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As filed with the Securities and Exchange Commission on March 23, 1998
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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TRW INC.
(Exact Name of Registrant as Specified in Its Charter)
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<S> <C> <C>
OHIO 3714 34-0575430
(State or Other Jurisdiction of (Primary Standard Industrial (I.R.S. Employer
Incorporation or Organization) Classification Code Number) Identification Number)
</TABLE>
1900 RICHMOND ROAD
CLEVELAND, OHIO 44124
(216) 291-7000
(Address, Including Zip Code, and Telephone Number, Including Area Code,
of Registrant's Principal Executive Offices)
WILLIAM B. LAWRENCE, ESQ.
EXECUTIVE VICE PRESIDENT,
GENERAL COUNSEL AND SECRETARY
TRW INC.
1900 RICHMOND ROAD
CLEVELAND, OHIO 44124
(216) 291-7000
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(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)
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Copies to:
THOMAS C. DANIELS, ESQ. WILLIAM P. ROGERS, JR., ESQ.
JONES, DAY, REAVIS & POGUE CRAVATH, SWAINE & MOORE
901 LAKESIDE AVENUE WORLDWIDE PLAZA, 825 EIGHTH AVENUE
CLEVELAND, OHIO 44114 NEW YORK, NEW YORK 10019
(216) 586-3939 (212) 474-1270
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
From time to time after this Registration Statement becomes effective as
determined by market conditions and other factors.
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If the only securities being registered on this form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box. [ ]
If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]
If this form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and list
the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
If this form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
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CALCULATION OF REGISTRATION FEE
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PROPOSED MAXIMUM
TITLE OF EACH CLASS AGGREGATE AMOUNT OF
OF SECURITIES TO BE REGISTERED (1) OFFERING PRICE (2)(3)(4) REGISTRATION FEE
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Debt Securities...................................................
Debt Warrants.....................................................
Common Stock (5)..................................................
Common Stock Warrants.............................................
Total............................................................. $1,000,000,000 $295,000
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<FN>
(1) This Registration Statement includes an indeterminate amount of securities as may be issued upon exercise of the Common
Stock Warrants registered hereunder.
(2) Not specified as to each class of securities to be registered hereunder pursuant to General Instruction II.D of Form S-3
under the Securities Act of 1933 (the "Securities Act").
(3) In United States dollars or the equivalent thereof in any other currency, currency unit or units, or composite currency or
currencies.
(4) Estimated for the sole purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act and
exclusive of accrued interest and dividends, if any. Reflects the proceeds, rather than the principal amount, of any debt
securities sold initially at a discount.
(5) Includes Preference Stock Purchase Rights ("Rights"). The Rights are associated with and trade with the Common Stock. See
"Description of Capital Stock--Preference Stock Purchase Rights" in the Prospectus contained herein. The value, if any,
attributable to the Rights is reflected in the market price of the Common Stock.
</FN>
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE
ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY
DETERMINE.
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INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
SUBJECT TO COMPLETION, DATED MARCH 23, 1998
PROSPECTUS
TRW INC.
DEBT SECURITIES
COMMON STOCK
WARRANTS
TRW Inc. ("TRW" or the "Company") intends to issue from time to time (i)
debt securities (the "Debt Securities"), (ii) shares of its common stock, par
value $0.625 per share ("Common Stock"), (iii) warrants to purchase debt
securities (the "Debt Warrants"), and (iv) warrants to purchase Common Stock
("Common Stock Warrants" and, together with the Debt Warrants, the "Securities
Warrants") from which the Company will receive proceeds of up to an aggregate of
$1,000,000,000 (or the equivalent in foreign denominated currency or units
consisting of multiple currencies) and which will be offered on terms to be
determined at the time of sale (the Debt Securities, Common Stock and Securities
Warrants offered hereby being referred to herein collectively as the "Offered
Securities"). The Debt Securities and Debt Warrants may be issued in one or more
series with the same or various maturities, at par or at a premium or with an
original issue discount. The Common Stock Warrants may be issued in one or more
series with the same or various maturities, with exercise prices at market value
or at a premium or discount to market value. The purchase price for the Offered
Securities and the principal of and any premium and any interest on the Debt
Securities may be payable in U.S. dollars or foreign denominated currency or
currency units.
The specific terms of the Offered Securities in respect of which this
Prospectus is delivered, including, where applicable, (i) in the case of Debt
Securities, the specific designation, aggregate principal amount, designated
currency or currency units, offering price, maturity, rate of interest (or
method of calculation) and time of any payment of interest, any right on the
part of the holders of Debt Securities to require the repurchase thereof by the
Company, any redemption, sinking fund and other terms and any securities
exchange listing of Debt Securities, (ii) in the case of Common Stock, the
number of shares and the initial public offering price, (iii) in the case of
Securities Warrants, the designation and the number of securities issuable upon
their exercise, the duration, offering price, exercise price, number and
detachability thereof, and (iv) in the case of all Offered Securities, whether
such Offered Securities will be offered separately or as a unit with other
Offered Securities, will be set forth in the applicable Prospectus Supplement.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
The Company may sell the Offered Securities in any one or more of the
following ways: (i) directly to purchasers; (ii) through agents; (iii) to
dealers; or (iv) to underwriters. If any underwriters, agents or dealers are
involved in the sale of the Offered Securities, their names and any applicable
fee, commission or discount arrangements with them will be set forth in the
Prospectus Supplement. See "Plan of Distribution." The net proceeds to the
Company from such sale also will be set forth in the Prospectus Supplement.
March __, 1998
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NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS OR ANY PROSPECTUS SUPPLEMENT IN
CONNECTION WITH THE OFFER MADE BY THIS PROSPECTUS OR ANY PROSPECTUS SUPPLEMENT
AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR BY ANY UNDERWRITER, DEALER OR
AGENT. THIS PROSPECTUS AND ANY PROSPECTUS SUPPLEMENT DO NOT CONSTITUTE AN OFFER
TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE OFFERED SECURITIES IN
ANY JURISDICTION IN WHICH OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH
OFFER OR SOLICITATION. THIS PROSPECTUS AND ANY PROSPECTUS SUPPLEMENT DO NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
OTHER THAN THOSE TO WHICH THEY RELATE. NEITHER THE DELIVERY OF THIS PROSPECTUS
AND ANY PROSPECTUS SUPPLEMENT AND ANY SALE OF OR OFFER TO SELL THE OFFERED
SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR THAT THE
INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934 (the "Exchange Act") and in accordance therewith
files reports, proxy statements and other information with the Securities and
Exchange Commission (the "Commission"). Reports, proxy statements and other
information filed by the Company with the Commission can be inspected and copied
at the public reference facilities maintained by the Commission at Judiciary
Plaza, 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at the
following Regional Offices of the Commission: 7 World Trade Center, Suite 1300,
New York, New York 10048; and 500 West Madison Street, Suite 1400, Chicago,
Illinois 60661-2511. Copies of such material can be obtained from the Public
Reference Section of the Commission at 450 Fifth Street, N.W., Room 1024,
Washington, D.C. 20549, at prescribed rates. The Commission maintains a Web site
at http://www.sec.gov that contains reports, proxy and information statements
and other information regarding registrants, including the Company, that file
electronically with the Commission. The Common Stock is traded on the New York,
Chicago and Philadelphia Stock Exchanges and on the Pacific Exchange, as well as
on the Frankfurt and London Stock Exchanges. Reports, proxy statements and other
information concerning the Company can also be inspected at the offices of the
New York Stock Exchange, Inc., 20 Broad Street, New York, New York 10005; the
Chicago Stock Exchange, Incorporated, 440 South LaSalle Street, Chicago,
Illinois 60605; the Pacific Exchange, Inc., 301 Pine Street, San Francisco,
California 94104; and the Philadelphia Stock Exchange Inc., Stock Exchange
Building, 1900 Market Street, Philadelphia, Pennsylvania 19103.
This Prospectus constitutes part of a Registration Statement on Form
S-3 (the "Registration Statement," which term shall include any amendments
thereto) filed by the Company with the Commission under the Securities Act of
1933 (the "Securities Act"), relating to the securities offered hereby. This
Prospectus omits certain of the information contained in the Registration
Statement, and reference is hereby made to the Registration Statement and to the
exhibits relating thereto for further information with respect to the Company
and the securities offered hereby. Any statements contained herein concerning
the provisions of any document are not necessarily complete and in each instance
reference is made to the copy of such document filed as an exhibit to the
Registration Statement or otherwise filed with the Commission. Each such
statement is qualified in its entirety by such reference.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Company will provide without charge to each person, including any
beneficial owner, to whom a copy of this Prospectus is delivered, upon the
written or oral request of such person, a copy of any or all of the documents
incorporated herein by reference (not including the exhibits to such documents,
unless such exhibits are specifically incorporated by reference in such
documents). Requests for such copies should be directed to Financial Services,
TRW Inc., 1900 Richmond Road, Cleveland, Ohio 44124, telephone (216) 291-7654.
The following documents filed by the Company with the Commission (File
No. 1-2384) are hereby incorporated by reference in this Prospectus:
1. Annual Report on Form 10-K for the year ended December 31,
1997; and
2. The description of the Common Stock (and related preference
stock purchase rights) contained in Exhibit 4(a) to the Company's Form
10-Q for the quarter ended March 31, 1996 and the Company's Form 8-A
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dated April 25, 1996, including any amendments and reports filed for
the purpose of updating those descriptions.
All documents filed by the Company pursuant to Section 13(a), 13(c), 14
or 15(d) of the Exchange Act after the date of this Prospectus and prior to the
termination of the offering of the Offered Securities shall be deemed to be
incorporated by reference into this Prospectus and to be a part hereof from the
date of filing of such documents.
Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Prospectus to the extent that a statement contained herein
or in any subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Prospectus.
THE COMPANY
TRW is an international company that provides advanced technology
products and services. The principal businesses of TRW and its subsidiaries are
the design, manufacture and sale of products and the performance of systems
engineering, research and technical services for industry and the United States
Government in two industry segments: Automotive and Space, Defense &
Information Systems. TRW's principal products and services include automotive
systems and components; spacecraft; software and systems engineering support
services; and electronic systems, equipment and services. TRW was incorporated
under the laws of Ohio on June 17, 1916.
The principal executive offices of the Company are located at 1900
Richmond Road, Cleveland, Ohio 44124, and the telephone number is (216)
291-7000.
AUTOMOTIVE
TRW's Automotive segment designs, manufactures and sells a broad range
of steering, suspension, engine, safety, engineered fastening, electronic,
electromechanical and other components and systems for passenger cars and
commercial vehicles, including trucks, buses, farm machinery and off-highway
vehicles. These products include occupant safety systems such as seat belt
systems and inflatable restraint systems, sensors, steering wheels, manual and
power steering gears, engine valves and valve train components, suspension
components, electronic monitoring and control systems, electromechanical
assemblies, fasteners, stud welding systems and other components.
The products included in this industry segment are sold primarily to
automotive original equipment manufacturers. In addition, TRW sells its
automotive components for use as aftermarket parts to automotive original
equipment manufacturers and others for resale through their own independent
distribution networks.
SPACE, DEFENSE & INFORMATION SYSTEMS
TRW's Space, Defense & Information Systems segment includes spacecraft,
software and systems engineering and integrating support services and electronic
systems, equipment and services.
The Company's spacecraft activities include the design and manufacture
of spacecraft equipment, propulsion subsystems, electro-optical and instrument
systems, spacecraft payloads, high-energy lasers and laser technology and other
high-reliability components. TRW's software and systems engineering and
integration support services are in the fields of command and control, security
for defense and nondefense applications, modeling and simulation, training,
telecommunications, counterterrorism, undersea surveillance, antisubmarine
warfare and other high technology space and defense mission support systems,
management of radioactive waste, automated fingerprint matching, upgrading of
the nation's air traffic control program and other civilian applications. The
Company's electronic systems, equipment and services include the design and
manufacture of communications systems, avionics systems, commercial
telecommunications and other electronic technologies for space, defense and
selected commercial applications. The Company's information technology systems,
products and services are in the areas of defense, health and human safety
3
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and welfare, integrated supply chain, warehousing, logistics, criminal justice,
tax systems modernization and financial reporting applications for government
and commercial customers.
Products and services in this industry segment are sold and distributed
principally to the United States Government, agencies of the United States
Government, state, local and foreign governments and government agencies and
commercial customers. TRW's spacecraft business involves the sale to the United
States Government of subsystems and components for space propulsion and unmanned
spacecraft for defense, scientific research and communications purposes. TRW is
currently participating in a number of spacecraft programs. Software and systems
engineering and integration support services are sold primarily to the United
States Government defense agencies and to Federal civilian and other state and
local governmental agencies. These services include a wide variety of computer
software systems and analytical services for space and defense, air traffic
control, and advanced communication and data retrieval applications. Sales to
the United States Government of electronic systems, equipment and services
consist of systems and subsystems for defense and space applications, including
communications, command and control, guidance, navigation, electric power,
sensing and electronic display equipment. Information technology systems,
products and services are sold primarily to the United States Government,
agencies of the United States Government, state, local and foreign governments
and government agencies and commercial customers. While classified projects are
not discussed herein the operating results relating to classified projects are
included in the Company's consolidated financial statements, and the business
risks associated with such projects do not differ materially from those of other
projects for the United States Government.
TRW also performs diverse testing and general research projects in many
of the technical disciplines related to its space, defense and information
systems products and services under both private and United States Government
contracts, including several advanced defense system projects.
USE OF PROCEEDS
Except as otherwise set forth in the applicable Prospectus Supplement,
the Company anticipates that some or all of the net proceeds from the sale of
the Offered Securities may be used by the Company, together with internally
generated funds and possible future borrowings, for capital expenditures,
possible future acquisitions, repayment or refinancing of the Company's
indebtedness, future repurchases by the Company of its Common Stock, increased
working capital requirements and other corporate purposes.
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RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
The following table shows the ratio of earnings to fixed charges of the
Company and its subsidiaries. For purposes of this ratio, "earnings" consist of
earnings from continuing operations before income taxes adjusted for minority
interests in earnings of consolidated subsidiaries, plus fixed charges, less
undistributed earnings of affiliates less than fifty percent of which are owned
by the Company. "Fixed charges" consist of interest on borrowed funds,
amortization of debt discount and expense and one-third of rental expense which
is representative of the interest factor.
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YEARS ENDED DECEMBER 31,
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1997 1996 1995 1994 1993
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Ratio of earnings to
fixed charges 2.9x(1) 3.4x(2) 5.4x 3.9x 2.5x
<FN>
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(1) The 1997 earnings from continuing operations before income taxes of $239.7
million includes a $548 million earnings charge for purchased in-process
research and development related to the acquisition of BDM International, Inc.
Excluding this charge, the ratio of earnings to fixed charges would have been
7.2x.
(2) The 1996 earnings from continuing operations before income taxes of $302.2
million includes a charge of $384.8 million as a result of actions taken in the
automotive and space and defense businesses. Excluding this charge, the ratio of
earnings to fixed charges would have been 7.1x.
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DESCRIPTION OF DEBT SECURITIES
The Debt Securities are to be issued in one or more series under an
indenture dated as of May 1, 1986, as supplemented (the "Indenture"), between
the Company and The Chase Manhattan Bank (National Association), as successor
trustee (the "Trustee") to Mellon Bank, N.A. The following summaries of certain
provisions of the Indenture do not purport to be complete and are subject to,
and are qualified in their entirety by reference to, all the provisions of the
Indenture.
GENERAL
The Indenture does not limit the amount of Debt Securities which can be
issued and provides that Debt Securities may be issued up to the aggregate
principal that may be authorized from time to time by the Company. Reference is
made to the Prospectus Supplement for the following terms of Debt Securities
offered hereby ("Offered Debt Securities"): (i) the specific designation,
aggregate principal amount and authorized denominations of the Offered Debt
Securities; (ii) the percentage of the principal amount at which such Offered
Debt Securities will be issued; (iii) the date on which the Offered Debt
Securities will mature; (iv) the rate per annum (which may be fixed or
floating), if any, at which the Offered Debt Securities will bear interest or
the method of determining such rate; (v) the times at which any such interest
will be payable and the record dates with respect thereto; (vi) any sinking fund
or redemption terms; (vii) any right of the holders to require the Company to
repurchase the Offered Debt Securities; (viii) the currency or currencies in
which the purchase price for, the principal of and any premium and any interest
on the Offered Debt Securities may be payable; (ix) if the currency in which the
purchase price for, the principal of and any premium and any interest on the
Offered Debt Securities may be payable is at the purchaser's election, the
manner in which such an election may be made; (x) any securities exchange on
which the Offered Debt Securities will be listed; (xi) whether the Debt
Securities are to be issued in the form of one or more global securities
representing such Debt Securities (each, a "Global Security") and, if so, the
identity of a depository (the "Depository") for such Global Securities; and
(xii) any other specific terms. In the case of Offered Debt Securities that are
registered, principal, any premium, and any interest on the Offered Debt
Securities may be paid at the option of the Company by check mailed to the
address of the person entitled thereto as it appears in the register for the
Offered Debt Securities. Interest payments will be subject to applicable
withholding taxes.
The Debt Securities will be unsecured and will rank on a parity in
right of payment with all other unsecured and unsubordinated indebtedness of the
Company.
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No service charge will be made for any transfer or exchange of the Debt
Securities, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith (Section 3.05
of the Indenture).
Debt Securities of a series may be issuable in the form of one or more
Global Securities, which will be denominated in an amount equal to the aggregate
principal amount of such Debt Securities. See "Global Securities" below.
The Debt Securities may be issued as discounted Debt Securities
(bearing no interest or interest at a rate that at the time of issuance is below
market rates) to be sold at a substantial discount below the stated principal
amount. Federal income tax consequences and other special considerations
applicable to any such discounted Debt Securities will be described in the
Prospectus Supplement relating thereto.
GLOBAL SECURITIES
The Debt Securities of a series may be issued in whole or in part in
the form of one or more Global Securities that will be deposited with, or on
behalf of, the Depository identified in the Prospectus Supplement relating to
such series. Unless and until it is exchanged in whole or in part for Debt
Securities in definitive form, a Global Security may not be transferred except
as a whole by or to the Depository for such Global Security or its successor, or
any nominee of such Depository or successor Depository (Section 2.04 of the
Indenture).
The specific terms of the depository arrangement with respect to any
series of Debt Securities and the rights of and limitations on owners of
beneficial interests in Global Securities representing Debt Securities will be
described in the Prospectus Supplement relating to such Debt Securities.
LIMITATION ON LIENS
The Indenture provides that, so long as any of the Debt Securities
remain outstanding, the Company will not, nor will it permit any Domestic
Subsidiary (as defined) to, create or assume any mortgage, security interest,
pledge or lien ("mortgage") upon any Principal Property (as defined) or upon any
shares of capital stock or indebtedness of any Domestic Subsidiary if such
mortgage secures or is intended to secure, directly or indirectly, the payment
of any indebtedness for borrowed money evidenced by notes, bonds, debentures or
other similar evidences of indebtedness ("Debt") without providing that the Debt
Securities shall be secured equally and ratably by such mortgage. This
restriction does not apply to (i) mortgages on any Principal Property existing
at the time of the acquisition thereof or securing the purchase price thereof or
securing the cost of construction of or improvement on a Principal Property that
are created or assumed contemporaneously with, or within 120 days after, such
acquisition or completion of such construction or improvement; (ii) mortgages on
property of a corporation existing at the time such corporation becomes a
Domestic Subsidiary or is merged or consolidated with the Company or a Domestic
Subsidiary or existing at the time of a sale, lease or other disposition of the
properties of such corporation (or a division thereof) or other Person (as
defined) as an entirety or substantially as an entirety to the Company or a
Domestic Subsidiary; (iii) mortgages securing indebtedness of the Company or a
Domestic Subsidiary to the Company or a Wholly Owned Domestic Subsidiary (as
defined); (iv) mortgages in favor of the United States or any State or Territory
or Possession thereof, or any foreign country, or any department, agency,
instrumentality or political subdivision of any of such domestic or foreign
jurisdictions, to secure partial, progress, advance or other payments pursuant
to any contract or statute or to secure any debt incurred for the purpose of
financing all or part of the purchase price or the cost of constructing the
property subject to such mortgages; and (v) mortgages representing the
extension, renewal or replacement (or successive extensions, renewals or
replacements) of mortgages referred to in the foregoing clauses (i) through (iv)
(Section 5.05 of the Indenture). "Principal Property" is defined in the
Indenture as each manufacturing plant, engineering facility or research facility
owned or leased by the Company or a Domestic Subsidiary other than any such
plant or facility or portion thereof which the Directors reasonably determine
not to be of material importance to the Company and its Subsidiaries (as
defined) taken as a whole (Section 1.01 of the Indenture). See also "--Exempted
Indebtedness" below.
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LIMITATION ON SALE AND LEASEBACK
Sale and leaseback transactions by the Company or any Domestic
Subsidiary (except for transactions involving temporary leases for a term of
three years or less and except for transactions among themselves) involving any
Principal Property are prohibited unless the sale is for an amount at least
equal to its fair value and either (a) the Company or such Domestic Subsidiary
would be entitled, pursuant to clauses (i) through (v) of the foregoing
Limitation on Liens covenant, to create Debt secured by a mortgage on the
Principal Property to be leased in an amount equal to the Attributable Debt (as
defined) with respect to such transaction without equally and ratably securing
the Debt Securities, or (b) the Company, within 120 days, applies an amount
equal to the net proceeds of the sale to the redemption of the securities issued
under the Indenture ("Indenture Securities") or other Consolidated Funded Debt
(as defined) of the Company ranking prior to or on a parity with the Indenture
Securities (or, in lieu of such redemption, delivers Indenture Securities to the
Trustee for cancellation) (Section 5.06 of the Indenture). "Attributable Debt"
is defined in the Indenture to mean, as to any particular lease under which any
Person (as defined) is liable, the lesser of (x) the fair value of the property
subject to such lease (as determined by the Directors of the Company) or (y) the
total net amount of rent required to be paid by such Person under such lease
during the remaining term thereof, discounted from the respective due dates
thereof to such date at the actual interest factor included in such rent. The
net amount of rent required to be paid under any such lease for any such period
shall be the aggregate amount of the rent payable by the lessee with respect to
such period after excluding amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and similar
charges. In the case of any lease which is terminable by the lessee upon the
payment of a penalty, such net amount shall also include the amount of such
penalty, but no rent shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated (Section 1.01 of
the Indenture). "Consolidated Funded Debt" is defined in the Indenture as all
indebtedness for borrowed money of the Company and its consolidated subsidiaries
having a maturity of more than 12 months from, or being renewable or extendable
beyond 12 months from, the date of incurrence. See also "Exempted Indebtedness".
EXEMPTED INDEBTEDNESS
Notwithstanding the limitations on mortgages and sale and leaseback
transactions outlined above, the Company or any Domestic Subsidiary is permitted
to create or assume mortgages or to enter into sale and leaseback transactions,
provided that at the time of such event, and after giving effect thereto, the
sum of (i) outstanding indebtedness incurred after the date of the Indenture and
secured by a mortgage, security interest or lien (other than certain permitted
mortgages) plus (ii) the Attributable Debt in respect of sale and leaseback
transactions entered into after the date of the Indenture (other than certain
permitted sale and leaseback transactions) will not exceed 15% of the
Consolidated Net Tangible Assets (as defined) of the Company (Sections 1.01,
5.05(b) and 5.06(b) of the Indenture).
Other than the restrictions on liens and sale and leaseback
transactions described above or as may be set forth in the Prospectus Supplement
with respect to any series of Debt Securities, the Indenture does not contain
and the Debt Securities will not contain any covenants or other provisions
designed to afford holders of the Debt Securities protection in the event of a
highly leveraged transaction involving the Company.
EVENTS OF DEFAULT
The Indenture defines an Event of Default with respect to any series of
Debt Securities as being any one of the following events, unless it is
inapplicable, and such other events as may be established for the Debt
Securities of a particular series: (a) failure of the Company for 60 days to pay
interest on any Debt Securities of such series; (b) failure of the Company to
pay principal or premium, if any, when due with respect to any Debt Securities
of such series; (c) failure of the Company for 10 days to satisfy any sinking
fund obligation with respect to any Debt Securities of such series; (d) failure
of the Company for 75 days after appropriate notice to perform any other
covenant or agreement in the Indenture applicable to such series; or (e) certain
events of bankruptcy, insolvency or reorganization. No Event of Default with
respect to a particular series of Debt Securities issued under the Indenture
necessarily constitutes an Event of Default with respect to any other series of
Indenture Securities. In case an Event of Default shall occur and be continuing
with respect to any series of Debt Securities, the Trustee or the holders of not
less than 25% in aggregate principal amount of the Debt Securities of such
series then outstanding may declare the principal of such series (or a portion
of the principal amount in the case of certain discounted Debt Securities) to be
due and payable (Section 7.01 of the Indenture). Any Event of Default with
respect to a particular series of Debt Securities, except in each case a failure
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with respect to such Debt Security to pay principal, premium, if any, or
interest, if any, or any sinking fund installment, if any, may be waived by the
holders of a majority in aggregate principal amount of the outstanding Debt
Securities of such series (Section 7.06 of the Indenture).
The Indenture requires the Company to file annually with the Trustee an
Officers' Certificate (as defined) as to the existence of defaults in
performance of certain covenants in the Indenture (Section 5.08 of the
Indenture). The Indenture provides that the Trustee may withhold notice to the
holders of the Debt Securities of a particular series of any default (except in
payment of principal, premium, if any, or interest, if any, or in the making of
any sinking fund payment, if any) with respect to such series of Debt Securities
if the Trustee determines in good faith that the withholding of notice is in the
interest of the holders of such Debt Securities (Section 7.07 of the Indenture).
The holders of a majority in aggregate principal amount of all
outstanding Indenture Securities will have the right, subject to certain
limitations, to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on the Trustee (Section 7.06 of the Indenture). The Indenture provides
that in case an Event of Default shall occur (which shall not have been cured or
waived), the Trustee will be required to exercise such of its rights and powers
under the Indenture and to use the degree of care and skill in their exercise
that a prudent man would exercise or use in the conduct of his own affairs
(Section 8.01 of the Indenture). Subject to the provisions of Section 8.01, the
Trustee will be under no obligation to exercise any of its rights or powers
under the Indenture at the request of any of the holders of the Debt Securities,
unless they shall have offered to the Trustee reasonable security or indemnity
(Section 8.02 of the Indenture).
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
The Indenture provides that the Company may consolidate with, or sell
or convey all or substantially all of its assets to, or merge into, any other
entity, if (i) the corporation formed by such consolidation or into which the
Company is merged, or the entity which acquired all or substantially all of the
Company's assets shall be organized and existing under the laws of the United
States of America or any state thereof and the resulting entity expressly
assumes the due and punctual payment of the principal of (and premium, if any)
and interest on the Debt Securities according to their tenor and the due and
punctual performance and observance of all of the covenants and conditions of
the Indenture to be performed, observed or satisfied by the Company and (ii)
immediately after such merger or consolidation, or such sale or conveyance, no
Event of Default shall have occurred or be continuing and such successor entity
shall not immediately thereafter have outstanding any secured indebtedness not
permitted by Section 5.05 of the Indenture (see "--Limitation on Liens" above)
unless such entity secures the Debt Securities in accordance with Section 12.03
of the Indenture (Section 12.01 of the Indenture).
DEFEASANCE
The Indenture provides that the Company, at its option, either (a) will
be discharged from any and all obligations with respect to any series of Debt
Securities (except for certain obligations to register the transfer or exchange
of the Debt Securities, replace stolen, lost or mutilated Debt Securities,
maintain paying agencies and hold moneys for payment in trust) or (b) need not
comply with certain restrictive covenants of the Indenture (as described under
"Limitation on Liens" and "Limitation on Sale and Leaseback") with respect to
any series of Debt Securities, upon the deposit with the Trustee (or, in the
case of a discharge of obligations, 91 days after such deposit), in trust, of
money or the equivalent in securities of the government that issued the currency
in which the Debt Securities are denominated or government agencies backed by
the full faith and credit of such government, or a combination thereof, which
through the payment of interest thereon and principal thereof in accordance with
their terms will provide money in an amount sufficient to pay all the principal
(including any mandatory sinking fund payments) of, and interest on, and any
repurchase obligations with respect to, such series of Debt Securities on the
dates such payments are due in accordance with the terms of the Debt Securities.
To exercise any such option, no Event of Default, or event which with notice or
lapse of time would become an Event of Default, with respect to such series of
Debt Securities shall have occurred and be continuing. The Company is required
to deliver to the Trustee an opinion of counsel to the effect that the deposit
and related defeasance would not cause the holders of the Debt Securities to
recognize income, gain or loss for United States federal income tax purposes
and, in the case of a discharge of obligations, accompanied by a ruling to such
effect received from or published by the Internal Revenue Service (Section 13.02
of the Indenture).
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MODIFICATION OF THE INDENTURE
With certain exceptions, the Indenture, the rights and obligations of
the Company and the rights of the holders of the Debt Securities may be modified
by the Company with the consent of the holders of not less than 66 2/3% in
aggregate principal amount of the outstanding Indenture Securities of each
series to be affected; but, without the consent of the holders of all
outstanding Debt Securities affected thereby, no such modifications may be made
which would among other things (i) change the maturity of any Debt Security or
reduce the principal amount thereof or any premium thereon, or reduce the rate
or extend the time of payment of interest thereon, or change the method of
computing the amount of principal thereof on any date or (ii) reduce the
above-stated percentage of outstanding Indenture Securities, the consent of the
holders of which is required to modify or alter the Indenture. A supplemental
indenture which changes or eliminates any covenant or other provision of the
Indenture which has expressly been included solely for the benefit of one or
more particular series of Debt Securities, or which modifies the rights of the
holders of Debt Securities of such series with respect to such covenant or other
provision, shall be deemed not to affect the rights under the Indenture of the
holders of securities of any other series (Section 11.02 of the Indenture).
CONCERNING THE TRUSTEE
The Trustee acts as trustee under other indentures and trust agreements
to which the Company is a party under which approximately $973,530,000 aggregate
principal amount of debentures and notes were outstanding as of February 28,
1998. The Trustee is also a depository for funds of the Company and performs
other services and provides credit facilities for the Company and its
subsidiaries in the ordinary course of business.
DESCRIPTION OF CAPITAL STOCK
The authorized capital stock of the Company consists of (i) 500,000,000
shares of Common Stock, (ii) 5,000,000 shares of Serial Preference Stock II,
without par value (the "Serial Preference Stock II"), and (iii) 99,536 shares of
Serial Preference Stock, without par value (the "Serial Preference Stock" and,
together with the Serial Preference Stock II, the "Preference Stock"). The
following summary description of the capital stock of the Company is qualified
in its entirety by reference to the Amended Articles of Incorporation of the
Company, the Regulations of the Company and the Rights Agreement, dated as of
April 24, 1996 (the "Rights Agreement"), between the Company and National City
Bank, as Rights Agent (the "Rights Agent"), a copy of each of which has been
filed as an exhibit to the Registration Statement of which this Prospectus forms
a part.
COMMON STOCK
As of February 27, 1998, there were 133,431,355 shares of Common Stock
issued, 10,743,854 shares held in treasury and 122,687,501 shares outstanding
and held of record by 25,390 shareholders. All outstanding shares of Common
Stock are duly authorized, validly issued, fully paid and nonassessable. The
Common Stock is subject to the express terms of the Preference Stock and any
series thereof. Each share of Common Stock is entitled to one vote per share on
the election of directors and upon all other matters on which shareholders are
entitled to vote. The holders of Common Stock are not entitled to cumulative
voting rights, except if requested by such holders pursuant to Ohio law. Holders
of Common Stock are entitled to receive dividends and other distributions when,
as and if declared from time to time by the Board of Directors of the Company
out of funds legally available for such purposes subject to any preferential
rights of, and sinking fund or redemption or purchase rights with respect to,
outstanding shares of Preference Stock, if any. Dividends may not be paid to
holders of Common Stock if the dividends fixed with respect to the Preference
Stock have not been paid or provided for. In the event of a voluntary or
involuntary liquidation, dissolution or winding up of the Company, the holders
of shares of Common Stock would be entitled to share ratably in all assets
remaining after payment of liabilities subject to prior distribution rights and
payment of any distributions owing to holders of shares of Preference Stock then
outstanding, if any. Holders of the shares of Common Stock have no preemptive or
conversion rights, and the shares of Common Stock are not subject to further
calls or assessment by the Company. There are no redemption or sinking fund
provisions applicable to the shares of Common Stock. The Common Stock is traded
on the New York, Chicago and Philadelphia Stock Exchanges and on the Pacific
Exchange, as well as on the Frankfurt and London Stock Exchanges.
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PREFERENCE STOCK
The Board of Directors has the authority, without further action by the
shareholders, to issue Preference Stock in one or more series and to fix the
rights, designations, preferences, privileges, qualifications and restrictions
thereof, including dividend rights, conversion rights, terms and rights of
redemption, liquidation preferences and sinking fund terms (any or all of which
may be greater than the rights of the Common Stock). Shares of Preference Stock
rank, as to dividend and liquidation rights, senior to Common Stock and on a
parity with each other. Dividends on Preference Stock are cumulative from the
date of issuance or from such other date or dates as may be fixed for the series
by the Board of Directors. The Board of Directors, without action of the
shareholders, can issue shares of Preference Stock with conversion, voting and
other rights that could adversely affect the rights of the holders of shares of
Common Stock.
As of February 27, 1998, there are no shares of Serial Preference Stock
outstanding. The holders of Serial Preference Stock are entitled to receive $100
per share in the event of any involuntary liquidation, dissolution or winding up
of the affairs of the Company. As of February 27, 1998, there are two series of
Serial Preference Stock II outstanding: Cumulative Preference Stock II, $4.40
Convertible Series 1 ("Series 1"), and Cumulative Serial Preference Stock II,
$4.50 Convertible Series 3 ("Series 3"). As of February 27, 1998, the Company
had 1,735,000 authorized shares of Series 1, of which 43,786 shares were
outstanding, and 2,120,000 authorized shares of Series 3, of which 73,403 shares
were outstanding. In addition, there are authorized, but not outstanding,
1,145,000 shares of Cumulative Redeemable Serial Preference Stock II, Series 4
("Series 4"). The fixed annual dividend rates are $4.40 per share for Series 1
and $4.50 per share for Series 3, and in the event of liquidation, dissolution
or winding up of the affairs of the Company, the holders of outstanding shares
of Series 1 and Series 3 are entitled to receive $104 and $40 per share,
respectively, in case of any involuntary liquidation, dissolution or winding up
of the affairs of the Company and an amount equal to the redemption price in
effect on the distribution date in case of any voluntary liquidation,
dissolution or winding up of the affairs of the Company. The quarterly dividend
rate fixed for each share of Series 4 is the lesser of $100 or 100 times the
aggregate per share dividend amounts declared on a share of Common Stock since
the immediately preceding quarterly dividend payment date. In the event of any
liquidation, dissolution or winding up of the affairs of the Company, the
holders of outstanding shares of Series 4 are entitled to receive an amount per
share at least equal to the redemption price in effect on the Distribution Date
(as defined below).
Each share of Serial Preference Stock II is entitled to one vote, and
the holders of Serial Preference Stock are entitled to two votes per share.
Holders of Common Stock, Serial Preference Stock II and Serial Preference Stock
vote together as one class on all matters, except following certain defaults in
the payment of dividends on the Preference Stock, or with respect to certain
transactions or amendments to the Company's Articles of Incorporation, which
require holders of Serial Preference Stock II and Serial Preference Stock
to vote separately as two classes.
Shares of Series 1 are convertible into Common Stock at the option of
the holders at any time prior to redemption at the rate of 8.8 shares (as
adjusted) of Common Stock for each share of Series 1, and outstanding shares of
Series 3 are convertible into Common Stock at the option of the holders at any
time prior to redemption at the rate of 7.448 shares (as adjusted) of Common
Stock for each share of Series 3, in each case subject to adjustment to reflect
stock splits, stock dividends, combinations and certain issuances of securities
and distributions. Shares of Series 4 are not convertible into shares of Common
Stock. Shares of Series 1 and Series 3 are redeemable at a price of $104 and
$100 per share, respectively. Shares of Series 4 are redeemable at a price of
$30,000 per share, subject to adjustment from time to time pursuant to the
Rights Agreement, which sets forth the terms of the shareholder purchase rights
plan adopted by the Board of Directors.
PREFERENCE STOCK PURCHASE RIGHTS
Under the Rights Agreement, each outstanding share of Common Stock is
accompanied by one-half of a preference share purchase right (each, a "Right").
Except as described below, each Right entitles the registered holder to purchase
from the Company one one-hundredth of a share of Series 4 at a purchase price of
$300 per one one-hundredth of a share of Series 4 (the "Purchase Price"),
subject to adjustment. The description and terms of the Rights are set forth in
the Rights Agreement.
Until the earlier to occur of (i) the close of business on the tenth
business day following a public announcement that a person or group of
affiliated or associated persons (an "Acquiring Person") has acquired, or
obtained the right to
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acquire, beneficial ownership of 20% or more of the outstanding shares of
capital stock of the Company that may be voted on all matters submitted to
shareholders of the Company generally (the "Voting Shares"); provided, however,
the Company, any subsidiary of the Company, any employee benefit or stock
ownership plan of the Company, any person who acquires Voting Shares from the
Company in transactions approved by the Board of Directors, any person who
becomes the beneficial owner of 20% or more of the outstanding Voting Shares as
a result of an acquisition of Voting Shares by the Company (so long as that
person does not afterwards acquire additional Voting Shares) and any person whom
the Board of Directors determines has inadvertently become an Acquiring Person
and who promptly divests sufficient Voting Shares so as no longer to be an
Acquiring Person are excluded from the definition of Acquiring Person, (ii) the
close of business on the tenth business day (or such later date as may be
specified by a majority of the Board of Directors) following the commencement of
a tender offer or exchange offer by a person or group of affiliated or
associated persons, the consummation of which would result in beneficial
ownership by such person of 20% or more of such outstanding Voting Shares, or
(iii) the close of business on the tenth business day after the first occurrence
of certain events described below that would result in the Rights becoming
exercisable to purchase shares of Common Stock or common stock of another person
(the earliest of such dates being hereinafter called the "Distribution Date"),
the Rights will be evidenced, with respect to any of the Common Stock
certificates outstanding as of May 17, 1996, and certain subsequently issued
shares of Common Stock, by such Common Stock certificates. The Rights Agreement
provides that, until the Distribution Date, the Rights will be transferred with
and only with the Common Stock. Until the Distribution Date (or earlier
redemption or expiration of the Rights), the surrender for transfer of any
certificates for shares of Common Stock outstanding as of May 17, 1996 will also
constitute the transfer of the Rights associated with the shares of Common Stock
represented by such certificates.
No Right is exercisable at any time prior to the Distribution Date. The
Rights will expire on April 24, 2006 (the "Final Expiration Date") unless
earlier redeemed by the Company as described below. Until a Right is exercised,
the holder thereof, as such, will have no rights as a shareholder of the
Company, including, without limitation, the right to vote or to receive
dividends. Upon the occurrence of certain events described below, the Rights
will become exercisable to purchase shares of Common Stock or common stock of
another person in lieu of shares of Series 4.
In the event that (i) an Acquiring Person merges into or combines with
the Company where the Company is the surviving corporation or engages in certain
other self-dealing transactions, (ii) during such time as there is an Acquiring
Person, there is a reclassification of securities or other transaction that
increases by more than one percent the amount of Company securities owned by the
Acquiring Person, (iii) any person, together with all affiliated or associated
persons, becomes an Acquiring Person, or (iv) (a) (1) any person is determined
by the Board of Directors to have become, or to have announced an intention to
become, the owner of an amount of Voting Shares that the Board of Directors
determines is substantial (which amount is not less than 5% of the outstanding
Voting Shares) and (2) the Board of Directors determines that such ownership is
causing or may reasonably be anticipated to cause a material adverse effect on
the Company's government contracting business (such person being an "Adverse
Person") or (b) as to any specific person, the Board of Directors has
established a specific percentage of Voting Shares (which percentage is not less
than 5% or less than the ownership level of Voting Shares that such person has
publicly announced it owns) that, if owned by such person, will result in such
person being declared an Adverse Person in accordance with the criteria set
forth above and such person becomes an Adverse Person (each event described in
(i) - (iv) above being a "Flip-in Event"), proper provision shall be made so
that each holder of a Right, other than Rights that are or were owned
beneficially by such person on or after the date upon which such person became
an Acquiring Person or an Adverse Person (which thereafter will be void), will
thereafter have the right to receive, upon exercise thereof at the then current
exercise price of the Right, that number of shares of Common Stock (or, in
certain circumstances, cash, property or other securities of the Company or any
combination thereof) having a market value of two times the exercise price of
the Right.
In the event that after any person has become an Acquiring Person (i)
the Company merges with or into any person and the Company is not the surviving
corporation, (ii) any person merges with or into the Company and the Company is
the surviving corporation, but its Common Stock is changed or exchanged or (iii)
50% or more of the Company's assets or earning power, including, without
limitation, securities creating obligations of the Company, are sold to any
person (each event described in (i) - (iii) above being a "Flip-over Event"),
proper provision shall be made so that each holder of a Right (other than Rights
held by an Acquiring Person or an Adverse Person) will thereafter have the right
to receive, upon exercise thereof at the then current Purchase Price, that
number of shares of common stock
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(or, under certain circumstances, an economically equivalent security or
securities) of such other person that at the time of such transaction would have
a market value of two times the exercise price of the Right.
The Purchase Price payable, and the number of shares of Series 4 or
other securities or property issuable upon exercise of the Rights are subject to
adjustment from time to time to prevent dilution. With certain exceptions, no
adjustment in the Purchase Price will be required until cumulative adjustments
require an adjustment in the Purchase Price of at least one percent. No
fractional shares of Series 4 will be issued (other than fractions that are
integral multiples of one one-hundredth of a share of Series 4), and in lieu
thereof, a payment in cash may be made based on the market price of the shares
of Series 4 on the last trading day prior to the date of exercise.
The Company may redeem the Rights in whole, but not in part, at a price
of $.01 per Right, subject to adjustment (the "Redemption Price") at any time
prior to the earlier of (i) the close of business on the tenth business day
after the first occurrence of a Flip-in Event or a Flip-over Event or (ii) April
24, 2006; provided, however, that the Board of Directors may not redeem the
Rights after they declare a person to be an Adverse Person. Immediately upon the
effective date of the action of the Board of Directors electing to redeem the
Rights, the right to exercise the Rights will terminate and the only right of
holders of Rights will be to receive the Redemption Price. The Company will give
notice of any redemption to the holders of the then outstanding Rights by
mailing notice to all such holders at their last addresses as they appear on the
registry books of the Rights Agent.
At any time after the occurrence of a Flip-in Event or a Flip-over
Event, but before any person or group of affiliated or associated persons
becomes the beneficial owner of 50% or more of the then outstanding shares of
Common Stock, the Company may exchange all or part of the then outstanding and
exercisable Rights for shares of Common Stock at an exchange ratio of one share
of Common Stock per Right, as adjusted. Immediately upon the action of the Board
of Directors ordering the exchange of any Rights, the right to exercise those
Rights shall terminate and the only right thereafter of a holder of those Rights
will be to receive the appropriate number of shares of Common Stock in exchange.
The Company will give notice of any exchange by public announcement and by
mailing notice of the exchange to all the holders of the affected Rights at
their last addresses as they appear on the registry books of the Rights Agent.
The Company may amend the Rights Agreement without the approval of any
holders of Rights in order to cure any ambiguity, to correct or supplement any
defective or inconsistent provision, or to make any other provisions with
respect to the Rights as the Company may deem necessary or desirable; provided,
however, that from and after the earlier of (i) the Distribution Date or (ii)
the date on which the Board of Directors declare any person to be an Adverse
Person (the "Final Amendment Date"), the Rights Agreement may not be amended in
any manner that would adversely affect the interests of the holders of Rights.
Without limiting the foregoing, the Company may at any time prior to the Final
Amendment Date amend the Rights Agreement to lower the ownership thresholds
governing when a beneficial owner becomes an Acquiring Person and when the
Distribution Date occurs to not less than the greater of (a) the sum of .001%
and the largest percentage of outstanding shares of Common Stock then
beneficially owned by any person (other than the Company, any subsidiary of the
Company, any employee benefit plan or stock ownership plan of the Company or any
person who acquires Voting Shares from the Company in transactions approved by
the Board of Directors) or (b) 10%.
The Rights have certain anti-takeover effects. The Rights will cause
substantial dilution to a person or group that attempts to acquire the Company
on terms not approved by the Board of Directors. The Rights should not interfere
with any merger or other business combination approved by the Board of Directors
since the Board of Directors may, at their option, at any time until ten
business days following the first occurrence of a Flip-in Event or a Flip-over
Event, redeem all, but not less than all, of the then outstanding Rights at the
applicable Redemption Price.
This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.
OHIO LAW AND CERTAIN CHARTER PROVISIONS
Certain statutory provisions of Ohio law and the Company's Amended
Articles of Incorporation and Regulations may have the effect of deterring
hostile takeovers or delaying or preventing changes in control or changes
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in management of the Company, including transactions in which shareholders of
the Company might otherwise receive a premium over the then current market
prices for their shares.
The Company's Amended Articles of Incorporation and Regulations contain
various provisions that may have the effect, either alone or in combination with
each other, of making more difficult or discouraging a business combination or
an attempt to obtain control of the Company that is not approved by the Board of
Directors. These provisions include (i) the right of the Board of Directors to
issue unissued and unreserved shares of Common Stock without shareholder
approval; (ii) the right of the Board of Directors to issue shares of Preference
Stock in one or more series and to designate the number of shares of each such
series and the relative rights and preferences of such series, including voting
rights (to the extent now or hereafter permitted by law), terms of redemption,
redemption prices and conversion rights, without further shareholder approval;
(iii) a Board of Directors divided into three classes such that directors are
elected to serve for three-year staggered terms; (iv) provisions prohibiting the
removal of directors without cause except upon the vote of holders of two-thirds
of the combined voting power represented by the outstanding shares of Common
Stock, Serial Preference Stock and Serial Preference Stock II; and (v)
provisions restricting the ability of shareholders to call a special meeting
except upon the consent of shareholders representing 35% of the outstanding
shares entitled to vote at such meeting.
Under Ohio law, any person who proposes to make a "control share
acquisition" must provide written notice thereof to the target corporation and
must obtain prior shareholder approval. A "control share acquisition" is the
acquisition of shares in an "issuing public corporation" resulting in the person
being able to exercise voting power in the election of directors of the issuing
public corporation within three ranges: (i) one-fifth to one-third, (ii)
one-third to one-half and (iii) more than one-half of such voting power. The
Company is an "issuing public corporation."
Further, Ohio law prohibits any person who owns 10% or more of an
issuing public corporation's stock from engaging in mergers, consolidations,
majority share acquisitions, asset sales, loans and certain other transactions
with the corporation for a three-year period after acquiring the 10% ownership,
unless approval is first obtained from the corporation's board of directors.
After the three-year waiting period, the 10% shareholder can complete the
transaction only if, among other things: (i) approval is received from
two-thirds of all voting shares and from a majority of shares not held by the
10% shareholder or certain affiliated persons; or (ii) the transaction meets
certain criteria designed to ensure fairness to all remaining shareholders. The
Company is an issuing public corporation under this statute.
TRANSFER AGENTS AND REGISTRARS
The Transfer Agents for the Common Stock are the Company in Cleveland,
Ohio and National City Bank in Cleveland, Ohio; the Registrar is National City
Bank in Cleveland, Ohio. The Rights Agent is National City Bank in Cleveland,
Ohio.
AGREEMENTS
The Company is, and from time to time will become, a party to
agreements, some of which may have the effect of restricting dividends, except
stock dividends, and other distributions on, and the purchase, redemption or
retirement of, capital stock of the Company, unless the total amount involved in
such transactions does not exceed a specified amount plus the consolidated net
income of the Company (as defined in the applicable agreement), subject to
certain adjustments.
DESCRIPTION OF SECURITIES WARRANTS
The Company may issue Debt Warrants for the purchase of Debt Securities
or Common Stock Warrants for the purchase of Common Stock (Debt Warrants and
Common Stock Warrants being referred to herein collectively as "Securities
Warrants"). Securities Warrants may be issued independently or together with any
Debt Securities or Common Stock offered by any Prospectus Supplement and may be
attached to or separate from such Debt Securities or Common Stock. Each series
of Securities Warrants will be issued under a separate Warrant Agreement to be
entered into between the Company and a bank or trust company, as Warrant Agent
(the "Warrant Agent"), all as set forth in a Prospectus Supplement relating to
the particular issue of Securities Warrants. The Warrant Agent will act solely
as an
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agent of the Company in connection with warrant certificates evidencing the
Securities Warrants (the "Warrant Certificates") and will not assume any
obligation or relationship of agency or trust for or with any holders of Warrant
Certificates or beneficial owners of Securities Warrants. The following
summaries of certain provisions of the form of Warrant Agreements and Warrant
Certificates do not purport to be complete and are subject to, and are qualified
in their entirety by reference to, all the provisions of the Warrant Agreements
and the Warrant Certificates.
GENERAL
The Prospectus Supplement will describe the terms of the offered
Securities Warrants, including, where applicable, the following: (i) the
offering price; (ii) the currency or currency units in which the purchase price
for offered Securities Warrants may be payable; (iii) if applicable, the
designation, aggregate principal amount, currency or currency units and other
terms of Debt Securities purchasable upon exercise of the offered Debt
Warrants; (iv) the number of shares of Common Stock purchasable upon the
exercise of the offered Stock Warrant; (v) if applicable, the designation and
terms of the Debt Securities with which the offered Debt Warrants are issued
and the number of offered Debt Warrants issued with each such Debt Security;
(vi) if applicable, the date on and after which the offered Securities Warrants
and the related Debt Securities or shares of Common Stock will be separately
transferable; (vii) the price and currency or currency units at which the
amount of Debt Securities or shares of Common Stock, as the case may be, may be
purchased upon exercise; (viii) the date on which the right to exercise the
offered Securities Warrants shall commence and the date (the "Expiration Date")
on which such right shall expire; (ix) United States federal income tax
consequences applicable to such Securities Warrant; (x) whether the offered
Securities Warrants represented by the Warrant Certificates will be issued in
registered or bearer form; and (xi) any other terms of the offered Securities
Warrants.
Warrant Certificates may be exchanged for new Warrant Certificates of
different denominations, may (if in registered form) be presented for
registration of transfer and may be exercised at the corporate trust office of
the Warrant Agent or any other office indicated in an applicable Prospectus
Supplement. Prior to the exercise of any Securities Warrants to purchase Debt
Securities or Common Stock, holders of such Securities Warrants will not have
any of the rights of holders of the Debt Securities or Common Stock, as the case
may be, purchasable upon such exercise, including the right to receive payments
of principal of, premium, if any, or interest, if any, on the Debt Securities
purchasable upon such exercise or to enforce covenants in the Indenture, or to
receive payments of dividends, if any, on the Common Stock purchasable upon such
exercise or to exercise any applicable right to vote.
EXERCISE OF WARRANTS
Each Securities Warrant will entitle the holder to purchase such
principal amount of Debt Securities or such number of shares of Common Stock at
such exercise price as shall in each case be set forth in, or calculable from,
an applicable Prospectus Supplement relating to the Securities Warrants.
Securities Warrants may be exercised at any time up to 5:00 P.M. New York City
time on the Expiration Date set forth in an applicable Prospectus Supplement
relating to such Securities Warrants. After the close of business on the
Expiration Date (or such later date to which such Expiration Date may be
extended by the Company), unexercised Securities Warrants will become void.
Securities Warrants may be exercised by delivery to the Warrant Agent
of payment as provided in the Prospectus Supplement of the amount required to
purchase the Debt Securities or shares of Common Stock purchasable upon such
exercise together with certain information set forth on the reverse side of the
Warrant Certificate. Securities Warrants will be deemed to have been exercised
upon receipt of the exercise price by the Warrant Agent, subject to the receipt
of the Warrant Certificate evidencing such Securities Warrants within five
business days of the date of exercise. Upon receipt of such payment and the
Warrant Certificate properly completed and duly executed at the corporate trust
office of the Warrant Agent or any other office indicated in an applicable
Prospectus Supplement prior to the close of business on the Expiration Date, the
Company will, as soon as practicable, issue and deliver the Debt Securities or
shares of Common Stock issuable upon such exercise. If fewer than all of the
Securities Warrants represented by such Warrant Certificate are exercised, a new
Warrant Certificate will be issued for the remaining amount of Securities
Warrants.
14
<PAGE> 16
PLAN OF DISTRIBUTION
The Company may sell the Offered Securities in any one or more, or in
any combination, of the following ways: (i) directly to purchasers; (ii) through
agents; (iii) to dealers; or (iv) to underwriters. Agents or dealers may be
deemed to be "underwriters" within the meaning of the Securities Act.
Offers to purchase Offered Securities may be solicited directly by the
Company or by agents designated by the Company. Any such agent will be named,
and any commissions payable by the Company to such agent (or the method by which
such commissions can be determined) will be set forth, in the applicable
Prospectus Supplement.
If underwriters or dealers are used in a sale, the Offered Securities
will be acquired by the underwriters or dealers for their own account and may be
resold from time to time in one or more transactions, including negotiated
transactions, at a fixed public offering price, which may be changed, or at
varying prices determined at the time of sale. The Offered Securities may be
offered to the public either through underwriting syndicates represented by one
or more managing underwriters or directly by one or more of such firms. Unless
otherwise indicated in the applicable Prospectus Supplement, the obligations of
the underwriters to purchase such Offered Securities will be subject to certain
conditions precedent, and the underwriters will be obligated to purchase all of
such Offered Securities if any are purchased. Any initial public offering price
and any discounts or concessions allowed or reallowed or paid to dealers may be
changed from time to time.
Agents, dealers and underwriters may be entitled under agreements
between them and the Company to indemnification by the Company against certain
liabilities, including liabilities under the Securities Act, or to contribution
to payments which may be required to be made in respect thereof. Agents, dealers
or underwriters may engage in transactions with or perform services for the
Company in the ordinary course of business.
If so indicated in the applicable Prospectus Supplement, the Company
will authorize agents, underwriters or dealers to solicit offers by institutions
to purchase Offered Securities from the Company at the offering price set forth
in the Prospectus Supplement pursuant to Delayed Delivery Contracts
("Contracts") providing for payment and delivery on the date stated in the
applicable Prospectus Supplement. Institutions with whom Contracts, when
authorized, may be made include commercial and savings banks, insurance
companies, pension funds, investment companies, educational and charitable
institutions and other institutions but shall in all cases be subject to the
approval of the Company. Contracts will be subject to those conditions set forth
in the applicable Prospectus Supplement. A commission indicated in the
Prospectus Supplement will be paid to underwriters and agents soliciting
purchases of Offered Securities pursuant to Contracts accepted by the Company.
The underwriters and persons soliciting such Contracts will have no
responsibility for the validity or performance of any Contracts.
The place and time of delivery for the Offered Securities will be set
forth in the Prospectus Supplement.
LEGAL OPINIONS
The legality of the Offered Securities to be offered hereby will be
passed upon for the Company by William B. Lawrence, Esq., 1900 Richmond Road,
Cleveland, Ohio 44124, and for any underwriters or dealers by Cravath, Swaine &
Moore, Worldwide Plaza, 825 Eighth Avenue, New York, New York 10019. Mr.
Lawrence is Executive Vice President, General Counsel and Secretary of the
Company and is also a shareholder of the Company.
EXPERTS
The consolidated financial statements of TRW Inc. incorporated by
reference in the Company's Annual Report on Form 10-K for the year ended
December 31, 1997, have been audited by Ernst & Young LLP, independent auditors,
as set forth in their report thereon included therein and incorporated herein by
reference. Such consolidated financial statements are incorporated herein by
reference in reliance upon such report given upon the authority of such firm as
experts in accounting and auditing.
15
<PAGE> 17
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following is a list of the estimated expenses to be incurred by the
Company in connection with the issuance and distribution of the securities being
registered hereby, other than underwriting discounts and commissions.
<TABLE>
<S> <C>
Securities and Exchange Commission Registration Fee........................... $ 295,000
Rating Agencies Fees*......................................................... 225,000
Trustee's Fees and Expenses*.................................................. 15,000
Legal Fees and Expenses*...................................................... 50,000
Accounting' Fees and Expenses*................................................ 25,000
Printing Expenses*............................................................ 75,000
Miscellaneous*................................................................ 40,000
------------
Total................................................................ $ 725,000
============
<FN>
-------------------
* Estimated.
</FN>
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Generally, a director of an Ohio corporation will not be found to have
violated his fiduciary duties unless there is proof by clear and convincing
evidence that the director has not acted in good faith, in a manner he
reasonably believes to be in or not opposed to the best interests of the
corporation, or with the care that an ordinarily prudent person in a like
position would use under similar circumstances. In general, a director is liable
for monetary damages for any action or omission as a director only if it is
proved by clear and convincing evidence that such act or omission was undertaken
either with deliberate intent to cause injury to the corporation or with
reckless disregard for the best interests of the corporation.
Under Ohio law, a corporation must indemnify its directors, as well as
its officers, employees and agents, against expenses where any such person is
successful on the merits or otherwise in defense of an action, suit or
proceeding. A corporation may indemnify such persons in actions, suits and
proceedings (including derivative suits) if the individual has acted in good
faith and in a manner that he believes to be in or not opposed to the best
interests of the corporation. In the case of a criminal proceeding, the
individual must also have no reasonable cause to believe that his conduct was
unlawful. Indemnification may be made only if ordered by a court or if
authorized in a specific case upon a determination that the applicable standard
of conduct has been met. Such a determination may be made by a majority of
disinterested directors, by independent legal counsel or by the shareholders. In
order to obtain reimbursement for expenses in advance of the final disposition
of any action, the individual must provide an undertaking to repay the amount if
it is ultimately determined that he is not entitled to be indemnified.
In general, Ohio law requires that all expenses, including attorneys
fees, incurred by a director in defending any action, suit or proceeding be paid
by the corporation as they are incurred in advance of final disposition if the
director agrees to repay such amounts if it is proved by clear and convincing
evidence that his action or omission was undertaken with deliberate intent to
cause injury to the corporation or with reckless disregard for the best
interests of the corporation and if the director reasonably cooperates with the
corporation concerning the action, suit or proceeding. The Company's Regulations
provide for indemnification that is coextensive with that permitted under Ohio
law.
In addition, the Company maintains insurance indemnifying Directors and
officers in certain cases and with certain deductible limitations. Reference is
also made to the forms of Underwriting Agreements incorporated herein by
reference as Exhibits 1(a) and 1(b) to the Registration Statement for
provisions regarding indemnification of the Company, officers, directors and
controlling persons against certain liabilities.
II-1
<PAGE> 18
ITEM 16. EXHIBITS
1(a) Form of Underwriting Agreement (Common Stock).
1(b) Form of Underwriting Agreement (Debt Securities).
4(a) Amended Articles of Incorporation as amended May 5, 1997
(incorporated by reference to Exhibit 3(a) to TRW Inc.'s
Quarterly Report on Form 10-Q for the quarter ended March 31,
1997) (File No. 1-2384).
4(b) Regulations as amended April 30, 1980 (incorporated by
reference to Exhibit 3(b) to TRW Inc.'s Annual Report on Form
10-K for the year ended December 31, 1980) (File No. 1-2384).
4(c) Rights Agreement dated as of April 24, 1996 between TRW Inc.
and National City Bank, as Rights Agent (incorporated by
reference to Exhibit 1 to TRW Inc.'s Form 8-A Registration
Statement dated April 25, 1996) (File No. 1-2384).
4(d) Indenture between TRW Inc. and The Chase Manhattan Bank
(National Association), as successor Trustee, dated as of May
1, 1986 (incorporated by reference to Exhibit 2 to TRW Inc.'s
Form 8-A Registration Statement dated July 3, 1986) (File No.
1-2384).
4(e) First Supplemental Indenture between TRW Inc. and The Chase
Manhattan Bank (National Association), as successor Trustee,
dated as of July 26, 1989 (incorporated by reference to
Exhibit 4(b) to TRW Inc.'s Form S-3 Registration Statement,
File No. 33-30350).
4(f) Form of Warrant Agreement for Warrants attached to Debt
Securities including Form of Warrant Certificate.
4(g) Form of Warrant Agreement for Warrants not attached to Debt
Securities including Form of Warrant Certificate.
4(h) Form of Debt Security.
4(i) Form of Warrant Agreement for Warrants attached to Common
Stock including Form of Warrant Certificate.
4(j) Form of Warrant Agreement for Warrants not attached to Common
Stock including Form of Warrant Certificate.
5 Opinion of William B. Lawrence, Esq. as to the validity of the
securities being registered.
12 Statement Regarding Computation of Ratio of Earnings to Fixed
Charges (incorporated by reference to Exhibit 12 to TRW Inc.'s
Annual Report on Form 10-K for the Fiscal Year Ended December
31, 1997) (File No. 1-2384).
23(a) Consent of Ernst & Young LLP.
23(b) Consent of William B. Lawrence, Esq. (included in his opinion
filed as Exhibit 5).
24 Powers of Attorney of the directors and certain officers of
TRW Inc.
25 Statement of Eligibility and Qualification on Form T-1 of The
Chase Manhattan Bank (National Association) to Act as Trustee
under the Indenture, as supplemented.
II-2
<PAGE> 19
ITEM 17. UNDERTAKINGS
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental
change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or
decrease in the volume of securities offered (if the total
dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the
form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20 percent change in the maximum
aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration
statement;
(iii) To include any material information with
respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such
information in the registration statement; provided, however,
that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports
filed by the registrant pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of any
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in this
Registration Statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the provisions described under Item 15, or
otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of such
issue.
II-3
<PAGE> 20
SIGNATURES
Pursuant to the requirements of the Securities Act, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Lyndhurst, State of Ohio on March 20, 1998.
TRW INC.
By: /s/ WILLIAM B. LAWRENCE
William B. Lawrence
Executive Vice President, General Counsel
and Secretary
Pursuant to the requirements of the Securities Act, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated:
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
J. T. GORMAN* Chairman of the Board, Chief Executive Officer March 20, 1998
J. T. Gorman and Director
P. S. HELLMAN* President, Chief Operating Officer March 20, 1998
P. S. Hellman and Director
C. G. MILLER* Executive Vice President and March 20, 1998
C. G. Miller Chief Financial Officer
T. A. CONNELL* Vice President and Controller March 20, 1998
T. A. Connell
M. H. ARMACOST* Director March 20, 1998
M. H. Armacost
M. FELDSTEIN* Director March 20, 1998
M. Feldstein
R. M. GATES* Director March 20, 1998
R. M. Gates
C. H. HAHN* Director March 20, 1998
C. H. Hahn
G. H. HEILMEIER* Director March 20, 1998
G. H. Heilmeier
K. N. HORN* Director March 20, 1998
K. N. Horn
E. B. JONES* Director March 20, 1998
E. B. Jones
W. S. KISER* Director March 20, 1998
W. S. Kiser
</TABLE>
II-4
<PAGE> 21
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
D. B. LEWIS* Director March 20, 1998
D. B. Lewis
J. T. LYNN* Director March 20, 1998
J. T. Lynn
L. M. MARTIN* Director March 20, 1998
L. M. Martin
J. D. ONG* Director March 20, 1998
J. D. Ong
R. W. POGUE* Director March 20, 1998
R. W. Pogue
</TABLE>
William B. Lawrence, by signing his name hereto, does hereby sign and
execute this Registration Statement on behalf of each of the above-named
officers and Directors of TRW Inc. pursuant to powers of attorney executed by
each of such officers and Directors and filed with the Securities and Exchange
Commission as an exhibit to this Registration Statement.
*By /s/ WILLIAM B. LAWRENCE March 20, 1998
William B. Lawrence
Attorney-in-Fact
II-5
<PAGE> 22
Exhibit Index
EXHIBITS DESCRIPTION
1(a) Form of Underwriting Agreement (Common Stock).
1(b) Form of Underwriting Agreement (Debt Securities).
4(a) Amended Articles of Incorporation as amended May 5, 1997
(incorporated by reference to Exhibit 3(a) to TRW Inc.'s
Quarterly Report on Form 10-Q for the quarter ended March 31,
1997) (File No. 1-2384).
4(b) Regulations as amended April 30, 1980 (incorporated by
reference to Exhibit 3(b) to TRW Inc.'s Annual Report on Form
10-K for the year ended December 31, 1980) (File No. 1-2384).
4(c) Rights Agreement dated as of April 24, 1996 between TRW Inc.
and National City Bank, as Rights Agent (incorporated by
reference to Exhibit 1 to TRW Inc.'s Form 8-A Registration
Statement dated April 25, 1996) (File No. 1-2384).
4(d) Indenture between TRW Inc. and The Chase Manhattan Bank
(National Association), as successor Trustee, dated as of May
1, 1986 (incorporated by reference to Exhibit 2 to TRW Inc.'s
Form 8-A Registration Statement dated July 3, 1986) (File No.
1-2384).
4(e) First Supplemental Indenture between TRW Inc. and The Chase
Manhattan Bank (National Association), as successor Trustee,
dated as of July 26, 1989 (incorporated by reference to
Exhibit 4(b) to TRW Inc.'s Form S-3 Registration Statement,
File No. 33-30350).
4(f) Form of Warrant Agreement for Warrants attached to Debt
Securities including Form of Warrant Certificate.
4(g) Form of Warrant Agreement for Warrants not attached to Debt
Securities including Form of Warrant Certificate.
4(h) Form of Debt Security.
4(i) Form of Warrant Agreement for Warrants attached to Common
Stock including Form of Warrant Certificate.
4(j) Form of Warrant Agreement for Warrants not attached to Common
Stock including Form of Warrant Certificate.
5 Opinion of William B. Lawrence, Esq. as to the validity of the
securities being registered.
12 Statement Regarding Computation of Ratio of Earnings to Fixed
Charges (incorporated by reference to Exhibit 12 to TRW Inc.'s
Annual Report on Form 10-K for the Fiscal Year Ended December
31, 1997) (File No. 1-2384).
23(a) Consent of Ernst & Young LLP.
23(b) Consent of William B. Lawrence, Esq. (included in his opinion
filed as Exhibit 5).
24 Powers of Attorney of the directors and certain officers of
TRW Inc.
25 Statement of Eligibility and Qualification on Form T-1 of The
Chase Manhattan Bank (National Association) to Act as Trustee
under the Indenture, as supplemented.
<PAGE> 1
EXHIBIT 1(a)
TRW INC.
UNDERWRITING AGREEMENT
(COMMON STOCK)
New York, New York
[Names of Representatives], as
Representatives of the
Underwriters named in Schedule I hereto
As of ___________, ___
Dear Sirs:
TRW Inc., an Ohio corporation (the "Company"), proposes to issue and
sell to the underwriters named in Schedule I hereto (the "Underwriters"), for
whom you are acting as representatives (the "Representatives"), ___________
shares of its common stock, par value $0.625 per share (the "Firm Shares"). The
Company also proposes to issue and sell to the Underwriters not more than an
additional _______ shares of its common stock, par value $0.625 per share (the
"Additional Shares"), if and to the extent that you, as Representatives of the
offering, shall have determined to exercise, on behalf of the Underwriters, the
right to purchase such shares of common stock granted to the Underwriters in
Section 2 hereof. The Firm Shares and the Additional Shares are hereinafter
collectively referred to as the "Shares". The Shares of common stock, par value
$0.625 per share, of the Company to be outstanding after giving effect to the
sales contemplated hereby are hereinafter referred to as the "Common Stock". If
the firm or firms listed in Schedule I hereto include only the firm or firms
listed above, then the terms "Underwriters" and "Representatives", as used
herein, shall each be deemed to refer to such firm or firms.
1. Representations and Warranties. The Company represents and warrants
to, and agrees with, you as set forth below in this Section 1. Certain terms
used in this Section 1 are defined in paragraph (c) hereof.
(a) The Company meets the requirements for use of Form S-3
under the Securities Act of 1933 (the "Act") and has filed with the
Securities and Exchange Commission (the "Commission") one or more
registration statements on such Form (File Number[s]: 333-______[and
333-_____]), including a basic prospectus relating to such registration
statement(s), which have become effective, for the registration under
the Act of offers and sales of shares of [describe securities covered
by Form S-3] (the "Securities"), including the Shares, producing
aggregate proceeds of up to $__________. Such registration
statement(s), as amended at the date of this Agreement, meet the
requirements set forth in Rule 415(a)(1)(ix) or (x) and comply in all
other material respects with said Rule. The Company has filed or
proposes to file with the Commission pursuant to Rule 424, a supplement
to the form of prospectus included in such registration statement(s)
relating to the Shares and the plan of distribution thereof (the
"Prospectus Supplement" and, together with any preliminary
1
<PAGE> 2
Prospectus Supplement and the Basic Prospectus, the "Prospectus"). Upon
the request of the Representatives, but not without the agreement of
the Representatives, the Company will also file a Rule 462(b)
Registration Statement in accordance with Rule 462(b) ("Rule 462(b)")
under the Act.
(b) As of the Execution Time, on the Effective Date, when any
supplement to the Prospectus is filed with the Commission and at the
date of delivery by the Company of any Shares sold hereunder, (i) the
Registration Statement and any Rule 462(b) Registration Statement, as
amended as of any such time, and the Prospectus, as supplemented as of
any such time; (ii) the Registration Statement and any Rule 462(b)
Registration Statement, as amended as of any such time, did not or will
not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order
to make the statements therein not misleading; and (iii) the
Prospectus, as supplemented as of any such time, will not contain any
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that the Company makes no representations or warranties as to
the information contained in or omitted from the Registration Statement
or the Prospectus (or any supplement thereto) in reliance upon and in
conformity with information furnished in writing to the Company by or
on behalf of any of you specifically for use in the Registration
Statement or the Prospectus (or any supplement thereto).
(c) The terms which follow, when used in this Agreement, shall
have the meanings indicated. The term "the Effective Date" shall mean
each date that the Registration Statement, any post-effective amendment
or amendments thereto and any Rule 462(b) Registration Statement became
or become effective. "Execution Time" shall mean the date and time that
this Agreement is executed and delivered by the parties hereto. "Basic
Prospectus" shall mean the form of basic prospectus relating to the
Securities contained in the Registration Statement at the Effective
Date. "Prospectus" shall mean the Basic Prospectus as supplemented by
the Prospectus Supplement. "Registration Statement" shall mean the
registration statement(s) No[s]. 333-_____[and 333-_____], including
incorporated documents, exhibits and financial statements, as amended
at the Execution Time. "Rule 415", "Rule 424" and "Rule 462(b)" refer
to such rules under the Act. Any reference herein to the Registration
Statement, the Basic Prospectus, the Prospectus Supplement or the
Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 which
were filed under the Securities Exchange Act of 1934 (the "Exchange
Act") on or before the Effective Date of the Registration Statement or
the issue date of the Basic Prospectus, the Prospectus Supplement or
the Prospectus, as the case may be; and any reference herein to the
terms "amend", "amendment" or "supplement" with respect to the
Registration Statement, the Basic Prospectus, the Prospectus Supplement
or the Prospectus shall be deemed to refer to and include the filing of
any document under the Exchange Act after the Effective Date of the
Registration Statement or the issue date of the Basic Prospectus, the
Prospectus Supplement or the Prospectus, as the case may be,
incorporated therein by reference. "Rule 462(b) Registration Statement"
shall mean a registration statement and any amendments thereto filed
pursuant to Rule 462(b) relating to the offering of the Shares.
(d) Due Incorporation and Qualification. The Company has been
duly incorporated and is validly existing as a corporation in good
standing under the laws of Ohio with corporate power and authority to
own, lease and operate its properties and to conduct the business being
conducted
2
<PAGE> 3
by it as described in the Prospectus; and the Company is duly qualified
as a foreign corporation to transact business in each jurisdiction in
which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except
where the failure to so qualify would not have a material adverse
effect on the financial condition or the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as
one enterprise; and the Company is in good standing in the State of
California and the Commonwealth of Virginia.
(e) Incorporated Documents. The documents incorporated by
reference in the Prospectus, at the time they were or hereafter are
filed with the Commission, complied and will comply in all material
respects with the requirements of the Exchange Act and the rules and
regulations thereunder and, when read together and with the other
information in the Prospectus, did not and will not contain an untrue
statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were or are made, not
misleading.
(f) Financial Statements. The financial statements of the
Company and its consolidated subsidiaries included or incorporated by
reference in the Registration Statement and the Prospectus present
fairly the consolidated financial position of the Company and its
consolidated subsidiaries as at the dates indicated and the
consolidated results of their operations for the periods specified; and
except as stated therein, said financial statements have been prepared
in conformity with generally accepted accounting principles in the
United States applied on a consistent basis.
(g) Legal Proceedings; Contracts. Except as may be set forth
in the Prospectus, there is no action, suit or proceeding before or by
any court or governmental agency or body, domestic or foreign, now
pending, against or affecting, the Company or any of its subsidiaries,
which might, in the opinion of the Company, result in any material
adverse change in the financial position of the Company and its
subsidiaries taken as a whole, or might materially and adversely affect
the assets of the Company and its subsidiaries taken as a whole; and
there are no contracts or documents of the Company or any of its
subsidiaries which are required to be filed as exhibits to the
Registration Statement by the Act or by the rules and regulations
thereunder which have not been so filed.
(h) The authorized capital stock of the Company conforms as to
legal matters to the description thereof contained in the Prospectus.
The shares of Common Stock outstanding prior to the issuance of the
Shares to be sold by the Company have been duly authorized and are
validly issued, fully paid and non-assessable. The Shares have been
duly authorized and, when issued and sold in accordance with the terms
of this Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Shares will not be subject to
any preemptive or similar rights.
2. Purchase and Sale. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Underwriter, and each Underwriter agrees, severally and
not jointly, to purchase from the Company, at a purchase price of ________ per
share (the "Purchase Price") the respective number of Firm Shares set forth
opposite such Underwriter's name in Schedule I hereto.
3
<PAGE> 4
On the basis of the representations and warranties contained in this
Agreement, and subject to its terms and conditions, the Company agrees to sell
to the Underwriters the Additional Shares, and the Underwriters shall have a
one-time right to purchase, severally and not jointly, up to _______________
Additional Shares at the Purchase Price. If you, on behalf of the Underwriters,
elect to exercise such option, you shall so notify the Company in writing not
later than 30 days after the date of this Agreement, which notice shall specify
the number of Additional Shares to be purchased by the Underwriters and the date
on which such shares are to be purchased. Such date may be the same as the
Closing Date (as defined below) but not earlier than the Closing Date or later
than ten business days after the date of such notice. Additional Shares may be
purchased as provided in Section 3 hereof solely for the purpose of covering
over-allotments made in connection with the offering of the Firm Shares. If any
Additional Shares are to be purchased, each Underwriter agrees, severally and
not jointly, to purchase the number of Additional Shares (subject to such
adjustments to eliminate fractional shares as you may determine) that bears the
same proportion to the total number of Additional Shares to be purchased as the
number of Firm Shares set forth in Schedule I hereto set forth opposite the name
of such Underwriter bears to the total number of Firm Shares.
3. Delivery and Payment. Payment for the Firm Shares shall be made to
the Company in federal or other funds immediately available in New York City by
wire transfer to an account designated by the Company against delivery of such
Firm Shares for the respective accounts of the several Underwriters at 10:00 AM
on ____________, 199_, which date and time may be postponed by agreement between
the Representatives and the Company or as provided in Section 8 hereof. The time
and date of such payment are hereinafter referred to as the "Closing Date".
Payment for any Additional Shares shall be made to the Company in
federal or other funds immediately available in New York City by wire transfer
to an account designated by the Company against delivery of such Additional
Shares for the respective accounts of the several Underwriters at 10:00 AM on
the date specified in the notice described in Section 2 or at such other time on
the same or on such other date, which date and time may be postponed by
agreement between the Representatives and the Company or as provided in Section
8 hereof as shall be designated in writing by you. The time and date of such
payment are hereinafter referred to as the "Option Closing Date".
Certificates for the Firm Shares and Additional Shares shall be in
definitive form and registered in such names and in such denominations as you
shall request in writing not later than 1:00 PM on the business day prior to the
Closing Date or the Option Closing Date, as the case may be. The certificates
evidencing the Firm Shares and Additional Shares shall be delivered to you on
the Closing Date or the Option Closing Date, as the case may be, for the
respective accounts of the several Underwriters, with any transfer taxes payable
in connection with the transfer of the Shares to the Underwriters duly paid,
against payment of the Purchase Price therefor.
4. Agreements. The Company agrees with the several Underwriters that:
(a) Prior to the completion of the distribution of the Shares,
the Company will not file any amendment of the Registration Statement
or supplement to the Basic Prospectus unless the Company has furnished
you a copy for your review prior to filing and will not file any such
proposed amendment or supplement to which you reasonably object.
Subject to the foregoing sentence, the Company will cause the
Prospectus Supplement to be filed with the Commission pursuant to the
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<PAGE> 5
applicable paragraph of Rule 424 within the time period prescribed and
will provide evidence satisfactory to the Representatives of such
timely filing. Upon the request of the Representatives, the Company
will cause the Rule 462(b) Registration Statement, properly completed,
to be filed with the Commission pursuant to Rule 462(b) and will
provide evidence satisfactory to the Representatives of such filing.
The Company will promptly advise the Representatives (i) when the
Prospectus shall have been filed with the Commission pursuant to Rule
424, (ii) when any Rule 462(b) Registration Statement or any amendment
to the Registration Statement relating to the Securities shall have
become effective, (iii) of any request by the Commission for any
amendment of the Registration Statement, any Rule 462(b) Registration
Statement or amendment of or supplement to the Prospectus or for any
additional information; (iv) of the issuance by the Commission of any
stop order suspending the effectiveness of the Registration Statement
or the institution or threatening of any proceeding for that purpose;
and (v) of the receipt by the Company of any notification with respect
to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for
such purpose. The Company will use its best efforts to prevent the
issuance of any such stop order and, if issued, to obtain as soon as
possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to the Shares
is required to be delivered under the Act, any event occurs as a result
of which the Prospectus as then amended or supplemented would include
any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it
shall be necessary to amend or supplement the Prospectus to comply with
the Act or the rules thereunder, the Company promptly will prepare and
file with the Commission, subject to the first sentence of paragraph
(a) of this Section 4, an amendment or supplement which will correct
such statement or omission or an amendment which will effect such
compliance.
(c) As soon as practicable, the Company will make generally
available to its security holders and to the Representatives an
earnings statement or statements of the Company and its subsidiaries
which will satisfy the provisions of Section 11(a) of the Act and Rule
158 under the Act.
(d) The Company will furnish to the Representatives and
counsel for the Underwriters, without charge, copies of the
Registration Statement (including exhibits thereto) and each amendment
thereto which shall become effective on or prior to the Closing Date
and, so long as delivery of a prospectus by an Underwriter or dealer
may be required by the Act, as many copies of any Prospectus and the
Prospectus and any amendments thereof and supplements thereto, as the
Representatives may reasonably request. The Company will pay the
expenses of printing all documents relating to the offering.
(e) The Company will arrange for the qualification of the
Securities for sale under the laws of such jurisdiction as the
Representatives may reasonably designate, will maintain such
qualifications in effect so long as required for the distribution of
the Securities and will arrange for the determination of the legality
of the Securities for purchase by institutional investors.
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<PAGE> 6
(f) Until the business day following the Closing Date, the
Company will not, without the consent of the Representatives, offer or
sell, or announce the offering of, any securities covered by the
Registration Statement or any other registration statement filed under
the Act.
5. Conditions to the Obligations of the Underwriters. The obligations
of the Underwriters to purchase the Shares shall be subject to the accuracy of
the representations and warranties on the part of the Company contained herein
as of the date hereof, as of the date of the effectiveness of any amendment to
the Registration Statement filed prior to the Closing Date (including the filing
of any document incorporated by reference therein) and as of the Closing Date
(with respect to the Firm Shares and as of the Option Closing Date with respect
to the Additional Shares), to the accuracy of the statements of the Company made
in any certificates pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions:
(a) No stop order suspending the effectiveness of the
Registration Statement, as amended from time to time, shall have been
issued and no proceedings for that purpose shall have been instituted
or threatened; and the Prospectus shall have been filed or mailed for
filing with the Commission not later than 5:00 P.M. New York City time
on the business day following the date hereof.
(b) The Company shall have furnished to the Representatives
the opinion of the General Counsel or an Assistant General Counsel of
the Company, dated the Closing Date to the effect that:
(i) the Company is a corporation duly organized,
validly existing and in good standing under the laws of the
State of Ohio with full corporate power and authority to own
its properties and conduct the business now being conducted by
it, as described in the Prospectus, and is duly qualified to
do business as a foreign corporation in each jurisdiction
which requires such qualification wherein it owns or leases
material properties or conducts material business;
(ii) the authorized capital stock of the Company
conforms as to legal matters to the description thereof under
the caption "Description of Capital Stock" contained in the
Prospectus;
(iii) the shares of Common Stock outstanding prior to
the issuance of the Shares have been duly authorized and are
validly issued, fully paid and non-assessable;
(iv) (A) the Shares to be sold by the Company have
been duly authorized and, when issued, delivered and paid for
in accordance with the terms of this Agreement, will be
validly issued, fully paid and non-assessable, and (B) the
issuance of such Shares will not be subject to any preemptive
or similar rights;
(v) to the knowledge of such counsel, there is no
pending or threatened action, suit or proceeding before any
court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries,
of a character required to be disclosed in the Registration
Statement which is not adequately disclosed in the Prospectus,
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<PAGE> 7
and there is no franchise, contract or other document of a
character required to be described in the Registration
Statement or Prospectus, or to be filed as an exhibit, which
is not described or filed as required; and the statements
included or incorporated in the Prospectus describing any
legal proceedings or material contracts or agreements relating
to the Company fairly summarize such matters;
(vi) the Registration Statement and any amendments
thereto have become effective under the Act; to the best
knowledge of such counsel, no stop order suspending the
effectiveness of the Registration Statement, as amended, has
been issued, no proceedings for that purpose have been
instituted or threatened, and the Registration Statement, the
Prospectus and each amendment thereof or supplement thereto as
of their respective effective or issue dates (other than the
financial statements and other financial and statistical
information contained therein as to which such counsel need
express no opinion) complied as to form in all material
respects with the applicable requirements of the Act and the
rules thereunder; the documents filed by the Company under the
Exchange Act and incorporated by reference into the
Registration Statement as of their respective filing dates
(other than the financial statements and other financial and
statistical information contained therein as to which such
counsel need express no opinion) complied as to form in all
material respects with the applicable requirements of the
Exchange Act and the rules thereunder; and such counsel has no
reason to believe that the Registration Statement, or any
amendment thereof, at the Effective Date or at the Execution
Time and, as amended, at the date of this Agreement, contained
any untrue statement of a material fact or omitted to state
any material fact required to be stated therein or necessary
to make the statements therein not misleading or that the
Prospectus, as amended or supplemented, includes any untrue
statement of a material fact or omits to state a material fact
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;
provided, however, that such counsel need express no opinion
as to (A) the financial statements and other financial and
statistical information contained in the Registration
Statement or Prospectus or (B) the information contained in or
omitted from the Registration Statement or any amendment
thereof or the Prospectus or any amendment thereof or
supplement thereto in reliance upon and in conformity with
written information furnished to the Company by or on behalf
of any Underwriter through the Representatives specifically
for use in connection with the preparation of the Registration
Statement or any amendment thereof or the Prospectus or any
amendment thereof or supplement thereto;
(vii) this Agreement has been duly authorized,
executed and delivered by the Company;
(viii) no consent, approval, authorization or order
of any court or governmental agency or body is required for
the consummation of the transactions contemplated herein,
except such as have been obtained under the Act and such as
may be required under the blue sky laws of any jurisdiction in
connection with the purchase and distribution of the
Securities by the Underwriters and such other approvals
(specified in such opinion) as have been obtained;
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<PAGE> 8
(ix) neither the issue and sale of the Shares, nor
the consummation of any other of the transactions herein
contemplated nor the fulfillment of the terms hereof will
conflict with, result in a breach of, or constitute a default
under the Amended Articles of Incorporation or Regulations of
the Company or the terms of any indenture, other agreement or
instrument known to such counsel and to which the Company is a
party or bound, or any order or regulation known to such
counsel to be applicable to the Company of any court,
regulatory body, administrative agency, governmental body or
arbitrator having jurisdiction over the Company; and
(x) to the best knowledge of such counsel, no holders
of securities of the Company have rights to the registration
of such securities under the Registration Statement.
In rendering such opinion, such counsel may rely (A) as to matters
involving the application of laws of any jurisdiction other than the
State of Ohio or the United States, to the extent deemed proper and
specified in such opinion, upon the opinion of other counsel of good
standing believed to be reliable and who are satisfactory to counsel
for the Underwriters; (B) as to matters relating to that portion of the
Company that constituted BDM International, Inc. ("BDM") prior to its
purchase by the Company, upon the opinion of other counsel who have
represented BDM or on certificates of individuals who had been officers
of BDM prior to its purchase by the Company and (C) as to matters of
fact, to the extent deemed proper, on certificates of responsible
officers of the Company and public officials.
(c) The Representatives shall have received from Cravath,
Swaine & Moore, counsel for the Underwriters, such opinion or opinions,
dated the Closing Date, with respect to the issuance and sale of the
Shares, the Registration Statement, the Prospectus and other related
matters as the Representatives may reasonably require, and the Company
shall have furnished to such counsel such documents as they may
reasonably request for the purpose of enabling them to pass upon such
matters.
(d) The Company shall have furnished to the Representatives a
certificate of the Company, signed by two executive officers of the
Company, one of whom shall be the principal financial officer,
treasurer or controller of the Company, dated the Closing Date, to the
effect that the signers of such certificate have carefully examined the
Registration Statement, the Prospectus and this Agreement and that:
(i) the representations and warranties of the Company
in this Agreement are true and correct in all material
respects on and as of the Closing Date with the same effect as
if made on the Closing Date and the Company has complied with
all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the Closing
Date;
(ii) no stop order suspending the effectiveness of
the Registration Statement, as amended, has been issued and no
proceedings for that purpose have been instituted or, to the
Company's knowledge, threatened; and
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<PAGE> 9
(iii) since the date of the most recent financial
statements included in the Prospectus, there has been no
material adverse change in the condition (financial or other),
earnings, business or properties of the Company and its
subsidiaries taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set
forth in or contemplated in the Prospectus.
(e) At the Closing Date, Ernst & Young LLP shall have
furnished to the Representatives a letter or letters (which may refer
to letters previously delivered to one or more of the Representatives),
dated as of the Closing Date, in form and substance satisfactory to the
Representatives, confirming that they are independent accountants
within the meaning of the Act and the Exchange Act and the respective
applicable published rules and regulations thereunder and stating in
effect that:
(i) in their opinion the audited financial statements
and financial statement schedules included or incorporated in
the Registration Statement and the Prospectus and reported on
by them comply as to form in all material respects with the
applicable accounting requirements of the Act and the Exchange
Act and the related published rules and regulations;
(ii) on the basis of a reading of the latest
unaudited financial statements made available by the Company
and its subsidiaries; carrying out certain specified
procedures (but not an examination in accordance with
generally accepted auditing standards) which would not
necessarily reveal matters of significance with respect to the
comments set forth in such letter; a reading of the minutes of
the meetings of the stockholders, directors and executive
committees of the Company; and inquiries of certain officials
of the Company who have responsibility for financial and
accounting matters of the Company and its subsidiaries as to
transactions and events subsequent to the date of the most
recent financial statements incorporated in the Registration
Statement, as amended, and the Prospectus, as amended or
supplemented, nothing came to their attention which caused
them to believe that:
(1) any unaudited financial statements
included or incorporated in the Registration
Statement and the Prospectus do not comply as to form
in all material respects with applicable accounting
requirements and with the published rules and
regulations of the Commission with respect to
financial statements included or incorporated in
quarterly reports on Form 10-Q under the Exchange
Act; and said unaudited financial statements are not
in conformity with generally accepted accounting
principles applied on a basis substantially
consistent with that of the audited financial
statements included or incorporated in the
Registration Statement and the Prospectus;
(2) with respect to the period subsequent to
the date of the most recent financial statements
incorporated in the Registration Statement and the
Prospectus, there were any changes, at a specified
date not more than five business days prior to the
date of the letter, in the long-term debt of the
Company and its subsidiaries or capital stock of the
Company or decreases in the shareholders' investment
of the
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<PAGE> 10
Company as compared with the amounts shown on the
most recent consolidated balance sheet included or
incorporated in the Registration Statement and the
Prospectus, or for the period from the date of the
most recent financial statements incorporated in the
Registration Statement and the Prospectus to such
specified date there were any decreases, as compared
with the corresponding period in the preceding year,
in net sales and other income, in earnings from
continuing operations before income taxes or in total
or per share amounts (primary and fully diluted) of
earnings from continuing operations or net earnings,
of the Company and its subsidiaries, except in all
instances for changes or decreases set forth in such
letter, in which case the letter shall be accompanied
by an explanation by the Company as to the
significance thereof unless said explanation is not
deemed necessary by the Representatives;
(3) the amounts included in any unaudited
"capsule" information included or incorporated in the
Registration Statement and the Prospectus do not
agree with the amounts set forth in the unaudited
financial statements for the same periods or were not
determined on a basis substantially consistent with
that of the corresponding amounts in the audited
financial statements included or incorporated in the
Registration Statement and the Prospectus; and
(iii) they have performed certain other specified
procedures as a result of which they determined that certain
information of an accounting, financial or statistical nature
(which is limited to accounting, financial or statistical
information derived from the general accounting records of the
Company) set forth in the Registration Statement, as amended,
and the Prospectus, as amended or supplemented, and in Exhibit
12 to the Registration Statement, including the information
included or incorporated in Item 1 (excluding information
relating to backlog) and Items 6 and 7 of the Company's Annual
Report on Form 10-K incorporated therein, and the information
included in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" included or
incorporated in the Company's Quarterly Reports on Form 10-Q,
incorporated in the Registration Statement and the Prospectus,
agrees with the accounting records of the Company and its
subsidiaries, excluding any questions of legal interpretation;
and
(iv) if pro forma financial information is included
or incorporated in the Registration Statement and the
Prospectus, on the basis of a reading of the unaudited pro
forma financial information, carrying out certain specified
procedures, inquiries of certain officials of the Company who
have responsibility for financial and accounting matters, and
proving the arithmetic accuracy of the application of the pro
forma adjustments to the historical amounts in the pro forma
financial information, nothing came to their attention which
caused them to believe that the pro forma financial
information does not comply in form in all material respects
with the applicable accounting requirements of Rule 11-02 of
Regulation S-X or that the pro forma adjustments have not been
properly applied to the historical amounts in the compilation
of such statements.
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<PAGE> 11
References to the Registration Statement and the Prospectus in
this paragraph (e) are to such documents as amended and supplemented at
the date of the letter.
In addition, at the time this Agreement is executed, Ernst &
Young LLP shall have furnished to the Representatives a letter or
letters, dated the date of this Agreement, in form and substance
satisfactory to the Representatives, to the effect set forth above.
(f) Subsequent to the respective dates as of which information
is given in the Registration Statement and the Prospectus, there shall
not have been (i) any change or decrease specified in the letter or
letters referred to in paragraph (e) of this Section 5 or (ii) any
change, or any development involving a prospective change, in or
affecting the business or properties of the Company and its
subsidiaries, taken as a whole, the effect of which in any case
referred to in clause (i) or (ii) above, is, in the judgment of [the
lead Representative], so material and adverse as to make it impractical
or inadvisable to proceed with the offering or the delivery of the
Purchased Securities as contemplated by the Registration Statement and
the Prospectus.
(g) Subsequent to the execution of this Agreement, the rating
assigned by any nationally recognized securities rating agency to any
debt securities of the Company as of the date of this Agreement shall
not have been lowered nor shall any such rating agency have publicly
announced that it has placed any debt securities of the Company on what
is commonly termed a "watch list" for possible downgrading.
(h) Prior to the Closing Date, the Company shall have
furnished to the Representatives such further information, certificates
and documents as the Representatives may reasonably request.
The several obligations of the Underwriters to purchase Additional
Shares hereunder are subject to the delivery to the Representatives on the
Option Closing Date of such documents, certificates, comfort letters and
opinions, dated the Option Closing Date, as you may reasonably request with
respect to the good standing of the Company, the due authorization and sale of
the Additional Shares and other matters related to the sale of the Additional
Shares and, confirming, as of the Option Closing Date, various of the matters
referred to in this Section 5.
If any of the conditions specified in this Section 5 shall not have
been fulfilled in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Representatives and their counsel, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time
prior to, the Closing Date by the Representatives. Notice of such cancellation
shall be given to the Company in writing or by telephone or telegraph confirmed
in writing.
6. Reimbursement of Underwriters' Expenses. If the sale of the Shares
provided for herein is not consummated because any condition to the obligations
of the Underwriters set forth in Section 5 hereof is not satisfied or because of
any refusal, inability or failure on the part of the Company to perform any
agreement herein or comply with any provision hereof other than by reason of a
default by any of the Underwriters, the Company will reimburse the Underwriters
severally upon demand for all reasonable
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<PAGE> 12
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been incurred by them in connection with the proposed purchase
and sale of the Securities but the Company shall be under no further liability
to the Underwriters with respect to such Securities except as provided in
Section 7 hereof.
7. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Underwriter and each person who controls any
Underwriter within the meaning of either the Act or the Exchange Act against any
and all losses, claims, damages or liabilities, joint or several (including
amounts paid in settlement of any litigation if such settlement is effected with
the written consent of the Company), to which they or any of them may become
subject under the Act, the Exchange Act or other Federal or state statutory law
or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement for the registration of the Shares as
originally filed or in any amendment thereof, or in the Basic Prospectus or the
Prospectus, or in any amendment thereof or supplement thereto, or arise out of
or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, and agrees to reimburse each such indemnified party for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that (i) the Company will not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through
the Representatives specifically for use in connection with the preparation
thereof, and (ii) such indemnity with respect to the Basic Prospectus or any
Prospectus shall not inure to the benefit of any Underwriter (or any person
controlling such Underwriter) from whom the person asserting any such loss,
claim, damage or liability purchased the Shares which are the subject thereof if
such person did not receive a copy of the Prospectus (as amended or
supplemented) excluding documents incorporated therein by reference at or prior
to the confirmation of the sale of such Shares to such person in any case where
such delivery is required by the Act and the untrue statement or omission of a
material fact contained in the Prospectus was corrected in the Prospectus (as
amended or supplemented). This indemnity agreement will be in addition to any
liability which the Company may otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the
Registration Statement, and each person who controls the Company within the
meaning of either the Act or the Exchange Act to the same extent as the
foregoing indemnity from the Company to each Underwriter, but only with
reference to written information relating to such Underwriter furnished to the
Company by or on behalf of such Underwriter through the Representatives
specifically for use in the preparation of the documents referred to in the
foregoing indemnity. This indemnity agreement will be in addition to any
liability which any Underwriter may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 7
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party, under
this Section 7, notify the indemnifying party in writing of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it
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<PAGE> 13
may have to any indemnified party, otherwise than under this Section 7. In case
any such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein, and to the extent that it may elect by written
notice delivered to the indemnified party promptly after receiving the aforesaid
notice from such indemnified party, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party; provided, however, that if
the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, the indemnified party, or parties shall have the right to
select separate counsel to assert such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or
parties. Upon receipt of notice from the indemnifying party to such indemnified
party of its election so to assume the defense of such action and approval by
the indemnified party of counsel, the indemnifying party will not be liable to
such indemnified party under this Section 7 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless (i) the indemnified party shall have employed separate counsel in
connection with the assertion of legal defenses in accordance with the proviso
to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel, approved by the Representatives in the case of paragraph (a)
of this Section 7, representing the indemnified parties under such paragraph (a)
who are parties to such action), (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the
action or (iii) the indemnifying party has authorized the employment of counsel
for the indemnified party at the expense of the indemnifying party; and except
that, if clause (i) or (iii) is applicable, such liability shall be only in
respect of the counsel referred to in such clause (i) or (iii).
(d) If the indemnification provided for in this Section 7 is
unavailable to an indemnified party under paragraphs (a) or (b) hereof or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then each indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and the Underwriters on the other from the
offering of the Shares or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company on the one hand and of the Underwriters on the
other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand
and the Underwriters on the other in connection with the offering of the
Purchased Securities shall be deemed to be in the same proportion as the total
net proceeds from the offering of such Purchased Securities (before deducting
expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Underwriters in respect thereof. The relative fault
of the Company on the one hand and of the Underwriters on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or by the
Underwriters and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.
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The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, no Underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Shares underwritten and distributed to the public by such
Underwriter were offered to the public exceeds the amount of any damages which
such Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters' obligations to contribute
pursuant to this Section 7 are several, in proportion to the respective
principal amounts of Purchased Securities purchased by each of such
Underwriters, and not joint.
8. Defaulting Underwriters. If, on the Closing Date or the Option
Closing Date, as the case may be, any one or more of the Underwriters shall fail
to purchase and pay for Shares that it has or they have agreed to purchase
hereunder on such date and such failure to purchase shall constitute a default
in the performance of its or their obligations under this Agreement, and the
aggregate number of Shares which such defaulting Underwriter or Underwriters
agreed but failed or refused to purchase is not more than one-tenth of the
aggregate number of the Shares to be purchased on such date, the other
Underwriters shall be obligated severally in the proportions that the number of
Firm Shares set forth opposite their respective names in Schedule I bears to the
aggregate number of Firm Shares set forth opposite the names of all such
non-defaulting Underwriters, or in such other proportions as you may specify, to
purchase the Shares which such defaulting Underwriter or Underwriters agreed but
failed to purchase on such date. If, on the Closing Date, any Underwriter or
Underwriters shall fail to purchase and pay for Firm Shares and such failure to
purchase shall constitute a default in the performance of its or their
obligations under this Agreement and the aggregate number of Firm Shares with
respect to which such default occurs is more than one-tenth of the aggregate
number of Firm Shares to be purchased, the remaining Underwriters shall have the
right to purchase all, but shall not be under any obligation to purchase any, of
the Firm Shares, and if such non-defaulting Underwriters do not purchase all the
Firm Shares, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter or the Company. In any such case the Representatives
shall have the right to postpone the Closing Date, but in no event for longer
than seven days, in order that the required changes, if any, in the Registration
Statement and in the Prospectus or in any other documents or arrangements may be
effected. If, on the Option Closing Date, any Underwriter or Underwriters shall
fail to purchase and pay for Additional Shares and such failure to purchase
shall constitute a default in the performance of its or their obligations under
this Agreement and the aggregate number of Additional Shares with respect to
which such default occurs is more than one-tenth of the aggregate number of
Additional Shares to be purchased, the non-defaulting Underwriters shall have
the option to (i) terminate their obligation hereunder to purchase Additional
Shares or (ii) purchase not less than the number of Additional Shares that such
non-defaulting Underwriters would have been obligated to purchase in the absence
of such default. Any action taken under this paragraph shall not relieve any
defaulting Underwriter from liability in respect of any default of such
Underwriter under this Agreement.
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<PAGE> 15
9. Termination. (a) This Agreement may be terminated for any reason, at
any time by either the Company with respect to any Underwriter or any
Underwriter with respect to itself, upon the giving of thirty (30) days' written
notice of such termination to each other party hereto.
(b) An Underwriter may terminate this Agreement, immediately
upon notice to the Company, at any time prior to the Closing Date (i)
if there has been, since the date of this Agreement or since the
respective dates as of which information is given in the Registration
Statement, any change, or any development involving a prospective
change, in or affecting the business or properties of the Company and
its subsidiaries, shall have occurred the effect of which is, in the
judgment of [the lead Representative], so material and adverse to the
Company and its subsidiaries taken as a whole as to make it impractical
or inadvisable to proceed with the delivery of such Shares or (ii) if
there shall have occurred any material adverse change in the financial
markets in the United States or any outbreak or escalation of
hostilities or other national or international calamity or crisis, the
effect of which shall be such as to make it, in the judgment of [the
lead Representative] impracticable to market the Shares, or (iii) if
trading in any securities of the Company shall have been suspended by
the Commission or a national securities exchange, or if trading
generally on either the American Stock Exchange or the New York Stock
Exchange shall have been suspended, or minimum or maximum prices for
trading shall have been fixed, or maximum ranges for prices for
securities shall have been required, by either of said exchanges or by
order of the Commission or any other governmental authority, or if a
banking moratorium shall have been declared by either Federal or New
York authorities, or (iv) if the rating assigned by any nationally
recognized securities rating agency to any debt securities of the
Company as of the date of this Agreement shall have been lowered since
that date or if any such rating agency shall have publicly announced
that it has placed any debt securities of the Company on what is
commonly termed a "watch list" for possible downgrading, or (v) if
there shall have come to the attention of such Underwriter any facts
that would cause you to believe that the Prospectus, at the time it was
required to be delivered to a purchaser of Shares, contained an untrue
statement of a material fact or omitted to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances existing at the time of such delivery, not misleading.
(c) In the event of any termination pursuant to paragraph (a),
neither party will have any liability to the other party hereto, except
that (i) each Underwriter shall be entitled to any commissions earned
in accordance with this Agreement, (ii) if at the time of termination
you shall own any Shares purchased pursuant to this Agreement with the
intention of reselling them, the covenants set forth in Section 4
hereof shall remain in effect until such Shares are so resold or
delivered, as the case may be, and (iii) the provisions of Section 4(d)
hereof, the indemnity and contribution agreements set forth in Section
7 hereof and the provisions of Sections 10 and 12 hereof shall remain
in effect.
10. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Underwriters set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company or any of
the officers, directors or controlling persons referred to in Section 7 hereof,
and will survive delivery of and payment for the Shares. The provisions of
Sections 6 and 7 hereof shall survive the termination or cancellation of this
Agreement.
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<PAGE> 16
11. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telecopied (with confirmation of receipt) to them, at
____________________________; or, if sent to the Company, will be mailed,
delivered or telecopied (with confirmation of receipt) to it at 1900 Richmond
Road, Cleveland, Ohio 44124, attention of the Secretary (facsimile number (216)
291-7070)).
12. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 7 hereof, and no
other person will have any right or obligation hereunder.
13. Applicable Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York.
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<PAGE> 17
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the several Underwriters.
Very truly yours,
TRW Inc.
By:______________________________________
[Title]
The foregoing Agreement is hereby confirmed
and accepted as of the date specified in
Schedule I hereto.
[Representatives]
For themselves and the other several
Underwriters named in Schedule I to the
foregoing Agreement.
17
<PAGE> 18
SCHEDULE I
NUMBER OF
FIRM SHARES TO
UNDERWRITER BE PURCHASED
- --------------------------------------------------------------------------------
--------
Total
========
18
<PAGE> 1
EXHIBIT 1(b)
TRW INC.
UNDERWRITING AGREEMENT
(DEBT SECURITIES)
New York, New York
[Names of Representatives], as
Representatives of the
Underwriters named in Schedule II hereto
As of ___________, ____
Dear Sirs:
TRW Inc., an Ohio corporation (the "Company"), proposes to sell to the
underwriters named in Schedule II hereto (the "Underwriters"), for whom you are
acting as representatives (the "Representatives"), the principal amount of its
securities identified in Schedule I hereto (the "Debt Securities"), to be issued
under an indenture, dated as of May 1, 1986 (the "Indenture"), and supplemented
by a First Supplemental Indenture, dated as of August 24, 1989, between the
Company and The Chase Manhattan Bank, as successor trustee (the "Trustee"). The
Debt Securities are also referred to as the "Purchased Securities." If the firm
or firms listed in Schedule II hereto include only the firm or firms listed
above, then the terms "Underwriters" and "Representatives", as used herein,
shall each be deemed to refer to such firm or firms.
1. Representations and Warranties. The Company represents and warrants
to, and agrees with, you as set forth below in this Section 1. Certain terms
used in this Section 1 are defined in paragraph (c) hereof.
(a) The Company meets the requirements for use of Form S-3
under the Securities Act of 1933 (the "Act") and has filed with the
Securities and Exchange Commission (the "Commission") one or more
registration statements on such Form (File Number[s]: 333-______[ and
333-____]), including a basic prospectus relating to such registration
statement(s), which have become effective, for the registration under
the Act of offers and sales of [describe securities covered by Form
S-3] (the "Securities"), including the Debt Securities, producing
aggregate proceeds of up to $_________. Such registration statement(s),
as amended at the date of this Agreement, meet the requirements set
forth in Rule 415(a)(1)(ix) or (x) and comply in all other material
respects with said Rule. [The Company has filed with the Commission
pursuant to Rule 424, a preliminary supplement to the form of
prospectus included in such registration statement(s) relating to the
Debt Securities and the plan of distribution thereof (the "Preliminary
Prospectus Supplement").] In connection with the sale of Debt
Securities, the Company proposes to file with the Commission pursuant
to Rule 424 a [further] supplement specifying the interest rates,
maturity dates and, if appropriate, other terms of the Debt Securities
sold pursuant hereto [and the plan of distribution] (the "Prospectus
Supplement" and, together with the Preliminary Prospectus Supplement
and the Basic Prospectus, the "Prospectus").
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<PAGE> 2
Upon the request of the Representatives, but not without the agreement
of the Representatives, the Company will also file a Rule 462(b)
Registration Statement in accordance with Rule 462(b) ("Rule 462(b)")
under the Act.
(b) As of the Execution Time, on the Effective Date, when any
supplement to the Prospectus is filed with the Commission and at the
date of delivery by the Company of any Debt Securities sold hereunder
(a "Closing Date"), (i) the Registration Statement and any Rule 462(b)
Registration Statement, as amended as of any such time, and the
Prospectus, as supplemented as of any such time, and the Indenture will
comply in all material respects with the applicable requirements of the
Act, and the Trust Indenture Act of 1939, as amended (the "Trust
Indenture Act"), and the respective rules and regulations thereunder;
(ii) the Registration Statement and any Rule 462(b) Registration
Statement, as amended as of any such time, did not or will not contain
any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the
statements therein not misleading; and (iii) the Prospectus, as
supplemented as of any such time, will not contain any untrue statement
of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that the
Company makes no representations or warranties as to (i) that part of
the Registration Statement which shall constitute the Statement of
Eligibility and Qualification (Form T-1) under the Trust Indenture Act
of the Trustee or (ii) the information contained in or omitted from the
Registration Statement or the Prospectus (or any supplement thereto) in
reliance upon and in conformity with information furnished in writing
to the Company by or on behalf of any of you specifically for use in
the Registration Statement or the Prospectus (or any supplement
thereto).
(c) The terms which follow, when used in this Agreement, shall
have the meanings indicated. The term "the Effective Date" shall mean
each date that the Registration Statement, any post-effective amendment
or amendments thereto and any Rule 462(b) Registration Statement became
or become effective. "Execution Time" shall mean the date and time that
this Agreement is executed and delivered by the parties hereto. "Basic
Prospectus" shall mean the form of basic prospectus relating to the
Securities contained in the Registration Statement at the Effective
Date. "Prospectus" shall mean the Basic Prospectus as supplemented by
the Prospectus Supplement. "Registration Statement" shall mean the
registration statement(s) No[s]. 333-______[and 33-_____], including
incorporated documents, exhibits and financial statements, as amended
at the Execution Time. "Rule 415", "Rule 424" and "Rule 462(b)" refer
to such rules under the Act. Any reference herein to the Registration
Statement, the Basic Prospectus, the Prospectus Supplement or the
Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 which
were filed under the Securities Exchange of Act of 1934 (the "Exchange
Act") on or before the Effective Date of the Registration Statement or
the issue date of the Basic Prospectus, the Prospectus Supplement or
the Prospectus, as the case may be; and any reference herein to the
terms "amend", "amendment" or "supplement" with respect to the
Registration Statement, the Basic Prospectus, the Prospectus Supplement
or the Prospectus shall be deemed to refer to and include the filing of
any document under the Exchange Act after the Effective Date of the
Registration Statement or the issue date of the Basic Prospectus, the
Prospectus Supplement or the Prospectus, as the case may be,
incorporated therein by reference. "Rule 462(b) Registration Statement"
shall mean a registration statement and any amendments thereto filed
2
<PAGE> 3
pursuant to Rule 462(b) relating to the offering of the Debt Securities
covered by the Registration Statement.
(d) Due Incorporation and Qualification. The Company has been
duly incorporated and is validly existing as a corporation in good
standing under the laws of Ohio with corporate power and authority to
own, lease and operate its properties and to conduct the business being
conducted by it as described in the Prospectus; and the Company is duly
qualified as a foreign corporation to transact business in each
jurisdiction in which such qualification is required, whether by reason
of the ownership or leasing of property or the conduct of business,
except where the failure to so qualify would not have a material
adverse effect on the financial condition or the earnings, business
affairs or business prospects of the Company and its subsidiaries
considered as one enterprise; and the Company is in good standing in
the State of California and the Commonwealth of Virginia.
(e) Incorporated Documents. The documents incorporated by
reference in the Prospectus, at the time they were or hereafter are
filed with the Commission, complied and will comply in all material
respects with the requirements of the Exchange Act and the rules and
regulations thereunder and, when read together and with the other
information in the Prospectus, did not and will not contain an untrue
statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were or are made, not
misleading.
(f) Financial Statements. The financial statements of the
Company and its consolidated subsidiaries included or incorporated by
reference in the Registration Statement and the Prospectus present
fairly the consolidated financial position of the Company and its
consolidated subsidiaries as at the dates indicated and the
consolidated results of their operations for the periods specified; and
except as stated therein, said financial statements have been prepared
in conformity with generally accepted accounting principles in the
United States applied on a consistent basis.
(g) Legal Proceedings; Contracts. Except as may be set forth
in the Prospectus, there is no action, suit or proceeding before or by
any court or governmental agency or body, domestic or foreign, now
pending, against or affecting, the Company or any of its subsidiaries,
which might, in the opinion of the Company, result in any material
adverse change in the financial position of the Company and its
subsidiaries taken as a whole, or might materially and adversely affect
the assets of the Company and its subsidiaries taken as a whole; and
there are no contracts or documents of the Company or any of its
subsidiaries which are required to be filed as exhibits to the
Registration Statement by the Act or by the rules and regulations
thereunder which have not been so filed.
(h) Authorization and Validity of the Debt Securities. The
Debt Securities have been duly authorized for issuance and sale
pursuant to this Agreement and, when issued, authenticated and
delivered pursuant to the provisions of this Agreement and the
Indenture against payment of the consideration therefor specified in
the Prospectus, the Debt Securities will constitute valid and legally
binding obligations of the Company enforceable in accordance with their
terms, except as enforcement thereof may be limited by bankruptcy,
insolvency, or other laws relating to or affecting enforcement of
creditors' rights or by general equity principles, and except further
as enforcement thereof may be limited by (i) requirements that a claim
with respect to any Debt Securities
3
<PAGE> 4
denominated other than in United States dollars (or a foreign currency
or currency unit judgment in respect of such claim) be converted into
United States dollars at a rate of exchange prevailing on a date
determined pursuant to applicable law or (ii) governmental authority to
limit, delay or prohibit the making of payments in a foreign currency
or currency units or payments outside the United States; the Debt
Securities and the Indenture will be substantially in the form
heretofore delivered to the Underwriters and conform in all material
respects to all statements relating thereto contained in the
Prospectus; and the Debt Securities will be entitled to the benefits
provided by the Indenture.
2. Purchase and Sale. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Underwriter, and each Underwriter agrees, severally and
not jointly, to purchase from the Company, at the purchase price set forth in
Schedule I hereto the principal amount of the Purchased Securities set forth
opposite such Underwriter's name in Schedule II hereto, except that, if Schedule
I hereto provides for the sale of Purchased Securities pursuant to delayed
delivery arrangements, the respective principal amounts of Purchased Securities
to be purchased by the Underwriters shall be as set forth in Schedule II hereto,
less the respective amounts of Contract Securities determined as provided below.
Purchased Securities to be purchased by the Underwriters are herein sometimes
called the "Underwriters' Securities" and Purchased Securities to be purchased
pursuant to Delayed Delivery Contracts as hereinafter provided are herein called
"Contract Securities".
If so provided in Schedule I hereto, the Underwriters are authorized to
solicit offers to purchase Purchased Securities from the Company pursuant to
delayed delivery contracts ("Delayed Delivery Contracts"), substantially in the
form of Schedule III hereto but with such changes therein as the Company may
authorize or approve. The Underwriters will use their reasonable best efforts to
make such arrangements and, as compensation therefor, the Company will pay to
the Representatives, for the account of the Underwriters, on the Closing Date,
the percentage set forth in Schedule I hereto of the principal amount of the
Purchased Securities for which Delayed Delivery Contracts are made. Delayed
Delivery Contracts are to be with institutional investors, including commercial
and savings banks, insurance companies, pension funds, investment companies and
educational and charitable institutions. The Company will make Delayed Delivery
Contracts in all cases where sales of Contract Securities arranged by the
Underwriters have been approved by the Company but, except as the Company may
otherwise agree, each such Delayed Delivery Contract must be for not less than
the minimum principal amount set forth in Schedule I hereto and the aggregate
principal amount of Contract Securities may not exceed the maximum aggregate
principal amount set forth in Schedule I hereto. The Underwriters will not have
any responsibility in respect of the validity or performance of Delayed Delivery
Contracts. The principal amount of Purchased Securities to be purchased by each
Underwriter as set forth in Schedule II hereto shall be reduced by an amount
which shall bear the same proportion to the total principal amount of Contract
Securities as the principal amount of Purchased Securities set forth opposite
the name of such Underwriter bears to the aggregate principal amount set forth
in Schedule II hereto, except to the extent that you and the Company agree that
such reduction shall be otherwise than in such proportion; provided, however,
that the total principal amount of Purchased Securities to be purchased by all
Underwriters shall be the aggregate principal amount set forth in Schedule II
hereto, less the aggregate principal amount of Contract Securities.
3. Delivery and Payment. Delivery of and payment for the Underwriters'
Securities shall be made at the office, on the date and at the time specified in
Schedule I hereto, which date and time may be postponed by agreement between the
Representatives and the Company or as provided in Section 8 hereof
4
<PAGE> 5
(such date and time of delivery and payment for the Underwriters' Securities
being herein called the "Closing Date"). Delivery of the Underwriters'
Securities shall be made to the Representatives for the respective accounts of
the several Underwriters against payment by the several Underwriters through the
Representatives of the purchase price thereof to or upon the order of the
Company by certified or official bank check or checks payable in federal or
other funds immediately available in New York City by wire transfer to an
account designated by the Company. Certificates for the Underwriters' Securities
shall be registered in such names and in such denominations as the
Representatives may request not less than three full business days in advance of
the Closing Date.
The Company agrees to have the Underwriters' Securities available for
inspection, checking and packaging by the Representatives in New York, New York,
not later than 1:00 PM on the business day prior to the Closing Date or such
other time and place as may be agreed by the Company and the Representatives.
4. Agreements. The Company agrees with the several Underwriters that:
(a) Prior to the completion of the distribution of the
Purchased Securities, the Company will not file any amendment of the
Registration Statement or supplement to the Basic Prospectus unless the
Company has furnished you a copy for your review prior to filing and
will not file any such proposed amendment or supplement to which you
reasonably object. Subject to the foregoing sentence, the Company will
cause the Prospectus Supplement to be filed with the Commission
pursuant to the applicable paragraph of Rule 424 within the time period
prescribed and will provide evidence satisfactory to the
Representatives of such timely filing. Upon the request of the
Representatives, the Company will cause the Rule 462(b) Registration
Statement, properly completed, to be filed with the Commission pursuant
to Rule 462(b) and will provide evidence satisfactory to the
Representatives of such filing. The Company will promptly advise the
Representatives (i) when the Prospectus shall have been filed with the
Commission pursuant to Rule 424, (ii) when any Rule 462(b) Registration
Statement or any amendment to the Registration Statement relating to
the Securities shall have become effective, (iii) of any request by the
Commission for any amendment of the Registration Statement, any Rule
462(b) Registration Statement or amendment of or supplement to the
Prospectus or for any additional information, (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or the institution or threatening of any
proceeding for that purpose and (v) of the receipt by the Company of
any notification with respect to the suspension of the qualification of
the Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose. The Company will use
its best efforts to prevent the issuance of any such stop order and, if
issued, to obtain as soon as possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to the
Securities is required to be delivered under the Act, any event occurs
as a result of which the Prospectus as then amended or supplemented
would include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading,
or if it shall be necessary to amend or supplement the Prospectus to
comply with the Act or the rules thereunder, the Company promptly will
prepare and file with the Commission, subject to the first sentence of
paragraph (a) of this Section 4, an amendment or supplement which will
correct such statement or omission or an amendment which will effect
such compliance.
5
<PAGE> 6
(c) As soon as practicable, the Company will make generally
available to its security holders and to the Representatives an
earnings statement or statements of the Company and its subsidiaries
which will satisfy the provisions of Section 11(a) of the Act and Rule
158 under the Act.
(d) The Company will furnish to the Representatives and
counsel for the Underwriters, without charge, copies of the
Registration Statement (including exhibits thereto) and each amendment
thereto which shall become effective on or prior to the Closing Date
and, so long as delivery of a prospectus by an Underwriter or dealer
may be required by the Act, as many copies of any Prospectus and the
Prospectus and any amendments thereof and supplements thereto, as the
Representatives may reasonably request. The Company will pay the
expenses of printing all documents relating to the offering.
(e) The Company will arrange for the qualification of the
Securities for sale under the laws of such jurisdictions as the
Representatives may reasonably designate, will maintain such
qualifications in effect so long as required for the distribution of
the Securities and will arrange for the determination of the legality
of the Securities for purchase by institutional investors.
(f) Until the business day following the Closing Date, the
Company will not, without the consent of the Representatives, offer or
sell, or announce the offering of, any debt securities covered by the
Registration Statement or any other registration statement filed under
the Act.
5. Conditions to the Obligations of the Underwriters. The obligations
of the Underwriters to purchase the Underwriters' Securities shall be subject to
the accuracy of the representations and warranties on the part of the Company
contained herein as of the date hereof, as of the date of the effectiveness of
any amendment to the Registration Statement filed prior to the Closing Date
(including the filing of any document incorporated by reference therein) and as
of the Closing Date, to the accuracy of the statements of the Company made in
any certificates pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions:
(a) No stop order suspending the effectiveness of the
Registration Statement, as amended from time to time, shall have been
issued and no proceedings for that purpose shall have been instituted
or threatened; and the Prospectus shall have been filed or mailed for
filing with the Commission not later than 5:00 P.M. New York City time
on the business day following the date hereof.
(b) The Company shall have furnished to the Representatives
the opinion of the General Counsel or an Assistant General Counsel of
the Company, dated the Closing Date to the effect that:
(i) the Company is a corporation duly organized,
validly existing and in good standing under the laws of the
State of Ohio with full corporate power and authority to own
its properties and conduct the business now being conducted by
it, as described in the Prospectus, and is duly qualified to
do business as a foreign corporation in each jurisdiction
which requires such qualification wherein it owns or leases
material properties or conducts material business;
6
<PAGE> 7
(ii) the Company's authorized equity capitalization
is as set forth in the Prospectus and the Securities conform
to the description thereof contained in the Prospectus;
(iii) the Indenture has been duly authorized,
executed and delivered by or on behalf of the Company, has
been duly qualified under the Trust Indenture Act and,
assuming the Indenture has been duly authorized, executed and
delivered by the Trustee, constitutes a legal, valid and
binding instrument enforceable against the Company in
accordance with its terms except as the enforcement of
remedies may be (i) limited by applicable bankruptcy,
reorganization, insolvency, moratorium or other laws or
proceedings affecting the enforcement of creditors' rights
generally from time to time in effect or (ii) subject to the
effect of general principles of equity whether applied by a
court of law or equity; and the Securities have been duly
authorized and, when executed and authenticated in accordance
with the provisions of the Indenture and delivered to and paid
for by the Underwriters pursuant to this Agreement, in the
case of the Underwriters' Securities, or by the purchasers
thereof pursuant to Delayed Delivery Contracts, in the case of
any Contract Securities, will constitute legal, valid and
binding obligations of the Company entitled to the benefits of
the Indenture except as the enforcement of remedies may be
limited by (i) applicable bankruptcy, reorganization,
insolvency, moratorium or other laws or proceedings affecting
the enforcement of creditors' rights generally from time to
time in effect or (ii) subject to the effect of general
principles of equity whether applied by a court of law or
equity;
(iv) to the knowledge of such counsel, there is no
pending or threatened action, suit or proceeding before any
court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries,
of a character required to be disclosed in the Registration
Statement which is not adequately disclosed in the Prospectus,
and there is no franchise, contract or other document of a
character required to be described in the Registration
Statement or Prospectus, or to be filed as an exhibit, which
is not described or filed as required; and the statements
included or incorporated in the Prospectus describing any
legal proceedings or material contracts or agreements relating
to the Company fairly summarize such matters;
(v) the Registration Statement has become effective
under the Act; to the best knowledge of such counsel, no stop
order suspending the effectiveness of the Registration
Statement, as amended, has been issued, no proceedings for
that purpose have been instituted or threatened, and the
Registration Statement, the Prospectus and each amendment
thereof or supplement thereto as of their respective effective
or issue dates (other than the financial statements and other
financial and statistical information contained therein as to
which such counsel need express no opinion) complied as to
form in all material respects with the applicable requirements
of the Act and the rules thereunder; the documents filed by
the Company under the Exchange Act and incorporated by
reference into the Registration Statement as of their
respective filing dates (other than the financial statements
and other financial and statistical information contained
therein as to which such counsel need express no opinion)
complied as to form in all material respects with the
applicable requirements of the Exchange Act and the rules
thereunder; and such counsel has no reason to believe that the
Registration Statement, or any amendment thereof, at the
Effective Date or at the
7
<PAGE> 8
Execution Time and, as amended, at the date of this Agreement,
contained any untrue statement of a material fact or omitted
to state any material fact required to be stated therein or
necessary to make the statements therein not misleading or
that the Prospectus, as amended or supplemented, includes any
untrue statement of a material fact or omits to state a
material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading; provided, however, that such counsel need express
no opinion as to (A) that part of the Registration Statement
which shall constitute the Statement of Eligibility and
Qualification (Form T-1) under the Trust Indenture Act of the
Trustee, (B) the financial statements and other financial and
statistical information contained in the Registration
Statement or Prospectus or (C) the information contained in or
omitted from the Registration Statement or any amendment
thereof or the Prospectus or any amendment thereof or
supplement thereto in reliance upon and in conformity with
written information furnished to the Company by or on behalf
of any Underwriter through the Representatives specifically
for use in connection with the preparation of the Registration
Statement or any amendment thereof or the Prospectus or any
amendment thereof or supplement thereto;
(vi) this Agreement and any Delayed Delivery
Contracts have been duly authorized, executed and delivered by
the Company;
(vii) no consent, approval, authorization or order of
any court or governmental agency or body is required for the
consummation of the transactions contemplated herein or in any
Delayed Delivery Contracts, except such as have been obtained
under the Act and such as may be required under the blue sky
laws of any jurisdiction in connection with the purchase and
distribution of the Purchased Securities by the Underwriters
and such other approvals (specified in such opinion) as have
been obtained;
(viii) neither the issue and sale of the Securities,
nor the consummation of any other of the transactions herein
contemplated nor the fulfillment of the terms hereof or of any
Delayed Delivery Contracts will conflict with, result in a
breach of, or constitute a default under the Amended Articles
of Incorporation or Regulations of the Company or the terms of
any indenture, other agreement or instrument known to such
counsel and to which the Company is a party or bound, or any
order or regulation known to such counsel to be applicable to
the Company of any court, regulatory body, administrative
agency, governmental body or arbitrator having jurisdiction
over the Company; and
(ix) to the best knowledge of such counsel, no
holders of securities of the Company have rights to the
registration of such securities under the Registration
Statement.
In rendering such opinion, such counsel may rely (A) as to matters
involving the application of laws of any jurisdiction other than the
State of Ohio or the United States, to the extent deemed proper and
specified in such opinion, upon the opinion of other counsel of good
standing believed to be reliable and who are satisfactory to counsel
for the Underwriters; (B) as to matters relating to that portion of the
Company that constituted BDM International, Inc. ("BDM") prior to its
purchase by the Company, upon the opinion of other counsel who have
represented BDM or on certificates of
8
<PAGE> 9
individuals who had been officers of BDM prior to its purchase by the
Company; and (C) as to matters of fact, to the extent deemed proper, on
certificates of responsible officers of the Company and public
officials.
(c) The Representatives shall have received from Cravath,
Swaine & Moore, counsel for the Underwriters, such opinion or opinions,
dated the Closing Date, with respect to the issuance and sale of the
Securities, the Indenture, any Delayed Delivery Contracts, the
Registration Statement, the Prospectus and other related matters as the
Representatives may reasonably require, and the Company shall have
furnished to such counsel such documents as they may reasonably request
for the purpose of enabling them to pass upon such matters.
(d) The Company shall have furnished to the Representatives a
certificate of the Company, signed by two executive officers of the
Company, one of whom shall be the principal financial officer,
treasurer or controller of the Company, dated the Closing Date, to the
effect that the signers of such certificate have carefully examined the
Registration Statement, the Prospectus and this Agreement and that:
(i) the representations and warranties of the Company
in this Agreement are true and correct in all material
respects on and as of the Closing Date with the same effect as
if made on the Closing Date and the Company has complied with
all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the Closing
Date;
(ii) no stop order suspending the effectiveness of
the Registration Statement, as amended, has been issued and no
proceedings for that purpose have been instituted or, to the
Company's knowledge, threatened; and
(iii) since the date of the most recent financial
statements included in the Prospectus, there has been no
material adverse change in the condition (financial or other),
earnings, business or properties of the Company and its
subsidiaries taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set
forth in or contemplated in the Prospectus.
(e) At the Closing Date, Ernst & Young LLP shall have
furnished to the Representatives a letter or letters (which may refer
to letters previously delivered to one or more of the Representatives),
dated as of the Closing Date, in form and substance satisfactory to the
Representatives, confirming that they are independent accountants
within the meaning of the Act and the Exchange Act and the respective
applicable published rules and regulations thereunder and stating in
effect that:
(i) in their opinion the audited financial statements
and financial statement schedules included or incorporated in
the Registration Statement and the Prospectus and reported on
by them comply as to form in all material respects with the
applicable accounting requirements of the Act and the Exchange
Act and the related published rules and regulations;
9
<PAGE> 10
(ii) on the basis of a reading of the latest
unaudited financial statements made available by the Company
and its subsidiaries; carrying out certain specified
procedures (but not an examination in accordance with
generally accepted auditing standards) which would not
necessarily reveal matters of significance with respect to the
comments set forth in such letter; a reading of the minutes of
the meetings of the stockholders, directors and executive
committees of the Company; and inquiries of certain officials
of the Company who have responsibility for financial and
accounting matters of the Company and its subsidiaries as to
transactions and events subsequent to the date of the most
recent financial statements incorporated in the Registration
Statement, as amended, and the Prospectus, as amended or
supplemented, nothing came to their attention which caused
them to believe that:
(1) any unaudited financial statements
included or incorporated in the Registration
Statement and the Prospectus do not comply as to form
in all material respects with applicable accounting
requirements and with the published rules and
regulations of the Commission with respect to
financial statements included or incorporated in
quarterly reports on Form 10-Q under the Exchange
Act; and said unaudited financial statements are not
in conformity with generally accepted accounting
principles applied on a basis substantially
consistent with that of the audited financial
statements included or incorporated in the
Registration Statement and the Prospectus;
(2) with respect to the period subsequent to
the date of the most recent financial statements
incorporated in the Registration Statement and the
Prospectus, there were any changes, at a specified
date not more than five business days prior to the
date of the letter, in the long-term debt of the
Company and its subsidiaries or capital stock of the
Company or decreases in the shareholders' investment
of the Company as compared with the amounts shown on
the most recent consolidated balance sheet included
or incorporated in the Registration Statement and the
Prospectus, or for the period from the date of the
most recent financial statements incorporated in the
Registration Statement and the Prospectus to such
specified date there were any decreases, as compared
with the corresponding period in the preceding year,
in net sales and other income, in earnings from
continuing operations before income taxes or in total
or per share amounts (primary and fully diluted) of
earnings from continuing operations or net earnings,
of the Company and its subsidiaries, except in all
instances for changes or decreases set forth in such
letter, in which case the letter shall be accompanied
by an explanation by the Company as to the
significance thereof unless said explanation is not
deemed necessary by the Representatives;
(3) the amounts included in any unaudited
"capsule" information included or incorporated in the
Registration Statement and the Prospectus do not
agree with the amounts set forth in the unaudited
financial statements for the same periods or were not
determined on a basis substantially consistent with
that of the corresponding amounts in the audited
financial statements included or incorporated in the
Registration Statement and the Prospectus; and
10
<PAGE> 11
(iii) they have performed certain other specified
procedures as a result of which they determined that certain
information of an accounting, financial or statistical nature
(which is limited to accounting, financial or statistical
information derived from the general accounting records of the
Company) set forth in the Registration Statement, as amended,
and the Prospectus, as amended or supplemented, and in Exhibit
12 to the Registration Statement, including the information
included or incorporated in Item 1 (excluding information
relating to backlog) and Items 6 and 7 of the Company's Annual
Report on Form 10-K incorporated therein, and the information
included in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" included or
incorporated in the Company's Quarterly Reports on Form 10-Q,
incorporated in the Registration Statement and the Prospectus,
agrees with the accounting records of the Company and its
subsidiaries, excluding any questions of legal interpretation;
and
(iv) if pro forma financial information is included
or incorporated in the Registration Statement and the
Prospectus, on the basis of a reading of the unaudited pro
forma financial information, carrying out certain specified
procedures, inquiries of certain officials of the Company who
have responsibility for financial and accounting matters, and
proving the arithmetic accuracy of the application of the pro
forma adjustments to the historical amounts in the pro forma
financial information, nothing came to their attention which
caused them to believe that the pro forma financial
information does not comply in form in all material respects
with the applicable accounting requirements of Rule 11-02 of
Regulation S-X or that the pro forma adjustments have not been
properly applied to the historical amounts in the compilation
of such statements.
References to the Registration Statement and the Prospectus in
this paragraph (e) are to such documents as amended and supplemented at
the date of the letter.
In addition, except as provided in Schedule I hereto, at the
time this Agreement is executed, Ernst & Young LLP shall have furnished
to the Representatives a letter or letters, dated the date of this
Agreement, in form and substance satisfactory to the Representatives,
to the effect set forth above.
(f) Subsequent to the respective dates as of which information
is given in the Registration Statement and the Prospectus, there shall
not have been (i) any change or decrease specified in the letter or
letters referred to in paragraph (e) of this Section 5 or (ii) any
change, or any development involving a prospective change, in or
affecting the business or properties of the Company and its
subsidiaries, taken as a whole, the effect of which in any case
referred to in clause (i) or (ii) above, is, in the judgment of [the
lead Representative], so material and adverse as to make it impractical
or inadvisable to proceed with the offering or the delivery of the
Purchased Securities as contemplated by the Registration Statement and
the Prospectus.
(g) Subsequent to the execution of this Agreement, the rating
assigned by any nationally recognized securities rating agency to any
debt securities of the Company as of the date of this Agreement shall
not have been lowered nor shall any such rating agency have publicly
announced
11
<PAGE> 12
that it has placed any debt securities of the Company on what is
commonly termed a "watch list" for possible downgrading.
(h) Prior to the Closing Date, the Company shall have
furnished to the Representatives such further information, certificates
and documents as the Representatives may reasonably request.
(i) The Company shall have accepted Delayed Delivery Contracts
in any case where sales of Contract Securities arranged by the
Underwriters have been approved by the Company.
If any of the conditions specified in this Section 5 shall not have
been fulfilled in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Representatives and their counsel, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time
prior to, the Closing Date by the Representatives. Notice of such cancellation
shall be given to the Company in writing or by telephone or telegraph confirmed
in writing.
6. Reimbursement of Underwriters' Expenses. If the sale of the
Purchased Securities provided for herein is not consummated because any
condition to the obligations of the Underwriters set forth in Section 5 hereof
is not satisfied or because of any refusal, inability or failure on the part of
the Company to perform any agreement herein or comply with any provision hereof
other than by reason of a default by any of the Underwriters, the Company will
reimburse the Underwriters severally upon demand for all reasonable
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been incurred by them in connection with the proposed purchase
and sale of the Securities but the Company shall be under no further liability
to the Underwriters with respect to such Securities except as provided in
Section 7 hereof.
7. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Underwriter and each person who controls any
Underwriter within the meaning of either the Act or the Exchange Act against any
and all losses, claims, damages or liabilities, joint or several (including
amounts paid in settlement of any litigation if such settlement is effected with
the written consent of the Company), to which they or any of them may become
subject under the Act, the Exchange Act or other Federal or state statutory law
or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement for the registration of the Securities
as originally filed or in any amendment thereof, or in the Basic Prospectus or
the Prospectus, or in any amendment thereof or supplement thereto, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and agrees to reimburse each such indemnified party for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that (i) the Company will not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through
the Representatives specifically for use in connection with the preparation
thereof, and (ii) such indemnity with
12
<PAGE> 13
respect to the Basic Prospectus or any Prospectus shall not inure to the benefit
of any Underwriter (or any person controlling such Underwriter) from whom the
person asserting any such loss, claim, damage or liability purchased the
Securities which are the subject thereof if such person did not receive a copy
of the Prospectus (as amended or supplemented) excluding documents incorporated
therein by reference at or prior to the confirmation of the sale of such
Securities to such person in any case where such delivery is required by the Act
and the untrue statement or omission of a material fact contained in the
Prospectus was corrected in the Prospectus (as amended or supplemented). This
indemnity agreement will be in addition to any liability which the Company may
otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the
Registration Statement, and each person who controls the Company within the
meaning of either the Act or the Exchange Act to the same extent as the
foregoing indemnity from the Company to each Underwriter, but only with
reference to written information relating to such Underwriter furnished to the
Company by or on behalf of such Underwriter through the Representatives
specifically for use in the preparation of the documents referred to in the
foregoing indemnity. This indemnity agreement will be in addition to any
liability which any Underwriter may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 7
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party, under
this Section 7, notify the indemnifying party in writing of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party, otherwise than
under this Section 7. In case any such action is brought against any indemnified
party, and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein, and to the extent
that it may elect by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party;
provided, however, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party, or parties shall
have the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party
to such indemnified party of its election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 7 for any legal
or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof unless (i) the indemnified party shall have employed
separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel, approved by the Representatives in the case of
paragraph (a) of this Section 7, representing the indemnified parties under such
paragraph (a) who are parties to such action), (ii) the indemnifying party shall
not have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the
action or (iii) the indemnifying party has authorized the employment of counsel
for the indemnified party at the expense of the indemnifying party; and except
that, if clause (i) or (iii) is applicable, such liability shall be only in
respect of the counsel referred to in such clause (i) or (iii).
13
<PAGE> 14
(d) If the indemnification provided for in this Section 7 is
unavailable to an indemnified party under paragraphs (a) or (b) hereof or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then each indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and the Underwriters on the other from the
offering of the Purchased Securities or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand and of the
Underwriters on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative benefits received by the Company
on the one hand and the Underwriters on the other in connection with the
offering of the Purchased Securities shall be deemed to be in the same
proportion as the total net proceeds from the offering of such Purchased
Securities (before deducting expenses) received by the Company bear to the total
underwriting discounts and commissions received by the Underwriters in respect
thereof. The relative fault of the Company on the one hand and of the
Underwriters on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Underwriters and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, no Underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Purchased Securities underwritten and distributed to the
public by such Underwriter were offered to the public exceeds the amount of any
damages which such Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters' obligations to
contribute pursuant to this Section 7 are several, in proportion to the
respective principal amounts of Purchased Securities purchased by each of such
Underwriters, and not joint.
8. Default by an Underwriter. If any one or more Underwriters shall
fail to purchase and pay for any of the Purchased Securities agreed to be
purchased by such Underwriter or Underwriters hereunder and such failure to
purchase shall constitute a default in the performance of its or their
obligations under this Agreement, the remaining Underwriters shall be obligated
severally to take up and pay for (in the respective proportions which the amount
of Purchased Securities set forth opposite their names in Schedule II hereto
bears to the aggregate amount of Purchased Securities set forth opposite their
names of all the remaining Underwriters) the Purchased Securities which the
defaulting Underwriter or Underwriters agreed but failed to purchase; provided,
however, that in the event that the aggregate amount of Purchased Securities
which the defaulting Underwriter or Underwriters agreed but failed to purchase
shall exceed 10% of the aggregate
14
<PAGE> 15
amount of Purchased Securities set forth in Schedule II hereto, the remaining
Underwriters shall have the right to purchase all, but shall not be under any
obligation to purchase any, of the Purchased Securities, and if such
nondefaulting Underwriters do not purchase all the Purchased Securities, this
Agreement will terminate without liability to any nondefaulting Underwriter or
the Company. In the event of a default by any Underwriter as set forth in this
Section 8, the Closing Date shall be postponed for such period, not exceeding
seven days, as the Representatives shall determine in order that the required
changes in the Registration Statement and the Prospectus or in any other
documents or arrangements may be effective. Nothing contained in this Agreement
shall relieve any defaulting Underwriter of its liability, if any, to the
Company and any nondefaulting Underwriter for damages occasioned by its default
hereunder.
9. Termination. (a) This Agreement may be terminated for any reason, at
any time by either the Company with respect to any Underwriter or any
Underwriter with respect to itself, upon the giving of thirty (30) days' written
notice of such termination to each other party hereto.
(b) An Underwriter may terminate this Agreement, immediately
upon notice to the Company, at any time prior to the Closing Date (i)
if there has been, since the date of this Agreement or since the
respective dates as of which information is given in the Registration
Statement, any change, or any development involving a prospective
change, in or affecting the business or properties of the Company and
its subsidiaries, shall have occurred the effect of which is, in the
judgment of [the lead Representative], so material and adverse to the
Company and its subsidiaries taken as a whole as to make it impractical
or inadvisable to proceed with the delivery of such Debt Securities or
(ii) if there shall have occurred any material adverse change in the
financial markets in the United States or any outbreak or escalation of
hostilities or other national or international calamity or crisis, the
effect of which shall be such as to make it, in the judgment of [the
lead Representative] impracticable to market the Debt Securities or
enforce contracts for the sale of the Debt Securities, or (iii) if
trading in any securities of the Company shall have been suspended by
the Commission or a national securities exchange, or if trading
generally on either the American Stock Exchange or the New York Stock
Exchange shall have been suspended, or minimum or maximum prices for
trading shall have been fixed, or maximum ranges for prices for
securities shall have been required, by either of said exchanges or by
order of the Commission or any other governmental authority, or if a
banking moratorium shall have been declared by either Federal or New
York authorities or if a banking moratorium shall have been declared by
the relevant authorities in the country or countries of origin of any
foreign currency or currencies in which the Debt Securities are
denominated or payable, or (iv) if the rating assigned by any
nationally recognized securities rating agency to any debt securities
of the Company as of the date of this Agreement shall have been lowered
since that date or if any such rating agency shall have publicly
announced that it has placed any debt securities of the Company on what
is commonly termed a "watch list" for possible downgrading, or (v) if
there shall have come to the attention of such Underwriter any facts
that would cause you to believe that the Prospectus, at the time it was
required to be delivered to a purchaser of Debt Securities, contained
an untrue statement of a material fact or omitted to state a material
fact necessary in order to make the statements therein, in the light of
the circumstances existing at the time of such delivery, not
misleading.
(c) In the event of any termination pursuant to paragraph (a),
neither party will have any liability to the other party hereto, except
that (i) each Underwriter shall be entitled to any
15
<PAGE> 16
commissions earned in accordance with this Agreement, (ii) if at the
time of termination (a) you shall own any Debt Securities purchased
pursuant to this Agreement with the intention of reselling them or (b)
an offer to purchase any of the Debt Securities has been accepted by
the Company but the time of delivery to the purchaser or his agent of
the Debt Securities relating thereto has not occurred, the covenants
set forth in Section 4 hereof shall remain in effect until such Debt
Securities are so resold or delivered, as the case may be, and (iii)
the provisions of Section 4(d) hereof, the indemnity and contribution
agreements set forth in Section 7 hereof and the provisions of Sections
10 and 12 hereof shall remain in effect.
10. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Underwriters set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company or any of
the officers, directors or controlling persons referred to in Section 7 hereof,
and will survive delivery of and payment for the Purchased Securities. The
provisions of Sections 6 and 7 hereof shall survive the termination or
cancellation of this Agreement.
11. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telecopied (with confirmation of receipt) to them, at the address
specified in Schedule I hereto; or, if sent to the Company, will be mailed,
delivered or telecopied (with confirmation of receipt) to it at 1900 Richmond
Road, Cleveland, Ohio 44124, attention of the Secretary (facsimile number (216)
291-7070).
12. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 7 hereof, and no
other person will have any right or obligation hereunder.
13. Applicable Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York.
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the several Underwriters.
Very truly yours,
TRW Inc.
By:
--------------------------------------
[Title]
The foregoing Agreement is hereby confirmed
and accepted as of the date specified in
Schedule I hereto.
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<PAGE> 17
[Representatives]
For themselves and the other several
Underwriters named in Schedule II to the
foregoing Agreement.
17
<PAGE> 18
SCHEDULE I
Underwriting Agreement dated
Registration Statement No. 333-______
Representative(s):
Title, Purchase Price, Currency and Description of Debt Securities:
Title:
Principal amount and currency:
Purchase price and currency (include accrued
interest or amortization, if applicable):
Offering price and currency (include accrued
interest or amortization, if applicable):
Sinking fund provisions:
Redemption provisions:
Other provisions:
Description of Warrants:
Title of Warrant Agreement:
Warrant Agent: Warrant exercise price, currency and date:
Principal amount and currency of Warrant Securities issuable upon
exercise of one Warrant:
Date after which Warrants may be exercised:
Expiration date:
Detachable date:
Description of Warrant Securities:
Title:
Principal amount and currency:
Purchase price and currency:
Sinking fund provisions:
Redemption provisions:
Other provisions:
Closing Date, Time and Location:
Delayed Delivery Arrangements:
Fee:
Minimum principal amount of each contract:
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<PAGE> 19
Maximum aggregate principal amount of all contracts:
Modification of items to be covered by the letter from Ernst & Young LLP
delivered pursuant to Section 5(e) at the time this Agreement is
executed:
19
<PAGE> 20
SCHEDULE II
PRINCIPAL AMOUNT
OF SECURITIES TO
UNDERWRITERS BE PURCHASED
- --------------------------------------------------------------------------
--------
Total
========
20
<PAGE> 21
SCHEDULE III
DELAYED DELIVERY CONTRACT
, 19
[Insert name and address
of lead Representative]
Dear Sirs:
The undersigned hereby agrees to purchase from TRW Inc. (the
"Company"), and the Company agrees to sell to the undersigned, on _________,
____, (the "Delivery Date"), [specified currency and amount] principal amount of
the Company's ___________ (the "Securities") offered by the Company's Basic
Prospectus dated _________, ____, and related Prospectus Supplement dated
_________, ____, receipt of a copy of which is hereby acknowledged, at a
purchase price of ____% of the principal amount thereof, plus accrued if any,
thereon from _________, ____, to the date of payment and delivery, and on the
further terms and conditions set forth in this contract.
Payment for the Securities to be purchased by the undersigned shall be
made on or before 11:00 AM on the Delivery Date to or upon the order of the
Company in federal or other funds immediately available in New York City, at
your office or at such other place as shall be agreed between the Company and
the undersigned, upon delivery to the undersigned of the Securities in
definitive fully registered form and in such authorized denominations and
registered in such names as the undersigned may request by written or
telegraphic communication addressed to the Company not less than five full
business days prior to the Delivery Date. If no request is received, the
Securities will be registered in the name of the undersigned and issued in a
denomination equal to the aggregate principal amount of Securities to be
purchased by the undersigned on the Delivery Date.
The obligation of the undersigned to take delivery of and make payment
for Securities on the Delivery Date, and the obligation of the Company to sell
and deliver Securities on the Delivery Date, shall be subject to the conditions
(and neither party shall incur any liability by reason of the failure thereof)
that (1) the purchase of Securities to be made by the undersigned, which
purchase the undersigned represents is not prohibited on the date hereof, shall
not on the Delivery Date be prohibited under the laws of the jurisdiction to
which the undersigned is subject, and (2) the Company, on or before the Delivery
Date, shall have sold to certain underwriters (the "Underwriters") such
principal amount of the Securities as is to be sold to them pursuant to the
Underwriting Agreement referred to in the Basic Prospectus and Prospectus
Supplement mentioned above. Promptly after completion of such sale to the
Underwriters, the Company will mail or deliver to the undersigned at its address
set forth below notice to such effect, accompanied by a copy of the opinion of
counsel for the Company delivered to the Underwriters in connection therewith.
The obligation of the undersigned to take delivery of and make payment for the
Securities, and the obligation of the Company to cause the Securities to be sold
and delivered, shall not be affected by the failure of any purchaser to take
delivery of and make payment for the Securities pursuant to other contracts
similar to this contract.
21
<PAGE> 22
This contract will inure to the benefit of and be binding upon the
parties hereto and their respective successors, but will not be assignable by
either party hereto without the written consent of the other.
22
<PAGE> 23
It is understood that acceptance of this contract and other similar
contracts is in the Company's sole discretion and, without limiting the
foregoing, need not be on a first come, first served basis. If this contract is
acceptable to the Company, it is required that the Company sign the form of
acceptance below and mail or deliver one of the counterparts hereof to the
undersigned at its address set forth below. This will become a binding contract
between the Company and the undersigned, as of the date first above written,
when such counterpart is so mailed or delivered.
This agreement shall be governed by and construed in accordance with
the laws of the State of New York.
Very truly yours,
(Name of Purchaser)
By
------------------------------------------
(Signature and Title of Officer)
(Address)
Accepted:
TRW Inc.
By
-----------------------------------
(Authorized Signature)
23
<PAGE> 1
EXHIBIT 4(f)
TRW INC.
FORM OF DEBT WARRANT AGREEMENT [FOR DEBT WARRANTS SOLD ATTACHED TO DEBT
SECURITIES]*
WARRANT AGREEMENT dated as of _____________________ between TRW Inc.,
an Ohio corporation (hereinafter called the "Company", which term includes any
successor corporation under the Indenture hereinafter referred to) and
__________________________________________________________________________ as
Warrant Agent (herein called the "Warrant Agent").
WHEREAS, the Company has entered into an Indenture dated as of May 1,
1986, as supplemented (the "Indenture"), with The Chase Manhattan Bank (National
Association), as successor trustee (the "Trustee"), providing for the issuance
from time to time of its unsecured debentures, notes or other evidences of
indebtedness (the "Debt Securities"), to be issued in one or more series as
provided in the Indenture; and
WHEREAS, the Company proposes to sell [title of the Debt Securities
being offered] (the "Offered Securities") with warrant certificates evidencing
one or more warrants (the "Warrants" or individually a "Warrant") representing
the right to purchase [title of the Debt Securities purchasable through exercise
of Warrants] (the "Warrant Securities"), such warrant certificates and other
warrant certificates issued pursuant to this Agreement being herein called the
"Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company in connection with the issuance, exchange, exercise and replacement of
the Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and
conditions on which they may be issued, exchanged, exercised and replaced.
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:
ARTICLE I
ISSUANCE OF WARRANTS AND EXECUTION
AND DELIVERY OF WARRANT CERTIFICATES.
SECTION 1.01. Issuance of Warrants. Warrants shall be initially issued
in connection with the issuance of the Offered Securities [but shall be
separately transferable on and after___________ , 19___ (the "Detachable Date")]
[and shall not be separately transferable] and each Warrant Certificate shall
evidence one or more Warrants. Each Warrant evidenced thereby shall represent
- ----------
* Monetary amounts may be in U.S. dollars or in foreign denominated
currency or units consisting of multiple currencies.
<PAGE> 2
the right, subject to the provisions contained herein and therein, to purchase a
Warrant Security in the principal amount of [specified currency and amount].
Warrant Certificates shall be initially issued in units with the Offered
Securities and each Warrant Certificate included in such a unit shall evidence
_________ Warrants for each [specified currency and amount] principal amount of
Offered Securities included in such unit.
SECTION 1.02. Execution and Delivery of Warrant Certificates. Each
Warrant Certificate, whenever issued, shall be in [bearer] [registered] form
substantially in the form set forth in Exhibit A hereto, shall be dated _______
and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the officers of the Company executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which the Warrants may be
listed, or to conform to usage. The Warrant Certificates shall be signed on
behalf of the Company by [its Chairman of the Board, its President, one of its
Vice Presidents, its Treasurer or one of its Assistant Treasurers] under its
corporate seal and attested by its Secretary or one of its Assistant
Secretaries. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.
No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature by
the Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence that the Warrant Certificate so countersigned has been duly
issued hereunder.
In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent, such Warrant Certificates may
be countersigned and delivered notwithstanding that the person who signed such
Warrant Certificates ceased to be such officer of the Company, and any Warrant
Certificate may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Warrant Certificate, shall be the proper
officers of the Company, although at the date of the execution of this Agreement
any such person was not such officer.
[If bearer Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean [If Offered Securities with Warrants
which are not immediately detachable -- prior to the Detachable Date, the
registered owner of the Offered Security to which such Warrant Certificate was
initially attached (or the bearer if the Offered Security is a bearer Security),
and after such Detachable Date] the bearer of such Warrant Certificate.]
[If registered Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean any person in whose name at the time any
Warrant Certificate shall be registered
2
<PAGE> 3
upon the books to be maintained by the Warrant Agent for that purpose. [If
Offered Securities with Warrants which are not immediately detachable -- or upon
the register of the Offered Securities prior to the Detachable Date. The Company
will, or will cause the registrar of the Offered Securities to, make available
at all times to the Warrant Agent such information as to holders of the Offered
Securities with Warranties as may be necessary to keep the Warrant Agent's
records up to date.]]
SECTION 1.03. Issuance of Warrant Certificates. Warrant Certificates
evidencing the right to purchase an aggregate principal amount not exceeding
[specified currency and amount] aggregate principal amount of Warrant Securities
(except as provided in Sections 1.04, 2.03(c). 3.02 and 4.01) may be executed by
the Company and delivered to the Warrant Agent upon the execution of this
Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon
receipt of Warrant Certificates duly executed on behalf of the Company,
countersign Warrant Certificates evidencing Warrants representing the right to
purchase up to [specified currency and amount] aggregate principal amount of
Warrant Securities and shall deliver such Warrant Certificates to or upon the
order of the Company. Subsequent to such original issuance of the Warrant
Certificates, the Warrant Agent shall countersign a Warrant Certificate only if
the Warrant Certificate is issued in exchange or substitution for one or more
previously countersigned Warrant Certificates [If registered Warrants -- or in
connection with their transfer], as hereinafter provided or as provided in
Section 2.03(c).
SECTION 1.04. Temporary Warrant Certificates. Pending the preparation
of definitive Warrant Certificates, the Company may execute, and upon the order
of the Company, the Warrant Agent shall authenticate and deliver, temporary
Warrant Certificates which are printed, lithographed, typewritten, mimeographed
or otherwise produced substantially of the tenor of the definitive Warrant
Certificate in lieu of which they are issued and with such insertions,
omissions, substitutions and other variations as the officers executing such
Warrant Certificate may determine as appropriate, as evidenced by their
execution of such Warrant Certificates.
If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay. After
the preparation of definitive Warrant Certificates, the temporary Warrant
Certificates shall be exchangeable for definitive Warrant Certificates upon
surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or __________________], without charge to the holders. Upon
surrender for cancellation of any one or more temporary Warrant Certificates the
Company shall execute and the Warrant Agent shall authenticate and deliver in
exchange therefor definitive Warrant Certificates representing the same
aggregate number of Warrants. Until so exchanged, the temporary Warrant
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Warrant Certificates.
3
<PAGE> 4
ARTICLE II
WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS.
SECTION 2.01. Warrant Price. On ____________, 19___ the exercise
price of each Warrant is [specified currency and amount]. During the period from
_____________, 19___, through and including ____________, 19___, the exercise
price of each Warrant will be [specified currency and amount] plus [accrued
amortization of the original issue discount] [accrued interest] from
____________, 19___. On ____________, 19___, the exercise price of each Warrant
will be [specified currency and amount]. During the period from ____________,
19___, through and including ____________, 19___, the exercise price of each
Warrant will be [specified currency and amount] plus [accrued amortization of
the original issue discount] [accrued interest] from ____________, 19___. [In
each case, the original issue discount will be amortized at a ____% annual rate,
computed on an annual basis using a 360-day year consisting of twelve 30-day
months]. Such purchase price of Warrant Securities is referred to in this
Agreement as the "Warrant Price". [The original issue discount for each
[specified currency and amount] principal amount of Warrant Securities is
[specified currency and amount].]
SECTION 2.02. Duration of Warrants. Each Warrant may be exercised in
whole at any time, as specified herein, on or after [the date thereof] [
____________, 19___] and at or before 5 P.M. New York time on ____________,
19___ (the "Expiration Date"). Each Warrant not exercised at or before the close
of business on the Expiration Date shall become void, and all rights of the
holder of the Warrant Certificate evidencing such Warrant under this Agreement
shall cease.
SECTION 2.03. Exercise of Warrants. (a) During the period specified in
Section 2.02, any whole number of Warrants may be exercised by providing certain
information set forth on the reverse side of the Warrant Certificate and by
paying in full, [in lawful money of the United States of America,] [in cash or
by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] [in immediately available funds] the Warrant
Price for each Warrant exercised, to the Warrant Agent at its corporate trust
office [or at ___________], provided that such exercise is subject to receipt
within five business days of such [payment] [wire transfer] by the Warrant Agent
of the Warrant Certificate with the form of election to purchase Warrant
Securities set forth on the reverse side of the Warrant Certificate properly
completed and duly executed. The date on which payment in full of the Warrant
Price is received by the Warrant Agent shall, subject to receipt of the Warrant
Certificate as aforesaid, be deemed to be the date on which the Warrant is
exercised. The Warrant Agent shall deposit all funds received by it in payment
of the Warrant Price in an account of the Company maintained with it [if
non-dollar denominated funds -- or in such other account designated by the
Company] and shall advise the Company by telephone at the end of each day on
which a [payment] [wire transfer] for the exercise of Warrants is received of
the amount so deposited to its account. The Warrant Agent shall promptly confirm
such telephone advice to the Company in writing.
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company and the Trustee under the Indenture of (i) the
number of Warrants exercised, (ii) the instructions of each holder of the
Warrant Certificates evidencing such Warrants with respect to
4
<PAGE> 5
delivery of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any,
of the Warrants remaining after such exercise, and (iv) such other information
as the Company or the Trustee shall reasonably require.
(c) As soon as practicable after the exercise of any Warrant, the
Company shall issue, pursuant to the Indenture, in authorized denominations to
or upon the order of the holder of the Warrant Certificate evidencing such
Warrant, the Warrant Securities to which such holder is entitled, [in fully
registered form, registered in such name or names] [in bearer form] as may be
directed by such holder* [;provided, however, that the Company shall not be
required to deliver any unregistered Warrant Securities in the United States].
If fewer than all of the Warrants evidenced by such Warrant Certificate are
exercised, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, a new Warrant Certificate
evidencing the number of such Warrants remaining unexercised.
(d) The Company shall not be required to pay any stamp or other tax or
other governmental charge required to be paid in connection with any transfer
involved in the issue of the Warrant Securities, and in the event that any such
transfer is involved, the Company shall not be required to issue or deliver any
Warrant Security until such tax or other charge shall have been paid or it has
been established to the Company's satisfaction that no such tax or other charge
is due.
[(e) Issuance of unregistered Warrant Securities upon exercise of
Warrants shall be subject to such arrangements and procedures designed pursuant
to then applicable laws and regulations to ensure that unregistered Warrant
Securities are sold, transferred and paid only in compliance with such laws as
shall be provided by the Company pursuant to Section 3.12 of the Indenture.]
SECTION 3.04. Merger, Consolidation, Conveyance, Transfer or Lease. If
at any time there shall be a merger, consolidation, conveyance, transfer or
lease of assets subject to Section 12.01 of the Indenture, then in any such
event the successor or assuming corporation referred to therein shall succeed to
and be substituted for the Company, with the same effect, subject to the
Indenture, as if it had been named herein and in the Warrant as the Company; the
Company shall thereupon be relieved of any further obligation hereunder or under
the Warrants, and the Company as the predecessor corporation may thereupon or at
any time thereafter be dissolved, wound up or liquidated. Such successor or
assuming corporation thereupon may cause to be signed, and may issue either in
its own name or in the name of the Company, any or all of the Warrants issuable
hereunder that theretofore shall not have been signed by the Company, and may
execute and deliver Warrant Securities in its own name pursuant to such
Indenture, in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such consolidation, merger, conveyance, transfer or lease, such
changes in phraseology and form (but not in substance) may be made in the
Warrants thereafter to be issued as may be appropriate.
- --------
* Subject to change in accordance with changes in tax laws and
regulations.
5
<PAGE> 6
The Warrant Agent may receive a written opinion of legal counsel as
conclusive evidence that any such consolidation, merger, conveyance, transfer or
lease complies with the provisions of this Section 3.04 and the Indenture.
ARTICLE III
OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES.
SECTION 3.01. No Rights as Warrant Securityholder Conferred by Warrants
or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the holder thereof to any of the rights of a holder of Warrant
Securities, including, without limitation, the right to receive the payment of
principal of, premium, if any, or interest on Warrant Securities or to enforce
any of the covenants in the Indenture.
SECTION 3.02. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon the
issuance of any new Warrant Certificate under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this Section
in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an
additional contractual obligation of the Company, whether or not the lost,
stolen or destroyed Warrant Certificate shall be at any time enforceable by
anyone, and shall be entitled to the benefits of this Agreement equally and
proportionately with any and all other Warrant Certificates duly executed and
delivered hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.
SECTION 3.03. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a Warrant
Certificate, without the consent of the Warrant Agent, the Trustee, the holder
of any Warrant Securities or the holder of any other Warrant Certificate, may,
in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company suitable to enforce
or otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
6
<PAGE> 7
ARTICLE IV
EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES.
SECTION 4.01. Exchange and Transfer of Warrant Certificates. [If
Offered Securities with Warrants which are immediately detachable -- Upon] [If
Offered Securities with Warrants which are not immediately detachable -- Prior
to the Detachable Date a Warrant Certificate may be exchanged or transferred
only together with the Offered Security to which the Warrant Certificate was
initially attached, and only for the purpose of effecting or in conjunction with
an exchange or transfer of such Offered Security. Prior to the Detachable Date,
each transfer of the Offered Security [on the register of the Offered
Securities] shall operate also to transfer the related Warrant Certificates.
After the Detachable Date upon] surrender at the corporate trust office of the
Warrant Agent [or _______________], Warrant Certificates evidencing Warrants may
be exchanged for Warrant Certificates in other denominations evidencing such
Warrants [If registered Warrants -- or the transfer thereof may be registered in
whole or in part]; provided that such other Warrant Certificates evidence the
same aggregate number of Warrants as the Warrant Certificates so surrendered.
[If registered Warrants -- The Warrant Agent shall keep, at its corporate trust
office [and at ___________], books in which, subject to such reasonable
regulations as it may prescribe, it shall register Warrant Certificates and
exchanges and transfers of outstanding Warrant Certificates, upon surrender of
the Warrant Certificates to the Warrant Agent at its corporate trust office [or
__________] for exchange [or registration of transfer], properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent.] No service charge shall be made for any exchange [or
registration of transfer] of Warrant Certificates, but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange [or
registration of transfer]. Whenever any Warrant Certificates are so surrendered
for exchange [or registration of transfer] an authorized officer of the Warrant
Agent shall manually countersign and deliver to the person or persons entitled
thereto a Warrant Certificate or Warrant Certificates duly authorized and
executed by the Company, as so requested. The Warrant Agent shall not be
required to effect any exchange [or registration of transfer] which will result
in the issuance of a Warrant Certificate evidencing a fraction of a Warrant, a
number of full Warrants and a fraction of a Warrant. All Warrant Certificates
issued upon any exchange [or registration of transfer] of Warrant Certificates
shall be the valid obligations of the Company, evidencing the same obligations,
and entitled to the same benefits under this Agreement, as the Warrant
Certificates surrendered for such exchange [or registration of transfer].
SECTION 4.02. Treatment of Holders of Warrant Certificates. [If Offered
Securities with bearer Warrants which are not immediately detachable -- Subject
to Section 4.01, each] [If Offered Securities with bearer Warrants which are
immediately detachable -- Each] Warrant Certificate shall be transferable by
delivery and shall be deemed negotiable and the bearer of each Warrant
Certificate may be treated by the Company, the Warrant Agent and all other
persons dealing with such bearer as the absolute owner thereof for any purpose
and as the person entitled to exercise the rights represented by the Warrants
evidenced thereby, any notice to the contrary notwithstanding.] [If registered
Warrants which are not immediately detachable -- Every holder of a Warrant
Certificate, by accepting the same, consents and agrees with the Company, the
Warrant Agent and
7
<PAGE> 8
with every subsequent holder of such Warrant Certificate that until the transfer
of the Warrant Certificate is registered on the books of the Warrant Agent [or
the register of the Offered Securities prior to the Detachable Date], the
Company and the Warrant Agent [or the registrar of the Offered Securities prior
to the Detachable Date], the Company and the Warrant Agent may treat the
registered holder as the absolute owner thereof for any purpose and as the
person entitled to exercise the rights represented by the Warrants evidenced
thereby, any notice to the contrary notwithstanding.]
SECTION 4.03. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange [, registration of transfer] or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu thereof.
The Warrant Agent shall deliver to the Company from time to time or otherwise
dispose of cancelled Warrant Certificates in a manner satisfactory to the
Company.
ARTICLE V
CONCERNING THE WARRANT AGENT.
SECTION 5.01. Warrant Agent. The Company hereby appoints ___________ as
Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth; and
__________ hereby accepts such appointment. The Warrant Agent shall have the
powers and authority granted to and conferred upon it in the Warrant
Certificates and herein and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and provisions
hereof.
SECTION 5.02. Conditions of Warrant Agent's Obligations. The Warrant
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the holders from time to time of the Warrant
Certificates shall be subject:
(a) Compensation and Indemnification. The Company agrees
promptly to pay the Warrant Agent the compensation to be agreed upon
with the Company for all services rendered by the Warrant Agent and to
reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including counsel fees) incurred by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company
also agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, as well as the
costs and expenses of defending any claim of such liability.
8
<PAGE> 9
(b) Agent for the Company. In acting under this Warrant
Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligation or relationship of agency or trust for or with any of the
holders of Warrant Certificates or beneficial owners of Warrants.
(c) Counsel. The Warrant Agent may consult with counsel
satisfactory to it, and the advice of such counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance
with the advice of such counsel.
(d) Documents. The Warrant Agent shall be protected and shall
incur no liability for or in respect of any action taken or thing
suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.
(e) Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have
if it were not the Warrant Agent hereunder, and, to the extent
permitted by applicable law, it or they may engage or be interested in
any financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of holders
of Warrant Securities or other obligations of the Company as freely as
if it were not the Warrant Agent hereunder. Nothing in this Warrant
Agreement shall be deemed to prevent the Warrant Agent from acting as
Trustee under the Indenture or any other indenture of the Company.
(f) No Liability for Interest. The Warrant Agent shall have no
liability for interest on any monies at any time received by it
pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.
(g) No Liability for Invalidity. The Warrant Agent shall have
no liability with respect to any invalidity of this Agreement or any of
the Warrant Certificates.
(h) No Responsibility for Representations. The Warrant Agent
shall not be responsible for any of the recitals or representations
herein or in the Warrant Certificates (except as to the Warrant Agent's
countersignature thereon), all of which are made solely by the Company.
(i) No Implied Obligations. The Warrant Agent shall be
obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or
obligations shall be read into this Agreement or the Warrant
Certificates against the Warrant Agent. The Warrant Agent shall not be
under any obligation to take any action hereunder which may tend to
involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The
Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the
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<PAGE> 10
Company of any of the Warrant Certificates authenticated by the
Warrant Agent and delivered by it to the Company pursuant to this
Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or
responsibility in case of any default by the Company in the
performance of its covenants or agreements contained herein or in the
Warrant Certificates or in the case of the receipt of any written
demand from a holder of a Warrant Certificate with respect to such
default, including, without limiting the generality of the foregoing,
any duty or responsibility to initiate or attempt to
initiate any proceedings at law or otherwise or, except as provided in
Section 6.02 hereof, to make any demand upon the Company.
SECTION 5.03. Resignation and Appointment of Successor. (a) The
Company agrees, for the benefit of the holders from time to time of the Warrant
Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying the date
on which its desired resignation shall become effective; provided, however, that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the date
when it shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a successor
Warrant Agent (which shall be a bank or trust company authorized under the laws
of the jurisdiction of its organization to exercise corporate trust powers) and
the acceptance of such appointment by such successor Warrant Agent. The
obligation of the Company under Section 5.02(a) shall continue to the extent set
forth therein notwithstanding the resignation or removal of the Warrant Agent.
(c) In case at any time the Warrant Agent shall resign, or shall be
removed, or shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or shall file a petition seeking relief under the Federal Bankruptcy
Code, as now constituted or hereafter amended, or under any other applicable
Federal or State bankruptcy law or similar law or make an assignment for the
benefit of its credits or consent to the appointment of a receiver or custodian
of all or any substantial part of its property, or shall admit in writing its
inability to pay or meet its debts as they mature, or if a receiver or custodian
of it or of all or any substantial part of its property shall be appointed, or
if an order of any court shall be entered for relief against it under the
provisions of the Federal Bankruptcy Code, as now constituted or hereafter
amended, or under any other applicable Federal or State bankruptcy law or
similar law, or if any public officer shall have taken charge or control of the
Warrant Agent or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as aforesaid,
shall be appointed by the Company by an instrument in writing, filed with the
successor Warrant Agent. Upon the appointment as aforesaid of a successor
Warrant Agent and acceptance by the successor Warrant Agent of such appointment,
the Warrant Agent shall cease to be a Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an instrument
accepting such appointment hereunder,
10
<PAGE> 11
and thereupon such successor Warrant Agent, without any further act, deed or
conveyance, shall become vested with all the authority, rights, powers, trusts,
immunities, duties and obligations of such predecessor with like effect as if
originally named as Warrant Agent hereunder, and such predecessor, upon payment
of its charges and disbursements then unpaid, shall thereupon become obligated
to transfer, deliver and pay over, and such successor Warrant Agent shall be
entitled to receive, all monies, securities and other property on deposit with
or held by such predecessor, as Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party, or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.
ARTICLE VI
MISCELLANEOUS.
SECTION 6.01. Amendment. This Agreement may be amended by the parties
hereto, without the consent of the holder of any Warrant Certificate, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or making any other provisions with
respect to matters or questions arising under this Agreement as the Company and
the Warrant Agent may deem necessary or desirable; provided that such action
shall not adversely affect the interests of the holders of the Warrant
Certificates.
SECTION 6.02. Notices and Demands to the Company and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
the holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice or demand to
the Company.
SECTION 6.03. Addresses. Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to ___________,
Attention: ______________, and any communication from the Warrant Agent to the
Company with respect to this Agreement shall be addressed to TRW Inc., 1900
Richmond Road, Cleveland, Ohio 44124, Attention: Secretary (or such other
address as shall be specified in writing by the Warrant Agent or by the
Company).
SECTION 6.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by, and
construed in accordance, with the laws of the State of New York.
SECTION 6.05. Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of
11
<PAGE> 12
Warrants (the "Prospectus"), and the Warrant Agent agrees that upon the exercise
of any Warrant, the Warrant Agent will deliver to the holder of the Warrant
Certificate evidencing such Warrant, prior to or concurrently with the delivery
of the Warrant Securities issued upon such exercise, a Prospectus relating to
such Warrant Securities.
SECTION 6.06. Obtaining of Governmental Approvals. The Company will
from time to time take all action which may be necessary to obtain and keep
effective any and all permits, consents and approvals of governmental agencies
and authorities and securities acts filings under United States Federal and
State laws (including without limitation a registration statement in respect of
the Warrants and Warrant Securities under the Securities Act of 1933), which may
be or become requisite in connection with the issuance, sale, transfer and
delivery of the Warrant Securities issued upon exercise of the Warrants or upon
the expiration of the period during which the Warrants are exercisable.
SECTION 6.07. Persons Having Rights under Warrant Agreement. Nothing in
this Agreement shall give to any person other than the Company, the Warrant
Agent and the holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Agreement.
SECTION 6.08. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.
SECTION 6.09. Counterparts. This Agreement may be executed in any
number of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.
SECTION 6.10. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the principal corporate trust office of
the Warrant Agent for inspection by the holder of any Warrant Certificate. The
Warrant Agent may require such holder to submit his Warrant Certificate for
inspection by it.
12
<PAGE> 13
IN WITNESS WHEREOF, each of TRW Inc. and [Warrant Agent] has caused
this Agreement to be signed by one of its duly authorized officers, and its
corporate seal to be affixed hereunto, and the same to be attested by its
Secretary or one of its Assistant Secretaries, all as of the day and year first
above written.
TRW INC.
By
-------------------------------------
Attest:
- --------------------------
By
-------------------------------------
As Warrant Agent
Attest:
- --------------------------
13
<PAGE> 14
EXHIBIT A
(FORM OF WARRANT CERTIFICATE)
(Face of Warrant Certificate)
[Form of Legend if Securities with Prior to ________ this Warrant Certificate
Warrants which are not cannot be transferred or exchanged unless
immediately detachable: attached to a [Title of Offered
Securities].]
[Form of Legend if Warrants are Prior to ________, Warrants evidended by
not immediately exercisable: this Warrant Certificate cannot be
exercised.]
EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT
AGENT AS PROVIDED HEREIN
TRW INC.
WARRANTS TO PURCHASE
[Title of Warrant Securities]
VOID AFTER 5 P.M. NEW YORK TIME ON _________, 19__
[No.] Warrants
This certifies that [the bearer is the] [______________ or registered
assigns is the registered] owner of the above indicated number of Warrants, each
Warrant entitling such [bearer] [owner] to purchase, at any time [after 5 P.M.
New York time on _________, 19__ and] on or before 5 P.M. New York time on
______________, 19__, [specified currency and amount] principal amount of [Title
of Warrant Securities] (the "Warrant Securities"), of TRW Inc. (the "Company"),
issued and to be issued under the Indenture (as hereinafter defined), on the
following basis: [on __________, 19__, the exercise price of each Warrant is
[specified currency and amount]; during the period from _____________, 19__,
through and including _____________, 19__, the exercise price of each Warrant
will be [specified currency and amount] plus [accrued amortization of the
original issue discount] [accrued interest] from ___________, 19__; on
_____________, 19__, the exercise price of each Warrant will be [specified
currency and amount]; during the period from ________, 19__, through and
including ____________, 19__, the exercise price of each Warrant will be
[specified currency and amount] plus [accrued amortization of the original issue
discount] [accrued interest] from ____________, 19__; [in each case, the
original issue discount will be amortized at a ___% annual rate, computed on an
annual basis, using a 360-day year consisting of twelve 20-day months] (the
"Warrant Price"). [The original issue discount for each [specified currency and
amount] principal amount of Warrant Securities is [specified currency and
amount].] The holder may exercise the Warrants evidenced hereby by providing
certain information set forth on the back hereof and by paying in full, [in
lawful money of the United States of America] [in cash or by certified check or
official bank check or by bank wire transfer, in each case,] [by bank wire
transfer] in immediately available funds, the Warrant Price for each Warrant
exercised to the Warrant Agent (as
A-1
<PAGE> 15
hereinafter defined) and by surrendering this Warrant Certificate, with the
purchase form on the back hereof duly executed, at the corporate trust office of
[name of Warrant Agent], or its successor as warrant agent (the "Warrant
Agent"), [or _____________] currently at the address specified on the reverse
hereof, and upon compliance with and subject to the conditions set forth herein
and in the Warrant Agreement (as hereinafter defined).
Any whole number of Warrants evidenced by this Warrant Certificate may
be exercised to purchase Warrant Securities in registered form in denominations
of [specified currency and amount] and any integral multiples thereof. Upon any
exercise of fewer than all the Warrants evidenced by this Warrant Certificate,
there shall be issued to the holder hereof a new Warrant Certificate evidencing
the number of Warrants remaining unexercised.
This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of ___________, 19__ (the "Warrant Agreement")
between the Company and the Warrant Agent and is subject to the terms and
provisions contained in the Warrant Agreement, to all of which terms and
provisions the holder of this Warrant Certificate consents by acceptance hereof.
Copies of the Warrant Agreement are on file at the above-mentioned office of the
Warrant Agent [and at ________________].
The Warrant Securities to be issued and delivered upon the exercise of
the Warrants evidenced by this Warrant Certificate will be issued under and in
accordance with an Indenture dated as of May 1, 1986 (the "Indenture"), between
the Company and Mellon Bank, N.A., a national banking association organized and
existing under the laws of the United States of America, as Trustee (Mellon
Bank, N.A. and any successor to such Trustee being hereinafter referred to as
the "Trustee"), and will be subject to the terms and provisions contained in the
Indenture. [In particular, issuance of unregistered Warrant Securities upon
exercise of Warrants shall be subject to such arrangements and procedures as
shall be provided pursuant to Section 3.12 of the Indenture.] Copies of the
Indenture and the form of the Warrant Securities are on file at the corporate
trust office of the Trustee [and at _______________].
[If Offered Securities with bearer Warrants which are not immediately
detachable -- Prior to _____________, 19__, this Warrant Certificate may be
exchanged or transferred only together with the [Title of Offered Securities]
("Offered Securities") to which this Warrant Certificate was initially attached,
and only for the purpose of effecting, or in conjunction with, an exchange or
transfer of such Offered Security. After such date, this [If Offered Securities
with bearer Warrants which are immediately detachable -- This] Warrant
Certificate, and all rights hereunder, may be transferred by delivery and the
Company and the Warrant Agent may treat the bearer hereof as the owner for all
purposes.]
[If Offered Securities with registered Warrants which are not
immediately detachable -- Prior to ____________, 19__, this Warrant Certificate
may be exchanged or transferred only together with the [Title of Offered
Securities] ("Offered Securities") to which this Warrant Certificate was
initially attached, and only for the purpose of effecting, or in conjunction
with, an exchange or transfer of such Offered Security. After such date, this
[If Offered Securities with registered Warrants which are immediately detachable
- -- Transfer of this] Warrant Certificate may
A-2
<PAGE> 16
be registered when this Warrant Certificate is surrendered to the corporate
trust office of the Warrant Agent [or ________________] by the registered owner
or his assigns, in person or by an attorney duly authorized in writing, in the
manner and subject to the limitations provided in the Warrant Agreement.]
[If Offered Securities with Warrants which are not immediately
detachable -- Except as provided in the immediately preceding paragraph after]
[If Offered Securities with Warrants which are immediately detachable -- After]
countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing the same
aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof to any of
the rights of a holder of the Warrant Securities, including, without limitation,
the right to receive payments of principal of, premium, if any, or interest, if
any, on the Warrant Securities or to enforce any of the covenants of the
Indenture.
A-3
<PAGE> 17
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Dated as of ______________, 19__.
TRW Inc.
By
---------------------------------------
Attest:
- -----------------------------------
Countersigned:
- -----------------------------------
As Warrant Agent
By
- -----------------------------------
Authorized Signature
A-4
<PAGE> 18
[REVERSE OF WARRANT CERTIFICATE]
INSTRUCTIONS FOR EXERCISE OF WARRANT
To exercise the Warrants evidenced hereby, the holder must pay [in cash
or by certified check or official bank check or by bank wire transfer] [by bank
wire transfer] [in immediately available funds] the Warrant Price in full for
Warrants exercised to [insert name of Warrant Agent] Corporate Trust Department,
[insert address of Warrant Agent], Attn. _________ [or _________ ], which
[payment] [wire transfer] must specify the name of the holder and the number of
Warrants exercised by such holder. In addition, the holder must complete the
information required below and present this Warrant Certificate in person or by
mail (registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
TO BE EXECUTED UPON EXERCISE OF WARRANT
The undersigned hereby irrevocable elects to exercise _________
Warrants, evidenced by this Warrant Certificate, to purchase [specified currency
and amount] principal amount of the [Title of Warrant Securities] (the "Warrant
Securities") of TRW Inc. and represents that he has tendered payment for such
Warrant Securities (in cash or by certified check or official bank check or by
bank wire transfer, in each case,] [by bank wire transfer] in immediately
available funds to the order of TRW Inc., c/o [insert name and address of
Warrant Agent], in the amount of [specified currency and amount] in accordance
with the terms hereof. The undersigned requests that said principal amount of
Warrant Securities be in [bearer form in the authorized denominations] [fully
registered form in the authorized denominations, registered in such names and
delivered] all as specified in accordance with the instructions set forth below.
If the number of Warrant exercised is less than all of the Warrant
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.
Dated:
Name
------------------------------------------
|___|__|____ (Please Print)
(Insert Social Security Address
or other Identifying ------------------------------------
Number of Holder)
------------------------------------
Signature
------------------------------------
A-5
<PAGE> 19
The Warrants evidenced hereby may be exercised at the following
addresses:
By hand at
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
By mail at
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
[Instructions as to form and delivery of Warrant Securities and, if
applicable, Warrant Certificates evidencing unexercised Warrants -- complete as
appropriate.]
A-6
<PAGE> 20
*CERTIFICATE FOR DELIVERY OF BEARER WARRANT SECURITIES
TRW INC.
WARRANT SECURITIES
TO: TRW Inc.
c/o The Chase Manhattan Bank
(National Association)
as Trustee
This certificate is submitted in connection with our request that you
deliver to us [specified currency and amount] principal amount of Warrant
Securities in bearer form upon exercise of Warrants. We hereby certify that
either (a) none of such Warrant Securities will be held by or on behalf of a
United States Person, or (b) if a United States Person will have a beneficial
interest in such Warrant Securities, such person is described in Section
____________ of the United States Internal Revenue Code of 1986, as amended, and
the regulations thereunder. As used herein, "United States Person" means a
citizen or resident of the United States, a corporation, partnership or other
entity created or organized in or under the laws of the Untied States or any
political subdivision thereof or an estate or trust whose income from sources
without the United States is includable in gross income for United States
Federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States.
We understand that this certificate is required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.
Dated:
-------------------------------------------
(Signature)
-------------------------------------------
(Please print name)
- ----------
* Subject to change in accordance with changes in tax laws and regulations.
A-7
<PAGE> 21
[If Registered Warrant]
Assignment
(Form of Assignment To Be Executed If Holder Desires
to Transfer Warrants Evidenced Hereby)
FOR VALUE RECEIVED hereby sells, assigns and transfers unto
Please insert social security
or other identify number
- --------------------------------------------------- |___|__|____|
(Please print name and address including zip code)
- --------------------------------------------------------------------------------
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution in the premises.
Dated:
-----------------------------------
Signature
(Signature must conform in all
respects to name of holder as
specified on the face of this
Warrant Certificate and must bear a
signature guarantee by a bank,
trust company or member broker of
the New York, Midwest, Pacific or
Philadelphia Stock Exchange.)
Signature Guaranteed:
______________________________
A-8
<PAGE> 1
EXHIBIT 4(g)
TRW INC.
FORM OF DEBT WARRANT AGREEMENT [FOR DEBT WARRANTS SOLD ALONE]*
WARRANT AGREEMENT dated as of _____________ between TRW Inc., an Ohio
corporation (hereinafter called the "Company", which term includes any successor
corporation under the Indenture hereinafter referred to) and _______________, as
Warrant Agent (therein called the "Warrant Agent").
WHEREAS, the Company has entered into an Indenture dated as of May 1,
1986, as supplemented (the "Indenture"), with The Chase Manhattan Bank (National
Association), as successor trustee (the "Trustee"), providing for the issuance
from time to time of its unsecured debentures, notes or other evidences of
indebtedness (the "Securities"), to be issued in one or more series as provided
in the Indenture; and
WHEREAS, the Company proposes to sell warrant certificates evidencing
one or more warrants (the "Warrants" or, individually a "Warrant") representing
the right to purchase [title of Securities purchasable through exercise of
Warrants] (the "Warrant Securities"), such warrant certificates and other
warrant certificates issued pursuant to this Agreement being herein called the
"Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company in connection with the issuance, exchange, exercise and replacement of
the Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and
conditions on which they may be issued, exchanged, exercised and replaced:
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:
ARTICLE I.
ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT CERTIFICATES.
SECTION 1.01 Issuance of Warrants. Each Warrant Certificate shall
evidence one or more Warrants. Each Warrant evidenced thereby shall represent
the right, subject to the provisions
- --------
*Monetary amounts may be in U.S. dollars or in foreign denominated currency or
units consisting of multiple currencies.
<PAGE> 2
contained herein and therein, to purchase a Warrant Security in the
principal amount of [specified currency and amount].
SECTION 1.02 Execution and Delivery of Warrant Certificates. Each
Warrant Certificate, whenever issued, shall be in [bearer] [registered] form
substantially in the form set forth in Exhibit A hereto, shall be dated _______
and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the officers of the Company executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Warrants may be listed, or to
conform to usage. The Warrant Certificates shall be signed on behalf of the
Company by [its Chairman of the Board, its President, one of its Vice
Presidents, its Treasurer or one of its Assistant Treasurers] under its
corporate seal and attested by its Secretary or one of its Assistant
Secretaries. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.
No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature by
the Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence that the Warrant Certificate so countersigned has been duly
issued hereunder.
In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent, such Warrant Certificates may
be countersigned and delivered notwithstanding that the person who signed such
Warrant Certificates ceased to be such officer of the Company; and any Warrant
Certificate may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Warrant Certificate, shall be the proper
officers of the Company, although at the date of the execution of this Agreement
any such person was not such officer.
[If bearer Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean the bearer of such Warrant Certificate.]
[If registered Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean any person in whose name at the time any
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent for that purpose.]
SECTION 1.03. Issuance of Warrant Certificates. Warrant Certificates
evidencing the right to purchase an aggregate principal amount not exceeding
[specified currency and amount] aggregate principal amount of Warrant Securities
(except as provided in Sections 1.04, 2.03(c), 3.02 and 4.01) may be executed by
the Company and delivered to the Warrant Agent upon the execution of this
2
<PAGE> 3
Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon
receipt of Warrant Certificates duly executed on behalf of the Company,
countersign Warrant Certificates evidencing Warrants representing the right to
purchase up to [specified currency and amount] aggregate principal amount of
Warrant Securities and shall deliver such Warrant Certificates to or upon the
order of the Company. Subsequent to such original issuance of the Warrant
Certificates, the Warrant Agent shall countersign a Warrant Certificate only if
the Warrant Certificate is issued in exchange or substitution for one or more
previously countersigned Warrant Certificates [If registered Warrants -- or in
connection with their transfer], as hereinafter provided or as provided in
Section 2.03(c).
SECTION 1.04. Temporary Warrant Certificates. Pending the preparation
of definitive Warrant Certificates, the Company may execute, and upon the order
of the Company, the Warrant Agent shall authenticate and deliver, temporary
Warrant Certificates which are printed, lithographed, typewritten, mimeographed
or otherwise produced substantially of the tenor of the definitive Warrant
Certificate in lieu of which they are issued and with such insertions,
omissions, substitutions and other variations as the officers executing such
Warrant Certificate may determine as appropriate, as evidenced by their
execution of such Warrant Certificates.
If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay. After
the preparation of definitive Warrant Certificates, the temporary Warrant
Certificates shall be exchangeable for definitive Warrant Certificates upon
surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or __________________], without charge to the holders. Upon
surrender for cancellation of any one or more temporary Warrant Certificates the
Company shall execute and the Warrant Agent shall authenticate and deliver in
exchange therefor definitive Warrant Certificates representing the same
aggregate number of Warrants. Until so exchanged, the temporary Warrant
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Warrant Certificates.
ARTICLE II.
WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS.
SECTION 2.01. Warrant Price. On __________, 19__ the exercise price of
each Warrant is [specified currency and amount]. During the period from
_____________, 19__ through and including _____________, 19__, the exercise
price of each Warrant will be [specified currency and amount] plus [accrued
amortization of the original issue discount] [accrued interest] from __________,
19__. On _____________, 19__, the exercise price of each Warrant will be
[specified currency and amount]. During the period from _____________, 19__,
through and including _____________, 19__, the exercise price of each Warrant
will be [specified currency and amount] plus [accrued amortization of the
original issue discount] [accrued interest] from _____________, 19__. [In each
case, the original issue discount will be amortized at a __% annual rate,
computed on an annual basis using a 360-day year consisting of twelve 30-day
months]. Such purchase price of Warrant Securities is referred to in this
Agreement as the "Warrant Price". [The original issue
3
<PAGE> 4
discount for each [specified currency and amount] principal amount of Warrant
Securities is [specified currency and amount].]
SECTION 2.02. Duration of Warrants. Each Warrant may be exercised in
whole at any time, as specified herein, on or after [the date thereof]
[___________, 19__] and at or before 5 P.M. New York time on _________, 19__
(the "Expiration Date"). Each Warrant not exercised at or before 5 P.M. New York
time on the Expiration Date shall become void, and all rights of the holder of
the Warrant Certificate evidencing such Warrant under this Agreement shall
cease.
SECTION 2.03. Exercise of Warrants. (a) During the period specified in
Section 2.02, any whole number of Warrants may be exercised by providing certain
information set forth on the reverse side of the Warrant Certificate and by
paying in full, [in lawful money of the United States of America,] [in cash or
by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] in immediately available funds, the Warrant Price
for each Warrant exercised, to the Warrant Agent at its corporate trust office
[or at _______], provided that such exercise is subject to receipt within five
business days of such [payment] [wire transfer] by the Warrant Agent of the
Warrant Certificate with the form of election to purchase Warrant Securities set
forth on the reverse side of the Warrant Certificate properly completed and duly
executed. The date on which payment in full of the Warrant Price is received by
the Warrant Agent shall, subject to receipt of the Warrant Certificate as
aforesaid, be deemed to be the date on which the Warrant is exercised. The
Warrant Agent shall deposit all funds received by it in payment of the Warrant
Price in an account of the Company maintained with it [if non-dollar denominated
funds -- or in such other account designated by the Company] and shall advise
the Company by telephone at the end of each day on which a [payment] [wire
transfer] for the exercise of Warrants is received of the amount so deposited to
its account. The Warrant Agent shall promptly confirm such telephone advice to
the Company in writing.
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company and the Trustee under the Indenture of (i) the
number of Warrants exercised, (ii) the instructions of each holder of the
Warrant Certificates evidencing such Warrants with respect to delivery of the
Warrant Securities to which such holder is entitled upon such exercise, (iii)
delivery of Warrant Certificates evidencing the balance, if any, of the Warrants
remaining after such exercise, and (iv) such other information as the Company or
the Trustee shall reasonably require.
(c) As soon as practicable after the exercise of any Warrant, the
Company shall issue, pursuant to the Indenture, in authorized denominations to
or upon the order of the holder of the Warrant Certificate evidencing such
Warrant, the Warrant Securities to which such holder is entitled [in fully
registered form, registered in such name or names] [in bearer form] as may be
directed by such holder*[; provided, however, that the Company shall not be
required to deliver any unregistered Warrant Securities in the United States].
If fewer than all of the Warrants evidenced by such Warrant Certificate are
exercised, the Company shall execute, and an authorized officer of the
- --------
*Subject to change in accordance with changes in tax laws and regulations.
4
<PAGE> 5
Warrant Agent shall manually countersign and deliver, a new Warrant Certificate
evidencing the number of such Warrants remaining unexercised.
(d) The Company shall not be required to pay any stamp or other tax or
other governmental charge required to be paid in connection with any transfer
involved in the issue of the Warrant Securities; and in the event that any such
transfer is involved, the Company shall not be required to issue or deliver any
Warrant Security until such tax or other charge shall have been paid or it has
been established to the Company's satisfaction that no such tax or other charge
is due.
[(e) Issuance of unregistered Warrant Securities upon exercise of
Warrants shall be subject to such arrangements and procedures designed pursuant
to then applicable laws and regulations to ensure that unregistered Warrant
Securities are sold, transferred and paid only in compliance with such laws
pursuant to procedures and shall be provided by the Company pursuant to Sections
3.12 of the Indenture.
ARTICLE III.
OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES.
SECTION 3.01. No Rights as Warrant Securityholder Conferred by Warrants
or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the holder thereof to any of the rights of a holder of Warrant
Securities, including, without limitation, the right to receive the payment of
principal of, premium, if any, or interest on Warrant Securities or to enforce
any of the covenants in the Indenture.
SECTION 3.02. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon the
issuance of any new Warrant Certificate under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this Section
in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an
additional contractual obligation of the Company, whether or not the lost,
stolen or destroyed Warrant Certificate shall be at any time enforceable by
anyone, and shall be entitled to the benefits of this Agreement equally and
proportionately with any and all other Warrant Certificates duly executed and
delivered hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.
5
<PAGE> 6
SECTION 3.03. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a Warrant
Certificate, without the consent of the Warrant Agent, the Trustee, the holder
of any Warrant Securities or the holder of any other Warrant Certificate, may,
in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company suitable to enforce
or otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
SECTION 3.04. Merger, Consolidation, Conveyance, Transfer or Lease. If
at any time there shall be a merger, consolidation, conveyance, transfer or
lease of assets subject to Section 12.01 of the Indenture, then in any such
event the successor or assuming corporation referred to therein shall succeed to
and be substituted for the Company, with the same effect, subject to the
Indenture, as if it had been named herein and in the Warrant as the Company; the
Company shall thereupon be relieved of any further obligation hereunder or under
the Warrants, and the Company as the predecessor corporation may thereupon or at
any time thereafter be dissolved, wound up or liquidated. Such successor or
assuming corporation thereupon may cause to be signed, and may issue either in
its own name or in the name of the Company, any or all of the Warrants issuable
hereunder that theretofore shall not have been signed by the Company, and may
execute and deliver Warrant Securities in its own name pursuant to such
Indenture, in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such consolidation, merger, conveyance, transfer or lease, such
changes in phraseology and form (but not in substance) may be made in the
Warrants thereafter to be issued as may be appropriate.
The Warrant Agent may receive a written opinion of legal counsel as
conclusive evidence that any such consolidation, merger, conveyance, transfer or
lease complies with the provisions of this Section 3.04 and the Indenture.
ARTICLE IV.
EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES.
SECTION 4.01. Exchange and Transfer of Warrant Certificates. Upon
surrender at the corporate trust office of the Warrant Agent [or ________],
Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants. [If registered
Warrants -- or the transfer thereof may be registered in whole or in part];
provided that such other Warrant Certificates evidence the same aggregate number
of Warrants as the Warrant Certificates so surrendered. [If registered Warrants
- -- The Warrant Agent shall keep, at its corporate trust office [and at _______],
books in which, subject to such reasonable regulations as it may prescribe, it
shall register Warrant Certificates and exchanges and transfers of outstanding
Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant
Agent at its corporate trust office [or _________] for exchange [or registration
of transfer], properly endorsed or
6
<PAGE> 7
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent.] No service charge shall be made for any exchange [or
registration of transfer] or Warrant Certificates, but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange [or
registration of transfer]. Whenever any Warrant Certificates are so surrendered
for exchange [or registration of transfer] an authorized officer of the Warrant
Agent shall manually countersign and deliver to the person or persons entitled
thereto a Warrant Certificate or Warrant Certificates duly authorized and
executed by the Company, as so requested. The Warrant Agent shall not be
required to effect any exchange [or registration of transfer] which will result
in the issuance of a Warrant Certificate evidencing a fraction of a Warrant or a
number of full Warrants and a fraction of a Warrant. All Warrant Certificates
issued upon any exchange [or registration of transfer] of Warrant Certificates
shall be the valid obligations of the Company, evidencing the same obligations,
and entitled to the same benefits under this Agreement, as the Warrant
Certificates surrendered for such exchange [or registration of transfer.]
SECTION 4.02. Treatment of Holders of Warrant Certificates. [If bearer
Warrants -- Each Warrant Certificate shall be transferable by delivery and shall
be deemed negotiable and the bearer of each Warrant Certificate may be treated
by the Company, the Warrant Agent and all other persons dealing with such bearer
as the absolute owner thereof for any purpose and as the person entitled to
exercise the rights represented by the Warrants evidenced thereby, any notice to
the contrary withstanding.] [If registered Warrants -- The Company and the
Warrant Agent may treat the registered holder as the absolute owner thereof for
any purpose and as the person entitled to exercise the rights represented by the
Warrants evidenced thereby, any notice to the contrary notwithstanding.]
SECTION 4.03. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange[, registration of transfer] or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu thereof.
The Warrant Agent shall deliver to the Company from time to time otherwise
dispose of canceled Warrant Certificates in a manner satisfactory to the
Company.
ARTICLE V.
CONCERNING THE WARRANT AGENT.
SECTION 5.01. Warrant Agent. The Company hereby appoints _____________
as Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth and
_____________ hereby accepts such appointment. The Warrant Agent shall have the
powers and authority granted to and conferred upon it in the Warrant
Certificates and herein and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to
7
<PAGE> 8
such powers and authority contained in the Warrant Certificates are subject to
and governed by the terms and provisions hereof.
SECTION 5.02. Conditions of Warrant Agent's Obligations. The Warrant
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the holders from time to time of the Warrant
Certificates shall be subject:
(a) Compensation and Indemnification. The Company agrees
promptly to pay the Warrant Agent the compensation to be agreed upon
with the Company for all services rendered by the Warrant Agent and to
reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including counsel fees) incurred by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company
also agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, as well as the
costs and expenses of defending against any claim of such liability.
(b) Agent for the Company. In acting under this Warrant
Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligation or relationship of agency or trust for or with any of the
holders of Warrant Certificates or beneficial owners of Warrants.
(c) Counsel. The Warrant Agent may consult with counsel
satisfactory to it, and the advice of such counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance
with the advice of such counsel.
(d) Documents. The Warrant Agent shall be protected and shall
incur no liability for or in respect of any action taken or thing
suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.
(e) Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have
if it were not the Warrant Agent hereunder, and, to the extent
permitted by applicable law, it or they may engage or be interested in
any financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of holders
of Warrant Securities or other obligations of the Company as freely as
if it were not the Warrant Agent hereunder. Nothing in this Warrant
Agreement shall be deemed to prevent the Warrant Agent from acting as
Trustee under the Indenture or any other indenture of the Company.
8
<PAGE> 9
(f) No Liability for Interest. The Warrant Agent shall have no
liability for interest on any monies at any time received by it
pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.
(g) No Liability for Invalidity. The Warrant Agent shall have
no liability with respect to any invalidity of this Agreement or any of
the Warrant Certificates.
(h) No Responsibility for Representations. The Warrant Agent
shall not be responsible for any of the recitals or representations
herein or in the Warrant Certificates (except as to the Warrant Agent's
counter-signature thereon), all of which are made solely by the
Company.
(i) No Implied Obligations. The Warrant Agent shall be
obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or
obligations shall be read into this Agreement or the Warrant
Certificates against the Warrant Agent. The Warrant Agent shall not be
under any obligation to take any action hereunder which may tend to
involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The
Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant
Certificates authenticated by the Warrant Agent and delivered by it to
the Company pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrant Certificates. The Warrant Agent
shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained
herein or in the Warrant Certificates or in the case of the receipt of
any written demand from a holder of a Warrant Certificate with respect
to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to
initiate any proceedings at law or otherwise or, except as provided in
Section 6.02 hereof, to make any demand upon the Company.
SECTION 5.03. Resignation and Appointment of Successor. (a) The Company
agrees, for the benefit of the holders from time to time of the Warrant
Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying the date
on which its desired resignation shall become effective; provided, however, that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the date
when it shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a successor
Warrant Agent (which shall be a bank or trust company authorized under the laws
of the jurisdiction of its organization to exercise corporate trust powers) and
the acceptance of such appointment by such successor Warrant Agent. The
obligation of the Company under Section 5.02(a) shall continue to the extent set
forth therein notwithstanding the resignation or removal of the Warrant Agent.
9
<PAGE> 10
(c) In case at any time the Warrant Agent shall resign, or shall be
removed, or shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or shall file a petition seeking relief under the Federal Bankruptcy
Code, as now constituted or hereafter amended, or under any other applicable
Federal or State bankruptcy law or similar law or make an assignment for the
benefit of its creditors or consent to the appointment of a receiver or
custodian of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a receiver
or custodian of it or of all or any substantial part of its property shall be
appointed, or if an order of any court shall be entered for relief against it
under the provisions of the Federal Bankruptcy Code, as now constituted or
hereafter amended, or under any other applicable Federal or State bankruptcy or
similar law, or if any public officer shall have taken charge or control of the
Warrant Agent or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as aforesaid,
shall be appointed by the Company by an instrument in writing, filed with the
successor Warrant Agent. Upon the appointment as aforesaid of a successor
Warrant Agent and acceptance by the successor Warrant Agent of such appointment,
the Warrant Agent shall cease to be Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an instrument
accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without any further act, deed or conveyance, shall become vested with all
the authority, rights, powers, trusts, immunities, duties and obligations of
such predecessor with like effect as if originally named as Warrant Agent
hereunder, and such predecessor, upon payment of its charges and disbursements
then unpaid, shall thereupon become obligated to transfer, deliver and pay over,
and such successor Warrant Agent shall be entitled to receive, all monies,
securities and other property on deposit with or held by such predecessor as
Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.
ARTICLE VI.
MISCELLANEOUS.
SECTION 6.01. Amendment. This Agreement may be amended by the parties
hereto, without the consent of the holder of any Warrant Certificate, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or making any other provisions with
respect to matters or questions arising under this Agreement as the Company and
the Warrant Agent may deem necessary or desirable, provided that such action
shall not adversely affect the interests of the holders of the Warrant
Certificates.
10
<PAGE> 11
SECTION 6.02. Notices and Demands to the Company and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
the holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice or demand to
the Company.
SECTION 6.03. Addresses. Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to
_________________, Attention: _____________ and any communication from the
Warrant Agent to the Company with respect to this Agreement shall be addressed
to TRW Inc., 1900 Richmond Road, Cleveland, Ohio 44124, Attention: Secretary (or
such other address as shall be specified in writing by the Warrant Agent or by
the Company).
SECTION 6.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by, and
construed in accordance with, the laws of the State of New York.
SECTION 6.05. Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus relating to such Warrant Securities.
SECTION 6.06. Obtaining of Government Approvals. The Company will from
time to time take any action which may be necessary to obtain and keep effective
any and all permits, consents and approvals of governmental agencies and
authorities and securities acts filings under United States Federal and State
laws (including without limitation a registration statement in respect of the
Warrants and Warrant Securities under the Securities Act of 1933), which may be
or become requisite in connection with the issuance, sale, transfer and delivery
of the Warrant Certificates, the exercise of the Warrants, the issuance, sale,
transfer and delivery of the Warrant Securities issued upon exercise of the
Warrants or upon the expiration of the period during which the Warrants are
exercisable.
SECTION 6.07. Persons Having Rights under Warrant Agreement. Nothing in
this Agreement shall give to any person other than the Company, the Warrant
Agent and the holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Agreement.
SECTION 6.08. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.
SECTION 6.09. Counterparts. This Agreement may be executed in any
number of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.
11
<PAGE> 12
SECTION 6.10. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the principal corporate trust office of
the Warrant Agent for inspection by the holder of any Warrant Certificate. The
Warrant Agent may require such holder to submit his Warrant Certificate for
inspection by it.
12
<PAGE> 13
IN WITNESS WHEREOF, each of TRW Inc. and [Warrant Agent] has caused
this Agreement to be signed by one of its duly authorized officers, and its
corporate seal to be affixed hereunto, and the same to be attested by its
Secretary or one of its Assistant Secretaries, all as of the day and year first
above written.
TRW, INC.
By
--------------------------------------
Attest:
By
--------------------------------------
As Warrant Agent
Attest:
- --------------------------------------
13
<PAGE> 14
EXHIBIT A
(FORM OF WARRANT CERTIFICATE)
(Face of Warrant Certificate)
[Form of Legend if Warrants are not Prior to _______, Warrants evidenced by
immediately exercisable: this Warrant Certificate cannot be
exercised.]
EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT
AGENT AS PROVIDED HEREIN
TRW INC.
WARRANTS TO PURCHASE
[Title of Warrant Securities]
VOID AFTER 5 P.M. NEW YORK TIME ON __________, 19__
[No.] Warrants
This certifies that [the bearer is the] [____________ or
registered assigns is the registered] owner of the above indicated number of
Warrants, each Warrant entitling such [bearer] [owner] to purchase, at any time
[after 5 P.M. New York time on _______, 19__ and] on or before 5 P.M. New York
time on _______, 19__, [specified currency and amount] principal amount of
[Title of Warrant Securities] (the "Warrant Securities"), of TRW Inc. (the
"Company"), issued and to be issued under the Indenture (as hereinafter
defined), on the following basis: [on _______, 19__ the exercise price of each
Warrant is [specified currency and amount]; during the period from _______,
19__, through and including ____________, 19__, the exercise price of each
Warrant will be [specified currency and amount] plus [accrued amortization of
the original issue discount] [accrued interest] from _______, 19__; on ________,
19__, the exercise price of each Warrant will be [specified currency and
amount]; during the period from ________, 19__, through and including
____________, 19__, the exercise price of each Warrant will be [specified
currency and amount] plus [accrued amortization of the original issue discount]
[accrued interest] from _______, 19__; [in each case, the original issue
discount will be amortized at a ___% annual rate, computed on an annual basis,
using a 360-day year consisting of twelve 20-day months] (the "Warrant Price").
[The original issue discount for each [specified currency and amount] principal
amount of Warrant Securities is [specified currency and amount].] The holder may
exercise the Warrants evidenced hereby by providing certain information set
forth on the back hereof and by paying in full, [in lawful money of the United
States of America] [in cash or by certified check or official bank check or by
bank wire transfer, in each case,] [by bank wire transfer] in immediately
available funds, the Warrant Price for each Warrant exercised to the Warrant
Agent (as hereinafter defined) and by surrendering this Warrant Certificate,
with the purchase form on the back hereof duly executed, at the corporate trust
office of [name of Warrant Agent], or its successor as warrant agent (the
"Warrant Agent"), [or
A-1
<PAGE> 15
__________] currently at the address specified on the reverse hereof, and upon
compliance with and subject to the conditions set forth herein and in the
Warrant Agreement (as hereinafter defined).
Any whole number of Warrants evidenced by this Warrant Certificate may
be exercised to purchase Warrant Securities in registered form in denominations
of [specified currency and amount] and any integral multiples thereof. Upon any
exercise of fewer than all the Warrants evidenced by this Warrant Certificate,
there shall be issued to the holder hereof a new Warrant Certificate evidencing
the number of Warrants remaining unexercised.
This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of ________, 19__ (the "Warrant Agreement") between
the Company and the Warrant Agent and is subject to the terms and provisions
contained in the Warrant Agreement, to all of which terms and provisions the
holder of this Warrant Certificate consents by acceptance hereof. Copies of the
Warrant Agreement are on file at the above-mentioned office of the Warrant Agent
[and at ________________].
The Warrant Securities to be issued and delivered upon the exercise of
the Warrants evidenced by this Warrant Certificate will be issued under and in
accordance with an Indenture dated as of May 1, 1986 (the "Indenture"), between
the Company and Mellon Bank, N.A., a national banking association organized and
existing under the laws of the United States of America, as Trustee (Mellon
Bank, N.A. and any successor to such Trustee being hereinafter referred to as
the "Trustee"), and will be subject to the terms and provisions contained in the
Indenture. [In particular, issuance of unregistered Warrant Securities upon
exercise of Warrants shall be subject to such arrangements and procedures as
shall be provided pursuant to Section 3.12 of the Indenture.] Copies of the
Indenture and the form of the Warrant Securities are on file at the corporate
trust office of the Trustee [and at ___________].
[Bearer Warrants -- This Warrant Certificate, and all rights hereunder
may be transferred by delivery and the Company and the Warrant Agent may treat
the bearer hereof as the bearer for all purposes.]
[Registered Warrants -- This Warrant Certificate may be transferred
when surrendered at the corporate trust office of the Warrant Agent [or
__________] by registered owner or his assigns, in person or by an attorney duly
authorized in writing, in the manner and subject to the limitations provided in
the Warrant Agreement.]
After countersignature by the Warrant Agent and prior to the expiration
of this Warrant Certificate, this Warrant Certificate may be exchanged at the
corporate trust office of the Warrant Agent for Warrant Certificates
representing the same aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof to any of
the rights of a holder of the Warrant Securities, including, without limitation,
the right to receive payments of principal of, premium, if any, or interest, if
any, on the Warrant Securities or to enforce any of the covenants of the
Indenture.
A-2
<PAGE> 16
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Dated as of ____________, 19__.
TRW Inc.
By
----------------------------------
Attest:
- ----------------------------------
Countersigned:
- ----------------------------------
As Warrant Agent
By
--------------------------------
Authorized Signature
A-3
<PAGE> 17
[REVERSE OF WARRANT CERTIFICATE]
INSTRUCTIONS FOR EXERCISE OF WARRANT
To exercise the Warrants evidenced hereby, the holder must pay [in cash
or by certified check or official bank check or by bank wire transfer] [by bank
wire transfer] [in immediately available funds] the Warrant Price in full for
Warrants exercised to [insert name of Warrant Agent] Corporate Trust Department,
[insert address of Warrant Agent], Attn. _________ [or ____________ ], which
[payment] [wire transfer] must specify the name of the holder and the number of
Warrants exercised by such holder. In addition, the holder must complete the
information required below and present this Warrant Certificate in person or by
mail (registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
TO BE EXECUTED UPON EXERCISE OF WARRANT
The undersigned hereby irrevocable elects to exercise ________
Warrants, evidenced by this Warrant Certificate, to purchase [specified currency
and amount] principal amount of the [Title of Warrant Securities] (the "Warrant
Securities") of TRW Inc. and represents that he has tendered payment for such
Warrant Securities (in cash or by certified check or official bank check or by
bank wire transfer, in each case,] [by bank wire transfer] in immediately
available funds to the order of TRW Inc., c/o [insert name and address of
Warrant Agent], in the amount of [specified currency and amount] in accordance
with the terms hereof. The undersigned requests that said principal amount of
Warrant Securities be in [bearer form in the authorized denominations] [fully
registered form in the authorized denominations, registered in such names and
delivered] all as specified in accordance with the instructions set forth below.
If the number of Warrant exercised is less than all of the Warrant
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.
Dated:
Name
------------------------------------------
|___|__|____| (Please Print)
(Insert Social Security Address
or other Identifying -------------------------------------
Number of Holder)
-------------------------------------
Signature
-------------------------------------
A-4
<PAGE> 18
The Warrants evidenced hereby may be exercised at the following
addresses:
By hand at
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
By mail at
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
[Instructions as to form and delivery of Warrant Securities and, if
applicable, Warrant Certificates evidencing unexercised Warrants -- complete as
appropriate.]
A-5
<PAGE> 19
*CERTIFICATE FOR DELIVERY OF BEARER WARRANT SECURITIES
TRW INC.
WARRANT SECURITIES
TO: TRW Inc.
c/o The Chase Manhattan Bank
(National Association)
as Trustee
This certificate is submitted in connection with our request that you
deliver to us [specified currency and amount] principal amount of Warrant
Securities in bearer form upon exercise of Warrants. We hereby certify that
either (a) none of such Warrant Securities will be held by or on behalf of a
United States Person, or (b) if a United States Person will have a beneficial
interest in such Warrant Securities, such person is described in Section
______________ of the United States Internal Revenue Code of 1986, as amended,
and the regulations thereunder. As used herein, "United States Person" means a
citizen or resident of the United States, a corporation, partnership or other
entity created or organized in or under the laws of the United States or any
political subdivision thereof or an estate or trust whose income from sources
without the United States is includable in gross income for United States
Federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States.
We understand that this certificate is required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.
Dated:
------------------------------------------------
(Signature)
------------------------------------------------
(Please print name)
- ----------
* Subject to change in accordance with changes in tax laws and regulations.
A-6
<PAGE> 20
[If Registered Warrant]
Assignment
(Form of Assignment To Be Executed If Holder Desires
to Transfer Warrants Evidenced Hereby)
FOR VALUE RECEIVED hereby sells, assigns and transfers unto
Please insert social security
or other identify number
- -------------------------------------------------- |___|__|____|
(Please print name and address including zip code)
- --------------------------------------------------------------------------------
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution in the premises.
Dated:
------------------------------------------
Signature
(Signature must conform in all respects to
name of holder as specified on the face
of this Warrant Certificate and must bear
a signature guarantee by a bank, trust
company or member broker of the New York,
Midwest, Pacific or Philadelphia Stock
Exchange.)
Signature Guaranteed:
- ------------------------------------
A-7
<PAGE> 1
Exhibit 4(h)
[FORM OF FACE OF SECURITY]
[Insert any legend required by the Internal Revenue Code and the
regulations thereunder]
[If applicable -- insert the following legend:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]
TRW INC.
[Title of Securities]
No. __________ $___________
TRW Inc., a corporation duly organized and existing under the laws of
Ohio (herein called the "Company", which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to _____________________________, or registered assigns, the
principal sum of ___________________________________________
____________________________________________________ Dollars on
________________, ____. [If the Security is to bear interest prior to Maturity,
insert --, and to pay interest thereon from ________________ or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on ________________ and ________________ in each year,
commencing ________________, at the rate of ___% per annum, until the principal
hereof is paid or made available for payment [If applicable insert --, provided
that any principal and premium, and any such installment of interest, which is
overdue shall bear interest at the rate of __% per annum (to the extent that the
payment of such interest shall be legally enforceable) from the dates such
amounts are due until they are paid or made available for payment, and such
interest shall be payable on demand]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the _______ or _______
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease
<PAGE> 2
to be payable to the Holder on such Regular Record Date and may either be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture].
[If the Security is not to bear interest prior to Maturity, insert--
The principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal and any overdue premium shall
bear interest at the rate of __% per annum (to the extent that the payment of
such interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand.]
Payment of the principal of (and premium, if any) and [if applicable,
insert-- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in _______________, in
[specify currency].
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated:
TRW INC.
By
--------------------------------------
Attest:
- ------------------------------
2
<PAGE> 3
This is one of the Securities referred to in the within-mentioned
Indenture.
THE CHASE MANHATTAN BANK,
as Trustee
By
-----------------------------------------
Authorized Officer
3
<PAGE> 4
[FORM OF REVERSE OF SECURITY]
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of May 1, 1986 (herein called the
"Indenture," which term shall have the meaning assigned to it in such
instrument), between the Company and The Chase Manhattan Bank (National
Association), as successor trustee to Mellon Bank, N.A. (herein called the
"Trustee", which term includes any successor trustee under the Indenture), and
reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof [if applicable, insert--, limited in
aggregate principal amount to
$_______________].
[If applicable, insert--The Securities of this series are subject to
redemption upon notice by mail not less than 30 days and not more than 60 days
prior to the Redemption Date [if applicable, insert-- (1) on _______________ in
any year commencing with the year ____ and ending with the year ____ through
operation of the sinking fund for this series at a Redemption Price equal to
100% of the principal amount, and (2)] at any time [if applicable, insert-- on
or after __________________, 19__, as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [on or before _______________, ____%, and if
redeemed] during the 12-month period beginning ______________ of the years
indicated.
Redemption Redemption
Year Price Year Price
---- ----- ---- -----
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption [if applicable, insert-- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
[If applicable, insert--The Securities of this series are subject to
redemption upon notice by mail not less than 30 days and not more than 60 days
prior to the Redemption Date (1) on ________________________ in any year
commencing with the year ___ and ending with the year ____ through operation of
the sinking fund for this series at the Redemption Prices for redemption through
operation of the sinking fund (expressed as percentages of the principal
4
<PAGE> 5
amount) set forth in the table below, and (2) at any time [if applicable,
insert--(on or after ________________], as a whole or in part, at the election
of the Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below: If redeemed during the 12- month period beginning
___________________________ of the years indicated.
Redemption Price Redemption Price For
For Redemption Redemption Otherwise
Through Operation Than Through Operation
Year of the Sinking Fund of the Sinking Fund
---- ------------------- -------------------
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[If applicable, insert-- Notwithstanding the foregoing, the Company may
not, prior to _____________________, redeem any Securities of this series as
contemplated by [if applicable, insert-- Clause (2) of] the preceding paragraph
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than ____% per annum.]
[If applicable, insert-- The sinking fund for this series provides for
the redemption on ________________ in each year beginning with the year ____ and
ending with the year ____ of [if applicable, insert-- not less than]
$____________ [("mandatory sinking fund") and not more than $______________]
aggregate principal amount of Securities of this series. Securities of this
series acquired or redeemed by the Company otherwise than through [if
applicable, insert- - mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert-- mandatory] sinking fund payments otherwise
required to be made--[if applicable, insert-- in the inverse order in which they
become due.]
5
<PAGE> 6
[If the Security is subject to redemption of any kind, insert-- In the event of
redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the cancellation hereof.]
The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security or certain restrictive covenants and Events
of Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.
[If the Security is not an Original Issue Discount Security.-- insert--
If an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]
[If the Security is an Original Issue Discount Security.-- insert-- If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided [below].
Such amount shall be equal to--insert formula for determining the amount. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Company's obligations in respect of the payment of the principal of and
premium and interest, if any, on the Securities of this series shall terminate.]
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of 66 2/3% in aggregate principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.
As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in aggregate
principal amount of the Securities of this series at the time Outstanding shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee
6
<PAGE> 7
reasonable indemnity, and the Trustee shall not have received from the Holders
of a majority in principal amount of Securities of this series at the time
Outstanding a direction inconsistent with such request, and shall have failed to
institute any such proceeding, for 60 days after receipt of such notice, request
and offer of indemnity.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series, and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Securities of this series are issuable only in registered form
without coupons in denominations of $____________ and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor, of a different
authorized denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
7
<PAGE> 1
EXHIBIT 4(i)
TRW INC.
FORM OF COMMON STOCK WARRANT AGREEMENT
[FOR COMMON STOCK WARRANTS SOLD ATTACHED TO COMMON STOCK]*
WARRANT AGREEMENT dated as of______________________between TRW Inc., an
Ohio corporation (hereinafter called the "Company"), and________________________
_____________________________________________as Warrant Agent (herein called the
"Warrant Agent").
WHEREAS, the Company proposes to sell _____________ shares of its
common stock, par value $0.625 per share (the "Common Stock"), with warrant
certificates evidencing one or more warrants (the "Warrants" or individually a
"Warrant") representing the right to purchase in the aggregate up to ___________
shares of Common Stock (the "Warrant Securities"), such warrant certificates and
other warrant certificates issued pursuant to this Agreement being herein called
the "Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company in connection with the issuance, exchange, exercise and replacement of
the Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and
conditions on which they may be issued, exchanged, exercised and replaced.
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:
ARTICLE I
ISSUANCE OF WARRANTS AND EXECUTION
AND DELIVERY OF WARRANT CERTIFICATES.
SECTION 1.01. Issuance of Warrants. Warrants shall be initially issued
in connection with the issuance of the Common Stock [but shall be separately
transferable on and after _____________________ 19___ (the "Detachable Date")]
[and shall not be separately transferable] and each Warrant Certificate shall
evidence one or more Warrants. Each Warrant evidenced thereby shall represent
the right, subject to the provisions contained herein and therein, to purchase
up to ________ share(s) of the Warrant Securities. Warrant Certificates shall be
initially issued in units with the Common Stock and each Warrant Certificate
included in such a unit shall evidence ________ Warrants for each share of the
Warrant Securities included in such unit.
- ----------
* Monetary amounts may be in U.S. dollars or in foreign denominated
currency or units consisting of multiple currencies.
1
<PAGE> 2
SECTION 1.02. Execution and Delivery of Warrant Certificates. Each
Warrant Certificate, whenever issued, shall be in [bearer] [registered] form
substantially in the form set forth in Exhibit A hereto, shall be
dated________________ and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the
Warrants may be listed, or to conform to usage. The Warrant Certificates shall
be signed on behalf of the Company by [its Chairman of the Board, its President,
one of its Vice Presidents, its Treasurer or one of its Assistant Treasurers]
under its corporate seal and attested by its Secretary or one of its Assistant
Secretaries. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.
No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature by
the Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence that the Warrant Certificate so countersigned has been duly
issued hereunder.
In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent, such Warrant Certificates may
be countersigned and delivered notwithstanding that the person who signed such
Warrant Certificates ceased to be such officer of the Company, and any Warrant
Certificate may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Warrant Certificate, shall be the proper
officers of the Company, although at the date of the execution of this Agreement
any such person was not such officer.
[If bearer Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean [If Common Stock with Warrants that are
not immediately detachable -- prior to the Detachable Date, the registered owner
of the Common Stock to which such Warrant Certificate was initially attached,
and after such Detachable Date] the bearer of such Warrant Certificate.]
[If registered Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean any person in whose name at the time any
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent for that purpose. [If Common Stock with Warrants that are not
immediately detachable -- or upon the register of the Common Stock prior to the
Detachable Date. The Company will, or will cause the registrar of the Common
Stock to,
2
<PAGE> 3
make available at all times to the Warrant Agent such information as
to holders of the Common Stock with Warrants as may be necessary to keep the
Warrant Agent's records up to date.]]
SECTION 1.03. Issuance of Warrant Certificates. Warrant Certificates
evidencing the right to purchase an aggregate of _________ maximum shares of
Warrant Securities (except as provided in Sections 1.04, 2.03(c). 3.02 and 4.01)
may be executed by the Company and delivered to the Warrant Agent upon the
execution of this Warrant Agreement or from time to time thereafter. The Warrant
Agent shall, upon receipt of Warrant Certificates duly executed on behalf of the
Company, countersign Warrant Certificates evidencing Warrants representing the
right to purchase up to _________ shares of Warrant Securities and shall deliver
such Warrant Certificates to or upon the order of the Company. Subsequent to
such original issuance of the Warrant Certificates, the Warrant Agent shall
countersign a Warrant Certificate only if the Warrant Certificate is issued in
exchange or substitution for one or more previously countersigned Warrant
Certificates [If registered Warrants -- or in connection with their transfer],
as hereinafter provided or as provided in Section 2.03(c).
SECTION 1.04. Temporary Warrant Certificates. Pending the preparation
of definitive Warrant Certificates, the Company may execute, and upon the order
of the Company, the Warrant Agent shall authenticate and deliver, temporary
Warrant Certificates which are printed, lithographed, typewritten, mimeographed
or otherwise produced substantially of the tenor of the definitive Warrant
Certificate in lieu of which they are issued and with such insertions,
omissions, substitutions and other variations as the officers executing such
Warrant Certificate may determine as appropriate, as evidenced by their
execution of such Warrant Certificates.
If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay. After
the preparation of definitive Warrant Certificates, the temporary Warrant
Certificates shall be exchangeable for definitive Warrant Certificates upon
surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or __________________], without charge to the holders. Upon
surrender for cancellation of any one or more temporary Warrant Certificates the
Company shall execute and the Warrant Agent shall authenticate and deliver in
exchange therefor definitive Warrant Certificates representing the same
aggregate number of Warrants. Until so exchanged, the temporary Warrant
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Warrant Certificates.
ARTICLE II
WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS.
SECTION 2.01. Warrant Price. On____________, 19___ the exercise price
of each Warrant is [specified currency and amount]. During the period
from____________, 19___, through and including____________, 19___, the exercise
price of each Warrant will be [specified currency and amount]. The Warrant Price
is subject to adjustment as set forth in Section 2.03(g). Such purchase price of
Warrant Securities is referred to in this Agreement as the "Warrant Price".
3
<PAGE> 4
SECTION 2.02. Duration of Warrants. Each Warrant may be exercised in
whole at any time, as specified herein, on or after [the date thereof] [ ,
19___] and at or before 5 P.M. New York time on , 19___ (the "Expiration Date").
Each Warrant not exercised at or before the close of business on the Expiration
Date shall become void, and all rights of the holder of the Warrant Certificate
evidencing such Warrant under this Agreement shall cease.
SECTION 2.03. Exercise of Warrants. (a) During the period specified in
Section 2.02, any whole number of Warrants may be exercised by providing certain
information set forth on the reverse side of the Warrant Certificate and by
paying in full, [in lawful money of the United States of America,] [in cash or
by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] [in immediately available funds] the Warrant
Price for each Warrant exercised, to the Warrant Agent at its corporate trust
office [or at ___________], provided that such exercise is subject to receipt
within five business days of such [payment] [wire transfer] by the Warrant Agent
of the Warrant Certificate with the form of election to purchase Warrant
Securities set forth on the reverse side of the Warrant Certificate properly
completed and duly executed. The date on which payment in full of the Warrant
Price is received by the Warrant Agent shall, subject to receipt of the Warrant
Certificate as aforesaid, be deemed to be the date on which the Warrant is
exercised. The Warrant Agent shall deposit all funds received by it in payment
of the Warrant Price in an account of the Company maintained with it and shall
advise the Company by telephone at the end of each day on which a [payment]
[wire transfer] for the exercise of Warrants is received of the amount so
deposited to its account. The Warrant Agent shall promptly confirm such
telephone advice to the Company in writing.
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company and the transfer agent for the Common Stock (the
"Transfer Agent") of (i) the number of Warrants exercised, (ii) the instructions
of each holder of the Warrant Certificates evidencing such Warrants with respect
to delivery of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any,
of the Warrants remaining after such exercise, and (iv) such other information
as the Company or the Transfer Agent shall reasonably require.
(c) As soon as practicable after the exercise of any Warrant, the
Company shall issue or cause to be issued to or upon the order of the holder of
the Warrant Certificate evidencing such Warrant, a stock certificate
representing the Warrant Securities to which such holder is entitled. If fewer
than all of the Warrants evidenced by such Warrant Certificate are exercised,
the Company shall execute, and an authorized officer of the Warrant Agent shall
manually countersign and deliver, a new Warrant Certificate evidencing the
number of such Warrants remaining unexercised.
(d) The Company will pay any documentary stamp taxes attributable to
the initial issuance of the Warrant Securities upon the exercise of the
Warrants; provided, however, the Company shall not be required to pay any stamp
or other tax or other governmental charge required to be paid in connection with
any transfer involved in the issue of the Warrant Securities, and in the event
that any such transfer is involved, the Company shall not be required to issue
or deliver any certificate representing any Warrant Security until such tax or
other charge shall have been paid or it has been established to the Company's
satisfaction that no such tax or other charge is due.
4
<PAGE> 5
(e) Subject to Section 2.03(f), in case the Company shall (i) pay a
dividend in Common Stock or shares of capital stock convertible into Common
Stock, or make a distribution of shares of Common Stock or shares of capital
stock convertible into Common Stock, on its outstanding Common Stock, (ii)
subdivide its outstanding Common Stock into a greater number of such shares,
(iii) combine its outstanding Common Stock into a smaller number of shares of
Common Stock or (iv) issue, by reclassification of its Common Stock, other
securities of the Company, the number of shares of Common Stock and, for
transactions referred to in clauses (i) and (iv) the kind of securities,
purchasable upon exercise of a Warrant outstanding immediately prior thereto
shall be adjusted so that the holder of a Warrant shall be entitled to receive
the kind and number of shares of Common Stock or other securities of the Company
that such holder would have owned or would have been entitled to receive
immediately after the happening of any of the events described above, had the
Warrant been exercised immediately prior to the happening of such event or any
record date with respect thereto. Except as provided in this Section 2.03(e), no
adjustment to the Warrant Securities shall be made in respect of any dividends
or distributions out of surplus or net profit. Any adjustment made pursuant to
this Section 2.03(e) shall become effective immediately after the effective date
of such event retroactive to the record date, if any, for such event.
(f) No adjustment in the number of shares of Warrant Securities
purchasable pursuant to the Warrants shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in the number
of shares of Warrant Securities then purchasable upon the exercise of the
Warrants in the aggregate or, if the Warrants are not then exercisable, the
number of shares of Warrant Securities purchasable upon the exercise of the
Warrants on the first date thereafter that the Warrants become exercisable;
provided, however, that any adjustments which by reason of this Section 2.03(f)
are not required to be made immediately shall be carried forward and taken into
account in any subsequent adjustment.
(g) Whenever the kind and/or number of shares of Common Stock
purchasable upon the exercise of a Warrant is adjusted as provided in this
Section 2.03, the Warrant Price payable upon exercise of the Warrant shall be
adjusted by multiplying such Warrant Price immediately prior to such adjustment
by a fraction, of which the numerator shall be the number of shares of Common
Stock or other securities purchasable upon the exercise of such Warrant
immediately prior to such adjustment and of which the denominator shall be the
number of shares of Common Stock or other securities so purchasable immediately
thereafter. If, as a result of any adjustment as provided in this Section 2.03,
the holder of any Warrant shall become entitled to receive shares of two or more
classes of capital stock of the Company, the Board of Directors of the Company
shall determine by resolution the allocation of the adjusted Warrant Price
between or among shares of such classes of capital stock. Such determination, if
based upon the Board of Directors' good faith business judgment, shall be
binding upon the registered holders. The Company will deliver a certified copy
of such resolution of the Board of Directors to the Warrant Agent.
(h) Whenever the number of shares of Warrant Securities purchasable
upon the exercise of a Warrant or the Warrant Price is adjusted as herein
provided, the Company shall cause to be promptly given to the Warrant Agent [and
each registered holder of a Warrant] written notice of such adjustment or
adjustments and, with regard to the Warrant Agent only, a certificate of the
chief financial officer of the Company setting forth the number and kind of
shares of capital stock
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purchasable upon the exercise of a Warrant and the Warrant Price after such
adjustment, a brief statement of the facts requiring such adjustment and the
computation by which such adjustment was made.
(i) In case of any consolidation of the Company with or merger of the
Company into another corporation or in case of any sale or conveyance to another
corporation of the property, assets or business of the Company as an entirety or
substantially as an entirety, the Company or such successor or purchasing
corporation, as the case may be, shall execute with the Warrant Agent an
agreement that the registered holders of the Warrants shall have the right
thereafter, upon payment of the Warrant Price in effect immediately prior to
such action, to purchase upon exercise of each Warrant, the kind and amount of
shares and other securities and property which it would have owned or have been
entitled to receive after the happening of such consolidation, merger, sale or
conveyance had each Warrant been exercised immediately prior to such action. Any
such agreements referred to in this Section 2.03(i) shall provide for
adjustments, which shall be as nearly equivalent as may be practicable to the
adjustments provided for in Section 9 hereof. The provisions of this Section
2.03(i) shall similarly apply to successive consolidations, mergers, sales or
conveyances.
(j) Irrespective of any adjustments in the Warrant Price or the number
or kind of securities issuable upon exercise of Warrants, Warrant Certificates
theretofore or thereafter issued may continue to express the same price and
number of securities as are stated in the similar Warrant Certificates initially
issuable pursuant to this Agreement. However, the Company may, at any time in
its sole discretion (which shall be conclusive), make any change in the form of
Warrant Certificate that it may deem appropriate and that does not affect the
substance thereof; and any Warrant Certificate thereafter issued, whether [upon
registration of transfer of, or] in exchange or substitution for, an outstanding
Warrant Certificate, may be in the form so changed.
(k) The Company shall not be required to issue fractional shares of
Common Stock or any other security on the exercise of a Warrant. If any fraction
of a share of Common Stock or other security would, except for the provisions of
this Section 2.03(k), be issuable on the exercise of a Warrant (or specified
portion thereof), the Company shall in lieu thereof pay an amount in cash equal
to the then Current Market Price multiplied by such fraction. For purposes of
this Agreement, the term "Current Market Price" shall mean (i) if the Common
Stock is traded on the New York Stock Exchange (the "NYSE") or on any other
national securities exchange or on Nasdaq, the average for the 30 consecutive
trading days immediately preceding the date in question of the daily per share
closing prices of the Common Stock on the NYSE or on the principal national
securities exchange on which it is listed or on Nasdaq, as the case may be, or
(ii) if the Common Stock or other security is traded in the over-the-counter
market and not on the NYSE or on any other national securities exchange or on
Nasdaq, the average of the per share closing bid prices of the Common Stock on
the 30 consecutive trading days immediately preceding the date in question, as
reported by Nasdaq or an equivalent generally accepted reporting service. The
closing price referred to in clause (i) above shall be the last reported sale
price or, in the case no such reported sale takes place on such day, the average
of the reported closing bid and asked prices, in either case on the NYSE or on
the principal national securities exchange on which the Common Stock or other
security is then listed or on Nasdaq. For purposes of clause (ii) above, if
trading in the Common Stock or other security is not
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reported by Nasdaq, the bid price referred to in said clause shall be the lowest
bid price as reported in the "pink sheets" published by National Quotation
Bureau, Incorporated.
ARTICLE III
OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES.
SECTION 3.01. No Rights as Stockholder Conferred by Warrants or Warrant
Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle
the holder thereof to any of the rights of a holder of Warrant Securities,
including, without limitation, the right to receive dividends or other
distributions, to vote on any matter submitted to the Company's stockholders or
to receive notice of any meetings of stockholders.
SECTION 3.02. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon the
issuance of any new Warrant Certificate under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this Section
in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an
additional contractual obligation of the Company, whether or not the lost,
stolen or destroyed Warrant Certificate shall be at any time enforceable by
anyone, and shall be entitled to the benefits of this Agreement equally and
proportionately with any and all other Warrant Certificates duly executed and
delivered hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.
SECTION 3.03. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a Warrant
Certificate, without the consent of the Warrant Agent, the Trustee, the holder
of any Warrant Securities or the holder of any other Warrant Certificate, may,
in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company suitable to enforce
or otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
SECTION 3.04. Merger, Consolidation, Conveyance, Transfer or Lease. If
at any time there shall be a merger, consolidation, conveyance, transfer or
lease of assets subject to Section 12.01 of the Indenture, then in any such
event the successor or assuming corporation referred to therein shall
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succeed to and be substituted for the Company, with the same effect, subject to
the Indenture, as if it had been named herein and in the Warrant as the Company;
the Company shall thereupon be relieved of any further obligation hereunder or
under the Warrants, and the Company as the predecessor corporation may thereupon
or at any time thereafter be dissolved, wound up or liquidated. Such successor
or assuming corporation thereupon may cause to be signed, and may issue either
in its own name or in the name of the Company, any or all of the Warrants
issuable hereunder that theretofore shall not have been signed by the Company,
and may execute and deliver Warrant Securities in its own name pursuant to such
Indenture, in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such consolidation, merger, conveyance, transfer or lease, such
changes in phraseology and form (but not in substance) may be made in the
Warrants thereafter to be issued as may be appropriate.
The Warrant Agent may receive a written opinion of legal counsel as
conclusive evidence that any such consolidation, merger, conveyance, transfer or
lease complies with the provisions of this Section 3.04 and the Indenture.
ARTICLE IV
EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES.
SECTION 4.01. Exchange and Transfer of Warrant Certificates. [If
Offered Securities with Warrants which are immediately detachable -- Upon] [If
Offered Securities with Warrants which are not immediately detachable -- Prior
to the Detachable Date a Warrant Certificate may be exchanged or transferred
only together with the Offered Security to which the Warrant Certificate was
initially attached, and only for the purpose of effecting or in conjunction with
an exchange or transfer of such Offered Security. Prior to the Detachable Date,
each transfer of the Offered Security [on the register of the Offered
Securities] shall operate also to transfer the related Warrant Certificates.
After the Detachable Date upon] surrender at the corporate trust office of the
Warrant Agent [or _______________], Warrant Certificates evidencing Warrants may
be exchanged for Warrant Certificates in other denominations evidencing such
Warrants [If registered Warrants -- or the transfer thereof may be registered in
whole or in part]; provided that such other Warrant Certificates evidence the
same aggregate number of Warrants as the Warrant Certificates so surrendered.
[If registered Warrants -- The Warrant Agent shall keep, at its corporate trust
office [and at ___________], books in which, subject to such reasonable
regulations as it may prescribe, it shall register Warrant Certificates and
exchanges and transfers of outstanding Warrant Certificates, upon surrender of
the Warrant Certificates to the Warrant Agent at its corporate trust office [or
__________] for exchange [or registration of transfer], properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent.] No service charge shall be made for any exchange [or
registration of transfer] of Warrant Certificates, but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be
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imposed in connection with any such exchange [or registration of transfer].
Whenever any Warrant Certificates are so surrendered for exchange [or
registration of transfer] an authorized officer of the Warrant Agent shall
manually countersign and deliver to the person or persons entitled thereto a
Warrant Certificate or Warrant Certificates duly authorized and executed by the
Company, as so requested. The Warrant Agent shall not be required to effect any
exchange [or registration of transfer] which will result in the issuance of a
Warrant Certificate evidencing a fraction of a Warrant, a number of full
Warrants and a fraction of a Warrant. All Warrant Certificates issued upon any
exchange [or registration of transfer] of Warrant Certificates shall be the
valid obligations of the Company, evidencing the same obligations, and entitled
to the same benefits under this Agreement, as the Warrant Certificates
surrendered for such exchange [or registration of transfer].
SECTION 4.02. Treatment of Holders of Warrant Certificates. [If Offered
Securities with bearer Warrants which are not immediately detachable -- Subject
to Section 4.01, each] [If Offered Securities with bearer Warrants which are
immediately detachable -- Each] Warrant Certificate shall be transferable by
delivery and shall be deemed negotiable and the bearer of each Warrant
Certificate may be treated by the Company, the Warrant Agent and all other
persons dealing with such bearer as the absolute owner thereof for any purpose
and as the person entitled to exercise the rights represented by the Warrants
evidenced thereby, any notice to the contrary notwithstanding.] [If registered
Warrants which are not immediately detachable -- Every holder of a Warrant
Certificate, by accepting the same, consents and agrees with the Company, the
Warrant Agent and with every subsequent holder of such Warrant Certificate that
until the transfer of the Warrant Certificate is registered on the books of the
Warrant Agent [or the register of the Offered Securities prior to the Detachable
Date], the Company and the Warrant Agent [or the registrar of the Offered
Securities prior to the Detachable Date], the Company and the Warrant Agent may
treat the registered holder as the absolute owner thereof for any purpose and as
the person entitled to exercise the rights represented by the Warrants evidenced
thereby, any notice to the contrary notwithstanding.]
SECTION 4.03. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange [, registration of transfer] or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu thereof.
The Warrant Agent shall deliver to the Company from time to time or otherwise
dispose of cancelled Warrant Certificates in a manner satisfactory to the
Company.
ARTICLE V
CONCERNING THE WARRANT AGENT.
SECTION 5.01. Warrant Agent. The Company hereby appoints ___________ as
Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth; and
__________ hereby accepts such appointment. The
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Warrant Agent shall have the powers and authority granted to and conferred upon
it in the Warrant Certificates and herein and such further powers and authority
to act on behalf of the Company as the Company may hereafter grant to or confer
upon it. All of the terms and provisions with respect to such powers and
authority contained in the Warrant Certificates are subject to and governed by
the terms and provisions hereof.
SECTION 5.02. Conditions of Warrant Agent's Obligations. The Warrant
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the holders from time to time of the Warrant
Certificates shall be subject:
(a) Compensation and Indemnification. The Company agrees
promptly to pay the Warrant Agent the compensation to be agreed upon
with the Company for all services rendered by the Warrant Agent and to
reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including counsel fees) incurred by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company
also agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, as well as the
costs and expenses of defending any claim of such liability.
(b) Agent for the Company. In acting under this Warrant
Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligation or relationship of agency or trust for or with any of the
holders of Warrant Certificates or beneficial owners of Warrants.
(c) Counsel. The Warrant Agent may consult with counsel
satisfactory to it, and the advice of such counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance
with the advice of such counsel.
(d) Documents. The Warrant Agent shall be protected and shall
incur no liability for or in respect of any action taken or thing
suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.
(e) Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have
if it were not the Warrant Agent hereunder, and, to the extent
permitted by applicable law, it or they may engage or be interested in
any financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of holders
of obligations of the Company as freely as if it were not the Warrant
Agent hereunder. Nothing in this Warrant Agreement shall be deemed to
prevent the Warrant Agent from acting as trustee under any indenture of
the Company.
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(f) No Liability for Interest. The Warrant Agent shall have no
liability for interest on any monies at any time received by it
pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.
(g) No Liability for Invalidity. The Warrant Agent shall have
no liability with respect to any invalidity of this Agreement or any of
the Warrant Certificates.
(h) No Responsibility for Representations. The Warrant Agent
shall not be responsible for any of the recitals or representations
herein or in the Warrant Certificates (except as to the Warrant Agent's
countersignature thereon), all of which are made solely by the Company.
(i) No Implied Obligations. The Warrant Agent shall be
obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or
obligations shall be read into this Agreement or the Warrant
Certificates against the Warrant Agent. The Warrant Agent shall not be
under any obligation to take any action hereunder which may tend to
involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The
Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant
Certificates authenticated by the Warrant Agent and delivered by it to
the Company pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrant Certificates. The Warrant Agent
shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained
herein or in the Warrant Certificates or in the case of the receipt of
any written demand from a holder of a Warrant Certificate with respect
to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to
initiate any proceedings at law or otherwise or, except as provided in
Section 6.02 hereof, to make any demand upon the Company.
SECTION 5.03. Resignation and Appointment of Successor. (a) The
Company agrees, for the benefit of the holders from time to time of the Warrant
Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying the date
on which its desired resignation shall become effective; provided, however, that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the date
when it shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a successor
Warrant Agent (which shall be a bank or trust company authorized under the laws
of the jurisdiction of its organization to exercise corporate trust powers) and
the acceptance of such appointment by such successor Warrant Agent. The
obligation of the Company under Section 5.02(a) shall continue to the extent set
forth therein notwithstanding the resignation or removal of the Warrant Agent.
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(c) In case at any time the Warrant Agent shall resign, or shall be removed, or
shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or
shall file a petition seeking relief under the Federal Bankruptcy Code, as now
constituted or hereafter amended, or under any other applicable Federal or State
bankruptcy law or similar law or make an assignment for the benefit of its
credits or consent to the appointment of a receiver or custodian of all or any
substantial part of its property, or shall admit in writing its inability to pay
or meet its debts as they mature, or if a receiver or custodian of it or of all
or any substantial part of its property shall be appointed, or if an order of
any court shall be entered for relief against it under the provisions of the
Federal Bankruptcy Code, as now constituted or hereafter amended, or under any
other applicable Federal or State bankruptcy law or similar law, or if any
public officer shall have taken charge or control of the Warrant Agent or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, a successor Warrant Agent, qualified as aforesaid, shall be
appointed by the Company by an instrument in writing, filed with the successor
Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent
and acceptance by the successor Warrant Agent of such appointment, the Warrant
Agent shall cease to be a Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an instrument
accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without any further act, deed or conveyance, shall become vested with all
the authority, rights, powers, trusts, immunities, duties and obligations of
such predecessor with like effect as if originally named as Warrant Agent
hereunder, and such predecessor, upon payment of its charges and disbursements
then unpaid, shall thereupon become obligated to transfer, deliver and pay over,
and such successor Warrant Agent shall be entitled to receive, all monies,
securities and other property on deposit with or held by such predecessor, as
Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party, or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.
ARTICLE VI
MISCELLANEOUS.
SECTION 6.01. Amendment. This Agreement may be amended by the parties
hereto, without the consent of the holder of any Warrant Certificate, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or making any other provisions with
respect to matters or questions arising under this Agreement as the Company and
the Warrant Agent may deem necessary or desirable; provided that such action
shall not adversely affect the interests of the holders of the Warrant
Certificates.
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SECTION 6.02. Notices and Demands to the Company and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
the holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice or demand to
the Company.
SECTION 6.03. Addresses. Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to ___________,
Attention: ______________, and any communication from the Warrant Agent to the
Company with respect to this Agreement shall be addressed to TRW Inc., 1900
Richmond Road, Cleveland, Ohio 44124, Attention: Secretary (or such other
address as shall be specified in writing by the Warrant Agent or by the
Company).
SECTION 6.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by, and
construed in accordance, with the laws of the State of New York.
SECTION 6.05. Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus relating to such Warrant Securities.
SECTION 6.06. Obtaining of Governmental Approvals; Exchange Listings.
The Company will from time to time take all action which may be necessary to
obtain and keep effective any and all permits, consents and approvals of
governmental agencies and authorities and securities acts filings under United
States Federal and State laws (including without limitation a registration
statement in respect of the Warrants and Warrant Securities under the Securities
Act of 1933), which may be or become requisite in connection with the issuance,
sale, transfer and delivery of the Warrant Securities issued upon exercise of
the Warrants or upon the expiration of the period during which the Warrants are
exercisable. Prior to the issuance of any shares of Warrant Securities or other
securities upon exercise of the Warrants, the Company shall secure the listing
of such shares on any and all national securities exchanges or interdealer
quotation system upon which any of the other shares of Warrant Securities or
other securities are then listed.
SECTION 6.07. Persons Having Rights under Warrant Agreement. Nothing in
this Agreement shall give to any person other than the Company, the Warrant
Agent and the holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Agreement.
SECTION 6.08. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.
SECTION 6.09. Counterparts. This Agreement may be executed in any
number of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.
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SECTION 6.10. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the principal corporate trust office of
the Warrant Agent for inspection by the holder of any Warrant Certificate. The
Warrant Agent may require such holder to submit his Warrant Certificate for
inspection by it.
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IN WITNESS WHEREOF, each of TRW Inc. and [Warrant Agent] has caused
this Agreement to be signed by one of its duly authorized officers, and its
corporate seal to be affixed hereunto, and the same to be attested by its
Secretary or one of its Assistant Secretaries, all as of the day and year first
above written.
TRW INC.
By_____________________________________
Attest:
_____________________________________
By_____________________________________
As Warrant Agent
Attest:
_____________________________________
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EXHIBIT A
(FORM OF WARRANT CERTIFICATE)
(Face of Warrant Certificate)
[Form of Legend if Securities with Prior to ________ this Warrant Certificate
Warrants that are not immediately cannot be transferred or exchanged unless
detachable: attached to the Common Stock with which it
comprises a unit.]
[Form of Legend if Warrants are Prior to ________, Warrant is evidenced
not immediately exercisable: by this Warrant Certificate cannot be
exercised.]
EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT
AGENT AS PROVIDED HEREIN
TRW INC.
WARRANTS TO PURCHASE
________ shares of Common Stock
VOID AFTER 5 P.M. NEW YORK TIME ON _________, 19__
[No.] Warrants
This certifies that [the bearer is the] [______________ or registered
assigns is the registered] owner of the above indicated number of Warrants, each
Warrant entitling such [bearer] [owner] to purchase, at any time [after 5 P.M.
New York time on _________, 19__ and] on or before 5 P.M. New York time on
______________, 19__, ________ shares of Common Stock, par value $0.625 per
share (the "Common Stock"), (the "Warrant Securities"), of TRW Inc. (the
"Company"), on the following basis: [on __________, 19__, the exercise price of
each Warrant is [specified currency and amount]; during the period from
_____________, 19__, through and including _____________, 19__, the exercise
price of each Warrant will be [specified currency and amount] (the "Warrant
Price"). The holder may exercise the Warrants evidenced hereby by providing
certain information set forth on the back hereof and by paying in full, [in
lawful money of the United States of America] [in cash or by certified check or
official bank check or by bank wire transfer, in each case,] [by bank wire
transfer] in immediately available funds, the Warrant Price for each Warrant
exercised to the Warrant Agent (as hereinafter defined) and by surrendering this
Warrant Certificate, with the purchase form on the back hereof duly executed, at
the corporate trust office of [name of Warrant Agent], or its successor as
warrant agent (the "Warrant Agent"), [or _____________] currently at the address
specified on the reverse hereof, and upon compliance with and subject to the
conditions set forth herein and in the Warrant Agreement (as hereinafter
defined).
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Any whole number of Warrants evidenced by this Warrant Certificate may
be exercised to purchase whole shares of Warrant Securities. Upon any exercise
of fewer than all the Warrants evidenced by this Warrant Certificate, there
shall be issued to the holder hereof a new Warrant Certificate evidencing the
number of Warrants remaining unexercised.
This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of ___________, 19__ (the "Warrant Agreement")
between the Company and the Warrant Agent and is subject to the terms and
provisions contained in the Warrant Agreement, to all of which terms and
provisions the holder of this Warrant Certificate consents by acceptance hereof.
Copies of the Warrant Agreement are on file at the above-mentioned office of the
Warrant Agent [and at _____________]. The number of Warrant Securities and the
Warrant Price are subject to adjustment as provided in the Warrant Agreement.
[If Common Stock with bearer Warrants that are not immediately
detachable -- Prior to _____________, 19__, this Warrant Certificate may be
exchanged or transferred only together with the Common Stock to which this
Warrant Certificate was initially attached, and only for the purpose of
effecting, or in conjunction with, an exchange or transfer of such Common Stock.
After such date, this [If Common Stock with bearer Warrants which are
immediately detachable -- This] Warrant Certificate, and all rights hereunder,
may be transferred by delivery and the Company and the Warrant Agent may treat
the bearer hereof as the owner for all purposes.]
[If Common Stock with registered Warrants that are not immediately
detachable -- Prior to ____________, 19__, this Warrant Certificate may be
exchanged or transferred only together with the Common Stock to which this
Warrant Certificate was initially attached, and only for the purpose of
effecting, or in conjunction with, an exchange or transfer of such Common Stock.
After such date, this [If Common Stock with registered Warrants which are
immediately detachable -- Transfer of this] Warrant Certificate may be
registered when this Warrant Certificate is surrendered to the corporate trust
office of the Warrant Agent [or ________________] by the registered owner or his
assigns, in person or by an attorney duly authorized in writing, in the manner
and subject to the limitations provided in the Warrant Agreement.]
[If Common Stock with Warrants that are not immediately detachable --
Except as provided in the immediately preceding paragraph after] [If Common
Stock with Warrants that are immediately detachable -- After] countersignature
by the Warrant Agent and prior to the expiration of this Warrant Certificate,
this Warrant Certificate may be exchanged at the corporate trust office of the
Warrant Agent for Warrant Certificates representing the same aggregate number of
Warrants.
This Warrant Certificate shall not entitle the holder hereof to any of
the rights of a holder of the Warrant Securities, including, without limitation,
the right to receive dividends or other distributions, to vote on any matter
submitted to the Company's stockholders or to receive notice of any meetings of
stockholders.
A-2
<PAGE> 18
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Dated as of ______________, 19__.
TRW Inc.
By______________________________
Attest:
_______________________________________
Countersigned:
_______________________________________
As Warrant Agent
By_____________________________________
Authorized Signature
A-3
<PAGE> 19
[REVERSE OF WARRANT CERTIFICATE]
INSTRUCTIONS FOR EXERCISE OF WARRANT
To exercise the Warrants evidenced hereby, the holder must pay [in cash
or by certified check or official bank check or by bank wire transfer] [by bank
wire transfer] [in immediately available funds] the Warrant Price in full for
Warrants exercised to [insert name of Warrant Agent] Corporate Trust Department,
[insert address of Warrant Agent], Attn. _________ [or _________ ], which
[payment] [wire transfer] must specify the name of the holder and the number of
Warrants exercised by such holder. In addition, the holder must complete the
information required below and present this Warrant Certificate in person or by
mail (registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
TO BE EXECUTED UPON EXERCISE OF WARRANT
The undersigned hereby irrevocable elects to exercise _________
Warrants, evidenced by this Warrant Certificate, to purchase _______ shares of
Common Stock, par value $0.625 per share (the "Warrant Securities"), of TRW Inc.
and represents that he has tendered payment for such Warrant Securities (in cash
or by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] in immediately available funds to the order of
TRW Inc., c/o [insert name and address of Warrant Agent], in the amount of
[specified currency and amount] in accordance with the terms hereof. The
undersigned requests that said shares of Warrant Securities be registered in the
authorized denominations, in such names and delivered all as specified in
accordance with the instructions set forth below.
If the number of Warrant exercised is less than all of the Warrant
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.
Dated:
___\___\_____ Name_________________________________
(Please Print)
(Insert Social Security Address ____________________________
or other Identifying
Number of Holder) ____________________________
Signature____________________________
A-4
<PAGE> 20
The Warrants evidenced hereby may be exercised at the following
addresses:
By hand at _________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
By mail at
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
[Instructions as to form and delivery of Warrant Securities and, if
applicable, Warrant Certificates evidencing unexercised Warrants -- complete as
appropriate.]
A-5
<PAGE> 21
[If Registered Warrant]
Assignment
(Form of Assignment To Be Executed If Holder Desires
to Transfer Warrants Evidenced Hereby)
FOR VALUE RECEIVED hereby sells, assigns and transfers unto
Please insert social security
or other identify number
____\____\______
__________________________________________________
(Please print name and address including zip code)
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution in the premises.
Dated:
___________________________
Signature
(Signature must conform in
all respects to name of
holder as specified on the
face of this Warrant
Certificate and must bear a
signature guarantee by a
bank, trust company or
member broker of the New
York, Midwest or
Philadelphia Stock Exchange
or the Pacific Exchange.)
Signature Guaranteed:
_____________________________________________
A-6
<PAGE> 1
EXHIBIT 4(j)
TRW INC.
FORM OF COMMON STOCK WARRANT AGREEMENT
[FOR COMMON STOCK WARRANTS SOLD ALONE]*
WARRANT AGREEMENT dated as of _____________ between TRW Inc., an Ohio
corporation (hereinafter called the "Company") and _______________, as Warrant
Agent (therein called the "Warrant Agent").
WHEREAS, the Company proposes to sell warrant certificates evidencing
one or more warrants (the "Warrants" or, individually a "Warrant") representing
the right to purchase in the aggregate up to __________ shares of the Company's
common stock, par value $0.625 per share (the "Common Stock"), (the "Warrant
Securities"), such warrant certificates and other warrant certificates issued
pursuant to this Agreement being herein called the "Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company in connection with the issuance, exchange, exercise and replacement of
the Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and
conditions on which they may be issued, exchanged, exercised and replaced:
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:
ARTICLE I.
ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT CERTIFICATES.
SECTION 1.01 Issuance of Warrants. Each Warrant Certificate shall
evidence one or more Warrants. Each Warrant evidenced thereby shall represent
the right, subject to the provisions contained herein and therein, to purchase
___________ share(s) of Common Stock.
SECTION 1.02 Execution and Delivery of Warrant Certificates. Each
Warrant Certificate, whenever issued, shall be in [bearer] [registered] form
substantially in the form set forth in Exhibit A hereto, shall be dated _______
and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the
- ----------
*Monetary amounts may be in U.S. dollars or in foreign denominated currency or
units consisting of multiple currencies.
<PAGE> 2
officers of the Company executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any stock exchange on which the Warrants may be listed, or to conform to
usage. The Warrant Certificates shall be signed on behalf of the Company by [its
Chairman of the Board, its President, one of its Vice Presidents, its Treasurer
or one of its Assistant Treasurers] under its corporate seal and attested by its
Secretary or one of its Assistant Secretaries. Such signatures may be manual or
facsimile signatures of such authorized officers and may be imprinted or
otherwise reproduced on the Warrant Certificates. The seal of the Company may be
in the form of a facsimile thereof and may be impressed, affixed, imprinted or
otherwise reproduced on the Warrant Certificates.
No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature by
the Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence that the Warrant Certificate so countersigned has been duly
issued hereunder.
In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent, such Warrant Certificates may
be countersigned and delivered notwithstanding that the person who signed such
Warrant Certificates ceased to be such officer of the Company; and any Warrant
Certificate may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Warrant Certificate, shall be the proper
officers of the Company, although at the date of the execution of this Agreement
any such person was not such officer.
[If bearer Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean the bearer of such Warrant Certificate.]
[If registered Warrants -- The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean any person in whose name at the time any
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent for that purpose.]
SECTION 1.03. Issuance of Warrant Certificates. Warrant Certificates
evidencing the right to purchase an aggregate of ___________ maximum shares of
Warrant Securities (except as provided in Sections 1.04, 2.03(c), 3.02 and 4.01)
may be executed by the Company and delivered to the Warrant Agent upon the
execution of this Warrant Agreement or from time to time thereafter. The Warrant
Agent shall, upon receipt of Warrant Certificates duly executed on behalf of the
Company, countersign Warrant Certificates evidencing Warrants representing the
right to purchase up to __________ shares of Warrant Securities and shall
deliver such Warrant Certificates to or upon the order of the Company.
Subsequent to such original issuance of the Warrant Certificates, the Warrant
Agent shall countersign a Warrant Certificate only if the Warrant Certificate is
issued in exchange or substitution for one or more previously countersigned
Warrant Certificates [If registered
2
<PAGE> 3
Warrants -- or in connection with their transfer], as hereinafter provided or as
provided in Section 2.03(c).
SECTION 1.04. Temporary Warrant Certificates. Pending the preparation
of definitive Warrant Certificates, the Company may execute, and upon the order
of the Company, the Warrant Agent shall authenticate and deliver, temporary
Warrant Certificates which are printed, lithographed, typewritten, mimeographed
or otherwise produced substantially of the tenor of the definitive Warrant
Certificate in lieu of which they are issued and with such insertions,
omissions, substitutions and other variations as the officers executing such
Warrant Certificate may determine as appropriate, as evidenced by their
execution of such Warrant Certificates.
If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay. After
the preparation of definitive Warrant Certificates, the temporary Warrant
Certificates shall be exchangeable for definitive Warrant Certificates upon
surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or __________________], without charge to the holders. Upon
surrender for cancellation of any one or more temporary Warrant Certificates the
Company shall execute and the Warrant Agent shall authenticate and deliver in
exchange therefor definitive Warrant Certificates representing the same
aggregate number of Warrants. Until so exchanged, the temporary Warrant
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Warrant Certificates.
ARTICLE II.
WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS.
SECTION 2.01. Warrant Price. On __________, 19__ the exercise price of
each Warrant is [specified currency and amount]. During the period from
_____________, 19__ through and including _____________, 19__, the exercise
price of each Warrant will be [specified currency and amount]. The Warrant Price
is subject to adjustment as set forth in Section 2.03(g). Such purchase price of
Warrant Securities is referred to in this Agreement as the "Warrant Price".
SECTION 2.02. Duration of Warrants. Each Warrant may be exercised in
whole at any time, as specified herein, on or after [the date thereof]
[___________, 19__] and at or before 5 P.M. New York time on _________, 19__
(the "Expiration Date"). Each Warrant not exercised at or before 5 P.M. New York
time on the Expiration Date shall become void, and all rights of the holder of
the Warrant Certificate evidencing such Warrant under this Agreement shall
cease.
SECTION 2.03. Exercise of Warrants. (a) During the period specified in
Section 2.02, any whole number of Warrants may be exercised by providing certain
information set forth on the reverse side of the Warrant Certificate and by
paying in full, [in lawful money of the United States of America,] [in cash or
by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] in immediately available funds, the Warrant Price
for each Warrant exercised, to the Warrant Agent at its corporate trust office
[or at _______], provided that such exercise is subject to receipt within five
business days of such [payment] [wire transfer] by
3
<PAGE> 4
the Warrant Agent of the Warrant Certificate with the form of election to
purchase Warrant Securities set forth on the reverse side of the Warrant
Certificate properly completed and duly executed. The date on which payment in
full of the Warrant Price is received by the Warrant Agent shall, subject to
receipt of the Warrant Certificate as aforesaid, be deemed to be the date on
which the Warrant is exercised. The Warrant Agent shall deposit all funds
received by it in payment of the Warrant Price in an account of the Company
maintained with it and shall advise the Company by telephone at the end of each
day on which a [payment] [wire transfer] for the exercise of Warrants is
received of the amount so deposited to its account. The Warrant Agent shall
promptly confirm such telephone advice to the Company in writing.
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company and the transfer agent for the Common Stock (the
"Transfer Agent") of (i) the number of Warrants exercised, (ii) the instructions
of each holder of the Warrant Certificates evidencing such Warrants with respect
to delivery of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any,
of the Warrants remaining after such exercise, and (iv) such other information
as the Company or the Transfer Agent shall reasonably require.
(c) As soon as practicable after the exercise of any Warrant, the
Company shall issue or cause to be issued to or upon the order of the holder of
the Warrant Certificate evidencing such Warrant, a stock certificate
representing the Warrant Securities to which such holder is entitled. If fewer
than all of the Warrants evidenced by such Warrant Certificate are exercised,
the Company shall execute, and an authorized officer of the Warrant Agent shall
manually countersign and deliver, a new Warrant Certificate evidencing the
number of such Warrants remaining unexercised.
(d) The Company will pay any documentary stamp taxes attributable to
the initial issuance of the Warrant Securities upon the exercise of the
Warrants; provided, however, that the Company shall not be required to pay any
stamp or other tax or other governmental charge required to be paid in
connection with any transfer involved in the issue of the certificate
representing Warrant Securities; and in the event that any such transfer is
involved, the Company shall not be required to issue or deliver any certificate
representing any Warrant Security until such tax or other charge shall have been
paid or it has been established to the Company's satisfaction that no such tax
or other charge is due.
(e) Subject to Section 2.03(f), in case the Company shall (i) pay a
dividend in Common Stock or shares of capital stock convertible into Common
Stock, or make a distribution of shares of Common Stock or shares of capital
stock convertible into Common Stock, on its outstanding Common Stock, (ii)
subdivide its outstanding Common Stock into a greater number of such shares,
(iii) combine its outstanding Common Stock into a smaller number of shares of
Common Stock or (iv) issue, by reclassification of its Common Stock, other
securities of the Company, the number of shares of Common Stock and, for
transactions referred to in clauses (i) and (iv) the kind of securities,
purchasable upon exercise of a Warrant outstanding immediately prior thereto
shall be adjusted so that the holder of a Warrant shall be entitled to receive
the kind and number of shares of Common Stock or other securities of the Company
that such holder would have owned or would have been entitled to receive
immediately after the happening of any of the events described above, had the
4
<PAGE> 5
Warrant been exercised immediately prior to the happening of such event or any
record date with respect thereto. Except as provided in this Section 2.03(e), no
adjustment to the Warrant Securities shall be made in respect of any dividends
or distributions out of surplus or net profit. Any adjustment made pursuant to
this Section 2.03(e) shall become effective immediately after the effective date
of such event retroactive to the record date, if any, for such event.
(f) No adjustment in the number of shares of Warrant Securities
purchasable pursuant to the Warrants shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in the number
of shares of Warrant Securities then purchasable upon the exercise of the
Warrants in the aggregate or, if the Warrants are not then exercisable, the
number of shares of Warrant Securities purchasable upon the exercise of the
Warrants on the first date thereafter that the Warrants become exercisable;
provided, however, that any adjustments which by reason of this Section 2.03(f)
are not required to be made immediately shall be carried forward and taken into
account in any subsequent adjustment.
(g) Whenever the kind and/or number of shares of Common Stock
purchasable upon the exercise of a Warrant is adjusted as provided in this
Section 2.03, the Warrant Price payable upon exercise of the Warrant shall be
adjusted by multiplying such Warrant Price immediately prior to such adjustment
by a fraction, of which the numerator shall be the number of shares of Common
Stock or other securities purchasable upon the exercise of such Warrant
immediately prior to such adjustment and of which the denominator shall be the
number of shares of Common Stock or other securities so purchasable immediately
thereafter. If, as a result of any adjustment as provided in this Section 2.03,
the holder of any Warrant shall become entitled to receive shares of two or more
classes of capital stock of the Company, the Board of Directors of the Company
shall determine by resolution the allocation of the adjusted Warrant Price
between or among shares of such classes of capital stock. Such determination, if
based upon the Board of Directors' good faith business judgment, shall be
binding upon the registered holders. The Company will deliver a certified copy
of such resolution of the Board of Directors to the Warrant Agent.
(h) Whenever the number of shares of Warrant Securities purchasable
upon the exercise of a Warrant or the Warrant Price is adjusted as herein
provided, the Company shall cause to be promptly given to the Warrant Agent [and
each registered holder of a Warrant] written notice of such adjustment or
adjustments and, with regard to the Warrant Agent only, a certificate of the
chief financial officer of the Company setting forth the number and kind of
shares of capital stock purchasable upon the exercise of a Warrant and the
Warrant Price after such adjustment, a brief statement of the facts requiring
such adjustment and the computation by which such adjustment was made.
(i) In case of any consolidation of the Company with or merger of the
Company into another corporation or in case of any sale or conveyance to another
corporation of the property, assets or business of the Company as an entirety or
substantially as an entirety, the Company or such successor or purchasing
corporation, as the case may be, shall execute with the Warrant Agent an
agreement that the registered holders of the Warrants shall have the right
thereafter, upon payment of the Warrant Price in effect immediately prior to
such action, to purchase upon exercise of each Warrant, the kind and amount of
shares and other securities and property which it would have owned
5
<PAGE> 6
or have been entitled to receive after the happening of such consolidation,
merger, sale or conveyance had each Warrant been exercised immediately prior to
such action. Any such agreements referred to in this Section 2.03(i) shall
provide for adjustments, which shall be as nearly equivalent as may be
practicable to the adjustments provided for in Section 9 hereof. The provisions
of this Section 2.03(i) shall similarly apply to successive consolidations,
mergers, sales or conveyances.
(j) Irrespective of any adjustments in the Warrant Price or the number
or kind of securities issuable upon exercise of Warrants, Warrant Certificates
theretofore or thereafter issued may continue to express the same price and
number of securities as are stated in the similar Warrant Certificates initially
issuable pursuant to this Agreement. However, the Company may, at any time in
its sole discretion (which shall be conclusive), make any change in the form of
Warrant Certificate that it may deem appropriate and that does not affect the
substance thereof; and any Warrant Certificate thereafter issued, whether [upon
registration of transfer of, or] in exchange or substitution for, an outstanding
Warrant Certificate, may be in the form so changed.
(k) The Company shall not be required to issue fractional shares of
Common Stock or any other security on the exercise of a Warrant. If any fraction
of a share of Common Stock or other security would, except for the provisions of
this Section 2.03(k), be issuable on the exercise of a Warrant (or specified
portion thereof), the Company shall in lieu thereof pay an amount in cash equal
to the then Current Market Price multiplied by such fraction. For purposes of
this Agreement, the term "Current Market Price" shall mean (i) if the Common
Stock is traded on the New York Stock Exchange (the "NYSE") or on any other
national securities exchange or on Nasdaq, the average for the 30 consecutive
trading days immediately preceding the date in question of the daily per share
closing prices of the Common Stock on the NYSE or on the principal national
securities exchange on which it is listed or on Nasdaq, as the case may be, or
(ii) if the Common Stock or other security is traded in the over-the-counter
market and not on the NYSE or on any other national securities exchange or on
Nasdaq, the average of the per share closing bid prices of the Common Stock on
the 30 consecutive trading days immediately preceding the date in question, as
reported by Nasdaq or an equivalent generally accepted reporting service. The
closing price referred to in clause (i) above shall be the last reported sale
price or, in the case no such reported sale takes place on such day, the average
of the reported closing bid and asked prices, in either case on the NYSE or on
the principal national securities exchange on which the Common Stock or other
security is then listed or on Nasdaq. For purposes of clause (ii) above, if
trading in the Common Stock or other security is not reported by Nasdaq, the bid
price referred to in said clause shall be the lowest bid price as reported in
the "pink sheets" published by National Quotation Bureau, Incorporated.
ARTICLE III.
OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES.
SECTION 3.01. No Rights as Stockholder Conferred by Warrants or Warrant
Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle
the holder thereof to any of the rights of a holder of Warrant Securities,
including, without limitation, the right to receive dividends
6
<PAGE> 7
or other distributions, to vote on any matter submitted to the Company's
stockholders or to receive notice of any meetings of stockholders.
SECTION 3.02. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon the
issuance of any new Warrant Certificate under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this Section
in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an
additional contractual obligation of the Company, whether or not the lost,
stolen or destroyed Warrant Certificate shall be at any time enforceable by
anyone, and shall be entitled to the benefits of this Agreement equally and
proportionately with any and all other Warrant Certificates duly executed and
delivered hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.
SECTION 3.03. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a Warrant
Certificate, without the consent of the Warrant Agent, the Trustee, the holder
of any Warrant Securities or the holder of any other Warrant Certificate, may,
in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company suitable to enforce
or otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
SECTION 3.04. Merger, Consolidation, Conveyance, Transfer or Lease. If
at any time there shall be a merger, consolidation, conveyance, transfer or
lease of assets subject to Section 12.01 of the Indenture, then in any such
event the successor or assuming corporation referred to therein shall succeed to
and be substituted for the Company, with the same effect, subject to the
Indenture, as if it had been named herein and in the Warrant as the Company; the
Company shall thereupon be relieved of any further obligation hereunder or under
the Warrants, and the Company as the predecessor corporation may thereupon or at
any time thereafter be dissolved, wound up or liquidated. Such successor or
assuming corporation thereupon may cause to be signed, and may issue either in
its own name or in the name of the Company, any or all of the Warrants issuable
hereunder that theretofore shall not have been signed by the Company, and may
execute and deliver Warrant Securities in its own name pursuant to such
Indenture, in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had
7
<PAGE> 8
been issued at the date of the execution hereof. In any case of any such
consolidation, merger, conveyance, transfer or lease, such changes in
phraseology and form (but not in substance) may be made in the Warrants
thereafter to be issued as may be appropriate.
The Warrant Agent may receive a written opinion of legal counsel as
conclusive evidence that any such consolidation, merger, conveyance, transfer or
lease complies with the provisions of this Section 3.04 and the Indenture.
ARTICLE IV.
EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES.
SECTION 4.01. Exchange and Transfer of Warrant Certificates. Upon
surrender at the corporate trust office of the Warrant Agent [or ________],
Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants. [If registered
Warrants -- or the transfer thereof may be registered in whole or in part];
provided that such other Warrant Certificates evidence the same aggregate number
of Warrants as the Warrant Certificates so surrendered. [If registered Warrants
- -- The Warrant Agent shall keep, at its corporate trust office [and at _______],
books in which, subject to such reasonable regulations as it may prescribe, it
shall register Warrant Certificates and exchanges and transfers of outstanding
Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant
Agent at its corporate trust office [or _________] for exchange [or registration
of transfer], properly endorsed or accompanied by appropriate instruments of
registration of transfer and written instructions for transfer, all in form
satisfactory to the Company and the Warrant Agent.] No service charge shall be
made for any exchange [or registration of transfer] or Warrant Certificates, but
the Company may require payment of a sum sufficient to cover any stamp or other
tax or other governmental charge that may be imposed in connection with any such
exchange [or registration of transfer]. Whenever any Warrant Certificates are so
surrendered for exchange [or registration of transfer] an authorized officer of
the Warrant Agent shall manually countersign and deliver to the person or
persons entitled thereto a Warrant Certificate or Warrant Certificates duly
authorized and executed by the Company, as so requested. The Warrant Agent shall
not be required to effect any exchange [or registration of transfer] which will
result in the issuance of a Warrant Certificate evidencing a fraction of a
Warrant or a number of full Warrants and a fraction of a Warrant. All Warrant
Certificates issued upon any exchange [or registration of transfer] of Warrant
Certificates shall be the valid obligations of the Company, evidencing the same
obligations, and entitled to the same benefits under this Agreement, as the
Warrant Certificates surrendered for such exchange [or registration of
transfer.]
SECTION 4.02. Treatment of Holders of Warrant Certificates. [If bearer
Warrants -- Each Warrant Certificate shall be transferable by delivery and shall
be deemed negotiable and the bearer of each Warrant Certificate may be treated
by the Company, the Warrant Agent and all other persons dealing with such bearer
as the absolute owner thereof for any purpose and as the person entitled to
exercise the rights represented by the Warrants evidenced thereby, any notice to
the contrary withstanding.] [If registered Warrants -- The Company and the
Warrant Agent may treat the registered holder as the absolute owner thereof for
any purpose and as the person entitled to exercise
8
<PAGE> 9
the rights represented by the Warrants evidenced thereby, any notice to the
contrary notwithstanding.]
SECTION 4.03. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange[, registration of transfer] or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu thereof.
The Warrant Agent shall deliver to the Company from time to time otherwise
dispose of canceled Warrant Certificates in a manner satisfactory to the
Company.
ARTICLE V.
CONCERNING THE WARRANT AGENT.
SECTION 5.01. Warrant Agent. The Company hereby appoints _____________
as Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth and
_____________ hereby accepts such appointment. The Warrant Agent shall have the
powers and authority granted to and conferred upon it in the Warrant
Certificates and herein and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and provisions
hereof.
SECTION 5.02. Conditions of Warrant Agent's Obligations. The Warrant
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the holders from time to time of the Warrant
Certificates shall be subject:
(a) Compensation and Indemnification. The Company agrees
promptly to pay the Warrant Agent the compensation to be agreed upon
with the Company for all services rendered by the Warrant Agent and to
reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including counsel fees) incurred by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company
also agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, as well as the
costs and expenses of defending against any claim of such liability.
(b) Agent for the Company. In acting under this Warrant
Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligation or relationship of agency or trust for or with any of the
holders of Warrant Certificates or beneficial owners of Warrants.
9
<PAGE> 10
(c) Counsel. The Warrant Agent may consult with counsel
satisfactory to it, and the advice of such counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance
with the advice of such counsel.
(d) Documents. The Warrant Agent shall be protected and shall
incur no liability for or in respect of any action taken or thing
suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.
(e) Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have
if it were not the Warrant Agent hereunder, and, to the extent
permitted by applicable law, it or they may engage or be interested in
any financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of holders
of obligations of the Company as freely as if it were not the Warrant
Agent hereunder. Nothing in this Warrant Agreement shall be deemed to
prevent the Warrant Agent from acting as trustee under any indenture of
the Company.
(f) No Liability for Interest. The Warrant Agent shall have no
liability for interest on any monies at any time received by it
pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.
(g) No Liability for Invalidity. The Warrant Agent shall have
no liability with respect to any invalidity of this Agreement or any of
the Warrant Certificates.
(h) No Responsibility for Representations. The Warrant Agent
shall not be responsible for any of the recitals or representations
herein or in the Warrant Certificates (except as to the Warrant Agent's
counter-signature thereon), all of which are made solely by the
Company.
(i) No Implied Obligations. The Warrant Agent shall be
obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or
obligations shall be read into this Agreement or the Warrant
Certificates against the Warrant Agent. The Warrant Agent shall not be
under any obligation to take any action hereunder which may tend to
involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The
Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant
Certificates authenticated by the Warrant Agent and delivered by it to
the Company pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrant Certificates. The Warrant Agent
shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained
herein or in the Warrant Certificates or in the case of the receipt of
any written demand from a holder of a Warrant Certificate with respect
to such default,
10
<PAGE> 11
including, without limiting the generality of the foregoing, any duty
or responsibility to initiate or attempt to initiate any proceedings at
law or otherwise or, except as provided in Section 6.02 hereof, to make
any demand upon the Company.
SECTION 5.03. Resignation and Appointment of Successor. (a) The Company
agrees, for the benefit of the holders from time to time of the Warrant
Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying the date
on which its desired resignation shall become effective; provided, however, that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the date
when it shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a successor
Warrant Agent (which shall be a bank or trust company authorized under the laws
of the jurisdiction of its organization to exercise corporate trust powers) and
the acceptance of such appointment by such successor Warrant Agent. The
obligation of the Company under Section 5.02(a) shall continue to the extent set
forth therein notwithstanding the resignation or removal of the Warrant Agent.
(c) In case at any time the Warrant Agent shall resign, or shall be
removed, or shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or shall file a petition seeking relief under the Federal Bankruptcy
Code, as now constituted or hereafter amended, or under any other applicable
Federal or State bankruptcy law or similar law or make an assignment for the
benefit of its creditors or consent to the appointment of a receiver or
custodian of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a receiver
or custodian of it or of all or any substantial part of its property shall be
appointed, or if an order of any court shall be entered for relief against it
under the provisions of the Federal Bankruptcy Code, as now constituted or
hereafter amended, or under any other applicable Federal or State bankruptcy or
similar law, or if any public officer shall have taken charge or control of the
Warrant Agent or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as aforesaid,
shall be appointed by the Company by an instrument in writing, filed with the
successor Warrant Agent. Upon the appointment as aforesaid of a successor
Warrant Agent and acceptance by the successor Warrant Agent of such appointment,
the Warrant Agent shall cease to be Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an instrument
accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without any further act, deed or conveyance, shall become vested with all
the authority, rights, powers, trusts, immunities, duties and obligations of
such predecessor with like effect as if originally named as Warrant Agent
hereunder, and such predecessor, upon payment of its charges and disbursements
then unpaid, shall thereupon become obligated to transfer, deliver and pay over,
and such successor Warrant Agent shall be entitled to
11
<PAGE> 12
receive, all monies, securities and other property on deposit with or held by
such predecessor as Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.
12
<PAGE> 13
ARTICLE VI.
MISCELLANEOUS.
SECTION 6.01. Amendment. This Agreement may be amended by the parties
hereto, without the consent of the holder of any Warrant Certificate, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or making any other provisions with
respect to matters or questions arising under this Agreement as the Company and
the Warrant Agent may deem necessary or desirable, provided that such action
shall not adversely affect the interests of the holders of the Warrant
Certificates.
SECTION 6.02. Notices and Demands to the Company and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
the holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice or demand to
the Company.
SECTION 6.03. Addresses. Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to
_________________, Attention: _____________ and any communication from the
Warrant Agent to the Company with respect to this Agreement shall be addressed
to TRW Inc., 900 Richmond Road, Cleveland, Ohio 44124, Attention: Secretary (or
such other address as shall be specified in writing by the Warrant Agent or by
the Company).
SECTION 6.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by, and
construed in accordance with, the laws of the State of New York.
SECTION 6.05. Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus relating to such Warrant Securities.
SECTION 6.06. Obtaining of Government Approvals; Exchange Listings. The
Company will from time to time take any action which may be necessary to obtain
and keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities acts filings under United States Federal
and State laws (including without limitation a registration statement in respect
of the Warrants and Warrant Securities under the Securities Act of 1933), which
may be or become requisite in connection with the issuance, sale, transfer and
delivery of the Warrant Certificates, the exercise of the Warrants, the
issuance, sale, transfer and delivery of the Warrant Securities issued upon
exercise of the Warrants or upon the expiration of the period during which the
Warrants are exercisable. Prior to the issuance of any shares of Warrant
Securities or other securities upon exercise of the Warrants, the Company shall
secure the listing of shares on any and all national securities exchanges or
interdealer quotation system upon which any of the other shares of Warrant
Securities or other securities are then listed.
13
<PAGE> 14
SECTION 6.07. Persons Having Rights under Warrant Agreement. Nothing in
this Agreement shall give to any person other than the Company, the Warrant
Agent and the holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Agreement.
SECTION 6.08. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.
SECTION 6.09. Counterparts. This Agreement may be executed in any
number of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.
SECTION 6.10. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the principal corporate trust office of
the Warrant Agent for inspection by the holder of any Warrant Certificate. The
Warrant Agent may require such holder to submit his Warrant Certificate for
inspection by it.
14
<PAGE> 15
IN WITNESS WHEREOF, each of TRW Inc. and [Warrant Agent] has caused
this Agreement to be signed by one of its duly authorized officers, and its
corporate seal to be affixed hereunto, and the same to be attested by its
Secretary or one of its Assistant Secretaries, all as of the day and year first
above written.
TRW, INC.
By_______________________________________
Attest:
_______________________________________
By_______________________________________
As Warrant Agent
Attest:
_______________________________________
15
<PAGE> 16
EXHIBIT A
(FORM OF WARRANT CERTIFICATE)
(Face of Warrant Certificate)
[Form of Legend if Warrants are Prior to ______, Warrants evidenced by this
not immediately exercisable: Warrant Certificate cannot be exercised.]
EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT
AGENT AS PROVIDED HEREIN
TRW INC.
WARRANTS TO PURCHASE
_________ shares of Common Stock
VOID AFTER 5 P.M. NEW YORK TIME ON __________, 19__
[No.] Warrants
This certifies that [the bearer is the] [____________ or
registered assigns is the registered] owner of the above indicated number of
Warrants, each Warrant entitling such [bearer] [owner] to purchase, at any time
[after 5 P.M. New York time on _______, 19__ and] on or before 5 P.M. New York
time on _______, 19__, __________ shares of Common Stock, par value $0.625 per
share (the "Warrant Securities"), of TRW Inc. (the "Company"), on the following
basis: [on _______, 19__ the exercise price of each Warrant is [specified
currency and amount]; during the period from _______, 19__, through and
including ____________, 19__, the exercise price of each Warrant will be
[specified currency and amount] (the "Warrant Price"). The holder may exercise
the Warrants evidenced hereby by providing certain information set forth on the
back hereof and by paying in full, [in lawful money of the United States of
America] [in cash or by certified check or official bank check or by bank wire
transfer, in each case,] [by bank wire transfer] in immediately available funds,
the Warrant Price for each Warrant exercised to the Warrant Agent (as
hereinafter defined) and by surrendering this Warrant Certificate, with the
purchase form on the back hereof duly executed, at the corporate trust office of
[name of Warrant Agent], or its successor as warrant agent (the "Warrant
Agent"), [or __________] currently at the address specified on the reverse
hereof, and upon compliance with and subject to the conditions set forth herein
and in the Warrant Agreement (as hereinafter defined).
Any whole number of Warrants evidenced by this Warrant Certificate may
be exercised to purchase whole shares of Warrant Securities. Upon any exercise
of fewer than all the Warrants evidenced by this Warrant Certificate, there
shall be issued to the holder hereof a new Warrant Certificate evidencing the
number of Warrants remaining unexercised.
A-1
<PAGE> 17
This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of ________, 19__ (the "Warrant Agreement") between
the Company and the Warrant Agent and is subject to the terms and provisions
contained in the Warrant Agreement, to all of which terms and provisions the
holder of this Warrant Certificate consents by acceptance hereof. Copies of the
Warrant Agreement are on file at the above-mentioned office of the Warrant Agent
[and at ________________]. The number of Warrant Securities and the Warrant
Price are subject to adjustment as provided in the Warrant Agreement.
[Bearer Warrants -- This Warrant Certificate, and all rights hereunder
may be transferred by delivery and the Company and the Warrant Agent may treat
the bearer hereof as the bearer for all purposes.]
[Registered Warrants -- This Warrant Certificate may be transferred
when surrendered at the corporate trust office of the Warrant Agent [or
__________] by registered owner or his assigns, in person or by an attorney duly
authorized in writing, in the manner and subject to the limitations provided in
the Warrant Agreement.]
After countersignature by the Warrant Agent and prior to the expiration
of this Warrant Certificate, this Warrant Certificate may be exchanged at the
corporate trust office of the Warrant Agent for Warrant Certificates
representing the same aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof to any of
the rights of a holder of the Warrant Securities, including, without limitation,
the right to receive dividends or other distributions, to vote on any matter
submitted to the Company's stockholders or to receive notice of any meetings of
stockholders.
A-2
<PAGE> 18
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Dated as of ____________, 19__.
TRW Inc.
By__________________________________
Attest:
________________________________________
Countersigned:
________________________________________
As Warrant Agent
By______________________________________
Authorized Signature
A-3
<PAGE> 19
[REVERSE OF WARRANT CERTIFICATE]
INSTRUCTIONS FOR EXERCISE OF WARRANT
To exercise the Warrants evidenced hereby, the holder must pay [in cash
or by certified check or official bank check or by bank wire transfer] [by bank
wire transfer] [in immediately available funds] the Warrant Price in full for
Warrants exercised to [insert name of Warrant Agent] Corporate Trust Department,
[insert address of Warrant Agent], Attn. _________ [or ____________ ], which
[payment] [wire transfer] must specify the name of the holder and the number of
Warrants exercised by such holder. In addition, the holder must complete the
information required below and present this Warrant Certificate in person or by
mail (registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
TO BE EXECUTED UPON EXERCISE OF WARRANT
The undersigned hereby irrevocable elects to exercise ________
Warrants, evidenced by this Warrant Certificate, to purchase _________ shares of
Common Stock, par value $0.625 per share (the "Warrant Securities"), of TRW Inc.
and represents that he has tendered payment for such Warrant Securities (in cash
or by certified check or official bank check or by bank wire transfer, in each
case,] [by bank wire transfer] in immediately available funds to the order of
TRW Inc., c/o [insert name and address of Warrant Agent], in the amount of
[specified currency and amount] in accordance with the terms hereof. The
undersigned requests that said shares of Warrant Securities be registered in the
authorized denominations, in such names and delivered] all as specified in
accordance with the instructions set forth below.
If the number of Warrant exercised is less than all of the Warrant
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.
Dated:
____\____\_____ Name_________________________________
(Please Print)
(Insert Social Security Address __________________________
or other Identifying
Number of Holder) __________________________
Signature __________________________
A-4
<PAGE> 20
The Warrants evidenced hereby may be exercised at the following
addresses:
By hand at _________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
By mail at _________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
[Instructions as to form and delivery of Warrant Securities and, if
applicable, Warrant Certificates evidencing unexercised Warrants -- complete as
appropriate.]
A-5
<PAGE> 21
[If Registered Warrant]
Assignment
(Form of Assignment To Be Executed If Holder Desires
to Transfer Warrants Evidenced Hereby)
FOR VALUE RECEIVED, __________________ hereby sells, assigns and transfers unto
Please insert social security
or other identify number
____\____\_____
__________________________________________________
(Please print name and address including zip code)
________________________________________________________________________________
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution in the premises.
Dated:
___________________________
Signature
(Signature must conform in
all respects to name of
holder as specified on the
face of this Warrant
Certificate and must bear a
signature guarantee by a
bank, trust company or
member broker of the New
York, Midwest or
Philadelphia Stock Exchange
or the Pacific Exchange.)
Signature Guaranteed:
____________________________________________
A-6
<PAGE> 1
EXHIBIT 5
March 20, 1998
TRW Inc.
1900 Richmond Rd.
Cleveland, Ohio 44124
Re: Registration Statement on Form S-3
Ladies and Gentlemen:
I am General Counsel of TRW Inc. (the "Company") and have acted in that capacity
in connection with the proposed issuance by the Company of (i) shares of its
common stock, par value $0.625 per share (the "Shares"), (ii) debt securities
("Debt Securities"), (iii) warrants to purchase Common Stock ("Common Stock
Warrants") and (iv) warrants to purchase Debt Securities (the "Debt Warrants"
and, together with the Common Stock Warrants, the "Warrants") providing
aggregate gross proceeds of up to $1,000,000,000 in one or more public offerings
being registered under the Securities Act of 1933 (the "Securities Act") in a
Registration Statement on Form S-3 (the "Registration Statement"). The Shares,
the Debt Securities and the Warrants are referred to herein as the "Offered
Securities". The Offered Securities will be offered and sold pursuant to Rule
415 under the Securities Act from time to time on terms to be determined at the
time of sale.
In my capacity as General Counsel, I am familiar with the proceedings, corporate
and other, relating to the authorization and issuance of the Offered Securities.
I have examined, or caused to be examined, such statutes, instruments relating
to the Company, corporate records of the Company, agreements and other
instruments and documents, and I have made or caused to be made such
investigation of law, as I have deemed appropriate as a basis for the opinions
expressed below.
Based upon the foregoing, I am of the opinion that:
1. Any Shares offered and sold as contemplated in the Registration Statement
(including Shares issuable upon exercise of Common Stock Warrants) are duly
authorized and, when issued and sold for legal consideration in accordance with
the resolutions of the Board of Directors authorizing the offer, issuance and
sale of the Offered Securities (the "Authorizing Resolutions") and, if
applicable, the terms of the Common Stock Warrant related thereto, will be
validly issued, fully paid and nonassessable.
2. Any Debt Securities offered and sold as contemplated in the Registration
Statement (including Debt Securities issuable upon exercise of Debt Warrants),
when issued and sold in accordance with the Authorizing Resolutions and the
Indenture, and, if applicable, the terms of the Debt Warrant related thereto,
will be duly and validly authorized and issued and will be valid and binding
obligations of the Company.
3. Any Warrants offered and sold as contemplated in the Registration Statement,
when issued and sold in accordance with the Authorizing Resolutions, will be
duly and validly authorized and issued and will be valid and binding obligations
of the Company.
I hereby consent to the filing of the opinion as an exhibit to the Registration
Statement and to the reference to my name under the caption "Legal Opinions" in
the Prospectus included as part of the Registration Statement.
Very truly yours,
/s/ WILLIAM B. LAWRENCE
- -----------------------
William B. Lawrence
<PAGE> 1
EXHIBIT 23(a)
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" in
the Registration Statement on Form S-3 and related Prospectus of TRW Inc. for
the registration of shares of Common Stock, Debt Securities, Common Stock
Warrants or Debt Warrants providing aggregate gross proceeds of up to
$1,000,000,000 and to the incorporation by reference therein of our report dated
January 19, 1998 with respect to the consolidated financial statements of TRW
Inc. included in its Annual Report on Form 10-K for the year ended December 31,
1997, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
Ernst & Young LLP
March 20, 1998
Cleveland, Ohio
<PAGE> 1
EXHIBIT 24
POWER OF ATTORNEY
Directors and Certain Officers of
TRW Inc.
THE UNDERSIGNED Directors and Officers of TRW Inc., an Ohio corporation (the
"Corporation"), which anticipates filing with the Securities and Exchange
Commission, Washington, D.C. (the "Commission"), under the provisions of the
Securities Act of 1933, as amended (the "Securities Act"), a Registration
Statement for the purpose of registering under the Securities Act debt
securities of the Corporation, shares of the Corporation's Common Stock, and
warrants to purchase debt securities or shares of the Corporation's Common Stock
in an aggregate initial offering price (including, in the case of warrants for
which separate consideration is payable upon issuance of underlying securities,
the price of securities issued upon exercise of warrants) which shall not exceed
U.S.$1 billion (or the equivalent thereof in foreign currencies or any
combination thereof), hereby constitute and appoint D. B. Goldston, W. B.
Lawrence, D. F. Menz, K. A. Weigand and J. L. Manning, Jr., and each of them, as
attorneys for the undersigned, with full power of substitution and
resubstitution, for and in the name, place and stead of the undersigned, to
prepare or cause to be prepared, to execute, file and register such Registration
Statement and any and all supplements, amendments (including post-effective
amendments) and exhibits thereto and any and all applications and other
documents to be filed with the Commission or elsewhere pertaining to the
registration of such debt securities, shares of the Corporation's Common Stock,
and warrants, including, without limitation, any reports to be filed under the
Securities Exchange Act of 1934, as amended, with full power and authority to do
and perform any and all acts and things and execute any and all documents and
instruments which such attorneys may deem necessary and appropriate in
connection with the registration.
EXECUTED the dates set forth below.
<TABLE>
<CAPTION>
<S> <C> <C>
/s/ J. T. Gorman /s/ P. S. Hellman /s/ C. G. Miller
- ----------------------------- -------------------------- ---------------------------
J. T. Gorman, P.S. Hellman, C. G. Miller,
Chairman of the Board, President, Chief Operating Executive Vice President
Chief Executive Officer Officer and Director and Chief Financial Officer
and Director February 11, 1998 February 11, 1998
February 11, 1998
/s/ T. A. Connell /s/ M. H. Armacost /s/ M. Feldstein
- ----------------------------- -------------------------- ---------------------------
T. A. Connell, Vice President M. H. Armacost, Director M. Feldstein, Director
and Controller February 11, 1998 February 11, 1998
February 11, 1998
/s/ R. M. Gates /s/ C. H. Hahn /s/ G. H. Hellmeier
- ----------------------------- -------------------------- ---------------------------
R. M. Gates, Director C. H. Hahn, Director G. H. Hellmeier, Director
February 11, 1998 February 11, 1998 February 11, 1998
/s/ K. N. Horn /s/ E. B. Jones /s/ W. S. Kiser
- ----------------------------- -------------------------- ---------------------------
K. N. Horn, Director E. B. Jones, Director W. S. Kiser, Director
February 11, 1998 February 11, 1998 February 11, 1998
/s/ D. B. Lewis /s/ J. T. Lynn /s/ L. M. Martin
- ----------------------------- -------------------------- ---------------------------
D. B. Lewis, Director J. T. Lynn, Director L. M. Martin, Director
February 11, 1998 February 11, 1998 February 11, 1998
/s/ J. D. Ong /s/ R. W. Pogue
- ----------------------------- --------------------------
J. D. Ong, Director R. W. Pogue, Director
February 11, 1998 February 11, 1998
</TABLE>
<PAGE> 1
EXHIBIT 25
-------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
-------------------------
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
-------------------------------------------
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) ________
----------------------------------------
THE CHASE MANHATTAN BANK
(Exact name of trustee as specified in its charter)
NEW YORK 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 PARK AVENUE
NEW YORK, NEW YORK 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
--------------------------------------------
TRW INC.
(Exact name of obligor as specified in its charter)
OHIO 34-0575430
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
1900 RICHMOND ROAD
CLEVELAND, OHIO (216)291-7000 44124
(Address of principal executive offices) (Zip Code)
--------------------------------------------
DEBT SECURITIES
(Title of the indenture securities)
----------------------------------------------------
<PAGE> 2
GENERAL
Item 1. General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
New York State Banking Department, State House, Albany, New York
12110.
Board of Governors of the Federal Reserve System, Washington, D.C.,
20551
Federal Reserve Bank of New York, District No. 2, 33 Liberty
Street, New York, N.Y.
Federal Deposit Insurance Corporation, Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
- 2 -
<PAGE> 3
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980, September 9, 1982,
February 28, 1985, December 2, 1991 and July 10, 1996 (see Exhibit 1 to Form T-1
filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
2. A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference. On July 14, 1996, in
connection with the merger of Chemical Bank and The Chase Manhattan Bank
(National Association), Chemical Bank, the surviving corporation, was renamed
The Chase Manhattan Bank).
3. None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
5. Not applicable.
6. The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference. On July 14, 1996, in connection
with the merger of Chemical Bank and The Chase Manhattan Bank (National
Association), Chemical Bank, the surviving corporation, was renamed The Chase
Manhattan Bank).
7. A copy of the latest report of condition of the Trustee, published
pursuant to law or the requirements of its supervising or examining authority.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939 the
Trustee, The Chase Manhattan Bank, a corporation organized and existing under
the laws of the State of New York, has duly caused this statement of eligibility
to be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of New York and State of New York, on the 20th day of March, 1998.
THE CHASE MANHATTAN BANK
By /s/ Ronald J. Halleran
----------------------
Ronald J. Halleran
Second Vice President
- 3 -
<PAGE> 4
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
The Chase Manhattan Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business December 31, 1997, in accordance
with a call made by the Federal Reserve Bank of this District
pursuant to the provisions of the Federal Reserve Act.
<TABLE>
<CAPTION>
DOLLAR AMOUNTS
ASSETS IN MILLIONS
<S> <C> <C>
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin ................................................ $ 12,428
Interest-bearing balances ........................................ 3,428
Securities: ..........................................................
Held to maturity
securities............................................................. 2,561
Available for sale securities.......................................... 43,058
Federal funds sold and securities purchased under
agreements to resell ............................................. 29,633
Loans and lease financing receivables:
Loans and leases, net of unearned income $129,260
Less: Allowance for loan and lease losses 2,783
Less: Allocated transfer risk reserve ......... 0
--------
Loans and leases, net of unearned income,
allowance, and reserve ........................................... 126,477
Trading Assets ........................................................ 62,575
Premises and fixed assets (including capitalized
leases)................................................................ 2,943
Other real estate owned ............................................... 295
Investments in unconsolidated subsidiaries and
associated companies.............................................. 231
Customers' liability to this bank on acceptances
outstanding ...................................................... 1,698
Intangible assets ..................................................... 1,466
Other assets .......................................................... 10,268
----------
TOTAL ASSETS .......................................................... $ 297,061
==========
</TABLE>
- 4 -
<PAGE> 5
<TABLE>
<CAPTION>
LIABILITIES
<S> <C> <C>
Deposits
In domestic offices ............................................... $94,524
Noninterest-bearing ...................................$39,487
Interest-bearing ...................................... 55,037
------
In foreign offices, Edge and Agreement,
subsidiaries and IBF's
........................................................................ 71,162
Noninterest-bearing ........................................$ 3,205
Interest-bearing ...................................... 67,957
Federal funds purchased and securities sold under
agreements to repurchase ............................................... 43,181
Demand notes issued to the U.S. Treasury ............................... 1,000
Trading liabilities .................................................... 48,903
Other borrowed money (includes mortgage indebtedness and obligations under
capitalized leases):
With a remaining maturity of one year or less ..................... 3,599
With a remaining maturity of more than one year ...................
through three years......................................... 253
With a remaining maturity of more than three years................ 132
Bank's liability on acceptances executed and outstanding................ 1,698
Subordinated notes and debentures ...................................... 5,715
Other liabilities ...................................................... 9,896
TOTAL LIABILITIES ...................................................... 280,063
----------
EQUITY CAPITAL
Perpetual preferred stock and related surplus 0
Common stock ........................................................... 1,211
Surplus (exclude all surplus related to preferred stock)............... 10,291
Undivided profits and capital reserves ................................. 5,502
Net unrealized holding gains (losses)
on available-for-sale securities ....................................... (22)
Cumulative foreign currency translation adjustments .................... 16
TOTAL EQUITY CAPITAL ................................................... 16,998
----------
TOTAL LIABILITIES AND EQUITY CAPITAL ................................... $297,061
==========
</TABLE>
I, Joseph L. Sclafani, E.V.P. & Controller of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
to the best of my knowledge and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by us, and to the best of our
knowledge and belief has been prepared in conformance with the instructions
issued by the appropriate Federal regulatory authority and is true and correct.
WALTER V. SHIPLEY )
THOMAS G. LABRECQUE ) DIRECTORS
WILLIAM B. HARRISON, JR.)
-5-
