Document:

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                                                                    Exhibit 10.3

              AMENDED AND RESTATED NORTHWEST BIOTHERAPEUTICS, INC.
                     LOAN AGREEMENT, SECURITY AGREEMENT AND
                           10% SECURED PROMISSORY NOTE

$300,000.00                                                       APRIL 17, 2006

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
Partners, LLC or its assigns (collectively, the "HOLDER"), the principal amount
of Three Hundred Thousand Dollars ($300,000) upon written demand by Holder made
at any time on or after the first anniversary of execution of the Original Issue
Date (as defined below) of this Amended and Restated Loan Agreement, Security
Agreement and 10% 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").

This Note amends and restates in its entirety that certain Northwest
Biotherapeutics, Inc. Loan Agreement, Security Agreement and 10% Secured
Promissory Note dated March 9, 2006 ("ORIGINAL ISSUE DATE") in the principal
amount of $300,000 issued by the Maker in favor of Holder (the "ORIGINAL NOTE").
This Note shall not constitute a novation of the Original Note or an accord and
satisfaction of the obligations of Maker evidence thereby. The Original Note is
being amended and restated hereby in partial consideration for the Holder's
agreement to consent to the Company's issuance of shares of Common Stock and
warrants to purchase Common Stock to certain accredited investors in a private
placement pursuant to that certain Note and Warrant Purchase Agreement dated as
of March 30, 2006.

Maker shall pay interest on the unpaid principal amount of this Note, accruing
from and after the Original Issue Date 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

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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.

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, November 10, 2004,
December 27, 2004, January 26, 2005, April 12, 2005, May 13, 2005, June 16,
2005, July 26, 2005, September 7, 2005 and November 14, 2005 (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

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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 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 the Disclosure 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.

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     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 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.

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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.

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,

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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 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

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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 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, 4 and 5 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

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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 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 would be necessary for Holder to file form 468
     with the SBA, if it were applicable.

               (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 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.

          (h) [Reserved]

          (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.

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

          (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 (the "INTELLECTUAL PROPERTY").

          (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,

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except in accordance with the Maker's budget that has been approved by the
Maker's board of directors and the Holder.

               (i) Expenses. Maker shall make no expenditures in excess of
$10,000 in aggregate other than in accordance with 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. 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.

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

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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,
Toucan Capital Fund II, L.P. or 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,
4 and 5 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 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

                                       11

<PAGE>

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 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
<PAGE>

     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 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

                                       13

<PAGE>

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 Investor
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 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

                                       14

<PAGE>

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 Schedules 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 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

                                       15

<PAGE>

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
300,000,000 shares of Common Stock, par value $0.001 per share and 100,000,000
shares of Preferred Stock, par value of $0.001 per share. As of the date hereof,
63,553,806 shares of Common Stock are issued and outstanding and 32,500,000
shares of Series A convertible preferred stock 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
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

                                       16

<PAGE>

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 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, and for the benefit of Toucan Partners, LLC created by 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 security interests, pledges, liens or other encumbrances
of any kind, direct or indirect, contingent

                                       17

<PAGE>

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

<PAGE>

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

<PAGE>

               (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

<PAGE>

          (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. As of the date hereof, Maker has the following accrued
liabilities: (i) tax liabilities to the State of Washington in the approximate
amount of $345,000, (ii) amounts payable to Cognate Therapeutics and Investor,
(iii) future sublease payments to MediQuest Corporation and a contingent lease
liability to Benaroya Capital Co. LLC for Maker's premises should Mediquest
Corporation default on its lease with Benaroya Capital Co. LLC and which is not
yet due, and (iv) Maker's aggregate accrued, contingent and/or other liabilities
of any nature, either mature or immature, as of the date hereof, not in excess
of $275,000 (excluding amounts payable to Cognate and Investor), of which (x)
approximately $105,000 are currently due payables (including $85,000 for
attorney fees), (y) $9,500 are the aggregate balances of capital leases payable
in monthly installments in the amounts set forth in the budget included in the
Disclosure Schedule through the first calendar quarter of 2006, decreasing

                                       21

<PAGE>
thereafter, the last of which is fully amortized in May 2007, and (z) $90,000
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 Agreement and the Related Recapitalization
Documents, (b) Section 13 of that certain 10% Convertible, Secured Promissory
Note by and between Maker and Toucan Capital Fund II, L.P. dated as of February
2, 2004 and (c) Section 13 of that certain 10% Convertible, Secured Promissory
Note by and between Maker and Toucan Capital Fund II, L.P. dated as of March 1,
2004.

     14.17 Recall of TFF Devices. Maker has recalled all units of Maker's TFF
devices, and all specifications, diagrams, description or other information
relating to such TFF devices or any similar devices, from all third parties who
may previously have possessed any of the foregoing, and, as of the Effective
Date of this note, no third party possesses any of the foregoing.

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

                                       22

<PAGE>

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.

     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.
                     18701 120th Avenue, NE, Suite 101
                     Bothell, WA  98011
                     Fax: (425) 608 3146
                     Attn: Alton Boynton

     if to Holder:   Toucan Partners, LLC
                     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.

                                       23

<PAGE>

     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 Schedules,
Exhibits attached hereto 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.

     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, Holder 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

                                       24

<PAGE>

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.

                                       25

<PAGE>

     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:
                                            ------------------------------------
                                        Name: Alton Boynton
                                        Title: President

                              CONSENT AND AGREEMENT

     Toucan Partners, LLC consents to the loan and security interest granted by
Maker in the foregoing Note.

                                        TOUCAN PARTNERS, LLC

                                        By:
                                            ------------------------------------
                                        Name: Linda Powers
                                        Title: Managing Member

                                       26

<PAGE>

                                    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.

                                       27

<PAGE>

     (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.

                                       28

<PAGE>

                                   APPENDIX 1
                                   TRADEMARKS

                                       29

<PAGE>

                                   APPENDIX 2
                                     PATENTS

                                       30

<PAGE>
                                                                       EXHIBIT B

                               DISCLOSURE SCHEDULE
             TO AMENDED AND RESTATED NORTHWEST BIOTHERAPEUTICS, INC.
                     LOAN AGREEMENT, SECURITY AGREEMENT AND
                    10% CONVERTIBLE, SECURED PROMISSORY NOTE
                              DATED APRIL 17, 2006

      This Disclosure Schedule is made and given pursuant to Section 14 of the
above referenced agreement and updates the representations and warranties of
Maker made in notes issued to Toucan Capital Fund II, L.P. ("TOUCAN") on April
26, 2004, June 11, 2004, July 30, 2004, October 22, 2004, November 10, 2004,
December 27, 2004, April 12, 2005, May 13, 2005, June 16, 2005, July 26, 2005
and September 7, 2005, respectively, and made in a notes issued to Toucan
Partners, LLC ("TOUCAN PARTNERS") on November 14, 2005, December 30, 2005 and
March 9, 2006, and also updates all Disclosure Schedules delivered by Maker to
Toucan and Toucan Partners in connection with such notes. Nothing in this
Disclosure Schedule constitutes an admission of any liability or obligation of
Maker to any third party, nor an admission to any third party against Maker's
interests.

                                       31
<PAGE>

                                  SCHEDULE 14.5
                                    CONSENTS

None

<PAGE>

                                  SCHEDULE 14.6
                        CAPITALIZATION, FULLY DILUTED(1)

<TABLE>
<S>                                                               <C>
Common Stock as of 3/14/06 (per Mellon Investors Services)        58,545,939
Stock Options Outstanding as of 04/17/06                             743,111
Management Converted Bridge Loan                                   2,687,719
Management Bridge Warrants                                         3,553,480
All other warrants                                                22,089,168
                                                                  ----------
 Total fully diluted shares                                       87,619,417
</TABLE>

(1)   Table excludes securities issued or issuable to Toucan.

<PAGE>

                                  SCHEDULE 14.8
                                   LITIGATION

On February 3, 2006, Soma Partners, LLC filed another notice of appeal with the
Supreme Court of the State of New York. As of the date of this agreement, the
Supreme Court of New York has yet to act on this matter. On December 30, 2005,
the Notice of Petition to Vacate Arbitration Award with the Supreme Court of the
State of New York, requested that the May 24, 2005 and December 30, 2005
findings of the arbitrator be vacated.

<PAGE>

                                  SCHEDULE 14.9
                                    NO LIENS

      1. The Equipment Lessors listed below have security interests in equipment
subject to their respective leases (amounts due are as of February 14, 2006).

<TABLE>
<CAPTION>
CAPITAL LEASES:        AMOUNT           CAPITAL LEASES:                        AMOUNT
<S>                    <C>              <C>                                    <C>

CitiCapital            $34,229          VWR Centrifuge 6R, Refrigerated        $2,354
IOS Capital            $21,789          Canon IR5000N                           8,720
                                                                               -------
                                                             Total             $11,074
</TABLE>
      2. Pursuant to RCW 60.72.010, Maker's landlord, Benaroya Capital Company,
LLC, under its premises lease has a statutory landlord lien. This is a statutory
lien of general application for all landlords and covers up to two months' rent.
This lien would be triggered upon a default in payment of rent. Maker is not
delinquent as to any rent due under its premises lease.

      3. The State of Washington has a statutory tax lien for real property and
personal property excise taxes that are unpaid in the approximate amount of
$345,000. This is a statutory lien of general application to all taxpayers.
These tax liens would be triggered upon a default in payment of these taxes.
Maker is not delinquent in the payment of any real property or personal property
excise tax.

      4. Two $50,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Notes dated April 26, 2004; two $500,000 Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Notes, dated April
26, 2004 and June 11, 2004, respectively; a $2.0 million Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Note dated July 30,
2004; two $500,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Notes dated October 22, 2004 and November 10, 2004,
respectively; a $250,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Note dated December 27, 2004; two $450,000 Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Notes dated April 12,
2005 and May 13, 2005, respectively; three $500,000 Loan Agreement, Security
Agreement and 10% Convertible, Secured Promissory Notes dated June 16, 2005,
July 26, 2005 and September 7, 2005, a $400,000 Loan Agreement, Security
Agreement and 10% Convertible, Secured Promissory Notes dated November 14, 2005,
a $250,000 Loan Agreement, Security Agreement and 10% Convertible, Secured
Promissory Notes dated December 30, 2005, as amended and a $300,000 Loan
Agreement, Security Agreement and 10% Convertible, Secured Promissory Notes
dated March 9, 2006, as amended, respectively; plus accrued interest thereon,
and secured by a security interest in Maker's assets issued to Toucan.

      5. A License Agreement dated July 1, 2003 with Dako Cytomation for
worldwide research and diagnostic immunohistochemical (IHC) market. Hybridoma
Cell Line, Monoclonal Antibody (MAb) to Prostate Specific Membrane Antigen
(PSMA), Clone IG3.
<PAGE>
                              SCHEDULE 14.11
                   NO OTHER SECURITY INTERESTS OR ENCUMBRANCES

      1. (a) The Equipment Lessors listed below have security interests in
equipment subject to their respective leases (amounts due are as of February 14,
2006).

<TABLE>
<CAPTION>
CAPITAL LEASES:      AMOUNT             CAPITAL LEASES:                       AMOUNT
<S>                  <C>                <C>                                   <C>
CitiCapital          $34,229            VWR Centrifuge 6R, Refrigerated       $2,354
IOS Capital          $21,789            Canon IR5000N                          8,720
                                                                             -------
                                                             Total           $11,074
</TABLE>
             (b) A License Agreement dated July 1, 2003 with Dako Cytomation for
worldwide research and diagnostic immunohistochemical (IHC) market. Hybridoma
Cell Line, Monoclonal Antibody (MAb) to Prostate Specific Membrane Antigen
(PSMA), Clone IG3.

      2. Pursuant to RCW 60.72.010, Maker's landlord, Benaroya Capital Company,
LLC, under its premises lease has a statutory landlord lien. This is a statutory
lien of general application for all landlords and covers up to two months' rent.
This lien would be triggered upon a default in payment of rent. Maker is not
delinquent as to any rent due under its premises lease.

      4. The State of Washington has a statutory tax lien for real property and
personal property excise taxes that are unpaid in the approximate amount of
$345,000. This is a statutory lien of general application to all taxpayers.
These tax liens would be triggered upon a default in payment of these taxes.
Maker is not delinquent in the payment of any real property or personal property
excise tax.

      5. Two $50,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Notes dated April 26, 2004; two $500,000 Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Notes, dated April
26, 2004 and June 11, 2004, respectively; a $2.0 million Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Note dated July 30,
2004; two $500,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Notes dated October 22, 2004 and November 10, 2004,
respectively; a $250,000 Loan Agreement, Security Agreement and 10% Convertible,
Secured Promissory Note dated December 27, 2004; two $450,000 Loan Agreement,
Security Agreement and 10% Convertible, Secured Promissory Notes dated April 12,
2005 and May 13, 2005, respectively; three $500,000 Loan Agreement, Security
Agreement and 10% Convertible, Secured Promissory Notes dated June 16, 2005,
July 26, 2005 and September 7, 2005, a $400,000 Loan Agreement, Security
Agreement and 10% Convertible, Secured Promissory Notes dated November 14, 2005,
a $250,000 Loan Agreement, Security Agreement and 10% Secured Promissory Notes
dated December 30, 2005, as amended and a $300,000 Loan Agreement, Security
Agreement and 10% Secured Promissory Notes dated March 9, 2006, as restated and
amended, respectively; plus accrued interest thereon, and secured by a security
interest in Maker's assets issued to Toucan.

*     All the holders of the 10% Convertible Secured Notes are parties to a
      Subordination Agreement with Toucan executed concurrent with the
      Recapitalization Agreement.

<PAGE>

                                SCHEDULE 14.14(A)
                                   SEC FILINGS

1. Maker did not file on a timely basis its annual report on Form 10-K with the
SEC for its fiscal year ended December 31, 2003 and 2005.

<PAGE>
                                 SCHEDULE 14.15
                                  LIABILITIES

      As of the date hereof, Maker has the following accrued liabilities: (i)
tax liabilities to the State of Washington in the approximate amount of
$345,000, (ii) amounts payable to Cognate Therapeutics and Investor, (iii)
future sublease payments to MediQuest Corporation and a contingent lease
liability to Benaroya Capital Co. LLC for Maker's premises should Mediquest
Corporation default on its lease with Benaroya Capital Co. LLC and which is not
yet due, and (iv) Maker's aggregate accrued, contingent and/or other liabilities
of any nature, either mature or immature, as of the date hereof , not in excess
of $275,000 (excluding amounts payable to Cognate and Investor), of which (x)
approximately $105,000 are currently due payables (including approximately
$85,000 for attorney fees), (y) $9,500 are the aggregate balances of capital
leases payable in monthly installments in the amounts set forth in the budget
included in the Disclosure Schedule through the first calendar quarter of 2006,
decreasing thereafter, the last of which is fully amortized in May 2007, and (z)
$90,000 are accrued vacation and sick pay.<PAGE>

                                                                    Exhibit 10.4

                         NORTHWEST BIOTHERAPEUTICS, INC.
                              AMENDED AND RESTATED
                            INVESTOR RIGHTS AGREEMENT

<PAGE>

                         NORTHWEST BIOTHERAPEUTICS, INC.

                 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (the "Agreement") is
entered into as of the 17th day of April, 2006, by and between NORTHWEST
BIOTHERAPEUTICS, INC., a Delaware corporation (the "Company") and TOUCAN CAPITAL
FUND II, L.P. (the "Investor").

                                    RECITALS

     WHEREAS, the Investor purchased shares of the Company's Series A Preferred
Stock (the "Series A Stock") pursuant to that certain Securities Purchase
Agreement (the "Purchase Agreement") dated as of January 26, 2005 and the
Investor is acquiring shares of the Company's Series A-1 Preferred Stock (the
"Series A-1 Stock" and together with Series A Stock, the "Preferred Stock")
pursuant to that certain Note Conversion Agreement (the "Conversion Agreement")
dated of even date herewith;

     WHEREAS, pursuant to the Purchase Agreement the Company and the Investor
entered into that certain Investor Rights Agreement (the "ORIGINAL AGREEMENT");

     WHEREAS, the Conversion Agreement is conditioned upon the execution and
delivery of this Agreement; and

     WHEREAS, in connection with the consummation of the Conversion Agreement,
the parties desire to enter into this Agreement in order to amend and restate
the Original Agreement and to provide Investor with the registration and other
rights as set forth below.

     NOW, THEREFORE, in consideration of these premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

SECTION 1. GENERAL.

     1.1 DEFINITIONS. As used in this Agreement the following terms shall have
the following respective meanings:

          (A) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

          (B) "FORM S-3" means such form under the Securities Act as in effect
on the date hereof or any successor or similar registration form under the
Securities Act subsequently adopted by the SEC which permits inclusion or
incorporation of substantial information by reference to other documents filed
by the Company with the SEC.

          (C) "HOLDER" means any person owning of record Registrable Securities
that have not been sold to the public or any assignee of record of such
Registrable Securities in accordance with Section 2.11 hereof.

<PAGE>

          (D) "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such registration statement or document.

          (E) "REGISTRABLE SECURITIES" means (a) Common Stock of the Company
issuable or issued upon conversion of the Shares and (b) any Common Stock of the
Company issued as (or issuable upon the conversion or exercise of any warrant,
right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, such above-described
securities. Notwithstanding the foregoing, Registrable Securities shall not
include any securities (i) sold by a person to the public either pursuant to a
registration statement or Rule 144, (ii) sold in a private transaction in which
the transferor's rights under Section 2 of this Agreement are not assigned or
(iii) held by a Holder (together with its affiliates) if, as reflected on the
Company's list of stockholders, such Holder (together with its affiliates) holds
less than 1% of the Company's outstanding Common Stock (treating all shares of
Preferred Stock on an as converted basis), the Company has completed its Initial
Offering and all shares of Common Stock of the Company issuable or issued upon
conversion of the Shares held by and issuable to such Holder (and its
affiliates) may be sold pursuant to Rule 144 during any ninety (90) day period.

          (F) "REGISTRABLE SECURITIES THEN OUTSTANDING" shall be the number of
shares of the Company's Common Stock that are Registrable Securities and either
(a) are then issued and outstanding or (b) are issuable pursuant to then
exercisable or convertible securities.

          (G) "REGISTRATION EXPENSES" shall mean all expenses incurred by the
Company in complying with Sections 2.2, 2.4 and 2.6 hereof, including, without
limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel for the Company, reasonable fees and disbursements not
to exceed one hundred thousand dollars ($100,000) of a single special counsel
for the Holders, blue sky fees and expenses and the expense of any special
audits incident to or required by any such registration (but excluding the
compensation of regular employees of the Company which shall be paid in any
event by the Company).

          (H) "SEC" or "COMMISSION" means the Securities and Exchange
Commission.

          (I) "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

          (J) "SELLING EXPENSES" shall mean all underwriting discounts and
selling commissions applicable to the sale.

          (K) "SHARES" shall mean the Company's Series A Stock issued pursuant
to the Purchase Agreement and Series A-1 Stock issued pursuant to the Conversion
Agreement held from time to time by the Investor and its permitted assigns and
the Capital Stock issuable upon exercise of the Warrants.

          (L) "SPECIAL REGISTRATION STATEMENT" shall mean (i) a registration
statement relating to any employee benefit plan or (ii) with respect to any
corporate reorganization or transaction under Rule 145 of the Securities Act,
any registration statements related to the

<PAGE>
                                                                    EXHIBIT 10.4

issuance or resale of securities issued in such a transaction or (iii) a
registration related to stock issued upon conversion of debt securities.

          (M) "WARRANTS" shall mean those certain warrants to purchase capital
stock held by the Investor dated April 26, 2004, June 11, 2004, July 30, 2004,
October 22, 2004, November 10, 2004, December 27, 2004, January 26, 2005, April
12, 2005, May 13, 2005, June 16, 2005, July 26, 2005 and September 7, 2005.

SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER.

     2.1 RESTRICTIONS ON TRANSFER.

          (A) Each Holder agrees not to make any disposition of all or any
portion of the Shares or Registrable Securities unless and until:

               (I) there is then in effect a registration statement under the
Securities Act covering such proposed disposition and such disposition is made
in accordance with such registration statement; or

               (II) (A) The transferee has agreed in writing to be bound by the
terms of this Agreement, (B) such 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 (C) if
reasonably requested by the Company, such Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of such shares under the
Securities Act. The Company will not require any transferee pursuant to Rule 144
to be bound by the terms of this Agreement if the shares so transferred do not
remain Registrable Securities hereunder following such transfer.

          (B) Notwithstanding the provisions of subsection (a) above, no such
restriction shall apply to a transfer by a Holder that is (A) a partnership
transferring to its partners or former partners in accordance with partnership
interests, (B) a corporation transferring to an affiliate, (C) a limited
liability company transferring to its members or former members in accordance
with their interest in the limited liability company, (D) an individual
transferring to the Holder's family member or trust for the benefit of an
individual Holder; (E) any other party permitted under applicable federal and
state securities laws, provided that in each case the transferee will agree in
writing to be subject to the terms of this Agreement to the same extent as if he
were an original Holder hereunder.

          (C) Each certificate representing Shares or Registrable Securities
shall be stamped or otherwise imprinted with legends substantially similar to
the following (in addition to any legend required under applicable state
securities laws):

          THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
          OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND
          UNTIL REGISTERED

<PAGE>

          UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
          SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS
          NOT REQUIRED.

          THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES
          REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS
          OF A CERTAIN INVESTOR RIGHTS AGREEMENT BY AND BETWEEN THE STOCKHOLDER
          AND THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN
          REQUEST TO THE SECRETARY OF THE COMPANY.

          (D) The Company shall be obligated to reissue promptly unlegended
certificates at the request of any Holder thereof if the Company has completed
its Initial Offering and the Holder shall have obtained an opinion of counsel
(which counsel may be counsel to the Company) reasonably acceptable to the
Company to the effect that the securities proposed to be disposed of may
lawfully be so disposed of without registration, qualification and legend,
provided that the second legend listed above shall be removed only at such time
as the Holder of such certificate is no longer subject to any restrictions
hereunder.

          (E) Any legend endorsed on an instrument pursuant to applicable state
securities laws and the stop-transfer instructions with respect to such
securities shall be removed upon receipt by the Company of an order of the
appropriate blue sky authority authorizing such removal.

     2.2 DEMAND REGISTRATION.

          (A) If, at any time after the initial purchase of the Preferred Stock,
holders of at least 20% of the Registrable Securities issued or issuable upon
conversion of the Preferred Stock (the "INITIATING HOLDERS") request that the
Company file a registration statement on Form SB-2 or Form S-1 (the
"REGISTRATION STATEMENT") covering at least 10% of the Registrable Securities
issued or issuable upon conversion of the Preferred Stock (or any lesser
percentage if the anticipated aggregate offering price would exceed $2,000,000),
the Company shall cause the Registrable Securities attributable to the Preferred
Stock to be registered.

          (B) If the Investor intends to distribute the Registrable Securities
covered by their request by means of an underwriting, it shall so advise the
Company as a part of its request made pursuant to this Section 2.2 or any
request pursuant to Section 2.4 and the Company shall include such information
in the written notice referred to in Section 2.2(a) or Section 2.4(a), as
applicable. In such event, the right of any Holder to include its Registrable
Securities in such registration shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Holders of a majority of the
Registrable Securities held by all

<PAGE>

Initiating Holders (which underwriter or underwriters shall be reasonably
acceptable to the Company). Notwithstanding any other provision of this Section
2.2 or Section 2.4, if the underwriter advises the Company that marketing
factors require a limitation of the number of securities to be underwritten
(including Registrable Securities) then the Company shall so advise all Holders
of Registrable Securities that would otherwise be underwritten pursuant hereto,
and the number of shares that may be included in the underwriting shall be
allocated to the Holders of such Registrable Securities on a pro rata basis
based on the number of Registrable Securities held by all such Holders
(including the Initiating Holders); provided, however, that the number of shares
of Registrable Securities to be included in such underwriting and registration
shall not be reduced unless all other securities of the Company are first
entirely excluded from the underwriting and registration. Any Registrable
Securities excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

          (C) The Company shall not be required to effect a registration
pursuant to this Section 2.2:

               (I) if the Company has effected two (2) registrations pursuant to
this Section 2.2 in the preceding twelve (12) months, and such registrations
have been declared or ordered effective;

               (IV) if the Initiating Holders propose to dispose of shares of
Registrable Securities that may be immediately registered on Form S-3 pursuant
to a request made pursuant to Section 2.4 below and the Company undertakes
promptly to file such Form S-3; or

     2.3 PIGGYBACK REGISTRATIONS. The Company shall notify all Holders of
Registrable Securities in writing at least fifteen (15) days prior to the filing
of any registration statement under the Securities Act for purposes of a public
offering of securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of securities of the
Company, but excluding Special Registration Statements) and will afford each
such

<PAGE>

Holder an opportunity to include in such registration statement all or part of
such Registrable Securities held by such Holder. Each Holder desiring to include
in any such registration statement all or any part of the Registrable Securities
held by it shall, within fifteen (15) days after the above-described notice from
the Company, so notify the Company in writing. Such notice shall state the
intended method of disposition of the Registrable Securities by such Holder. If
a Holder decides not to include all of its Registrable Securities in any
registration statement thereafter filed by the Company, such Holder shall
nevertheless continue to have the right to include any Registrable Securities in
any subsequent registration statement or registration statements as may be filed
by the Company with respect to offerings of its securities, all upon the terms
and conditions set forth herein.

          (A) UNDERWRITING. If the registration statement of which the Company
gives notice under this Section 2.3 is for an underwritten offering, the Company
shall so advise the Holders of Registrable Securities. In such event, the right
of any such Holder to include Registrable Securities in a registration pursuant
to this Section 2.3 shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting to the extent provided herein. All Holders proposing to
distribute their Registrable Securities through such underwriting shall enter
into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Company. Notwithstanding any
other provision of this Agreement, if the underwriter reasonably determines, in
good faith, that marketing factors require a limitation of the number of shares
to be underwritten, the number of shares that may be included in the
underwriting shall be allocated, first, to the Company; second, to the Holders
on a pro rata basis based on the total number of Registrable Securities held by
the Holders; and third, to any stockholder of the Company (other than a Holder)
on a pro rata basis; provided, however, that no such reduction shall reduce the
amount of securities of the selling Holders included in the registration below
thirty percent (30%) of the total amount of securities included in such
registration in accordance with the immediately preceding clause. In no event
will shares of any other selling stockholder be included in such registration
that would reduce the number of shares which may be included by Holders without
the written consent of Holders of not less than a majority of the Registrable
Securities proposed to be sold in the offering. If any Holder disapproves of the
terms of any such underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the underwriter, delivered at least ten (10)
days prior to the effective date of the registration statement. Any Registrable
Securities excluded or withdrawn from such underwriting shall be excluded and
withdrawn from the registration. For any Holder which is a partnership, limited
liability company or corporation, the partners, retired partners, members,
retired members and stockholders of such Holder, or the estates and family
members of any such partners, retired partners, members and retired members and
any trusts for the benefit of any of the foregoing person shall be deemed to be
a single "Holder," and any pro rata reduction with respect to such "Holder"
shall be based upon the aggregate amount of shares carrying registration rights
owned by all entities and individuals included in such "Holder," as defined in
this sentence.

<PAGE>
     2.4 FORM S-3 REGISTRATION. In case the Company shall receive from any
Holder or Holders of Registrable Securities a written request or requests that
the Company effect a registration on Form S-3 (or any successor to Form S-3) or
any similar short-form registration statement and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, the Company will:

          (A) promptly give written notice of the proposed registration, and any
related qualification or compliance, to all other Holders of Registrable
Securities; and

          (B) as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holder's or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within
fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance pursuant to this Section 2.4:

               (I) if Form S-3 is not available for such offering by the
Holders, or

               (II) if the Holders, together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to
sell Registrable Securities and such other securities (if any) at an aggregate
price to the public of less than one million dollars ($1,000,000), or

          (C) Subject to the foregoing, the Company shall file a Form S-3
registration statement covering the Registrable Securities and other securities
so requested to be registered as

<PAGE>

soon as practicable after receipt of the requests of the Holders. Registrations
effected pursuant to this Section 2.4 shall not be counted as demands for
registration or registrations effected pursuant to Section 2.2.

     2.5 EXPENSES OF REGISTRATION. Except as specifically provided herein, all
Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to Section 2.2, 2.3 or 2.4 herein shall be
borne by the Company. All Selling Expenses incurred in connection with any
registrations hereunder, shall be borne by the holders of the securities so
registered pro rata on the basis of the number of shares so registered. The
Company shall not, however, be required to pay for expenses of any registration
proceeding begun pursuant to Section 2.2 or 2.3, the request of which has been
subsequently withdrawn by the Initiating Holders unless (a) the withdrawal is
based upon material adverse information concerning the Company of which the
Initiating Holders were not aware at the time of such request or (b) the Holders
of a majority of Registrable Securities agree to deem such registration to have
been effected as of the date of such withdrawal for purposes of determining
whether the Company shall be obligated pursuant to Section 2.2(c) to undertake
any subsequent registration, in which event such right shall be forfeited by all
Holders). If the Holders are required to pay the Registration Expenses, such
expenses shall be borne by the holders of securities (including Registrable
Securities) requesting such registration in proportion to the number of shares
for which registration was requested. If the Company is required to pay the
Registration Expenses of a withdrawn offering pursuant to clause (a) above, then
such registration shall not be deemed to have been effected for purposes of
determining whether the Company shall be obligated pursuant to Section 2.2 to
undertake any subsequent registration.

     2.6 OBLIGATIONS OF THE COMPANY. Whenever required to effect the
registration of any Registrable Securities, the Company shall, as expeditiously
as reasonably possible:

          (A) prepare and file within sixty (60) days of the receipt of a
request for registration of Registrable Securities with the SEC a registration
statement with respect to such Registrable Securities and use all reasonable
efforts to cause such registration statement to become effective within one
hundred twenty (120) days of such request, and keep such registration statement
effective until the Holder or Holders have completed the distribution related
thereto;

<PAGE>

          (B) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement for the period set forth in subsection (a) above.

          (C) Furnish to the Holders such number of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of Registrable Securities owned by them.

          (D) Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holders;
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions.

          (E) In the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter(s) of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

          (F) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing. The Company will amend or supplement such prospectus in order to cause
such prospectus not to include any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing.

          (G) Use its best efforts to furnish, on the date that such
Registrable Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, (i) an opinion, dated as of such
date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and (ii)
a letter, dated as

<PAGE>

of such date, from the independent certified public accountants of the Company,
in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering addressed to the
underwriters.

     2.7 DELAY OF REGISTRATION; FURNISHING INFORMATION.

          (A) No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any
controversy that might arise with respect to the interpretation or
implementation of this Section 2.

          (B) It shall be a condition precedent to the obligations of the
Company to take any action pursuant to Section 2.2, 2.3 or 2.4 that the selling
Holders shall furnish to the Company such information regarding themselves, the
Registrable Securities held by them and the intended method of disposition of
such securities as shall be required to effect the registration of their
Registrable Securities.

          (C) The Company shall have no obligation with respect to any
registration requested pursuant to Section 2.2 or Section 2.4 if the number of
shares or the anticipated aggregate offering price of the Registrable Securities
to be included in the registration does not equal or exceed the number of shares
or the anticipated aggregate offering price required to originally trigger the
Company's obligation to initiate such registration as specified in Section 2.2
or Section 2.4, whichever is applicable.

     2.8 LIQUIDATED DAMAGES. In the event that the Company shall fail to cause
the Registration Statement to be timely filed, timely declared effective, as
provided herein) as provided herein, the Company shall pay as liquidated damages
the amount of 1% per month of the aggregate purchase price for the securities
to be sold pursuant to the Registration Statement (or such lesser
amount that is the maximum permitted under applicable rules and regulations of
the U.S. Small Business Administration ("SBA")) provided, however, that in no
event shall the aggregate liquidated damages exceed ten percent (10%) of the
aggregate purchase price of the Registrable Securities proposed to be included
in the Registration Statement.

     2.9 INDEMNIFICATION. In the event any Registrable Securities are included
in a registration statement under Sections 2.2, 2.3 or 2.4:

          (A) To the fullest extent permitted by law, the Company will indemnify
and hold harmless each Holder, the partners, members, officers and directors of
each Holder, any underwriter (as defined in the Securities Act) for such Holder
and each person, if any, who controls such Holder or underwriter within the
meaning of the Securities Act or the Exchange Act, against any losses, claims,
damages, or liabilities (joint or several) to which they may become subject
under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "VIOLATION") by the Company: (i) any
untrue statement or alleged untrue statement of a material fact contained

<PAGE>

in such registration statement or incorporated reference therein, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, (ii) the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not misleading, or (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any
state securities law in connection with the offering covered by such
registration statement; and the Company will reimburse each such Holder,
partner, member, officer, director, underwriter or controlling person for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided however, that the indemnity agreement contained in this Section 2.9(a)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld, nor shall the Company
be liable in any such case for any such loss, claim, damage, liability or action
to the extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished expressly for
use in connection with such registration by such Holder, partner, member,
officer, director, underwriter or controlling person of such Holder.

          (B) To the extent permitted by law, each Holder will, if Registrable
Securities held by such Holder are included in the securities as to which such
registration qualifications or compliance is being effected, indemnify and hold
harmless the Company, each of its directors, its officers and each person, if
any, who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration
statement or any of such other Holder's partners, directors or officers or any
person who controls such Holder, against any losses, claims, damages or
liabilities (joint or several) other than consequential losses of any kind, to
which the Company or any such director, officer, controlling person, underwriter
or other such Holder, or partner, director, officer or controlling person of
such other Holder may become subject under the Securities Act, the Exchange Act
or other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any
of the following statements: (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement or
incorporated reference therein, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or
(iii) any violation or alleged violation by the Company of the Securities Act
(collectively, a "HOLDER VIOLATION"), in each case to the extent (and only to
the extent) that such Holder Violation occurs in reliance upon and in conformity
with written information furnished by such Holder under an instrument duly
executed by such Holder and stated to be specifically for use in connection with
such registration; and each such Holder will reimburse any legal or other
expenses reasonably incurred by the Company or any such director, officer,
controlling person, underwriter or other Holder, or partner, officer, director
or controlling person of such other Holder in connection with investigating or
defending any such loss, claim, damage, liability or action if it is judicially
determined that there was such a Holder Violation; provided, however, that the
indemnity agreement contained in this Section 2.9(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; provided further, that in no event

<PAGE>

shall any indemnity under this Section 2.9 exceed the net proceeds from the
offering received by such Holder.

          (C) Promptly after receipt by an indemnified party under this Section
2.9 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 2.9, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses thereof to
be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to
actual or potential differing interests between such indemnified party and any
other party represented by such counsel in such proceeding. The failure to
deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall relieve such indemnifying party of any
liability to the indemnified party under this Section 2.9 to the extent, and
only to the extent, prejudicial to its ability to defend such action, but the
omission so to deliver written notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than
under this Section 2.9.

          (D) If the indemnification provided for in this Section 2.9 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the Violation(s) or Holder Violation(s) that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by a court of law by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission; provided, that in no event shall any contribution by a
Holder hereunder exceed the net proceeds from the offering received by such
Holder.

          (E) The obligations of the Company and Holders under this Section 2.9
shall survive completion of any offering of Registrable Securities in a
registration statement and, with respect to liability arising from an offering
to which this Section 2.9 would apply that is covered by a registration filed
before termination of this Agreement, such termination. No indemnifying party,
in the defense of any such claim or litigation, shall, except with the consent
of each indemnified party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation.

<PAGE>

          (F) Notwithstanding any of the foregoing provisions of this Section
2.9, no party shall be entitled to indemnification against any consequential
damages.

     2.10 ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause the Company to
register Registrable Securities pursuant to this Section 2 may be assigned by a
Holder to a transferee or assignee of Registrable Securities (for so long as
such shares remain Registrable Securities) that (a) is a subsidiary, parent,
general partner, limited partner, retired partner, member or retired member, or
stockholder of a Holder that is a corporation, partnership or limited liability
company, (b) is a Holder's family member or trust for the benefit of an
individual Holder, (c) acquires at least one million (1,000,000) shares of
Registrable Securities (as adjusted for stock splits and combinations); (d) is
an entity affiliated by common control (or other related entity) with such
Holder or (e) is any other permitted assignee or transferee under applicable
federal and state securities laws, provided, however, (i) the transferor shall,
within ten (10) days after such transfer, furnish to the Company written notice
of the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned and (ii) such
transferee shall agree to be subject to all restrictions set forth in this
Agreement.

     2.11 LIMITATION ON SUBSEQUENT REGISTRATION RIGHTS. Other than as provided
in Section 5.10, after the date of this Agreement, the Company shall not enter
into any agreement with any holder or prospective holder of any securities of
the Company that would grant such holder rights to demand the registration of
shares of the Company's capital stock, or to include such shares in a
registration statement that would reduce the number of shares includable by the
Holders.

     2.12 AGREEMENT TO FURNISH INFORMATION. If requested by the Company or the
representative of the underwriters of Common Stock (or other securities) of the
Company, each Holder shall provide, within ten (10) days of such request, such
information as may be required by the Company or such representative in
connection with the completion of any public offering of the Company's
securities pursuant to a registration statement filed under the Securities Act.
The obligations described in this Section 2.12 shall not apply to a Special
Registration Statement. The Company may impose stop-transfer instructions with
respect to the shares of Common Stock (or other securities) subject to the
foregoing restriction until the end of said day period. Each Holder agrees that
any transferee of any shares of Registrable Securities shall be bound by this
Section 2.12. The underwriters of the Company's stock are intended third party
beneficiaries of this Section 2.12 and shall have the right, power and authority
to enforce the provisions hereof as though they were a party hereto.

     2.13 RULE 144 REPORTING. With a view to making available to the Holders the
benefits of certain rules and regulations of the SEC which may permit the sale
of the Registrable Securities to the public without registration, the Company
agrees to use its best efforts to:

          (A) Make and keep public information available, as those terms are
understood and defined in SEC Rule 144 or any similar or analogous rule
promulgated under the Securities Act, at all times after the effective date of
the first registration filed by the Company for an offering of its securities to
the general public;

          (B) File with the SEC, in a timely manner, all reports and other
documents required of the Company under the Exchange Act; and

<PAGE>

          (C) So long as a Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request: a written statement by the Company as to its
compliance with the reporting requirements of said Rule 144 of the Securities
Act, and of the Exchange Act (at any time after it has become subject to such
reporting requirements); a copy of the most recent annual or quarterly report of
the Company filed with the Commission; and such other reports and documents as a
Holder may reasonably request in connection with availing itself of any rule or
regulation of the SEC allowing it to sell any such securities without
registration.

SECTION 3. COVENANTS OF THE COMPANY.

     3.1 RESERVATION OF COMMON STOCK. The Company will at all times reserve and
keep available, solely for issuance and delivery upon the conversion of the
Preferred Stock, all Common Stock issuable from time to time upon such
conversion.

     3.2 DIRECTOR AND OFFICER INSURANCE. The Company will use its best efforts
to obtain and maintain in full force and effect director and officer liability
insurance in the amount of Ten Million Dollars ($10,000,000).

     3.3 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT. The Company shall
require all employees and consultants to execute and deliver a Proprietary
Information and Inventions Agreement substantially in a form approved by the
Company's counsel or Board of Directors.

     3.4 APPROVAL. The Company shall not without the approval of a majority of
the Board of Directors, with all non-interested Directors voting and the
approval at least one of the Directors designated by holders of the Preferred
Stock (if any are in office), authorize or enter into any transactions with any
director or officer, or any member of such director's or officer's immediate
family.

     3.5 QUALIFIED SMALL BUSINESS. The Company will use best efforts to comply
with the reporting and recordkeeping requirements of Section 1202 of the
Internal Revenue Code of 1986, as amended (the "Code"), any regulations
promulgated thereunder and any similar state laws and regulations and agrees not
to repurchase any stock of the Company if such repurchase would cause the Shares
not to so qualify as "Qualified Small Business Stock," so long as the Company's
Board of Directors determines that it is in the best interests of and not unduly
burden some to the Company to comply with the provisions of Section 1202 of the
Code.

     3.6 TERMINATION OF COVENANTS. All covenants of the Company contained in
Section 3 of this Agreement other than the provision of Section 3.2 shall expire
and terminate as to each Investor upon an "ACQUISITION" as defined in the
Company's Certificate of Incorporation as in effect as of the date hereof.

     3.7 CERTAIN COVENANTS RELATING TO SBA MATTERS.

          (A) USE OF PROCEEDS. The Company has used, and shall continue to use,
the proceeds from the sale of the Preferred Stock (the "Proceeds") for its
growth, modernization or expansion. The Company shall provide each Investor
which is a licensed Small Business

<PAGE>

Investment Company (an "SBIC INVESTOR") and the SBA reasonable access to the
Company's books and records for the purpose of confirming the use of Proceeds.

          (B) BUSINESS ACTIVITY. For so long as any SBIC Inventor holds any
securities of the Company, the Company shall not change the nature of its
business activity if such change would render the Company ineligible as provided
in 13 C.F.R. Section 107.720.

          (C) COMPLIANCE. So long as any SBIC Investor holds any securities of
the Company, the Company will at all times comply with the non-discrimination
requirements of 13 C.F.R. Parts 112, 113 and 117.

          (D) INFORMATION FOR SBIC INVESTOR. Within forty five (45) days after
the end of each fiscal year and at such other times as an SBIC Investor may
reasonably request, the Company shall deliver to such SBIC Investor a written
assessment, in form and substance reasonably satisfactory to such SBIC Investor,
of the economic impact of such SBIC Investor's financing specifying the
full-time equivalent jobs created or retained in connection with such
investment, and the impact of the financing on the Company's business in terms
of profits and on taxes paid by the Company and its employees. Upon request, the
Company agrees to promptly provide each SBIC Investor with sufficient
information to permit such Investor to comply with their obligations under the
Small Business Investment Act of 1958, as amended, and the regulations
promulgated thereunder and related thereto; provided, however, each SBIC
Investor agrees that it will protect any information which the Company labels as
confidential to the extent permitted by law. Any submission of any financial
information under this Section shall include a certificate of the Company's
president, chief executive officer, treasurer or chief financial officer.

          (E) NUMBER OF HOLDERS OF VOTING SECURITIES. So long as any SBIC
Investor holds any securities purchased pursuant to the Purchase Agreement or
issued by the Company with respect thereto, the Company shall notify each SBIC
Investor (i) at least fifteen (15) days prior to taking any action after which
the number of record holders of the Company's voting securities would be
increased from fewer than fifty (50) to fifty (50) or more, and (ii) of any
other action or occurrence after which the number of record holders of the
Company's voting securities was increased (or would increase) from fewer than
fifty (50) to fifty (50) or more, as soon as practicable after the Company
becomes aware that such other action or occurrence has occurred or is proposed
to occur.

SECTION 4. RIGHTS OF FIRST REFUSAL.

     4.1 SUBSEQUENT OFFERINGS. Subject to applicable securities laws, the
Investor shall have a right of first refusal to purchase its pro rata share of
all Equity Securities, as defined below, that the Company may, from time to
time, propose to sell and issue after the date of this Agreement, other than the
Equity Securities excluded by Section 4.7 hereof. The Investor's pro rata share
is equal to the ratio of (a) the number of shares of the Company's Common Stock
(including all shares of Common Stock issuable or issued upon conversion of the
Shares or upon the exercise of outstanding warrants or options) of which such
Investor is deemed to be a holder immediately prior to the issuance of such
Equity Securities to (b) the total number of shares of the Company's outstanding
Common Stock (including all shares of Common Stock issued or

<PAGE>
issuable upon conversion of the Shares or upon the exercise of any outstanding
warrants or options) immediately prior to the issuance of the Equity Securities.
The term "EQUITY SECURITIES" shall mean (i) any Common Stock, Preferred Stock or
other security of the Company, (ii) any security directly or indirectly
convertible into or exercisable or exchangeable for, with or without
consideration, any Common Stock, Preferred Stock or other security (including
any option to purchase such a convertible security), (iii) any security carrying
any warrant or right directly or indirectly to subscribe to or purchase any
Common Stock, Preferred Stock or other security or (iv) any such warrant or
right.

     4.2 PRE-EMPTIVE RIGHTS. If the Company proposes to issue any Equity
Securities, it shall give the Investor written notice of its intention,
describing the Equity Securities, the price and the terms and conditions upon
which the Company proposes to issue the same. The Investor shall have 45 days
from the giving of such notice to agree to purchase its pro rata share of the
Equity Securities for the price and upon the terms and conditions specified in
the notice by giving written notice to the Company and stating therein the
quantity of Equity Securities to be purchased. Notwithstanding the foregoing,
the Company shall not be required to offer or sell such Equity Securities to the
Investor if the Investor would cause the Company to be in violation of
applicable federal securities laws by virtue of such offer or sale and there is
no other way to avoid such violation.

     4.3 ISSUANCE OF EQUITY SECURITIES TO OTHER PERSONS. If the Investor does
not elect to purchase its pro rata share of the Equity Securities, then the
Company shall have ninety (90) days thereafter to sell the Equity Securities in
respect of which the Investor's rights were not exercised, at a price not lower
and upon general terms and conditions not materially more favorable to the
purchasers thereof than specified in the Company's notice to the Investor
pursuant to Section 4.2 hereof. If the Company has not sold such Equity
Securities within ninety (90) days of the notice provided pursuant to Section
4.2, the Company shall not thereafter issue or sell any Equity Securities,
without first offering such securities to the Investor in the manner provided
above.

     4.4 TERMINATION AND WAIVER OF PRE-EMPTIVE RIGHTS AND RIGHTS OF FIRST
REFUSAL. The pre-emptive rights and rights of first refusal established by this
Section 4 shall not apply to, and shall terminate upon an Acquisition.
Notwithstanding Section 5.5 hereof, the rights of first refusal established by
this Section 4 may be amended, or any provision waived with and only with the
written consent of the Company and the Investor.

     4.5 ASSIGNMENT OF PRE-EMPTIVE RIGHTS AND RIGHTS OF FIRST REFUSAL. The
pre-emptive rights and rights of first refusal of each Investor under this
Section 4 may be assigned in whole or in part, at any time or times, to any
party permitted under applicable federal and state securities laws.

     4.6 EXCLUDED SECURITIES. The rights of first refusal established by this
Section 4 shall have no application to any of the following Equity Securities:

          (A) Shares of Common Stock and/or options, warrants or other Common
Stock purchase rights and the Common Stock issued pursuant to such options,
warrants or other rights (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like after the date hereof) issued or to be
issued after the date hereof to employees, officers or directors of, or
consultants or advisors to the Company or any subsidiary, pursuant to customary
employee incentive stock

<PAGE>

purchase or stock option plans or other arrangements that are approved by the
Board of Directors;

          (B) any Equity Securities issued for consideration other than cash
pursuant to a merger, consolidation, acquisition or similar business combination
approved by the Board of Directors;

          (C) any Equity Securities issued in connection with any stock split,
stock dividend or recapitalization by the Company;

          (D) any Equity Securities issued in connection with strategic
transactions involving the Company and other entities, including, without
limitation (i) joint ventures, manufacturing, marketing or distribution
arrangements or (ii) technology transfer or development arrangements; provided
that the issuance of shares therein has been approved by the Company's Board of
Directors and provided further that such transaction is not substantially for
financing purposes.

SECTION 5. MISCELLANEOUS.

     5.1 GOVERNING LAW. This Agreement shall be governed by and construed under
the laws of the State of DELAWARE in all respects as such laws are applied to
agreements among Delaware residents entered into and to be performed entirely
within Delaware, without reference to conflicts of laws or principles thereof.
The parties agree that any action brought by either party under or in relation
to this Agreement, including without limitation to interpret or enforce any
provision of this Agreement, shall be brought in, and each party agrees to and
does hereby submit to the jurisdiction and venue of, any state or federal court
located in the County of Wilmington, Delaware.

     5.2 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
parties hereto and their respective successors, assigns, heirs, executors, and
administrators and shall inure to the benefit of and be enforceable by each
person who shall be a holder of Registrable Securities from time to time;
provided, however, that prior to the receipt by the Company of adequate written
notice of the transfer of any Registrable Securities specifying the full name
and address of the

<PAGE>

transferee, the Company may deem and treat the person listed as the holder of
such shares in its records as the absolute owner and holder of such shares for
all purposes, including the payment of dividends or any redemption price.

     5.3 ENTIRE AGREEMENT. This Agreement, the Exhibits and Schedules hereto,
the Purchase Agreement and the other documents delivered pursuant thereto
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and no party shall be liable or bound to any
other in any manner by any oral or written representations, warranties,
covenants and agreements except as specifically set forth herein and therein.
Each party expressly represents and warrants that it is not relying on any oral
or written representations, warranties, covenants or agreements outside of this
Agreement.

     5.4 SEVERABILITY. In the event one or more of the provisions of this
Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

     5.5 AMENDMENT AND WAIVER.

          (A) Except as otherwise expressly provided, this Agreement may be
amended or modified, and the obligations of the Company and the rights of the
Holders under this Agreement may be waived, only upon the written consent of the
Company and the holders of at least a majority of the then-outstanding
Registrable Securities.

          (B) For the purposes of determining the number of Holders entitled to
vote or exercise any rights hereunder, the Company shall be entitled to rely
solely on the list of record holders of its stock as maintained by or on behalf
of the Company.

     5.6 DELAYS OR OMISSIONS. It is agreed that no delay or omission to exercise
any right, power, or remedy accruing to any party, upon any breach, default or
noncompliance by another party under this Agreement shall impair any such right,
power, or remedy, nor shall it be construed to be a waiver of any such breach,
default or noncompliance, or any acquiescence therein, or of any similar breach,
default or noncompliance thereafter occurring. It is further agreed that any
waiver, permit, consent, or approval of any kind or character on any party's
part of any breach, default or noncompliance under the Agreement or any waiver
on such party's part of any provisions or conditions of this Agreement must be
in writing and shall be effective only to the extent specifically set forth in
such writing. All remedies, either under this Agreement, by law, or otherwise
afforded to any party, shall be cumulative and not alternative.

     5.7 NOTICES. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed electronic mail or facsimile if
sent during normal business hours of the recipient; if not, then on the next
business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1) day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. All communications shall be
sent to the party to be notified at the address as set forth on

<PAGE>

the signature pages hereof or at such other address or electronic mail address
as such party may designate by ten (10) days advance written notice to the other
parties hereto.

     5.8 TITLES AND SUBTITLES. The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

     5.9 ADDITIONAL INVESTORS. Notwithstanding anything to the contrary
contained herein, if the Company shall issue additional shares of its Preferred
Stock pursuant to the Purchase Agreement or the Conversion Agreement, any
purchaser of such shares of Preferred Stock shall become a party to this
Agreement by executing and delivering an additional counterpart signature page
to this Agreement and shall be deemed an "INVESTOR," a "Holder" and a party
hereunder. Notwithstanding anything to the contrary contained herein, if the
Company shall issue Equity Securities in accordance with Section 4.7 (c) or (e)
of this Agreement, any purchaser of such Equity Securities may become a party to
this Agreement by executing and delivering an additional counterpart signature
page to this Agreement and shall be deemed an "INVESTOR," a "HOLDER" and a party
hereunder.

     5.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

     5.11 AGGREGATION OF STOCK. All shares of Registrable Securities held or
acquired by affiliated entities or persons or persons or entities under common
management or control shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement.

     5.12 PRONOUNS. All pronouns contained herein, and any variations thereof,
shall be deemed to refer to the masculine, feminine or neutral, singular or
plural, as to the identity of the parties hereto may require.

     5.13 TERMINATION. This Agreement shall terminate and be of no further force
or effect upon an Acquisition.

                            [Signature Page Follows]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this AMENDED AND
RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first
paragraph hereof.

COMPANY:                                INVESTOR:

NORTHWEST BIOTHERAPEUTICS, INC.         TOUCAN CAPITAL FUND II, L.P.

18701 120th Avenue, NE                  7600 Wisconsin Avenue
Suite 101                               Suite 700
Bothell, WA 98011                       Bethesda, MD 20814

By:                                     By:
    ---------------------------------       ------------------------------------
                                        Title:
                                               ---------------------------------

                  [SIGNATURE PAGE TO INVESTOR RIGHTS AGREEMENT]

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