Document:

Form of Placement Agency Agmt with JP Morgan

 EXHIBIT 10.1 
  
 [Form of Placement Agency Agreement] 
  
 DENDREON CORPORATION 
  
 ______________ Shares of Common Stock, $0.001 par value per share 
  
  
 PLACEMENT AGENCY AGREEMENT 
  
 ________ ___, 2003 
  
 J.P. Morgan Securities Inc. 
 As Placement Agent 
 One Bush Street 
 San Francisco, CA 94104 
  
 Dear Sir or Madam: 
  
 Dendreon Corporation, a Delaware corporation (the “Company”), proposes to issue and sell __________ shares (the “Shares”) of common stock, par value $0.001 per share (the “Common Stock”), to certain
investors (collectively, the “Investors”). The Company desires to engage you as its placement agent (the “Placement Agent”) in connection with such issuance and sale. The Shares are more fully described in the Registration
Statement (as hereinafter defined). 
  
 The Company hereby confirms as follows its agreements with the Placement
Agent. 
  
 1.    Agreement to Act as Placement Agent.    On the basis
of the representations, warranties and agreements of the Company herein contained and subject to all the terms and conditions of this Agreement and the engagement letter, dated October 28, 2002, between the Company and the Placement Agent, as
amended January 3, 2003 (as amended, the “Engagement Letter”), the Placement Agent agrees to act as the Company’s exclusive placement agent in connection with the issuance and sale, on a best efforts basis, by the Company of the
Shares to the Investors. The Company acknowledges and agrees that the Placement Agent’s engagement hereunder is not an agreement by the Placement Agent or any of its affiliates to underwrite or purchase any securities or otherwise provide any
financing. As compensation for its services hereunder, the Company agrees to pay the Placement Agent a placement fee or fees in accordance with paragraph (b) of Section 4 of the Engagement Letter. 
  
 2.    Delivery and Payment.    Subject to the terms and conditions hereof, payment of the
purchase price for, and delivery of certificates for, the Shares shall be made at the office of Cooley Godward LLP, 4401 Eastgate Mall, San Diego, California 92121, or at such other place as shall be agreed upon by J.P. Morgan Securities Inc. and
the Company, at 9:00 A.M., California time, on the third or fourth business day (as permitted under Rule 15c6-1 

 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) after the determination of the public offering price of
the Shares (such time and date of payment and delivery being herein called the “Closing Date”). 
  
 Subject
to the terms and conditions hereof, payment of the purchase price for the Shares shall be made to or upon the order of the Company by wire transfer in Federal (same day) funds to the Company, upon delivery of certificates for the Shares, through the
facilities of The Depository Trust Company, to such persons, and shall be registered in such name or names and shall be in such denominations, as the Placement Agent may request at least one business day before the Closing Date. Payment of the
purchase price for the Shares shall be made on the Closing Date by the purchasers thereof directly to the Company or by such purchaser to the Placement Agent who will remit such funds to the Company. 
  
 Certificates evidencing the Shares shall be in definitive form and shall be registered in such names and in such denominations as the
Placement Agent shall request by written notice to the Company. 
  
 3.    Representations and
Warranties of the Company.    The Company represents and warrants and covenants to the Placement Agent that: 
  
         (a)    The Company has filed with the Securities and Exchange Commission (the “Commission”) a “shelf” registration statement on Form S-3
relating to the Common Stock of the Company (Registration No. 333-102351), which has become effective under the Securities Act of 1933, as amended (the “Act”), and the rules and regulations (collectively referred to as the “Rules and
Regulations”) of the Commission thereunder. The Commission has not issued any order preventing or suspending the use of the Prospectus or the Preliminary Prospectus (as defined below). The term “Preliminary Prospectus” as used herein
means a preliminary prospectus (including any related preliminary prospectus supplement) relating to the Shares as contemplated by Rule 430 or Rule 430A (“Rule 430A”) of the Rules and Regulations included at any time as part of the
registration statement, including all material incorporated by reference therein. Copies of such registration statement and amendments and of each related Preliminary Prospectus have been delivered to the Placement Agent by means of EDGAR. A final
prospectus (which will include a prospectus supplement (the “Prospectus Supplement”) relating to the offering of the Shares) relating to the Shares containing information permitted to be omitted at the time of effectiveness by Rule 430A
will be filed by the Company with the Commission in accordance with Rule 424(b) of the Rules and Regulations promptly after execution and delivery of this Agreement. The term “Registration Statement” means such registration statement, as
amended, including the Prospectus, at the time it becomes or became effective (the “Effective Date”), including all material incorporated by reference therein and any information deemed to be included by Rule 430A. The term
“Prospectus” means the prospectus (including the Prospectus Supplement) relating to the Shares as first filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations or, if no such filing is required, the form of final
prospectus (including the Prospectus Supplement) relating to the Shares included in the Registration Statement on the date it became effective, in either case, including all material, if any, incorporated by reference therein. 

 
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         (b)    When the Registration Statement became
effective, as of the date hereof, and at all times subsequent thereto through and including the Closing Date (as defined in Section 2), the Registration Statement (and any post-effective amendment thereto) and the Prospectus (as amended or as
supplemented if the Company shall have filed with the Commission any amendment or supplement to the Registration Statement or the Prospectus) complied and will comply in all material respects with the Act and the Rules and Regulations and did not
and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the light of the circumstances under which they were made, in the case of
the Prospectus) not misleading; each Preliminary Prospectus, as of the date filed with the Commission, did not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; except that no representation or warranty is made in this Section 3(b) with respect to statements or omissions made in reliance upon and in conformity
with (i) written information furnished to the Company expressly for inclusion in any Preliminary Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereto, as stated in Section 7(b) hereof with respect to the
Placement Agent or any Investor by or on behalf of the Placement Agent or (ii) Schedule 13Ds or Schedule 13Gs filed by any Investor or any other third party. The Company has not distributed any offering material in connection with the offering or
sale of the Common Stock, other than the Registration Statement, the Preliminary Prospectus and the Prospectus. 
  
         (c)    The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. The Company has full corporate
power and authority to conduct all the activities conducted by it, to own or lease all the assets owned or leased by it and to conduct its business as described in the Registration Statement and the Prospectus (or, if the Prospectus is not in
existence, in the most recent Preliminary Prospectus). The Company is duly licensed or qualified to do business and in good standing as a foreign organization in all jurisdictions in which the nature of the activities conducted by it or the
character of the assets owned or leased by it makes such licensing or qualification necessary, except where any failures to be so licensed or qualified will not individually or in the aggregate have a material adverse effect on the business,
properties, operations, financial condition or results of operations of the Company. The Company does not own, directly or indirectly, any shares of capital stock or any other equity securities of any corporation or have any equity interest in any
firm, partnership, joint venture, association or other entity, other than equity securities held by the Company in its investment portfolio. Complete and correct copies of the articles or certificate of incorporation and of the bylaws of the Company
and all amendments thereto have been made available to the Placement Agent by EDGAR, and no changes therein will be made subsequent to the date hereof and prior to the Closing Date without notice to the Placement Agent. 
  
         (d)    The issued and outstanding shares of capital stock of the
Company have been duly and validly authorized and issued, are fully paid and nonassessable and are not subject to any preemptive or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in the Registration
Statement and the Prospectus as of the dates referred to therein with respect to such information. The description of the securities of the Company in the Registration Statement and the Prospectus is complete and accurate in all 

 
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 material respects. Except as set forth in the Registration Statement and the Prospectus, the Company does not have outstanding any options to
purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities except for options issued
subsequent to the dates referred to in the Registration Statement and the Prospectus with respect to option information, pursuant to the Company’s employee benefit plans, and the Company’s obligation to sell $2.0 million of its Common
Stock to Genentech, Inc. upon the achievement of certain milestones under its collaboration with Genentech, Inc. 
  
         (e)    The Company has full corporate power and authority to execute and deliver this Agreement and perform the transactions contemplated hereby. This Agreement has
been duly and validly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable against the Company in accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and equitable principles of general applicability and except insofar as the indemnification provisions of this Agreement may be limited by applicable law. 
  
         (f)    The issuance and sale of the Shares have been duly and validly
authorized by the Company, and the Shares, when delivered by the Company in accordance with this Agreement, assuming receipt of consideration therefor as provided in this Agreement, will be duly and validly issued, fully paid and nonassessable and
will not have been issued in violation of or subject to any preemptive or similar rights. The Shares, when issued, will conform in all material respects to the description thereof set forth in the Registration Statement and the Prospectus.

  
         (g)    The financial statements and the
related notes and schedules included in the Registration Statement and the Prospectus present fairly, in all material respects, the financial condition of the Company as of the dates thereof and the results of its operations and cash flows for the
periods covered thereby, and have been prepared in conformity with generally accepted accounting principles (“GAAP”) consistently applied during the periods covered (subject, in the case of unaudited financial statements, to the absence of
footnotes and normal year-end adjustments). No other financial statements or schedules of the Company or any other entity are required by the Act or the Rules and Regulations to be included in the Registration Statement or the Prospectus. Ernst
& Young LLP (the “Accountants”), who have reported on such financial statements and schedules, are independent accountants with respect to the Company as required by the Act and the Rules and Regulations. The financial statements of
the Company and the related notes and schedules included in the Registration Statement and the Prospectus have been prepared in conformity, in all material respects, with the requirements of the Act and the Rules and Regulations. 

 
         (h)    The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that in all material respects (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

 
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         (i)    Subsequent to the respective dates as of which
information is given in the Registration Statement and the Prospectus and prior to the Closing Date, except as set forth in the Registration Statement and the Prospectus, (i) there has not been and will not have been any change in the capitalization
of the Company other than non-material changes in the ordinary course of business, or any material adverse change, arising for any reason whatsoever, in the business, properties, financial condition or results of operations of the Company,
(ii) the Company has not incurred nor will it incur any material liabilities or obligations, direct or indirect, actual or contingent, nor has the Company entered into nor will it enter into any material transactions other than pursuant to this
Agreement and the transactions referred to herein (other than, in each case, the Company’s $4 million lease line agreement with GE Capital entered into on December 31, 2002) and (iii) the Company has not and will not have paid or declared
any dividends or other distributions of any kind in respect of its capital stock. 
  
         (j)    Any real property and buildings held under lease to the Company are held or leased by the Company under valid, binding and enforceable leases conforming in
all material respects to the description thereof set forth in the Registration Statement and the Prospectus, with such exceptions as do not materially interfere with the use made and proposed to be made of such property and buildings by the Company.

  
         (k)    The Company is not and, upon
consummation of the transactions contemplated herein will not be, subject to registration as an “investment company” under the Investment Company Act of 1940, as amended. 
  
         (l)    Except as set forth in the Registration Statement and the Prospectus, there are no actions, suits
or proceedings pending or, to the Company’s knowledge, threatened against or affecting the Company or any of its directors or officers in their capacity as such, before or by any court, commission, regulatory body, administrative agency or
other governmental body, domestic or foreign that are required to be disclosed in the Registration Statement or the Prospectus, including pursuant to Regulation S-X or Regulation S-K of the Rules and Regulations. 
  
         (m)    The Company has (i) all governmental licenses, permits,
consents, orders, approvals and other authorizations necessary to carry on its business as presently conducted except where the failure to have any such governmental licenses, permits, consents, orders, approvals and other authorizations would not
individually or in the aggregate have a material adverse effect on the business, properties, financial condition or results of operations of the Company, (ii) complied with all laws, regulations and orders applicable to either it or its business,
except where any failures to so comply would not individually or in the aggregate have a material adverse effect on the business, properties, financial condition or results of operations of the Company, and (iii) performed all its obligations
required to be performed, and is not, to the Company’s knowledge, in default, under any material indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture, note agreement, lease, contract or other agreement or
instrument (collectively, a “material contract or other agreement”) to which it is a party or by which its property is bound, except as otherwise set forth in the Registration Statement and the Prospectus and except where any such defaults
would not individually or in the aggregate have a material adverse effect on the business, properties, financial condition or results of operations of the Company, and, to the Company’s knowledge, no other party under any 

 
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 material contract or other agreement to which the Company is a party is in default in any material respect thereunder. The Company is not in
violation of any provision of its certificate of incorporation or by-laws. 
  
         (n)    Neither the execution, delivery and performance of this Agreement, nor the consummation of the transactions contemplated hereby, nor the compliance by the
Company with the terms and provisions hereof require the consent, approval, authorization, order, registration, filing, qualification, license or permit of or with any public, governmental or regulatory agency or body having jurisdiction over the
Company or its properties, except such as have been obtained, or such as may be required under state securities or Blue Sky laws, or Rule 424(b) of the Act. 
  
         (o)    Neither the execution, delivery and performance of this Agreement, nor the consummation of any of the transactions
contemplated herein, nor the compliance by the Company with the terms and provisions hereof conflicts with, or results in a breach of, any of the terms and provisions of, or constitutes a default (or an event with which notice or lapse of time, or
both, would constitute such a default) under, or results in the creation or imposition of any lien, charge or encumbrance (except for such liens, charges or encumbrances as would not individually or in the aggregate have a material adverse effect on
the business, properties, financial condition or results of operations of the Company) pursuant to the terms of any material contract or other agreement to which the Company is a party or by which any material property or assets of the Company are
bound; nor does such action result in any violation of any provision of the Company’s organizational or governing documents, or any judgment, decree, order, statute, rule or regulation of any court or of any public, governmental or regulatory
agency or body having jurisdiction over the Company or its properties or assets. 
  
         (p)    There is no document or contract known to the Company of a character required to be described in the Registration Statement or the Prospectus or to be filed
as an exhibit to the Registration Statement that is not described or filed as required. All such contracts filed as exhibits to or disclosed in the Registration Statement or Prospectus to which the Company is a party have been duly authorized,
executed and delivered by the Company, constitute valid and binding agreements of the Company, and are enforceable against the Company in accordance with the terms thereof, subject to the effect of applicable bankruptcy, insolvency or similar laws
affecting creditors’ rights generally and equitable principles of general applicability. 
  
         (q)    No statement, representation or warranty made by the Company in this Agreement or made in any certificate or document required by this Agreement to be
delivered to the Placement Agent will be, when made, inaccurate, untrue or incorrect in any material respect. 
  
         (r)    The Company and its directors and officers have not taken, directly or indirectly, any action intended to cause or result, or which would reasonably be
expected to cause or result, under the Act or otherwise, in, or which has constituted, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares. 

 
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         (s)    No holder of securities of the Company has
rights to the registration of any securities of the Company as a result of the filing of the Registration Statement, other than rights which have been waived in writing. 
  
         (t)    The Common Stock currently outstanding is quoted on The Nasdaq National Market (the
“NNM”), and the Shares to be sold under this Agreement have been included, or will be included prior to the Closing Date, in a notification to be duly authorized for quotation on the NNM. 
  
         (u)    The Company is not involved in any dispute with the National
Labor Relations Board or a recognized labor union, which would have a material impact on the business properties, financial condition or results of operations of the Company, nor is any such dispute known by the Company to be threatened.

  
         (v)    Except as set forth in the
Registration Statement and the Prospectus, the business and operations of the Company have been and are being conducted in material compliance with all applicable laws, ordinances, rules, regulations, licenses, permits, approvals, plans,
authorizations or requirements relating to occupational safety and health, or pollution, or protection of health or the environment (including, without limitation, those relating to emissions, discharges, releases or threatened releases of
pollutants, contaminants or hazardous or toxic substances, materials or wastes into ambient air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, gaseous or liquid in nature) of any governmental department, commission, board, bureau, agency or instrumentality of the United
States, any state or political subdivision thereof, or any foreign jurisdiction, and all applicable judicial or administrative agency or regulatory decrees, awards, judgments and orders relating thereto, except where the failure to be in such
compliance will not, individually or in the aggregate, have a material adverse effect on the business, properties, financial condition or results of operations of the Company; and the Company’s internal legal counsel has no knowledge of and, to
his knowledge, has not received any notice from any governmental instrumentality or any third party alleging any material violation thereof or liability thereunder (including, without limitation, liability for costs of investigating or remediating
sites containing hazardous substances and/or damages to natural resources). 
  
         (w)    Except as disclosed in or specifically contemplated by the Registration Statement or the Prospectus, (i) the Company owns or has obtained valid and
enforceable licenses or options for the material inventions, patent applications, patents, trademarks (both registered and unregistered), tradenames, copyrights and trade secrets necessary for the conduct of any material portion of the business of
the Company as currently conducted; and (ii) (a) to the Company’s knowledge, there are no third parties who have any ownership rights to any material intellectual property that is owned by, or has been licensed to, the Company for the products
and services described in the Registration Statement and the Prospectus that would preclude the Company from conducting its business as currently conducted; (b) there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding or claim by others challenging the rights of the Company in or to any intellectual property owned or, to the Company’s knowledge, licensed or optioned by the Company; (d) there is no pending or, to the 

 
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 Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any intellectual property
owned or, to the Company’s knowledge, licensed or optioned by the Company; and (e) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company infringes or otherwise
violates any patent, trademark, copyright, trade secret or other proprietary right of others. 
  
         (x)    The Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and
the Company has no knowledge of any tax deficiency which has been threatened against it which could have a material adverse effect on the business, financial condition or results of operations of the Company. 
  
         (y)    On the Closing Date, all stock transfer or other taxes (other
than income taxes) which are required to be paid by the Company in connection with the sale and transfer of the Shares to be sold hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will
be or will have been fully complied with. 
  
         (z)    The Company maintains insurance of the types and in the amounts that the Company reasonably believes is adequate for its business, including, but not limited
to, insurance covering all real and personal property owned or leased by the Company, against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies, all of which insurance is in
full force and effect. 
  
         (aa)    To the
knowledge of the Company, it has not at any time since its incorporation, directly or indirectly, (i) made any unlawful contribution to any candidate for public office, or failed to disclose fully any contribution in violation of law, or (ii) made
any payment to any federal or state governmental officer or official, or other person charged with similar public duties, other than payments required or permitted by the laws of the United States or any jurisdiction thereof. 

 
 4.    Agreements of the Company.    The Company covenants and agrees with the
Placement Agent as follows: 
  
         (a)    The
Company will not, during such period as the Prospectus would be required by law to be delivered in connection with sales of the Shares by an underwriter or dealer in connection with the offering contemplated by this Agreement (the “Prospectus
Delivery Period”), file any amendment or supplement to the Registration Statement or the Prospectus, unless a copy thereof shall first have been submitted to the Placement Agent within a reasonable period of time prior to the filing thereof and
the Placement Agent shall not have objected thereto in good faith. 
  
         (b)    During the Prospectus Delivery Period, the Company will notify the Placement Agent promptly, and will confirm such advice in writing, (i) when any
post-effective amendment to the Registration Statement becomes effective, (ii) of any request by any securities or other governmental authority (including, without limitation, the Commission) of any jurisdiction for amendments or supplements to the
Registration Statement or the Prospectus or for additional information, (iii) of the issuance by any securities or other governmental 

 
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 authority (including, without limitation, the Commission) of any jurisdiction of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose or the threat (known by the Company) thereof, and (iv) of receipt by the Company (which receipt is known to the Company) or any representative or attorney of the Company of any other
communication from the securities or other governmental authority (including, without limitation, the Commission) of any jurisdiction relating to any of the Registration Statement, any Preliminary Prospectus or the Prospectus in connection with the
offering contemplated hereby. If at any time any securities or other governmental authority (including, without limitation, the Commission) of any jurisdiction shall issue any order suspending the effectiveness of the Registration Statement in
connection with the offering contemplated hereby, the Company will make every reasonable effort to obtain the withdrawal of such order at the earliest possible moment. 
  
         (c)    If, at any time when a Prospectus relating to the Shares is required to be delivered under the
Act, any event occurs as a result of which the Prospectus, as then amended or supplemented, would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or the Registration Statement, as then amended, would include any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading,
or if for any other reason it is necessary at any time to amend or supplement the Prospectus or the Registration Statement to comply with the Act or the Rules and Regulations, the Company will promptly notify the Placement Agent and, subject to
Section 4(a) hereof, will promptly prepare and file with the Commission, at the Company’s expense, an amendment to the Registration Statement or an amendment or supplement to the Prospectus that corrects such statement or omission or effects
such compliance and will deliver to the Placement Agent without charge, such number of copies thereof as the Placement Agent may reasonably request. The Company consents to the use of the Prospectus or any amendment or supplement thereto by the
Placement Agent. 
  
         (d)    The Company will
furnish to the Placement Agent and its counsel, upon request, without charge, (i) one signed copy of the registration statement described in Section 3(a) hereof and all exhibits thereto (other than exhibits incorporated by reference from EDGAR) and
(ii) so long as a Prospectus relating to the Shares is required to be delivered under the Act, as many copies of each Preliminary Prospectus or the Prospectus or any amendment or supplement the Placement Agent may reasonably request. 

 
         (e)    The Company will comply with all the undertakings
contained in the Registration Statement. 
  
         (f)    Prior to the sale of the Shares to the Investors, the Company will cooperate with the Placement Agent and its counsel in connection with the registration or
qualification of the Shares for offer and sale under the state securities or Blue Sky laws of such jurisdictions as the Placement Agent may request; provided, that in no event shall the Company be obligated to qualify to do business in any
jurisdiction where it is not now so qualified or to take any action which would subject it to general service of process or taxation in any jurisdiction where it is not now so subject. 

 
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         (g)    The Company will make generally available to
holders of its securities, as soon as may be practicable, but in no event later than the last day of the fifteenth full calendar month following the calendar quarter in which the Effective Date falls, a consolidated earnings statement (which need
not be audited but shall be in reasonable detail) for a period of 12 months ended commencing after the Effective Date, and satisfying the provisions of Section 11(a) of the Act (including Rule 158 of the Rules and Regulations). 

 
         (h)    The Company will not at any time, directly or
indirectly, take any action prohibited by Regulation M of the Exchange Act in connection with the distribution of the Shares contemplated hereby. 
  
         (i)    The Company will apply the net proceeds from the offering and sale of the Shares in the manner set forth in the Prospectus
under the caption “Use of Proceeds.” 
  
 5.    Expenses.    Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company will pay all costs and expenses incident to
the performance of the obligations of the Company under this Agreement, including but not limited to costs and expenses of or relating to (i) the preparation and filing of the Registration Statement (including each pre- and post-effective amendment
thereto) and exhibits thereto, each Preliminary Prospectus, the Prospectus and any amendment or supplement to the Prospectus, including all fees, disbursements and other charges of counsel to the Company, (ii) the preparation and delivery of
certificates representing the Shares, (iii) furnishing (including costs of shipping and mailing) such copies of the Prospectus and any Preliminary Prospectus, and all amendments and supplements to the Prospectus, as may be requested for use in
connection with the placement of the Shares, (iv) the listing of the Shares on the NMS, (v) any filings required to be made by the Placement Agent with the NASD, (vi) the registration or qualification of the Shares for offer and sale under the
securities or Blue Sky laws of such jurisdictions designated pursuant to Section 4(f), and (vii) fees, disbursements and other charges of counsel and auditors to the Company. 
  
 6.    Conditions of the Obligations of the Placement Agent.    The obligations of the Placement Agent hereunder are subject
to the following conditions: 
  
         (a)    Notification that the Registration Statement has become effective shall be received by the Placement Agent not later than 5:00 p.m., California time, on the
date of this Agreement or at such later date and time as shall be consented to in writing by the Placement Agent and all filings required by Rule 424 of the Rules and Regulations and Rule 430A shall have been made. 
  
         (b)    (i)  No stop order suspending the effectiveness of
the Registration Statement shall have been issued, and no proceedings for that purpose shall be pending or threatened by the Commission, (ii) no order suspending the effectiveness of the Registration Statement or the qualification or registration of
the Shares under the securities or Blue Sky laws of any jurisdiction shall be in effect and no proceeding for such purpose shall be pending before or, to the Company’s knowledge, threatened or contemplated by any securities or other
governmental authority, (iii) any request for additional information on the part of the staff of any securities or other governmental authority (including, without limitation, the Commission) shall 

 
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 have been complied with to the satisfaction of the staff of the Commission or such authorities and (iv) after the date hereof no amendment or
supplement to the Registration Statement or the Prospectus shall have been filed unless a copy thereof was first submitted to the Placement Agent and the Placement Agent did not object thereto in good faith. 
  
         (c)    Since the respective dates as of which information is given in
the Registration Statement and the Prospectus, (i) there shall not have been a material adverse change in the business, properties, financial condition or results of operations of the Company, whether or not arising from transactions in the ordinary
course of business, in each case other than as set forth in the Registration Statement and the Prospectus, and (ii) the Company shall not have sustained any material loss or interference with its business or properties from fire, explosion, flood or
other casualty, whether or not covered by insurance, or from any labor dispute or any court or legislative or other governmental action, order or decree, which is not set forth in the Registration Statement and the Prospectus, if in the judgment of
the Placement Agent any such development makes it impracticable or inadvisable to consummate the sale and delivery of the Shares to Investors at the public offering price. 
  
         (d)    Since the respective dates as of which information is given in the Registration Statement and the
Prospectus, there shall have been no litigation or other proceeding instituted against the Company or its officers or directors in their capacities as such, before or by any court, commission, regulatory body, administrative agency or other
governmental body, domestic or foreign, which if determined adversely to the Company could materially and adversely affect the business, properties, properties, financial condition or results of operations of the Company. 
  
         (e)    Each of the representations and warranties of the Company
contained herein shall be true and correct at the Closing Date in all material respects, as if made on such date, and all covenants and agreements herein contained to be performed on the part of the Company and all conditions herein contained to be
fulfilled or complied with by the Company at or prior to the Closing Date shall have been duly performed, fulfilled or complied with. 
  
         (f)    The Placement Agent shall have received an opinion, dated the Closing Date, of Cooley Godward LLP, as special counsel to the Company, in form and
substance reasonably satisfactory to the Placement Agent. 
  
         (g)    Concurrently with the execution and delivery of this Agreement, and at the Closing Date, the Accountants shall have furnished to the Placement Agent a letter,
dated the date of its delivery, addressed to the Placement Agent and in form and substance reasonably satisfactory to the Placement Agent. 
  
         (h)    At the Closing Date, there shall be furnished to the Placement Agent a certificate, dated the date of its delivery, signed by each of the Chief
Executive Officer and the Chief Financial Officer of the Company, in form and substance satisfactory to the Placement Agent to the effect that to each of such person’s knowledge: 

 
 11 

                 (i)    Each signer of such certificate has carefully examined the Registration Statement and the Prospectus and (A)
as of the date of such certificate, (x) the Registration Statement does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not
misleading and (y) the Prospectus does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading and (B) since the Effective Date no event has occurred as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein not untrue or misleading in any material
respect. 
  
                 (ii)    Each of the representations and warranties of the Company contained in this Agreement were, when originally
made, and are, at the time such certificate is delivered, true and correct in all material respects. 
  
                 (iii)    Each of the covenants (not waived by the Placement Agent) required herein to be performed by the Company on
or prior to the date of such certificate has been duly, timely and fully performed and each condition herein required to be complied with by the Company on or prior to the delivery of such certificate has been duly, timely and fully complied with.

  
                 (iv)    No stop order suspending the effectiveness of the Registration Statement or of any part thereof has been
issued and no proceedings for that purpose have been instituted by the Commission. 
  
                 (v)    Subsequent to the date of the most recent financial statements in the Prospectus, there has been no material
adverse change in the business, properties, financial condition or results of operations of the Company, except as set forth in the Prospectus. 
  
                 (vi)    No order suspending the effectiveness of the Registration Statement or the
qualification or registration of the Shares under the securities or Blue Sky laws of any jurisdiction is in effect and no proceeding for such purpose is pending, or to such signer’s knowledge, threatened or contemplated by any securities or
other governmental authority. 
  
         (i)    The
Shares shall be qualified for sale in such states as the Placement Agent may reasonably request, each such qualification shall be in effect and not subject to any stop order or other proceeding on the Closing Date; provided that in no event shall
the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take any action which would subject it to taxation or general service of process in any jurisdiction where it is not now so subject.

  
         (j)    The Shares shall have been included in
a notification to be duly authorized for quotation on the NNM. 
  
         (k)    The NASD shall have confirmed that it has not raised any objection with respect to the fairness and reasonableness of the placement agency terms and
arrangements. 

 
 12 

 7.    Indemnification. 
  
         (a)    The Company shall indemnify and hold harmless the Placement Agent, the directors, officers,
employees and agents of the Placement Agent and each person, if any, who controls the Placement Agent within the meaning of Section 15 of the Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from
and against any and all losses, claims, liabilities, expenses and damages, joint or several (including any and all investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit
or proceeding or any claim asserted), to which it, or any of them, may become subject under the Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages
arise out of or are based on (i) any untrue statement or alleged untrue statement of any material fact contained in any Preliminary Prospectus, the Registration Statement or the Prospectus or any amendment or supplement to the Registration Statement
or the Prospectus or (ii) the omission or alleged omission to state in any Preliminary Prospectus, the Registration Statement or the Prospectus or any amendment or supplement to the Registration Statement or the Prospectus a material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; provided, however, that the Company will not be liable to the extent that such loss, claim, liability, expense
or damage is based solely (i) on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information relating to the Placement Agent furnished in writing to the Company by the Placement
Agent expressly for inclusion in the Registration Statement, any Preliminary Prospectus or the Prospectus or any amendment or supplement to the Registration Statement or the Prospectus or (ii) statements included in a Schedule 13D or Schedule 13G
filed by a third party, and provided further, that such indemnity with respect to any Preliminary Prospectus shall not inure to the benefit of the Placement Agent (or any director, officer or employee of the Placement Agent or person controlling the
Placement Agent) through whom the person asserting any such loss, claim, damage, liability or expense arranged the purchase of the Shares which are the subject thereof to the extent that any such loss, claim, damage, liability or expense (i) results
from the fact that the Placement Agent failed to send or give a copy of the Prospectus (as amended or supplemented) to such person at or prior to the confirmation of the sale of such Shares to such person in any case where such delivery is required
by the Act and (ii) arises out of or is based upon an untrue statement or omission of a material fact contained in such Preliminary Prospectus that was corrected in the Prospectus (or any amendment or supplement thereto), unless such failure to
deliver the Prospectus (as amended or supplemented) was the result of noncompliance by the Company with Section 4(c). This indemnity agreement will be in addition to any liability that the Company may otherwise have. 
  
         (b)    The Placement Agent will indemnify and hold harmless the
Company, each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, each director of the Company and each officer of the Company who signs the Registration Statement to the same
extent as the foregoing indemnity from the Company to the Placement Agent, but only insofar as losses, claims, liabilities, expenses or damages arise out of or are based on any untrue statement or omission or alleged untrue statement or omission
made in reliance on and in conformity with information relating to the Placement Agent furnished in writing to the Company by the Placement Agent expressly for use in the Registration Statement, any Preliminary Prospectus or the Prospectus or any
amendment or supplement to the Registration Statement or the Prospectus. This indemnity agreement will be in addition to any liability that the Placement Agent might otherwise have. 

 
 13 

         (c)    Any party that proposes to assert the right to
be indemnified under this Section 7 will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 7, notify each such
indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve it from any liability that it may have to any indemnified party under the foregoing
provisions of this Section 7 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the
indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the
action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the
indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses under this Section 7 except as provided below and except for the reasonable costs of
investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at
the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that a
conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party that would prevent the counsel selected by the indemnifying party from representing the indemnified party (in which case
the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (3) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time
after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying
party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such
jurisdiction at any one time for all such indemnified party or parties. The indemnifying party will reimburse all such fees, disbursements and other charges promptly as they are incurred. The indemnifying party will not, without the prior written
consent of the indemnified party or parties (which consent will not be unreasonably withheld), settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which
indemnification has been sought hereunder (whether or not the indemnified party or parties or any person who controls the indemnified party or parties within the meaning of Section 15 of the Act or Section 20 of the Exchange Act is a party to such
claim, action, suit or proceeding), unless such settlement, compromise or consent includes an unconditional release of the indemnified party or parties and each such controlling person from all liability arising out of such claim, action, suit or
proceeding. Notwithstanding anything else in this Agreement, an indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). 

 
 14 

         (d)    In order to provide for just and equitable
contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 7 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the Placement Agent,
the Company and the Placement Agent will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of,
any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Placement Agent such as persons who control the Company within the meaning of the Act or the Exchange Act,
officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution, and after deducting any contribution received by the Placement Agent from persons other than the Company) to which
the Company and the Placement Agent may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agent on the other. The relative benefits received by the
Company on the one hand and the Placement Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting Company expenses other than fees payable to the Placement Agent) received by the
Company as set forth on the cover page of the Prospectus Supplement bear to the fee received by the Placement Agent, also as set forth on the cover of the Prospectus Supplement. If, but only if, the allocation provided by the foregoing sentence is
not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one
hand, and the Placement Agent on the other, with respect to the statements or omissions which resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with
respect to such offering. Such relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the
Company or the Placement Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Placement Agent agree that it would not be just and
equitable if contribution pursuant to this Section 7(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by
an indemnified party as a result of the loss, claim, liability, expense or damage, or action in respect thereof, referred to above in this Section 7(d) shall be deemed to include, for purpose of this Section 7(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 7(d), the Placement Agent shall not be required to contribute any amount in excess
of the fee received by it, and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section 7(d), any person who controls a party to this Agreement within the meaning of the Act or the Exchange Act will have the same rights to contribution as that party, and each officer of the Company who signed the Registration
Statement and each director of the Company will have the same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action
against such party in respect of 

 
 15 

 which a claim for contribution may be made under this Section 7(d), will notify any such party or parties from whom contribution may be sought,
but the omission so to notify will not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 7(d). No party will be liable for contribution with respect to any action or
claim settled without its written consent (which consent will not be unreasonably withheld). 
  
 8.    Termination. 
  
         (a)    The obligations of the Placement Agent under this Agreement may be terminated at any time prior to the Closing Date, by notice to the Company from the
Placement Agent, without liability on the part of the Placement Agent to the Company if, prior to delivery and payment for the Shares, in the sole judgment of the Placement Agent (i) trading in the Common Stock of the Company shall have been
suspended by the Commission or by the NNM, (ii) trading in securities generally on the NNM shall have been suspended or limited or minimum or maximum prices shall have been generally established on the NNM, or additional material governmental
restrictions, not in force on the date of this Agreement, shall have been imposed upon trading in securities generally by the NNM or by order of the Commission or any court or other governmental authority, (iii) a general banking moratorium shall
have been declared by any Federal or state authority, or (iv) any material adverse change in the financial or securities markets in the United States or any outbreak or escalation of hostilities or acts of terrorism involving the United States or
declaration by the United States of a national emergency or war or other calamity or crisis shall have occurred, the effect of any of which is such as to make it, in the sole judgment of the Placement Agent, impracticable or inadvisable to market
the Shares on the terms and in the manner contemplated by the Prospectus. 
  
         (b)    The obligations of the parties under this Agreement shall be automatically terminated in the event that notice is given to the Company from the Placement
Agent, on or prior to the Closing Date, that payment for the Shares is not being transmitted by the Investors on the Closing Date. Each of the Company and the Placement Agent hereby acknowledges and agrees that, notwithstanding the provisions of
this Section 8(b) or Section 8(a), the provisions of the Engagement Letter relating to the engagement period and termination shall not be superceded by the provisions of this Section 8(b) or Section 8(a) and such provisions in the Engagement Letter
shall remain in full force and effect. 
  
         (c)    If this Agreement shall be terminated pursuant to any of the provisions hereof (otherwise than pursuant to Section 8 (b)), or if the sale of the Shares
provided for herein is not consummated because any condition to the obligations of the Placement Agent set forth herein is not satisfied or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or
comply with any provision hereof, the Company will, subject to demand by the Placement Agent and to the terms of the Engagement Letter, reimburse the Placement Agent for all reasonable out-of-pocket expenses incurred in connection herewith.

  
 9.    Notices.    Notice given pursuant to any of the provisions
of this Agreement shall be in writing and, unless otherwise specified, shall be mailed or delivered (a) if to the Company, at the office of the Company, 3005 First Avenue, Seattle, Washington 98121, Attention: Vice President, Legal Affairs, with a
copy to Cooley Godward LLP, 4401 Eastgate 

 
 16 

 Mall, San Diego, California 92121, Attention: Julie M. Robinson, or (b) if to the Placement Agent, at the office of J.P. Morgan Securities Inc.,
One Bush Street, San Francisco, CA 94104, Attention: Jordan A. Cantwell, with a copy to Latham & Watkins, 505 Montgomery Street, San Francisco, California, 94111, Attention: Kimberly Wilkinson. Any such notice shall be effective only upon
receipt. Any notice under Section 7 may be made by facsimile or telephone, but if so made shall be subsequently confirmed in writing. 
  
 10.    Survival.    The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company set forth in or made pursuant to this
Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, any of its officers or directors, the Placement Agent or any controlling person referred to in Section 7 hereof and (ii)
delivery of and payment for the Shares. The respective agreements, covenants, indemnities and other statements set forth in Sections 3, 5, 7 and 8(c) hereof shall remain in full force and effect, regardless of any termination or cancellation of this
Agreement. 
  
 11.    Successors.    This Agreement shall inure to the
benefit of and shall be binding upon the Placement Agent, the Company and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any
legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such
persons and for the benefit of no other person except that (i) the indemnification and contribution contained in Sections 7(a) and 7(d) of this Agreement shall also be for the benefit of the officers, directors, employees and agents of the Placement
Agent and any person or persons who control the Placement Agent within the meaning of Section 15 of the Act or Section 20 of the Exchange Act and (ii) the indemnification and contribution contained in Sections 7(b) and (d) of this Agreement shall
also be for the benefit of the directors of the Company, the officers of the Company who have signed the Registration Statement and any person or persons who control the Company within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act. No Investor shall be deemed a successor because of its purchase of Shares. 
  
 12.    Knowledge.    When used herein, the term “to the Company’s knowledge” or similar phrases shall refer to the knowledge of the following officers of the Company as of
the date hereof: Chief Executive Officer; Chief Financial Officer; and President. 
  
 13.    APPLICABLE LAW.    THE VALIDITY AND INTERPRETATIONS OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAWS. 
  
 14.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 

 
 17 

 15.    Entire Agreement.    This Agreement and the Engagement Letter
constitute the entire understanding between the parties hereto as to the matters covered hereby and supersedes all prior understandings, written or oral, relating to such subject matter. 
  
 Please confirm that the foregoing correctly sets forth the agreement between the Company and the Placement Agent. 
  
 
	  	 	 Very truly yours,
  
 
	  	 	 DENDREON CORPORATION.
  
  

 
 
	  	 	 By:                                     
                                        
                        
 
	  	 	 Name:
 
	  	 	 Title:
 

 
  
 Confirmed as of the date first 
 above mentioned: 
  
 J.P. MORGAN SECURITIES INC. 
  
  
  
 
	 By: ____________________________________
 
	 Name:
 	 	 Norman Colbert
 
	 Title:
 	 	 Managing Director
 

 

 
 18VISEON, INC.

                     YEAR 2003 CONSULTANT COMPENSATION PLAN

1.       Purpose

         The Viseon, Inc. Year 2003 Consultant Compensation Plan (the "Plan") is
intended to promote the interests of Viseon, Inc. and its subsidiaries
(collectively the "Corporation") by offering those outside consultants of the
Corporation who assist in the development and success of the business of the
Corporation, the opportunity to participate in a compensation plan designed to
reward them for their services and to encourage them to continue to provide
services to the Corporation.

2.       Definitions

         For all purposes of this Plan, the following terms shall have the
following meanings:

         "Common Stock" means Viseon, Inc. common stock, $.01 par value.

         "Condition Period" means that period of time during which Conditional
Share are subject to conditions imposed by the Committee (as defined herein) or
the conditions set forth in Section 6.2 or both.

         "Conditional Shares" means shares of Common Stock awarded under this
Plan subject to conditions imposed by the Committee (as defined herein) or the
conditions set forth in Section 6.2 or both.

         "Viseon" means Viseon, Inc., a Nevada corporation.

         "Subsidiary" means any company of which Viseon, Inc. owns, directly or
indirectly, the majority of the combined voting power of all classes of stock.

         "Unconditional Shares" means shares of Common Stock awarded under this
Plan subject to no conditions.

3.       Administration

         The Plan shall be administered by a committee (the "Committee") of not
less than two directors of Viseon selected by, and serving at the pleasure of,
Viseon's Board of Directors (the "Viseon Board").

         Viseon or any Subsidiary will recommend to the Committee persons to
whom shares may be awarded. The Committee shall make all final decisions with
respect to the persons to whom awards shall be granted ("Participants"), the
number of shares that shall be covered by each award or sale, the time or times
at which awards shall be granted or sales shall be made, the timing of when
awards shall vest, the terms and provisions of the instruments by which awards
or sales shall be evidenced, the interpretation of the Plan and all
determinations necessary or advisable for its administration. Notwithstanding
the preceding, the Committee shall have the power and authority to confer upon
the President and Chief Executive Officer of the Company the authority to grant
awards from time to time pursuant to this Plan on his or her own initiative
without the prior approval of the Committee, provided that the extent of such
authority shall be limited (with respect to any particular award) to an
aggregate number of shares having a maximum aggregate value of $50,000 and (with
respect to all awards) to an aggregate number of shares having a maximum
aggregate value of $500,000, in all cases based on the shares' closing price on
the day preceding the date or dates that the Company's transfer agent is
instructed to issue the shares to the related Participant or Participants.

4.       Eligibility

         Only individuals who are outside consultants, or directors, officers,
partners or employees of outside consultants, of Viseon or any Subsidiary shall
be granted awards.

5.       Stock Subject to the Plan

         The stock, which may be awarded or sold pursuant to this Plan, shall be
shares of Common Stock. When shares of Common Stock are awarded or sold, Viseon
may award or sell authorized but unissued Common Stock, or Viseon may award or
sell issued Common Stock held in its treasury. The total number of shares of
Common Stock which may be granted or sold under this Plan shall not exceed
5,000,000 shares in the aggregate. Any shares awarded and later forfeited are
again subject to award or sale under the Plan.

6.       Share Awards and Sales

         6.1      Grant of Share Awards

                  The Committee may award to Participants Unconditional Shares
and Conditional Shares. The Committee will determine for each Participant
selected to be awarded Unconditional Shares and Conditional Shares the time or
times when Unconditional Shares or Conditional Shares shall be awarded and the
number of shares of Common Stock to be covered by each Unconditional Shares or
Conditional Share award. Unless expressly specified as Conditional Shares by the
Committee, all shares of Common Stock awarded under this Plan shall be
Unconditional Shares. No Unconditional Shares or Conditional Shares shall be
awarded except for one of the types of consideration described in Section 78.211
of the Nevada General Corporation Law. The Committee shall cause stock
certificates representing Unconditional Shares and Conditional Shares to be
prepared, signed, sealed and deliver in accordance with all applicable corporate
laws. These share awards will be valued at the closing price of the day of the
grant.

         6.2      Conditions

                  Shares of Common Stock issued to a Participant as a
Conditional Shares award will be subject to the following conditions as well as
all other conditions imposed by the Committee ("Share Conditions"):

                  (a) Except as set forth in Paragraphs 6.4 and 6.5, if Share
         Conditions are not satisfied, Conditional Shares will be forfeited and
         returned to Viseon or, in the event such Conditional Shares were
         provided to the Participant from shares of Common Stock purchased by
         the Subsidiary, then the Conditional Shares will be returned to the
         Subsidiary. In either case, all rights of the Participant to such
         Conditional Shares will terminate without any payment of consideration
         by Viseon or the Subsidiary with which the Participant is associated,
         unless the Participant maintains his association with Viseon or a
         Subsidiary for the period of time (if any) determined by the Committee.

                  (b) During the Condition Period, none of the Conditional
         Shares subject to such award may be sold, assigned, bequeathed,
         transferred, pledged, hypothecated or otherwise disposed of in any way
         by the Participant.

                  (c) The Committee may require the Participant to enter into an
         escrow agreement providing that the certificates representing
         Conditional Shares sold or granted pursuant to the Plan will remain in
         the physical custody of Viseon or the applicable Subsidiary or an
         escrow holder during the Condition Period.

                  (d) Certificates representing Conditional Shares sold or
         granted pursuant to the Plan may bear a legend making an appropriate
         reference to the conditions imposed on the Conditional Shares.

                  (e) The Committee may impose other conditions on any
         Conditional Shares issued pursuant to the Plan as it may deem
         advisable, including without limitations, restrictions under the
         Securities Act of 1933, as amended, under the requirements of any stock
         exchange upon which such share or shares of the same class are then
         listed and under any state securities laws or other securities laws
         applicable to such shares.

         6.3      Rights of a Stockholder

                  Except as set forth in Paragraph 6.2(b), the recipient of a
Conditional Share award will have all of the rights of a stockholder of Viseon
with respect to the Conditional Shares, including the right to vote the
Conditional Shares and to receive all dividends or other distributions made with
respect to the Conditional Shares.

         6.4      Lapse of Conditions

                  In the event of the termination of association of a
Participant during the Condition Period by reason of death, disability, or
termination of association, the Committee may, at its discretion, remove Share
Conditions on Conditional Shares.

                  Conditional Shares to which the Share Conditions have not so
lapsed will be forfeited and returned to the Corporation as provided in
Paragraph 6.2(a).

         6.5      Lapse of Conditions at Discretion of the Committee

                  The Committee may shorten the Condition Period or remove any
or all Share Conditions if, in the exercise of its absolute discretion, it
determines that such action is in the best interests of the Corporation and
equitable to the Participant.

         6.6      Listing and Registration of Shares

                  Viseon may, in its reasonable discretion, postpone the
issuance and/or delivery of any shares of Common Stock awarded or sold pursuant
to this Plan until completion of stock exchange listing, or registration, or
other qualification of such shares under any law, rule or regulation.

         6.7      Designation of Beneficiary

                  A Participant may, with the consent of the Committee,
designate a person or persons to receive, in the event of death, any shares of
Common Stock to which such Participant would then be entitled pursuant to this
Plan. Such designation will be made upon forms supplied by and delivered to the
Committee and may be revoked in writing by the Participant. If a Participant
fails effectively to designate a beneficiary, then such Participant's estate
will be deemed to be the beneficiary.

7.       Capital Adjustments

         The number and consideration of Common Stock covered by each award
granted or each sale under this Plan and the total number of shares that may be
granted or sold under the Plan shall be proportionally adjusted to reflect,
subject to any required action by stockholders, any stock dividend or split,
recapitalization, merger, consolidation, spin-off, reorganization, combination
or exchange of shares or other similar corporate change.

8.       Change of Control

         Notwithstanding the provisions of Section 7, in the event of a change
of control, all Share Conditions on all Conditional Shares will lapse. For
purposes of this plan, a "Change of Control" of Viseon shall be deemed to have
occurred at such time as (a) any "person" (as that term is used in Section 13(d)
and 14(d) of the Securities Exchange Act of 1934), becomes the "beneficial
owner" (as defined in Rule 13d-3 under the foregoing act), directly or
indirectly, of securities of Viseon representing 30% or more of the combined
voting power of Viseon's outstanding securities ordinarily having the right to
vote at the election of directors; or (b) individuals who constitute the Viseon
Board on the date hereof (the "Incumbent Board") cease for any reasons to
constitute at least a majority thereof, provided that any person becoming a
director subsequent to the date hereof whose election was approved by at least a
majority of the directors comprising the Incumbent Board, or whose nomination or
election was approved by a majority of the Viseon Board serving under an
Incumbent Board, shall be, for purposes of this clause (b), considered as if he
or she were a member of the Incumbent Board; or (c) merger, consolidation or
sale of all or substantially all the assets of Viseon occurs, unless such merger
or consolidation shall have been affirmatively recommended to Viseon's
stockholders by a majority of the Incumbent Board; or (d) a proxy statement
soliciting proxies from stockholders of Viseon, by someone other than the
current management of Viseon seeking stockholder approval of a plan of
reorganization, merger or consolidation of Viseon with one or more corporations
as a result of which the outstanding shares of Viseon's securities are actually
exchanged for or converted into cash or property or securities not issued by
Viseon unless the reorganization, merger or consolidation shall have been
affirmatively recommended to Viseon's stockholders by a majority of the
Incumbent Board.

9.       Approvals

         The issuance of shares pursuant to this Plan is expressly conditioned
upon obtaining all necessary approvals from all regulatory agencies from which
approval is required.

10.      Effective Date of Plan

         The effective date of the Plan is January 10, 2003.

11.      Term and Amendment of Plan

         This Plan shall expire on January 9, 2013 (except to Conditional Shares
outstanding on that date). The Viseon Board may terminate or amend the Plan in
any respect at any time, except no action of the Viseon Board, the Committee or
Viseon's stockholders, however, may, without the consent of a Participant, alter
or impair such Participant's rights under any Conditional Shares previously
granted.

12.      No Right of Association

         Neither the action of Viseon in establishing this Plan, nor any action
taken by the Viseon Board, the Board of Directors of any Subsidiary or the
Committee, nor any provision of the Plan itself, shall be construed to limit in
any way the right of Viseon to terminate a Participant's association with the
Corporation at any time.

13.      Withholding Taxes

         Viseon or any Subsidiary, as applicable, shall have the right to deduct
withholding taxes from any payments made pursuant to the Plan or to make such
other provisions as it deems necessary or appropriate to satisfy its obligations
to withhold federal, state or local income or other taxes incurred by reason of
payment or the issuance of Common Stock under the Plan. Whenever under the Plan,
Common Stock is to be delivered upon vesting of Conditional Shares, the
Committee shall be entitled to require as a condition of delivery that the
Participant remit or provide for the withholding of an amount sufficient to
satisfy all federal, state and other government withholding tax requirements
related thereto.

14.      Plan not a Trust

         Nothing contained in the Plan and no action taken pursuant to the Plan
shall create or be construed to create a trust of any kind, or a fiduciary
relationship, between the Corporation and any Participant, the executor,
administrator or other personal representative, or designated beneficiary of
such Participant, or any other persons. If and to the extent that any
Participant or such Participant's executor, administrator or other personal
representative, as the case may be, acquires a right to receive any payment from
the Corporation pursuant to the Plan, such right shall be no greater than the
right of an unsecured general creditor of the Corporation.

15.      Notices

         Each Participant shall be responsible for furnishing the Committee with
the current and proper address for the mailing of notices and delivery of Common
Stock pursuant to the Plan. Any notices required or permitted to be given shall
be deemed given if addressed to the person to be notified at such address given
to the Committee by such person and mailed by regular United States mail,
first-class and prepaid. If any item mailed to such address is returned as
undeliverable to the addressee, mailing will be suspended until the Participant
furnishes the proper address. This provision shall not be construed as requiring
the mailing of any notice or notification if such notice is not required under
the terms of the Plan or any applicable law.

16.      Severability of Provisions

         If any provisions of this Plan shall be held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provisions
hereof, and this Plan shall be construed and enforced as if such provisions had
not been included.

17. Payment to Minors, etc.

         Any benefit payable to or for the benefit of a minor, an incompetent
person or other person incapable of receipting therefor shall be deemed paid
when paid to such person's guardian or the party providing or reasonably
appearing to provide for the care of such person, and such payment shall fully
discharge the Committee, the Viseon Board, the Corporation and other parties
with respect thereto.

18.      Headings and Captions

         The headings and captions herein are provided for reference and
convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan.

19.      Controlling Law

         This Plan shall be construed and enforced according to the laws of the
State of Texas to the extent not preempted by federal law, which shall otherwise
control.

20.      Enforcement of Rights

         In the event the Corporation or a Participant is required to bring any
action to enforce the terms of this Plan, the prevailing party shall be
reimbursed by the non-prevailing party for all costs and fees, including actual
attorney fees, for bringing and pursuing such action.

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