Lessee herefrom or
therefrom shall be in writing and signed by Lessor.

     No right or remedy is exclusive of any other provided herein or permitted
by law or equity. All such rights and remedies shall be cumulative and may be
enforced concurrently or individually from time to time.

     23.  LESSOR'S EXPENSE. Lessee shall pay Lessor on demand all costs and
expenses (including reasonable legal fees and expenses) incurred in connection
with the preparation, execution and delivery of this Agreement and any other
agreements and transactions contemplated hereby, which expenses shall not exceed
$3,500 without the written consent of Lessee and all costs and expenses in
protecting and enforcing Lessor's rights and interests in each Lease and the
equipment, including, without limitation, legal, collection, and remarketing
fees and expenses incurred by Lessor in enforcing the terms, conditions, or
provisions of each Lease or upon the occurrence and continuation of an Event of
Default.

     24.  LESSEE'S WAIVERS. To the extent permitted by applicable law, Lessee
hereby waives any and all rights and remedies conferred upon a lessee by
Sections 2A-508 through 2A-522 of the UCC. To the extent permitted by applicable
law, Lessee also hereby waives any rights now or hereafter conferred by statute
or otherwise which may require Lessor to sell, lease, or otherwise use any
Equipment in mitigation of Lessor's damages as set forth in Paragraph 22 above
or which may otherwise limit or modify any of Lessor's rights or remedies under
Paragraph 22, except that Lessee shall have the right to require Lessor to
convey to Lessee, without representation, warranty or recourse, all of Lessor's
rights, title and interest in and to the Equipment upon Lessor's receipt,
following an event of default and the exercise of the Lessor's remedies, of the
amounts specified in Paragraph 22(f).

     25.  NOTICES; ADMINISTRATION. Except as otherwise provided herein, all
notices, approvals, consents, correspondence, or other communications required
or desired to be given hereunder shall be given in writing and shall be
delivered by overnight courier, hand delivery, or certified or registered mail,
postage prepaid, if to Lessor, then to Transamerica Technology Finance Division,
76 Batterson Park Road, Farmington, Connecticut 06032, Attention: Assistant Vice
President, Lease Administration, with a copy to Lessor at Riverway II, West
Office Tower, 9399 West Higgins Road, Rosemont, Illinois 60018, Attention: Legal
Department, if to Lessee, then to Dendreon Corporation, 3005 First Avenue,
Seattle, Washington, 98121, Attention: Chief Financial Officer or such other
address as shall be designated by Lessee or Lessor to the other party. All such-
notices and correspondence shall be effective when received.

     26.  REPRESENTATIONS. Lessee represents and warrants to Lessor that (a)
Lessee is duly organized, validly existing, and in good standing under the laws
of the State of its incorporation; (b) the execution, delivery, and performance
by Lessee of this Agreement are within Lessee's powers, have been duly
authorized by all necessary action, and do not and will not contravene (i)
Lessee's organizational documents or (ii) any law, regulation, rule, or
contractual restriction binding on or affecting Lessee; (c) no authorization or
approval or other

                                       9.
<PAGE>

action by, and no notice to or fling with, any governmental authority or
regulatory body is required for the due execution, delivery, and performance by
Lessee of this Agreement; (d) each Lease constitutes the legal, valid, and
binding obligations of Lessee enforceable against Lessee in accordance with its
terms; (e) to Lessee's knowledge, the cost of each item of Equipment does not
exceed the fair and usual price for such type of equipment purchased in like
quantity and reflects all discounts, rebates, and allowances for the Equipment
(including, without limitation, discounts for advertising, prompt payment,
testing, or other services) given to the Lessee by the manufacturer, supplier,
or any other person; and (f) all information supplied by Lessee to Lessor in
connection herewith is correct and does not omit any material statement
necessary to insure that the information supplied is not misleading.

     27.  FURTHER ASSURANCES. Lessee, upon the request of Lessor, will execute,
acknowledge, record, or file, as the case may be, such further documents and do
such further acts as may be reasonably necessary, desirable, or proper to carry
out more effectively the purposes of this Agreement. Lessee hereby appoints
Lessor as its attorney-in-fact to execute on behalf of Lessee and authorizes
Lessor to file without Lessee's signature any UCC financing statements and
amendments Lessor deems advisable.

     28.  FINANCIAL STATEMENTS. Lessee shall deliver to Lessor: (a) as soon as
available, but not later than 120 days after the end of each fiscal year of
Lessee and its consolidated subsidiaries, the consolidated balance sheet, income
statement, and statements of cash flows and shareholders equity for Lessee and
its consolidated subsidiaries (the "Financial Statements") for such year,
reported on by independent certified public accountants without an adverse
qualification; and (b) as soon as available, but not later than 60 days after
the end of each of the first three fiscal quarters in any fiscal year of Lessee
and its consolidated subsidiaries, the Financial Statements for such fiscal
quarter, together with a certification duly executed by a responsible officer of
Lessee that such Financial Statements have been prepared in accordance with
generally accepted accounting principles and are fairly stated in all material
respects (subject to normal year-end audit adjustments). Lessee shall also
deliver to Lessor as soon as available copies of all press releases and other
similar communications issued by Lessee.

     29.  CONSENT TO JURISDICTION. Lessee irrevocably submits to the
jurisdiction of any Illinois state or federal court sitting in Illinois for any
action or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby, and Lessee irrevocably agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
Illinois state or federal court.

     30.  WAIVER OF JURY TRIAL. LESSEE AND LESSOR IRREVOCABLY WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACIIONS CONTEMPLATED HEREBY.

     31.  FINANCE LEASE. Lessee and Lessor agree that each Lease is a "Finance
Lease" as defined by Section 2A-103(g) of the UCC. Lessee acknowledges that
Lessee has reviewed and approved each written Supply Contract (as defined by UCC
2A-103(y)) covering Equipment purchased from each "Supplier" (as defined by UCC
2A-103(x)) thereof.

                                      10.
<PAGE>

     32.  NO AGENCY. Lessee acknowledges and agrees that neither the
manufacturer or supplier, nor any salesman, representative, or other agent of
the manufacturer or supplier, is an agent of Lessor. No salesman,
representative, or agent of the manufacturer or supplier is authorized to waive
or alter any term or condition of this Agreement or any Schedule and no
representation as to the Equipment or any other matter by the manufacturer or
supplier shall in any way affect Lessee's duty to pay Rent and perform its other
obligations as set forth in this Agreement or any Schedule.

     33.  SPECIAL TAX INDEMNIFICATION. Lessee acknowledges that Lessor, in
determining the Rent due hereunder, has assumed that certain tax benefits as are
provided to an owner of property under the Internal Revenue Code of 1986, as
amended (the "Code"), and under applicable state tax law, including, without
limitation, depreciation deductions under Section 168(b) of the Code, and
deductions under Section 163 of the Code in an amount at least equal to the
amount of interest paid or accrued by Lessor with respect to any indebtedness
incurred by Lessor in financing its purchase of the Equipment, are available to
Lessor as a result of the lease of the Equipment. In the event Lessor is unable
to obtain such tax benefits as a result of an act or omission of Lessee, is
required to include in income any amount other than the Rent, or is required to
recognize income in respect of the Rent earlier than anticipated pursuant to
this Agreement, Lessee shall pay Lessor additional rent ("Additional Rent") in a
lump sum in an amount needed to provide Lessor with the same after-tax yield and
after-tax cash flow as would have been realized by Lessor had Lessor (i) been
able to obtain such tax benefits, (ii) not been required to include any amount
in income other than the Rent, and (iii) not been required to recognize income
in respect of the Rent earlier than anticipated pursuant to this Agreement. The
Additional Rent shall be computed by Lessor, which computation shall be binding
on Lessee. The Additional Rent shall be due immediately upon written notice by
Lessor to Lessee of Lessor's inability to obtain tax benefits, the inclusion of
any amount in income other than the Rent or the recognition of income in respect
of the Rent earlier than anticipated pursuant to this Agreement. The provisions
of this Paragraph 33 shall survive the termination of this Agreement.

     34.  GOVERNING LAW; SEVERABILITY. EACH LEASE SHALL BE GOVERNED BY THE LAWS
OF THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES
THEREOF. IF ANY PROVISION SHALL BE HELD TO BE INVALID OR UNENFORCEABLE, THE
VALIDITY AND ENFORCEABILITY OF THE REMAINING PROVISIONS SHALL NOT IN ANY WAY BE
AFFECTED OR IMPAIRED.

     LESSEE ACKNOWLEDGES THAT LESSEE HAS READ THIS AGREEMENT AND THE SCHEDULE
HERETO, UNDERSTANDS THEM, AND AGREES TO BE BOUND BY THEIR TERMS AND CONDITIONS.
FURTHER, LESSEE AND LESSOR AGREE THAT THIS AGREEMENT, THE SCHEDULES DELIVERED
AND SIGNED BY LESSEE IN CONNECTION HEREWITH FROM TIME TO TIME, AND THE
COMMITMENT LETTER ARE THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT
BETWEEN THE PARTIES, SUPERSEDING ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR
WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE
SUBJECT MATTER HEREOF. SHOULD THERE EXIST ANY INCONSISTENCY BETWEEN THE TERMS OF
THE COMMITMENT LETTER AND THIS AGREEMENT, THE TERMS OF THIS AGREEMENT SHALL
PREVAIL.

                                      11.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be duly executed by their duly authorized officers as of the date
first written above.

                              Dendreon Corporation

                              By: /s/ Martin A. Simonetti
                                  ------------------------------------
                              Name: Martin A. Simonetti
                                   -----------------------------------
                              Title:
                                    ----------------------------------
                              Federal Tax ID:
                                             -------------------------
                              Transamerica Business Credit Corporation

                              By:
                                  ------------------------------------
                              Name:

                              Title:

                                      12.
<PAGE>

                                   Exhibit A

October 2, 1997

Mr. Peter S. Garcia
Chief Financial Officer
Dendreon Corporation
291 North Bernardo Avenue
Mountain View, CA 94043

Dear Pete:

Transamerica Business Credit Corporation - Technology Finance Division
("Lessor") is pleased to offer this commitment (this "Commitment") to lease the
equipment described below to Dendreon Corporation.  This Commitment supersedes
all prior correspondence, commitments, and oral or other communications relating
to leasing arrangements between Lessor and Lessee.

The outline of this commitment is as follows:

Lessee:                       Dendreon Corporation

Lessor:                       Transamerica Business Credit Corporation -
                              Technology Finance Division

Equipment:                    Laboratory equipment, office equipment, computer
                              hardware and software and tenant improvements (all
                              equipment subject to Lessor's approval prior to
                              funding), including without limitation, all
                              additions, improvements, replacements, repairs,
                              appurtenances, substitutions, and attachments
                              thereto and all proceeds thereof ("Equipment").
                              Equipment to be leased hereunder may include
                              equipment purchased by Lessee since
                              January 1, 1997 (sale/leaseback).

Equipment Cost:               Not to exceed $1,000,000, of which up to $300,000
                              may be used for tenant improvements and software.

Equipment Location:           Mountain View, CA (or other location acceptable to
                              the Lessor). Anticipated Delivery:

Anticipated Delivery:         Q1-1997 to Q4-1998.

Lease Term Commencement:      Upon delivery of the Equipment or upon each
                              completion of deliveries of items of Equipment
                              with aggregate cost of not less than $50,000, but
                              no later than December 31, 1998.

Term:                         From each Lease Term Commencement until 48 months
                              from the first day of the month next following or
                              coincident with

                                      1.
<PAGE>

                              that Lease Term Commencement.

Monthly Rent:                 Monthly Rent equal to 2.4425% of Equipment Cost
                              will be payable monthly in advance. The first
                              month's rent will be payable upon signing the
                              lease.

Adjustment to                 The Lessor will increase or decrease the Monthly
Monthly Lease Payments:       Lease Payments as of the date of each Lease Term
                              Commencement proportionally to the change in the
                              weekly average of the interest rates of the like-
                              term U.S. Treasury Securities from the week ending
                              August 29, 1997 to the week preceding the date of
                              each Lease Term Commencement, as published in the
                              Wall Street Journal. As of the date of each Lease
                              Term Commencement, the Monthly Lease Payments will
                              be fixed for the term. A schedule of the actual
                              Monthly Lease Payments will be provided by the
                              Lessor following each Lease Term Commencement.

Net Lease:                    The lease will be a net lease under which the
                              Lessee will be responsible for maintenance,
                              insurance, taxes, and all other costs and
                              expenses.

Taxes:                        Sales or use taxes will be added to the Equipment
                              Cost or collected on the gross rentals, as
                              appropriate.

Insurance:                    Prior to any delivery of Equipment, the Lessee
                              will furnish confirmation of insurance acceptable
                              to the Lessor covering the Equipment including
                              primary, all risk, physical damage, property
                              damage and bodily injury with appropriate loss
                              payee endorsement in favor of the Lessor.

Conditions Precedent  to      1.   No material adverse change in the financial
Each Lease Term                    condition, operation or prospects of the
Commencement:                      Lessee prior to funding. The Lessor reserves
                                   the right to rescind any unused portion of
                                   its commitment in the event of a material
                                   adverse change in the financial condition,
                                   operation or prospects of the Lessee.

                              2.   Completion of the documentation and final
                                   terms of the proposed financing satisfactory
                                   to Lessor and Lessor's counsel.

                              3.   Results of all due diligence, including lien,
                                   judgment and tax searches and other matters
                                   Lessor may reasonably request shall be
                                   satisfactory to Lessor and Lessor's counsel.

                              4.   Receipt by Lessor of duly executed Lease
                                   documentation in form and substance
                                   satisfactory to Lessor and its counsel.

                                      2.
<PAGE>

                              5.   Lessor shall receive title and a valid and
                                   perfected first priority lien and security
                                   interest in all Equipment acquired through
                                   the use of this Commitment and Lessor shall
                                   have received satisfactory evidence that
                                   there are no liens on any Equipment except as
                                   expressly permitted herein.

Purchase Option:              The Lessee will have the option to purchase all
                              (but not less than all) the Equipment at the
                              expiration of the term of the lease for ten
                              percent (10%) of Equipment Cost, plus applicable
                              sales and other taxes

Automatic Renewal:            In the event the Lessee does not exercise the
                              Purchase Option described above, the lease will
                              automatically renew for a term of one year with
                              Monthly Rentals equal to 1.00% of Equipment Cost
                              payable monthly in advance. At the expiration of
                              the renewal period, the Lessee will have the
                              option to purchase all (but not less than all) the
                              Equipment for $1.00.

Warrant Coverage:-            As consideration for Lessor's commitment to enter
                              into this equipment Lease in accordance with the
                              terms outlined herein, the Lessee will issue to
                              Lessor warrants to purchase 8,333 shares of the
                              Lessee's common stock at an exercise price of
                              $3.60 per share. The warrants will be exercisable
                              for a period of seven years and Lessor will have
                              the option to exercise the Warrants without
                              payment of the exercise price and receive only
                              that number of shares which represents the value
                              of the difference between the fair market value of
                              the shares and the exercise price (i.e., "net
                              issuance" or "cashless exercise").

Additional Covenants:         There will be no actual or threatened conflict
                              with, or violation of, any regulatory statute,
                              standard or rule relating to the lessee, its
                              present or future operations, or the Equipment.

                              The Lessee will be required to provide quarterly
                              financial information. All information supplied by
                              the Lessee will be correct and will not omit any
                              statement necessary to make the information
                              supplied not be misleading. There will be no
                              material breach of the representations and
                              warranties of the Lessee in the lease. The
                              representations will include that the Equipment
                              Cost of each item of the Equipment does not exceed
                              the fair and usual price for like quantity
                              purchased of such item and reflects all discounts,
                              rebates and allowances for the Equipment given to
                              Lessee any affiliate of Lessee by the
                              manufacturer, supplier or anyone else including,
                              without limitation, discounts for advertising,
                              prompt payment, testing

                                      3.
<PAGE>

                              or other services.

                              No financial covenants will be required in
                              connection with this transaction.

Fees and Expenses:            The Lessee will be responsible for the Lessor's
                              reasonable expenses in connection with the
                              transaction. Such expenses shall not exceed $3,500
                              without the prior written consent of the Lessee.

Law:                          This letter and the proposed Lease are intended to
                              be governed by and construed in accordance with
                              Illinois law without regard to its conflict of law
                              provisions.

Indemnity:                    Lessee agrees to indemnify and to hold harmless
                              Lessor, and its officers, directors and employees
                              against all claims, damages, liabilities and
                              expenses which may be incurred by or asserted
                              against any such person in connection with or
                              arising out of this letter and the transactions
                              contemplated hereby, other than claims, damages,
                              liability, and expense resulting from such
                              person's gross negligence or willful misconduct.

Confidentiality               This letter is delivered to you with the
                              understanding that neither it nor its substance
                              shall be disclosed publicly or privately to any
                              third person except those who are in a
                              confidential relationship to you (such as your
                              legal Counsel and accountants), or where the same
                              is required by law and then only on the basis that
                              it not be further disclosed, which conditions
                              Lessee and its agents agree to be bound by upon
                              acceptance of this letter.

                              Without limiting the generality of the foregoing,
                              none of such persons shall use or refer to Lessor
                              or to any affiliate name in any disclosures made
                              in connection with any of the transactions without
                              Lessor's prior written consent. Upon completion of
                              the initial takedown by Lessor and Lessee, the
                              Lessee will no longer be required to obtain
                              Lessor's prior written consent to disclose the
                              transaction contemplated hereby. In addition, the
                              Lesser agrees to provide camera ready artwork of
                              typestyles and logos of the Lessee for use in
                              promotional material by the Lessor.

Conditions of Acceptance:     This Commitment Letter is intended to be a summary
                              of the most important elements of the agreement to
                              enter into a leasing transaction with Lessee, and
                              it is subject to all requirements and conditions
                              contained in Lease documentation

                                      4.
<PAGE>

                              proposed by Lessor or its counsel in the course of
                              closing the Lease described herein. Not every
                              provision that imposes duties, obligations,
                              burdens, or limitations on Lessee is contained
                              herein, but shall be contained in the final Lease
                              documentation satisfactory to Lessor and its
                              counsel.

                              EACH OF THE PARTIES HERETO IRREVOCABLY AND
                              UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY
                              IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM
                              ARISING OUT OF OR RELATED TO THIS LETTER OR THE
                              TRANSACTION DESCRIBED IN THIS LETTER.

Application Fee:              The $10,000 Application Fee previously paid by
                              Lessee shall be first applied to the costs and
                              expenses of the Lessor in connection with the
                              transaction (not to exceed $3,500), and any
                              remainder shall be applied pro-rata to the second
                              month's rent due under each Lease.

Commitment Expiration:        This commitment shall expire on October 10, 1997
                              unless prior thereto either extended in writing by
                              the Lessor or accepted as provided below by the
                              Lessee.

     Should you have any questions, please call me. If you wish to accept this
Commitment, please so indicate by signing and returning the enclosed duplicate
copy of this letter to me by October 10, 1997.

                                             Yours truly,

                                             Transamerica Business Credit
                                             Corporation - Technology
                                             Finance Division

                                             By: /s/ Gerald A. Michaud
                                                 ------------------------
                                             Gerald A. Michaud
                                             Senior Vice President - Marketing

Accepted this 7/th/ day of October, 1997

Dendreon Corporation

By: /s/ Peter A. Garcia
    -------------------
Its Chief Financial Officer

                                      5.
<PAGE>

                                   Exhibit B

April 14, 1999

Martin A. Simonetti
Chief Financial Officer
Dendreon Corporation
3005 First Avenue
Seattle, Washington 98121

Dear Martin:

Transamerica Business Credit Corporation - Technology Finance Division
("Lessor") is pleased to offer this commitment (this "Commitment") to lease the
equipment described below to Dendreon Corporation ("Lessee"). Except with
respect to the transactions described in a commitment letter dated
October 2, 1997 (the "Prior Commitment"), this Commitment supersedes all prior
correspondence, proposals, and oral or other communications relating to leasing
arrangements between Lessor and Lessee.

The outline of this offer is as follows:

Lessor:                       Transamerica Business Credit Corporation -
                              Technology Finance Division

Lessee:                       Dendreon Corporation
Equipment Cost:               Not to exceed $500,000 in the aggregate (in
                              addition to Prior Commitment).

Equipment:                    Laboratory and Office Equipment, including but
                              limited to all additions, accessions,
                              improvements, replacements and attachments thereto
                              and proceeds (including insurance proceeds)
                              thereof (the "Equipment"). All Equipment subject
                              to Lessee approval prior to funding.

Location of Equipment:        Seattle, Washington and Mountain View, California:

Draw-Down Expiration:         No Leases will be funded after December 31, 1999.

Lease Term Commencement:      Each Lease Term will commence upon delivery of the
                              equipment or upon each delivery of items of
                              equipment having an aggregate cost of not less
                              than $50,000 and will continue through 48 months
                              from the first day of the month next following or
                              coincident with commencement of that Lease Term.

Payment Term:                 Monthly Rent equal to 2.4425% of Equipment Cost
                              will be payable monthly in advance. The first
                              month's rent will be

                                      1.
<PAGE>

                              payable upon signing the lease.

Monthly Rent:                 Monthly Rent equal to 2.4425% of Equipment Cost
                              will be payable monthly in advance. The first
                              month's rent will be payable upon signing the
                              lease.

                              The Lessor will increase or decrease the Monthly
                              Lease Payments as of the date of each Lease Term
                              Commencement proportionally to the change in the
                              weekly average of the interest rates of the like-
                              term U.S. Treasury Securities from the week ending
                              August 29, 1997 (6.17%) to the week preceding the
                              date of each Lease Term Commencement, as published
                              in the Wall Street Journal. As of the date of each
                              Lease Term Commencement, the Monthly Lease
                              Payments will be fixed for the term. A schedule of
                              the actual Monthly Lease Payments will be provided
                              by the Lessor following each Lease Term
                              Commencement.

Purchase Option:              The Lessee will have the option to purchase all
                              (but not less than all) the Equipment at the
                              expiration of the term of the lease for ten
                              percent (10%) of Equipment Cost, plus applicable
                              sales and other taxes.

Automatic Renewal:            In the event the Lessee does not exercise the
                              Purchase Option described above, the lease will
                              automatically renew for a term of one year with
                              Monthly Rentals equal to 1.00% of Equipment Cost
                              payable monthly in advance. At the expiration of
                              the renewal period, the Lessee will have the
                              option to purchase all (but not less than all) the
                              Equipment for $1.00.

Interim Rent:                 Interim Rent will accrue from the date each Lease
                              term commences until the next following first day
                              of a month (unless the Lease Term commences on the
                              first day of a moth). Interim Rent will be
                              calculated at the daily equivalent of the
                              currently adjusted Monthly Rent.

Warrant Coverage:-            As an inducement to the Lessor to enter into this
                              Equipment Lease, the Lessee will issue to Lessor
                              warrants to purchase 3,000 shares of the Lessee's
                              common stock at an exercise price of $5.00 per
                              share. The warrants will be exercisable for a
                              period of seven years and Lessor will have the
                              option to exercise the Warrants without payment of
                              the exercise price and receive only that number of
                              shares which represents the value of the
                              difference between the fair market value of the
                              shares and the exercise price (i.e., "net
                              issuance" or "cashless exercise").

                                      2.
<PAGE>

Net Lease:                    The Leases will be a net lease under which the
                              Lessee will be responsible for maintenance,
                              insurance, taxes, and all other costs and
                              expenses.

Taxes:                        Sales or use taxes will be added to the Equipment
                              Cost or collected on the gross rentals, as
                              appropriate.

Insurance:                    Prior to any delivery of Equipment, the Lessee
                              will furnish confirmation of insurance acceptable
                              to the Lessor covering the Equipment including
                              primary, all risk, physical damage, property
                              damage and bodily injury with appropriate loss
                              payee endorsement in favor of the Lessor.

Conditions Precedent to       1.   No material adverse change in the financial
Each Lease Term                    condition, operation or prospects of the
Commencement:                      Lessee prior to funding. The Lessor reserves
                                   the right to rescind any unused portion of
                                   its commitment in the event of a material
                                   adverse change in the financial condition,
                                   operation or prospects of the Lessee.

                              2.   Completion of the documentation and final
                                   terms of the proposed financing satisfactory
                                   to Lessor and Lessor's counsel.

                              3.   Results of all due diligence, including lien,
                                   judgment and tax searches and other matters
                                   Lessor may reasonably request shall be
                                   satisfactory to Lessor and Lessor's counsel.

                              4.   Receipt by Lessor of duly executed Lease
                                   documentation in form and substance
                                   satisfactory to Lessor and its counsel.

                              5.   Lessor shall receive title and a valid and
                                   perfected first priority lien and security
                                   interest in all Equipment acquired through
                                   the use of this Commitment and Lessor shall
                                   have received satisfactory evidence that
                                   there are no liens on any Equipment except as
                                   expressly permitted herein.

Additional Covenants:         There will be no actual or threatened conflict
                              with, or violation of, any regulatory statute,
                              standard or rule relating to the lessee, its
                              present or future operations, or the Equipment.

                              All information supplied by the Lessee will be
                              correct and will not omit any statement necessary
                              to make the information supplied not be
                              misleading. There will be no material breach of
                              the representations and warranties of the Lessee
                              in the lease. The representations will include
                              that the Equipment Cost of each item of the
                              Equipment does not exceed the fair and usual

                                      3.
<PAGE>

                              price for like quantity purchased of such item and
                              reflects all discounts, rebates and allowances for
                              the Equipment given to Lessee any affiliate of
                              Lessee by the manufacturer, supplier or anyone
                              else including, without limitation, discounts for
                              advertising, prompt payment, testing or other
                              services.

Expenses:                     All costs and expenses incurred by the Lessor in
                              connection with the underwriting and closing of
                              the Leases will be paid by the Lessee whether or
                              not any Leases are consummated and funds are
                              advanced by the Lessor. Such expenses shall not
                              exceed $1,000 without the consent of the Lessee.

Law:                          This letter and the proposed Lease are intended to
                              be governed by and construed in accordance with
                              Illinois law without regard to its conflict of law
                              provisions.

Indemnity-:                   Lessee agrees to indemnify and to hold harmless
                              Lessor, and its officers, directors and employees
                              against all claims, damages, liabilities and
                              expenses which may be incurred by or asserted
                              against any such person in connection with or
                              arising out of this letter and the transactions
                              contemplated hereby, other than claims, damages,
                              liability, and expense resulting from such
                              person's gross negligence or willful misconduct.

Confidentiality               This letter is delivered to you with the
                              understanding that neither it nor its substance
                              shall be disclosed publicly or privately to any
                              third person except those who are in a
                              confidential relationship to you (such as your
                              legal Counsel and accountants), or where the same
                              is required by law and then only on the basis that
                              it not be further disclosed, which conditions
                              Lessee and its agents agree to be bound by upon
                              acceptance of this letter.

                              Without limiting the generality of the foregoing,
                              none of such persons shall use or refer to Lessor
                              or to any affiliate name in any disclosures made
                              in connection with any of the transactions without
                              Lessor's prior written consent.

                              Upon completion of the initial takedown by Lessor
                              and Lessee, the Lessee will no longer be required
                              to obtain Lessor's prior written consent to
                              disclose the transaction contemplated hereby. In
                              addition, the Lesser agrees to provide camera
                              ready artwork of typestyles and logos of the
                              Lessee for use in promotional material by the
                              Lessor.

Conditions of Acceptance:     This Commitment Letter is intended to be a summary
                              of the most important elements of the agreement to
                              enter into a

                                      4.
<PAGE>

                              leasing transaction with Lessee, and it is subject
                              to all requirements and conditions contained in
                              Lease documentation proposed by Lessor or its
                              counsel in the course of closing the Lease
                              described herein. Not every provision that imposes
                              duties, obligations, burdens, or limitations on
                              Lessee is contained herein, but shall be contained
                              in the final Lease documentation satisfactory to
                              Lessor and its counsel.

                              EACH OF THE PARTIES HERETO IRREVOCABLY AND
                              UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY
                              IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM
                              ARISING OUT OF OR RELATED TO THIS LETTER OR THE
                              TRANSACTION DESCRIBED IN THIS LETTER.

Application Fee:              The $5,000 Application Fee previously paid by
                              Lessee shall be first applied to the costs and
                              expenses of the Lessor in connection with the
                              transaction, and any remainder shall be applied
                              pro-rata (based on the amount of each funding to
                              the total amount of this commitment) to the second
                              month's rent due under each Lease.

Commitment Expiration:        This commitment shall expire on April 21, 1999
                              unless prior thereto either extended in writing by
                              the Lessor or accepted as provided below by the
                              Lessee.

     Should you have any questions, please call me. If you wish to accept this
Commitment, please so indicate by signing and returning the enclosed duplicate
copy of this letter to me by April 21, 1999.

                                        Yours truly,

                                        Transamerica Business Credit
                                        Corporation - Technology
                                        Finance Division

                                        By: /s/ Gerald A. Michaud
                                            ------------------------
                                        Gerald A. Michaud
                                        Senior Vice President - Marketing

Accepted this 7/th/ day of October, 1997

Dendreon Corporation

By: /s/ Martin A. Simonetti
    -----------------------
Its Chief Financial Officer

                                      5.

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