Document:

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                                                                    EXHIBIT 10.3

                             DEVELOPMENT AGREEMENT

       THIS DEVELOPMENT AGREEMENT (the "Agreement"), effective as of July 30,
1997 (the "Effective Date"), is entered into by and between Northwest Clinicals
LLC, a Washington limited liability company with an address at 120 Northgate
Plaza, Suite 236, Seattle, Washington 98125 ("Clinicals"), and Medarex, Inc., a
New Jersey corporation, with an address at 1545 Route 22 East, P.O. Box 953,
Annandale, New Jersey 08801 ("Medarex").

                                   BACKGROUND

       Clinicals desires to have the prostate specific membrane antigen ("PSMA")
gene cloned and a subclone isolated, and to have recombinant PSMA produce for
pre-clinical and clinical testing, and Medarex is willing to perform these tasks
and produce these materials on a contractual basis, subject to the terms and
conditions set forth herein.

       THE PARTIES HEREBY AGREE AS FOLLOWS:

                                   ARTICLE I.

                                   DEVELOPMENT

       1.1 Development.

              1.1.1 Development Activities. Subject to the terms and conditions
set forth in this Agreement, Medarex shall use its commercially reasonable
efforts to perform the tasks and produce the recombinant PSMA (the "Produce") as
set forth on Exhibit A in accordance with the schedule (Exhibit A, Section III)
and the Product specifications (the "Specifications") set forth on Exhibit B.
Medarex's performance of such tasks will commence upon receipt by Medarex of the
Materials (defined below) pursuant to Section 1.2.1.

              1.1.2 Changes. Clinicals shall have the right to request
reasonable changes in or modifications to the tasks and schedules set forth on
Exhibit A, provided such modifications are agreed to by the parties and provided
that Clinicals shall be responsible for all costs related to any such changes.

       1.2 Clinicals' Obligations.

              1.2.1 Materials. Promptly after the Effective Date, Clinicals
shall deliver to Medarex the materials listed in Section I of Exhibit A (the
"Materials"). Unless otherwise agreed, upon request by Clinicals (and at
Clinicals' expense and direction), after acceptance by Clinicals of the Product,
Medarex will return to Clinicals any remaining Materials.

              1.2.2 Assistance. Clinicals will perform all biological assays
necessary to determine the bioactivity of the Product. In addition, Clinicals
agrees to provide reasonable assistance as necessary to facility Medarex's
conduct of its activities pursuant to Exhibit A.

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       1.3 Product. Medarex shall use commercially reasonable efforts to perform
the tasks on Exhibit A, Section II, and shall deliver to Clinicals the Product
samples and Product in accordance with the Schedule set forth in Exhibit A,
Section III. Product samples and Product will be suitably packed in 100 mg
aliquots for shipment and shipped F.O.B. from Medarex's facility in New Jersey
pursuant to instruction from Clinicals. All costs of shipping and insurance, as
well as any special packaging expenses, shall be paid by Clinicals.

       1.4 Acceptance. Upon receipt of a Product sample from Medarex, Clinicals
shall evaluate such Product sample to confirm the bioactivity of such Product
sample. Clinicals shall have thirty (30) days following its receipt of Product
sample to provide a written report to Medarex confirming the bioactivity of such
Product sample, or to notify Medarex that such Product sample was inactive.
Medarex will ship Product to Clinicals upon receipt by Medarex of Clinicals'
report confirming the bioactivity of the applicable Product sample; Medarex will
reproduce any inactive Product sample and redeliver to Clinicals as soon as
possible another Product sample for testing.

       Following confirmation of the bioactivity of the Product sample,
Clinicals shall have ten (10) business days to inspect each subsequent shipment
of Product, and may reject Product that does not conform to the Specifications,
provided that Clinicals shall notify Medarex of any such Product rejection
within ten (10) business days of delivery.

       1.5 Rejection. Upon the rejection of any Product by Clinicals, Medarex
shall promptly deliver to Clinicals appropriate conforming replacement of the
rejected Product. Replacement Product shall also be subject to acceptance by
Clinicals under the procedure set forth in Section 1.4. If Clinicals does not
provide written notice of rejection to Medarex within ten (10) business days of
the receipt of Product by Clinicals, Clinicals shall be deemed to have accepted
the Product.

       1.6 Development Fee. In consideration for the satisfactory and timely
performance of the tasks specified in Exhibit A, Clinicals will pay to Medarex a
fee of seven hundred twenty-five thousand dollars ($725,000), to be paid as
follows:

                     a. One-third of the fee ($241,666) shall be paid to Medarex
upon full execution of this Agreement.

                     b. One-third of the fee ($241,666) shall be paid after
delivery of acceptable Product sample, conforming to the Specifications, for
preclinical testing.

                     c. Final payment of the balance of the fee shall be made
following delivery of five (5) grams of Product, conforming to the
Specifications, for clinical use, and after completion of the DMF filings.

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                                   ARTICLE II.

                                 CONFIDENTIALITY

       2.1 Confidential Information. The parties may from time to time disclose
to each other Confidential Information. "Confidential Information" shall mean
any information or material disclosed by one party to the other party hereto
which if disclosed in tangible form is marked "confidential" or with other
similar designation to indicate its confidential or proprietary nature or if
disclosed orally is indicated orally to be confidential or proprietary by the
party disclosing such information at the time of such disclosure and is
confirmed in writing as confidential or proprietary by the disclosing party
within thirty (30) days after such disclosure. Notwithstanding the foregoing,
Confidential Information shall not include any information that, in each case as
demonstrated by written documentation: (i) was already known to be the receiving
party, other than under an obligation of confidentiality, at the time of
disclosure; (ii) was generally available to the public or otherwise part of the
public domain at the time of its disclosure to the receiving party; (iii) became
generally available to the public or otherwise part of the public domain after
its disclosure and other than through any act or omission of the receiving party
in breach of this Agreement; (iv) was subsequently lawfully disclosed to the
receiving party by a person other than the disclosing party; or (v) was
developed by the receiving party without reference to any Confidential
Information of the disclosing party.

       2.2 Confidentiality. Each party hereby agrees: (i) to at all times hold
and maintain in strict confidence all Confidential Information of the other
party; and (ii) not to use or disclose any Confidential Information of the other
party at any time except to those employees and consultants who have a need to
know, and only as may be necessary to exercise its rights or perform its
obligations under this Agreement; provided that each party to whom Confidential
Information is disclosed agrees to be bound by the same terms regarding the
disclosure and use of confidential Information as set forth in this Article 2.
Nothing contained in this Article 2 shall prevent either party from disclosing
any Confidential Information of the other party to the extent such Confidential
Information is required by law or regulation to be disclosed; provided, however,
that the party subject to such disclosure requirement in order to enable the
other party to seek a protective order or otherwise prevent disclosure of such
Confidential Information.

       2.3 Return of Confidential Information. Upon termination or expiration of
this Agreement, each party shall return all Confidential Information in its
possession that was received from the other party, unless otherwise agreed in
writing.

                                  ARTICLE III.

                              INTELLECTUAL PROPERTY

       3.1 Ownership. Subject to the limited license granted in Section 3.2,
each party shall have and retain exclusive ownership of any and all of its
Confidential Information, technology, inventions, know-how, trade secrets,
documentation, data and all other tangible and intangible items, and all
intellectual property rights therein and thereto ("Technology").

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       3.2 License to Medarex. Clinicals hereby grants to Medarex a
non-exclusive, non-transferable license under the Materials and all Clinicals'
Technology only for such limited rights as may be necessary for the conduct by
Medarex of its obligations under this Agreement. This limited license shall
terminate automatically upon the termination of this Agreement unless otherwise
agreed in writing by Clinicals.

       3.3 Implied Licenses. No rights or licenses with respect to Medarex's
Technology or Clinicals' Technology or other intellectual property owned by
Medarex or Clinicals are granted or shall be deemed granted hereunder or in
connection herewith.

                                   ARTICLE IV.

                               REGULATORY MATTERS

       4.1 DMF Submission. Medarex shall submit a drug master file (the "DMF")
for the Product with the United States Food and Drug Administration (the "FDA")
in accordance with Exhibit A.

       4.2 Inspections. Clinicals' representatives shall have the right at
agreed times to visit Medarex's facilities during normal working hours to
observe the conduct of the activities set forth in Exhibit A, and to discuss
such activities with Medarex. In addition, Medarex shall permit the FDA to
conduct such inspections of Medarex's facilities as the FDA may request, and
shall cooperate with the FDA with respect to such inspections and any related
matters.

                                   ARTICLE V.

                         REPRESENTATIONS AND WARRANTIES

       5.1 Medarex. Medarex represents and warrants that: (i) it has full power
to enter into this Agreement and to grant and assign to Clinicals the rights
granted and assigned to Clinicals hereunder; (ii) it has obtained all necessary
corporate approvals to enter into and execute the Agreement; (iii) Medarex shall
materially comply with the requirements of any and all applicable federal,
state, and local laws, regulations, and rules governing activities to be
conducted by Medarex pursuant to this Agreement; (iv) Medarex will not transfer
or deliver the Material or the Product to any person or entity other than
Clinicals; and (v) upon shipment to Clinicals, all Product will materially
conform to the Specifications for such Product.

       5.2 Clinicals. Clinicals represents and warrants that: (i) it has full
power to enter into the Agreement; and (ii) it has obtained all necessary
corporate approvals to enter and execute into this Agreement; (iii) the
Materials provided by Clinicals will be suitable for use by Medarex in
connection with the activities set forth on Exhibit A.

       5.3 Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES STATED IN THIS
AGREEMENT, MEDAREX MAKES NO ADDITIONAL WARRANTIES, EXPRESS, IMPLIED, OR
STATUTORY, WITH RESPECT TO THE PRODUCT OR THE SUBJECT MATTER HEREIN AND ANY AND
ALL WARRANTIES OF MERCHANTABILITY,

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FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF ANY THIRD PARTY'S
INTELLECTUAL PROPERTY RIGHTS ARE EXPRESSLY EXCLUDED.

                                   ARTICLE VI.

                                 INDEMNIFICATION

       6.1 Clinicals. Clinicals shall indemnify, defend and hold harmless
Medarex, its directors, officers, employees, agents, successors and assigns
(each an "Indemnitee") from and against all liabilities, expenses or costs
(including reasonable attorneys' fees) ("Liability") arising out of any claim,
complaint, suit, proceeding or cause of action against any of them by a third
party alleging physical injury or death or otherwise resulting from (i) the
clinical testing of the Product by or on behalf of Clinicals; (ii) the safety of
the Product distributed by or on behalf of Clinicals; (iii) the promotion,
distribution, sale, handling, possession, or use of the Product by or on behalf
of Clinicals following its or their acceptance thereof in accordance with
Section 1.4 above; (iv) any negligent or intentionally wrongful acts or
omissions of Clinicals; (v) any claim that the Product infringes any third
party's intellectual property rights; and (vi) any breach by Clinicals of its
representations and warranties under Section 5.2 above, in each case subject to
the requirements set forth in Section 6.3 below.

       6.2 Medarex. Medarex shall indemnify, defend and hold harmless Clinicals,
its directors, officers, employees, agents, successors and assigns (each an
"Indemnitee") from and against all liabilities, expenses, and costs (including
reasonable attorneys' fees) (a "Liability") arising out of any claim, complaint,
suit, proceeding or cause of action against any of them by a third party
alleging physical injury or death or otherwise resulting from (i) the grossly
negligent or intentionally wrongful acts or omissions of Medarex in connection
with the performance of this Agreement, and (ii) any breach by Medarex of any of
its representations and warranties under Section 5.1, in each case subject to
the requirements set forth in Section 6.3 below.

       6.3 Procedure. In the event that any Indemnitee intends to claim
indemnification under this Article 6 it shall promptly notify the indemnifying
party in writing of such alleged Liability. The indemnifying party shall have
the right to control the defense and settlement thereof. The Indemnities shall
cooperate with the indemnifying party and its legal representatives in the
investigation of any action, claim or liability covered by this Article 6. The
Indemnitee shall not, except at its own cost, voluntarily make any payment or
incur any expense with respect to any claim or suit without the prior written
consent of the indemnifying party, which the indemnifying party shall not be
required to give.

                                  ARTICLE VII.

                              TERM AND TERMINATION

       7.1 Term. Unless terminated earlier in accordance with this Article 7,
the term of this Agreement shall commence on the Effective Date and shall
continue in full force until delivery of all Product as required under its
Agreement.

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       7.2 Termination for Breach. This Agreement may be terminated at any time
by either party if the other party breaches any material term or condition of
this Agreement and fails to remedy the breach within thirty (30) days after
being given written notice thereof.

       7.3 Termination by Clinicals. Every three (3) months during the term of
this Agreement, Medarex shall prepare and submit to Clinicals written reports
which detail the progress of, and future planned schedules for, the tasks to be
performed by Medarex under this Agreement. Further, at any time during the term
of this Agreement, if, in the exercise of its reasonable discretion, Clinicals
determines that Medarex is not capable of meeting its obligations under this
Agreement in a timely manner based upon the tasks to be performed and schedule
to be met by Medarex (Exhibit A, Sections II and III), Clinicals may give
Medarex notice thereof. Within ten (10) days following its receipt of said
notice, Medarex shall provide to Clinicals adequate assurance of future
performance acceptable to Clinicals. If said adequate assurance is not given or
is not reasonably acceptable to Clinicals, Clinicals may thereupon terminate
this Agreement at any time at its election.

       7.4 Effect of Termination.

              7.4.1 Accrued Rights and Obligations. It is understood that
termination or expiration of this Agreement shall not relieve a party from any
right or liability which, at the time of such termination or expiration, has
already accrued to the other party.

              7.4.2 Expenditures. Upon termination of this Agreement, Medarex
will immediately cease making expenditures attributable to the activities set
forth in Exhibit A. Upon termination, Clinicals shall be responsible only to
reimburse Medarex for all costs actually incurred in connection with its
performance of this Agreement prior to Medarex's receipt of notice of
termination, provided that in no event shall Medarex be entitled to receive more
than its portion of the fee set forth in Section 1.6 applicable to the tasks
actually performed by Medarex. Within thirty (30) days of the effective date of
termination, Medarex shall provide Clinicals a final written report of all costs
incurred and shall reimburse Clinicals for any portion of the fee under Section
1.5 which Clinicals advanced which is in excess of such total costs incurred by
Medarex.

              7.4.3 Survival. The provisions of Sections 3.1, 3.3, 7.4, and
Articles 2, 5, 6, and 8 shall survive the termination of this Agreement for any
reason. All other rights and obligations of the parties shall cease upon
termination of this Agreement.

                                  ARTICLE VIII.

                                  MISCELLANEOUS

       8.1 Governing Law. This Agreement shall be governed by the laws of the
State of Washington, without reference to conflicts of laws principles.

       8.2 Arbitration. Any dispute or claim arising out of or in connection
with this Agreement or the performance, breach or termination thereof, shall be
finally settled by binding

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arbitration in a mutually agreed neutral location (or in the absence of mutual
agreement, Chicago, Illinois) under the Commercial Arbitration Rules of the
American Arbitration Association by three (3) arbitrators appointed in
accordance with said rules. The decision and/or award rendered by the
arbitrators shall be written, final and non-appealable and may be entered in any
court of competent jurisdiction. The parties agree that, any provision of
applicable law notwithstanding, they will not request, and the arbitrator shall
have no authority to award, punitive or exemplary damages against any party. The
costs of any arbitration, including administrative fees and fees of the
arbitrators, shall be shared equally by the parties, unless otherwise determined
by the arbitrators. Each party shall bear the cost of its own attorneys' and
expert fees. Notwithstanding the foregoing, either party may apply to any court
of competent jurisdiction for injunctive relief without breach of thus
arbitration provision.

       8.3 Assignment. The parties agree that their rights and obligations under
this Agreement may not be assigned or otherwise transferred to a third party
without the prior written consent of the other party hereto. Notwithstanding the
foregoing, either party may transfer or assign its rights and obligations under
this Agreement to a successor to all or substantially all of its business or
assets relating to this Agreement whether by sale, merger, operation of law or
otherwise. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the parties hereto, their successors and assigns.

       8.4 Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER
PARTY OR ANY THIRD PARTY FOR ANY SPECIAL CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL
DAMAGES (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE
SAME), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER SUCH CLAIM IS
BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EVEN IF AN
AUTHORIZED REPRESENTATIVE OF SUCH PARTY IS ADVISED OF THE POSSIBILITY OR
LIKELIHOOD OF SAME. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING THE FAILURE OF
THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

       8.5 Independent Contractors. The relationship between the parties shall
be that of independent contracting parties and nothing in this Agreement shall
be construed to create any other relationship between Medarex and Clinicals.
Neither party shall have any right, power, or authority to assume, create or
incur any expense, liability or obligation, express or implied, on behalf of the
other.

       8.6 Severability. If any provision(s) of this Agreement shall be held
invalid, illegal or unenforceable by a court of competent jurisdiction, this
Agreement shall continue in full force and effect without said provisions.

       8.7 Waiver. The failure of a party to enforce any provision of the
Agreement shall not be construed to be a waiver of the right of such party to
thereafter enforce that provision or any other provision or right.

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       8.8 Entire Agreement. This Agreement with its Exhibits constitutes the
entire Agreement between Clinicals and Medarex with respect to all subject
matters covered by the Agreement and supersedes all prior communications,
understandings and agreements. This Agreement may only be modified by a written
document executed by both parties.

       8.9 Notices. Any notices made pursuant to this Agreement shall be in
writing and shall be deemed effective when sent by certified mail to the
addresses set forth above, or to such other address as each party may specify by
written notice with respect thereto.

       8.10 Counterparts. This Agreement may be executed in two counterparts,
each of which will be deemed an original and both of which together shall
constitute one instrument.

       8.11 Insurance. Each party shall procure and maintain appropriate levels
of comprehensive general liability or product liability insurance coverage of
their respective activities under this Agreement and shall upon request provide
certificates of such insurance coverage to the other party.

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first above written.

MEDAREX, INC., a New Jersey             NORTHWEST CLINICALS LLC, a
corporation                             Washington limited liability company

By:                                     By:
   ---------------------------------       -------------------------------------

Title:                                  Title:
      ------------------------------          ----------------------------------

Date:                                   Date:
     -------------------------------         -----------------------------------

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                                    EXHIBIT A

                             DEVELOPMENT ACTIVITIES

I.     Materials: Clinicals will provide to Medarex the following materials and
       documents (the "Materials"):

       1.     Human PSMA DNA clones in a mammalian expression vector;

       2.     Antibody for determination of PSMA and Western blot analysis;

       3.     Four (4) to five (5) milligrams of purified PSMA; and,

       4.     Protocol for purification of recombinant PSMA.

II.    Tasks: Medarex will perform the following services:

       1.     Clone the PSMA gene into Medarex's vector and express PSMA in
              Medarex's cell lines;

       2.     Isolate a clone secreting approximately 5 mg/liter of PSMA;

       3.     Develop serum-free medium conditions for recombinant cell line;

       4.     Develop and optimize a large scale production process capable of
              producing up to 5 grams of PSMA;

       5.     Produce initially several milligrams of PSMA for preclinical
              laboratory testing;

       6.     Produce 5 gm. of recombinant PSMA under GMP conditions that meet
              current FDA standards with regards to purity, sterility,
              pyrogenicity, safety, toxicity, and identity for well
              characterized biologicals; and which meet the Specifications set
              forth on Exhibit B.

       7.     File all required DMF with the FDA for recombinant PSMA.

III.   Schedule:

       1.     August 1, 1997 -- Clinicals delivers two PSMA constructs to
              Medarex;'

       2.     December, 1997 -- Medarex delivers approximately 10 mg of
              recombinant PSMA to Clinicals for preclinical testing;

       3.     March, 1998 -- Medarex delivers 150 to 200 mg GMP grade PSMA to
              Clinicals for Phase I clinical trials; Medarex files a DMF with
              the FDA;

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       4.     May, 1998 -- Medarex delivers remainder of the 5 gm of GMP grade
              PSMA to Clinicals; Medarex files a DMF with the FDA if necessary.

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                                    EXHIBIT B

                                 SPECIFICATIONS

All Product samples and Product shall pass the following testing procedures to
the reasonable satisfaction of Clinicals. Clinicals may perform any or all of
the following tests upon any delivery of Product samples or Product, in its
discretion:

       1.     Western Blot assay, using several PSMA specific monoclonal
              antibodies;

       2.     PSMA-loaded dendritic cells to stimulate PSMA specific cytotoxic T
              cells; and

       3.     Amino acid sequence analysis of a specific cyanogen bromide
              cleavage peptide from PSMA.<PAGE>   1

                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (this "Agreement"), dated as of April 19,
2001, and effective as of February 2, 2001 (the "Effective Date"), is made and
entered into by and between Northwest Biotherapeutics, Inc., a Delaware
corporation, (the "Company"), and Daniel O. Wilds (the "Executive").

        The Company and Executive hereby agree as follows:

1. EMPLOYMENT

The Company will employ Executive and Executive will accept employment by the
Company as President and Chief Executive Officer. During Executive's employment,
Executive shall serve the Company faithfully and to the best of his ability,
devoting substantially all his working time, attention and energies to the
business of the Company, unless otherwise approved in writing by the Board of
Directors of the Company (the "Board"). Subject to the direction of the Board,
Executive will have such reasonable duties, responsibilities, powers and
authority as are prescribed by the Board or the bylaws of the Company. Executive
shall not engage in any other business activity (except the management of
personal investments, charitable and civic activities, and, upon completion of
an initial public offering of the Company's Common Stock, participation as a
director for companies that do not compete with the Company, that in the
aggregate do not interfere with the performance of Executive's duties) without
first obtaining the written consent of the Board, but such consent shall not
unreasonably be withheld.

2. TERM OF AGREEMENT

The term of this Agreement ("Term") shall commence on February 2, 2001 and will
continue in effect until January 31, 2004, unless otherwise terminated as set
forth herein.

3. COMPENSATION

        (a) BASE SALARY. Company shall pay Executive a base salary at an annual
rate of Three Hundred Thousand Dollars ($300,000) payable in accordance with
Company's regular pay schedule for senior management. The Board shall review
Executive's salary and performance annually, and Executive shall be eligible for
an increase in his base salary based on such review. Upon the successful
completion of the Company's first firm commitment underwritten public offering
of its Common Stock registered under the Securities Act, Executive's
then-current base salary shall increase by 25%.

        (b) INCENTIVE COMPENSATION. Company shall establish an incentive
compensation plan and Executive shall participate in that plan. Within the first
90 days of each fiscal year, the Board and Executive shall discuss and agree on
financial and other performance objectives for Executive and Company for the
fiscal year. Executive shall receive an incentive compensation opportunity of up
to a maximum of 45% of his base salary based on his ability to meet these
objectives and as approved by the Board.

        (c) STOCK OPTIONS. The Company shall cause the Board to authorize the
issuance of non-qualified options to Executive to acquire shares of the
Company's common stock ("Shares"), under the following terms and conditions:

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                (1) Executive is granted an option to purchase Seventy-Nine
Thousand Three Hundred (79,300) Shares at an exercise price of $1.25 per Share.

                (2) Executive may, at his or the Company's option, pay for all
or any portion of the aggregate exercise price by delivering a combination of
any or all of the following:

                        (i) By delivering shares of the Company's common stock
        previously held by Executive which have a fair market value at the date
        of exercise equal to the aggregate exercise price to be paid by
        Executive upon such exercise. For purposes of this clause, the fair
        market value such shares is to be determined by the Board and shall be
        final and binding, provided that if the shares are publicly traded, the
        shares' fair market value shall be their average opening and closing
        prices on the date of exercise;

                        (ii) By delivering a properly executed exercise notice
        together with irrevocable instructions to a broker to promptly deliver
        to the Company the amount of sale or loan proceeds to pay the exercise
        price; or

                        (iii) By delivering a full recourse promissory note for
        all or part of the aggregate exercise price, payable on such terms and
        bearing such interest rate as determined by the Board (but in no event
        less than the minimum interest rate specified under the Internal Revenue
        Code at which no additional interest would be imputed and in no event
        more than the maximum interest rate allowed under applicable usury
        laws), which promissory note may be either secured or unsecured in such
        manner as the Board shall approve (including, without limitation, by a
        security interest in shares of the Company's stock).

                (3) The options shall vest in equal amounts monthly over 36
months; provided that, in the event the Company undergoes a change of control
("Change of Control") by virtue of a sale or exchange of shares in a transaction
or series of transactions occurring in any twelve-month period resulting in the
Company's stockholders as of the beginning of such twelve-month period holding
less than 50% of the outstanding equity and underlying options and warrants at
the end of such period, all of Executive's options shall become immediately
vested and fully exercisable upon such Change of Control.

                (4) The option term of Executive's vested options shall
terminate upon the first to occur of: (i) Executive's termination of employment
with the Company by Company for Cause (as such term is defined in Section 5(f))
or by Executive without Good Reason (as such term is defined in Section 5(g));
or (ii) ten years from the date the options are issued.

                (5) The Board will qualify the options for an exemption from
registration under the applicable federal and Washington State securities laws.

        (d) BENEFITS.

                (1) Executive shall be entitled to receive four weeks paid
vacation and all benefits (such as medical, dental, sick leave, disability, and
retirement benefits) as are generally

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available from time to time to employed senior executives of Company. For
purposes of this section, benefits offered to employees leased to Company are
not benefits under this section.

                (2) Company will maintain a reasonable policy of insurance for
directors and officers liability as determined by the Board. Executive will be
included within that policy of insurance with the premiums paid by Company.

4. TERMINATION

Employment of Executive pursuant to this Agreement may be terminated as follows:

        (a) BY EXECUTIVE. Executive may terminate his employment at any time,
for any reason.

        (b) BY THE COMPANY. The Company may terminate the employment of
Executive at any time, for any reason, with or without cause.

        (c) AUTOMATIC TERMINATION. This Agreement and Executive's employment
shall terminate automatically upon the death or total disability of Executive.
The term "total disability" as used in this Agreement shall mean Executive's
inability to perform the duties set forth in Section 1 for a period or periods
aggregating one-hundred twenty (120) calendar days in any 12-month period as a
result of physical or mental illness, loss of legal capacity or any other cause
beyond Executive's control, unless Executive is granted a leave of absence by
the Board. Executive and the Company acknowledge that Executive's ability to
perform the duties specified in Section 1 is of the essence of this Agreement.

5. TERMINATION PAYMENTS

In the event of termination of the employment of Executive, all compensation and
benefits set forth in this Agreement shall terminate, except as specifically
provided in this Section 5. For purposes of this Agreement, the effective date
of termination shall be thirty (30) days after the Executive or the Company
gives written notice of termination.

        (a) TERMINATION BY THE COMPANY WITH CAUSE. Upon termination by the
Company with Cause (as defined below), the Company shall pay Executive any
unpaid annual base salary, earned but unused vacation, and bonuses due (if any),
for services already performed (subject to normal withholding and other
deductions) to the effective date of termination of employment.

        (b) TERMINATION BY THE COMPANY WITHOUT CAUSE. Upon termination by the
Company without Cause (as defined below), the Company shall pay Executive any
unpaid annual base salary, any amount due but not paid under the Company's
Incentive Compensation Plan, earned but unused vacation and bonuses due (if any)
for services already performed (subject to normal withholding and other
deductions) to the effective date of termination of employment; and monthly
severance payments equivalent to six (6) months base salary and six (6) months
at one-half (1/2) base salary. These payments will be made in accordance with
the Company's customary payroll schedule, minus deductions required by law. The
Company will issue and file appropriate tax documents in connection with any
severance payments. Payment of the above-described severance compensation and
benefits is conditioned on Executive executing a

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full mutual release of all claims related to his employment with or termination
from Company in substantially the form attached hereto as Exhibit A. Such a
release will not include accrued and unpaid wages and benefits, claims to
industrial insurance, vested pension benefits or indemnification rights.
Executive will have the duty to mitigate the costs of Company by attempting to
obtain other employment within a reasonable time after termination; Executive's
compensation from such other employment will be credited against the amounts due
from Company to the extent the combined compensation from Executive's new
position and Company's payments under this Section 5(b) would otherwise exceed
Executive's base salary (or one-half (1/2) base salary, as the case may be) with
Company at the date of termination.

        (c) TERMINATION BY EXECUTIVE WITHOUT GOOD REASON. Upon termination by
Executive without Good Reason (as defined below), Executive shall be paid the
compensation as set forth in Section 5(a) and shall not be entitled to any other
benefits or payments.

        (d) TERMINATION BY EXECUTIVE WITH GOOD REASON. Upon termination by
Executive with Good Reason (as defined below), Executive shall receive the
compensation as set forth in Section 5(b) and shall not be entitled to any other
benefits or payments.

        (e) TERMINATION AS A RESULT OF DEATH OR TOTAL DISABILITY. In the event
of termination of Executive's employment pursuant to Section 4(c), Executive or
his estate shall be paid the compensation set forth in Section 5(a) and shall
not be entitled to any other benefits or payments.

        (f) DEFINITION OF "CAUSE." "Cause" as used in this Agreement shall mean
a determination by the Board that one or more of the following has occurred:

                willful misconduct, or dishonesty in the performance of
                Executive's duties that results in a material adverse effect on
                the Company;

                conviction of Executive of a felony involving an act of
                dishonesty, moral turpitude, deceit or fraud; or

                current use by the Executive of illegal substances.

        (g) DEFINITION OF "GOOD REASON." "Good reason" shall mean the occurrence
of any of the following events, without the consent of the Executive:

                a demotion or other material reduction in the nature or status
                of Executive's responsibilities; or"

                a material reduction in Executive's annual base salary or any
                failure by the Company to satisfy its duty to compensate the
                Executive as required under this Agreement.

6. INTELLECTUAL PROPERTY

Company shall own all right, title and interest (including patent rights,
copyrights, trade secret rights, mask work rights, sui generis database rights
and all other intellectual rights of any sort throughout the world) relating to
any and all inventions (whether or not patentable), works of

                                       4
<PAGE>   5

authorship, mask works, designs, know-how, ideas and information made or
conceived or reduced to practice, in whole or in part, by Executive during the
term of Executive's employment with Company to and only to the fullest extent
allowed by Washington Revised Code Annotated Section 49.44.140 (which is
attached as Exhibit B) (collectively "Inventions") and Executive will promptly
disclose all Inventions to Company. Executive will also disclose anything
Executive believes is excluded by Section 49.44.140 so that Company can make an
independent assessment. Executive hereby makes all assignments necessary to
accomplish the foregoing. Executive shall further assist Company, at Company's
expense, to further evidence, record and perfect such assignments, and to
perfect, obtain, maintain, enforce, and defend any rights specified to be so
owned or assigned. Executive hereby irrevocably designates and appoints Company
as its agents and attorneys-in-fact to act for and in Executive's behalf to
execute and file any document and to do all other lawfully permitted acts to
further the purposes of the foregoing with the same legal force and effect as if
executed by Executive. If Executive wishes to clarify that something created by
Executive prior to Executive's employment that relates to Company's actual or
proposed business is not within the scope of this Agreement, Executive has
listed it on Exhibit C. If Executive uses or (except where disclosed pursuant to
this Section 6 as a claimed exclusion to RCW 49.44.140 or in Exhibit C)
discloses Executive's own or any third party's confidential information or
intellectual property when acting within the scope of Executive's employment or
otherwise on behalf of Company, Company will have and Executive hereby grants
Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive,
sublicensable right and license to exploit and exercise all such confidential
information and intellectual property rights. To the extent allowed by law, this
section includes all rights of paternity, integrity, disclosure and withdrawal
and any other rights that may be known as or referred to as "moral rights,"
"artist's rights," "droit moral," or the like (collectively "Moral Rights"). To
the extent Executive retains any such Moral Rights under applicable law,
Executive hereby ratifies and consents to any action that may be taken with
respect to such Moral Rights by or authorized by Company and agree not to assert
any Moral Rights with respect thereto. Executive will confirm any such
ratifications, consents and agreements from time to time as requested by
Company.

7. PRIVACY

Executive recognizes and agrees that Executive has no expectation of privacy
with respect to Company's telecommunications, networking or information
processing systems (including, without limitation, stored computer files, email
messages and voice messages) and that Executive's activity and any files or
messages on or using any of those systems may be monitored at any time without
notice.

8. RESTRICTIVE COVENANTS

Executive acknowledges: (i) that Executive will have access during his
employment with Company to confidential information regarding all Inventions and
all other business, technical and financial information (including, without
limitation, the identity of and information relating to customers or employees)
Executive develops, learns or obtains during the term of Executive's employment
that relates to Company or the business or demonstrably anticipated business of
Company or that are received by or for Company in confidence, and that all such
information constitutes "Proprietary Information"; (ii) that information
regarding Proprietary Information constitutes a valuable asset and trade secret
of Company; and (iii) that it is reasonable for

                                       5
<PAGE>   6

Company to protect itself from misappropriation of Proprietary Information by
Executive upon termination of employment or otherwise. Accordingly, in
consideration of employment hereunder, and other good and valuable
consideration, Executive agrees to the following nondisclosure, noninterference
and noncompetition covenants during the Term and for a period of twenty-four
(24) months after the Term:

        (a) NONDISCLOSURE. Executive will not copy, remove, or disclose any
Proprietary Information, except as may be required by law or in the course of
performing services for Company, Executive will hold in confidence and not
disclose or, except within the scope of Executive's employment, use any
Proprietary Information at any time, even after Executive's employment with
Company ends for whatever reason. However, Executive shall not be obligated
under this paragraph with respect to information Executive can document by clear
and convincing evidence is or becomes readily publicly available without
restriction through no fault of Executive. Upon termination of Executive's
employment or if sooner requested, Executive will promptly return to Company all
items containing or embodying Proprietary Information (including all copies),
except that Executive may keep Executive's personal copies of (i) Executive's
compensation records, (ii) materials distributed to shareholders generally and
(iii) this Agreement;

        (b) NONINTERFERENCE. Executive will not employ, solicit, or seek to
employ any person who is an employee of Company or its subsidiaries (i) as of
the date hereof; (ii) during the Term, or (iii) at the time of employment or
solicitation; and

        (c) NONCOMPETITION AND NONSOLICITATION. Executive will not, directly or
indirectly, as principal, agent, employee, officer, shareholder, consultant or
otherwise, engage in any business that competes directly with Company or any of
its subsidiaries, and will not solicit or aid in soliciting, endeavor to obtain
as a customer or client, accept sales, marketing, financial, or consulting
business from, or perform sales, marketing, consulting or related business for
any person, firm, corporation, association or other entity: (i) that is or was a
Company customer for whom Executive performed any services or with whom
Executive had maintained substantial business contacts at any time during the
Term; or (ii) whose business Executive solicited, either alone or in conjunction
with others, on behalf of Company or any of its subsidiaries during the Term.

        Executive acknowledges and agrees: (i) that a breach of any of the
covenants contained in this Section 8 would cause irreparable injury to Company
and its subsidiaries for which monetary damages alone would be inadequate to
compensate and protect Company and its subsidiaries; (ii) that Company and its
subsidiaries may therefore seek and obtain injunctive relief to enjoin any
breach of such restrictive covenants in addition to, and not in limitation of,
any other legal or equitable remedies that are available as a matter, of law or
equity; and (iii) that specific enforcement of this Agreement by way of an
injunction shall not prevent Executive from earning a reasonable livelihood.
EXECUTIVE FURTHER ACKNOWLEDGES AND AGREES THAT THE NONDISCLOSURE,
NONINTERFERENCE, NONCOMPETITION AND NONSOLICITATION COVENANTS CONTAINED HEREIN
ARE NECESSARY FOR THE PROTECTION OF COMPANY'S LEGITIMATE BUSINESS INTERESTS AND
ARE REASONABLE IN DURATION, GEOGRAPHIC SCOPE, AND OTHER CONTENT. However, in the
event a court of competent jurisdiction should decline to enforce any term of
the nondisclosure, noninterference, noncompetition or nonsolicitation covenants,
as written herein, such covenant

                                       6
<PAGE>   7

shall be deemed to be modified to require confidentiality and restrict
Executive's interference, competition and solicitation with Company and its
subsidiaries to the maximum duration, geographic scope, and other content that
the court shall find enforceable.

9. ASSIGNMENT

This Agreement is personal to Executive and shall not be assignable by
Executive. If the Company changes it name or changes a limited liability
corporation to another corporate form, this Agreement will remain in effect
between the Executive and the Company's successor. All the terms and provisions
of this Agreement shall be binding on and shall inure to the benefit of and be
enforceable by the parties and their respective successors and permitted
assigns.

10. WAIVERS

No delay or failure by any party to this Agreement in exercising, protecting or
enforcing any of its rights, titles, interests or remedies hereunder, and no
course of dealing or performance with respect thereto, shall constitute a
waiver. The express waiver by a party of any right, title, interest or remedy in
a particular instance or circumstance shall not constitute a waiver in any other
instance or circumstance. All rights and remedies shall be cumulative and not
exclusive of any other rights or remedies.

11. ARBITRATION

Any controversies or claims arising out of or relating to this Agreement shall
be fully and finally settled by arbitration in the city of Seattle, Washington
in accordance with the Employment Arbitration Rules of the American Arbitration
Association then in effect (the "AAA Rules"), conducted by one arbitrator either
mutually agreed upon by the Company and Executive or chosen in accordance with
the AAA Rules, except that the parties shall have any right to discovery as
would be permitted by the Federal Rules of Civil Procedure for a period of 90
days following the commencement of such arbitration, and the arbitrator shall
resolve any dispute that arises in connection with such discovery. Judgment upon
the award rendered by the arbitrator may be entered in any court having
jurisdiction.

12. AMENDMENTS IN WRITING

No amendment, modification, waiver, termination or discharge of any provision of
this Employment Agreement, nor consent to any departure from any provision of
this Agreement by either party, shall in any event be effective unless the same
shall be in writing, specifically identifying this Agreement and the provision
intended to be amended, modified, waived, terminated or discharged and signed by
the Company and Executive, and each such amendment, modification, waiver,
termination or discharge shall be effective only in the specific instance and
for the specific purpose for which given. No provision of this Agreement shall
be varied, contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by the Company and Executive.

                                       7
<PAGE>   8

13. APPLICABLE LAW

This Agreement shall in all respects, including all matters of construction,
validity and performance, be governed by, and construed and enforced in
accordance with, the laws of the state of Washington, without regard to any
rules governing conflicts of laws.

14. SEVERABILITY

If any provision of this Agreement shall be held invalid, illegal or
unenforceable in any jurisdiction, for any reason, including, without
limitation, the duration of such provision, its geographical scope or the extent
of the activities prohibited or required by it, then, to the full extent
permitted by law (a) all other provisions shall remain in full force and effect
in such jurisdiction and shall be liberally construed in order to carry out the
intent of the parties as nearly as may be possible, (b) such invalidity,
illegality or unenforceability shall not affect the validity, legality or
enforceability of any other provision, and (c) any court or arbitrator having
jurisdiction shall have the power to reform such provision to the extent
necessary for such provision to be enforceable under applicable law.

15. HEADINGS

All headings used in this Agreement are for convenience only and shall not in
any way affect the construction of, or be taken into consideration in
interpreting, this Agreement.

16. COUNTERPARTS

This Agreement, and any amendment or modification entered into pursuant to
Section 12, may be executed in any number of counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original
and all of which counterparts, taken together, shall constitute one and the same
instrument.

17. ENTIRE AGREEMENT

This Agreement and the Indemnification Agreement between Executive and the
Company (and any addenda, amendments or extensions to those agreements)
constitute the entire agreement between the Company and Executive with respect
to the subject matters of this Agreement and the Indemnification Agreement.

NORTHWEST BIOTHERAPEUTICS, INC.             EXECUTIVE:

By:
   ---------------------------------        ---------------------------------
   George Hutchinson, Chairman              Daniel O. Wilds

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                                    EXHIBIT A

WAIVER AND RELEASE

For and in consideration of the severance payments and benefits set out in the
Employment Agreement attached hereto, Executive, on behalf of himself and his
agents, heirs, successors and assigns, expressly waives any claims against
Company and releases Company (including its officers, directors, stockholders,
managers, agents and representatives) from any and all claims, demands,
liabilities, damages, obligations, actions or causes of action of any kind,
known or unknown, past or present, arising out of, relating to, or in connection
with Executive's employment, termination of employment, or the holding of any
office with Company or any other related entity. The claims released by
Executive include, but are not limited to, claims for defamation, libel,
invasion of privacy, intentional or negligent infliction of emotional distress,
wrongful termination, constructive discharge, breach of contract, breach of the
covenant of good faith and fair dealing, breach of fiduciary duty, fraud, or for
violation of any federal, state or other governmental statute or ordinance,
including, without limitation, Title VII of the Civil Rights Act of 1964, the
federal Age Discrimination in Employment Act, the Americans with Disabilities
Act, the Family and Medical Leave Act, the Employment Retirement Income Security
Program or any other legal limitation on the employment relationship.

This waiver and release shall not waive or release claims (1) where the events
in dispute first arise after execution of this Release; (2) for rights or
benefits due under the Employment Agreement attached hereto; or (3) relating to
Executive's rights to indemnity as a corporate officer of Company.

Executive agrees he has been provided the opportunity to consider whether to
enter into this Release, and has voluntarily chosen to enter into it on this
date. This Release shall be effective when signed. Executive acknowledges that
he is voluntarily executing this Release, that he has carefully read and fully
understands all aspects of this Release and the attached Employment Agreement,
that he has not relied upon any representations or statements not set forth
herein or made by Company's agents or representatives, that he has been advised
to consult with an attorney prior to executing the Release, and that, in fact,
he has consulted with an attorney of his choice as to the subject matter and
effect of this Release.

---------------------------------           ---------------------------------
Date                                        Executive

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                                    EXHIBIT B

               WASHINGTON REVISED CODE ANNOTATED SECTION 49.44.140

Washington Revised Code Annotated Section 49.44.140 provides as follows:

        A provision in an employment agreement that provides that an employee
        shall assign or offer to assign any of the employee's rights in an
        invention to the employer does not apply to an invention for which no
        equipment, supplies, facilities, or trade secret information of the
        employer was used and that was developed entirely on the employee's own
        time, unless:

        (a) the invention relates (i) directly to the business of the employer,
        or (ii) to the employer's actual or demonstrably anticipated research or
        development, or

        (b) the invention results from any work performed by the employee for
        the employer.

        Any provision that purports to apply to such an invention is to that
        extent against the public policy of this state and is to that extent
        unenforceable.

        An employer shall not require a provision made void and unenforceable by
        subsection (a) of this section as a condition of employment or
        continuing employment.

<PAGE>   11

                                    EXHIBIT C

        None.

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