BORGWARNER INC
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>thirdamend.htm
<TEXT>
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    <title>thirdamend.htm</title>
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    <div>&#160;</div>
    <div><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Arial; FONT-VARIANT: small-caps">Third Amendment and Waiver</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Arial">Dated as of April 27, 2007</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Arial">to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Arial; FONT-VARIANT: small-caps">Second Amended and Restated Receivables Loan Agreement</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>This Third Amendment and Waiver (the <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Amendment&#8221;</font>), dated as of
April 27, 2007, is entered into among BWA Receivables Corporation (the <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Borrower&#8221;</font>), BorgWarner Inc.
(<font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;BWI&#8221;</font> and in its
capacity as Collection Agent, the <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Collection Agent&#8221;</font>), Windmill
Funding Corporation, a Delaware corporation (<font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Windmill&#8221;</font>), the Bank listed
on the signature page hereof (the <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Bank&#8221;</font>) and ABN AMRO Bank
N.V., as agent for Windmill, and the Bank (the <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Agent&#8221;</font>).</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Reference is hereby made to that certain Second
Amended and Restated Receivables Loan Agreement, dated as of December 6, 2004
(as amended, supplemented or otherwise modified through the date hereof, the
<font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Loan Agreement&#8221;</font>),
among the Borrower, the Collection Agent, Windmill, the Bank and the
Agent.&#160;&#160;Terms used herein and not otherwise defined herein which are
defined in each Amended Agreement or other Transaction Documents (as defined in
the Loan Agreement) shall have the same meaning herein as defined
therein.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>For good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto hereby
agree as follows:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section
1</font>.&#160;&#160;&#160;&#160;Upon execution by the parties hereto in the
space provided for that purpose below, the Loan Agreement shall be, and it
hereby is, amended as follows:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(a)&#160;&#160;&#160;&#160;The date <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;April 27, 2007&#8221;</font> appearing in
clause (iv) of the defined term <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Bank Termination Date&#8221;</font>
appearing in Article I to the Loan Agreement is deleted and replaced with the
date <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;April 25,
2008&#8221;</font>.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(b)&#160;&#160;&#160;&#160;&#160;The date <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;April 27, 2007&#8221;</font> appearing in
the clause (i) of the defined term <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;Loan Amortization Date&#8221;</font>
appearing in Article I of the Loan Agreement is deleted and replaced with the
date <font style="DISPLAY: inline; FONT-STYLE: italic">&#8220;April 25,
2008&#8221;</font>.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section
2</font>.&#160;&#160;&#160;The Agent, Windmill and the Bank hereby waive the
right of the Agent in the last sentence of Section 6.1(e) of the Loan Agreement
to conduct an annual audit of the Records of the Borrower and/or make test audit
of verifications of the Receivables for the fiscal year ended December 31,
2007.&#160;&#160;Such waiver shall only be effective for such fiscal year, and
shall not be construed to be a waiver of any right of the Agent under Section
6.1(e) of the Loan Agreement for any other period.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section
3</font>.&#160;&#160;&#160;This Amendment shall become effective as of the date
first stated above once the Agent has received executed counterparts hereof from
each of the parties hereto.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section
4</font>.&#160;&#160;&#160;The Loan Agreement, as amended and supplemented
hereby or as contemplated herein, and all rights and powers created thereby and
thereunder or under the other Transaction Documents (as defined in the Loan
Agreement) and all other documents executed in connection therewith, are in all
respects ratified and confirmed.&#160;&#160;From and after the date hereof, the
Loan Agreement shall be amended and supplemented as herein provided, and, except
as so amended and supplemented, the Loan Agreement, each of the other
Transaction Documents and all other documents executed in connection therewith
shall remain in full force and effect.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section 5</font>.&#160;&#160;This
Amendment may be executed in two or more counterparts, each of which shall
constitute an original but both or all of which, when taken together, shall
constitute but one instrument.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-STYLE: italic">Section 6</font>.&#160;&#160;This
Amendment shall be governed and construed in accordance with the internal laws
of the State of Illinois.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">[Signature Pages to
Follow]</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font size="3">IN WITNESS WHEREOF, the parties have caused
this Amendment to be executed and delivered by their duly authorized officers as
of the date first above written.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><br></div><br>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    </div>
    <div><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">ABN AMRO BANK N.V.,
as the Agent and as a Bank</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">By: /s/ ABN AMRO
BANK N.V.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">Title:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">WINDMILL FUNDING
CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">By: /s/ WINDMILL
FUNDING CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">Title:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">BWA RECEIVABLES
CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">By: /s/ BWA
RECEIVABLES CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">Title:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">BORGWARNER
INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">By: /s/ BORGWARNER
INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Arial">Title:</font></div><br><br></div>
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