Document:

<PAGE>
                                                                    EXHIBIT 10.1

                                                               EXECUTION VERSION

                         NORTHWEST BIOTHERAPEUTICS, INC.

                          SECURITIES PURCHASE AGREEMENT

      THIS SECURITIES PURCHASE AGREEMENT (this "AGREEMENT") is made and entered
into as of January 26, 2005 (the "CLOSING DATE"), by and between NORTHWEST
BIOTHERAPEUTICS, INC., a Delaware corporation (the "COMPANY") and TOUCAN CAPITAL
FUND II, L.P. (the "PURCHASER").

                                    RECITALS

      WHEREAS, the Company and the Purchaser are parties to that certain Amended
and Restated Recapitalization Agreement, dated as of July 30, 2004 (as amended
from time to time, the "RECAPITALIZATION AGREEMENT"), pursuant to which, among
other things, the Purchaser has extended certain bridge loans to the Company.
All capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Recapitalization Agreement.

      WHEREAS, the Recapitalization Agreement contemplates that an equity
financing of the Company may be made, and that the Purchaser will, at its
election, serve as the lead investor in such equity financing.

      WHEREAS, the Purchaser has indicated a willingness to make an equity
investment in the Company, subject to the terms and conditions of this
Agreement, and this Agreement is intended to serve as a definitive agreement as
part of the "Anticipated Equity Financing" (as such term is defined in the
Recapitalization Agreement) and that the parties hereto agree that this
Agreement is a "Related Recapitalization Document."

      WHEREAS, the Company has authorized the sale and issuance of an aggregate
of fifty million (50,000,000) shares of its Series A Cumulative Convertible
Preferred Stock (the "PREFERRED STOCK").

      WHEREAS, it is intended that the Purchaser will purchase thirty-two
million five hundred thousand (32,500,000) shares (the "SHARES") of Preferred
Stock at a purchase price of $0.04 per Share (for an aggregate purchase price of
$1,300,000) at the Closing, and that the Purchaser and/or one or more other
investors approved by the Purchaser will have the opportunity to participate in
future closings ("FUTURE CLOSINGS") during a period of time following the
Closing Date in accordance with the term of the Preferred Stock Term Sheet.

      WHEREAS, it is contemplated that Future Closings, if any, may be effected
pursuant to a different form of securities purchase agreement from this
Agreement.

      WHEREAS, it is contemplated that the parties hereto (and other investors
participating in Future Closings, if any) shall enter into an Investors' Rights
Agreement and Voting Agreement, if applicable, at a mutually agreed upon time in
the future.

      WHEREAS, as contemplated by the Recapitalization Agreement, the Purchaser
will also be issued a warrant by the Company to purchase shares of Preferred
Stock (the "WARRANT").

<PAGE>

                                                               EXECUTION VERSION

      WHEREAS, the Purchaser desires to purchase the Shares and the Warrant on
the terms and conditions set forth herein.

      WHEREAS, the Company desires to issue and sell the Shares and the Warrant
to the Purchaser on the terms and conditions set forth herein.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises, representations, warranties, and covenants hereinafter set forth and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

      1.    AGREEMENT TO SELL AND PURCHASE.

            1.1   AUTHORIZATION OF SHARES AND WARRANT. The Company has
authorized (a) the sale and issuance to the Purchaser of the Shares and the
Warrant, (b) the issuance of the shares of Preferred Stock to be issued upon
exercise of the Warrant (the "WARRANT SHARES"), and (c) the issuance of such
shares of Common Stock to be issued upon conversion of the Shares and the
Warrant Shares (the "CONVERSION SHARES"). The Shares and the Warrant Shares have
the rights, preferences, privileges and restrictions set forth in the
Certificate of Designations, Preferences and Rights, in the form attached hereto
as EXHIBIT B (the "CERTIFICATE OF DESIGNATIONS"). The Warrant will be in the
form attached hereto as EXHIBIT C.

            1.2   SALE AND PURCHASE. Subject to the terms and conditions hereof,
at the Closing (as hereinafter defined) the Company hereby agrees to issue and
sell to the Purchaser, and the Purchaser agrees to purchase from the Company an
aggregate of 32,500,000 Shares, at a purchase price of $0.04 per Share, and the
Warrant to purchase 13,000,000 Warrant Shares.

      2.    CLOSING, DELIVERY AND PAYMENT.

            2.1   CLOSING. The closing of the sale and purchase of the Shares
and the Warrant under this Agreement (the "CLOSING") shall take place at 10:00
a.m. on the date hereof, at the offices of Cooley Godward LLP, 11951 Freedom
Drive, Reston, VA 20190, or at such other time or place as the Company and the
Purchaser may mutually agree.

            2.2   DELIVERY. At the Closing, subject to the terms and conditions
hereof, the Company will deliver to the Purchaser (a) a stock certificate
representing 32,500,000 Shares, against payment of the purchase price therefor
in cash as set forth on EXHIBIT A hereto, (b) a warrant certificate, in the form
attached hereto as EXHIBIT C, exercisable for 13,000,000 Warrant Shares.

            2.3   USE OF PROCEEDS. The proceeds from the sale of the Shares to
the Purchaser shall be used by the Company for its growth, modernization and/or
expansion and/or for general corporate purposes as permitted by applicable Small
Business Administration rules and regulations.

      3.    CONDITIONS TO CLOSING.

<PAGE>

                                                               EXECUTION VERSION

            3.1   INCORPORATION OF CLOSING CONDITIONS. The Company and the
Purchaser acknowledge that the Closing constitutes the "first closing of the
Convertible Preferred Stock" for purposes of the Recapitalization Agreement and
all Related Recapitalization Documents. Accordingly all closing conditions set
forth in the Recapitalization Agreement, including without limitation, those
conditions set forth in Sections 2.4 and 4.9 thereof, are applicable to the
Closing and incorporated by reference herein.

            3.2   ADDITIONAL CLOSING CONDITIONS. Notwithstanding anything to the
contrary, and unless expressly waived in writing in advance by the Purchaser
(any such waiver by the Purchaser shall be applicable only as to the Closing and
shall not be deemed a waiver of such condition as to future closings, if any),
and only to the extent expressly waived, the Closing shall be conditional upon
and subject to the satisfaction or waiver of each of the following conditions
precedent, with each such satisfaction or waiver to be determined by the
Purchaser in its sole discretion, on or before the Closing. The Purchaser shall
make all such determinations in its sole discretion. These conditions are in
addition to the conditions set forth in the Recapitalization Agreement. The
conditions precedent to the Closing contemplated hereby shall include the
following, unless waived by the Purchaser in its sole discretion:

                  (a)   The Company shall have in all material respects
performed, and be in compliance with, all obligations, agreements, covenants,
closing conditions and other provisions contained in the Recapitalization
Agreement, the notes evidencing Bridge Funding, and the other Related
Recapitalization Documents, to the extent applicable, including, without
limitation, the financing documents associated with the issuance of the
Preferred Stock, required to be performed or fulfilled on or before the Closing
Date.

                  (b)   All representations and warranties set forth in the
Recapitalization Agreement, the notes evidencing Bridge Funding, and the other
Related Recapitalization Documents shall be true and complete as of the Closing.

                  (c)   There shall have been no change that has had or is
reasonably likely to have a material adverse effect on the business, affairs,
prospects, operations, properties, assets, liabilities, structure or condition,
financial or otherwise, of the Company (as such business is presently conducted
and/or as it is proposed to be conducted) since July 30, 2004 except as
disclosed by the Company in writing to Purchaser prior to the Closing.

                  (d)   All corporate and other proceedings, and all documents
relating to the issuance and sale of the Shares, the Warrant Shares and the
Conversion Shares pursuant hereto and pursuant to the Recapitalization Agreement
shall be satisfactory in substance and form to the Purchaser. The Purchaser's
counsel shall have received all such counterpart originals or certified or other
copies of such documents as they may have requested including, without
limitation:

                        (i)   the resolutions of the Board of Directors of the
Company, authorizing and approving all matters in connection with the sale of
the Preferred Stock certified by the Secretary of the Company as of the Closing
Date; and

<PAGE>

                                                               EXECUTION VERSION

                        (ii)  all stockholder consents, votes or other approval
required by applicable state or federal law (including any and all SEC rules and
regulations) and any consents required by applicable securities exchanges or
markets or corporate partners required to authorize and approve all matters in
connection with the sale of Series A Stock as contemplated by the Amended and
Restated Binding Convertible Preferred Stock Term Sheet by and between the
Company and the Purchaser, dated as of October 22 and as amended from time to
time.

                  (e)   The Company shall have executed, delivered and
maintained in force (i) a Convertible Preferred Stock purchase agreement, (ii)
an Investors' Rights Agreement, (iii) an amended and restated certificate of
incorporation (or if appropriate, a certificate of designation), (iv) a voting
agreement, if applicable, and (v) such other documents as may be necessary or
desirable in the determination of the Purchaser.

                  (f)   The Purchaser shall have received from counsel to the
Company an opinion letter containing opinions customary for transactions similar
to the transactions contemplated hereby in the form reasonably acceptable to the
Purchaser (including, but not limited to, an opinion that the issuance of the
Shares, the Warrant, the Warrant Share and the Conversion Shares are exempt from
the registration provisions of the federal and state securities laws).

                  (g)   The Company shall have delivered a certificate of its
Chief Executive Officer, or other authorized and responsible officer of the
Company acceptable to the Purchaser, in its sole discretion, certifying that all
closing conditions in this Agreement have been fulfilled and that all
representations and warranties are applicable and true as of the date of the
Closing.

                  (h)   The Company shall have provided prior to the Closing
Date all due diligence information requested by the Purchaser, and/or necessary
to enable the Purchaser to complete a thorough due diligence review and obtain a
complete and accurate understanding of the business, operations, prospects,
assets, liabilities, structure, legal aspects and condition, financial or
otherwise, of the Company.

                  (i)   Within the six month period prior to the Closing, the
Company shall not have entered into, increased, expanded, extended, renewed or
reinstated (or agreed, promised, committed or undertaken to do so), any
severance, separation, retention, change of control or similar agreement with
any employee, other than such agreements entered into with the prior written
approval of the Purchaser.

                  (j)   Within the six month period prior to the Closing, the
Company shall not have hired, or agreed to hire, any employee or engaged, or
agreed to engage, any consultant, independent contractor or any other
non-employee personnel, except in accordance with the Company's budget that has
been approved by the Company's board of directors and the Purchaser.

                  (k)   Within the six month period prior to the Closing, the
Company shall not have purchased, leased, hired, rented or otherwise acquired
directly or indirectly any rights in or to any asset or facility in an amount in
excess of $10,000, or agreed, promised or

<PAGE>

                                                               EXECUTION VERSION

committed to do so, except in accordance with the Company's budget that has been
approved by the Company's board of directors and the Purchaser.

                  (l)   All Intellectual Property licenses, agreements, patent
applications and filings shall be current and in good standing.

                  (m)   The Company shall have obtained the approval of the
required number of its stockholders of the Proposed Equity Financing.

                  (n)   Subject to the accuracy of the representations and
warranties of the Purchaser set forth in Section 4, on the applicable Closing
Date, the sale and issuance of the Shares and the Warrant and the proposed
issuance of the Warrant Shares and the Conversion Shares shall be legally
permitted by Delaware law and federal and state securities laws, except that the
Company shall have up to fifteen (15) days from the Closing Date to file notices
of the sale of the Shares and warrant pursuant to Regulation D promulgated under
the Securities Act of 1933, as amended (the "SECURITIES ACT"), and applicable
state securities laws.

                  (o)   The Certificate of Designations shall have been filed
with the Secretary of State of the State of Delaware and shall continue to be in
full force and effect as of the Closing Date.

                  (p)   The Warrant Shares issuable upon exercise of the
Warrant, and the Conversion Shares issuable upon conversion of the Shares and
the Warrant Shares, shall have been duly authorized and reserved for issuance
upon such conversion.

                  (q)   The Warrant in the form attached hereto as EXHIBIT C
shall have been executed and delivered by the Company in favor of the Purchaser.

      4.    REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
            hereby represents and warrants to the Company that:

            4.1   AUTHORIZATION. The Purchaser has full power and authority to
enter into this Agreement and this Agreement constitutes a valid and legally
binding obligation of the Purchaser, enforceable in accordance with its terms
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors' rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies.

            4.2   PURCHASE ENTIRELY FOR OWN ACCOUNT. The Shares to be received
by the Purchaser and the Conversion Shares (collectively, the "SECURITIES") will
be acquired for investment for the Purchaser's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and the Purchaser has no present intention of selling, granting any
participation in or otherwise distributing the same except in compliance with
applicable federal and state securities laws. The Purchaser further represents
that the Purchaser does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of

<PAGE>

                                                               EXECUTION VERSION

the Securities other than with respect to potential future distributions of the
Securities to its partners in compliance with applicable federal and state
securities laws.

            4.3   DISCLOSURE OF INFORMATION. The Purchaser has conducted its own
due diligence review of the Company and received copies or originals of all
documents it has requested from the Company. Notwithstanding the foregoing, this
representation shall not in any way be deemed to prohibit, limit, restrict or
otherwise impact the Purchaser's rights to indemnification, and/or to any other
rights or remedies available at law or equity, from the Company and its
affiliates in the event of a breach by the Company of any representation,
warranty, covenant or other term hereof or of any Related Recapitalization
Document.

            4.4   INVESTMENT EXPERIENCE. The Purchaser is an investor in
securities of companies in the development stage and acknowledges that it is
able to fend for itself, can bear the economic risk of its investment, including
a total loss, and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment
in the Securities. The Purchaser also represents that it has not been organized
for the purpose of acquiring the Securities.

            4.5   ACCREDITED INVESTOR. The Purchaser is an "ACCREDITED INVESTOR"
within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act.

            4.6   RESTRICTED SECURITIES. The Purchaser understands that the
issuance of the Securities has not been, and will not be, registered under the
Securities Act, by reason of a specific exemption from the registration
provisions of the Securities Act which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of the Purchaser's
representations as expressed herein. The Purchaser understands that the
Securities are characterized as "RESTRICTED SECURITIES" under applicable U.S.
federal and state securities laws and that, pursuant to these laws, Purchaser
must hold the Securities indefinitely unless subsequently registered for resale
with the Securities and Exchange Commission and qualified by state authorities,
or an exemption from such registration and qualification requirements is
available. Other than the registration rights set forth in the Convertible
Preferred Stock Term Sheet and the covenant set forth in Section 5.1 hereof, the
Purchaser acknowledges that the Company has no obligation to register or qualify
the Securities for resale.

            4.7   LEGENDS. It is understood that the certificates evidencing the
Securities may bear one or all of the following legends (or substantially
similar legends):

                  (a)   "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS IN
COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS."

                  (b)   Any legend required by the laws of any state or foreign
jurisdiction, to the extent such laws are applicable to the shares represented
by the certificate so legended.

<PAGE>

                                                               EXECUTION VERSION

                  (c)   Any legend required by the Related Recapitalization
Documents.

      5.    MISCELLANEOUS.

            5.1   REGISTRATION RIGHTS. The Company and the Purchaser agree that
they will each use their respective best efforts to promptly enter into an
Investors' Rights Agreement providing for the registration rights on the terms
set forth in the Convertible Preferred Stock Term Sheet at a mutually agreed
upon time in the future, which in any event shall be no later than ten business
days following the request by the Purchaser.

            5.2   TAX TREATMENT OF SHARES AND WARRANT. Each of the Company and
the Purchaser covenant that, if the Purchaser determines in its sole discretion
that doing so is appropriate, they will, as a result of arm's length bargaining,
agree on the fair market value of the Shares being issued in the Closing (if
issued apart from the Warrant), and the fair market value of the Warrant (if
issued apart from such Shares). The Company and the Purchaser further agree that
all tax filings and records relating to or including this Agreement, the Shares
and/or or the Warrant shall be prepared on the basis of, and consistently
reflect, the agreed fair market values determined in accordance with this
Section 5.2, and the Company shall instruct its accountants and other
tax-preparation professionals to prepare all tax filings and returns on such
basis.

            5.3   NO IMPAIRMENT. The Company shall not, by amendment of its
certificate of incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, omission, or agreement, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed by the Company
under and/or in connection with this Agreement, but shall at all times in good
faith use best efforts to assist in carrying out of all the provisions of and/or
relating to this Agreement and in taking all such action as may be necessary or
appropriate to protect each Purchaser's rights, preferences and privileges under
and/or in connection with this Agreement against impairment.

            5.4   COUNTERPARTS. This Agreement may be executed in counterparts,
each of which when so executed and delivered will constitute a complete and
original instrument but all of which together will constitute one and the same
agreement, and it will not be necessary when making proof of this Agreement or
any counterpart thereof to account for any counterpart other than the
counterpart of the party against whom enforcement is sought.

            5.5   GOVERNING LAW. This Agreement will be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to principles of conflicts of law. Each party to this Agreement hereby
irrevocably and unconditionally agrees that any legal action, suit or proceeding
arising out of or relating to this Agreement or any agreements or transactions
contemplated hereby will be brought in any federal or state court located in
Delaware, and hereby irrevocably and unconditionally expressly submits to the
personal jurisdiction and venue of such courts for the purposes thereof and
hereby irrevocably and unconditionally waives any claim (by way of motion, as a
defense or otherwise) of improper venue, that it is not subject personally to
the jurisdiction of such court, that such courts are an inconvenient forum or
that this Agreement or the subject matter may not be enforced in or by such
courts. Each party hereby irrevocably and unconditionally consents to the
service of

<PAGE>

                                                               EXECUTION VERSION

process of any of the aforementioned courts in any such action, suit or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the address set forth or provided for in Section 5.6 of this
Agreement, such service to become effective upon delivery, in accordance with
Section 5.6 below. Nothing herein contained will be deemed to affect the right
of any party to serve process in any manner permitted by law or commence legal
proceedings or otherwise proceed against any other party in any other
jurisdiction to enforce judgments obtained in any action, suit or proceeding
brought pursuant to this Section.

            5.6   NOTICES. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to be effective upon delivery
when delivered (a) personally; (b) by facsimile, provided a copy is mailed on
the same day by overnight delivery with a nationally recognized overnight
delivery service; (c) by overnight delivery with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications
will be, in the case of the Purchaser:

                        Linda F. Powers
                        Managing Director
                        Toucan Capital Corp.
                        7600 Wisconsin Ave, 7th floor
                        Bethesda, MD 20814
                        Tel: 240-497-4060
                        Fax: 240-497-4065
                        lpowers@toucancapital.com

                        And in the case of the Company:

                        Northwest Biotherapeutics, Inc.
                        Attention:  Alton Boynton
                        22322 20th Avenue, SE, Suite 150
                        Bothell, Washington 98021
                        Fax: 425-608-3009

or at such other address and facsimile number as the receiving party will have
furnished to the sending party in writing. Each party will provide five (5)
business days' prior written notice to the other parties of any change in
address or facsimile number.

            5.7   SURVIVABILITY. The representations, warranties, covenants and
agreements made and incorporated by reference herein will survive any
investigation made by or on behalf of the Purchaser or the Company, and will
survive for two years after the Closing Date.

            5.8   SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof will inure to the benefit of, and be binding upon,
the respective successors, assigns, heirs, executors and administrators of the
parties hereto. Notwithstanding anything to the contrary in this Agreement, the
Recapitalization Agreement or the Related Recapitalization Documents, the
Purchaser may transfer or assign all or any portion of its rights under this
Agreement, the Recapitalization Agreement and the other Related Recapitalization
Documents to

<PAGE>

                                                               EXECUTION VERSION

any person or entity, or designate another party to exercise all or any portion
of the Purchaser's rights under this Agreement, the Recapitalization Agreement
and the other Related Recapitalization Documents, so long as such transfer or
assignment is permissible under applicable federal and state securities laws.
Without limiting the generality of the foregoing, all representations,
warranties, covenants and agreements benefiting the Purchaser will inure to the
benefit of any and all subsequent holders from time to time of the Shares, the
Warrant, the Warrant Shares and the Conversion Shares contemplated by this
Agreement.

            5.9   ENTIRE AGREEMENT; AMENDMENTS. This Agreement (including the
Schedules and Exhibits hereto, which are an integral part of this Agreement),
the Recapitalization Agreement (including the Schedules and Exhibits thereto)
and the Related Recapitalization Documents (including the Schedules and Exhibits
thereto) constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof. Except as otherwise
expressly provided herein, neither this Agreement, the Recapitalization
Agreement or the Related Recapitalization Documents nor any term hereof or
thereof may be amended, waived, discharged or terminated, except by a written
instrument signed by the Company and the Purchaser. Notwithstanding anything to
the contrary, no provision that applies to any person or entity specifically
designated by name will be amended, waived, discharged or terminated without the
express written consent of such named person or entity. Also notwithstanding
anything to the contrary, this Agreement, the Recapitalization Agreement and/or
the other Related Recapitalization Documents will be amended as and to the
extent necessary to comply with the Small Business Investment Act and all
regulations, advice, direction and guidance applicable to SBICs.

            5.10  INTERPRETATION. All pronouns and any variations thereof will
be deemed to refer to the masculine, feminine, neuter, singular or plural, as
the identity of the person or persons or entity or entities may require. All
references to "$" or dollars herein will be construed to refer to United States
dollars. The titles of the Sections and subsections of this Agreement are for
convenience or reference only and are not to be considered in construing this
Agreement.

            5.11  RIGHTS, SEVERABILITY. In case any provision of this Agreement,
the Recapitalization Agreement or the Related Recapitalization Documents will be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions will not in any way be affected or impaired thereby.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

                                                               EXECUTION VERSION

            IN WITNESS WHEREOF, the parties hereto have executed this SECURITIES
PURCHASE AGREEMENT as of the date set forth in the first paragraph hereof.

COMPANY:

NORTHWEST BIOTHERAPEUTICS, INC.

Signature: /s/ Alton Boynton
           -----------------

Print Name: Alton Boynton
            -------------

Title: President
       ---------

Address: 22322 20TH Avenue, SE
         Suite 150
         Bothell, WA  98021

PURCHASER:

TOUCAN CAPITAL FUND II, L.P.

By:   /s/ Linda Powers
      Linda Powers
      Managing Director

                 [Securities Purchase Agreement Signature Page]

<PAGE>

                                                               EXECUTION VERSION

                                    EXHIBIT A

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
                                                          NUMBER OF       AGGREGATE
                                                           WARRANT        PURCHASE
     NAME AND ADDRESS                       SHARES          SHARES         PRICE
------------------------------            ----------      ----------     -----------
<S>                                       <C>             <C>            <C>
TOUCAN CAPITAL FUND II, L.P.              32,500,000      13,000,000     $1,300,000
Attn: Linda Powers
Managing Director
7600 Wisconsin Ave, 7th floor
Bethesda, MD 20814
Tel: 240-497-4060
Fax: 240-497-4065
lpowers@toucancapital.com
</TABLE>

<PAGE>

                                   EXHIBIT B

                       (See Exhibit 3.1 filed herewith.)

                                       1.
<PAGE>

                                    EXHIBIT C

                        (See Exhibit 10.2 filed herewith)

                                       15.<PAGE>
                                                                    EXHIBIT 10.2

                                                               EXECUTION VERSION

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS IN
COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

                         NORTHWEST BIOTHERAPEUTICS, INC.

                                     WARRANT

NO. PW-1                                                        JANUARY 26, 2005

      THIS CERTIFIES THAT, for value received, TOUCAN CAPITAL FUND II, L.P.,
with its principal office at 7600 Wisconsin Avenue, Suite 700, Bethesda, MD
20814, and/or its designees or assigns (collectively, the "HOLDER"), is entitled
to subscribe for and purchase from NORTHWEST BIOTHERAPEUTICS, INC., a Delaware
corporation, with its principal office at 22322 20th Avenue SE, Suite 150,
Bothell, Washington 98021 (the "COMPANY"), such number of Exercise Shares as
provided herein at the Exercise Price (each subject to adjustment as provided
herein). This Warrant is being issued pursuant to the terms of the Amended and
Restated Recapitalization Agreement, dated July 30, 2004, as amended from time
to time, by and among the Company and Investor (the "RECAPITALIZATION
AGREEMENT").

      1.    DEFINITIONS. Capitalized terms used but not defined herein shall
have the meanings set forth in the Recapitalization Agreement or the Related
Recapitalization Documents, as applicable. As used herein, the following terms
shall have the following respective meanings:

            (a)   "PREFERRED STOCK" shall mean the Series A Cumulative
Convertible Preferred Stock, par value, $0.001 per share of the Company.

            (b)   "DENOMINATOR SHARE PRICE" shall mean $0.10.

            (c)   "EXERCISE PERIOD" shall mean the period commencing on the date
of issuance of this Warrant and ending seven (7) years after the date of
issuance of this Warrant.

            (d)   "EXERCISE PRICE" shall mean $.04 per share (subject to
adjustment pursuant to Section 5).

            (e)   "EXERCISE SHARES" shall mean a number of shares of Preferred
Stock equal to the quotient of (i) the Preferred Stock Amount, divided by (ii)
the Denominator Share Price, which in this case equals 13,000,000 shares of
Preferred Stock, subject to adjustment pursuant to the terms herein.

            (f)   "PREFERRED STOCK AMOUNT" shall mean $1,300,000.

      2.    EXERCISE OF WARRANT. The rights represented by this Warrant may be
exercised in whole or in part at any time or times during the Exercise Period,
by delivery of the

                                       1.

<PAGE>

                                                               EXECUTION VERSION

following to the Company at its address set forth above (or at such other
address as it may designate by notice in writing to the Holder):

            (a)   An executed Notice of Exercise in the form attached hereto;

            (b)   Payment of the Exercise Price either (i) in cash or by check,
or (ii) by cancellation of indebtedness; and

            (c)   This Warrant.

      Upon the exercise of the rights represented by this Warrant, a certificate
or certificates for the Exercise Shares so purchased, registered in the name of
the Holder or persons affiliated with the Holder, if the Holder so designates,
shall be issued and delivered to the Holder within a reasonable time after the
rights represented by this Warrant shall have been so exercised. In the event
that this Warrant is being exercised for less than all of the then-current
number of Exercise Shares purchasable hereunder, the Company shall, concurrently
with the issuance by the Company of the number of Exercise Shares for which this
Warrant is then being exercised, issue a new Warrant exercisable for the
remaining number of Exercise Shares purchasable hereunder.

      The person in whose name any certificate or certificates for Exercise
Shares are to be issued upon exercise of this Warrant shall be deemed to have
become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date
of delivery of such certificate or certificates, except that, if the date of
such surrender and payment is a date when the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

      2.1 NET EXERCISE. Notwithstanding any provisions herein to the contrary,
if the fair market value of one Exercise Share is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of exercising
this Warrant by payment of cash, the Holder may elect to receive shares equal to
the value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company
together with the properly endorsed Notice of Exercise in which event the
Company shall issue to the Holder a number of Exercise Shares computed using the
following formula:

                               X = Y (A-B)
                                   -------
                                      A

            Where X =   the number of Exercise Shares to be issued to the Holder

                  Y =   the number of Exercise Shares purchasable under the
                        Warrant or, if only a portion of the Warrant is being
                        exercised, that portion of the Warrant being canceled
                        (at the date of such calculation)

                  A =   the fair market value of one Exercise Share (at the date
                        of such calculation)

                  B =   Exercise Price (as adjusted to the date of such
                        calculation)

                                       2.

<PAGE>

                                                               EXECUTION VERSION

      For purposes of the above calculation, the fair market value of one
Exercise Share shall be determined by the Company's Board of Directors in good
faith; provided, however, that in the event that this Warrant is exercised
pursuant to this Section 2.1 in connection with the Company's initial public
offering of its Common Stock, the fair market value per share shall be the
product of (i) the per share offering price to the public of the Company's
initial public offering, and (ii) the number of shares of Common Stock into
which each Exercise Share is convertible at the time of such exercise.

      3.    COVENANTS OF THE COMPANY.

            3.1   COVENANTS AS TO EXERCISE SHARES. The Company covenants and
agrees that all Exercise Shares that may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued and
outstanding, fully paid and nonassessable, and free from all taxes, liens and
charges with respect to the issuance thereof. The Company further covenants and
agrees that the Company will at all times during the Exercise Period, have
authorized and reserved, free from preemptive rights, a sufficient number of
shares of the series of equity securities comprising the Exercise Shares and the
Company's Common Stock to provide for the exercise of the rights represented by
this Warrant and the subsequent conversion of the Exercise Shares. If at any
time during the Exercise Period the number of authorized but unissued shares of
such series of the Company's equity securities or the Company's Common Stock
shall not be sufficient to permit exercise of this Warrant or the subsequent
conversion of the Exercise Shares, the Company will take such corporate action
as shall be necessary to increase its authorized but unissued shares of such
series of the Company's equity securities or the Company's Common Stock, as
appropriate, to such number of shares as shall be sufficient for such purposes.

            3.2   NOTICES OF RECORD DATE. In the event of any taking by the
Company of a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend or
other distribution, the Company shall mail to the Holder, at least ten (10) days
prior to the date specified herein, a notice specifying the date on which any
such record is to be taken for the purpose of such dividend or distribution.

            3.3   NO IMPAIRMENT. The Company shall not, by amendment of its
Certificate of Incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, omission or agreement, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed by the Company
under and/or in connection with this Warrant, but shall at all times in good
faith use best efforts to assist in carrying out of all the provisions of and/or
relating to this Warrant and in taking all such action as may be necessary or
appropriate to protect Holder's rights, preferences and privileges under and/or
in connection with this Warrant against impairment. The Holder's rights,
preferences and privileges granted under and/or in connection with this Warrant
may not be amended, modified or waived without the Holder's prior written
consent, and the documentation providing for such rights, preferences and
privileges will specifically provide as such.

            3.4   REGISTRATION RIGHTS. The Company agrees that the Underlying
Shares (as defined below) shall be "registrable securities" (or terms of similar
impact) under any agreement

                                       3.

<PAGE>

                                                               EXECUTION VERSION

executed by the Company as part of the Anticipated Equity Financing, or any
other agreement executed by the Company in lieu of, and/or in addition to, the
Anticipated Equity Financing, in each case, for purposes of providing
registration rights under the Act to holders of shares of capital stock of the
Company, and the Company shall ensure that any such agreement conforms with the
requirements of this Section 3.4. Such registration rights may not be amended,
modified or waived without the prior written consent of the Holder.

      4.    REPRESENTATIONS OF HOLDER.

            4.1   ACQUISITION OF WARRANT FOR PERSONAL ACCOUNT. The Holder
represents and warrants that it is acquiring the Warrant, the Exercise Shares
and the shares of Common Stock issuable upon conversion of the Exercise Shares
(the "UNDERLYING SHARES") solely for its account for investment and not with a
view to or for sale or distribution of said Warrant, Exercise Shares or
Underlying Shares or any part thereof except in compliance with applicable
federal and state securities laws. The Holder also represents that the entire
legal and beneficial interests of the Warrant, the Exercise Shares and the
Underlying Shares the Holder is acquiring is being acquired for, and will be
held for, its account only.

            4.2   SECURITIES ARE NOT REGISTERED.

                  (a)   The Holder understands that the Warrant, the Exercise
Shares and the Underlying Shares have not been registered under the Securities
Act of 1933, as amended (the "ACT") on the basis that no distribution or public
offering of the stock of the Company is to be effected by the Holder. The Holder
realizes that the basis for the exemption may not be present if, notwithstanding
its representations, the Holder has a present intention of acquiring the
securities for a fixed or determinable period in the future, selling (in
connection with a distribution or otherwise), granting any participation in, or
otherwise distributing the securities. The Holder has no such present intention.

                  (b)   The Holder recognizes that the Warrant, the Exercise
Shares and the Underlying Shares must be held indefinitely unless they are
subsequently registered under the Act or an exemption from such registration is
available; provided, however, the parties acknowledge and agree that the Company
has an obligation to register the Underlying Shares as provided in the
Recapitalization Agreement and Related Recapitalization Documents.

                  (c)   The Holder is aware that neither the Warrant, the
Exercise Shares nor the Underlying Shares may be sold pursuant to Rule 144
adopted under the Act unless certain conditions are met, including, among other
things, the existence of a public market for the shares, the availability of
certain current public information about the Company, the resale following the
required holding period under Rule 144 and the number of shares being sold
during any three month period not exceeding specified limitations.

            4.3   DISPOSITION OF WARRANT, EXERCISE SHARES AND UNDERLYING SHARES.

                  (a)   The Holder further agrees not to make any disposition of
all or any part of the Warrant, Exercise Shares or Underlying Shares in any
event unless and until:

                                       4.

<PAGE>

                                                               EXECUTION VERSION

                        (i)   The Company shall have received a letter secured
by the Holder from the Securities and Exchange Commission stating that no action
will be recommended to the Commission with respect to the proposed disposition;

                        (ii)  There is then in effect a registration statement
under the Act covering such proposed disposition and such disposition is made in
accordance with said registration statement; or

                        (iii) The Holder shall have notified the Company of the
proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and such
disposition shall not be contrary to any applicable federal and/or state
securities laws.

                  (b)   The Holder understands and agrees that all certificates
evidencing the shares to be issued to the Holder may bear the following legend:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT AS TO THE SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS
      IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

            4.4   ACCREDITED INVESTOR STATUS. The Holder is an "accredited
investor" as defined in Regulation D promulgated under the Act.

      5.    ADJUSTMENT OF EXERCISE PRICE AND EXERCISE SHARES.

            5.1   CHANGES IN SECURITIES. In the event of changes in the series
of equity securities of the Company comprising the Exercise Shares by reason of
stock dividends, splits, recapitalizations, reclassifications, combinations or
exchanges of shares, separations, reorganizations, liquidations, or the like,
the number and class of Exercise Shares available under the Warrant in the
aggregate and the Exercise Price shall be correspondingly adjusted to give the
Holder of the Warrant, on exercise for the same aggregate Exercise Price, the
total number, class, and kind of shares as the Holder would have owned had the
Warrant been exercised prior to the event and had the Holder continued to hold
such shares until after the event requiring adjustment. For purposes of this
Section 5, the "AGGREGATE EXERCISE PRICE" shall mean the aggregate Exercise
Price payable in connection with the exercise in full of this Warrant. The form
of this Warrant need not be changed because of any adjustment in the number of
Exercise Shares subject to this Warrant.

            5.2   AUTOMATIC CONVERSION. Upon the automatic conversion of all
outstanding shares of the series of equity securities comprising the Exercise
Shares into Common Stock, if applicable, this Warrant shall become exercisable
for that number of shares of Common Stock of the Company into which the Exercise
Shares would then be convertible, so long as such shares, if this Warrant had
been exercised prior to such offering, would have been converted into shares of
the Company's Common Stock pursuant to the Company's Certificate of
Incorporation. In

                                       5.

<PAGE>

                                                               EXECUTION VERSION

such case, all references to "Exercise Shares" shall mean shares of the
Company's Common Stock issuable upon exercise of this Warrant, as appropriate.

            5.3   CERTIFICATE OF ADJUSTMENTS. Upon each adjustment of the
Exercise Price and/or Exercise Shares, the Company shall promptly notify the
Holder in writing and furnish the Holder with a certificate of its Chief
Financial Officer setting forth such adjustment and the facts upon which such
adjustment is based.

      6.    FRACTIONAL SHARES. No fractional shares shall be issued upon the
exercise of this Warrant as a consequence of any adjustment pursuant hereto. All
Exercise Shares (including fractions) to be issued upon exercise of this Warrant
shall be aggregated for purposes of determining whether the exercise would
result in the issuance of any fractional share. If, after aggregation, the
exercise would result in the issuance of a fractional share, the Company shall,
in lieu of issuance of any fractional share, pay the Holder otherwise entitled
to such fraction a sum in cash equal to the product resulting from multiplying
the then current fair market value of one Exercise Share by such fraction.

      7.    TRANSFER OF WARRANT. Subject to applicable laws, this Warrant and
all rights hereunder are transferable, in whole or in part, at any time or times
by the Holder, upon delivery of this Warrant and the form of assignment attached
hereto to any transferee designated by Holder. The transferee shall sign a
customary investment letter in form and substance reasonably satisfactory to the
Company.

      8.    LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is
lost, stolen, mutilated or destroyed, the Company may, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of
a mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.
Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed
Warrant shall be at any time enforceable by anyone.

      9.    AMENDMENT. Any term of this Warrant may be amended or waived only
with the written consent of the Company and the Holder.

      10.   NOTICES, ETC. All notices required or permitted hereunder shall be
in writing and shall be deemed effectively given upon actual delivery to the
recipient. All communications shall be sent to the Company and to the Holder at
the addresses listed on the signature page hereof or at such other address as
the Company or Holder may designate by ten (10) days advance written notice to
the other parties hereto.

      11.   GOVERNING LAW. This Warrant and all rights, obligations and
liabilities hereunder shall be governed by and construed under the laws of the
State of Delaware as applied to agreements among Delaware residents, made and to
be performed entirely within the State of Delaware without giving effect to
conflicts of laws principles.

                            [SIGNATURE PAGE FOLLOWS]

                                       6.

<PAGE>

                                                               EXECUTION VERSION

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer as of the date first written above.

                                         NORTHWEST BIOTHERAPEUTICS, INC.

                                         By: /s/ Alton Boynton
                                             -----------------

                                         Name: Alton Boynton

                                         Title: President

                                         Address: 22322 20th Avenue SE
                                                  Suite 150
                                                  Bothell, WA 98021
                                                  Fax: (425) 608-3146

ACKNOWLEDGED AND AGREED:

TOUCAN CAPITAL FUND II, L.P.

By: /s/ Linda Powers
    ----------------

Name: Linda Powers

Title: Managing Director

Address: 7600 Wisconsin Avenue
         Suite 700
         Bethesda, MD  20814
         Fax: (240) 497-4060

                      [SIGNATURE PAGE TO WARRANT NO. PW-1]

<PAGE>

                                                               EXECUTION VERSION

                               NOTICE OF EXERCISE

TO: NORTHWEST BIOTHERAPEUTICS, INC.

      (1)   [ ] The undersigned hereby elects to purchase ________ shares of
___________ (the "EXERCISE SHARES") of NORTHWEST BIOTHERAPEUTICS, INC. (the
"COMPANY") pursuant to the terms of the attached Warrant, and tenders herewith
payment of the exercise price in full, together with all applicable transfer
taxes, if any.

            [ ]   The undersigned hereby elects to purchase ________ shares of
__________ (the "EXERCISE SHARES") of NORTHWEST BIOTHERAPEUTICS, INC. (the
"COMPANY") pursuant to the terms of the net exercise provisions set forth in
Section 2.1 of the attached Warrant, and shall tender payment of all applicable
transfer taxes, if any.

      (2)   Please issue a certificate or certificates representing said
Exercise Shares in the name of the undersigned or in such other name as is
specified below:

                        ___________________
                              (Name)

                        ___________________
                        ___________________
                            (Address)

      (3)   The undersigned represents that (i) the aforesaid Exercise Shares
are being acquired for the account of the undersigned for investment and not
with a view to, or for resale in connection with, the distribution thereof and
that the undersigned has no present intention of distributing or reselling such
shares except in accordance with applicable federal and state securities laws;
(ii) the undersigned is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision regarding its investment in the Company;
(iii) the undersigned is experienced in making investments of this type and has
such knowledge and background in financial and business matters that the
undersigned is capable of evaluating the merits and risks of this investment and
protecting the undersigned's own interests; (iv) the undersigned understands
that Exercise Shares issuable upon exercise of this Warrant have not been
registered under the Securities Act of 1933, as amended (the "SECURITIES ACT"),
by reason of a specific exemption from the registration provisions of the
Securities Act, which exemption depends upon, among other things, the bona fide
nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held
indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available; (v) the undersigned is aware that
the aforesaid Exercise Shares may not be sold pursuant to Rule 144 adopted under
the Securities Act unless certain conditions are met and until the undersigned
has held the shares for the number of years prescribed by Rule 144, that among
the conditions for use of the Rule is the availability of current information to
the public about the Company; and (vi) the undersigned agrees not to make any
disposition of all or any part of the aforesaid shares of Exercise Shares unless
and until there is then in effect a registration statement under the Securities
Act covering such proposed disposition and such

                                       1.

<PAGE>

                                                               EXECUTION VERSION

disposition is made in accordance with said registration statement or unless
such transaction is in compliance with applicable federal and state securities
laws.

______________________________            _______________________________
(Date)                                    (Signature)

                                          _______________________________
                                          (Print name)

                                       2.

<PAGE>

                                                               EXECUTION VERSION

                                 ASSIGNMENT FORM

                    (To assign the foregoing Warrant, execute this form
                    and supply required information. Do not use this
                    form to purchase shares.)

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

Name: __________________________________________________________________________
                                   (Please Print)

Address: _______________________________________________________________________
                                   (Please Print)

Dated: __________, 20__

Holder's Signature: ________________________________________

Holder's Address:  _________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatever. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

                                       3.

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