NORTHWEST BIOTHERAPEUTICS INC
EXHIBIT 10.1
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c70457exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT 10.1</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&nbsp;
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>NORTHWEST BIOTHERAPEUTICS, INC.<BR>
LOAN AGREEMENT and<BR>
10% CONVERTIBLE PROMISSORY NOTE</B>
</DIV>

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    <TD align="left" valign="top"><B>$100,000.00</B>
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    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>April&nbsp;27, 2007</B></TD>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 1. </B><U><B>GENERAL</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For value received, <B>Northwest Biotherapeutics, Inc.</B>, a Delaware corporation (the &#147;<B>Maker</B>&#148; or
the &#147;<B>Company</B>&#148;), hereby promises to pay to the order of Toucan Partners, LLC or its assigns
(collectively, the &#147;<B>Holder</B>&#148;), the principal amount of One Hundred Thousand Dollars ($100,000.00)
upon written demand by Holder at any time on or after June&nbsp;30, 2007 of this Loan Agreement and 10%
Convertible Promissory Note (this &#147;<B>Note</B>&#148; or this &#147;<B>Agreement</B>&#148;), or such earlier date as may be
applicable under Sections&nbsp;3 and 4 hereof (the &#147;<B>Maturity Date</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Maker shall pay interest on the unpaid principal amount of this Note, accruing from and after April
27, 2007 (the &#147;<B>Issue Date</B>&#148;) 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 &#147;<B>Interest
Rate</B>&#148;). 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. Capitalized terms used but not defined herein shall
have the meanings ascribed to them in the Recapitalization Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 2. </B><U><B>PRE-PAYMENT</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This Note may be pre-paid in whole or in part prior to the Maturity Date; provided Maker provides
Holder with 30&nbsp;days prior written notice thereof. In the event of prepayment, Maker shall pay a
penalty in the amount of 1% of the principal and accrued interest then outstanding under this Note,
unless a greater or lesser penalty is established or approved by the U.S. Small Business
Administration (&#147;<B>SBA</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 3. </B><U><B>DEFAULT INTEREST</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">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)&nbsp;fourteen
percent (14%) per annum, (ii)&nbsp;the maximum rate permitted under applicable rules and regulations of
the SBA, or (iii)&nbsp;the maximum rate allowed by law (the &#147;<B>Default Interest</B>&#148;). Such interest shall
accrue, commencing upon the occurrence of an Event of Default and continuing until such Event of
Default is cured or waived.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 4. </B><U><B>DEFAULTS</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.1 <U>Definitions</U>. Each occurrence of any of the following events shall constitute an &#147;<B>Event of Default</B>&#148;:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;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)&nbsp;business days after written notice thereof from Holder;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;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;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;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)&nbsp;business days after written notice thereof from Holder;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;if a default occurs in Maker&#146;s performance of any of the terms and conditions of that
certain Amended and Restated Recapitalization Agreement, dated as of July&nbsp;30, 2004 and as amended
on October&nbsp;22, 2004, November&nbsp;10, 2004, December&nbsp;27, 2004, January&nbsp;26, 2005, April&nbsp;12, 2005, May
13, 2005, June&nbsp;16, 2005, July&nbsp;26, 2005, September&nbsp;7, 2005 and November&nbsp;14, 2005 (the &#147;<B>Recapitalization Agreement</B>&#148;) or any Related Recapitalization Document;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;if Maker shall (i)&nbsp;discontinue its business, (ii)&nbsp;apply for or consent to the appointment
of a receiver, trustee, custodian or liquidator of Maker or any of its property, (iii)&nbsp;make a
general assignment for the benefit of creditors, or (iv)&nbsp;file a voluntary petition in bankruptcy,
or a petition or an answer seeking reorganization or an arrangement with creditors, or take
advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or
liquidation laws or statutes, or file an answer admitting the material allegations of a petition
filed against it in any proceeding under any such law;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(f)&nbsp;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 &#147;<B>Involuntary Petition</B>&#148;) and such Involuntary Petition shall not have
been dismissed within ninety (90)&nbsp;days after it was filed;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(g)&nbsp;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)&nbsp;days;
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(h)&nbsp;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 developed, owned,
controlled, licensed, possessed, or used by Maker, or to which Maker has any right, option,
entitlement or claim; or
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(i)&nbsp;if Maker deviates, during the period covered by such budget, more than $10,000 <U>in
aggregate</U> from the budget included in the Disclosure Schedule (as defined herein) or the budget
otherwise expressly approved by Holder, including any amendments expressly approved by Holder, 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 <U>in aggregate</U>, and which have not been approved in writing in
advance by Holder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.2 <U>Cross-Default</U>: 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.3 <U>Remedies on Default.</U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;Upon each and every such Event of Default and at any time thereafter during the
continuance of such Event of Default: (i)&nbsp;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)&nbsp;Holder may exercise all the rights of a creditor under applicable state and/or federal law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;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, <I>inter
alia</I>, 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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 5. </B><U><B>DEFENSES</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">5.1 <U>No Offsets</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">5.2 <U>Usury Limitations</U>. 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 rate of interest shall be reduced to the maximum rate of interest allowed under
the applicable usury laws as now or hereafter construed by the courts having jurisdiction thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 6. </B><U><B>REPLACEMENT OF NOTE</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&nbsp;6 shall be dated as of
the date of this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 7. </B><U><B>EXTENSION OF MATURITY</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 8. </B><U><B>ATTORNEYS&#146; FEES AND COLLECTION FEES</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&#146;
fees and expenses, incurred by Holder in collecting or enforcing this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 9. </B><U><B>WAIVERS; CONSENT TO JURISDICTION</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.1 <U>Waivers by Maker</U>. 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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.2 <U>Actions of Holder not a Waiver</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.3 <U>Consent to Jurisdiction</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.4 <U>Waiver of Jury Trial</U>. MAKER WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN MAKER AND HOLDER RELATING TO
THE SUBJECT MATTER OF THIS NOTE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF
ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
NOTE, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS
TO THIS AGREEMENT OR TO ANY OTHER DOCUMENT OR AGREEMENT RELATING TO THE LOAN.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.5 <U>Service of Process</U>. 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&nbsp;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&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 10. </B><U><B>COVENANTS</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.1 <U>Affirmative Covenants</U>. So long as this Note shall remain outstanding:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;<U>Office</U>. Maker shall maintain its principal office, and the majority of its
employees, assets and operations, in the United States.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;<U>Use of Proceeds</U>. Maker will use the proceeds from this Note only for the
following purposes:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(i)&nbsp;Operating expenses and other obligations of the Company incurred in the ordinary
course of business or in pursuing the Company&#146;s business plan and strategy;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(ii)&nbsp;Expenses relating to the development and protection of its intellectual property;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(iii)&nbsp;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
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(iv)&nbsp;Expenses of accountants, attorneys, consultants and other professionals (including,
without limitation, the expenses of Investor described in Section&nbsp;4.11 of the
Recapitalization Agreement) relating to the recapitalization of Maker,
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">in each case only to the extent that both the nature and the amount of such expenses are in
conformity with the budget (and any amendments thereof) approved in advance in writing by Holder.
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)&nbsp;to purchase or carry (or refinance any borrowing, the proceeds of which were used
to purchase or carry) any &#147;security&#148; within the meaning of the Securities Act of 1933, as amended
(the &#147;<B>Securities Act</B>&#148;), (ii)&nbsp;to repay any indebtedness or discharge any obligation to an person or
entity, other than as provided in Section&nbsp;10.1(b)(i)-(iv) above, , or (iii)&nbsp;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, other than as provided in Section&nbsp;10.1(b)(i)-(iv) above:
(i)&nbsp;directly or indirectly, for providing funds to others; (ii)&nbsp;for the purchase or discounting of
debt obligations; (iii)&nbsp;for factoring or long-term leasing of equipment with no provision for
maintenance or repair; (iv)&nbsp;for engaging in real estate transactions such that Maker could
reasonably be classified under Major Group 65 (Real Estate) of the SIC Manual; (v)&nbsp;for business
activities wherein the assets of the business of Maker (the &#147;<B>Business</B>&#148;) 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)&nbsp;for a foreign operation; (vii)
to provide capital to a corporation licensed or sub-licensed under the Small Business Investment
Act, (viii)&nbsp;to acquire farm land, (ix)&nbsp;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)&nbsp;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&nbsp;107.720 of Title 13 of the Code of Federal
Regulations.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;<U>Seniority</U>. Except as otherwise expressly provided, and except for security
interests and liens described in items 2, 3, 4 and 5 of Schedule&nbsp;14.11 of the Disclosure Schedule
attached hereto as Exhibit&nbsp;B (the &#147;<B>Disclosure Schedule</B>&#148;), the indebtedness evidenced by this Note:
(i)&nbsp;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)&nbsp;shall be pari passu with any other indebtedness or obligations of Maker to Holder;
and (iii)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;<U>No Conflicting Agreements</U>. Maker shall not enter into any agreement that would
materially impair, interfere or conflict with Maker&#146;s obligations hereunder. Without Holder&#146;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;<U>Disclosure of Material Adverse Events</U>. Within three (3)&nbsp;business days of Maker
obtaining knowledge thereof, Maker will notify Holder in writing of any event that may have a
material adverse effect on the business, affairs, prospects, operations, properties, assets,
liabilities, structure or condition, financial or otherwise, of the Company (as such business is
presently conducted and/or as it is proposed to be conducted), or on any material assets or any
Intellectual Property or other assets 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 budgets (and any amendments thereto)
approved in writing in advance by Holder shall not be deemed to be material adverse events solely
because they weaken Maker&#146;s financial condition in the absence of new equity financing of Maker.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(f)&nbsp;<U>Financial Information</U>. So long as any principal and/or interest under this Note
shall remain outstanding:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 8%">(i)&nbsp;Promptly after the end of each fiscal year (but in any event prior to February&nbsp;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&#146;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&#146;s business in terms of revenues and profits and on taxes paid by Maker and its
employees.
</DIV>
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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 8%">(ii)&nbsp;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&#146;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.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 8%">(iii)&nbsp;In addition to the information specified in Section&nbsp;10.1(f)(i) and (ii)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(g)&nbsp;<U>Access</U>. 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&#146;s properties, to examine its books of account and records and to discuss Maker&#146;s affairs,
finances and accounts with its officers, all at such times during normal business hours as
reasonably may be requested by Holder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(h)&nbsp;&#091;Reserved&#093;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(i)&nbsp;<U>Business Activity</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.2 <U>Negative Covenants</U>. So long as this Note shall remain outstanding:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;<U>Indebtedness</U>. 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, other than indebtedness incurred in the ordinary course of business in accordance with a
budget (and any amendments thereto) approved in writing by Holder, or in pursuing the Company&#146;s
business plan and strategy approved in writing by Holder. In no event shall Maker issue, or make
any promises, commitments, undertakings, agreements or letters of intent to issue, any indebtedness
directly or indirectly exercisable for or convertible into any equity of Maker, except as expressly
provided in Section&nbsp;10.2(d) hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;<U>Liens</U>. 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&nbsp;A hereto (the &#147;<B>Intellectual Property</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;<U>Sale or License of Assets</U>. 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, other than with the prior written approval of Holder and in the ordinary
course of business.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;<U>Issuance of Capital Stock</U>. Notwithstanding any other provision of this Note or
any applicable agreement or document, except for (a)&nbsp;any transaction pursuant to an
Unsolicited Proposal that Maker accepts in accordance with the fiduciary exception provided in
Section&nbsp;3.2 of the Recapitalization Agreement or (b)&nbsp;shares of Capital Stock issuable upon exercise
or conversion of warrants or convertible securities outstanding prior to February&nbsp;1, 2004, Maker
shall not without Holder&#146;s prior written approval: (i)&nbsp;issue any shares of Capital Stock (as
defined in Section&nbsp;12.1 hereof) or other securities, or any instruments exercisable for or
convertible into Capital Stock or other securities, or (ii)&nbsp;make any promises, commitments,
undertakings, agreements or letters of intent for any of the issuances described in (i)&nbsp;hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;<U>Distributions and Redemptions</U>. 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&nbsp;1, 2004), redeem, purchase, or otherwise acquire for any
consideration any shares of its common stock or any other class of its stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(f)&nbsp;<U>Hiring</U>. Maker shall not hire, engage, retain, or agree to hire, engage or retain,
any Personnel, except with Holder&#146;s express prior written approval, on a case by case basis.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(g)&nbsp;<U>Severance</U>. 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&#146;s prior written
approval, on a case by case basis.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(h)&nbsp;<U>Facilities</U>. Maker shall not purchase, lease, hire, rent or otherwise acquire
directly or indirectly any rights in or to any asset or facility outside of the ordinary course of
business in an amount in excess of $10,000, in aggregate, or agree, promise or commit to do so,
except in accordance with the Maker&#146;s budget that has been approved by the Maker&#146;s board of
directors and the Holder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(i)&nbsp;<U>Expenses</U>. Maker shall make no expenditures in excess of $10,000 in aggregate
other than in accordance with a budget (including any amendments thereto) pre-approved by Holder.
Maker shall not deviate, during the period covered by such budget, more than $10,000 <U>in
aggregate</U> from the budget approved by Holder, 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 <U>in
aggregate</U>, and which have not been approved in writing in advance by Holder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(j)&nbsp;<U>Other Limitations</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(i)&nbsp;Maker shall not change the nature of its business activity in a manner that would cause a
violation of 13 C.F.R. Section&nbsp;107.720 and/or Section&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(ii)&nbsp;Maker will at all times comply with the non-discrimination requirements of 13 C.F.R.
Parts 112, 113 and 117.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(iii)&nbsp;For a period of at least one year after the date of this Note, Maker will locate no more
than 49&nbsp;percent of the employees or tangible assets of Maker outside the United States.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.3 <U>Additional Covenant</U>. Until 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&#146;s
Tangential Flow Filtration (&#147;TFF&#148;) 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&#146;s TFF devices or any similar device, without the prior written
consent of Holder in each case.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 11. </B><U><B>GOOD FAITH INTERPRETATION OF PROVISIONS OF THIS AGREEMENT.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">11.1 <U>Good Faith Obligation.</U> The parties hereto agree that, to the extent that there
is ambiguity regarding the intention of any provisions hereof, they will at all terms act in good
faith to interpret the relevant provisions hereof. This Section is not in any way intended to
limit the parties&#146; respective rights to remedies in the case of breach of any provision hereof by
the other.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 12. </B><U><B>CONVERSION; WARRANTS; NO IMPAIRMENT</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><U>12.1 Holder&#146;s Election.</U> Notwithstanding any other provision of this Note or any
applicable agreement or document, from time to time and at any time on or before the later of the
maturity date of this Note or the full repayment of this Note, Holder may, in its sole discretion,
elect to (a)&nbsp;convert any or all of the principal and/or interest due under this Note into any class
or series of equity security of Maker (collectively, &#147;Capital Stock&#148;) that has been authorized
under Maker&#146;s certificate of incorporation, as amended, including by any certificate of designation
(the &#147;Charter&#148;), and that Holder shall designate (the securities so elected being the &#147;Holder
Designated Securities&#148;), and/or (b)&nbsp;receive repayment, in whole or in part, of this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><U>12.2 Conversion.</U> The principal and accrued interest on this Note shall be
convertible on terms mutually agreed by Maker and Holder on or before the date of conversion. The
conversion terms shall be determined on the basis of market-based terms for the type and amount of
financing provided by Holder, and the extent of risk undertaken by Holder. In the event that Maker
obtains convertible debt financing, on terms acceptable to Holder, in its sole discretion, from one
or more investors that are not affiliates (as defined in Rule&nbsp;405 under the Securities Act of 1933,
as amended) of Holder or the Company, in an aggregate principal amount of at least
$150,000 on or prior to May&nbsp;15, 2007, the conversion terms for this Note may be conformed to
the terms of such convertible financing. If no such financing acceptable to Holder, in its sole
discretion, is obtained by Maker on or before May&nbsp;15, 2007, the conversion terms shall be as
mutually agreed by Holder and Company.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><U>12.3 Warrant</U>. Notwithstanding any other provision of this Note or any applicable
agreement or document, Maker shall issue to Holder a warrant in the form attached hereto as Exhibit
C (the &#147;Warrant&#148;) for the purchase of shares of Capital Stock of the Company. The warrant coverage
shall be equal to one hundred percent (100%) of the principal and accrued interest on this Note.
The Warrant shall be issued by Maker upon execution of this Note. The number of warrant shares
shall be equal to the number of shares of Capital Stock that would be issuable to Holder, as
determined in accordance with Section&nbsp;12.2, if Holder elected to convert the full principal and
accrued interest of this Note. For the avoidance of doubt, the 100% warrant coverage will be
effective regardless of whether or not Holder elects to convert any or all of the principal and/or
interest of this Note. The Warrant will be fully vested and exercisable upon issuance, and will
have an exercise period of seven (7)&nbsp;years from its date of issuance. The exercise price of the
Warrant shall be equal to the conversion price that would apply under Section&nbsp;12.2 of this Note if
Holder elected to convert any principal and/or accrued interest under this Note into Capital Stock
of the Maker, regardless of whether Holder does elect to make any such conversion.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><U>12.4 Cooperation; Good Faith; No Impairment</U>. 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&#146;s rights, preferences and privileges under and/or
in connection with the Note against impairment. Holder&#146;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&#146;s prior written consent, and the documentation providing for
such rights, preferences and privileges will specifically provide as such.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 13. </B><U><B>RESERVED</B></U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 14. </B><U><B>REPRESENTATIONS AND WARRANTIES</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Except as expressly set forth (with reference to a section in this Note) in the Disclosure
Schedules attached hereto as Exhibit&nbsp;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:
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.1 <U>Organization, Good Standing and Qualification</U>. 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).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.2 <U>Authorization of Note, Etc</U>. 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&#146; rights or
general principles of equity.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.3 <U>No Conflicts</U>. 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)&nbsp;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)&nbsp;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 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, &#147;encumbrance&#148; shall mean any liens, charges, encumbrances, equities,
claims, options, proxies, pledges, security interests, licenses or other similar rights of any
nature.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.4 <U>Compliance with Other Instruments</U>. Maker is not in violation of any term of
Maker&#146;s Charter, as amended, including any certificate of designation filed therewith, and/or
Maker&#146;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 its assets, including without limitation its Intellectual Property, is
subject. To the best of Maker&#146;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 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&#146;s loss of any right granted under any license,
distribution agreement or other agreement or Maker&#146;s loss of any rights in or to any of its assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.5 <U>Approvals</U>. 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&nbsp;14.5.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.6 <U>Capitalization</U>. The authorized capital stock of Maker consists of 800,000,000
shares of Common Stock, par value $0.001 per share and 300,000,000 shares of Preferred Stock, par
value of $0.001 per share. The number of shares of Common Stock, Series&nbsp;A convertible preferred
stock and Series&nbsp;A-1 convertible preferred stock issued and outstanding on the Effective Date of
this Note are set forth in Schedule&nbsp;14.6. No other shares of any class or series of Maker&#146;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. The subscriptions, warrants, options, convertible
securities, and other rights (direct or indirect, contingent or otherwise) to purchase or otherwise
acquire any equity securities of Maker which are authorized or issued and outstanding are set forth
in Schedule&nbsp;14.6. Except as set forth in Schedule&nbsp;14.6, 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&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.7 <U>Authorization of the Shares</U>. 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&#146;s right of first refusal set forth in Section&nbsp;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&#146;s Charter.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.8 <U>Litigation</U>. Except as set forth in Schedule&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.9 <U>No Liens</U>. Except for liens for the benefit of Holder pursuant to previous notes
issued to Holder 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 are subject to any existing
lien, pledge, security interest or other encumbrance of any kind, direct or indirect, contingent or
otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.10 <U>Full Disclosure</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.11 <U>No Other Security Interests or Other Encumbrances</U>. Except as set forth in
Schedule&nbsp;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 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).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.12 <U>&#147;Small Business&#148;</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;<U>Small Business Status</U>. Maker together with its &#147;affiliates&#148; (as that term is
defined in Section&nbsp;121.103 of Title 13 of Code of Federal Regulations (the &#147;<B>Federal Regulations</B>&#148;))
is a &#147;small business concern&#148; within the meaning of the Small Business Investment Act of 1958, as
amended (the &#147;<B>Small Business Act</B>&#148; or &#147;<B>SBIA</B>&#148;), and the regulations promulgated thereunder, including
Section&nbsp;121.301(c) of Title 13, Code of Federal Regulations.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;<U>Information for SBA Reports</U>. 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&nbsp;A and B of Form&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;<U>Eligibility</U>. 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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.13 <U>Intellectual Property. </U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;<U>Definitions</U>. &#147;Intellectual Property&#148; means all foreign and domestic intangible
property and rights, owned, licensed, sub-licensed or otherwise obtained by Maker, including,
without limitation, (i)&nbsp;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, &#147;<B>Patents</B>&#148;); (ii)&nbsp;confidential and
proprietary information, trade secrets and know-how, including without limitation processes,
schematics, formulae, drawings, prototypes, models, designs and customer lists (collectively, &#147;<B>Trade Secrets</B>&#148;); (iii)
all data, slides, observations, and laboratory results, produced by, for or
on behalf of Maker, or which Maker has rights to obtain (collectively, &#147;<B>Data</B>&#148;); (iv)&nbsp;all FDA
applications, registrations, filings and other rights (collectively, &#147;<B>FDA Rights</B>&#148;) and all data and
documentation supporting or relating thereto; (iv)&nbsp;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, &#147;<B>Copyrights</B>&#148;); (v)
trademarks, service marks, brand names, certification marks, collective marks, d/b/a&#146;s, Internet
domain names, logos, symbols, data, trade dress, assumed names, 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, &#147;<B>Trademarks</B>&#148;); (vi)&nbsp;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, &#147;<B>Other Proprietary Rights</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Intellectual Property Contracts</B>&#148; 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Licensed </B>or <B>Sub-Licensed Intellectual Property</B>&#148; means the Intellectual Property that Maker
is licensed, sub-licensed or otherwise permitted by other persons or entities to use.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Owned Intellectual Property</B>&#148; means the Intellectual Property owned by Maker.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Registered</B>&#148; means issued, registered, renewed or the subject of a pending application.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;Schedule&nbsp;14.13 (&#147;<B>Intellectual Property</B>&#148;) sets forth a true and complete list and summary
description of (A)&nbsp;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)&nbsp;all
Licensed or Sub Licensed Intellectual Property and (C)&nbsp;all Intellectual Property Contracts.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;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&#146;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&#146;s rights thereto.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(d)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(e)&nbsp;No suit, action, reissue, reexamination, public protest, interference, opposition,
cancellation or other proceeding (collectively, &#147;Suit&#148;) is pending or threatened concerning any
claim or position:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(i)&nbsp;that Maker, or another person or entity, has violated any Intellectual Property rights.
To Maker&#146;s best knowledge, Maker is not violating and has not violated any intellectual property
rights of any other party.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(ii)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 12%">(iii)&nbsp;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&#146;s best knowledge, no valid basis for any such Suits
or claims exists.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(f)&nbsp;To Maker&#146;s best knowledge, no other person or entity is violating, infringing upon or
claiming rights incompatible with Maker&#146;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(g)&nbsp;Except as set forth on Schedule&nbsp;14.13(j), Maker owns or otherwise holds valid rights to
use all Intellectual Property used in its business.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(h)&nbsp;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&nbsp;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)&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(i)&nbsp;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)&nbsp;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)&nbsp;prospective customers, and in each case who executed appropriate
confidentiality agreements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(j)&nbsp;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&#146;s employment by
Maker, such employee&#146;s performance of Maker&#146;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&#146;s
employment by Maker.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.14 <U>SEC Filings; Financial Statements</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;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&nbsp;1, 2003, and all amendments thereto (the &#147;<B>Maker SEC Documents</B>&#148;).
Except as set forth on Schedule&nbsp;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)&nbsp;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)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The financial statements (including any related notes) contained in the Maker SEC
Documents: (i)&nbsp;complied as to form in all material respects with the published rules and
regulations of the SEC applicable thereto; (ii)&nbsp;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)&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.15 <U>Liabilities</U>. As of April&nbsp;27, 2007, Maker has the following accrued liabilities: (i)
amounts payable to Cognate Therapeutics and Investor, (ii)&nbsp;Maker&#146;s aggregate accrued, contingent
and/or other liabilities of any nature, either mature or immature, as of the date hereof,
not in excess of $1,400,000 (excluding amounts payable to Cognate and Investor), of which (a)
approximately $386,000 for attorney fees, (b) $1,500 are the aggregate balances of capital leases
payable in monthly installments, the last of which is to be paid in May&nbsp;2007, (c) $353,000
represents estimated liabilities for payables to European consultants, (d) $311,000 represents
estimated liabilities for payables related to clinical trials, (e) $212,000 represents estimated
other accounts payable and accruals for SEC filings and other, (e) $36,000 are accrued payroll and
(f) $100,000 are accrued vacation and sick pay.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECTION 15. </B><U><B>INDEMNIFICATION</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">15.1 <U>Indemnification Agreement</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(a)&nbsp;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 &#147;<B>Indemnified Persons</B>&#148;) 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&#146; fees and expenses, and all amounts
paid in investigation, defense or settlement of any of the foregoing (collectively, &#147;<B>Losses</B>&#148;) 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:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 8%">(i)&nbsp;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
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 8%">(ii)&nbsp;any material nonfulfillment or material breach of any covenant or agreement on the
part of Maker under this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(c)&nbsp;Within twenty (20)&nbsp;days after receipt of notice of commencement of any action or the
assertion of any claim by a third party, Holder shall give Maker written notice thereof together
with a copy of such claim, process or other legal pleading of such claim. Maker shall have the
right to assist in the defense thereof by representation of its own choosing.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">15.2 <U>Survival</U>. All indemnification rights hereunder shall survive the execution and
delivery of this Note and the consummation of the transactions contemplated hereby (i)&nbsp;for a period
of two years with respect to representations and warranties made by Maker, and (ii)&nbsp;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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">15.3 <U>Payment</U>. Any indemnification of Holder or any other Indemnified Person by Maker
pursuant to this Section&nbsp;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)&nbsp;days
after the determination thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>SECTION 16. INTEGRATION WITH RECAPITALIZATION PLAN</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>SECTION 17. MISCELLANEOUS</B></U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.1 <U>Notices</U>. 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)&nbsp;personally delivered, (ii)&nbsp;sent by confirmed facsimile with a copy sent by
nationally recognized overnight courier, (iii)&nbsp;sent by nationally recognized overnight courier, or
(iv)&nbsp;sent by registered or certified mail, return receipt requested and postage prepaid, addressed
as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>if to Maker:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Northwest Biotherapeutics, Inc.<BR>
18701 120<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue, NE, Suite&nbsp;101<BR>
Bothell, WA 98011<BR>
Fax: (425)&nbsp;608 3009<BR>
Attn: Alton Boynton</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>if to Holder:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Toucan Partners, LLC<BR>
7600 Wisconsin Avenue<BR>
Suite&nbsp;700<BR>
Bethesda, MD 20814<BR>
Fax: (240)&nbsp;497-4065<BR>
Attention: Linda F. Powers</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.2 <U>Parties In Interest</U>. 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.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.3 <U>Entire Agreement</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.4 <U>Governing Law</U>. 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).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.5 <U>Headings</U>. 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.6 <U>Amendments</U>. 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&#146;s.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.7 <U>Nature of Obligation</U>. This Note is being made for business and investment
purposes, and not for household or other purposes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.8 <U>Expenses</U>. 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, development and execution of this Note, up to a
maximum of $25,000.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>IN WITNESS WHEREOF</B>, Maker has caused this Note to be duly executed by its duly authorized
person(s) as of the date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>NORTHWEST BIOTHERAPEUTICS, INC.</B> <BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Alton Boynton&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>Consent and Agreement</B></U>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Toucan Partners, LLC consents to the loan provided to Maker in the foregoing Note.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>TOUCAN PARTNERS, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Linda Powers&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>INTELLECTUAL PROPERTY</B></U>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The &#147;<U>Intellectual Property</U>&#148; consists of all intellectual property of any kind, whether
owned, licensed or otherwise permitted to be used, and whether now held or hereafter acquired or
developed by the Maker. 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)&nbsp;trademarks, service marks, brand names, certification marks,
collective marks, d/b/a&#146;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&nbsp;1 hereto (collectively, &#147;<U>Trademarks</U>&#148;); (ii)&nbsp;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&nbsp;2 hereto (collectively, &#147;<U>Patents</U>&#148;); (iii)&nbsp;confidential and
proprietary information, trade secrets and know-how, including, without limitation, processes,
schematics, formulae, drawings, prototypes, models, designs and customer lists (collectively,
&#147;<U>Trade Secrets</U>&#148;); (iv)&nbsp;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, &#147;<U>Copyrights</U>&#148;); (v)&nbsp;all FDA applications,
registrations, filings and other rights (collectively, &#147;<U>FDA Rights and Materials</U>&#148;); (vi)
all results, information and data arising from, or obtained in connection with, research,
development, pre-clinical work and/or clinical trials (collectively, &#147;<U>Data</U>&#148;); and (vii)&nbsp;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, &#147;<U>Other
Proprietary Rights</U>&#148;).
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Appendix&nbsp;1<BR>
Trademarks</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Appendix&nbsp;2<BR>
Patents</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>EXHIBIT B</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>DISCLOSURE SCHEDULES</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DISCLOSURE SCHEDULE TO NORTHWEST BIOTHERAPEUTICS, INC. LOAN<BR>
AGREEMENT and 10% CONVERTIBLE PROMISSORY NOTE DATED APRIL 27, 2007
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Disclosure Schedule is made and given pursuant to Section&nbsp;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. (&#147;TOUCAN&#148;) on April&nbsp;26, 2004, June&nbsp;11, 2004, July&nbsp;30, 2004, October&nbsp;22, 2004,
November&nbsp;10, 2004, December&nbsp;27, 2004, April&nbsp;12, 2005, May&nbsp;13, 2005, June&nbsp;16, 2005, July&nbsp;26, 2005
and September&nbsp;7, 2005, respectively, and made in notes issued to Toucan Partners, LLC (&#147;TOUCAN
PARTNERS&#148;) on November&nbsp;14, 2005, as amended, December&nbsp;30, 2005, as amended and March&nbsp;9, 2006, as
amended, 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&#146;s interests.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.5<BR>
CONSENTS
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">None
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.6<BR>
CAPITALIZATION, FULLY DILUTED(1)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Common Stock as of 4/27/07 (per Mellon
Investors Services)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>65,241,287</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Stock Options Outstanding as of 4/27/07</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>773,510</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Warrants</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>21,374,881</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Total fully diluted shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>87,389,678</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Table excludes securities issued or issuable to Toucan.</B></DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">





<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.8<BR>
LITIGATION
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On February&nbsp;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&nbsp;30, 2005,The Supreme Court of the State of New York dismissed
Soma&#146;s petition, denying Soma&#146;s August&nbsp;29, 2005 motion to vacate the May&nbsp;24, 2005 award in the
Company&#146;s favor. The Company will continue to vigorously oppose such claims.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Two former members of the Company&#146;s management, who participated as lenders in the Company&#146;s
management loans have claimed that they are entitled to receive, for no additional cash
consideration, an aggregate of up to approximately 9.5&nbsp;million additional shares of our common
stock due to the alleged triggering of an anti-dilution provision in the warrant agreements. The
Company does not believe that these claims have merit, and intends to vigorously oppose such
claims.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.9<BR>
NO LIENS
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;The Equipment Lessors listed below have security interests in equipment subject to their
respective leases (amounts due are as of April&nbsp;27, 2007).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="27%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">CAPITAL LEASES:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">TOTAL AMOUNT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">CAPITAL LEASES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">AMOUNT DUE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IOS Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Canon IR5000N<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Total<BR></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;Pursuant to RCW 60.72.010, Maker&#146;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&#146; 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. This
lease is terminated, but Maker is seeking a final release letter.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">3.&nbsp;A $400,000 Loan Agreement, Security Agreement and 10% Convertible, Secured Promissory Notes
dated November&nbsp;14, 2005, a $250,000 Loan Agreement, Security Agreement and 10% Convertible, Secured
Promissory Notes dated December&nbsp;30, 2005, as amended and a $300,000 Loan Agreement, Security
Agreement and 10% Convertible, Secured Promissory Notes dated March&nbsp;9, 2006, as amended,
respectively; plus accrued interest thereon, and secured by a security interest in Maker&#146;s assets
issued to Toucan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.&nbsp;A License Agreement dated July&nbsp;1, 2003 with Dako Cytomation for worldwide research and
diagnostic immunohistochemical (IHC)&nbsp;market. Hybridoma Cell Line, Monoclonal Antibody (MAb) to
Prostate Specific Membrane Antigen (PSMA), Clone IG3.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.11<BR>
NO OTHER SECURITY INTERESTS OR ENCUMBRANCES
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;(a)&nbsp;The Equipment Lessors listed below have security interests in equipment subject to their
respective leases (amounts due are as of April&nbsp;27, 2007).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="27%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">CAPITAL LEASES:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">TOTAL AMOUNT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">CAPITAL LEASES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000">AMOUNT DUE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IOS Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Canon IR5000N</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Total</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">(b)&nbsp;A License Agreement dated July&nbsp;1, 2003 with Dako Cytomation for worldwide
research and diagnostic immunohistochemical (IHC)&nbsp;market. Hybridoma Cell Line, Monoclonal Antibody
(MAb) to Prostate Specific Membrane Antigen (PSMA), Clone IG3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;Pursuant to RCW 60.72.010, Maker&#146;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&#146; 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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">3.&nbsp;This lease is terminated, but Maker is seeking a final release letter.
</DIV>



<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">All the holders of the 10% Convertible Secured Notes are parties to a Subordination Agreement
with Toucan executed concurrent with the Recapitalization Agreement.</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">





<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.14(A)<BR>
SEC FILINGS
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;Maker did not file on a timely basis its annual report on Form 10-K with the SEC for its fiscal
years ended December&nbsp;31, 2003 and 2005.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE 14.15<BR>
LIABILITIES
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As of April&nbsp;27, 2007, Maker has the following accrued liabilities: (i)&nbsp;amounts payable to Cognate
Therapeutics and Investor, (ii)&nbsp;Maker&#146;s aggregate accrued, contingent and/or other liabilities of
any nature, either mature or immature, as of the date hereof, not in excess of $1,400,000
(excluding amounts payable to Cognate and Investor), of which (a)&nbsp;approximately $386,000 for
attorney fees, (b) $1,500 are the aggregate balances of capital leases payable in monthly
installments, the last of which is to be paid in May&nbsp;2007, (c) $353,000 represents estimated
liabilities for payables to European consultants, (d) $311,000 represents estimated liabilities for
payables related to clinical trials, (e) $212,000 represents estimated other accounts payable and
accruals for SEC filings and other, (e) $36,000 are accrued payroll and (f) $100,000 are accrued
vacation and sick pay.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.5in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>EXHIBIT C</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Form of Warrant</B>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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