Document:

exv10w22

 

EXHIBIT 10.22

SECOND AMENDMENT

          THIS SECOND AMENDMENT is dated as of May 27, 2005 (this “Amendment”), and relates to
that certain (a) Receivables Financing Agreement, dated as of December 9, 2004 (as amended by that
certain First Amendment, dated as of February 7, 2005, and as further amended, restated,
supplemented or otherwise modified from time to time, the “Financing Agreement”), among HL
Funding II, Inc., a Delaware corporation (“HL II”), CAFCO, LLC, as an “Investor”, Citibank,
N.A., as a “Bank”, Citicorp North America, Inc., as the program agent (“Program Agent”) and
as an “Investor Agent”, HLI Operating Company, Inc. as “Servicer” (“HLIOC”) and Citibank,
N.A. as the “Disbursement Agent”, and the other financial institutions from time to time a party
thereto as “Investors”, “Banks” and/or “Investor Agents” (as each such quoted term is defined in
the Financing Agreement), (b) Secondary Purchase Agreement, dated as of December 9, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the “Secondary
Purchase Agreement”), among HL II and HL Funding I, LLC (“HL I”), and (c) Originator
Purchase Agreement, dated as of December 9, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Originator Purchase Agreement”), among the persons listed
on Schedule 1 thereto as “Originators” and HL I, and is hereby made by HL I, HL II, the Program
Agent, the Originators (as defined immediately prior to giving effect to this Amendment), Hub &
Drum (as defined below) and Akron (as defined below). Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to them in the Financing Agreement, or if not
defined therein, in the Originator Purchase Agreement, or if not defined therein, in the Secondary
Purchase Agreement, in each case, as modified hereby.

WITNESSETH:

          WHEREAS, HLIOC has advised HL I, HL II and the Program Agent that (a) Hayes Lemmerz
International – Commercial Highway, Inc. (“HLI – Commercial Highway”) has formed a
wholly-owned Subsidiary named Hayes Lemmerz International – Hub and Drum, LLC, established as a
Delaware limited liability company (“Hub & Drum”), and (b) HLI – Commercial Highway intends
to (i) pursuant to a transfer, assignment, contribution and amendment agreement, transfer to Hub &
Drum HLI – Commercial Highway’s Stock in HL I and all other assets, liabilities and obligations of
HLI – Commercial Highway relating to the Receivables arising out of the Berea, Kentucky and
Chattanooga, Tennessee operations, which Receivables have been previously transferred to HL I in
connection with the Originator Purchase Agreement, and (ii) pursuant to an asset transfer and
contribution agreement, transfer all other assets and liabilities of the Berea, Kentucky and
Chattanooga, Tennessee operations from HLI – Commercial Highway to Hub & Drum (collectively, the
“Hub & Drum Transaction”);

          WHEREAS, HLI – Commercial Highway, has requested that in connection with the Hub & Drum
Transaction, that the Program Agent, HL II and HL I consent to the addition of Hub & Drum as an
Originator pursuant to Section 2.09 of the Originator Purchase Agreement and the definition of
“Originator” in the Financing Agreement (the “Addition of Hub & Drum”);

          WHEREAS, HLIOC has advised HL I, HL II and the Program Agent that (a) HLI Commercial Highway
Holding Company, Inc. (“HLICH Holding”) has formed a wholly-owned Subsidiary named Hayes
Lemmerz International – Akron, LLC, established as a Delaware

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limited liability company (“Akron”), (b) following the Hub & Drum Transaction, HLI –
Commercial Highway and Hayes Lemmerz International – Texas, Inc., a Texas corporation (“HLI
Texas”) intends to merge with and into HLICH Holding pursuant to a merger agreement (the
“Initial Merger”), and (c) immediately following the Initial Merger, HLICH Holding intends
to (i) pursuant to an asset transfer, assignment, contribution and amendment agreement, transfer
the Stock issued by HL I to HLICH Holding (as successor by merger to HLI – Commercial Highway) in
HL I and all other assets, liabilities and obligations of HLICH Holding (as successor by merger to
HLI – Commercial Highway) relating to the Receivables arising out of the Akron, Ohio operations,
which Receivables have been previously transferred to HL I in connection with the Originator
Purchase Agreement, and (ii) pursuant to an asset transfer and contribution agreement, transfer all
other assets and liabilities related to the Akron, Ohio operations to Akron (collectively, the
“Akron Transaction”);

          WHEREAS, HLI – Commercial Highway, has requested that in connection with the Akron
Transaction, that the Program Agent, HL II, HL I and the Originators consent to the contemporaneous
removal of HLI – Commercial Highway as an Originator (the “Originator Removal”) and the
addition of Akron as an Originator pursuant to Section 2.09 of the Originator Purchase Agreement
and the definition of “Originator” in the Financing Agreement (the “Addition of Akron”);

          WHEREAS, HLIOC has advised that immediately following the Hub & Drum Transaction and the Akron
Transaction, HLICH Holding will merge with and into HLIOC (the “HLIOC Merger”);

          WHEREAS, the Program Agent, Investor Agent, HL I, HL II, and the Originators are willing to
grant the requested consents on the terms and conditions set forth herein;

          WHEREAS, HLIOC and HL II have also requested, and the Program Agent and Investor Agent have
consented to, certain other modifications to the Financing Agreement as set forth herein;

          NOW, THEREFORE, in consideration of the foregoing premises, the parties hereto agree as
follows:

          1. Amendments to Financing Agreement on Effective Date. As of the “Effective Date”
(as defined in Section 5 below), the Financing Agreement is hereby amended as follows:

          (a) The definition of “Borrowing Base” in Section 1.01 of the Financing Agreement is
deleted in its entirety and replaced with the following:

          “Borrowing Base” means, at any time, an amount computed as

NRPB - (YFR + RLDR + MFA)

          where:

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          NRPB = the Net Receivables Pool Balance at such time
of computation.

          YFR = the Yield and Fee Reserve at such time of
computation.

          RLDR = the Required Loss and Dilution Reserve at
such time of computation.

          MFA = the Monthly Fluctuation Amount.

          (b) The definition of “Concentration Limit” in Section 1.01 of the Financing Agreement
is deleted in its entirety and replaced with the following:

“Concentration Limit” for any Obligor means at any time 8.67%
(“Normal Concentration Limit”), or such other higher amount (“Special
Concentration Limit”), for such Obligor designated on Schedule 1.01-1 hereto
and, after the date of this Agreement designated by the Program Agent and
each Investor Agent in a writing delivered to the Borrower; provided that in
the case of an Obligor with any Affiliated Obligor, the Concentration Limit
shall be calculated as if such Obligor and such Affiliated Obligor are one
Obligor; provided further that the Program Agent may reduce or cancel in the
Program Agent’s reasonable discretion, or the Program Agent and all Investor
Agents may increase, any Special Concentration Limit upon five Business
Days’ prior notice to the Borrower (with a copy to each of the other
Agents).

          (c) The definition of “Diluted Receivable” in Section 1.01 of the Financing Agreement
is amended by deleting the final proviso in its entirety and replacing it with the
following:

; provided that for the purposes of calculating the Dilution Percentage or
Dilution Ratio, the portion of any Receivable that constitutes a “Diluted
Receivable” solely because of any of the dilution factors set forth in
Schedule 1.01-3 shall not be included as a “Diluted Receivable”.

          (d) The definition of “Dilution Reserve” in Section 1.01 of the Financing Agreement is
deleted in its entirety.

          (e) The definition of “Loss Percentage” in Section 1.01 of the Financing Agreement is
deleted in its entirety and replaced with the following:

“Loss Percentage” means, as of any date, the product of (a) two
multiplied by (b) the Loss Horizon Factor as of the last day of the most
recently ended Month multiplied by (c) the highest of the Loss Ratios for
the twelve most recently ended Months.

          (f) The definition of “Loss Reserve” in Section 1.01 of the Financing Agreement is
deleted in its entirety.

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          (g) The definition of “Required Loss and Dilution Reserve” is added in the proper
alphanumerical order to Section 1.01 of the Financing Agreement as follows:

“Required Loss and Dilution Reserve” means, as of any date, the Net
Receivables Pool Balance on such date multiplied by the greater of:

     (a) the sum of the Loss Percentage plus the Dilution Percentage
as of such date; and

     (b) the sum of (i) three times the Normal Concentration Limit
plus (ii) the average of the Dilution Ratios as of the last day of
each of the twelve most recently ended Months multiplied by the
Dilution Horizon Factor as of such date.

          (h) Schedule 1.01-1 of the Financing Agreement is deleted in its entirety and replaced
with Exhibit B attached hereto.

          2. Consent and Amendments As of Restructuring Effective Date. As of the
“Restructuring Effective Date” (as defined in Section 6 below):

          (a) The Program Agent, HL I, HL II and the Originators hereby consent to the Addition
of Hub & Drum, the Originator Removal and the Addition of Akron.

          (b) Each of Schedule 1, Exhibit C and Exhibit D to the Originator Purchase Agreement
shall be amended and restated by such schedules and exhibits attached as Exhibit A
hereto to reflect the Addition of Akron, the Addition of Hub & Drum and the Originator
Removal.

          (c) Schedule 1.01-4 of the Financing Agreement shall be amended by deleting “Hayes
Lemmerz International – Commercial Highway, Inc.” and adding “Hayes Lemmerz International –
Akron, LLC” and “Hayes Lemmerz International – Hub & Drum, LLC” under the reference to
“Originators” thereon.

          3. Joinder of Additional Originators. As of the Restructuring Effective Date, each of
Akron and Hub & Drum agrees to be bound by all of the provisions of the Originator Purchase
Agreement and each other Transaction Document applicable to an Originator thereunder and agrees
that it shall, on the Restructuring Effective Date become an Originator for all purposes of the
Originator Purchase Agreement and each other Transaction Document to the same extent as if
originally a party thereto and to assume as of such date from HLICH Holding and HLI – Commercial
Highway, respectively, all of their respective liabilities and obligations under the Originator
Purchase Agreement relating to or arising from the Akron, Ohio operations and the Berea, Kentucky
and Chattanooga, Tennessee operations of such entities, respectively.

          4. Representations and Warranties. (a) As of the Effective Date, Originators (as
defined prior to the Restructuring Effective Date), hereby represent and warrant to HL I, (b) as of
the Restructuring Effective Date, Originators (as defined as of the Restructuring Effective

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Date), hereby represent and warrant to HL I, and (c) as of each of the Effective Date and
Restructuring Effective Date, HL I hereby represents and warrants to HL II, and HL II and HLIOC
each represent and warrant to Program Agent (for the benefit of itself, Investor Agents, Investors,
Banks and Disbursement Agent) that (i) all of the representations and warranties of such Person in
the Transaction Documents are true and correct in all respects on and as of such date as though
made to each such Person on and as of such date (other than representations and warranties which
expressly speak as of a different date, which representations shall be made only on such date),
(ii) each of the recitals accurately describes the transactions described therein in all respects,
and (iii) as of such date, no Event of Termination, Incipient Event of Termination, or Servicer
Default has occurred and is continuing.

          5. Effective Date. The “Effective Date” shall occur upon the satisfaction of
the following conditions precedent:

          (a) The Program Agent shall have received counterparts hereof executed by each Person
for which a signature block is attached hereto.

          (b) Each of the representations and warranties contained in this Amendment which speaks
as of the Effective Date shall be true and correct in all respects on and as of the
Effective Date.

          (c) The Program Agent shall have received an amendment fee in the amount of $40,000 in
immediately available funds; and the parties hereto agree that such amendment fee shall be
fully earned on the date hereof and shall be nonrefundable.

          (d) All legal expenses, disbursements and fees of Sidley Austin Brown & Wood LLP,
counsel to the Program Agent, through May 20, 2005, in the amount of $40,214.85 (for which a
statement has been rendered to Borrower) shall have been paid by Borrower in immediately
available funds.

          6. Restructuring Effective Date. The “Restructuring Effective Date” shall
occur upon the satisfaction of the following conditions precedent:

          (a) The Program Agent shall have received counterparts hereof executed by each Person
for which a signature block is attached hereto.

          (b) Each of the representations and warranties contained in this Amendment which speaks
as of the Restructuring Effective Date shall be true and correct in all respects on and as
of the Restructuring Effective Date.

          (c) The Program Agent, Akron, Hub & Drum and CNAI, in its capacity as administrative
agent under the Credit Agreement, shall have executed and delivered signature pages to an
agreement joining Akron and Hub & Drum as parties to the Intercreditor Agreement, which
agreement shall be in form and substance satisfactory to the Program Agent;

          (d) Each of the following shall have been received, in each case in form and substance
satisfactory to HL I, HL II and the Program Agent:

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          (i) Secretary’s Certificates. A certificate of the secretary or an
assistant secretary of (1) each of Akron and Hub & Drum, dated as of the
Restructuring Effective Date, and certifying (A) that attached thereto is a true and
complete copy of the Charter Documents of such Person, and, with respect to the
certificate or articles of incorporation or certificate of formation, is certified
as of a recent date by the Secretary of State of the State of such Person’s
organization, (B) that attached thereto is a true and complete copy of the
resolutions of the board of directors of such Person or committees thereof
authorizing the execution, delivery and performance of the Originator Purchase
Agreement and the other Transaction Documents to which the Originators are bound and
the transactions contemplated hereby and thereby, and that such resolutions have not
been amended, modified, revoked or rescinded and are in full force and effect, and
(C) as to the incumbency and specimen signature of each officer executing this
Amendment or any other document delivered in connection therewith on behalf of such
Person, and (2) HL I certifying that attached thereto is a true and complete copy of
HL I’s operating agreement, as amended to reflect the addition of Akron and Hub &
Drum as members and the removal of HLI – Commercial Highway as a member;

          (ii) Officer’s Certificate. A certificate of a Financial Officer of
each of Akron and Hub & Drum, dated the Restructuring Effective Date, and certifying
such Person is in the same or a related line of business as the existing
Originators;

          (iii) Good Standing Certificates. Certificates of compliance, of
status or of good standing, dated as of a recent date, from the Secretary of State
or other appropriate authority of such jurisdiction, with respect to each of Akron
and Hub & Drum in each state where such Person is organized and where the ownership,
lease or operation of property or the conduct of business requires it to qualify as
a foreign limited liability company, except where the failure to so qualify would
not have a Material Adverse Effect;

          (iv) Consents, Licenses, Approvals, Etc. A Certificate dated the
Restructuring Effective Date of a Financial Officer of each of Akron and Hub & Drum
either (A) attaching copies of all consents (including, without limitation, consents
under loan agreements and indentures to which Akron, Hub & Drum, any Originator or
its Affiliates are parties), licenses and approvals required in connection with the
execution, delivery and performance by Akron or Hub & Drum of this Amendment and the
validity and enforceability of the Amendment against Akron and Hub & Drum, and such
consents, licenses and approvals shall be in full force and effect or (B) stating
that no such consents, licenses and approvals are so required;

          (v) No Litigation. Confirmation that there is no pending or, to its
knowledge after due inquiry, threatened action or proceeding affecting such Akron,
Hub & Drum or any of their Subsidiaries before any Governmental Entity that could
reasonably be expected to have a Material Adverse Effect;

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          (vi) Collection Information. Confirmation that neither Akron nor Hub &
Drum have any Deposit Accounts or Lockboxes other than Deposit Accounts and
Lockboxes currently specified on Exhibit D to the Originator Purchase Agreement;

          (vii) Financing Statements. Copies of proper financing statements,
duly filed on or before the Restructuring Effective Date under the UCC as follows:
(A) naming HLI – Commercial Highway as seller and Hub & Drum as buyer in the office
of the Secretary of State of the State of Delaware, (B) naming HLICH Holding as
seller and Akron as buyer in the office of the Secretary of State of the State of
Delaware, (C) naming Akron as debtor, HL I as secured party assignor and the Program
Agent as secured party assignee in the office of the Secretary of State of the State
of Delaware, (D) naming Hub & Drum as debtor, HL I as secured party assignor and the
Program Agent as secured party assignee in the office of the Secretary of State of
the State of Delaware, and (E) terminating the financing statement on file in the
office of the Secretary of State of the State of Delaware naming HLI – Commercial
Highway as debtor, HL I as secured party and Program Agent as secured party
assignee;

          (viii) UCC Searches. Completed requests for information, dated on or
before the Restructuring Effective Date, listing all effective financing statements
filed (A) with respect to Akron, in the jurisdiction of Delaware, (B) with respect
to Hub & Drum, in the jurisdiction of Delaware, (C) with respect to HLI Texas, in
the jurisdictions of Texas and Michigan, and (D) with respect to HLICH Holding, in
the jurisdictions of Delaware and Michigan, together with copies of such financing
statements (none of which, except those for which releases or terminations are being
delivered, shall cover any Collateral or Originator Collateral;

          (ix) Legal Opinions. Favorable opinions of Skadden, Arps, Slate,
Meagher & Flom LLP, and in-house counsel of Akron and Hub & Drum, as to (a) with
respect to Akron and Hub & Drum, corporate, enforceability, non-contravention, and
other matters, in substantially similar form and substance as the legal opinions
originally delivered with respect to such matters in connection with the original
closing of the Financing Agreement, and (b) true sale and substantive consolidation
matters with respect to Akron and Hub & Drum as well as with respect to the impact
of the transactions described in the recitals on the legal opinions originally
delivered with respect to such matters in connection with the original closing of
the Financing Agreement, in each case, in form and substance satisfactory to Program
Agent;

          (x) Transaction Documents. A certificate of the secretary or an
assistant secretary of each of HLI – Commercial Highway, HLICH Holding, HLIOC, Akron
and Hub & Drum, dated as of the Restructuring Effective Date, and certifying that
attached thereto are the operative documents relating to the Hub & Drum Transaction,
the Akron Transaction, and the HLIOC Merger, which

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such documents shall be in form and substance reasonably satisfactory to
Program Agent, and which shall reflect the transactions as described in the
recitals.

          (xi) Additional Items. Such other approvals, opinions or documents as
HL I, HL II or the Program Agent (or any of its assignees) may reasonably request
from Akron or Hub & Drum.

          (e) All reasonable legal expenses, disbursements and fees of Sidley Austin Brown & Wood
LLP, counsel to the Program Agent, shall have been paid by Borrower in immediately available
funds.

          7. Reference to and Effect on the Loan Documents.

          (a) As applicable, on and after the Effective Date and the Restructuring Effective
Date, each reference in the Financing Agreement and Originator Purchase Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import, and each reference in the other
Transaction Documents to the Financing Agreement and Originator Purchase Agreement, shall
mean and be a reference to the Financing Agreement and Originator Purchase Agreement as
modified hereby.

          (b) Except as specifically amended or consented to above, all of the terms of the
Financing Agreement, Originator Purchase Agreement and all other Transaction Documents
remain unchanged and in full force and effect.

          (c) The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of any Investor, Bank, or Investor Agent, or of Program
Agent, HL I or HL II under any of the Transaction Documents, nor constitute an amendment or
waiver of any provision of any of the Transaction Documents, nor obligate any Investor, Bank
or Investor Agent or Program Agent, HL I or HL II to agree to similar consents in the
future.

          8. Costs and Expenses. Subject to Section 5(d) hereof, HL II agrees to pay upon
demand in accordance with the terms of Section 11.04 of the Financing Agreement all reasonable
costs and expenses of the Program Agent in connection with the preparation, reproduction,
negotiation, execution and delivery of this Amendment, including, without limitation, the
reasonable fees, expenses and disbursements of Sidley Austin Brown & Wood, LLP, counsel for the
Program Agent with respect to any of the foregoing.

          9. Miscellaneous. The headings herein are for convenience of reference only and shall
not alter or otherwise affect the meaning hereof.

          10. Counterparts. This Amendment may be executed in any number of counterparts and by
the different parties hereto in separate counterparts, each of which when so executed and delivered
by facsimile shall be an original, but all of which shall together constitute one and the same
instrument.

          11. GOVERNING LAW. THIS AMENDMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF

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THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

*   *   *

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          IN WITNESS WHEREOF, HL I, HL II, HLIOC, the Program Agent, Akron, Hub & Drum and the
Originators have caused this Amendment to be executed by their respective officers thereunto duly
authorized as of the date first above written.

	 	 	 	 	 
	 	HL FUNDING II, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HL FUNDING I, LLC

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HLI OPERATING COMPANY, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

Signature Page to Second Amendment 

 

 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,

as Program Agent

 	 
	 	By:  	/s/ Debbie Ng	 
	 	 	Debbie Ng 	 
	 	 	Vice President 	 

Signature Page to Second Amendment

 

 

ORIGINATORS:

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – SEDALIA, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – CALIFORNIA, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – HUNTINGTON, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – GEORGIA, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL IMPORT, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

Signature Page to Second Amendment

 

 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – COMMERCIAL HIGHWAY, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – WABASH, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – LAREDO, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – HOMER, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – BRISTOL, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

Signature Page to Second Amendment

 

 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – CADILLAC, INC. 

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – MONTAGUE, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – SOUTHFIELD, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – TECHNICAL CENTER, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

Signature Page to Second Amendment

 

 

ADDITIONAL ORIGINATORS:

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – AKRON, LLC

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – HUB & DRUM LLC

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

REMOVED ORIGINATOR:

	 	 	 	 	 
	 	HAYES LEMMERZ INTERNATIONAL – COMMERCIAL HIGHWAY, INC.

 	 
	 	By:  	/s/ Gary Findling	 
	 	 	Gary Findling 	 
	 	 	Treasurer 	 

Signature Page to Second Amendment<PAGE>

                                                                    Exhibit 10.1

       AMENDMENT NO. 9 TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT

      THIS AMENDMENT NO. 9 TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT
(this "AMENDMENT") is made and entered into as of September 7, 2005 (the "NINTH
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, on June 16, 2005, the Company and Investor entered into Amendment
No. 7 to the Agreement;

      WHEREAS, on July 26, 2005, the Company and Investor entered into Amendment
No. 8 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

                                       1

<PAGE>

      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

      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 September 7, 2005 attached hereto as Exhibit A-13, and the
      September 7 Bridge Warrant (as defined herein) in the form attached hereto
      as Exhibit K-8" immediately following the phrase "in the form attached
      hereto as Exhibit K-7" in subsection (g) thereof.

      2. Section 2.2(a) of the Agreement is hereby amended by replacing "A-12"
      with "A-13."

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

      "On September 7, 2005 (the "NINTH AMENDMENT DATE"), Investor is providing
      an additional $500,000 of Bridge Funding (the "SEPTEMBER 7 BRIDGE
      FUNDING") to cover general operating expenses and certain other expenses
      of the Company agreed in advance by Investor during the period from
      September 7, 2005 through September 30, 2005. The September 7 Bridge
      Funding shall be evidenced by a Note in the form attached hereto as
      Exhibit A-13 and shall be provided on the terms and conditions set forth
      herein. The September 7 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 "July 26 Bridge Funding" with "July 26 Bridge Funding or
      September 7 Bridge Funding") in the twenty-fifth sentence thereof (i.e.,
      the twenty-eighth 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 2.18,
      immediately following Section 2.17 thereof, as follows:

      "2.18 September 7 Bridge Warrant:

            (a) Issuance of September 7 Bridge Warrant. On the Ninth 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
      September 7 Bridge Funding (the "SEPTEMBER 7 BRIDGE Warrant"). The Company
      shall, therefore, issue $500,000 in warrant coverage on the $500,000 of
      September 7 Bridge Funding provided on the Ninth Amendment Date. The
      number of shares subject to the September 7 Bridge Warrant to be so issued
      shall be determined on the basis of $0.10

                                       2

<PAGE>

      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 September 7 Bridge Warrant shall therefore be
      5,000,000 shares as of the Ninth Amendment Date.

            (b) Exercise of September 7 Bridge Warrant. The September 7 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 September 7 Bridge Warrant shall be $0.04 (subject
      to adjustment for stock splits, stock dividends and the like, as provided
      more fully in the September 7 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 September 7 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 September 7
      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 September 7 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 September 7 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 September 7 Bridge Warrant against impairment.
      Investor's rights, preferences and privileges granted under and/or in
      connection with the September 7 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 September 7 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
      September 7 Bridge Funding, if issued

                                       3

<PAGE>

      apart from the September 7 Bridge Warrant, is $495,000, and the fair
      market value of the September 7 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 September 7 Bridge Funding and/or the
      September 7 Bridge Warrant shall be prepared on the basis of, and
      consistently reflect, the agreed fair market values set forth in this
      Section 2.18(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."

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

      (a)   replacing "$4.85 million" with "$4.35 million" in the first sentence
            thereof; and

      (b)   replacing "48,500,000" with "43,500,000" 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 $322,017, (ii) amounts payable to Cognate Therapeutics and
      Investor, (iii) future sublease payments to MediQuest Corporation and a
      contingent lease liability to Benaroya Capital Co. LLC for the Company's
      premises should Mediquest Corporation default on its lease with Benaroya
      Capital Co. LLC and which is not yet due, and (iv) the Company's aggregate
      accrued, contingent and/or other liabilities of any nature, either mature
      or immature, as of the Ninth Amendment Date, not in excess of $278,524
      (excluding amounts payable to Cognate and Investor), of which (x) $168,282
      are currently due payables (including $100,042 for attorney and auditor
      fees), (y) $25,134 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) $85,522 are accrued vacation and sick pay."

      8. The Agreement is hereby amended by adding new Exhibit A-13, immediately
      following Exhibit A-12 thereto, in the form attached as Exhibit A-13
      hereto.

      9. Exhibit B to the Agreement, as amended on December 27, 2004, January
      26, 2005, April 12, 2005, May 13, 2005, June 16, 2005 and July 26, 2006 is
      hereby further amended by Exhibit B-7 hereto (the "SEVENTH 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-8, immediately
      following Exhibit K-7 thereto, in the form attached as Exhibit K-8 hereto.

      11. The September 7 Bridge Warrant in the form attached hereto as Exhibit
      K-8 shall be deemed to be a "BRIDGE WARRANT" and a "Warrant" for all
      purposes under the Agreement and

                                       4

<PAGE>

      any Related Recapitalization Document. The Note evidencing the September 7
      Bridge Funding in the form attached hereto as Exhibit A-13 issued on the
      Ninth Amendment Date shall be deemed to be a "NOTE" for all purposes under
      the Agreement and any Related Recapitalization Document. Each of the
      September 7 Bridge Warrant and the Note evidencing the September 7 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.

      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>

      IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 9
TO AMENDED AND RESTATED RECAPITALIZATION AGREEMENT as of the Ninth 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

                                  EXHIBIT A-13

    FORM OF $500,000 LOAN AGREEMENT, SECURITY AGREEMENT AND 10% CONVERTIBLE,
                 SECURED PROMISSORY NOTE DATED SEPTEMBER 7, 2005

                                        6

<PAGE>

                                   EXHIBIT B-7

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

                                        7

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