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EXECUTION VERSION

NORTHWEST BIOTHERAPEUTICS, INC.

LOAN AGREEMENT, SECURITY AGREEMENT and

10% CONVERTIBLE, SECURED PROMISSORY NOTE

		
	$500,000.00	November 10, 2004

SECTION 1.  GENERAL.

For
value received, Northwest Biotherapeutics, Inc., a Delaware corporation
(the “Maker” or the “Company”), hereby promises to pay to
the order of Toucan Capital Fund II, L.P. or its assigns (collectively, the
“Holder”), the principal amount of Five Hundred Thousand Dollars
($500,000) upon written demand by Holder made at any time on or after the first
anniversary of execution of this Loan Agreement, Security Agreement and 10%
Convertible, Secured Promissory Note (this “Note” or this
“Agreement”), or such earlier date as may be applicable under Sections
3 and 4 hereof (the “Maturity Date”). Maker shall pay interest on the
unpaid principal amount of this Note, accruing from and after the date hereof at
the rate of ten percent (10%) per annum, compounding annually (computed on the
basis of a 365-day year and the actual number of days elapsed) (the
“Interest Rate”). Accrued interest shall be payable upon the payment
of the principal of this Note. The principal of, and interest on, this Note
shall be payable in lawful currency of the United States of America by wire
transfer in immediately available funds to the account of Holder, as provided in
writing to Maker by Holder. All payments shall be applied first to fees, costs
and charges relating to this Note (including, without limitation, any costs of
collection), then to accrued and unpaid interest, and thereafter to principal.
This loan is made by Holder to Maker in anticipation of an equity financing.
Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Recapitalization Agreement.

SECTION 2.  PRE-PAYMENT.

This
Note may be pre-paid in whole or in part prior to the Maturity Date; provided
Maker provides Holder with 30 days prior written notice thereof, and provided
further that Holder shall have the option to convert this note in accordance
with Section 12 hereof by notifying Maker of Holder’s election on or before
the expiration of such thirty (30) day notice period. In the event of
prepayment, Maker shall pay a penalty in the amount of 1% of the principal and
accrued interest then outstanding under this Note, unless a greater or lesser
penalty is established or approved by the U.S. Small Business
Administration (“SBA”). Conversion of this Note shall not be deemed a
prepayment.

SECTION 3.  DEFAULT INTEREST.

Upon
the occurrence of an Event of Default (as hereinafter defined), the unpaid
principal amount and accrued and unpaid interest shall bear interest payable on
demand at the lesser of (i) fourteen percent (14%) per annum, (ii) the maximum
rate permitted under applicable rules and regulations of the SBA, or (iii) the
maximum rate allowed by law (the “Default Interest”). Such interest
shall accrue, commencing upon the occurrence of an Event of Default and
continuing until such Event of Default is cured or waived.

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EXECUTION VERSION

SECTION 4.    DEFAULTS.

     4.1  Definitions.  Each occurrence of any of the following events shall
constitute an “Event of Default”:

          (a)
if a default occurs in the payment of any principal of, interest on, or other  obligation
with respect to, this Note,  whether at the  due date thereof or upon  acceleration
thereof, and such default remains uncured  for five (5) business days after  written
notice thereof from Holder;

          (b)
if any  representation  or warranty of Maker made herein shall have been false or
misleading  in any material  respect,  or shall  have contained any material omission, as
of the date hereof;

          (c)
if a default  occurs in the due  observance  or  performance  of any  covenant or
agreement on the part of Maker to be observed or performed  pursuant to the terms of this
Note and such default remains uncured for five (5)  business days after written notice
thereof from Holder;

          (d)
if a  default  occurs  in  Maker's  performance  of  any of the  terms  and  conditions
of  that  certain  Amended  and  Restated Recapitalization  Agreement, dated  as of July
30, 2004 and as amended on October 22, 2004 and  November 10, 2004 (the “Recapitalization
Agreement”) or any Related  Recapitalization Document;

          (e)
if Maker shall (i) discontinue its business, (ii) apply for or consent to the
appointment of a receiver, trustee, custodian or liquidator of Maker or any of its
property, (iii) make a general assignment for the benefit of creditors, or (iv) file a
voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or
an arrangement with creditors, or take advantage of any bankruptcy, reorganization,
insolvency, readjustment of debt, dissolution or liquidation laws or statutes, or file
an answer admitting the material allegations of a petition filed against it in any
proceeding under any such law, provided, however, that insolvency of Maker
shall not  constitute a default, or the basis for a default, during the Bridge Period;

          (f)
if there shall be filed against Maker an involuntary petition seeking reorganization  of
Maker or the appointment of a receiver, trustee, custodian or liquidator of Maker or  a
substantial part of its assets, or an involuntary petition under any bankruptcy,
reorganization or insolvency law of any jurisdiction, whether now or hereafter in  effect
(any of the foregoing petitions being hereinafter referred to as an “Involuntary
Petition”) and such Involuntary Petition shall not have been dismissed within
ninety (90) days after it was filed, provided, however, that insolvency of
Maker shall  not constitute a default, or the basis for a default, during the Bridge
Period;

          (g)
if final  judgment(s)  for the  payment of money in excess of an  aggregate  of  $25,000
(excluding  any portion  thereof  that an insurance  company of nationally recognized

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standing
and creditworthiness has agreed to  pay) shall be rendered against  Maker and
the same shall remain undischarged for  a period of thirty (30) days;

          (h)
if there occurs any event that may 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
currently conducted and/or as it is proposed to be  conducted), or on any material assets
or any Intellectual Property or other  Collateral developed, owned, controlled, licensed,
possessed, or used by Maker,  or to which Maker has any right, option, entitlement or
claim, provided,  however, that ongoing weakening of Maker’s
financial  condition due to ongoing expenditures and Maker’s failure to obtain
equity  financing shall not constitute a default, or the basis for a default, during the
Bridge Period; or

          (i)
if Maker  deviates,  during the period  covered by such budget,  more than $10,000 in
aggregate  from the budget  included in theDisclosure  Schedule (as defined herein), or
takes any action or makes any promise,  undertaking or commitment that would result in
Maker incurring or accumulating  payables and/or other financial obligations of any kind,
whether current or  deferred, direct or indirect, for purposes other than as set forth in
budgets  expressly agreed to by Holder, and/or in any amounts in excess of the amounts
set forth in such agreed budgets, which equal or exceed $10,000 in  aggregate, and
which have not been approved in writing in advance by Holder.

     4.2  Cross-Default:  Maker acknowledges that the financing contemplated by this
Note is part of an integrated Recapitalization Plan, as set forth in the
Recapitalization Agreement and the Related Recapitalization Documents. Maker
further acknowledges and agrees that this Note is subject to all terms and
conditions set forth in the Recapitalization Agreement and the Related
Recapitalization Documents, and that the Recapitalization Agreement and the
Related Recapitalization Documents are subject to all of the terms and
conditions of this Note. Maker agrees that any default by Maker under any
provision of this Note, the Recapitalization Agreement or any of the Related
Recapitalization Documents will constitute a default under each other Related
Recapitalization Document and the Recapitalization Agreement.

     4.3  Remedies on Default.

          (a)
Upon each and every such Event of Default and at any time  thereafter  during the
continuance  of such Event of Default:  (i) any and  all indebtedness of Maker to Holder
under this Note or otherwise shall  immediately become due and payable, both as to
principal and interest (including  any deferred interest and any accrued and unpaid
interest and any Default  Interest); and (ii) Holder may exercise all the rights of a
creditor under  applicable state and/or federal law.

          (b)
In case any one or more Events of Default shall occur and be continuing, and
acceleration of this Note or any other indebtedness of Maker to Holder shall
have occurred, Holder may, inter alia, proceed to protect and enforce its
rights by an action at law, suit in equity and/or other appropriate proceeding,
whether for the specific performance of any agreement contained in this Note, or
for an injunction against a violation of any of the terms hereof or thereof or
in furtherance of the exercise of any power granted hereby or thereby or by law.
No

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right conferred
upon Holder by this Note shall be exclusive of any other  right referred to herein or
therein or now or hereafter available at law, in  equity, by statute or otherwise.

SECTION 5.    DEFENSES.

     5.1  No Offsets.  The obligations of Maker under this Note shall not be subject
to reduction, limitation, impairment, termination, defense, set-off,
counterclaim or recoupment for any reason.

     5.2  Usury Limitations.  It is the intention of the parties hereto to comply
with all applicable usury laws; accordingly, it is agreed that notwithstanding
any provisions to the contrary in this Note or any other agreements or
instruments between them, in no event shall such agreements or instruments
require the payment or permit the collection of interest (which term, for
purposes hereof, shall include any amount which, under applicable law, is deemed
to be interest, whether or not such amount is characterized by the parties as
interest) in excess of the maximum amount permitted by such laws. If any excess
of interest is unintentionally contracted for, charged or received under the
Note or under the terms of any other agreement or instrument between the
parties, the effective rate of interest shall be automatically reduced to the
maximum lawful rate of interest allowed under the applicable usury laws as now
or hereafter construed by the courts having jurisdiction thereof.

SECTION 6.    REPLACEMENT OF NOTE.

     Upon
receipt by Maker of reasonable evidence of the loss, theft, destruction, or
mutilation of this Note, Maker will deliver a new Note containing the same terms
and conditions in lieu of this Note. Any Note delivered in accordance with the
provisions of this Section 6 shall be dated as of the date of this Note.

SECTION 7.    EXTENSION OF MATURITY.

     Should
the principal of or interest on this Note become due and payable on other than a
business day, the due date thereof shall be extended to the next succeeding
business day, and, in the case of principal, interest shall be payable thereon
at the rate per annum herein specified during such extension. For the purposes
of the preceding sentence, a business day shall be any day that is not a
Saturday, Sunday, or legal holiday in the State of Delaware.

SECTION 8.    ATTORNEYS' FEES AND COLLECTION FEES.

     Should
the indebtedness evidenced by this Note or any part hereof be collected at law
or in equity or in bankruptcy, receivership or other court proceedings,
arbitration or mediation, or any settlement of any of the foregoing, Maker
agrees to pay, in addition to principal and interest due and payable hereon, all
costs of collection, including, without limitation, reasonable attorneys’
fees and expenses, incurred by Holder in collecting or enforcing this Note.

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EXECUTION VERSION

SECTION 9.   WAIVERS; CONSENT TO JURISDICTION.

     9.1  Waivers by Maker.  Maker hereby waives presentment, demand for payment,
notice of dishonor, notice of protest and all other notices or demands in
connection with the delivery, acceptance, performance or default of this Note.

     9.2  Actions of Holder not a Waiver.  No delay by Holder in exercising any
power or right hereunder shall operate as a waiver of any power or right, nor
shall any single or partial exercise of any power or right preclude other or
further exercise thereof, or the exercise of any other power or right hereunder
or otherwise; and no waiver or modification of the terms hereof shall be valid
unless set forth in writing by Holder and then only to the extent set forth
therein.

     9.3  Consent to Jurisdiction.  Maker hereby irrevocably submits to the
jurisdiction of any state or federal court sitting in the State of Delaware over
any suit, action, or proceeding arising out of or relating to this Note or any
other agreements or instruments with respect to Holder. Maker hereby irrevocably
waives, to the fullest extent permitted by law, any objection that Maker may now
or hereafter have to the laying of venue of any such suit, action, or proceeding
brought in any such court and any claim that any such suit, action, or
proceeding brought in any such court has been brought in an inconvenient forum.
Final judgment in any such suit, action, or proceeding brought in any such court
shall be conclusive and binding upon Maker and may be enforced in any court in
which Maker is subject to jurisdiction by a suit upon such judgment, provided
that service of process is effected upon Maker as provided in this Note or as
otherwise permitted by applicable law.

     9.4  Waiver of Jury Trial.  MAKER WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN MAKER
AND HOLDER RELATING TO THE SUBJECT MATTER OF THIS NOTE. THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS NOTE, INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENT OR
AGREEMENT RELATING TO THE LOAN.

     9.5  Service of Process.  Maker hereby consents to process being served in any
suit, action, or proceeding instituted in connection with this Note by delivery
of a copy thereof by certified mail, postage prepaid, return receipt requested,
to Maker, and/or by delivery of a copy thereof to a registered agent of Maker.
Refusal to accept delivery, and/or avoidance of delivery, shall be deemed to
constitute delivery. Maker irrevocably agrees that service in accordance with
this Section 9.5 shall be deemed in every respect effective service of process
upon Maker in any such suit, action or proceeding, and shall, to the fullest
extent permitted by law, be taken and held to be valid personal service upon
Maker. Nothing in this Section 9.5 shall affect the right of 

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Holder to serve
process in any manner otherwise permitted by law or limit the right of Holder  otherwise
to bring proceedings against Maker in the courts of any jurisdiction  or jurisdictions.

SECTION 10.    COVENANTS.

     10.1  Affirmative Covenants.  So long as this Note shall remain outstanding:

          (a)  Office.  Maker shall maintain its principal office, and the majority of its
employees, assets and operations, in the United States.

          (b)  Use
of Proceeds.  Maker will use the proceeds from this Note only for the
following  purposes:

	 	(i)
General operating expenses, expenses for the development and protection of its
intellectual property, and other usual and customary commercial and business  expenses
incurred in pursuing its business plan and strategy, on and after the  effective date
hereof; 

	 	(ii)
Audit expenses and regular and special SEC filing  expenses, for audits and  filings
occurring on or after the effective date  hereof, including, without limitation,  SEC
filings relating to solicitation of  any shareholder consents to the recapitalization  of
Maker; and 

	 	(iii)
Expenses of  accountants, attorneys, consultants and other  professionals (including,
without  limitation, the expenses of Investor described in  Section 4.11 of the
Recapitalization Agreement) relating to the recapitalization of  Maker,

in
each case only to the extent that both the nature and the amount of such
expenses are in conformity with the budget approved in advance in writing by
Holder and included in the Disclosure Schedule. Maker will not use the proceeds
from this Note for any other purpose. Without limiting the generality of the
foregoing, none of the proceeds will be used, without prior written agreement by
the Holder, (i) to purchase or carry (or refinance any borrowing, the proceeds
of which were used to purchase or carry) any “security” within the
meaning of the Securities Act of 1933, as amended (the “Securities
Act”), (ii) to repay any indebtedness or discharge any obligation to an
person or entity, other than trade payables incurred in the ordinary course of
business on or after the effective date hereof, and consistent with Maker’s
operating plans and budgets fully disclosed to the Holder prior to the Closing,
or (iii) to engage in business activities which would cause a violation of 13
CFR 107.720. This latter limitation prohibits, without limitation, the use of
proceeds: (i) directly or indirectly, for providing funds to others; (ii) for
the purchase or discounting of debt obligations; (iii) for factoring or
long-term leasing of equipment with no provision for maintenance or repair; (iv)
for engaging in real estate transactions such that Maker could reasonably be
classified under Major Group 65 (Real Estate) of the SIC Manual; (v) for
business activities wherein the assets of the business of Maker (the
“Business”) will be reduced or consumed, generally without
replacement, as the life of the Business progresses, and the nature of the
Business does not require that a stream of cash payments be made to the
financing sources of the Business, on a basis associated with the continuing
sale of assets (examples of such businesses would include real estate
development projects, the financing and production of motion pictures, and oil
and gas well exploration, development and production); (vi) for a foreign
operation; (vii) to provide capital to a 

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EXECUTION VERSION

corporation
licensed or sub-licensed  under the Small Business Investment Act, (viii) to acquire farm
land, (ix) to  fund production of a single item or defined limited number of items
generally  over a defined production period, such production to constitute the majority,
of  the activities of Maker (examples include electric generating plants), or (x)  for
any purpose contrary to the public interest (including, but not limited to,  activities
which are in violation of law) or inconsistent with free competitive  enterprise, in each
case, within the meaning of Section 107.720 of Title 13 of  the Code of Federal
Regulations.

          (c)  Seniority.  Except as otherwise expressly provided, and except for security interests
and liens described in items 2, 3 and 4 of Schedule 14.11 of the Disclosure
Schedule attached hereto as Exhibit B (the “Disclosure Schedule”), the
indebtedness evidenced by this Note: (i) shall be senior in all respects to all other
indebtedness or obligations of Maker of any kind, direct or indirect, contingent or
otherwise, other than obligations of Maker owed directly to the state or federal
government, and other than any other indebtedness or obligations of Maker to Holder; (ii) shall
not be made subordinate or subject in right of payment to the prior payment of any other
indebtedness or obligation of any kind, direct or indirect, contingent or otherwise,
other than obligations of Maker owed directly to the state or federal government, and
other than any other indebtedness or obligations of Maker to Holder.

          (d)  No Conflicting Agreements.  Maker shall not enter into any agreement that would
materially impair, interfere or conflict with Maker’s obligations hereunder.
Without Holder’s prior written consent, Maker shall not permit the inclusion in any
material contract to which it becomes a party of any provisions that could or might in
any way result in the creation of a security interest in any assets of Maker, including
without limitation any Collateral (as defined in Exhibit A hereto).

          
(e)  Disclosure of Material Adverse Events.  Within three (3) business days of Maker
obtaining knowledge thereof, Maker will notify Holder in writing of any event that
may 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), or on any material assets or any Intellectual Property or other Collateral
developed, owned, controlled, licensed, possessed, or used by Maker, or to which Maker
has any right, option, entitlement or claim. Operating expenditures in the ordinary
course of business and in accordance with operating budgets approved by Maker’s
Board of Directors and fully disclosed to Holder prior to the effective date hereof
shall not be deemed to be material adverse events solely because they weaken Maker’s
financial condition in the absence of new equity financing of Maker.

          
(f)  Financial Information.  So long as any principal and/or interest under this Note shall
remain outstanding:

	 	          (i)
  Promptly  after the end of each  fiscal  year (but in any event  prior to
February 28 of each  year) and at such other  times  as Holder may reasonably
request, Maker shall  deliver to Holder a written  assessment, in form and substance
satisfactory to Holder, of  the economic impact  of such Holder’s financing
hereunder, specifying the full-time  equivalent  jobs created or retained in connection
with such investment, and the 

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EXECUTION VERSION

	 	impact
of  the financing on Maker’s business in terms  of revenues and profits and on
taxes  paid by Maker and its employees.

	 	          (ii)
Maker shall  provide on a timely  basis to Holder all  financial  information  requested
from time to time by Holder,  including  without limitation its quarterly and annual
balance sheet and income statement.  Such financial information shall be certified by a
member of Maker’s senior  management. Financial information required shall also
include such information  as is necessary for Holder to file form 468 with the SBA.

	 	          (iii)
In addition to the information  specified in Section  10.1(f)(i) and (ii) above,  upon
request,  Maker agrees promptly  to  provide Holder with sufficient additional
information to permit Holder to comply  with (i) its obligations under the Small
Business Investment Act of 1958,  as amended, and the regulations promulgated thereunder
and related thereto and  (ii) provide any other information reasonably requested or
required by any  governmental agency asserting jurisdiction over Holder.

	 	          (iv)
Maker shall report its cash position and all expenditures and agreements,
commitments or undertakings for expenditures to Holder on a bi-weekly basis.

          
(g)  Access.  So long as any principal and/or interest under this Note shall remain
outstanding, Maker shall permit Holder and its agents or representatives to visit and
inspect Maker’s properties, to examine its books of account and records and to
discuss Maker’s affairs, finances and accounts with its officers, all at such times
during normal business hours as reasonably may be requested by Holder. Maker shall allow
SBA Examiners access to its books and records, as reasonably required by such Examiners
in connection with their annual audits of Holder or for any other legitimate purposes.

          
(h)  SBA Compliance.  Maker acknowledges that Holder
is a licensed Small Business Investment Corporation and thereby a participant in
the SBIC program of the U. S. Small Business Administration (“SBA”), and
as such is subject to the rules, regulations, guidance and direction of the SBA
on matters affecting its business and investment practices, and that such rules
and regulations affect the business activities and practices of the companies in
which Holder makes investments. Maker shall promptly and fully cooperate with
Holder to facilitate both Maker’s and Holder’s compliance with all
such SBA rules, regulations, guidance and direction.

          
(i)  Business Activity.  As long as this Note shall remain outstanding, Maker shall make
no change in its business activity that would make it or any of its business
activities non-compliant with SBA regulations and guidelines.

     10.2  Negative Covenants.  So long as this Note shall remain outstanding:

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EXECUTION VERSION

          (a)
  Indebtedness.  Maker shall not incur additional indebtedness, beyond the indebtedness
already existing as of the date hereof, for borrowed money in excess of $10,000, in
aggregate.

          (b)
  Liens.  Maker shall not grant to any person or entity a security interest, lien,
license, or other encumbrance of any kind, direct
or indirect, contingent or otherwise, in, to or upon any assets of Maker,
including, without limitation, any intellectual property of any kind, as defined
in Exhibit A hereto (respectively, the “Intellectual Property” and the
“Collateral”).

          (c)
  Sale or License of Assets.  Maker shall not sell, lease, transfer, assign or
otherwise dispose of or encumber (including, without limitation through licensing or
partnering arrangements) or abandon, conceal, injure or destroy any material assets
(whether tangible or intangible) of Maker (including, without limitation, any
Collateral (as defined in Section 11), other than with the prior written approval of
Holder and in the ordinary course of business.

          (d)
  Issuance of Capital Stock.  Except for (a) any transaction pursuant to an Unsolicited
Proposal that Maker accepts in accordance with the fiduciary exception provided in
Section 3.2 of the Recapitalization Agreement or (b) shares of capital stock issuable
upon exercise or conversion of warrants or convertible securities outstanding prior to
February 1, 2004, Maker shall not without Holder’s prior written approval: (i)
issue any shares of capital stock or other securities, or any instruments exercisable
for or convertible into capital stock or other securities, or (ii) make any promises,
commitments, undertakings, agreements or letters of intent for any of the issuances
described in (i) hereof.

          (e)
  Distributions and Redemptions.  Maker shall not declare or pay any dividends or make
any distributions of cash, property or securities of Maker with respect to any
shares of its common stock, preferred stock or any other class or series of its stock,
or, directly or indirectly (except for repurchases of common stock by Maker in
accordance with the terms of employee benefit plans or written agreement between Maker
and any of its employees approved by the Board of Directors of Maker prior to February
1, 2004), redeem, purchase, or otherwise acquire for any consideration any shares of its
common stock or any other class of its stock.

          (f)
  Hiring.  Maker shall not hire, engage, retain, or agree to hire, engage or retain, any
Personnel, except with Holder's express prior written approval, on a case by case basis.

          (g)
  Severance.  Maker shall not enter into, increase, expand, extend, renew or reinstate any
severance, separation, retention, change of control or similar agreement with any
Personnel, or agree, promise, commit or undertake to do so, except with Holder’s
prior written approval, on a case by case basis.

          (h)
  Facilities.  Maker shall not purchase, lease, hire, rent or otherwise acquire
directly or indirectly any rights in or to any asset or facility outside of the
ordinary course of business in an amount in excess of $10,000, in aggregate, or agree,
promise or commit to do so, except in accordance with the Maker’s budget that has
been approved by the Maker’s board of directors and the Investor.

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EXECUTION VERSION

               (i)
  Expenses.  Maker shall make no expenditures in excess of
$10,000 in aggregate other  than in accordancewith a  budget pre-approved by Holder.
Maker shall not deviate, during the period  covered by such budget, more than $10,000 in
aggregate from the budget  included in the Disclosure Schedule, nor take any action
or make any promise,  undertaking or commitment that would result in Maker incurring or
accumulating  payables and/or other financial obligations of any kind, whether current or
deferred, direct or indirect, for purposes other than as set forth in budgets  expressly
agreed to by Holder, and/or in any amounts in excess of the amounts  set forth in such
agreed budgets, which equal or exceed $10,000 in  aggregate, and which have not
been approved in writing in advance by Holder.

          (j)
  Other  Limitations.

               (i)
  Maker shall not change the nature of its business activity in a manner that
would  cause  a violation of 13 C.F.R.Section  107.720 and/or Section 107.760(b)
(including,  without  limitation, by undertaking  real estate, film production or oil and
gas  exploration  activities). In the  event that Maker changes the nature of its
business  activity such  that such  change would render Maker ineligible for financing
pursuant to  applicable SBA  rules and regulations, Maker agrees to use its best efforts
to facilitate  a  transfer or  redemption of any securities then held by Holder.

               (ii)
  Maker will at all times comply with the non-discrimination requirements of 13
C.F.R.  Parts 112, 113 and 117.

               (iii)  For
a period of at least one year  after the date of this  Note,  Maker  will  locate no more
than 49  percent  of the  employees or tangible assets of Maker outside the United States.

     10.3  
Additional Covenant.  Immediately after the effective date of this Note,
Maker shall recall all units of Maker’s Tangential Flow Filtration
(“TFF”) devices, and all specifications, diagrams, description or
other information relating to such TFF devices, or any similar device, from all
third parties who may currently have any of the foregoing. Maker will take all
necessary steps to ensure that such recall is effective as quickly as possible,
and in no event later than fifteen (15) days after the effective date hereof.
Until the later of the expiration of the Standstill Period (as defined in
Section 13 below) or the date on which this Note has been discharged in
full, Maker shall not sell, license, loan or otherwise in any way transfer or
distribute Maker’s Tangential Flow Filtration (“TFF”) devices or
any similar device, or any specifications, diagrams, description or other
information about the TFF devices, to any third party, or commit or promise or
enter into any understanding of any kind, direct or indirect, contingent or
otherwise, to do any of the foregoing in regard to Maker’s TFF devices or
any similar device, without the prior written consent of Holder in each case.

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EXECUTION VERSION

SECTION 11.    SECURITY INTEREST. 

     11.1  
First Priority in All Collateral.  To secure its obligations under this
Note whether at stated maturity, by acceleration or otherwise, Maker hereby
grants and pledges to Holder a first priority senior security interest in all of
Maker’s right, title and interest in, to and under all of Maker’s
tangible and intangible property, whether now owned, licensed or held or
hereafter acquired, licensed, developed, held or arising, as described in
Exhibit A hereto (the “Collateral”), and all proceeds of any
kind from any disposition of any such Collateral. Such security interest shall
be senior to any security interest in the Collateral granted the holders of the
Management Notes pursuant to any subordination agreement between Holder, the
holders of the Management Notes and Maker, and shall be senior to any other
security interest of any kind, direct or indirect, contingent or otherwise, in
the Collateral except for the security interests and liens described in items 2,
3 and 4 of Schedule 14.11 of the Disclosure Schedule (only to the amounts
set forth on such schedule) and any other indebtedness or obligations of Maker
to Holder. If certificates of title are now, or hereafter become, issued or
outstanding with respect to any of the Collateral, Maker promptly shall cause
the senior security interest of Holder to be properly noted thereon. Maker
agrees that the security interest herein granted has attached and shall continue
until Maker’s obligations under this Note have been paid, performed and
indefeasibly discharged in full.

     11.2  
Rights Cumulative.  The rights and remedies of Holder with respect to the
senior security interest granted hereby are in addition to those which are now
or may hereafter be available to Holder as a matter of law or equity. Each
right, power and remedy of Holder provided for herein, or now or hereafter
existing at law or in equity, shall be cumulative and concurrent and shall be in
addition to every right, power and remedy provided for herein, and the exercise
by Holder of any one or more of the rights, powers and/or remedies provided for
in this Note, or now or hereafter existing at law or in equity, shall not
preclude the simultaneous or later exercise by any person, including a grantee,
of any or all other rights, powers and/or remedies.

     11.3  
Documentation of Security Interest.  Maker shall execute, deliver, file,
amend, and re-file any financing statements, instruments (including without
limitation stock certificates), continuation statements, assignments, or other
security agreements that Holder may require from time to time to confirm the
liens arising out of this Note with respect to the Collateral. Maker agrees to
pay all reasonable costs associated with filing and/or re-filing of any
financing statements, continuation statements or other security agreements
required to perfect and to continue perfection of Holder’s security
interest in the Collateral and all reasonable costs required to evidence the
first priority of the security interest, including, without limitation,
reasonable attorneys’ fees. Maker authorizes Holder to file financing
statements under the UCC with respect to the security interest granted hereby
and agrees, upon request of Holder, to promptly and duly execute and deliver any
and all such further instruments and documents, and to take such further action,
as Holder may reasonably deem necessary or desirable to obtain the full benefits
of this grant of security interest.

     11.4   No
Conflicting Agreements.  Maker shall not enter into any agreement on or
after the effective date of this Note that would materially impair or conflict  with Maker’s
obligations hereunder without Holder’s prior written  consent. Without Holder’s
prior written consent, Maker  

11

EXECUTION VERSION

shall not
permit the  inclusion in any material contract to which it becomes a party on or after
the  effective date of this Note, of any provisions that could or might in any way
prevent the creation, perfection and maintenance of a first priority security  interest
in Maker’s rights and interest in any property included within the  definition of
the Collateral acquired under such contracts. Maker represents and  warrants that, as of
the effective date of this Note, there are no existing  agreements or undertakings that
would materially impair or conflict with  Maker’s obligations hereunder or that
could or might in any way prevent the  creation, perfection and maintenance of a first
priority security interest in  Maker’s rights and interest in any property included
within the definition  of the Collateral acquired under such contracts; except for
existing equipment  leases described in item 2 of Schedule 14.11 and the
statutory liens  described in items 3 and 4 of the Disclosure Schedule.

     11.5  
Notification Requirements.  Within two (2) business days of any officer,
director or employee of Maker obtaining knowledge thereof, Maker will promptly
notify Holder in writing of any event that materially adversely affects the
value of any material Collateral, the ability of Maker to dispose of any
material Collateral, or the rights and remedies of Holder in relation thereto,
including the levy of any legal process against any of
the Collateral.

     11.6  
Foreclosure Remedy.  Notwithstanding anything to the contrary herein or in
the Recapitalization Agreement or any other agreement or document, in the event
that Maker is unable to pay and discharge this Note in full on the Maturity
Date, subject to the compliance with the requirements of the Delaware Uniform
Commercial Code, nothing herein or in the Recapitalization Agreement or any
other agreement or document shall be deemed to preclude, limit or restrict
Holder from requiring the delivery of some or all of the Collateral in full or
partial satisfaction of Maker’s obligation under the Note. Alternatively,
Holder may, in its sole discretion, elect to cause some or all of the Collateral
to be sold, and the sale proceeds to be used to pay and discharge the Note in
full.

SECTION 12.    CONVERSION.

     12.1  
Holder’s Election.  Notwithstanding any other provision of this Note
or any applicable agreement or document, until, and/or in the absence of,
purchases for cash of a minimum of $15 million of Convertible Preferred Stock,
by Other Investors (as defined in the Recapitalization Agreement), on the terms
and conditions set forth in the Recapitalization Agreement and the Convertible
Preferred Stock Term Sheet, Holder may, in its sole discretion, elect to convert
any or all of the principal and/or interest due under the Note into any Equity
Security and/or Debt Security (each as defined below) and/or any combination
thereof, in each case that Holder shall designate in Holder’s sole
discretion (the securities so elected being the “Holder Designated
Securities”). Holder may make such determinations from time to time and at
any time before this Note has been discharged in full, and, as applicable, at
any time on or before the expiration of the thirty (30) day notice period
required under this Note in the event the Maker wishes to prepay this Note. For
purposes hereof, (i) the term “Equity Security” means any class or
series of equity security, or any combination of classes and/or series of equity
securities, of the Maker that have been authorized under the Maker’s
certificate of incorporation, as amended and/or restated, including by any
certificate of designation (the “Charter”), or any 

12

EXECUTION VERSION

new class or
series  of equity security, or any combination of new and/or existing classes and/or
series of equity securities, of the Maker for which the Maker has undertaken any
agreement, obligation, promise, commitment or letter of intent to obtain such
authorization and (ii) the term “Debt Security” means any evidence of
indebtedness of the Maker that the Maker has authorized, created or incurred, or  that
the Maker has undertaken any agreement, obligation, promise, commitment or  letter of
intent to authorize, create or incur.

12.2  
Automatic Conversion.  The principal amount of, and accrued and unpaid
interest on, this Note shall automatically convert into Convertible Preferred
Stock, upon the terms and conditions set forth herein and in the
Recapitalization Agreement, only in the event, and upon the closing of, the
purchase in cash (and not by conversion of debt, exercise of warrants or
options, or conversion or exercise of other securities or instruments), on the
terms and conditions set forth in the Convertible Preferred Stock Term Sheet, by
Other Investors, as defined in the Convertible Preferred Stock Term Sheet, of a
minimum of $15 million of Convertible Preferred Stock.

12.3  
Information for Holder’s Election.  Maker shall provide to Holder,
within two (2) business days after notice of each request by Holder, all
information reasonably requested by Holder in connection with any Equity
Securities and/or Debt Securities, to enable Holder to make decisions regarding
one or more conversions. In the event that Maker seeks to prepay this Note,
Maker shall deliver to Holder, simultaneously and together with the notice
required under Section 2 of this Note of Maker’s interest in prepaying the
Note, a summary of all material information, terms and conditions relating to
all Equity Securities and Debt Securities (including any “side”
letters or agreements or separate agreements).

12.4  
Conversion Price.  The conversion price for any conversion pursuant to
Section 12.2 shall be the lowest nominal or effective price per share paid by
the Other Investors who acquire such Convertible Preferred Stock (with the
exception of shares issuable upon exercise of the Initial Bridge Warrants). The
conversion price for any conversion into any equity or debt security pursuant to
Section 12.1 shall be the lowest of (i) the lowest nominal or effective price
per share paid by any investor at any time on or after the date one year prior
to the Effective Date (with the exception of (x) purchases of up to 35,000
shares of Common Stock pursuant to certain options to purchase, at a purchase
price of $0.0001, that were outstanding on the Effective Date and held by
members of the Board of Directors, as set forth in Schedule 2.7(d) to the
Recapitalization Agreement, and (y) shares issuable upon the exercise of the
Initial Bridge Warrants, each of which shall be excluded from consideration
under this section), (ii) the lowest nominal or effective price at which any
investor is entitled to acquire shares (including, without limitation, through
purchase, exchange, conversion or exercise) pursuant to any other security,
instrument, or promise, undertaking, commitment, agreement or letter of intent
of the Maker outstanding on or after the Effective Date or granted, issued,
extended or otherwise made available by the Maker at any time on or after the
date one year prior to the Effective Date (regardless of whether currently
exercisable or convertible) (with the exception of (x) certain options to
purchase up to 35,000 shares of Common Stock at a purchase price of $0.0001 that
were outstanding on the Effective Date and held by members of the Board of
Directors as set forth in Schedule 2.7(d) to the Recapitalization Agreement, and
(y) the Initial Bridge Warrants, each of which shall be excluded from
consideration under this section); and (iii) the lesser of $0.10 per share
or 35% discount to the average closing price per share of the Common Stock

13

EXECUTION VERSION

during any
twenty consecutive trading days (beginning with the twenty  consecutive trading days
prior to the Effective Date); provided, however,  that in no event shall the price
per share calculated pursuant to this clause  (iii) be less than $.04 per share.
The calculation required by clause  (ii) hereof shall initially be based upon Schedule
2.7(d) to the  Recapitalization Agreement. All other rights, preferences, privileges,
terms and  conditions received by Holder in connection with any conversion and/or any
securities issued by the Maker to Holder upon conversion, shall be no less  favorable to
Holder than the rights, preferences, privileges, terms and  conditions any other investor
in the Maker has received or is entitled to  receive with respect to the security into
which Holder is converting pursuant to  any other security, instrument, promise,
undertaking, commitment, agreement or  letter of intent of the Maker, whether or not such
rights, preferences,  privileges, terms and conditions for any other investor are
incorporated into  the agreements or documents relating to any conversion or any issuance
of the  security or other instrument to that investor or are provided separately, at any
time on or after one year prior to the Effective Date. In regard to each  conversion
hereunder, the Maker hereby agrees to take and/or arrange for all  necessary corporate
and related action to enable the execution of each such  conversion elected by Holder.

12.5  
No Impairment.  Maker shall not, by amendment of its Charter 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 Maker under and/or in connection with this Note, 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 Note 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 the Note against impairment.
Holder’s rights, preferences and privileges granted under and/or in
connection with any Holder Designated Securities 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.

SECTION 13.    STANDSTILL, EXCLUSIVITY AND CONFIDENTIALITY.

During
the Bridge Period and the Equity Financing Period, as defined in the
Recapitalization Agreement and in the Convertible Preferred Stock Term Sheet,
but excluding the periods from February 18, 2004 through February 29, 2004 and
from March 16, 2004 through the Effective Date (collectively the
“Standstill Period”) the parties shall have worked together,
and shall continue to work together, in good faith with best efforts to
implement the terms of the Recapitalization Agreement, upon which the parties
shall have reached binding agreement and which the parties shall have executed
as a condition precedent to the execution and funding of this Note. Except as
provided in the fiduciary exception set forth in Section 3.2 of the
Recapitalization Agreement, during the Standstill Period, the Maker and its
officers, directors, employees, agents, advisers, consultants, partners and
collaborators shall work only with Holder and its agents, advisers and
consultants, and shall have had, and shall continue to have, no discussions,
negotiations and/or communications of any kind with any other parties,
regardless of which party initiates or attempts to initiate any such contact or
communication, in regard to any potential equity or debt financing of the Maker
by parties other than Holder, and/or any joint venture, license, co-development
or other business arrangement by or with parties other than

14

EXECUTION VERSION

Holder.
Notwithstanding the fiduciary exception set forth in Section 3.2 of the  Recapitalization
Agreement, during the Standstill Period, the Maker and its  officers, directors,
employees, agents, advisers, consultants, partners and  collaborators shall maintain
confidentiality, and shall not have, and shall  continue not to provide copies, excerpts,
summaries, descriptions, or  communicate in any way with any third parties, either
directly or indirectly, as  to any aspects of the recapitalization of Maker and/or any
financing by Holder,  including, without limitation, the identity of the parties
involved, any terms  of the Recapitalization Agreement, this Note, the Related
Recapitalization  Documents, the Convertible Preferred Stock or any other matter relating
to the  recapitalization of Maker, or the progress or status of any activities or
processes relating to the recapitalization of Maker; provided, however,  nothing
herein shall prohibit the Maker from filing this Note, the  Recapitalization Agreement
and any Related Recapitalization Document with the  Securities and Exchange Commission
(the “SEC”), if required by  the regulations of the SEC (subject to the
covenant in Section 2.5(a) of  the Recapitalization Agreement). During the
Standstill Period, the Maker shall  not make any sales of equipment or other assets of
any kind, including, without  limitation, any non-essential laboratory equipment, and the
Maker shall comply  with Section 10.3 in regard to the TFF devices.

SECTION 14.    REPRESENTATIONS AND WARRANTIES.

Except
as expressly set forth (with reference to a section in this Note) in the
Disclosure Schedule attached hereto as Exhibit B (as updated as of each closing
contemplated by the Recapitalization Agreement and the Related Recapitalization
Documents), and only to the extent such exceptions are acceptable to Holder in
its sole discretion as of the date of this Note, and independently as of the
date upon which each additional Note is issued to Holder, and as of the date of
each closing, if any, of the Anticipated Equity Financing, Maker represents and
warrants to the following:

     14.1  
Organization, Good Standing and Qualification.  Maker is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all requisite corporate power and authority to carry
on its business. Maker is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure so to qualify would have a
material adverse effect on its business, properties, operations, prospects or
condition (financial or otherwise).

     14.2  
Authorization of Note, Etc.  The execution, delivery and performance by
Maker of this Note has been duly authorized by all requisite corporate action by
Maker in accordance with Delaware law. This Note is a valid and binding
obligation of Maker, enforceable against Maker in accordance with its terms,
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or other laws of general application effecting enforcements of
creditors’ rights or general principles of equity.

     14.3  
No Conflicts.  The execution, delivery, performance, issuance, sale and
delivery of this Note and the Related Recapitalization Documents, and compliance
with the provisions hereof by Maker, will not (a) to the knowledge of Maker,
violate any provision of any law, statute, rule or regulation applicable to
Maker or any ruling, writ, injunction, order, judgment or decree of any court,
arbitrator, administrative agency or other governmental body applicable to Maker
or any of its properties or assets or (b) conflict with or result in any
material breach of any

15

EXECUTION VERSION

of the terms,
conditions or provisions of, or constitute  (with notice or lapse of time or both) a
material default (or give rise to any  right of termination, cancellation or
acceleration) under, or result in the  creation of, any encumbrance upon any of the
material assets of Maker under, the  Charter or Bylaws of Maker (as they may be amended
to date) or any agreement or  instrument to which Maker is a party. As used herein, “encumbrance” shall
mean any liens, charges, encumbrances, equities, claims, options, proxies,  pledges,
security interests, licenses or other similar rights of any nature.

     14.4  
Compliance with Other Instruments.  Maker is not in violation of any term
of Maker’s Charter, as amended, including any certificate of designation
filed therewith, and/or Maker’s Bylaws. Maker is not, in any material
respect, in violation of any term of any mortgage, indenture, contract,
agreement, instrument, judgment, decree, order, statute, rule or regulation to
which Maker or any of such Collateral is subject. To the best of Maker’s
knowledge, no event has occurred which, with the passage of time or the giving
of notice, or both, would constitute a breach or violation, in any material
respect, under any applicable judgments, orders, writs, decrees, federal, state
and/or local laws, rules or regulations which would have a material adverse
affect on the condition, financial or otherwise, or operations of Maker (as it
is currently conducted and as it is proposed to be conducted) or on any material
assets or any Intellectual Property or other Collateral owned, controlled,
licensed, possessed, and/or used by Maker. To the best of its knowledge, Maker
has avoided every condition, and has not performed any act, the occurrence of
which would result in Maker’s loss of any right granted under any license,
distribution agreement or other agreement or Maker’s loss of any rights in
or to any Collateral.

     14.5  
Approvals.  Maker has obtained all necessary permits, authorizations,
waivers, consents and approvals of or by, and made all necessary notifications
of and/or filings with, all applicable persons (governmental and private), in
connection with the execution, delivery, performance, issuance, sale and/or
delivery of this Note, the Recapitalization Agreement and the Related
Recapitalization Documents, and consummation by Maker of the transactions
contemplated hereby and thereby, except as listed in Schedule 14.5

     14.6  
Capitalization. The authorized capital stock of Maker consists of
125,000,000 shares of Common Stock, par value $0.001 per share and 15,000,000
shares of Preferred Stock, par value of $0.001 per share. As of the date hereof,
19,028,779 shares of Common Stock are issued and outstanding and no shares of
preferred stock of any kind are issued and outstanding. No other shares of any
class or series of Maker’s capital stock are authorized and/or issued and
outstanding. All issued and outstanding shares of capital stock of Maker have
been duly authorized and validly issued, and are fully paid and non-assessable,
and have been offered, sold and delivered by Maker in compliance with all
applicable federal and state securities laws. Except as set forth in Schedule
14.6, no subscription, warrant, option, convertible security, or other right
(direct or indirect, contingent or otherwise) to purchase or otherwise acquire
any equity securities of Maker is authorized or outstanding, and there is no
agreement, promise, commitment, undertaking or letter of intent of any kind
(direct or indirect, contingent or otherwise) by Maker to issue any shares,
subscriptions, warrants, options, convertible securities, or other such rights,
or to distribute to holders of any of its equity securities any evidence of
indebtedness or asset. Except as set forth in Schedule 14.6, Maker has no
obligation of any kind (direct or indirect, contingent or otherwise) to
purchase, redeem or otherwise acquire any of its equity securities or any
interest therein or to pay any dividend or make any other distribution in

16

EXECUTION VERSION

respect
thereof. Schedule 14.6 includes a true, accurate and complete statement  describing the
total number of shares of Maker outstanding as of the date of  this Note (on a fully
diluted basis, including, without limitation, all warrants  and options outstanding
(whether or not currently exercisable), all convertible  instruments of any kind (whether
or not currently convertible), shares of all  classes of stock, and any agreements,
promises, commitments, undertakings or  letters of intent to issue any of the foregoing.

     14.7  
Authorization of the Shares.  Maker has, or before the first closing of
the Anticipated Equity Financing hereunder will have, authorized the issuance
and sale of a sufficient number of shares of Convertible Preferred Stock, par
value $0.001 per share, and Common Stock of the Maker to fully implement the
Recapitalization Plan, while maintaining such additional authorized but unissued
shares as reasonably determined by Holder to be appropriate. Of such authorized
shares, a sufficient number of shares shall be reserved for issuance upon any
exercise of the Bridge Warrants and/or Preferred Stock Warrants. If at any time
the number of authorized but unissued shares of Convertible Preferred Stock
and/or of Common Stock is not sufficient to effect the conversion of all then
outstanding convertible Notes and other instruments, and the exercise of all
then outstanding warrants, options and similar instruments, then, in addition to
such other remedies as may be available to Holder, including, without
limitation, the exercise of Holder’s right of first refusal set forth in
Section 2.7(f) of the Recapitalization Agreement, Maker shall take such
corporate action as may be necessary to increase its authorized but unissued
shares of Convertible Preferred Stock and/or Common Stock to such number of
shares as will be sufficient for such purposes. Such corporate action shall
include, without limitation, obtaining all requisite regulatory approvals and
any requisite shareholder approval of any necessary amendment to Maker’s
Charter.

     14.8  
Litigation.  Except as set forth in Schedule 14.8 of the Disclosure
Schedule, there is no action, suit, proceeding or investigation pending or, to
the knowledge of Maker, currently threatened against Maker, and/or its
directors, officers, advisers, agents, properties, assets or business, in each
case relating to Maker and/or its business, assets, operations or properties.
Maker is not a party or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by Maker
currently pending or which Maker intends to initiate.

     14.9  
No Liens.  Except for liens for the benefit of Holder, created by this
Note, the Recapitalization Agreement and/or any of the Related Recapitalization
Documents, and except as set forth in Schedule 14.9 of the Disclosure Schedule,
none of the material assets of Maker, including the Collateral, are subject to
any existing lien, pledge, security interest or other encumbrance of any kind,
direct or indirect, contingent or otherwise.

     14.10  
Full Disclosure.  Notwithstanding any other provision of this Note,
neither this Note, nor any exhibit hereto, nor any written report, certificate,
instrument or other information furnished to Holder in connection with the
transactions contemplated under and/or in connection with Note contain any
material misstatement (including, without limitation, any material omission), or
is misleading in any material respect.

     14.11  
No Other Security Interests or Other Encumbrances.  Except as set forth in
Schedule 14.11 (and only to the amounts set forth on such schedule), there are
no existing 

17

EXECUTION VERSION

security
interests, pledges, liens or other encumbrances of any  kind, direct or indirect,
contingent or otherwise (including without limitation  any licensing or partnering
arrangements or agreements), in or relating to any  assets of Maker, including, without
limitation, any Intellectual Property (as  defined herein) or other Collateral. All
existing security interests, pledges,  liens or other encumbrances of any kind, other
than those set forth in Schedule  14.11 hereto (and only to the amounts set forth on such
schedule), are  subordinate to the security interest established pursuant to Section 11
hereof,  all necessary consents, subordination agreements and waivers, if any, have been
obtained, and all amended filings and/or re-filings shall be made immediately  upon
execution of this Note.

     14.12  
“Small Business”.

               (a)  
Small Business Status.  Maker together with its “affiliates” (as  that
term is defined in Section 121.103 of Title 13 of Code of Federal  Regulations (the “Federal
Regulations”)) is a “small  business concern” within the meaning of
the Small Business Investment Act  of 1958, as amended (the “Small Business Act” or
“SBIA”), and the regulations promulgated thereunder, including Section
121.301(c) of Title 13, Code of Federal Regulations.

               (b)  
Information for SBA Reports.  Maker has delivered and/or will deliver to  Holder
certain information, set forth by and regarding the Maker and its  affiliates in
connection with this Note, on SBA Forms 480, 652 and Part A and B  of Form 1031.
This information delivered was true, accurate, complete and  correct, and any information
yet to be delivered will be true, accurate,  complete and correct, and in form and
substance acceptable to Holder.

               (c)  
Eligibility.\   Maker is eligible for financing by any Holder pursuant to  Section
107.720 of Title 13 of the Federal Regulations and any other SBA  regulations.

     14.13  
Intellectual Property.

               (d)  
Definitions.  “Intellectual Property” means all foreign and  domestic
intangible property and rights, owned, licensed, sub-licensed or  otherwise obtained by
Maker, including, without limitation, (i) inventions,  discoveries and ideas, whether
patentable or not, and all patents, registrations  and applications therefor, including
divisions, continuations,  continuations-in-part, requests for continued examination, and
renewal  applications, and including renewals, extensions and reissues (collectively,
“Patents”); (ii) confidential and proprietary information, trade  secrets and
know-how, including without limitation processes, schematics,  formulae, drawings,
prototypes, models, designs and customer lists  (collectively, “Trade Secrets”);
(iii) all data, slides, observations,  and laboratory results, produced by, for or on
behalf of Maker, or which Maker  has rights to obtain (collectively, “Data”);
(iv) all FDA  applications, registrations, filings and other rights (collectively, “FDA
Rights”) and all data and documentation supporting or relating thereto;  (iv)
published and unpublished works of authorship, whether copyrightable or not  (including,
without limitation, databases and other compilations of  information), copyrights therein
and thereto, and registrations and applications  therefor, and all renewals, extensions,
restorations and reversions thereof  (collectively, “Copyrights”); (v)
trademarks, service marks, brand  names, certification marks, collective marks, d/b/a’s,
Internet domain  names, logos, symbols, data, trade dress, assumed names, 

18

EXECUTION VERSION

fictitious
names, trade  names, and other indicia of origin, all applications and registrations for
the  foregoing, and all goodwill associated therewith and symbolized thereby,  including
all extensions, modifications and renewals of same (collectively,  “Trademarks”);
(vi) all other intellectual property or proprietary  rights, including, without
limitation, all claims or causes of action arising  out of or related to any
infringement, misappropriation or other violation of  any of the foregoing, including
rights to recover for past, present and future  violations thereof (collectively, “Other
Proprietary Rights”).

     “Intellectual
Property Contracts” means all agreements involving, relating to or
affecting the Intellectual Property, including, without limitation, agreements
granting rights to use the Licensed or Sub-Licensed Intellectual Property,
agreements granting rights to use Owned Intellectual Property, confidentiality
agreements, Trademark coexistence agreements, Trademark consent agreements and
non-assertion agreements.

     “Licensed
or Sub-Licensed Intellectual Property” means the Intellectual Property that
Maker is licensed, sub-licensed or otherwise permitted by other persons or
entities to use.

     "Owned
Intellectual Property" means the Intellectual Property owned by Maker.

     “Registered”
means issued, registered, renewed or the subject of a pending application.

               (e)
  Schedule 14.13 (“Intellectual Property”) sets forth a true and  complete list
and summary description of (A) all Registered or material Owned  Intellectual Property
(each identified as a Patent, Trademark, Trade Secret,  Copyright or Other Proprietary
Right, as the case may be); (B) all Licensed or  Sub Licensed Intellectual Property and
(C) all Intellectual Property Contracts.

               (f)
  All Intellectual Property is valid, subsisting and enforceable. No Owned  Intellectual
Property has been canceled, suspended, adjudicated invalid, not  maintained, expired or
lapsed, or is subject to any outstanding order, judgment  or decree restricting its use
or adversely affecting or reflecting Maker’s  rights thereto. No Licensed or
Sub-Licensed Intellectual Property has been  canceled, suspended, not renewed or
extended, adjudicated invalid, not  maintained, expired or lapsed, or is subject to any
outstanding order, judgment  or decree restricting its use or adversely affecting or
reflecting Maker’s  rights thereto.

               (g)
The Owned Intellectual Property is owned exclusively by Maker and has been used  with all
patent, trademark, copyright, confidential, proprietary and other  Intellectual Property
notices and legends prescribed by law or otherwise  permitted.

               (h)
  No  suit, action, reissue, reexamination, public protest, interference, opposition,
cancellation or other proceeding (collectively, “Suit”) is pending or
threatened concerning any claim or position:

                    (i)
  that Maker, or another person or entity, has violated any Intellectual Property  rights.
To Maker’s best knowledge, Maker is not violating and has not  violated any
intellectual property rights of any other party.

19

EXECUTION VERSION

                    (ii)
  that Maker, or another person or entity, has breached any Intellectual Property
Contract. There exists no event, condition or occurrence which, with the giving  of
notice or lapse of time, or both, would constitute a breach or default by  Maker, or a
breach or default by another person or entity, under any  Intellectual Property Contract.
No party to any Intellectual Property Contract  has given Maker notice of its intention
to cancel, terminate or fail to renew  any Intellectual Property Contract.

                    (iii)
  that the Intellectual Property has been violated or is invalid, unenforceable,
unpatentable, unregisterable, cancelable, not owned or not owned exclusively by  Maker.
No such claim has been threatened or asserted. To Maker’s best  knowledge, no valid
basis for any such Suits or claims exists.

               (i)
  To  Maker’s best knowledge, no other person or entity is violating, infringing  upon
or claiming rights incompatible with Maker’s rights to any  Intellectual Property.
Maker has provided to Holder copies of all information  reasonably available to it
relevant to intellectual property rights claimed by  third parties and possible
infringement thereof including, without limitation,  any freedom to practice or freedom
to operate opinions.

               (j)
  Except as set forth on Schedule 14.13(j), Maker owns or otherwise holds valid  rights to
use all Intellectual Property used in its business.

               (k)
  Maker has timely made all filings and payments with the appropriate foreign and  domestic
agencies and other parties required to maintain in full force and  effect all
Intellectual Property. Except as set forth on Schedule 14.13, no due  dates for filings
or payments concerning the Intellectual Property (including,  without limitation, office
action responses, affidavits of use, affidavits of  continuing use, renewals, requests
for extension of time, maintenance fees,  application fees and foreign convention
priority filings) fall due within ninety  (90) days prior to or after the closing,
whether or not such due dates are  extendable. Maker is in compliance with all applicable
rules and regulations of  such agencies and other parties with respect to the
Intellectual Property. All  documentation necessary to confirm and effect the
Intellectual Property, if  acquired from other persons or entities, has been recorded in
the United States  Patent and Trademark Office, the United States Copyright Office and
other  official offices.

               (l)
  Maker has undertaken and consistently implemented best efforts to protect the  secrecy,
confidentiality and value of all non-public Intellectual Property used  in its business
(including, without limitation, entering into appropriate  confidentiality agreements
with all officers, directors, employees and other  persons or entities with access to
such non-public Intellectual Property). Maker  management has not disclosed any such
non-public Intellectual Property to any  persons or entities other than (i) Maker
employees or Maker contractors who had  a need to know and use such non-public
Intellectual Property in the ordinary  course of employment or contract performance, or
(ii) prospective customers, and  in each case who executed appropriate confidentiality
agreements.

20

EXECUTION VERSION

               (m)
  Maker has taken all reasonable measures to confirm that no current or former  Maker
employee is or was a party to any confidentiality agreement or agreement  not to compete
that restricts or forbids, or restricted or forbade at any time  during such employee’s
employment by Maker, such employee’s  performance of Maker’s business, or any
other activity that such employee  was hired to perform or otherwise performed on behalf
of or in connection with  such employee’s employment by Maker.

     14.14  
SEC Filings; Financial Statements.

          (a)  
Maker has delivered or made available to Holder accurate and complete copies of  all
registration statements, proxy statements and other statements, reports,  schedules,
forms and other documents filed by the Maker with the SEC since  January 1, 2003, and all
amendments thereto (the “Maker SEC  Documents”). Except as set forth on
Schedule 14.14(a), all statements,  reports, schedules, forms and other documents
required to have been filed by  Maker with the SEC have been so filed on a timely basis.
As of the time it was  filed with the SEC (or, if amended or superseded by a filing prior
to the date  of this Note, then on the date of such filing): (i) each of the Maker SEC
Documents complied in all material respects with the applicable requirements of  the
Securities Act or the Exchange Act (as the case may be); and (ii) none of  the Maker SEC
Documents contained any untrue statement of a material fact or  omitted to state a
material fact required to be stated therein or necessary in  order to make the statements
therein, in the light of the circumstances under  which they were made, not misleading.

          (b)   The
financial statements (including any related notes) contained in the Maker  SEC Documents:
(i) complied as to form in all material respects with the  published rules and
regulations of the SEC applicable thereto; (ii) were  prepared in accordance with
generally accepted accounting principles applied on  a consistent basis throughout the
periods covered (except as may be indicated in  the notes to such financial statements
or, in the case of unaudited statements,  as permitted by Form 10-Q of the SEC, and
except that the unaudited financial  statements may not contain footnotes and are subject
to normal and recurring  year-end adjustments that will not, individually or in the
aggregate, be  material in amount), and (iii) fairly present the consolidated financial
position of Maker and its consolidated subsidiaries as of the respective dates  thereof
and the consolidated results of operations and cash flows of Maker and  its consolidated
subsidiaries for the periods covered thereby.

     14.15  
Liabilities.  Other than (i) tax liabilities to the State of Washington in  the
maximum amount of $492,000, (ii) amounts payable to Cognate Therapeutics and  (iii)
future lease payments to Benaroya Capital Co. LLC for Maker’s  premises lease not
yet due, Maker’s aggregate accrued, contingent and/or  other liabilities of any
nature, either mature or immature, as of the Amendment  Date, do not exceed $400,000, of
which (X) $276,000 are currently due payables  (including $204,966 for attorney and
auditor fees), (Y) $65,000 are the  aggregate balances of capital leases payable in
monthly installments in the  amounts set forth in the budget included in the Schedule of
Exceptions through  the first calendar quarter of 2006, decreasing thereafter, the last
of which is  fully amortized in May 2007, and (Z) $59,000 are accrued vacation and sick
pay.

     14.16  
Compliance with All Standstill Provisions.  Maker has complied in all
respects with all standstill, exclusivity and confidentiality provisions of (a)
this Note, the Recapitalization 

21

EXECUTION VERSION

Agreement and
the Related Recapitalization  Documents, (b) Section 13 of that certain 10% Convertible,
Secured Promissory  Note by and between Maker and Holder dated as of February 2, 2004 and
(c)  Section 13 of that certain 10% Convertible, Secured Promissory Note by and  between
Maker and Holder dated as of March 1, 2004.

SECTION 15.    INDEMNIFICATION

     15.1  
Indemnification Agreement.

          (a)  
In addition to all rights and remedies  available to Holder at law or in equity,  Maker
shall indemnify Holder and each subsequent holder  of this Note, and their respective
affiliates, stockholders, limited partners,  general partners, officers, directors,
managers, employees, agents,  representatives, successors and assigns (collectively, the
“Indemnified  Persons”) and save and hold each of them harmless against and pay
on behalf  of or reimburse such party as and when incurred for any loss, liability,
demand,  claim, action, cause of action, cost, damage, deficiency, tax, penalty, fine or
expense (other than any demand, claim, action or cause of action instituted by  Maker),
including interest, penalties, reasonable attorneys’ fees and  expenses, and all
amounts paid in investigation, defense or settlement of any of  the foregoing
(collectively, “Losses) which any such party may suffer,  sustain or become subject
to, as a result of, in connection with, relating or  incidental to or by virtue of:

	 	          (i)  
any material  misrepresentation  in, or material omission from, or breach of any of the
representations,  warranties,  statements,  schedules and/or exhibits hereto,
certificates or other instruments or documents  furnished to Holder by Maker in
connection with this Note; or

	 	          (ii)  
any material nonfulfillment or material breach of any covenant or agreement on the part
of Maker under this Note.

          (b)  
Notwithstanding  the  foregoing,  Maker  shall not be liable for any  portion of Losses
resulting  from the gross  negligence  or  willful misconduct of Holder or a subsequent
holder of this Note.

          (c)  
Within  twenty (20) days after  receipt of notice of  commencement  of any action or the
assertion of any claim by a third party, Holder  shall give Maker written notice thereof
together with a copy of such claim,  process or other legal pleading of such claim. Maker
shall have the right to  assist in the defense thereof by representation of its own
choosing.

     15.2  
Survival.  All indemnification rights hereunder shall survive the
execution and delivery of this Note and the consummation of the transactions
contemplated hereby (i) for a period of two years with respect to
representations and warranties made by Maker, and (ii) until fully performed
with respect to covenants and agreements made by Maker, regardless of any
investigation, inquiry or examination made for or on behalf of, or any knowledge
of Holder and/or any of the Indemnified Persons, or the acceptance by Holder of
any certificate or opinion.

22

EXECUTION VERSION

     15.3  
Payment.  Any indemnification of Holder or any other Indemnified Person by
Maker pursuant to this Section 15 shall be effected by wire transfer of
immediately available funds from Maker to an account designated by Holder or
such other Indemnified Person within fifteen (15) days after the determination
thereof.

SECTION 16.    INTEGRATION WITH RECAPITALIZATION PLAN

Maker
acknowledges and agrees that the funding provided by Holder pursuant to this
Note is only being provided as part of an integrated Recapitalization Plan, as
set forth in the Recapitalization Agreement. Maker further acknowledges and
agrees that this Note is subject to all terms and conditions set forth in the
Recapitalization Agreement.

SECTION 17.    MISCELLANEOUS.

     17.1  
Notices.  All notices, demands and requests of any kind to be delivered to
any party in connection with this Note shall be in writing and shall be deemed
to be effective upon delivery if (i) personally delivered, (ii) sent by
confirmed facsimile with a copy sent by nationally recognized overnight courier,
(iii) sent by nationally recognized overnight courier, or (iv) sent by
registered or certified mail, return receipt requested and postage prepaid,
addressed as follows:

	if to Maker: 	 	  Northwest Biotherapeutics, Inc.

                                                                                                 22322 20th Ave SE, Suite 150 

                                                                                                 Bothell, WA  98021

                                                                                                 Fax: (425) 608 3146 

Attn: Alton Boynton

	if to Holder:	 	  Toucan Capital Fund II, LP 

                                                                                                 7600 Wisconsin Avenue 

                                                                                                 Suite 700 

                                                                                                 Bethesda, MD 20814

                                                                                                 Fax: (240) 497-4060 

                                                                                                 Attention: Linda F. Powers

or to
such other address as the party to whom notice is to be given may have furnished
to the other parties hereto in writing in accordance with the provisions of this
Section.

     17.2  
Parties In Interest.  This Note shall bind and inure to the benefit of
Holder, Maker and their respective successors and permitted assigns. Maker shall
not transfer or assign this Note without the prior written consent of Holder.
Holder may transfer and assign this note without the prior consent of Maker.

     17.3  
Entire Agreement.  This Note together with the Disclosure Schedule and the
Recapitalization Agreement contains the entire understanding of the parties with
respect to the subject matter hereof and supersedes all prior agreements and
understandings among the parties with respect thereto.

23

EXECUTION VERSION

     17.4  
Governing Law.  This Note shall be governed by and construed in accordance
with the laws of the State of Delaware (without giving effect to principles of
conflicts of laws of the State of Delaware or any other state).

     17.5  
Headings.  The section and paragraph headings contained in this Note are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Note.

     17.6  
Amendments.  No provision of this Note may be amended or waived without
the express written consent of both Maker and Holder, provided, however, that
Holder may waive any provision hereof that inures to the benefit of Holder
without the prior written consent of Maker. Also notwithstanding anything to the
contrary, this Note shall 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 SBIC’s.

     17.7  
Nature of Obligation.  This Note is being made for business and investment
purposes, and not for household or other purposes.

     17.8  
Expenses.  Maker shall pay, reimburse or otherwise satisfy, upon demand of
Holder, all fees, costs and expenses incurred and/or undertaken, and to be
incurred and/or undertaken, by Holder relating to the preparation for,
development of and implementation of the Recapitalization Plan set forth in the
Recapitalization Agreement, including, without limitation, all due diligence
expenses and all expenses relating to the Bridge Funding, the Anticipated Equity
Financing and the transactions contemplated thereby and the documentation of the
foregoing (including, without limitation all legal fees and expenses and costs
incurred and to be incurred in connection with any SBA filings), which shall be
satisfied by Maker upon Holder’s demand, including but without limitation
upon each closing of the Bridge Funding or Anticipated Equity Financing. This
obligation shall apply regardless of whether or not all of the transactions
contemplated in the Recapitalization Agreement close. At each closing of Bridge
Funding and/or Anticipated Equity Financing, at Holder’s sole discretion,
and with respect to any or all of such fees, costs and expenses accrued through
such closing, Maker shall (a) pay Holder in cash concurrently with such closing
(or at Holder’s sole discretion, Investor may withhold such amount from the
wire of investment proceeds), (b) issue a Note in the form hereof in principal
amount equal to such fees, costs and expenses (which at Holder’s option may
instead be evidenced as an increase in the principal amount of any Note issued
in connection with such closing); or (c) treat such fees, costs and expenses as
an unsecured payable. At any time following such closing, Holder may require any
amounts that it elected to have Maker treat as unsecured amounts payable to be
paid in cash or satisfied by issuance of a Note in the principal amount of some
or all of such unsecured obligation.

24

EXECUTION VERSION

     IN
WITNESS WHEREOF, Maker has caused this Note to be duly executed by its duly
authorized person(s) as of the date first written above.

		
		NORTHWEST BIOTHERAPEUTICS, INC.
 

By  /s/ Alton Boynton

Name:  Alton Boynton

Title:  President

Consent and Agreement

     Toucan
Capital Fund II, L.P. consents to the loan and security interest granted by Maker in the
foregoing Note.

		
		TOUCAN CAPITAL FUND II, L.P.
 
By  /s/ Linda Powers

Name:  Linda Powers

Title:  Managing Director

25

EXECUTION VERSION

EXHIBIT A

DESCRIPTION OF COLLATERAL

     The
“Collateral” consists of all of Maker’s right, title and interest
(in each case, whether now owned or hereafter acquired) in and to the following:

     (a)
All intellectual property of any kind, whether owned, licensed or otherwise
permitted to be used, and whether now held or hereafter acquired or developed
(the “Intellectual Property”). Such Intellectual Property shall
include, without limitation, all foreign and domestic intangible property and
rights, owned, licensed or otherwise obtained by Maker, including, without
limitation, (i) trademarks, service marks, brand names, certification marks,
collective marks, d/b/a’s, Internet domain names, logos, symbols, trade
dress, assumed names, fictitious names, trade names, and other indicia of
origin, all applications and registration for the foregoing, and all goodwill
associated therewith and symbolized thereby, including all extensions,
modifications and renewals of same, including without limitation those items
reference on Appendix 1 hereto (collectively, “Trademarks”);
(ii) inventions, discoveries and ideas, whether patentable or not, and all
patents, registrations and applications therefor, including divisions,
continuations, continuations-in-part, requests for continued examination, and
renewal applications, and including renewals, extensions and reissues, including
without limitation those items reference on Appendix 2 hereto (collectively,
“Patents”); (iii) confidential and proprietary information,
trade secrets and know-how, including, without limitation, processes,
schematics, formulae, drawings, prototypes, models, designs and customer lists
(collectively, “Trade Secrets”); (iv) published and unpublished
works of authorship, whether copyrightable or not (including, without
limitation, databases and other compilations of information), copyrights therein
and thereto, and registrations and applications therefor, and all renewals,
extensions, restorations and reversions thereof (collectively,
“Copyrights”); (v) all FDA applications, registrations, filings
and other rights (collectively, “FDA Rights and Materials”);
(vi) all results, information and data arising from, or obtained in connection
with, research, development, pre-clinical work and/or clinical trials
(collectively, “Data”); and (vii) all other intellectual
property or proprietary rights and claims or causes of action arising out of or
related to any infringement, misappropriation or other violation of any of the
foregoing, including rights to recover for past, present and future violations
thereof (collectively, “Other Proprietary Rights”).

     (b)
All goods and equipment now owned or hereafter acquired, including, without
limitation, all machinery, fixtures, vehicles (including motor vehicles and
trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located.

     (c)
All inventory, now owned or hereafter acquired, including, without limitation,
all merchandise, raw materials, parts, supplies, packing and shipping materials,
work in process and finished products including such inventory as is temporarily
out of Maker’s custody or possession or in transit and including any
returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing an any documents
of title representing any of the above.

26

EXECUTION VERSION

     (d)
All contract rights, general intangibles and intellectual property, now owned or
hereafter acquired, including, without limitation, goodwill, trademarks, service
marks, trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, computer code, copyrights, literature, reports, catalogs,
design rights, income tax refunds, payments of insurance and rights to payment
of any kind.

     (e)
All now existing and hereafter arising accounts, contract rights, royalties,
license rights and all other forms of obligations owing to Maker arising out of
the sale or lease of goods, the licensing of technology or the rendering of
services by Maker, whether or not earned by performance, and any and all credit
insurance, guaranties, and other security therefore, as well as all merchandise
returned to or reclaimed by Maker.

     (f)
All documents, cash, deposit accounts, securities, securities entitlements,
securities accounts, investment property, financial assets, letters of credit,
certificates of deposit, instruments and chattel paper now owned or hereafter
acquired and Maker’s books relating to the foregoing.

     (g)
Each item of equipment, or personal property whether now owned or hereafter
acquired, together with all substitutions, renewals or replacements of and
additions, improvements, and accessions to any and all of the foregoing, and all
proceeds from sales, renewals, releases or other dispositions thereof.

     (h)
All Maker’s books relating to the foregoing and any and all claims, rights
and interests in any of the above, whether now owned or hereafter acquired, and
all substitutions for, additions and accessions to and proceeds thereof.

Notwithstanding
the foregoing, to the extent any of Maker’s licensed Intellectual Property
prohibits the transfer or encumbrance of such licensed Intellectual Property
(the “Restricted Intellectual Property”) without prior consent
of the owner or licensor thereof, such Restricted Intellectual Property is
hereby conditionally included within the definition of Collateral, subject to
receipt, by or on behalf of Maker, of any required consents. If requested by
Holder, Maker shall use its best efforts to obtain the required consents under
any Restricted Intellectual Property within thirty (30) days of such request.

27

EXECUTION VERSION

Appendix 1
Trademarks

28

EXECUTION VERSION

Appendix 2
Patents

29

EXECUTION VERSION

EXHIBIT B

DISCLOSURE SCHEDULE

30AutoCoded Document

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. BW-6	November
10, 2004

     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 on October 22, 2004 and November 10, 2004, by and among the
Company and the Holder (the “Recapitalization
Agreement”).

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

	 	(a)	“Capital
Stock” shall mean the securities for  which this Warrant is
exercisable as provided in Section 2.2 hereof.

	 	(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 the lesser of (i)  $0.10 per share (subject to
adjustment as provided in Section 5) or (ii) a 35%  discount to the average closing price
during the twenty trading days prior to  the first closing of the sale by the Company of
Preferred Stock as contemplated  by the Recapitalization Agreement; provided, however,
that in no event will the  Exercise Price be less than $0.04 per share (subject to
adjustment pursuant to  Section 5).

	 	(e)	“Exercise
Shares” shall mean a number of shares  of Capital Stock equal to the
quotient of (i) 100% (i.e., 1.0) multiplied by the  Note Amount, divided by (ii) the
Denominator Share Price, which in this case  equals 5,000,000 shares of Capital Stock,
subject to adjustment pursuant to the  terms herein.

1.

EXECUTION
VERSION

	 	(f)	“Note
Amount” shall mean $500,000.

     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 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) 

2.

EXECUTION
VERSION

	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) 

     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.

     2.2
Securities for Which Warrant is Exercisable.  In the event the Convertible
Preferred Stock is approved and authorized, and the terms and conditions are the
same as set forth in the Recapitalization Agreement and in the Convertible
Preferred Stock Term Sheet, and Other Investors have purchased in cash (and not
by conversion of debt, exercise of warrants or options, or conversion or
exercise of other securities or instruments) a minimum of $15 million of such
Convertible Preferred Stock, on the terms and conditions set forth in the
Recapitalization Agreement and in the Convertible Preferred Stock Term Sheet,
then, subject to Section 5 hereof, this Warrant shall be exercisable solely for
such Convertible Preferred Stock. However, if, for any reason, such Convertible
Preferred Stock is not approved or authorized, and/or is approved or authorized
on any terms different than any terms set forth in the Recapitalization
Agreement and in the Convertible Preferred Stock Term Sheet, and/or if Other
Investors have not purchased in cash (and not by conversion of debt, exercise of
warrants or options, or conversion or exercise of other securities or
instruments) a minimum of $15 million of such Convertible Preferred Stock, on
the terms and conditions set forth in the Recapitalization Agreement and in the
Convertible Preferred Stock Term Sheet, this Warrant shall be exercisable for
any Equity Security and/or Debt Security and/or any combination thereof, in each
case that Holder shall designate in Holder’s sole discretion.

     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, then, in addition  to such other remedies as may be available to Holder,
including, without  limitation, the exercise of Holder’s right of first refusal set
forth in  Section 2.7(f) of the Recapitalization Agreement, the Company will take such
corporate action as shall

3.

EXECUTION
VERSION

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 Charter 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 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, 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

4.

EXECUTION
VERSION

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 the Convertible Preferred Stock
Term Sheet.

              
   (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, the
Exercise Shares or the Underlying Shares in any event unless and  until:

                    
   (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.

5.

EXECUTION
VERSION

          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 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
  Dilutive Issuances. If at any time prior to exercise of this Warrant, the
Company issues or sells, or is deemed to have issued or sold, additional shares
of Capital Stock for a nominal or effective price less than the then effective
Exercise Price (a “Dilutive Issuance”), then and
in each such case, the then existing Exercise Price shall be reduced, as of the
opening of business on the date of such issue or sale, to the price at which
such shares are issued or sold, or deemed to be issued or sold. For purposes of
this Section 5.3, the Company will be deemed to have issued or sold additional
shares of Capital Stock if it issues any security or instrument convertible,
exercisable or exchangeable for Capital Stock, or if it promises, undertakes,
commits, agrees or enters into any letter of intent to do so. Notwithstanding
the foregoing, (i) no further adjustment of the Exercise Price shall be made as
a result of the actual issuance of shares of Capital Stock upon the conversion,
exercise or exchange of any such instrument or in satisfaction of any such
undertaking, commitment, agreement or letter of intent, and (ii) no adjustment
of the Exercise Price shall be made as a result of the actual issuance of any
shares of Common Stock pursuant to either (X) the exercise of those certain
options to purchase up to 35,000 shares of Common Stock at a purchase price of
$0.0001 per share that were outstanding on April 26, 2004 and held by members of
the Board of Directors of the Company; or (Y) the exercise of the Initial Bridge
Warrants.

          5.4
  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

6.

EXECUTION
VERSION

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]

7.

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. BW-6]

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 or unless such transaction is in
compliance with applicable federal and state securities laws.

	______________________________________
(Date)	______________________________________
(Signature) 

	  
  	______________________________________
(Print name) 

1.

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.

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