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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;10. COMMITMENTS AND CONTINGENCIES&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We have a supply agreement with Diosynth covering the commercial production of the recombinant
   antigen used in connection with PROVENGE. We currently have a commitment with Diosynth to purchase
   antigen through the second quarter of 2011 for a total of $78.7&amp;#160;million. As of June&amp;#160;30, 2010, we
   have paid a deposit of $29.6&amp;#160;million and expect to receive shipments of the order beginning in
   2010. We have a remaining obligation related to this commitment of approximately $49.1&amp;#160;million as
   of June&amp;#160;30, 2010. In May&amp;#160;2010, we placed an order with Diosynth for shipment of antigen to commence
   delivery in mid 2011. The commitment for this order is $39.2&amp;#160;million of which $9.3&amp;#160;million was
   prepaid to Diosynth in May&amp;#160;2010. On May&amp;#160;12, 2010, we entered into a Second Amendment to the supply
   agreement to extend the term of the agreement through December&amp;#160;31, 2018, and unless terminated, the
   agreement will renew automatically thereafter for additional 5-year terms. The agreement may be
   terminated upon written notice by us or Diosynth at least 24&amp;#160;months before the end of the initial
   term or a renewal term or by either party in the event of an uncured material breach or default by
   the other party.
   We have entered into a technology transfer agreement with a second source
   supplier for the antigen and are in discussions for a second source supply agreement.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In June&amp;#160;2009, we entered into a construction agreement with The Henderson Corporation of PA,
   Inc. (&amp;#8220;Henderson&amp;#8221;) to retain Henderson to perform construction related services and to arrange for,
   monitor, supervise, administer and contract for the construction of Phase II and Phase III of our
   New Jersey Facility. The guaranteed maximum price for the completion of all work under the
   construction agreement is approximately $51.1&amp;#160;million, of which $45.7&amp;#160;million has been paid through
   June&amp;#160;30, 2010.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In December&amp;#160;2009 and January&amp;#160;2010, we entered into construction agreements with Turner
   Construction Company (&amp;#8220;Turner&amp;#8221;) to retain Turner to perform construction related services and to
   arrange for, monitor, supervise, administer and contract for the construction of the build-out of
   the Atlanta Facility and Orange County Facility, for a maximum total cost of $87.7&amp;#160;million of which
   $56.6&amp;#160;million has been paid through June&amp;#160;30, 2010. The agreements include incentives for the
   completion of work prior to milestone dates and penalties for failing to meet such deadlines.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Beginning on May&amp;#160;24, 2007, four proposed securities class action suits were filed in the
   United States District Court for the Western District of Washington, on behalf of purchasers of the
   Company&amp;#8217;s common stock, purporting to state claims for securities law violations stemming from our
   disclosures related to PROVENGE and the FDA&amp;#8217;s actions regarding our BLA for PROVENGE. The
   complaints seek compensatory damages, attorney&amp;#8217;s fees and expenses. On October&amp;#160;4, 2007, the Court
   consolidated these actions under the caption &lt;i&gt;McGuire v. Dendreon Corporation, et al.&lt;/i&gt;, and
   designated a lead plaintiff. The lead plaintiff designated the complaint filed June&amp;#160;6, 2007 in
   &lt;i&gt;McGuire, et al. v. Dendreon Corporation, et al&lt;/i&gt;., as the operative complaint. Between December&amp;#160;2007
   and January&amp;#160;2009, Dendreon and the individual defendants filed motions to dismiss the original
   complaint, the amended complaint, and the second amended complaint. The Court granted these motions
   in part, and denied them in part, allowing plaintiffs leave to amend the complaint each time.
   Plaintiffs filed a third amended complaint on June&amp;#160;8, 2009. The third amended complaint includes
   claims against Dendreon, our chief executive officer, and a senior vice president, challenging
   disclosures related to the FDA&amp;#8217;s actions regarding our BLA for PROVENGE, and the sale of Dendreon
   stock by our chief executive officer. On June&amp;#160;29, 2009, defendants filed an answer to the third
   amended complaint. Discovery was completed on June 22, 2010 and defendants&amp;#8217; motion for partial summary judgment is currently pending.
   Trial in this action has been set for October&amp;#160;18, 2010.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On March&amp;#160;31, 2009, a complaint captioned &lt;i&gt;Mountanos v. Dendreon Corporation, et al.&lt;/i&gt;, was filed
   in the United States District Court for the Western District of Washington, naming Dendreon, our
   chief executive officer, and a senior vice president as defendants. The complaint in &lt;i&gt;Mountanos&lt;/i&gt;
   makes similar factual and legal allegations as the second amended complaint filed in the &lt;i&gt;McGuire&lt;/i&gt;
   action described above, but &lt;i&gt;Mountanos &lt;/i&gt;is not a class action and the named plaintiffs allegedly
   purchased options rather than the Company&amp;#8217;s common stock. It seeks compensatory damages, attorney&amp;#8217;s
   fees and expenses. On July&amp;#160;2, 2009, plaintiffs filed an amended complaint, which the defendants
   answered on August&amp;#160;3, 2009.
   Discovery was completed on June 22, 2010, and defendants&amp;#8217; motion for partial summary judgment is currently pending.
   Trial in this action has been
   set for October&amp;#160;18, 2010, to take place concurrently with the trial in &lt;i&gt;McGuire v. Dendreon
   Corporation&lt;/i&gt;.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Management currently believes that resolving these matters, individually or in aggregate, will
   not have a material adverse effect on our financial position, our results of operations, or our
   cash flows. However, these matters are subject to inherent uncertainties and the actual cost, as
   well as the distraction from the conduct of our business, will depend upon many unknown factors and
   management&amp;#8217;s
   view of these may change in the future. Thus, these matters could result in a material adverse
   effect on our business, financial condition and results of operations.
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