Document:

EX-4.L

 

Exhibit 4(l)

ISDA®

International Swaps and Derivatives Association, Inc.

NOVATION AGREEMENT

dated as of June 16, 2005 among:

GENERAL ELECTRIC CAPITAL SERVICES, INC. (the “Remaining Party”),

CEF EQUIPMENT HOLDING, L.L.C. (the “Transferor”)

and

GE COMMERCIAL EQUIPMENT FINANCING LLC, SERIES 2005-1 (the “Transferee”).

The Transferor and the Remaining Party have entered into Transactions (the “Old Transactions”),
evidenced by the Confirmations (the “Old Confirmations”) subject to an ISDA Master Agreement dated
as of June 16, 2005, between the Remaining Party and the Transferor (including the Schedule and
any Credit Support Documents, the “Old Agreement”) each attached hereto as Exhibit A.

With effect from and including June 16, 2005 (the “Novation Date”) the Transferor wishes to
transfer by novation to the Transferee, and the Transferee wishes to accept the transfer by
novation of, all the rights, liabilities, duties and obligations of the Transferor (i) under and in
respect of the Old Transactions, with the effect that the Remaining Party and the Transferee enter
into a new transaction (the “New Transactions”) between them having terms identical to those of the
Old Transactions and (ii) under and in respect of the Old Agreement, with the effect that the
Remaining Party and the Transferee enter into a new ISDA Master Agreement, dated as of June 16,
2005 (the “New Agreement”) between them having terms identical to those of the Old Agreement,
except as otherwise agreed between Remaining Party and Transferee.

The Remaining Party accepts the Transferee as its sole counterparty with respect to the New
Transactions and the New Agreement.

The Transferor and the Remaining Party wish to have released and discharged, as a result and to the
extent of the transfer described above, their respective obligations under and in respect of the
Old Transaction and the Old Agreement.

Accordingly, the parties agree as follows: —

	1.	 	Definitions.

Terms defined in the ISDA Master Agreement (Multicurrency-Cross Border) as published in 2002 by the
International Swaps and Derivatives Association, Inc., (the “2002 ISDA Master Agreement”) are used
herein as so defined, unless otherwise provided herein.

	2.	 	Transfer, Release, Discharge and Undertakings.

With effect from and including the Novation Date and in consideration of the mutual
representations, warranties and covenants contained in this Novation Agreement and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the
parties):

	 	(a)	 	the Remaining Party and the Transferor are each released and discharged from further
obligations to each other with respect to the Old Agreement and each of the Old
Transactions being assigned to the Transferee, and their respective rights against each
other with respect to the Old Agreement and each Old Transactions are cancelled, provided
that such release and discharge shall not affect any rights, liabilities or obligations of
the Remaining Party or the Transferor with respect to payments or other obligations due and
payable or due to be performed on or prior to the Novation Date, and all such payments and
obligations shall be paid or performed by the Remaining Party or the Transferor in
accordance with the terms of the Old Agreement and each Old Transaction; and

 

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	 	(b)	 	in respect of the New Agreement and each New Transaction, the Remaining Party and the
Transferee each undertake liabilities and obligations towards the other and acquire rights
against each other identical in their terms to the Old Agreement and each Old Transaction
(and, for the avoidance of doubt, as if the Transferee were the Transferor and with the
Remaining Party remaining the Remaining Party, save for any rights, liabilities or
obligations of the Remaining Party or the Transferor with respect to payments or other
obligations due and payable or due to be performed on or prior to the Novation Date).
	 
	 	(c)	 	for the avoidance of doubt, any Credit Support Document with respect to the Old
Agreement is hereby assigned to the Transferee, and the Remaining Party and the Transferor
are each released and discharged from further obligations to each other with respect to any
such Credit Support Document being assigned to the Transferee, and their respective rights
against each other with respect to Credit Support Document are cancelled, provided that
such release and discharge shall not affect any rights, liabilities or obligations of the
Remaining Party, its Credit Support Provider or the Transferor with respect to payments or
other obligations due and payable or due to be performed on or prior to the Novation Date,
and all such payments and obligations shall be paid or performed by the Remaining Party or
its Credit Support Provider accordance with the terms of the Old Agreement (including such
Credit Support Document).

	3.	 	Representations and Warranties.

	 	(a)	 	On the date of this Novation Agreement and on each Novation Date:

	 	(i)	 	Each of the parties makes to each of the other parties those
representations and warranties set forth in Section 3(a) of the 2002 ISDA Master
Agreement with references in such Section to “this Agreement” or “any Credit
Support Document” being deemed references to this Novation Agreement alone.
	 
	 	(ii)	 	The Remaining Party and the Transferor each makes to the other, and the
Remaining Party and the Transferee each makes to the other, the representation set
forth in Section 3(b) of the 2002 ISDA Master Agreement, in each case with respect
to the Old Agreement or the New Agreement, as the case may be, and taking into
account the parties entering into and performing their obligations under this
Novation Agreement.
	 
	 	(iii)	 	Each of the Transferor and the Remaining Party represents and warrants
to each other and to the Transferee that:

	 	(A)	 	it has made no prior transfer (whether by way of
security or otherwise) of the Old Agreement or any interest or obligation
in or under the Old Agreement or in respect of the Old Transactions; and
	 
	 	(B)	 	as of the Novation Date, all obligations of the
Transferor and the Remaining Party under the Old Agreement and Old
Transactions required to be performed on or before the Novation Date have
been fulfilled.

	 	(b)	 	The Transferor makes no representation or warranty and does not assume any
responsibility with respect to the legality, validity, effectiveness, adequacy or
enforceability of the New Transactions or the New Agreement or any documents relating
thereto and assumes no responsibility for the condition, financial or otherwise, of the
Remaining Party, the Transferee or any other person or for the performance and observance
by the Remaining Party, the Transferee or any other person of any of its obligations under
the New Transactions or the New Agreement or any document relating thereto and any and all
such conditions and warranties, whether express or implied by law or otherwise, are hereby
excluded.

 

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	4.	 	Counterparts.
	 
	 	 	This Novation Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission), each of which will
be deemed an original.
	 
	5.	 	Costs and Expenses.
	 
	 	 	The parties will each pay their own costs and expenses (including legal fees) incurred in
connection with this Novation Agreement and as a result of the negotiation, preparation and
execution of this Novation Agreement.
	 
	6.	 	Amendments.
	 
	 	 	No amendment, modification or waiver in respect of this Novation Agreement will be effective
unless in writing (including a writing evidenced by a facsimile transmission) and executed by
each of the parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

	 	 	 	 	 
	7.

	 	(a)
	 	Governing Law.
	 
	 	 	 	 
	 

	 	 	 	This Novation Agreement will be governed by and construed in accordance with the laws of the
State of New York without reference to the conflict of laws provisions thereof.
	 
	 	 	 	 
	 

	 	(b)
	 	Jurisdiction.
	 
	 	 	 	 
	 

	 	 	 	The terms of Section 13(b) of the 2002 ISDA Master Agreement shall apply to this Novation
Agreement with references in such Section to “this Agreement” being deemed references to
this Novation Agreement alone.

	8.	 	Documentation.
	 
	 	 	The parties each acknowledge that, as of the date hereof (i) the Old Confirmations shall be
deemed to be Confirmations between the Remaining Party and the Transferee and (ii) the Old
Agreement shall be deemed to be the New Agreement between the Remaining Party and the Transferee
and that the Remaining Party and the Transferee need not entering into new documentation.

 

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IN WITNESS WHEREOF the parties have executed this Novation Agreement on the respective dates
specified below with effect from and including the Novation Date.

CEF EQUIPMENT HOLDING, L.L.C.

	 	 	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

GE COMMERCIAL EQUIPMENT FINANCING LLC, SERIES 2005-1

BY: by CEF Equipment Holding, L.L.C., its Managing Member

	 	 	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

GENERAL ELECTRIC CAPITAL SERVICES, INC.

	 	 	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

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EXHIBIT A

The following agreements shall be Novated:

1. ISDA Master Agreement, dated as of June 16, 2005, between CEF Equipment Holding, L.L.C. and
General Electric Capital Services, Inc.

2. Confirmations, dated as of June 16, 2005, between CEF Equipment Holding, L.L.C. and General
Electric Capital Services, Inc. with the Transaction Reference Numbers: 19495, 19503 and 19496.<PAGE>

                                                               EXECUTION VERSION

EXHIBIT 10.1

       AMENDMENT NO. 7 TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT

      THIS AMENDMENT NO. 7 TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT
(this "AMENDMENT") is made and entered into as of June 16, 2005 (the "SEVENTH
AMENDMENT DATE") by and between NORTHWEST BIOTHERAPEUTICS, INC., and its
affiliates, if any (collectively, the "COMPANY"), a Delaware corporation with
offices at 22322 20th Ave SE, Suite 150, Bothell, Washington, 98021, and TOUCAN
CAPITAL FUND II, L.P., and its designees (collectively, "INVESTOR"), a Delaware
limited partnership with offices at 7600 Wisconsin Avenue, Bethesda, MD 20814.
All capitalized terms used herein but not otherwise defined shall have the
meaning given such terms in the Agreement (as defined below).

                                    RECITALS

      WHEREAS, the Company and Investor have entered into that certain Amended
and Restated Recapitalization Agreement, dated as of July 30, 2004 (the
"AGREEMENT");

      WHEREAS, on October 22, 2004, the Company and Investor entered into
Amendment No. 1 to the Agreement;

      WHEREAS, on November 10, 2004, the Company and Investor entered into
Amendment No. 2 to the Agreement;

      WHEREAS, on December 27, 2004, the Company and Investor entered into
Amendment No. 3 to the Agreement;

      WHEREAS, on January 26, 2005, the Company and Investor entered into
Amendment No. 4 to the Agreement;

      WHEREAS, on April 12, 2005, the Company and Investor entered into
Amendment No. 5 to the Agreement;

      WHEREAS, on May 13, 2005, the Company and Investor entered into Amendment
No. 6 to the Agreement;

      WHEREAS, the Company and Investor desire to further amend the Agreement to
make such changes to the Agreement as are set forth herein; and

      WHEREAS, Section 4.13(f) of the Agreement provides that the Agreement may
be amended or modified only by a written instrument signed by the Company and
Investor.

                                    AMENDMENT

                                       1
<PAGE>

                                                               EXECUTION VERSION

      NOW, THEREFORE, for and in consideration of the mutual promises and
covenants set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and
Investor hereby agree as follows:

1. Section 1.2 of the Agreement is hereby amended by inserting "and the Loan
Agreement, Security Agreement and 10% Convertible, Secured Promissory Note dated
June 16, 2005 attached hereto as Exhibit A-11, and the June 16 Bridge Warrant
(as defined herein) in the form attached hereto as Exhibit K-6" immediately
following the phrase "in the form attached hereto as Exhibit K-5" in subsection
(g) thereof.

2. Section 2.2(a) of the Agreement is hereby amended by replacing "A-10" with
"A-11."

3. Section 2.3(b) of the Agreement is hereby amended by adding the following
text immediately following the eighteenth sentence thereof:

      "On June 16, 2005 (the "SEVENTH AMENDMENT DATE"), Investor is providing an
      additional $500,000 of Bridge Funding (the "JUNE 16 BRIDGE FUNDING") to
      cover general operating expenses and certain other expenses of the Company
      agreed in advance by Investor during the period from June 16, 2005 through
      July 29, 2005. The June 16 Bridge Funding shall be evidenced by a Note in
      the form attached hereto as Exhibit A-11 and shall be provided on the
      terms and conditions set forth herein. The June 16 Bridge Funding shall be
      used only for the purposes and in the amounts agreed to in writing by
      Investor and the Company."

4. Section 2.3(b) of the Agreement is hereby further amended by replacing the
phrase "May 13 Bridge Funding" with "May 13 Bridge Funding or June 16 Bridge
Funding") in the nineteenth sentence thereof (i.e., the twenty-second sentence
thereof after giving effect to the inclusion of the three new sentences therein
per Section 3 of this Amendment).

5. The Agreement is hereby amended by adding a new Section 2.16, immediately
following Section 2.15 thereof, as follows:

      "2.16 June 16 Bridge Warrant:

            (a) Issuance of June 16 Bridge Warrant. On the Seventh Amendment
      Date, Investor shall receive a warrant with coverage equal to one hundred
      percent (100%) of the principal amount due under the Note evidencing the
      June 16 Bridge Funding (the "JUNE 16 BRIDGE WARRANT"). The Company shall,
      therefore, issue $500,000 in warrant coverage on the $500,000 of June 16
      Bridge Funding provided on the Seventh Amendment Date. The number of
      shares subject to the June 16 Bridge Warrant to be so issued shall be
      determined on the basis of $0.10 per share (subject to adjustment for
      stock splits, stock dividends and the like). The total number of shares
      for which Investor shall initially be able to exercise the June 16 Bridge
      Warrant shall therefore be 5,000,000 shares as of the Seventh Amendment
      Date.

            (b) Exercise of June 16 Bridge Warrant. The June 16 Bridge Warrant
      shall be immediately exercisable upon issuance and continue to be
      exercisable for a period of seven (7) years after its issuance date. The
      exercise price of the June 16 Bridge

                                       2
<PAGE>

                                                               EXECUTION VERSION

      Warrant shall be $0.04 (subject to adjustment for stock splits, stock
      dividends and the like, as provided more fully in the June 16 Bridge
      Warrant). In the event the Convertible Preferred Stock is approved and
      authorized, and the terms and conditions are the same as set forth herein
      and in the Convertible Preferred Stock Term Sheet, and Other Investors
      have purchased in cash (and not by conversion of debt, exercise of
      warrants or options, or conversion or exercise of other securities or
      instruments) a minimum of $15 million of such Convertible Preferred Stock,
      on the terms and conditions set forth herein and in the Convertible
      Preferred Stock Term Sheet, then the June 16 Bridge Warrant shall be
      exercisable solely for such Convertible Preferred Stock (subject to
      Section 5 thereof). However, if, for any reason, such Convertible
      Preferred Stock is not approved or authorized, and/or is approved or
      authorized on any terms different than any terms set forth herein and in
      the Convertible Preferred Stock Term Sheet, and/or if Other Investors have
      not purchased in cash (and not by conversion of debt, exercise of warrants
      or options, or conversion or exercise of other securities or instruments)
      a minimum of $15 million of such Convertible Preferred Stock, on the terms
      and conditions set forth herein and in the Convertible Preferred Stock
      Term Sheet, the June 16 Bridge Warrant shall be exercisable for any Equity
      Security and/or Debt Security (each as defined in Section 2.7 hereof)
      and/or any combination thereof, in each case that Investor shall designate
      in Investor's sole discretion (the securities so elected being the
      "INVESTOR DESIGNATED SECURITIES").

            (c) No Impairment. The Company shall not, by amendment of its
      Charter or through a reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities, or any other voluntary
      action, omission, or agreement, avoid or seek to avoid the observance or
      performance of any of the terms to be observed or performed by the Company
      under and/or in connection with the June 16 Bridge Warrant, but shall at
      all times in good faith use best efforts to assist in carrying out of all
      the provisions of and/or relating to such June 16 Bridge Warrant and in
      taking all such action as may be necessary or appropriate to protect
      Investor's rights, preferences and privileges under and/or in connection
      with the June 16 Bridge Warrant against impairment. Investor's rights,
      preferences and privileges granted under and/or in connection with the
      June 16 Bridge Warrant may not be amended, modified or waived without
      Investor's prior written consent, and the documentation providing for such
      rights, preferences and privileges will specifically provide as such.

            (d) Tax Treatment of June 16 Bridge Warrant and Note. The Company
      and Investor, as a result of arm's length bargaining, agree that the fair
      market value of the Note to be issued in connection with the June 16
      Bridge Funding, if issued apart from the June 16 Bridge Warrant, is
      $495,000, and the fair market value of the June 16 Bridge Warrant, if
      issued apart from such Note, is $5,000. The Company and Investor further
      agree that all tax filings and records relating to or including this
      Agreement, the Note to be issued in connection with the June 16 Bridge
      Funding and/or the June 16 Bridge Warrant shall be prepared on the basis
      of, and consistently reflect, the agreed fair market values set forth in
      this Section 2.16(d), and the Company shall instruct its accountants and
      other tax-preparation professionals to prepare all tax filings and returns
      on the basis of the foregoing."

                                       3
<PAGE>

                                                               EXECUTION VERSION

      6. Section 3.4(b) of the Agreement is hereby amended by:

            (a) replacing "$5.85 million" with "$5.35 million" in the first
            sentence thereof; and

            (b) replacing "58,500,000" with "53,500,000" in the third sentence
            thereof.

      7. Section 4.7.15 of the Agreement is hereby amended and restated in its
      entirety as follows:

                  "4.7.15 Liabilities. The Company has the following accrued
            liabilities: (i) tax liabilities to the State of Washington in the
            maximum amount of $512,000, (ii) amounts payable to Cognate
            Therapeutics and (iii) future sublease payments to MediQuest
            Corporation for the Company's premises sublease not yet due, and a
            contingent lease liability to Benaroya Capital Co. LLC for premises
            currently occupied by MediQuest Corporation should Mediquest
            Corporation default on its lease with Benaroya Capital Co. LLC and
            which is not yet due, (iv) the Company's aggregate accrued,
            contingent and/or other liabilities of any nature, either mature or
            immature, as of the Seventh Amendment Date, do not exceed $448,602
            (excluding amounts payable to Cognate), of which (x) $331,383 are
            currently due payables (including $284,497 for attorney and auditor
            fees), (y) $35,219 are the aggregate balances of capital leases
            payable in monthly installments in the amounts set forth in the
            budget included in the Schedule of Exceptions through the first
            calendar quarter of 2006, decreasing thereafter, the last of which
            is fully amortized in May 2007, and (z) $82,000 are accrued vacation
            and sick pay."

      8. The Agreement is hereby amended by adding new Exhibit A-11, immediately
      following Exhibit A-10 thereto, in the form attached as Exhibit A-11
      hereto.

      9. Exhibit B to the Agreement, as amended on December 27, 2004, January
      26, 2005, April 12, 2005 and May 13, 2005 is hereby further amended by
      Exhibit B-5 hereto (the "FIFTH AMENDMENT TO THE AMENDED AND RESTATED
      CONVERTIBLE PREFERRED STOCK TERM SHEET"). Exhibit B, as so amended, shall
      be deemed to constitute the "CONVERTIBLE PREFERRED STOCK TERM SHEET" for
      all purposes under the Agreement and all other Related Recapitalization
      Documents.

      10. The Agreement is hereby amended by adding new Exhibit K-6, immediately
      following Exhibit K-5 thereto, in the form attached as Exhibit K-6 hereto.

      11. The June 16 Bridge Warrant in the form attached hereto as Exhibit K-6
      shall be deemed to be a "BRIDGE WARRANT" and a "WARRANT" for all purposes
      under the Agreement and any Related Recapitalization Document. The Note
      evidencing the June 16 Bridge Funding in the form attached hereto as
      Exhibit A-11 issued on the Seventh Amendment Date shall be deemed to be a
      "NOTE" for all purposes under the Agreement and any Related
      Recapitalization Document. Each of the June 16 Bridge Warrant and the Note
      evidencing the June 16 Bridge Funding shall be deemed to be "RELATED
      RECAPITALIZATION DOCUMENTS" for all purposes under the Agreement and all
      other Related Recapitalization Documents.

      12. Except as amended and/or restated hereby, all other terms and
      conditions of the Agreement shall be unaffected hereby and remain in full
      force and effect.

                                       4
<PAGE>

                                                               EXECUTION VERSION

      13. This Amendment (including the Exhibits hereto, which are an integral
      part of the Amendment), together with the Agreement (including the
      Schedules and Exhibits thereto, which are an integral part of the
      Agreement) and the Related Recapitalization Documents, constitute the
      entire agreement among the parties hereto and thereto with regard to the
      subjects hereof and thereof and supersede all prior agreements and
      understandings relating to the subject matter hereof and thereof.

      14. This Amendment shall be governed by and construed under the laws of
      the State of Delaware, without regard to its conflicts of law provisions.

      15. This Amendment may be executed in one or more counterparts, each of
      which will be deemed an original but all of which together shall
      constitute one and the same agreement.

      16. This Amendment shall take effect immediately upon execution by the
      Company and Investor.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       5
<PAGE>

                                                               EXECUTION VERSION

      IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 7
TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT as of the Seventh Amendment
Date above written.

                                                NORTHWEST BIOTHERAPEUTICS, INC.

                                                By:_____________________
                                                Name:  Alton L. Boynton
                                                Title:  President

                                                TOUCAN CAPITAL FUND II, LP

                                                By:____________________
                                                Name:  Linda F. Powers
                                                Title:  Managing Director

                                       6
<PAGE>

                                                               EXECUTION VERSION

                                  EXHIBIT A-11

    FORM OF $500,000 LOAN AGREEMENT, SECURITY AGREEMENT AND 10% CONVERTIBLE,
                   SECURED PROMISSORY NOTE DATED JUNE 16, 2005

                                       7
<PAGE>

                                                               EXECUTION VERSION

                                   EXHIBIT B-5

      FORM OF FIFTH AMENDMENT TO AMENDED AND RESTATED CONVERTIBLE PREFERRED
                                STOCK TERM SHEET

                                       8.
<PAGE>

                                                               EXECUTION VERSION

                                   EXHIBIT K-6
                         FORM OF JUNE 16 BRIDGE WARRANT

                                       9.

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