<PAGE>
As filed with the Securities and Exchange Commission on April 14, 1999.
Registration Nos. 333-74195 33-46916
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
Pre-Effective Amendment No. 1
to
Form S-3
REGISTRATION STATEMENT
UNDER THE
SECURITIES ACT OF 1933
--------------
UNITED TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 06-0570975
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One Financial Plaza
Hartford, Connecticut 06101
(860) 728-7000
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
--------------
William H. Trachsel, Esq.
Senior Vice President, General Counsel and Secretary
United Technologies Corporation
One Financial Plaza
Hartford, Connecticut 06101
(860) 728-7800
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
Copies to:
David Lopez, Esq. David B. Harms, Esq.
Cleary, Gottlieb, Steen & Hamilton Sullivan & Cromwell
One Liberty Plaza 125 Broad Street
New York, New York 10006 New York, New York 10004
(212) 225-2000 (212) 558-4000
--------------
Approximate date of commencement of proposed sale to the public: From time
to time after the effective date of this Registration Statement.
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 being 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. [X]
--------------
CALCULATION OF REGISTRATION FEE
<TABLE>
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Proposed Proposed
Amount maximum maximum
Title of each class of securities to be offering price aggregate Amount of
to be registered registered(1) per unit(2) offering price(2) registration fee(3)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Debt Securities, Debt
Warrants, Currency
Warrants
and Stock-Index
Warrants.............. $528,950,000(4) 100%(2) $528,950,000 $147,048
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
(1) In United States dollars or the equivalent thereof in any other currency,
currency unit or units, or composite currency or currencies at the dates of
issuance.
(2) Estimated solely for the purpose of calculating the registration fee.
(3) This amount was previously paid with the initial filing of this
Registration Statement on March 10, 1999. Pursuant to Rule 429 promulgated
under the Securities Act of 1933, the amount of registration fees does not
include $147,203 previously paid to the Commission relating to $471,050,000
of Debt Securities, Debt Warrants, Currency Warrants and Stock-Index
Warrants previously registered pursuant to Registration Statement No. 33-
46916, which remain unissued at the close of business on April 14, 1999.
(4) Such amount represents the principal amount of any Debt Securities issued
at their principal face amount, the issue price rather than the principal
amount of any Debt Securities issued at an original issue discount, the
issue price of any Debt Warrants, Currency Warrants and Stock-Index
Warrants, and the exercise price of any Debt Securities issuable upon the
exercise of Debt Warrants. Debt Warrants, Currency Warrants and Stock-Index
Warrants may be sold separately or with Debt Securities or other Debt
Warrants, Currency Warrants and Stock-Index Warrants. It is not practicable
to determine the number of Debt Warrants, Currency Warrants and Stock-Index
Warrants and the proposed maximum offering prices thereof at this time.
--------------
This Registration Statement, which is a pre-effective amendment to a new
Registration Statement, also constitutes Post-Effective Amendment No. 2 to
Registration Statement No. 33-46916, which was declared effective on May 8,
1992. Such Post-Effective Amendment shall hereafter become effective
concurrently with the effectiveness of this Registration Statement and in
accordance with Section 8(c) of the Securities Act of 1933. Pursuant to Rule
429 under the Securities Act of 1933, the prospectus filed as part of this
Registration Statement also constitutes a prospectus for Registration Statement
No. 33-46916; the $471,050,000 of Debt Securities, Debt Warrants, Currency
Warrants and Stock-Index Warrants remaining unsold from Registration Statement
No. 33-46916 will be combined with the $528,950,000 aggregate amount of Debt
Securities, Debt Warrants, Currency Warrants and Stock-Index Warrants to be
registered pursuant to this Registration Statement to enable United
Technologies Corporation to offer an aggregate amount of $1,000,000,000 of
securities pursuant to the combined prospectus.
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 of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+The information in this prospectus is not complete and may be changed. We may +
+not sell these securities until the registration statement filed with the +
+Securities and Exchange Commission is effective. This prospectus is not an +
+offer to sell these securities and it is not the solicitation of an offer to +
+buy these securities in any state where the offer or sale is not permitted. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Subject to Completion. Dated April 14, 1999.
$1,000,000,000
[LOGO FOR UNITED TECHNOLOGIES APPEARS HERE]
Debt Securities, Debt Warrants,
Currency Warrants and Stock-Index Warrants
------------
United Technologies Corporation intends to offer from time to time debt
securities, debt warrants, currency warrants and stock-index warrants. United
Technologies Corporation will receive an aggregate amount of up to
$1,000,000,000 from the sales of the debt securities and warrants. The debt
securities and warrants may be offered together or separately and in one or
more series, in amounts, at prices and on other terms to be determined at the
time of the offering and described for you in an accompanying prospectus
supplement.
United Technologies Corporation may sell the debt securities and warrants
directly or to or through underwriters or dealers, and also to other purchasers
or through agents. The names of any underwriters or agents that are included in
a sale of debt securities or warrants to you, and any applicable commissions or
discounts, will be stated in an accompanying prospectus supplement.
------------
Neither the Securities and Exchange Commission nor any other regulatory body
has approved or disapproved of these securities or passed upon the accuracy or
adequacy of this prospectus. Any representation to the contrary is a criminal
offense.
------------
Prospectus dated April , 1999.
<PAGE>
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we filed with the
SEC utilizing a "shelf" registration process. Under this shelf process, we may
sell any combination of the debt securities and warrants described in this
prospectus in one or more offerings. From the sales of the debt securities and
warrants we will receive an aggregate amount of up to $1,000,000,000 (which is
the aggregate issue price of all warrants issued, the principal face amount of
all debt securities issued at their principal face amount and the issue price
rather than the principal amount of any debt securities issued at original
issue discount and the exercise price of any debt securities issuable upon the
exercise of a warrant to purchase debt securities). This prospectus provides
you with a general description of the debt securities and warrants we may
offer. Each time we sell debt securities or warrants, we will provide one or
more prospectus supplements, attached to the front of this prospectus, that
will contain specific information about the terms of that offering. Those terms
may vary from the terms described in this prospectus. Thus, the summary
descriptions of the debt securities and warrants in this prospectus are subject
to, and qualified by reference to, the descriptions of the particular terms of
any series of the securities contained in any related prospectus supplements.
The prospectus supplements may also add, update or change other information
contained in this prospectus. Before you invest in a particular issue of debt
securities or warrants, you should read both this prospectus and any related
prospectus supplements together with additional information described under the
heading "Where You Can Find More Information".
UNITED TECHNOLOGIES
United Technologies Corporation and its consolidated subsidiaries provide
high technology products to the aerospace, building systems and automotive
industries throughout the world. United Technologies Corporation and its
consolidated subsidiaries conduct their business within five principal
operating segments. The operating units of United Technologies Corporation and
its consolidated subsidiaries are grouped based upon the operating segment in
which they participate. The units participating in each operating segment and
their respective principal products are as follows:
. Otis offers a wide range of elevators, escalators, moving walks and
shuttle systems and related installation, maintenance and repair
services; and modernization products and services for elevators and
escalators.
. Carrier provides heating, ventilating and air conditioning (HVAC)
equipment for commercial, industrial and residential buildings; HVAC
replacement parts and services; building controls; commercial and
transport refrigeration equipment; and aftermarket service and
components.
. UT Automotive manufactures automotive electrical distribution systems;
DC electric motors and actuators; motor driven cooling fan modules;
electro-mechanical and electronic controls, switches and components;
insulation and acoustical materials and systems; and automotive
exterior trim.
. Pratt & Whitney provides large and small commercial and military
turbofan (jet) and turboprop engines, spare parts and product support;
specialized engine maintenance, overhaul and repair services for
airlines, government and private fleets; and rocket engines and space
propulsion systems and industrial gas turbines.
. Flight Systems is made up of Sikorsky and Hamilton Standard. Sikorsky
offers military and commercial helicopters and maintenance services.
Hamilton Standard offers engine and flight
2
<PAGE>
controls, propellers, environmental controls systems and space life
support systems.
United Technologies Corporation was incorporated in Delaware in 1934.
Unless the context otherwise requires, "UTC", "we", "us" or "our" means United
Technologies Corporation. UTC's principal executive offices are located at
United Technologies Building, One Financial Plaza, Hartford, Connecticut,
06101, telephone (860) 728-7000.
RECENT DEVELOPMENTS
On February 22, 1999, UTC announced an agreement to acquire Sundstrand
Corporation in a merger valued at approximately $4.3 billion, including assumed
debt. Approximately $1.9 billion of this purchase price is expected to be paid
in cash and the remainder, exclusive of assumed debt, in stock. However, under
the terms of the merger agreement, all of the purchase price could be paid in
cash. Any financing required to pay the additional cash would have to be
approved by UTC's Board of Directors.
The merger will be subject to customary conditions including approvals by
Sundstrand shareowners and approval under the European antitrust laws and by
U.S. and foreign regulatory agencies. The merger will be accounted for using
the purchase method.
In 1998, Sundstrand had approximately $2 billion in revenues and $226
million in net income. Despite the expected increase in interest expense and
amortization of goodwill associated with the merger, UTC anticipates that the
acquisition will be slightly accretive to earnings per share in 1999, with
accretion accelerating in later periods.
UTC plans to finance the cash portion of the purchase price through the
incurrence of long-term and medium-term debt, and cash from the sale of UT
Automotive, discussed below. If the Sundstrand acquisition precedes the sale of
UT Automotive, UTC plans to use short-term debt instead of the cash mentioned
above. These financings will result in higher interest expense in future
periods and higher levels of debt to capital.
On March 16, 1999, UTC announced an agreement to sell UT Automotive to Lear
Corporation for $2.3 billion in cash. The sale is expected to close before the
acquisition of Sundstrand, in which case UTC plans to use $889 million of the
proceeds from the sale to fund a part of the acquisition price. If the sale
closes after the acquisition of Sundstrand, UTC plans to use the same amount of
proceeds to retire the additional short-term indebtedness that UTC will incur
in connection with the acquisition. The sale is subject to certain closing
conditions including Hart-Scott-Rodino Act review.
For further information on the acquisition and the sale described in this
section, including important pro forma financial information, please see our
Current Report on Form 8-K dated April 14, 1999, which is incorporated by
reference in this prospectus.
RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
---- ----- ----- ----- -----
<S> <C> <C> <C> <C>
7.59 7.10 5.76 4.93 3.78
</TABLE>
For purposes of computing the ratio of earnings to fixed charges, earnings
are divided by fixed charges. Earnings represent the sum of income from
continuing operations before income taxes and minority interests for UTC and
its subsidiaries plus fixed charges, minus interest capitalized, plus
amortization of interest capitalized. Fixed charges represent interest paid or
accrued on indebtedness of UTC and its consolidated subsidiaries (including
interest capitalized) plus one-third (the proportion deemed representative of
the interest factor) of rents.
The pro-forma ratio of earnings to fixed charges for the year ended
December 31, 1998, reflects the sale of UT Automotive to Lear Corporation, the
acquisition of Sundstrand, interest related to the issuance of long-term and
medium-term debt and the use of $889 million of the proceeds from the sale to
fund a part of the acquisition price, as if these transactions had occurred on
January 1, 1998.
3
<PAGE>
<TABLE>
<CAPTION>
United
Technologies
Pro Forma
Year Ended
December 31,
1998
------------
<S> <C>
Fixed Charges:
Interest expense $ 297
Interest capitalized 13
One-third of rents 81
------
Total Fixed Charges $ 391
======
Earnings:
Income from continuing operations before income taxes and
minority interests $2,007
Fixed charges per above 391
Less: interest capitalized (13)
------
378
Amortization of interest capitalized 31
------
Total Earnings $2,416
======
Ratio of Earnings to Fixed Charges 6.18
======
</TABLE>
USE OF PROCEEDS
Except as otherwise provided in an accompanying prospectus supplement, the
net proceeds from the sale of the debt securities and warrants described in
this prospectus will be added to our general funds and will be used for our
general corporate purposes and those of our consolidated subsidiaries, which
may include financing of our pending acquisition of Sundstrand, other possible
acquisitions or repurchases of our stock.
From time to time, we may engage in additional public or private financings
of a character and amount which we may deem appropriate.
LEGAL OWNERSHIP
Street Name and Other Indirect Holders
Investors who hold debt securities or warrants in accounts at banks or
brokers will generally not be recognized by us as holders of those debt
securities or warrants. When we refer to the "holders" of debt securities or
warrants, we mean only the actual legal holders of the debt securities or
warrants, as we explain further below under the heading "--The Term "Holder' as
Used in This Prospectus and Elsewhere". Holding debt securities or warrants in
accounts at banks or brokers is called holding in "street name." If you hold
debt securities or warrants in street name, we will recognize only the bank or
broker, or the financial institution the bank or broker uses to hold debt
securities or warrants, as a holder. These intermediary banks, brokers and
other financial institutions pass along principal, interest and other payments
on the debt securities or warrants, either because they agree to do so in their
customer agreements or because they are legally required to. If you hold debt
securities or warrants in street name you should check with your own
institution to find out:
. How it handles payments and notices with respect to debt securities or
warrants;
. Whether it imposes fees or charges;
. How it would handle voting if ever required;
. How and when you should notify it to exercise on your behalf any
rights or options that may exist under the debt securities or
warrants;
. Whether and how you can instruct it to send you debt securities or
warrants registered in your own name so you can be a direct holder as
described below; and
. How it would pursue rights under the debt securities or warrants if
there were a default or other event triggering the need for holders to
act to protect their interests.
Direct Holders
Our obligations, as well as the obligations of the trustee, any warrant
agent and any third parties employed by us, the trustee or any warrant agent,
run only to persons who are registered as holders of debt securities or
warrants, except as may be specifically provided for in a warrant agreement,
warrant
4
<PAGE>
certificate or other contract governing the debt securities or warrants. As
noted above, we do not have obligations to you if you hold in street name or
through other indirect means, either because you choose to hold debt securities
or warrants in that manner or because the debt securities or warrants are
issued in the form of "global securities" as described below. For example, once
we make payment to the registered holder, we have no further responsibility for
the payment even if that holder is legally required to pass the payment along
to you as a street name customer but does not do so.
Global Securities
A global security is a special type of indirectly held debt security or
warrant. If we choose to issue debt securities or warrants in the form of
global securities, the ultimate beneficial owners can only be indirect holders.
We do this by requiring that the global security be registered in the name of a
financial institution we select and by requiring that the debt securities or
warrants included in the global security not be transferred to the name of any
other direct holder unless the special circumstances described below occur. The
financial institution that acts as the sole direct holder of the global
security is called the "depositary". Any person wishing to own a debt security
or warrant must do so indirectly by virtue of an account with a broker, bank or
other financial institution that in turn has an account with the depositary.
The prospectus supplement or pricing supplement indicates whether your series
of debt securities or warrants will be issued only as global securities.
As an indirect holder, your rights relating to a global security will be
governed by the account rules of your financial institution and of the
depositary, as well as general laws relating to securities transfers. We do not
recognize you as a holder of debt securities or warrants and instead deal only
with the depositary that holds the global security.
You should be aware that if debt securities or warrants are issued only in
the form of global securities:
. you cannot have debt securities or warrants registered in your own
name;
. you cannot receive physical certificates for your interest in the debt
securities or warrants;
. you will be a street name holder and must look to your own bank or
broker for payments on the debt securities or warrants and protection
of your legal rights relating to the debt securities or warrants;
. you may not be able to sell interests in the debt securities or
warrants to some insurance companies and other institutions that are
required by law to own their debt securities or warrants in the form
of physical certificates;
. the depositary's policies will govern payments, transfers, exchange
and other matters relating to your interest in the global security.
We, the trustee and any warrant agent have no responsibility for any
aspect of the depositary's actions or for its records of ownership
interests in the global security. We, the trustee and any warrant
agent also do not supervise the depositary in any way; and
. the depositary will require that interests in a global security be
purchased or sold within its system using same-day funds for
settlement.
In a few special situations described later, the global security will
terminate and interests in it will be exchanged for physical certificates
representing debt securities or warrants. After that exchange, the choice of
whether to hold debt securities or warrants directly or in street name will be
up to you. You must consult your bank or broker to find out how to have your
interests in debt securities or warrants transferred to your name, so that you
will be a direct holder.
Unless we specify otherwise in the prospectus supplement or pricing
supplement,
5
<PAGE>
the special situations for termination of a global security are:
. When the depositary notifies us that it is unwilling, unable or no
longer qualified to continue as depositary and we do not or cannot
appoint a successor depositary within 90 days;
. When we notify the trustee that we wish to terminate the global
security; or
. When an event of default on the debt securities has occurred and has
not been cured. (Defaults are discussed later under "Description of
Debt Securities--Events of Default").
The prospectus supplement may also list additional situations for
terminating a global security that would apply only to the particular series of
debt securities or warrants covered by the prospectus supplement. When a global
security terminates, the depositary (and not us, the trustee or any warrant
agent) is responsible for deciding the names of the institutions that will be
the initial direct holders.
The Term "Holder" as Used in This
Prospectus and Elsewhere
In the descriptions of the debt securities and warrants included in this
prospectus and any attached prospectus supplement, when we refer to the
"holder" of a given debt security or warrant as being entitled to specified
rights or payments, or being permitted to take specified actions, we are in all
cases referring to the actual legal holder of the debt security or warrant.
While you will be the holder if you hold a certificated security registered in
your name, more often than not the holder will actually be either the broker,
bank or other financial institution where you have your street name account,
or, in the case of a global security, the depositary. This means that if you
are an indirect holder, you will need to coordinate with the institution
through which you hold your interest in a debt security or warrant in order to
determine how the provisions involving holders described in this prospectus and
any prospectus supplement will actually apply to you. For example, if the debt
security or warrant in which you hold a beneficial interest in street name can
be repaid at the option of the holder, you cannot redeem it yourself by
following the procedures described in the prospectus supplement. Instead, you
would need to cause the institution through which you hold your interest to
take those actions on your behalf. Your institution may have procedures and
deadlines different from or additional to those described in the prospectus
supplement relating to that debt security or warrant.
DESCRIPTION OF DEBT SECURITIES
The Indenture
As required by federal law for all notes and debentures of companies that
are publicly offered, the debt securities offered pursuant to this prospectus
are governed by a document called the "indenture". The indenture is a contract
dated as of April 1, 1990, as supplemented from time to time, between UTC and
State Street Bank and Trust Company (as successor to The Connecticut National
Bank), which acts as trustee. The indenture is an exhibit to the registration
statement. See "Where You Can Find More Information" for information on how to
obtain a copy of the indenture.
The following description of the indenture and summaries of some provisions
of the indenture do not describe every aspect of the debt securities and are
subject, and are qualified in their entirety by reference, to all the
provisions of the indenture including definitions of terms used in the
indenture. For example, in this section we use some terms that have been given
special meaning in the indenture. We describe the meaning for only the more
important terms. We also include references in parentheses to some sections of
the indenture. Whenever we refer to particular sections or defined terms of the
indenture in this prospectus or in the prospectus supplement, those sections or
defined terms are incorporated by reference here or in the prospectus
supplement.
6
<PAGE>
Terms of the Debt Securities to Be Described in the Prospectus Supplement
The particular terms of each issue of debt securities, as well as any
modifications or additions to the general terms of the indenture which may be
applicable in the case of that issue of debt securities, will be described in
the related prospectus supplement. This description will include, where
applicable:
. the title of that issue of debt securities;
. any limit upon the aggregate principal amount of that issue of debt
securities;
. the percentage of the principal amount for which that issue of debt
securities will be issued;
. the date or dates on which the principal of that issue of debt
securities will be payable, or the method by which this date or these
dates will be determined or extended;
. the rate or rates (which may be fixed or variable), at which that
issue of debt securities will bear interest, if any, or the method by
which this rate or these rates will be determined;
. the date or dates from which any interest will accrue, or the method
by which this date or these dates will be determined, the dates on
which payment of any interest will be payable on any registered
security and the regular record dates for these interest payment dates
and the basis on which any interest will be calculated if other than
on the basis of a 360-day year of twelve 30-day months;
. the place or places where the principal, premium, if any, and
interest, if any, on that issue of debt securities will be payable;
. the place or places where that issue of debt securities may be
surrendered for exchange, and notices or demands to or upon UTC in
respect of debt securities may be served and any registered securities
may be surrendered for registration of transfer;
. the period or periods within which, the price or prices at which, the
currency, currencies, currency unit or units or composite currencies
in which, and the other terms and conditions upon which, that issue of
debt securities may be redeemed in whole or in part, at the option of
UTC;
. the obligation, if any, of UTC to redeem, repay or purchase that issue
of debt securities pursuant to any sinking fund or analogous provision
or at the option of a holder of debt securities and the period or
periods within which, the price or prices at which, the currency,
currencies, currency unit or units or composite currencies in which,
and the other terms and conditions upon which, that issue of debt
securities will be redeemed, repaid or purchased, in whole or in part,
pursuant to such obligation;
. the currency, currencies or currency unit or composite currency in
which that issue of debt securities will be denominated and/or in
which the principal, premium, if any, or interest on that issue of
debt securities will be payable;
. whether the amount of payments of principal, premium, if any, or
interest on that issue of debt securities may be determined with
reference to an index, formula or other method (which index, formula
or method may, without limitation, be based on one or more currencies,
currency units, composite currencies, commodities, equity indices or
other indices) and the manner in which these amounts will be
determined;
7
<PAGE>
. whether UTC or a holder may elect payment of the principal, premium,
if any, or interest on that issue of debt securities in a currency,
currencies, currency unit or units or composite currency other than
that in which the debt securities are stated to be payable, and the
period or periods within which, and the terms and conditions upon
which, this election may be made, and the time and manner of
determining the exchange rate between the coin or currency,
currencies, currency unit or units or composite currency in which the
debt securities are denominated or stated to be payable and the coin
or currency, currencies, currency unit or units or composite currency
in which the debt securities are to be so payable;
. any deletions from, modifications of or additions to the events of
default or covenants of UTC with respect to that issue of debt
securities, whether or not these events of default or covenants are
consistent with the events of default or covenants contained in the
indenture as originally executed;
. whether the provisions of Article Fourteen of the indenture described
under "--Defeasance and Covenant Defeasance" apply to that issue of
debt securities and any change to those provisions that apply to that
issue of debt securities;
. provisions, if any, granting special rights to the holders of that
issue of debt securities if any specified events occur;
. the designation of any security registrars, paying agents,
depositaries or exchange rate agents for that issue of debt
securities;
. whether that issue of debt securities is to be issuable as registered
securities, bearer securities or both, whether any debt securities of
that issue are to be issuable initially in temporary global form and
whether any debt securities of that issue are to be issuable in
permanent global form with or without coupons and, if so, whether
beneficial owners of interests in any permanent global debt security
may exchange these interests for debt securities of like tenor of any
authorized form and denomination and the circumstances under which any
exchanges of this kind may occur, and whether registered securities
may be exchanged for bearer securities (if permitted by applicable
laws and regulations) and the circumstances under which and the place
or places where exchanges of this kind, if permitted, may be made;
. the person to whom any interest on any registered security will be
payable, if other than the person in whose name that debt security (or
one or more predecessor securities) is registered at the close of
business on the regular record date for the interest, the manner in
which, or the person to whom, any interest on any bearer security will
be payable, if otherwise than in exchange for the coupons appertaining
to the bearer security as they individually mature, and the extent to
which, or the manner in which, any interest payable on a temporary
global debt security on an interest payment date will be paid;
. if the debt securities of that issue are to be issued upon the
exercise of warrants, the time, manner and place for the debt
securities to be authenticated and delivered;
. whether and under what circumstances UTC will pay additional amounts
as contemplated by Section 1010 of the indenture on that issue of debt
securities to any holder who is not a United States person in respect
of any tax,
8
<PAGE>
assessment or governmental charge, including any modification to the
definition of "United States person" as contained in the indenture as
originally executed, and, if so, whether and on what terms UTC will
have the option to redeem the debt securities rather than pay
additional amounts;
. the manner in which principal, premium, if any, and interest, if any,
will be payable;
. if applicable, a discussion of United States federal income tax,
accounting or other special considerations;
. the manner in which debt securities of that issue will be
transferable; and
. any other terms, conditions, rights and preferences, or limitations on
rights and preferences, of that issue of debt securities consistent
with the provisions of the indenture.
If any series of debt securities are sold for, are payable in or are
denominated in one or more foreign currencies, currency units or composite
currencies, applicable restrictions, elections, tax consequences, specific
terms and other information with respect to that series of debt securities and
such currencies, currency units or composite currencies will be set forth in
the related prospectus supplement.
We may issue debt securities other than the debt securities described in
this prospectus. There is no requirement that any other debt securities that we
issue be issued under the indenture. Thus, any other debt securities that we
issue may be issued under other indentures or documentation, containing
provisions different from those included in the indenture or applicable to one
or more issues of the debt securities described in this prospectus.
Indenture Provisions Relating to the Possible Issuance of One or More Series of
Debt Securities
The debt securities described in this prospectus and additional
unsubordinated, unsecured debt securities of UTC unlimited as to aggregate
principal amount may be issued in one or more series under the indenture
(Section 301). The debt securities described in this prospectus and any
additional debt securities so issued under the indenture are collectively
referred to in this prospectus, while a single trustee is acting for all
holders of these debt securities, as the "indenture securities." The indenture
also provides that there may be more than one trustee under the indenture, each
with respect to one or more different series of indenture securities. See "--
Trustee" for a discussion of the trustee's responsibilities if there is more
than one trustee under the indenture. At a time when two or more trustees are
acting, each with respect to only certain series of debt securities, the term
"indenture securities" as used in this prospectus will mean the one or more
series with respect to which each respective trustee is acting. If there is
more than one trustee under the indenture, the powers and trust obligations of
each trustee as described in this prospectus will extend only to the one or
more series of indenture securities for which it is trustee. The effect of the
provisions contemplating that at a particular time there might be more than one
trustee acting is that, in that event, those indenture securities (whether of
one or more than one series) for which each trustee is acting would be treated
as if issued under a separate indenture.
Each series of debt securities will constitute non-convertible, unsecured
and unsubordinated obligations of UTC and will rank on a parity with all other
unsecured and unsubordinated indebtedness of UTC, including each other series
of debt securities.
Debt securities may be issued under the indenture as original issue
discount securities to be offered and sold at a substantial discount from their
principal amount. Special federal income tax, accounting and other
considerations applicable to original issue discount securities will be
described under a separate heading in the prospectus supplement relating to any
original issue discount securities.
The indenture provides that in determining whether the holders of the
requisite principal
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amount of indenture securities of a series then outstanding have given any
request, demand, authorization, direction, notice, consent or waiver under the
indenture or whether a quorum is present at a meeting of holders of indenture
securities:
. the principal amount of an original issue discount security that will
be deemed to be outstanding will be the amount of the principal of
that security that would be due and payable as of the date of that
determination upon acceleration of the maturity of the security;
. the principal amount of an indenture security denominated in one or
more foreign currencies or currency units will be deemed to be the
U.S. dollar equivalent, determined on the date of original issuance of
that indenture security, of the principal amount or, in the case of an
original issue discount security, the U.S. dollar equivalent, on the
date of original issuance of the original issue discount security, of
the amount determined as provided in the immediately preceding bullet
point; and
. the principal amount that will be deemed outstanding of an indenture
security issued as an indexed security whose terms provide that its
principal amount payable at stated maturity may be more or less than
principal face amount at original issuance will be deemed to be its
principal face amount at original issuance (Section 101).
Denominations, Registration and Transfer
Debt securities of a series may be issuable solely as registered
securities, solely as bearer securities or as both registered securities and
bearer securities. The indenture also provides that debt securities of a series
may be issuable in global form. Unless otherwise indicated in the prospectus
supplement, bearer securities will have interest coupons attached (Sections
201, 203).
Unless otherwise provided in the prospectus supplement:
. registered securities denominated in U.S. dollars, other than
registered securities issued in global form, will be issued in
denominations of $1,000 and integral multiples of $1,000;
. registered securities issued in global form may be issued in any
denomination;
. bearer securities denominated in U.S. dollars, other than bearer
securities issued in global form, will be issued in denominations of
$5,000; and
. bearer securities issued in global form may be issued in any
denomination (Section 302).
Registered securities of any series will be exchangeable for other
registered securities of the same series and of a like aggregate principal
amount and tenor of different authorized denominations. If provided in the
prospectus supplement, bearer securities, with all unmatured coupons, except as
provided in the following sentence, and all matured coupons in default, of a
particular series may be converted into registered securities of the same
series of any authorized denominations and of a like aggregate principal amount
and tenor. Bearer securities surrendered in a permitted exchange for registered
securities during the period (1) on and from a regular record date and before
the opening of business at the appropriate office or agency on the relevant
interest payment date or (2) on and from a special record date and before the
opening of business at the appropriate office or agency on the related proposed
date for payment of defaulted interest, will be surrendered without the coupon
relating to that interest payment date or proposed date for payment of
interest. Interest to be paid on that interest payment date or proposed date of
payment will not be payable in respect of the registered security issued in
exchange for the bearer security. Instead, the interest will be payable only to
the holder of the coupon when
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due in accordance with the terms of the indenture. Unless otherwise specified
in the prospectus supplement, bearer securities will not be issued in exchange
for registered securities (Section 305).
Debt securities may be presented for exchange or conversion as provided
above, and registered securities may be presented for registration of
transfer, at the corporate trust office of the trustee or at the office of any
transfer agent designated by UTC for this purpose with respect to any series
of debt securities and referred to in the prospectus supplement. Registered
securities presented for registration of transfer must be presented with a
duly executed form of transfer. Each registered security will specify the
proper form of transfer. No service charge will be made for any transfer or
exchange of the debt securities, but UTC may require payment of a sum to cover
any tax or other governmental charge payable in connection with the transfer
or exchange (Section 305). Any transfer, conversion or exchange will be
effected if the trustee or transfer agent, as the case may be, is satisfied
with the documents of title and identity of the person making the request. If
a prospectus supplement refers to any transfer agents initially designated by
UTC with respect to any series of debt securities in addition to the trustee,
UTC may at any time rescind the designation of any of these transfer agents or
approve a change in the location through which any of these transfer agents
acts, except that:
. if debt securities of a series are issuable solely as registered
securities, UTC will be required to maintain a transfer agent in each
place of payment for that series; and
. if debt securities of a series may be issuable as both registered
securities and as bearer securities, UTC will be required to maintain
a transfer agent in a place of payment for that series located outside
the United States, in addition to the trustee.
UTC may at any time designate additional transfer agents with respect to any
series of debt securities (Section 1002).
If debt securities of any series are redeemed in part, UTC will not be
required to:
. issue, register the transfer of, exchange or convert debt securities
of any series during a period beginning at the opening of business 15
days before any debt securities of that series are selected to be
redeemed and ending at the close of business on:
(a) if debt securities of the series are issuable only as registered
securities, the day of mailing of the relevant notice of redemption;
(b) if debt securities of the series are issuable as bearer
securities, the day of the first publication of the relevant notice of
redemption; or
(c) if debt securities of the series are also issuable as registered
securities and there is no publication, the mailing of the relevant
notice of redemption; or
. register the transfer of or exchange any portion of any registered
security called for redemption, except the unredeemed portion of any
registered security being redeemed in part; or
. exchange any bearer security called for redemption, except to exchange
the bearer security for a registered security of that series and like
tenor which is simultaneously surrendered for redemption (Section
305).
Payment, Paying Agents and Exchange
Rate Agents
Unless otherwise provided in the prospectus supplement, principal,
premium, if any, and interest, if any, on bearer securities will be payable,
subject to any applicable laws and regulations, at the offices of one or more
paying agents outside the United States as UTC may designate from time to time
(Section 1002). At the option of the holder, payment on bearer securities also
may be made by transfer to an
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account maintained by the payee with a bank located outside the United States
(Section 307). Unless otherwise provided in the prospectus supplement, payment
of interest on any bearer securities on or before maturity will be made only
against surrender of the individual coupons for the interest installments as
the coupons mature (Section 1001). Unless otherwise provided in the prospectus
supplement, no payment with respect to any bearer security will be made at any
office or agency of UTC in the United States or by check mailed to any address
in the United States or by transfer to an account maintained with a bank
located in the United States. However, payments of principal, premium, if any,
and interest, if any, on bearer securities payable in dollars will be made at
the office of UTC's paying agent in The City of New York if, but only if,
payment of the full amount of principal, premium, if any, and interest, if
any, in dollars at all offices or agencies outside the United States is
illegal or effectively precluded by exchange controls or other similar
restrictions (Section 1002).
Unless otherwise provided in the prospectus supplement, principal,
premium, if any, and interest, if any, on registered securities will be
payable at any office or agency to be maintained by UTC in The City of New
York, except that at the option of UTC interest may be paid:
. by check mailed to the address of the person entitled to the interest
as that address appears in the security register; or
. by wire transfer to an account maintained by the person entitled to
the interest as specified in the security register (Sections 307 and
1002).
Unless otherwise provided in the prospectus supplement, payment of any
installments of interest on any registered security will be made to the person
in whose name the registered security is registered at the close of business
on the regular record date for interest (Section 307).
Any paying agent in the United States and any paying agent outside the
United States initially designated by UTC for the debt securities will be
named in the prospectus supplement. UTC may at any time designate additional
paying agents or rescind the designation of any paying agent or approve a
change in the office through which any paying agent acts. However:
. if debt securities of a series are issuable only as registered
securities, UTC will be required to maintain a paying agent in each
place of payment for that series;
. if debt securities of a series are also issuable as bearer securities,
UTC will be required to maintain:
(a) a paying agent in The City of New York for payments with respect
to any registered securities of that series and for payments with
respect to bearer securities of that series in the limited
circumstances described above, but not otherwise; and
(b) a paying agent in a place of payment located outside the United
States where debt securities of that series and any coupons
appertaining to the securities may be presented and surrendered for
payment; and
. if the debt securities of a series are listed on the Luxembourg Stock
Exchange or any other stock exchange located outside the United States
and that stock exchange so requires, UTC will maintain a paying agent
in Luxembourg or any other required city located outside the United
States, as the case may be, for the debt securities of that series
(Section 1002).
Unless otherwise provided in the prospectus supplement, UTC will maintain
with respect to any series of debt securities denominated or payable in one or
more foreign currencies, currency units or composite currencies, one or more
exchange rate agents to make the foreign exchange determinations as are or may
be specified in this prospectus and the prospectus supplement (Sections 313
and 1002).
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All moneys paid by UTC to the trustee or a paying agent for the payment of
principal, premium, if any, or interest, if any, on any debt security which
remains unclaimed at the end of two years after the principal, premium or
interest becomes due and payable will be repaid to UTC, and the holder of the
debt security or any related coupon will thereafter look only to UTC for
payment of these amounts (Section 1003).
The Indenture Does Not Limit UTC's Indebtedness, Prevent Dividends or
Generally Prevent Highly Leveraged Transactions.
The indenture does not
. limit the amount of unsecured indebtedness which UTC or any subsidiary
may incur; or
. limit the payment of dividends by UTC or its acquisition of any of its
equity securities.
When we say "subsidiary", we mean any corporation of which at the time
of determination UTC, directly and/or indirectly through one or more
subsidiaries, owns more than 50% of the shares of voting stock (Section 101).
Except as may be included in a supplemental indenture covering a specific
series of offered debt securities and described in the related prospectus
supplement and except for the covenants described below under "--Liens", "--
Sales and Leasebacks" and "--Restriction on Merger and Sales of Assets", there
are no covenants or any other provisions which may afford holders of debt
securities protection in the event of a highly leveraged transaction which may
or may not result in a change of control of UTC.
Liens
So long as any debt securities are outstanding under the indenture:
. UTC will not itself, and will not permit any wholly-owned domestic
manufacturing subsidiary to, create, incur, issue or assume any debt
secured by any lien on any principal property owned by UTC or any
wholly-owned domestic manufacturing subsidiary; and
. UTC will not itself, and will not permit any subsidiary to, create,
incur, issue or assume any debt secured by any lien on any shares of
stock or debt of any wholly-owned domestic manufacturing subsidiary.
When we say "wholly-owned domestic manufacturing subsidiary" we mean any
subsidiary of which, at the time of determination, UTC directly and/or
indirectly owns all of the outstanding capital stock (other than directors'
qualifying shares) and which, at the time of determination, is primarily
engaged in manufacturing, except a subsidiary:
. which neither transacts any substantial portion of its business nor
regularly maintains any substantial portion of its fixed assets within
the United States; or
. which is engaged primarily in the finance business including, without
limitation, financing the operations of, or the purchase of products
which are products of or incorporate products of, UTC and/or its
subsidiaries; or
. which is primarily engaged in ownership and development of real
estate, construction of buildings, or related activities, or a
combination of the foregoing (Section 101).
When we say "debt", we mean notes, bonds, debentures or other similar
evidences of indebtedness for money borrowed (Section 1008).
When we say "liens", we mean pledges, mortgages, liens, encumbrances and
other security interests (Section 1008).
When we say "principal property", we mean any manufacturing plant or
warehouse, together with the land upon which it is erected
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and fixtures constituting a part of the manufacturing plant or warehouse, owned
by UTC or any wholly-owned domestic manufacturing subsidiary and located in the
United States, the gross book value (without deduction of any reserve for
depreciation) of which on the date as of which the determination is being made
is an amount which exceeds 1% of consolidated net tangible assets, other than
any manufacturing plant or warehouse or any portion of the manufacturing plant
or warehouse or any fixture:
. which is financed by industrial development bonds; or
. which, in the opinion of the board of directors of UTC, is not of
material importance to the total business conducted by UTC and its
subsidiaries, taken as a whole (Section 101).
However, any of the actions described in the first two bullet points under
"--Liens" above may be taken if
. the indenture securities are equally and ratably secured; or
. the aggregate principal amount of the secured debt then outstanding
plus the attributable debt of UTC and its wholly-owned domestic
manufacturing subsidiaries in respect of sale and leaseback
transactions described below involving principal properties entered
into after the date when UTC first issues securities pursuant to the
indenture, other than transactions that are permitted as described in
the second bullet point under "--Sales and Leasebacks", would not
exceed 10% of consolidated net tangible assets.
When we say "attributable debt", we mean, as to any particular lease under
which any person is at the time liable for a term of more than 12 months, at
any date as of which the amount of attributable debt is to be determined, the
total net amount of rent required to be paid by the person under the lease
during the remaining term of the lease (excluding any subsequent renewal or
other extension options held by the lessee and excluding amounts on account of
maintenance and repairs, services, taxes and similar charges, and contingent
rents), discounted from the respective due dates of the payments under the
lease to the date of determination at the rate of fifteen percent (15%) per
annum, compounded monthly (Section 101).
When we say "consolidated net tangible assets", we mean the total amount of
assets (less applicable reserves and other properly deductible items) after
deducting:
. all current liabilities, excluding any current liabilities which are
by their terms extendible or renewable at the option of the obligor on
the liabilities to a time more than 12 months after the time as of
which the amount of current liabilities is being computed; and
. all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles, all as set forth on
the most recent balance sheet of UTC and its consolidated subsidiaries
and computed in accordance with generally accepted accounting
principles (Section 101).
This restriction on liens will not apply to debt secured by permitted
liens. Therefore, for purposes of this restriction, debt secured by permitted
liens will be excluded in computing secured debt. Permitted liens include:
. liens existing as of the date when UTC first issued securities
pursuant to the indenture;
. liens existing on any property of or shares of stock or debt of any
corporation at the time it became or becomes a wholly-owned domestic
manufacturing subsidiary, or arising after that time (a) pursuant to
contractual commitments entered into before the corporation became a
wholly-owned domestic manufacturing subsidiary and (b)
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otherwise than in connection with the borrowing of money arranged
after the corporation became a wholly-owned domestic manufacturing
subsidiary;
. liens on property (including shares of stock or debt of a wholly-owned
domestic manufacturing subsidiary) existing at the time of acquisition
and certain purchase money or similar liens;
. liens to secure specified exploration, drilling, development,
operation, construction, alteration, repair or improvement costs;
. liens securing debt owing by a subsidiary to UTC or to a wholly-owned
domestic manufacturing subsidiary;
. liens in connection with legal proceedings or arising in the ordinary
course of business and not in connection with the borrowing of money;
. liens in connection with government contracts, including the
assignment of moneys due or to become due on government contracts;
. materialmen's, carriers', mechanics', workmen's, repairmen's or other
like liens which are not overdue or which are being contested in good
faith in appropriate proceedings; and
. extensions, substitutions, replacements or renewals of the foregoing.
In addition, production payments and other financial arrangements with regard
to oil, gas and mineral properties are not deemed to involve liens securing
debt (Section 1008).
Sales and Leasebacks
So long as any debt securities are outstanding under the indenture, UTC
will not, and will not permit any wholly-owned domestic manufacturing
subsidiary to, enter into any sale and leaseback transaction after the date
when UTC first issued securities pursuant to the indenture, covering any
principal property, which was or is owned or leased by UTC or a wholly-owned
domestic manufacturing subsidiary and which has been or is to be sold or
transferred more than 120 days after the completion of construction and
commencement of full operation of that principal property.
However, a sale and leaseback transaction of this kind will not be
prohibited if
. attributable debt of UTC and its wholly-owned domestic manufacturing
subsidiaries in respect of the sale and leaseback transaction and all
other sale and leaseback transactions entered into after the date when
UTC first issued securities pursuant to the indenture (other than sale
and leaseback transactions that are permitted as described in the next
bullet point), plus the aggregate principal amount of debt secured by
liens on principal properties then outstanding (not otherwise
permitted or excepted) without equally and ratably securing the
indenture securities, would not exceed 10% of the consolidated net
tangible assets;
. an amount equal to the greater of the net proceeds of the sale or
transfer or the fair market value of the principal property sold or
transferred (as determined by UTC) is applied within 120 days to the
voluntary retirement of the indenture securities or other indebtedness
of UTC (other than indebtedness subordinated to the indenture
securities) or indebtedness of a wholly-owned domestic manufacturing
subsidiary, for money borrowed, maturing more than 12 months after the
voluntary retirement;
. the lease is for a temporary period not exceeding three years; or
. the lease is with UTC or another wholly-owned domestic manufacturing
subsidiary (Section 1009).
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Restriction on Merger and Sales of Assets
UTC may not consolidate with or merge into any other corporation, or
convey, lease or transfer its properties and assets substantially as an
entirety to any person, unless all four of the following conditions are
satisfied:
. immediately after the transaction, no event of default (or event which
with notice or lapse of time, or both, would be an event of default)
with respect to the indenture securities will have happened and be
continuing;
. the corporation formed by the consolidation or into which UTC is
merged or the person which will have received the transfer or lease of
UTC's properties and assets will assume UTC's obligation for the due
and punctual payment of the principal, premium, if any, and interest
(including all additional amounts, if any, payable as contemplated by
Section 1010 of the indenture, on the indenture securities and the
performance and observance of every covenant to be performed by UTC
under the indenture, and will be organized under the laws of the
United States of America, one of the States thereof or the District of
Columbia;
. if any principal property of UTC or of any wholly-owned domestic
manufacturing subsidiary, or any shares of stock or debt of any
wholly-owned domestic manufacturing subsidiary, would become subject
to any lien, the indenture securities outstanding will be secured, as
to that principal property, equally and ratably with or prior to, the
debt which upon the transaction would become secured by the lien
unless UTC or the wholly-owned domestic manufacturing subsidiary could
create the lien under the indenture without equally and ratably
securing the indenture securities; and
. UTC has delivered to the trustee an officer's certificate and opinion
of counsel, each stating that the transaction complies with these
conditions (Sections 801 and 803).
For the purpose of providing the equal and ratable security referred to in the
preceding sentence, the outstanding principal amount of original issue discount
securities and indexed securities will mean that amount which would at the time
of providing the security be due and payable pursuant to Section 502 of the
indenture and the terms of the original issue discount securities and indexed
securities upon their acceleration, and the extent of the equal and ratable
security will be adjusted, to the extent permitted by law, as and when this
amount changes over time pursuant to the terms of such original issue discount
securities and indexed securities (Sections 502 and 803). See "--Events of
Default" for further information about acceleration of original issue discount
securities and indexed securities.
In the event of any transaction other than a lease described in and
complying with the four conditions listed in the immediately preceding
paragraph, UTC would be discharged from all obligations and covenants under the
indenture and the indenture securities, and could be dissolved and liquidated
(Section 802).
Defeasance and Covenant Defeasance
The indenture provides that, if the provisions of Article Fourteen are made
applicable without modification to the debt securities of or within any series
and any related coupons pursuant to Section 301 of the indenture, UTC may elect
either "defeasance" or "covenant defeasance" as described below:
. ""defeasance'' means that UTC may elect to defease and be discharged
from any and all obligations with respect to the debt securities and
any related coupons, except for the obligation to pay additional
amounts, if any, upon the occurrence of specified events of tax,
assessment or governmental charge with respect
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to payments on the debt securities and the obligations to register the
transfer or exchange of the debt securities and any related coupons,
to replace temporary or mutilated, destroyed, lost or stolen debt
securities and any related coupons, to maintain an office or agency in
respect of the debt securities and any related coupons and to hold
moneys for payment in trust;
. ""covenant defeasance" means that UTC may elect to be released from
its obligations with respect to the debt securities and any related
coupons that are described under "--Liens" and "--Sales and
Leasebacks," or, if provided pursuant to Section 301 of the indenture,
its obligations with respect to any other covenant, and any omission
to comply with these obligations will not constitute a default or an
event of default with respect to the debt securities and any related
coupons.
To elect either defeasance or covenant defeasance, UTC must irrevocably deposit
with the trustee or another qualifying trustee, in trust, an amount, which
through the payment of principal and interest in accordance with the terms of
the government obligations (as defined in the next paragraph) will provide
money in an amount sufficient to pay the principal, premium, if any, and
interest on the debt securities and any related coupons, and any mandatory
sinking fund or analogous payments on them, on the scheduled due dates for
them. This amount must be deposited in the currency, currencies or currency
unit in which the debt securities and any related coupons are then specified as
payable at stated maturity, and/or government obligations applicable to the
debt securities and any related coupons. This applicability will be determined
on the basis of the currency or currency unit in which the debt securities are
then specified as payable at stated maturity. If so specified in the applicable
prospectus supplement, a trust of this kind may only be established if, among
other things, UTC has delivered to the trustee an opinion of counsel (as
specified in the indenture) to the effect that the holders of the debt
securities and any related coupons will not recognize income, gain or loss for
United States federal income tax purposes as a result of the defeasance or
covenant defeasance and will be subject to United States federal income tax on
the same amounts, in the same manner and at the same times as would have been
the case if the defeasance or covenant defeasance had not occurred. In the case
of defeasance, the opinion of counsel must refer to and be based upon a ruling
of the Internal Revenue Service or a change in applicable United States federal
income tax law occurring after April 1, 1990.
Unless otherwise specified in the applicable prospectus supplement,
"government obligations" means securities which are:
. direct obligations of the government which issued the currency in
which the debt securities are payable; or
. obligations of a person controlled or supervised by and acting as an
agency or instrumentality of the government which issued the currency
in which the debt securities of the applicable series are payable, the
payment of which is unconditionally guaranteed by that government,
which, in either case, are full faith and credit obligations of that
government payable in that currency and are not callable or redeemable
at the option of the issuer of the obligations and will also include
specified depository receipts issued by a bank or trust company as
custodian with respect to any government obligation of this kind
(Section 101 and Article Fourteen).
Unless otherwise provided in the prospectus supplement, if, after UTC has
deposited funds and/or government obligations to effect defeasance with respect
to any debt securities:
. the holder of a debt security is entitled to, and does, elect pursuant
to the terms of the debt security to receive payment in a currency or
currency unit other than that in which
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the deposit has been made in respect of the debt security; or
. the currency or currency unit in which the deposit has been made in
respect of the debt security ceases to be used by its government of
issuance;
then the indebtedness represented by the debt security will be deemed to have
been, and will be, fully discharged and satisfied through the payment of the
principal, premium, if any, and interest, if any, on the debt security as they
become due out of the proceeds yielded by converting the amount so deposited in
respect of the debt security into the currency or currency unit in which the
debt security becomes payable as a result of the holder's election or the
government's cessation of usage based on the applicable market exchange rate
(as defined in the prospectus supplement relating to the debt security) for
that currency or currency unit in effect on the second business day prior to
each payment date. If the holder elected to receive payment in a currency other
than the currency deposited in trust as described in the first bullet point of
this paragraph, the currency deposited in trust will be converted from time to
time. However, if there is a cessation of usage of the currency or currency
unit by its government of issuance which results in current exchange rates no
longer being available, the conversion will be based on the applicable market
exchange rate for the currency or currency unit (as nearly as possible) in
effect at the time of cessation (Section 1405). Unless otherwise provided in
the prospectus supplement, all payments of principal, premium, if any, and
interest, if any, on any debt security that is payable in a foreign currency or
currency unit that ceases to be used by its government of issuance will be made
in U.S. dollars (Section 312).
If UTC effects covenant defeasance with respect to any debt securities and
any related coupons and the debt securities and any related coupons are
declared due and payable because of the occurrence of any event of default
other than the event of default described in the third bullet point under "--
Events of Default" with respect to Sections 1008 and 1009 of the indenture
(which sections would no longer be applicable to the debt securities or any
related coupons) or described in the third or fifth bullet point under "--
Events of Default" with respect to any other covenant with respect to which
there has been defeasance, the amount of cash and the amounts of principal and
interest payable on the government obligations on deposit with the trustee will
be sufficient to pay amounts due on the debt securities and any related coupons
at the time of their stated maturity but may not be sufficient to pay amounts
due on the debt securities and any related coupons at the time of the
acceleration resulting from the event of default. However, UTC would remain
liable to make payment of the amounts due at the time of acceleration.
The prospectus supplement may further describe the provisions, if any,
permitting defeasance or covenant defeasance, including any modifications to
the provisions described above, with respect to the debt securities of or
within a particular series and any related coupons.
Modification and Waiver
Modifications and amendments of the indenture may be made by UTC and the
trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of outstanding indenture securities which are
affected by the modification or amendment. However, the consent of the holder
of each indenture security affected by the modification or amendment is
required for any modification or amendment that would, among other things:
. change the stated maturity of principal of, or any installment of
interest or premium, if any, on, or change the obligation of UTC to
pay any additional amounts as contemplated by Section 1010 of the
indenture on, any security;
. reduce the principal amount of, or the rate of interest on, or any
premium payable on redemption of,
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any security, or reduce the amount of principal of an original issue
discount security that would be due and payable upon declaration of
acceleration of the maturity of the original issue discount security
or would be provable in bankruptcy;
. change the place of payment where, or the coin, currency, currencies,
currency unit or composite currency in which payment of principal,
premium, if any, or interest on any security is payable;
. impair the right to institute suit for the enforcement of any payment
on or with respect to any security;
. reduce the above stated percentage of holders of indenture securities
necessary to modify or amend the indenture or to consent to any waiver
under the indenture; or
. modify the foregoing requirements (Section 902).
The holders of at least a majority in aggregate principal amount of
outstanding indenture securities may, on behalf of all holders of outstanding
indenture securities, waive compliance by UTC with the restrictions described
in this prospectus under "--Liens" and "--Sales and Leasebacks" and some of the
restrictions described under "--Restriction on Merger and Sales of Assets" and
compliance with specified other covenants of UTC contained in the indenture
(Section 1011).
The indenture contains provisions for convening meetings of the holders of
indenture securities of a series if indenture securities of that series are
issuable as bearer securities (Section 1501). A meeting may be called at any
time by the trustee, and also, upon request, by UTC or the holders of at least
10% in principal amount of the indenture securities of that series outstanding.
If a meeting is called, notice must be given as provided in the indenture
(Section 1502). Except for any consent which must be given by the holder of
each indenture security affected by a modification or amendment of the
indenture, as described above, any resolution presented at a meeting or
adjourned meeting at which a quorum is present may be adopted by the
affirmative vote of the holders of a majority in principal amount of the
indenture securities of that series; provided, however, that any resolution
with respect to any consent or waiver which may be given by the holders of not
less than a specified percentage in principal amount of the indenture
securities of a series may be adopted at a meeting or adjourned meeting at
which a quorum is present only by the affirmative vote of that specified
percentage in principal amount of the indenture securities of that series; and
provided further that any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which may be
made, given or taken by the holders of a specified percentage, which is less
than a majority in principal amount of indenture securities of a series may be
adopted at a meeting or adjourned meeting duly reconvened at which a quorum is
present by the affirmative vote of the holders of that specified percentage in
principal amount of the indenture securities of that series. Any resolution
passed or decision taken at any meeting of holders of indenture securities of
any series duly held in accordance with the indenture will be binding on all
holders of indenture securities of that series and the related coupons. The
quorum at any meeting called to adopt a resolution, and at any reconvened
meeting, will be persons holding or representing a majority in principal amount
of the indenture securities of a series. However, if any action is to be taken
at the meeting with respect to a consent or waiver which may be given by the
holders of not less than a specified percentage in principal amount of the
indenture securities of a series, the persons holding or representing that
specified percentage in principal amount of the indenture securities of the
series will constitute a quorum (Section 1504).
Events of Default
The indenture defines an "event of default" with respect to any series of
indenture
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securities as being any one of the following events:
. default in the payment of any interest upon any indenture security of
the series and any related coupon when due, continued for 30 days;
. default in the payment of the principal of, or premium, if any, on an
indenture security of the series at its maturity;
. default in the performance of any other covenant of UTC in the
indenture, continued for 60 days after written notice as provided in
the indenture, other than a covenant included in the indenture solely
for the benefit of series of indenture securities other than the
series in question or a covenant default the performance of which
would be covered by the fifth bullet point below;
. specified events in bankruptcy, insolvency or reorganization; and
. any other event of default provided with respect to indenture
securities of the series.
No event of default provided with respect to a particular series of indenture
securities, except as to events described in the third and fourth bullet points
above, necessarily constitutes an event of default with respect to any other
series of indenture securities (Section 501).
If an event of default described in the first, second or fifth bullet point
above with respect to indenture securities of any series at the time
outstanding occurs and is continuing, then the trustee or the holders of not
less than 25% in principal amount of the outstanding indenture securities of
that series may declare the principal amount of all of the indenture securities
of that series to be due and payable immediately, or, if the indenture
securities of that series are original issue discount securities or indexed
securities, the trustee or the same minimum number of holders may declare the
portion of the principal amount that is specified in the terms of that series
to be due and payable immediately. If an event of default described in the
third or fourth bullet point above occurs and is continuing, then the trustee
or the holders of not less than 25% in principal amount of all the indenture
securities then outstanding may declare the principal amount of all of the
outstanding indenture securities to be due and payable immediately, or, if any
indenture securities are original issue discount securities or indexed
securities, the trustee or the same minimum number of holders may declare the
portion of the principal amount that is specified in the terms of that series
to be due and payable immediately. However, at any time after a declaration of
acceleration with respect to outstanding indenture securities of a series (or
of all outstanding indenture securities, as the case may be) has been made, but
before a judgment or decree for payment of the money has been obtained by the
trustee as provided in the indenture, the holders of a majority in principal
amount of outstanding indenture securities of that series or of all outstanding
indenture securities, as the case may be, may, subject to specified conditions,
rescind and annul the acceleration if all events of default, other than the
nonpayment of accelerated principal or specified portion of accelerated
principal, with respect to outstanding indenture securities of the series or of
all outstanding indenture securities, as the case may be, have been cured or
waived as provided in the indenture (Section 502). The indenture also provides
that the holders of not less than a majority in principal amount of the
outstanding indenture securities of a series or of all outstanding indenture
securities, as the case may be, may, subject to specified limitations, waive
any past default and its consequences (Section 513). The prospectus supplement
relating to any series of debt securities which are original issue discount
securities or indexed securities will describe the particular provisions
relating to acceleration of a portion of the principal amount of the original
issue discount securities or indexed securities upon the occurrence and
continuation of an event of default.
In case an event of default with respect to the indenture securities of a
series has occurred and is continuing, the trustee will be
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obligated to exercise those rights and powers vested in it by the indenture
with respect to the series that a prudent man would exercise and to use the
same degree of care and skill in their exercise as a prudent man would use
under the circumstances in the conduct of his own affairs (Section 601).
Subject to the provisions of the indenture relating to the duties of the
trustee in case an event of default occurs and is continuing, the trustee is
under no obligation to exercise any of the rights or powers under the indenture
at the request, order or direction of any of the holders unless the holders
have offered to the trustee reasonable security or indemnity (Section 603).
Subject to these provisions for the indemnification of the trustee and
specified limitations contained in the indenture, the holders of a majority in
principal amount of the outstanding indenture securities of a series or of all
outstanding indenture securities, as the case may be, will have the right 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 512).
UTC will be required to furnish to the trustee annually a statement as to
the fulfillment by UTC of all of its obligations under the indenture (Section
1004).
Governing Law
The indenture and the debt securities will be governed and construed in
accordance with the law of the State of New York.
Trustee
The trustee may resign or be removed with respect to one or more series of
indenture securities and a successor trustee may be appointed to act with
respect to the series (Section 610). If two or more persons are acting as
trustee with respect to different series of indenture securities, each trustee
will be a trustee of a trust under the indenture separate and apart from the
trust administered by any other trustee (Section 611), and any action described
in this prospectus to be taken by the "trustee" may then be taken by each
trustee with respect to, and only with respect to, the one or more series of
indenture securities for which it is trustee.
Listing
Unless otherwise provided in the applicable prospectus supplement or any
pricing supplement to the prospectus supplement, the debt securities will not
be listed on any securities exchange.
Foreign Currency Risks
Debt securities denominated or payable in foreign currencies may entail
significant risks. These risks include, without limitation, the possibility of
significant fluctuations in the foreign currency markets, the imposition or
modification of foreign exchange controls and possible illiquidity in the
secondary market. These risks will vary depending upon the currency or
currencies involved. These risks will be more fully described in the applicable
prospectus supplement.
DESCRIPTION OF DEBT WARRANTS
UTC may issue warrants for the purchase of debt securities. Debt warrants
may be issued separately or together with debt securities, currency warrants
(which are described under "Description of Currency Warrants") or stock-index
warrants (which are described under "Description of Stock-Index Warrants").
The debt warrants are to be issued under debt warrant agreements to be
entered into between UTC and one or more banks or trust companies, as debt
warrant agent, all as will be set forth in the prospectus supplement relating
to the debt warrants being offered by the prospectus supplement. A form of debt
warrant agreement, including a form of debt warrant certificate representing
the debt warrants, reflecting the alternative provisions that may be included
in the debt warrant agreements to be entered into with respect to particular
offerings
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of debt warrants, is incorporated by reference as an exhibit to the
registration statement. See "Where You Can Find More Information" for
information on how to obtain a copy of the form of debt warrant agreement.
The following description of the debt warrant agreements and the debt
warrant certificates and summaries of some provisions of the debt warrant
agreements and the debt warrant certificates do not describe every aspect of
the debt warrants and are subject to, and are qualified in their entirety by
reference to, all the provisions of the applicable debt warrant agreements and
the debt warrant certificates, including definitions of terms used in the debt
warrant agreements and not otherwise defined in this prospectus. For example,
in this section we use some terms that have been given special meaning in the
debt warrant agreements. We also include references in parentheses to some
sections of the debt warrant agreements. Whenever we refer to particular
sections or defined terms of the debt warrant agreements in this prospectus or
in the prospectus supplement, those sections or defined terms are incorporated
by reference here or in the prospectus supplement.
Terms of the Debt Warrants to Be Described in the Prospectus Supplement
The particular terms of each issue of debt warrants, the debt warrant
agreement relating to the debt warrants and the debt warrant certificates
representing debt warrants will be described in the applicable prospectus
supplement. This description will include:
. the initial offering price;
. the currency or currency unit in which the price for the debt warrants
is payable;
. the title, aggregate principal amount and terms of the debt securities
purchasable upon exercise of the debt warrants;
. the title and terms of any related debt securities with which the debt
warrants are issued and the number of the debt warrants issued with
each debt security;
. the date, if any, on and after which the debt warrants and the related
debt securities will be separately transferable;
. the principal amount of debt securities purchasable upon exercise of
each debt warrant and the price at which that principal amount of debt
securities may be purchased upon exercise of each debt warrant;
. the date on which the right to exercise the debt warrants will
commence and the date on which this right will expire;
. if applicable, a discussion of United States federal income tax,
accounting or other considerations applicable to the debt warrants;
. whether the debt warrants represented by the debt warrant certificates
will be issued in registered or bearer form, and, if registered, where
they may be transferred and registered; and
. any other terms of the debt warrants.
Debt warrant certificates will be exchangeable for new debt warrant
certificates of different denominations and, if in registered form, may be
presented for registration of transfer and debt warrants may be exercised at
the corporate trust office of the debt warrant agent or any other office
indicated in the related prospectus supplement (Section 3.01). Before the
exercise of debt warrants, holders of debt warrants will not be entitled to
payments of principal, premium, if any, or interest, if any, on the debt
securities purchasable upon exercise of the debt warrants, or to enforce any of
the covenants in the indenture (Section 4.01).
Exercise of Debt Warrants
Unless otherwise provided in the related prospectus supplement, each debt
warrant will entitle the holder of debt warrants to purchase for cash the
principal amount of debt securities
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at the exercise price that will in each case be set forth in, or be
determinable as set forth in, the related prospectus supplement (Sections 2.01
and 2.03). Debt warrants may be exercised at any time up to the close of
business on the expiration date specified in the prospectus supplement relating
to the debt warrants. After the close of business on the expiration date or any
later date to which the expiration date may be extended by UTC, unexercised
debt warrants will become void (Section 2.02).
Debt warrants may be exercised as set forth in the prospectus supplement
relating to the debt warrants. Upon receipt of payment and the debt warrant
certificate properly completed and duly executed at the corporate trust office
of the debt warrant agent or any other office indicated in the prospectus
supplement, UTC will, as soon as practicable, forward the debt securities
purchasable upon exercise of the debt warrants to the person entitled to them.
If fewer than all of the debt warrants represented by the debt warrant
certificate are exercised, a new debt warrant certificate will be issued for
the remaining amount of debt warrants (Section 2.03).
If you hold your interest in a debt warrant indirectly, you should check
with the institution through which you hold your interest in the debt warrant
to determine how these provisions will apply to you. See "Legal Ownership" for
a general description of the procedures and rights applicable to indirect
owners of debt warrants.
Modifications
The debt warrant agreement may be amended by UTC and the debt warrant
agent, without the consent of the holder of any debt warrant certificate, for
the purpose of curing any ambiguity, or of curing, correcting or supplementing
any defective provision contained in the debt warrant agreement, or making any
provisions in regard to matters or questions arising under the debt warrant
agreement that UTC may deem necessary or desirable; provided that the amendment
may not adversely affect the interest of the holders of debt warrant
certificates in any material respect (Section 6.03). UTC and the debt warrant
agent also may modify or amend the debt warrant agreement and the terms of the
debt warrants, with the consent of the owners of not less than a majority in
number of the then outstanding unexercised debt warrants affected. However, any
modification or amendment that increases the exercise price, shortens the
period of time during which the debt warrants may be exercised or otherwise
materially and adversely affects the exercise rights of the owners of the debt
warrants or reduces the number of debt warrants the consent of whose owners is
required for modification or amendment of the debt warrant agreement or the
terms of the debt warrants may be made only with the consent of the owners
affected by the modification or amendment.
Merger, Consolidation, Sale or Other Dispositions
Under the debt warrant agreement, UTC may, to the extent permitted in the
indenture, consolidate with, or sell or convey all or substantially all of its
assets to, or merge with or into, any other corporation. If at any time there
is a merger, consolidation, sale, transfer, conveyance or other disposition of
substantially all of the assets of UTC, the successor or assuming corporation
will succeed to and be substituted for UTC, with the same effect as if it had
been named in the debt warrant agreement and in the debt warrants as UTC. UTC
will then be relieved of any further obligation under the debt warrant
agreement or under the debt warrants (Sections 6.01 and 6.02).
Enforceability of Rights; Governing Law
The debt warrant agent will act solely as an agent of UTC in connection
with the issuance and exercise of debt warrants and will not assume any
obligation or relationship of agency or trust for or with any holder of a debt
warrant certificate or any owner of a beneficial interest in debt warrants
(Section 5.02). The holders of debt warrant certificates, without the consent
of the debt warrant agent, the trustee, the holder of any debt securities
issued upon
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exercise of debt warrants or the holder of any other debt warrant certificates,
may, on their own behalf and for their own benefit, enforce, and may institute
and maintain any suit, action or proceeding against UTC suitable to enforce, or
otherwise in respect of, their rights to exercise debt warrants evidenced by
their debt warrant certificates (Section 4.02). Except as may otherwise be
provided in the related prospectus supplement, each issue of debt warrants and
the applicable debt warrant agreement will be governed by and construed in
accordance with the law of the State of New York (Section 6.07).
DESCRIPTION OF CURRENCY WARRANTS
UTC may issue warrants to receive from UTC the cash value in U.S. dollars
of the right to purchase or to sell the foreign currencies or units of two or
more foreign currencies that will be designated by UTC at the time of offering.
Currency warrants may be issued:
. in the form of currency put warrants, entitling their owners to
receive from UTC the currency warrant cash settlement value (as
defined under "Terms of the Currency Warrants to Be Described in the
Prospectus Supplement" below) in U.S. dollars of the right to sell a
specified foreign base currency or currency unit or units for a
specified amount of U.S. dollars;
. in the form of currency call warrants, entitling their owners to
receive from UTC the currency warrant cash settlement value in U.S.
dollars of the right to purchase a specified amount of a base currency
for a specified amount of U.S. dollars; or
. in any other form that is specified in the related prospectus
supplement.
Currency warrants may be issued separately or together with debt securities,
debt warrants or stock-index warrants.
A currency warrant will be settled only in U.S. dollars and accordingly
will not require or entitle an owner to sell, deliver, purchase or take
delivery of any other currency or currency unit.
The currency warrants are to be issued under currency warrant agreements to
be entered into between UTC and one or more banks or trust companies, as
currency warrant agents, all as will be described in the prospectus supplement
relating to the currency warrants being offered by the prospectus supplement. A
form of currency warrant agreement, including a form of currency warrant
certificate representing the currency warrants, is incorporated by reference as
an exhibit to the registration statement. See "Where You Can Find More
Information" for information on how to obtain a copy of the form of currency
warrant agreement.
The following description of the currency warrant agreements and the
currency warrant certificates and summaries of some provisions of the currency
warrant agreements and the currency warrant certificates do not describe every
aspect of the currency warrants and are subject to, and are qualified in their
entirety by reference to, all the provisions of the applicable currency warrant
agreements and the currency warrant certificates, including definitions of
terms used in the currency warrant agreements and not otherwise defined in this
prospectus. For example, in this section we use some terms that have been given
special meaning in the currency warrant agreements. We also include references
in parentheses to some sections of the currency warrant agreements. Whenever we
refer to particular sections or defined terms of the currency warrant
agreements in this prospectus or in the prospectus supplement, those sections
or defined terms are incorporated by reference here or in the prospectus
supplement.
Terms of the Currency Warrants to Be Described in the Prospectus Supplement
The particular terms of each issue of currency warrants, the currency
warrant agreement relating to the currency warrants and the currency warrant
certificates
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representing the currency warrants will be described in the applicable
prospectus supplement. This description will include:
. the aggregate amount of the currency warrants;
. the initial offering price;
. whether the currency warrants shall be currency put warrants, currency
call warrants, or otherwise;
. the formula for determining the currency warrant cash settlement
value, if applicable, of each currency warrant;
. the procedures and conditions relating to the exercise of the currency
warrants;
. the circumstances which will cause the currency warrants to be deemed
to be automatically exercised;
. any minimum number of currency warrants which must be exercised at any
one time, other than upon automatic exercise;
. the date on which the right to exercise the currency warrants will
commence and the date on which the right will expire;
. the identity of the currency warrant agent;
. if applicable, a discussion of United States federal income tax,
accounting or other considerations applicable to the currency
warrants; and
. any other terms of the currency warrants.
If the currency warrants are to be offered either in the form of currency
put warrants or currency call warrants, an owner will receive a cash payment
upon exercise only if the currency warrants have a cash settlement value in
excess of zero at that time. The spot exchange rate of the applicable base
currency, as compared to the U.S. dollar upon exercise, will determine,
together with the strike price, whether the currency warrants have a cash
settlement value on any given day prior to their expiration. The strike price
for a currency warrant will be the amount of the base currency that the holder
has the right to sell, in the case of a currency put warrant, or purchase, in
the case of a currency call warrant, in exchange for one U.S. dollar. The
currency warrants are expected to be "out-of-the-money" (i.e., the cash
settlement value will be zero) when initially sold and will be "in-the-money"
(i.e., their cash settlement value will exceed zero) if, in the case of
currency put warrants, the base currency depreciates against the U.S. dollar to
the extent that one U.S. dollar is worth more than the strike price or, in the
case of currency call warrants, the base currency appreciates against the U.S.
dollar to the extent that one U.S. dollar is worth less than the strike price.
The "exercise date" of the currency warrants will be defined in the applicable
prospectus supplement. "Cash settlement value" on an exercise date of currency
put warrants is an amount which is the greater of:
. zero; and
. an amount calculated as follows:
constant - (constant X strike price)
-----------------------
spot rate
The cash settlement value on an exercise date of currency call warrants is an
amount which is the greater of:
. zero; and
. an amount calculated as follows:
(constant X strike price) - constant
-----------------------
spot rate
The constant will be a specified fixed amount, for example, 50. The spot rate
means the spot exchange rate of the base currency for U.S. dollars on the
exercise date.
Book-Entry Procedures and Settlement
Except as may otherwise be provided in the related prospectus supplement,
each issue of currency warrants will be issued in book-entry form and
represented by a single global currency warrant certificate, registered in the
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name of a depositary or its nominees. The cash settlement value on exercise of
a currency warrant will be paid by the currency warrant agent to the depositary
or to a depositary participant. See "Legal Ownership" for a further description
of book-entry issuance and other important matters relating to the currency
warrants.
Exercise of Currency Warrants
Unless otherwise provided in the related prospectus supplement, each
currency warrant will entitle the beneficial owner to the cash settlement value
of the currency warrant on the applicable exercise date, in each case as these
terms will further be defined in the related prospectus supplement (Section
2.02). If not exercised prior to 3:00 p.m., New York City time, on the fifth
business day preceding the expiration date, currency warrants will be deemed
automatically exercised on the expiration date (Section 2.03). Currency
warrants may also be deemed to be automatically exercised if they are delisted.
Procedures for exercise of the currency warrants will be set out in the related
prospectus supplement. In addition, if you hold your interest in a currency
warrant indirectly, either because it has been issued in global form or because
you otherwise hold it in street name, you should check with the institution
through which you hold your interest in the currency warrant to determine how
these provisions will apply to you. See "Legal Ownership" for a general
description of the procedures and rights that may be applicable to indirect
owners of currency warrants.
Listing
Unless otherwise provided in the related prospectus supplement, each issue
of currency warrants will be listed on a national securities exchange as
specified in the prospectus supplement, subject only to official notice of
issuance, as a pre-condition to the sale of any of the currency warrants. If
the currency warrants are delisted from, or permanently suspended from trading
on, that exchange, and, at or before the delisting or suspension, the currency
warrants have not been listed on another national securities exchange, currency
warrants not previously exercised will be deemed automatically exercised on the
date the delisting or permanent trading suspension becomes effective (Section
2.03). The cash settlement value to be paid if the currency warrants are thus
deemed automatically exercised will be as described in the related prospectus
supplement. UTC will notify holders of currency warrants as soon as practicable
of the delisting or permanent trading suspension. The applicable currency
warrant agreement will contain a covenant of UTC not to seek delisting of the
currency warrants from, or permanent suspension of their trading on, the
exchange on which they are listed (Section 2.04).
Modifications
The currency warrant agreement and the terms of the currency warrants may
be amended by UTC and the currency warrant agent, without the consent of the
beneficial owners or the registered holder, for the purpose of curing any
ambiguity, or of curing, correcting or supplementing any defective or
inconsistent provision contained in the currency warrant agreement and the
terms of the currency warrants, or in any other manner which UTC may deem
necessary or desirable and which will not adversely affect the interests of the
beneficial owners (Section 6.01).
UTC and the currency warrant agent also may modify or amend the currency
warrant agreement and the terms of the currency warrants with the consent of
the owners of not less than a majority in number of the then outstanding
unexercised currency warrants affected, provided that no modification or
amendment that increases the strike price in the case of a currency put
warrant, decreases the strike price in the case of a currency call warrant,
shortens the period of time during which the currency warrants may be exercised
or otherwise materially and adversely affects the exercise rights of the owners
of the currency warrants or reduces the number of outstanding currency warrants
the consent of
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whose owners is required for modification or amendment of the currency warrant
agreement or the terms of the currency warrants may be made without the consent
of the owners affected by the modification or amendment (Section 6.01).
Merger, Consolidation, Sale or Other Dispositions
If at any time there is a merger, consolidation, sale, transfer, conveyance
or other disposition of substantially all of the assets of UTC, then the
successor or assuming corporation will succeed to and be substituted for UTC,
with the same effect as if it had been named in the currency warrant agreement
and in the currency warrants as UTC. UTC will then be relieved of any further
obligation under the currency warrant agreement or under the currency warrants,
and UTC as the predecessor corporation may then or at any later time be
dissolved, wound up or liquidated (Section 3.02).
Enforceability of Rights by Owners; Governing Law
The currency warrant agent will act solely as an agent of UTC in connection
with the issuance and exercise of currency warrants and will not assume any
obligation or relationship of agency or trust for or with any owner of a
beneficial interest in currency warrants or with the registered holder of the
currency warrants (Section 5.02). The currency warrant agent will have no duty
or responsibility in case of any default by UTC in the performance of its
obligations under the currency warrant agreement or currency warrant
certificate including, without limitation, any duty or responsibility to
initiate any proceedings at law or otherwise or to make any demand upon UTC
(Section 5.02). Owners may, without the consent of the currency warrant agent,
enforce by appropriate legal action, on their own behalf, their right to
exercise, and to receive payment for, their currency warrants (Section 3.01).
Except as may otherwise be provided in the applicable prospectus supplement,
each issue of currency warrants and the applicable currency warrant agreement
will be governed by and construed in accordance with the law of the State of
New York (Section 6.05).
Risk Factors Relating to the Currency Warrants
The currency warrants may entail significant risks. These risks include,
without limitation, the possibility of significant fluctuations in the foreign
currency markets, the imposition or modification of foreign exchange controls,
possible illiquidity in the secondary market and the risk that the currency
warrants will expire worthless. These risks will vary depending on the
particular terms of the currency warrants and will be more fully described in
the related prospectus supplement.
DESCRIPTION OF STOCK-INDEX WARRANTS
UTC may issue warrants entitling the owners of the warrants to receive,
upon exercise, an amount in cash determined by reference to decreases or
increases in the level of a specified stock index which may be based on one or
more U.S. or foreign stocks or a combination of U.S. or foreign stocks. Stock-
index warrants may be issued:
. in the form of stock-index put warrants, entitling their owners to
receive from UTC the stock-index cash settlement value in cash in U.S.
dollars, which amount will be determined by reference to the amount,
if any, by which the exercise price exceeds the index value at the
time of exercise; and
. in the form of stock-index call warrants, entitling their owners to
receive from UTC the stock-index cash settlement value in cash in U.S.
dollars, which amount will be determined by reference to the amount,
if any, by which the index value at the time of exercise exceeds the
exercise price.
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The "stock-index cash settlement value", the "exercise price" and the "index
value" will be defined in the applicable prospectus supplement. Stock-index
warrants may be issued separately or together with debt securities, debt
warrants or currency warrants.
The prospectus supplement for an issue of stock-index warrants will set
forth the formula by which the stock-index cash settlement value will be
determined, including any multipliers, if applicable. In addition, if so
specified in the related prospectus supplement, following the occurrence of a
market disruption event (as defined in the prospectus supplement), the stock-
index cash settlement value may be determined on a different basis than upon
normal exercise of a stock-index warrant. Unless otherwise indicated in the
related prospectus supplement, a stock-index warrant will be settled only in
cash in U.S. dollars, which is the only permissible method of settlement under
exchange rules currently approved by the SEC. Accordingly, a stock-index
warrant will not require or entitle an owner to sell, deliver, purchase or take
delivery of any shares of any underlying stock or any other securities. The
owners will not be entitled to any of the rights of the holders of any
underlying stock.
The stock-index warrants are to be issued under stock-index warrant
agreements to be entered into between UTC and one or more banks or trust
companies, as stock-index warrant agents, all as will be described in the
prospectus supplement relating to the stock-index warrants being offered by the
prospectus supplement. A form of stock-index warrant agreement, including a
form of stock-index warrant certificate, is incorporated by reference as an
exhibit to the registration statement. See "Where You Can Find More
Information" for information on how to obtain a copy of the form of stock-index
warrant agreement.
The following description of the stock-index warrant agreements and the
stock-index warrant certificates and summaries of some provisions of the stock-
index warrants and the stock-index warrant certificates do not describe every
aspect of the stock-index warrants and are subject to, and are qualified in
their entirety by reference to, all of the provisions of the applicable stock-
index warrant agreements and the stock-index warrant certificates, including
definitions of terms used in the stock-index warrant agreements and not
otherwise defined in this prospectus. For example, in this section we use some
terms that have been given special meaning in the stock-index warrant
agreements. We also include references in parentheses to some sections of the
stock-index warrant agreements. Whenever we refer to particular sections or
defined terms of the stock-index warrant agreements in this prospectus or in
the prospectus supplement, those sections or defined terms are incorporated by
reference here or in the prospectus supplement.
Terms of the Stock-Index Warrants to Be Described in the Prospectus Supplement
The particular terms of each issue of stock-index warrants, the stock-index
warrant agreement relating to the stock-index warrants and the stock-index
warrant certificate representing the stock-index warrants will be described in
the applicable prospectus supplement. This description will include:
. the aggregate amount of the stock-index warrants;
. the initial offering price of the stock-index warrants;
. the stock index for the stock-index warrants, which may be based on
one or more U.S. or foreign stocks or a combination of U.S. or foreign
stocks and may be a preexisting U.S. or foreign stock index compiled
and published by a third party or an index based on one or more
underlying stock or stocks selected by UTC solely in connection with
the issuance of the stock-index warrants, and specified information
regarding the stock index and the underlying stock or stocks;
. whether the stock-index warrants are puts, calls or otherwise;
28
<PAGE>
. the date on which the right to exercise the stock-index warrants
commences and the date on which this right expires;
. the manner in which the stock-index warrants may be exercised;
. the minimum number, if any, of the stock-index warrants exercisable at
any one time;
. the maximum number, if any, of the stock-index warrants that may,
subject to UTC's election, be exercised by all owners (or by any
person or entity) on any day;
. any provisions for the automatic exercise of the stock-index warrants
other than at expiration;
. the method of providing for a substitute index or otherwise
determining the amount payable in connection with the exercise of the
stock-index warrants if the stock index changes or ceases to be made
available by its publisher, which determination will be made by an
independent expert;
. if applicable, a discussion of United States federal income tax,
accounting or other considerations applicable to the stock-index
warrants;
. any provisions permitting an owner to condition an exercise notice on
the absence of specified changes in the index value after the exercise
date; and
. any other terms of the stock-index warrants.
Book-Entry Procedures and Settlement
Except as may otherwise be provided in the related prospectus supplement,
each issue of stock-index warrants will be issued in book-entry form and
represented by a single global stock-index warrant certificate, registered in
the name of a depositary or its nominees. The stock-index cash settlement value
will be paid by the stock-index warrant agent to the depositary or to a
depositary participant. See "Legal Ownership" for a further description of
book-entry issuance and other important matters relating to the stock-index
warrants.
Exercise of Stock-Index Warrants
Unless otherwise provided in the related prospectus supplement, each stock-
index warrant will entitle the owner to the stock-index cash settlement value
of the stock-index warrant on the applicable valuation date, in each case as
these terms will further be defined in the related prospectus supplement
(Section 2.02). If not exercised prior to 3:00 p.m., New York City time, on the
stock-index warrant expiration date, stock-index warrants will be deemed
automatically exercised on the stock-index warrant expiration date (Section
2.03). Procedures for exercise of the stock-index warrants will be described in
the related prospectus supplement. In addition, if you hold your interest in a
stock-index warrant indirectly, either because it has been issued in global
form or because you otherwise hold it in street name, you should check with the
institution through which you hold your interest in the stock-index warrant to
determine how these provisions will apply to you. See "Legal Ownership" for a
general description of the procedures and rights applicable to indirect holders
of stock-index warrants.
Listing
Unless otherwise provided in the related prospectus supplement, each issue
of stock-index warrants will be listed on a national securities exchange, as
specified in the related prospectus supplement, subject only to official notice
of issuance, as a pre-condition to the sale of any of the stock-index warrants.
It may be necessary in certain circumstances for that national securities
exchange to obtain the approval of the SEC in connection with any listing of
the stock-index warrants. If the stock-index warrants are delisted from, or
permanently suspended from trading on, the exchange, and, at or before the
delisting or suspension, the
29
<PAGE>
stock-index warrants have not been listed on another national securities
exchange, stock-index warrants not previously exercised will be deemed
automatically exercised on the date the delisting or permanent trading
suspension becomes effective (Section 2.03). The stock-index cash settlement
value to be paid if the stock-index warrants are then deemed automatically
exercised will be described in the related prospectus supplement. UTC will
notify holders of stock-index warrants as soon as practicable of the delisting
or permanent trading suspension. The applicable stock-index warrant agreement
will contain a covenant of UTC not to seek delisting of the stock-index
warrants from, or permanent suspension of their trading on the exchange on
which they are listed (Section 2.05).
Modifications
The stock-index warrant agreement and the terms of the stock-index warrants
may be amended by UTC and the stock-index warrant agent, without the consent of
the beneficial owners or the registered holder, for the purpose of curing any
ambiguity, or of curing, correcting or supplementing any defective or
inconsistent provision contained in the stock-index warrant agreement and the
terms of the stock-index warrants, or in any other manner which UTC may deem
necessary or desirable and which will not adversely affect the interests of the
owners (Section 6.01).
UTC and the stock-index warrant agent also may modify or amend the stock-
index warrant agreement and the terms of the stock-index warrants, with the
consent of the owners of not less than a majority in number of the then
outstanding unexercised stock-index warrants affected, provided that no such
modification or amendment that increases the exercise price in the case of a
stock-index call warrant, decreases the exercise price in the case of a stock-
index put warrant, shortens the period of time during which the stock-index
warrants may be exercised or otherwise materially and adversely affects the
exercise rights of the owners of the stock-index warrants or reduces the number
of outstanding stock-index warrants the consent of whose owners is required for
modification or amendment of the stock-index warrant agreement or the terms of
the stock-index warrants may be made without the consent of the owners affected
by the modification or amendment (Section 6.01).
Merger, Consolidation, Sale or Other Dispositions
If at any time there is a merger, consolidation, sale, transfer, conveyance
or other disposition of substantially all of the assets of UTC, then the
successor or assuming corporation will succeed to and be substituted for UTC,
with the same effect as if it had been named in the stock-index warrant
agreement and in the stock-index warrants as UTC. UTC will then be relieved of
any further obligation under the stock-index warrant agreement or under the
stock-index warrants, and UTC as the predecessor corporation may then or at any
later time be dissolved, wound up or liquidated (Section 3.02).
Enforceability of Rights by Owners; Governing Law
The stock-index warrant agent will act solely as an agent of UTC in
connection with the issuance and exercise of stock-index warrants and will not
assume any obligation or relationship of agency or trust for or with any owner
of a beneficial interest in stock-index warrants or with the registered holder
of the stock-index warrants (Section 5.02). The stock-index warrant agent will
have no duty or responsibility in case of any default by UTC in the performance
of its obligations under the stock-index warrant agreement or stock-index
warrant certificate including, without limitation, any duty or responsibility
to initiate any proceedings at law or otherwise or to make any demand upon UTC
(Section 5.02). Owners may, without the consent of the stock-index warrant
agent, enforce by appropriate legal action, on their own behalf, their right to
exercise, and to receive payment for, their stock-index warrants (Section
3.01). Except as may otherwise be provided in the applicable prospectus
supplement, each issue of stock-index warrants and the applicable stock-index
30
<PAGE>
warrant agreement will be governed by and construed in accordance with the law
of the State of New York (Section 6.05).
Risk Factors Relating to the Stock-Index Warrants
The stock-index warrants may entail significant risks. These risks include,
without limitation, the possibility of significant fluctuations in the
applicable stock index, possible illiquidity in the secondary market and the
risk that the stock-index warrants will expire worthless. These risks will vary
depending on the particular terms of the stock-index warrants and will be more
fully described in the related prospectus supplement.
PLAN OF DISTRIBUTION
UTC may sell the securities described in this prospectus through agents,
underwriters or dealers, or directly to a limited number of institutional
purchasers or to a single purchaser.
The accompanying prospectus supplement will identify or describe:
. any underwriters, dealers or agents;
. their compensation;
. the net proceeds to UTC;
. the purchase price of the securities;
. the initial public offering price of the securities; and
. any exchange on which the securities are listed.
Agents
UTC may designate agents to solicit purchases for the period of their
appointment to sell securities on a continuing basis. Unless otherwise
indicated in the related prospectus supplement, any agent will be acting on a
reasonable best efforts basis for the period of its appointment.
Underwriters
If UTC uses underwriters for a sale of securities, the securities will be
acquired by the underwriters for their own account. The underwriters may resell
the securities in one or more transactions, including negotiated transactions
at a fixed public offering price or at varying prices determined at the time of
sale. Unless otherwise set forth in the related prospectus supplement, the
obligations of the underwriters to purchase the securities will be subject to
customary conditions and the underwriters will be obligated to purchase all the
securities of the series offered if any of the securities of that series 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.
Direct Sales
UTC may also sell securities directly to one or more purchasers without
using underwriters or agents.
Underwriters, dealers, and agents that participate in the distribution of
the securities may be underwriters as defined in the Securities Act of 1933, as
amended, and any discounts or commissions they receive from UTC and any profit
on their resale of the securities may be treated as underwriting discounts and
commissions under the Securities Act. UTC may have agreements with the
underwriters, dealers and agents to indemnify them against specified civil
liabilities, including liabilities under the Securities Act, or to contribute
to payments they may be required to make in respect of these liabilities.
Underwriters, dealers and agents may engage in transactions with or perform
services for UTC or its subsidiaries in the ordinary course of their
businesses.
VALIDITY OF THE SECURITIES
The validity of the securities described in this prospectus will be passed
upon for UTC by Cleary, Gottlieb, Steen & Hamilton, New York,
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<PAGE>
New York and for any underwriters or agents, as the case may be, by Sullivan &
Cromwell, New York, New York.
EXPERTS
The consolidated financial statements incorporated in this Prospectus by
reference to the Annual Report on Form 10-K of United Technologies Corporation
for the year ended December 31, 1998 have been so incorporated in reliance on
the report of Pricewaterhouse- Coopers LLP, independent accountants, given on
the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other
information with the SEC. Our SEC filings are available to the public over the
Internet at the SEC's web site at http://www.sec.gov. You may also read and
copy any document we file at the SEC's public reference rooms in Washington,
D.C., New York, New York and Chicago, Illinois. Please call the SEC at 1-800-
SEC-0330 for further information on the public reference rooms.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus, and information that we file later with
the SEC will automatically update and supersede this information. We
incorporate by reference the documents listed below and any future filings
made with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the Securities
Exchange Act of 1934 until we sell all of the securities.
. Annual Report on Form 10-K for the year ended December 31, 1998.
. Current Reports on Form 8-K filed with the SEC on February 23, March
19 and April 14, 1999.
You may request a copy of these filings at no cost, by writing or
telephoning us at the following address:
William H. Trachsel
Senior Vice President, General Counsel and Secretary
United Technologies Corporation
Hartford, Connecticut 06101
(860) 728-7000
You should rely only on the information incorporated by reference or
provided in this prospectus or any prospectus supplement. We have not
authorized anyone else to provide you with different information. We are not
making an offer of these debt securities and warrants in any state where the
offer is not permitted. You should not assume that the information in this
prospectus or any prospectus supplement is accurate as of any date other than
the date on the front of those documents.
32
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
<TABLE>
<S> <C>
Filing Fee for Registration Statement............................ $147,048
Legal Fees and Expenses.......................................... 200,000*
Accounting Fees and Expenses..................................... 55,000*
Trustee's Fees and Expenses (including counsel fees)............. 10,000*
Blue Sky Fees and Expenses....................................... 1,500*
Printing and Engraving Fees...................................... 25,000*
Rating Agency Fees............................................... 81,800*
Miscellaneous.................................................... 20,000*
--------
Total.......................................................... $540,348*
========
</TABLE>
- --------
* Estimated.
Item 15. Indemnification of Directors and Officers.
Section 6.5 of UTC's Bylaws requires UTC to indemnify, to the full extent
permitted from time to time under the General Corporation Law of the State of
Delaware, each person who is made or threatened to be made a party to any
threatened, pending or completed action, suit or proceeding by reason of the
fact that such person is or was a director or officer of UTC.
Section 145 of the Delaware General Corporation Law permits a Delaware
corporation to indemnify any person who is or was a party to any actual or
threatened legal action, whether criminal, civil, administrative or
investigative, by reason of the fact that the person is or was an officer,
director or agent of the corporation, or is or was serving at the request of
the corporation as a director, officer or agent of another corporation,
partnership or other enterprise, against expenses (including attorney's fees),
judgments, fines and settlement payments reasonably and actually incurred by
him or her in connection with such proceeding, if he or she acted in good faith
and in a manner he or she reasonably believed to be in or not opposed to the
best interests of the corporation and, with respect to any criminal action or
proceeding, had no reasonable cause to believe was unlawful, except that, with
respect to any legal action by or in the right of the corporation itself, an
officer, director or agent of the corporation is entitled to indemnification
only for expenses (including attorney's fees) reasonably and actually incurred,
and is not entitled to indemnification in respect of any claim, issue or matter
as to which he or she is found liable to the corporation, unless the court
determines otherwise.
As authorized by a resolution of the Board of Directors, UTC has purchased
and maintains at its expense on behalf of directors, officers and managerial
employees insurance, within certain limits, covering liabilities which may be
incurred by them in such capacities.
Reference is made to the form of Underwriting Agreement incorporated by
reference as Exhibit 1 hereto for a description of indemnification arrangements
for offerings of debt securities or warrants pursuant thereto.
Article Ten of the Restated Certificate of Incorporation of UTC provides
that a director of UTC shall not be personally liable to UTC or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (i) for any breach of the director's duty of loyalty to
UTC or its stockholders, (ii) for acts or omissions not in good faith or which
involve intentional misconduct or a knowing violation of law, (iii) under
Section 174 of the Delaware General Corporation Law for payment of unlawful
dividends or unlawful stock repurchases or redemption, or (iv) for any
transaction from which the director derived an improper personal benefit.
II-1
<PAGE>
Item 16. Exhibits.
<TABLE>
<C> <S>
1 --Form of Underwriting Agreement.**
4(a) --Indenture, dated as of April 1, 1990, between UTC and The
Connecticut National Bank, Trustee.*
4(b) --Form of Notes (incorporated by reference to Exhibit 4(b) to UTC's
Registration Statement on Form S-3, File No. 33-40163, filed with
the Commission on April 25, 1991).
4(c) --Form of Debt Warrant Agreement between UTC and the Debt Warrant
Agent, including a form of Debt Warrant Certificate (incorporated by
reference to Exhibit 4(c) to UTC's Registration Statement on Form S-
3, File No. 33-40163, filed with the Commission on April 25, 1991).
4(d) --Form of Currency Warrant Agreement between UTC and the Currency
Warrant Agent, including a form of Currency Warrant Certificate
(incorporated by reference to Exhibit 4(d) to UTC's Registration
Statement on Form S-3, File No. 33-40163, filed with the Commission
on April 25, 1991).
4(e) --Form of Stock-Index Warrant Agreement between UTC and the Stock-
Index Warrant Agent, including a form of Stock-Index Warrant
Certificate (incorporated by reference to Exhibit 4(e) to UTC's
Registration Statement on Form S-3, File No. 33-40163, filed with
the Commission on April 25, 1991).
5 --Opinion of Cleary, Gottlieb, Steen & Hamilton as to the validity of
the Securities.*
12 --Computation of Ratio of Earnings to Fixed Charges (incorporated by
reference to Exhibit 12 to UTC's Annual Report on Form 10-K, File
No. 1-812, for the fiscal year ended December 31, 1998).
23(a) --Consent of PricewaterhouseCoopers LLP.**
23(b) --Consent of Cleary, Gottlieb, Steen & Hamilton (contained in their
opinion filed as Exhibit 5 to this Registration Statement).
24 --Powers of Attorney.*
25 --Form T-1 Statement of Eligibility and Qualification under the Trust
Indenture Act of 1939 of State Street Bank and Trust Company, as
successor to The Connecticut National Bank.*
</TABLE>
- --------
* Previously filed
** Filed herewith
Item 17. Undertakings.
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; and
(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;
II-2
<PAGE>
provided, however, that paragraphs (i) and (ii) above do not apply if the
registration statement is on Form S-3 or Form S-8 and 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.
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 that is incorporated by reference in the
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.
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 foregoing provisions 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 Act 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 of whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all the
requirements for filing on Form S-3 and has duly caused this pre-effective
amendment to the registration statement and post-effective amendment to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Hartford, State of Connecticut, on the 14th day of April, 1999.
United Technologies Corporation
/s/ David J. FitzPatrick
By: _________________________________
David J. FitzPatrick
Senior Vice President and Chief
Financial Officer
Pursuant to the requirements of the Securities Act of 1933, this pre-
effective amendment to the registration statement and post-effective amendment
has been signed below by the following persons in the capacities indicated, on
the 14th day of April, 1999.
<TABLE>
<CAPTION>
Signatures Title
---------- -----
<S> <C>
* Chairman, Director, President and Chief
______________________________________ Executive Officer
(George David)
/s/ David J. FitzPatrick Senior Vice President and Chief Financial
______________________________________ Officer
(David J. FitzPatrick)
/s/ Jay L. Haberland Vice President--Controller
______________________________________
</TABLE> (Jay L. Haberland)
<TABLE>
<S> <C>
*
______________________________________
(Antonia Handler Chayes)
*
______________________________________
(Charles W. Duncan, Jr.)
*
______________________________________
(Jean-Pierre Garnier)
*
______________________________________
(Pehr G. Gyllenhammar)
* Director
______________________________________
(Karl J. Krapek)
*
______________________________________
(Charles R. Lee)
*
______________________________________
(Robert H. Malott)
______________________________________
(Richard D. McCormick)
</TABLE>
II-4
<PAGE>
Signatures Title
---------- -----
*
______________________________________
(William J. Perry)
*
______________________________________
(Frank P. Popoff)
*
______________________________________
(Andre Villeneuve)
* Director
______________________________________
(Harold A. Wagner)
*
______________________________________
(Jacqueline G. Wexler)
*By /s/ William H. Trachsel
----------------------------------
(Attorney-in-Fact)
II-5
<PAGE>
Exhibit 1
United Technologies Corporation
Debt Securities, Debt Warrants,
Currency Warrants and Stock-Index Warrants
UNDERWRITING AGREEMENT
----------------------
[Date]
To the [Underwriters named in Schedule 1]
[Representative[s] named in Schedule I
of the Underwriters named in Schedule I]
Dear Sirs:
United Technologies Corporation, a Delaware corporation (the "Company"),
proposes to issue and sell from time to time (i) certain of its debt securities
("Debt Securities") and/or (ii) warrants to purchase Debt Securities ("Debt
Warrants" and the Debt Securities issuable upon exercise of Debt Warrants,
"Warrant Securities") and/or (iii) warrants to receive from the Company the cash
value in U.S. dollars of the right to purchase or sell foreign currencies or
units of two or more currencies ("Currency Warrants") and/or (iv) warrants
entitling the holders thereof to receive, upon exercise, an amount in cash
determined by reference to increases or decreases in the level of a specified
stock Index which may be based on U.S. or foreign stocks or combination thereof
("Stock-Index Warrants"), registered under the registration statement or
statements referred to in Section 1(a) (together, the "Securities"). The Debt
Securities will be issued under an Indenture, dated as of April 1, 1990, as
modified by the Trust Indenture Reform Act of 1990 (the "Indenture"), between
the Company and The Connecticut National Bank, Trustee, and the Debt Warrants,
the Currency Warrants and the Stock-Index Warrants will be issued under one or
more separate warrant agreements (each a "Warrant Agreement") between the
Company and one or more separate institutions, as warrant agent, each as
identified in the separate Warrant Agreement respecting the Debt Warrants, the
Currency Warrants or the Stock-index Warrants covered thereby (each a "Warrant
Agent"). The particular terms of any Issuance of Securities will be determined
at the time of offering. Debt Securities, Debt Warrants, Currency Warrants and
Stock-Index Warrants may be offered together or separately, and it offered
together, the Debt Warrants, Currency Warrants and Stock-Index Warrants my
detach from the Debt Securities after the time of offering. The Company intends
to enter into one or more Pricing Agreements (each a "Pricing Agreement" and
together the "Pricing Agreements") in the form of Annex I hereto, with such
additions and deletions as the parties thereto may determine, and, subject to
the terms and conditions stated herein and therein, to issue and sell to the
firms named in Schedule I to the applicable Pricing Agreement (such firms
constituting the "Underwriters" with respect to such Pricing Agreement and the
securities specified therein) the particular Securities specified in Schedule II
to such Pricing Agreement (with respect to each such Pricing Agreement, the
"Designated Securities"). Each Pricing Agreement shall constitute an agreement
by the Company and the Underwriters to be bound by all of the provisions of this
Underwriting Agreement.
1. Representations and Warranties of the Company. The Company represents and
warrants to, and agrees with, the Underwriters with respect to each offering of
Designated Securities that:
(a) One or more registration statements on Form S-3 in respect of the
Securities have been filed with the Securities and Exchange Commission (the
"Commission") and have become effective. Each such registration statement
(including the material incorporated therein by reference and all exhibits
thereto but excluding the Form T-1), as amended at the time of any Pricing
Agreement is hereinafter referred to, with respect to the transaction
<PAGE>
contemplated by such Pricing Agreement, as a "Registration Statement" and
collectively such registration statements are referred to as the
"Registration Statements". The prospectus then forming a part of the
Registration Statements or deemed to meet the requirements thereof (including
the material incorporated therein by reference), as then amended, and as
supplemented to reflect the terms of the Designated Securities and the terms
of offering thereof, and any other material reflected in such supplement, in
the form in which it is first filed, or mailed for filing with the Commission
pursuant to Rule 424 of the Securities Act of 1933, as amended (the "Act"),
including any documents incorporated by reference therein as of the date of
such filing or mailing, is hereinafter referred to as the "Prospectus" and
such supplement Is hereinafter referred to as the "Supplement".
(b) On its effective date and on the effective date of the most recent
post-effective amendment thereto, each registration statement relating to the
Securities (including the material Incorporated therein by reference)
conformed in all material respects with the requirements of the Act, the
Trust Indenture Act of 1939, as amended (the "Trust Indenture Act"), and the
rules and regulations of the Commission (the "Rules and Regulations"), and
did not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the
statements therein not misleading, and, on the date of each Pricing Agreement
and each time each Registration Statement is amended, each Registration
Statement as then amended, and, each time the Prospectus is amended, on the
date of each supplement thereto and on the date of the Supplement, the
Prospectus as then amended or supplemented, will conform in all material
respects with the requirements of the Act, the Trust Indenture Act and the
Rules and Regulations and will not include any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, except that the
foregoing does not apply to statements in or omissions from any such
documents based upon information furnished to the Company in writing by any
Underwriter expressly for use therein.
2. Purchase and Offering. (a) Particular sales of Designated Securities may
be made from time to time to the Underwriters of such Securities for whom the
firm or firms designated as representatives of the Underwriters of such
Securities in the Pricing Agreement relating thereto will act as
representatives, which may include all such Underwriters in the absence of a
syndicate (the "Representatives"). This Underwriting Agreement, alone, shall
not be construed as an obligation of the Company to sell any of the Securities
or as an obligation of any Underwriters to purchase any of the Securities. Such
obligation shall come into existence only upon execution, by the Company and the
Representatives named therein, of the Pricing Agreement with respect to the
Designated Securities specified therein. Each Pricing Agreement shall specify
the firms which will be Underwriters and their Representatives, the principal
amount and/or the number of the Securities to be purchased by each Underwriter,
the purchase price to be paid by the Underwriters, the initial public offering
price, the terms of the Designated Securities not already specified in the
Indenture, including, but not limited to, as applicable, currency in which
denominated and/or payable, interest rate, maturity, redemption provisions and
sinking fund requirements (if any), or not already specified in the Warrant
Agreement and whether any of the Designated Securities may be sold pursuant to
Delayed Delivery Contracts ("Delayed Delivery Contracts"). Each Pricing
Agreement shall also specify the date, time and manner of delivery and payment
for the Designated Securities. A Pricing Agreement shall be In the form of an
executed writing (which may be in counterparts), and may be evidenced by an
exchange of telegraphic communications or any other rapid transmission device
designed to produce a written record of
<PAGE>
communications transmitted. The obligations of the Underwriters under this
Agreement and each Pricing Agreement shall be several and not joint.
(b) Upon the execution of the Pricing Agreement applicable to any Designated
Securities and authorization by the Representatives of the release of such
Designated Securities, the several Underwriters propose to offer such Designated
Securities for sale upon the terms and conditions set forth in the Supplement
relating to such Designated Securities.
(c) Designated Securities to be purchased by each Underwriter pursuant to the
Pricing Agreement relating thereto, in definitive form to the extent practicable
(unless otherwise provided in the Pricing Agreement), and in such authorized
denominations and, if applicable, registered in such names as the
Representatives may request upon at least forty-eight hours' prior notice to the
Company, shall be delivered by or on behalf of the Company to the
Representatives for the account of such Underwriter, against payment by such
Underwriter or on its behalf of the purchase price therefor by certified or
official bank check or checks or otherwise as specified in such Pricing
Agreement, payable to the order of the Company in the funds specified in such
Pricing Agreement, all at the place and time and date specified in such Pricing
Agreement with respect to Designated Securities not being sold pursuant to
Delayed Delivery Contracts, or at such other place and time and date as the
Representatives and the Company may agree upon in writing, such time and date
being herein called the "Time of Delivery" for such Designated Securities.
3. Covenants of the Company. In connection with each offering of Designated
Securities, the Company covenants and agrees with the Underwriters:
(a) To make no further amendment or any supplement to any Registration
Statement or Prospectus after the date of the Pricing Agreement relating to
such Securities and prior to the Time of Delivery for such Securities which
shall be reasonably disapproved by the Representatives for such Securities
promptly after reasonable notice thereof; to advise the Representatives
promptly of any such amendment or supplement after such Time of Delivery and
furnish the Representatives with copies thereof and to file promptly all
reports and any definitive proxy or information statements required to be
filed by the Company with the Commission pursuant to Section 13(a) or (c), 14
or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") for so
long as the delivery of a prospectus is required in connection with the
offering or sale of such Securities, and during such same period to advise
the Representatives, promptly after it receives notice thereof, (i) of the
time when any amendment to any Registration Statement has become effective or
any supplement to the Prospectus or any amended Prospectus has been filed,
(ii) of the Issuance by the Commission of any stop order or of any order
preventing or suspending the use of any Prospectus, (iii) of the suspension
of the qualification of such Securities for offering or sale in any
jurisdiction, (iv) of the initiation or threatening of any proceeding for any
such purpose, or (v) of any request by the Commission for the amending or
supplementing of any Registration Statement or Prospectus or for additional
information; and in the event of the Issuance of any such stop order or of
any such order preventing or suspending the use of any Prospectus or
suspending any such qualification, to use promptly its best efforts to obtain
its withdrawal.
(b) Promptly from time to time to take such action as the Representatives
may reasonably request to qualify such Securities for offering and sale under
the securities laws of such jurisdictions as the Representatives may request
and to comply with such laws so as to permit the continuance of sales and
dealings therein in such jurisdictions for as long as
<PAGE>
may be necessary to complete the distribution of such Securities, provided
that in connection therewith the Company shall not be required to qualify as
a foreign corporation or to file a general consent to service of process in
any jurisdiction.
(c) To furnish the Underwriters with copies of the Prospectus in such
quantities as the Representatives may from time to time reasonably request,
and, if the delivery of a prospectus is required at any time prior to the
expiration of nine months after the date of the Pricing Agreement in
connection with the offering or sale of such Securities and if at such time
any event shall have occurred as a result of which the Prospectus as then
amended or supplemented would include an untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made when
such Prospectus Is delivered, not misleading, or, if for any other reason it
shall be necessary during such same period to amend or supplement the
Prospectus or to file under the Exchange Act any document incorporated by
reference in the Prospectus in order to comply with the Act or the Trust
Indenture Act, to notify the Representatives and upon their request to file
such document and to prepare and furnish without charge to each Underwriter
and to any dealer in securities as many copies as the Representatives may
from time to time reasonably request of an amended Prospectus or a supplement
to the Prospectus which will correct such statement or omission or effect
such compliance.
(d) To make generally available to its security holders as soon as
practicable, but in any event not later than eighteen months after the date
of each Pricing Agreement, an earnings statement of the Company and its
consolidated subsidiaries (which need not be audited) complying with Section
11(a) of the Act and the Rule and Regulations of the Commission thereunder
(including, at the option of the Company, Rule 158 of the Act).
(e) During the period beginning from the date of the Pricing Agreement
for such Designated Securities and continuing to and including the earlier of
(i) the termination of trading restrictions on such Designated Securities, of
which termination the Representatives agree to give the Company prompt notice
confirmed in writing, and (ii) the Time of Delivery for such Designated
Securities, not to offer, sell, contract to sell or otherwise dispose of any
debt securities, and, if the Designated Securities include Debt Warrants,
debt warrants to purchase debt securities, of the Company which mature more
than one year after such Time of Delivery and which are substantially similar
to such Designated Securities, and, if the Designated Securities include
Currency Warrants or Stock-Index Warrants, currency warrants which are
substantially similar to the Currency Warrants or stock-index warrants which
are substantially similar to the Stock-Index Warrants, respectively, in all
cases without the prior written consent of the Representatives, except
pursuant to arrangements of which the Representatives have been advised by
the Company prior to the time of execution of such Pricing Agreement, which
advice is confirmed in writing to the Representatives by the end of the
business day following the date of such Pricing Agreement.
(f) To pay all expenses incident to the performance of the Company's
obligations under this Agreement, and to reimburse the Underwriters for any
expenses (including fees and disbursements of counsel) incurred in connection
with qualifications of the Designated Securities for sale and determination
of their eligibility for investment under the laws of such jurisdictions as
the Representatives designate and the printing of memoranda relating thereto
and for any fees charged by investment rating agencies for rating of the
Designated Securities.
<PAGE>
4. Conditions. The obligations of the Underwriters of any Designated
Securities hereunder shall be subject, in the discretion of the Representatives,
to the accuracy of the representations and warranties on the part of the Company
herein, 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
Statements shall have been issued and no proceeding for that purpose shall
have been initiated or threatened by the Commission.
(b) Counsel for the Underwriters, Sullivan & Cromwell, shall have
furnished to the Representatives an opinion or opinions, dated the Time of
Delivery of such Designated Securities, as to the incorporation of the
Company, the Designated Securities (including any Warrant Securities), the
Indenture and any Warrant Agreement, the Registration Statements and
Prospectus (and any amendments or supplements thereto) and such other matters
as the Representatives may reasonably request, in form and substance
reasonably satisfactory to them.
(c) Counsel for the company, Cleary, Gottlieb, Steen & Hamilton, shall
have furnished to the Representatives an opinion, dated the Time of Delivery
of such Designated Securities, as to the incorporation of the Company, the
Designated Securities (including any Warrant Securities), the Indenture and
any Warrant Agreement, the Registration Statements and Prospectus (and any
amendments or supplements thereto) and such other matters as the
Representatives may reasonably request, in form and substance reasonably
satisfactory to them.
(d) The independent accountants of the Company who have certified the
consolidated financial statements of the Company and its subsidiaries
included or incorporated by reference in the Registration Statements shall
have furnished to the Representatives a letter or letters, dated the Time of
Delivery of such Designated Securities, in form and substance satisfactory to
the Representatives, to the effect set forth in Exhibit A hereto, and as to
such other matters as the Representatives and the Company may have agreed
upon at or prior to the execution of the Pricing Agreement.
(e) Since the respective dates as of which information is given in the
Prospectus there shall not have been any change in the financial position,
shareowners' equity, results of operations, business, operations or
properties of the Company and its subsidiaries, otherwise than as set forth
or contemplated in the Prospectus, the effect of which is, when viewed in
relation to the Company and its subsidiaries taken as a whole, in the
reasonable judgment of the Representatives so material and adverse as to make
it impracticable or inadvisable to proceed with the public offering or the
delivery of the Designated Securities on the terms and in the manner
contemplated in the Prospectus.
(f) Subsequent to the date of the Pricing Agreement relating to the
Designated Securities, no downgrading shall have occurred in the rating
accorded to the Company's senior debt securities by Moody's Investors
Service, Inc. or Standard & Poor's Corporation.
(g) Subsequent to the date of the Pricing Agreement relating to the
Designated Securities, there shall not have occurred any of the following:
(i) trading in the Company's Common Stock shall have been suspended by the
Commission or the New York Stock Exchange or trading in securities generally
on the New York Stock Exchange shall have been suspended or limited or
minimum prices shall have been established on such Exchange, (ii) a banking
moratorium shall have been declared either by Federal or New York State
authorities, or (iii) there shall have occurred any outbreak or material
escalation of hostilities or other calamity or crisis if the effect of any
such event described in this clause (iii) on the financial markets of the
United States, in the reasonable judgment of the
<PAGE>
Representatives, makes it impracticable or inadvisable to proceed with the
public offering or the delivery of the Designated Securities on the terms and
in the manner contemplated in the Prospectus.
(h) The Company shall have furnished or caused to be furnished to the
Representatives at the Time of Delivery for the Designated Securities
certificates of officers of the Company satisfactory to the Representatives
as to the accuracy of the representations and warranties of the Company
herein at and as of such Time of Delivery, as to the performance by the
Company of all of its obligations hereunder to be performed at or prior to
such Time of Delivery, and as to such other matters as the Representatives
may reasonably request.
(i) If the Designated Securities include Currency Warrants or Stock-Index
Warrants, such warrants shall have been duly listed, subject to notice of
issuance, on a "national securities exchange" as such term is defined in the
Securities Exchange Act of 1934, as amended.
5. Indemnification and Contribution. (a) The Company will indemnify and
hold harmless each Underwriter against any losses, claims, damages or
liabilities, joint or several, to which such Underwriter may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement, the Prospectus or any amendment or supplement thereto,
or any related preliminary prospectus supplement (or contained in any
Registration Statement after it first become effective but prior to the Pricing
Agreement or in any prospectus forming a part thereof during such period), 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 will reimburse each Underwriter for any
legal or other expenses reasonably incurred by such Underwriter in connection
with investigating or defending any such action or claim; provided, however,
that the Company shall 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 an untrue
statement or alleged untrue statement or omission or alleged omission made in
any of such documents in reliance upon and in conformity with written
information furnished to the Company by any Underwriter, directly or through the
Representatives, expressly for use therein; and provided, further, that the
Company shall not be liable to any Underwriter under the indemnity agreement in
this subsection (a) to the extent that any such loss, claim, damage or liability
of such Underwriter results from the fact that such Underwriter sold Securities
to a person to whom there was not sent or given, at or prior to the written
confirmation of such sale, a copy of the Prospectus or the Prospectus as then
amended or supplemented (excluding documents incorporated by reference) 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, any such amendment or
supplement thereto or any such other document was corrected in the Prospectus or
the Prospectus as then amended or supplemented if the Company has furnished
prior to such confirmation sufficient copies thereof to such Underwriter.
(b) Each Underwriter will indemnify and hold harmless the Company against any
losses, claims, damages or liabilities to which the Company may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement, the Prospectus or any amendment or supplement thereto,
or any related preliminary prospectus supplement, 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
<PAGE>
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such
Underwriter, directly or through the Representatives, expressly for use therein;
and will reimburse the Company for any legal or other expenses reasonably
incurred by the Company in connection with investigating or defending any such
action or claim.
(c) Promptly after receipt by an indemnified party under subsection (a) or
(b) above of notice of any claim or of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify the indemnifying party in
writing thereof. The omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any indemnified party,
provided that, in the case of any such omission relating to the commencement of
an action, such omission shall relieve the indemnifying party of liability under
such subsection, in case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall 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 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 or
other indemnified parties, or both, 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 or 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 such subsection for any legal
or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof (other than reasonable costs of investigation conducted
at the request of such indemnifying party) 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 such indemnifying party,
representing the indemnified parties under such subsection 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 5 shall be
unavailable to hold harmless an indemnified party under subsection (a) or (b)
above in respect of any losses, claims, damages or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as in appropriate to reflect the relative benefits received
by the Company on
<PAGE>
the one hand and the Underwriters on the other from the offering of the
Designated Securities and also the relative fault of the Company on the one hand
and the Underwriters on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), 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 Designated Securities shall
be deemed to be in the same proportion as the total net proceeds from the
offering of such Securities (before deducting expenses) received by the Company
bears to the total underwriting discounts and commissions received by the
Underwriters in respect thereof, in each case as set forth on the cover page of
the Prospectus. The relative fault shall be determined by reference to, among
other things, whether the indemnified party failed to give the notice required
under subsection (c) above, including the consequences of such failure, and
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 on the one hand or the Underwriters on the other and the
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission, of the Company on the one hand and the
Underwriters, directly or through the Representatives, on the other hand. With
respect to any Underwriter, such relative fault shall also be determined by
reference to the extent (if any) to which such losses, claims, damages or
liabilities (or actions in respect thereof) result from the fact that such
Underwriter sold Securities to a person to whom there was not sent or given, at
or prior to the written confirmation of such sale, a copy of the Prospectus or
the Prospectus as then amended or supplemented (excluding documents incorporated
by reference) if the Company has furnished prior to such confirmation copies
thereof to such Underwriter.
The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by
per-capita allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this subsection (d). The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
in this subsection (d) shall be deemed to include 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
subsection (d), no Underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the applicable Designated
Securities, underwritten by it and distributed to the public 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 obligations of the Underwriters in this subsection (d) to
contribute are several in proportion to their respective underwriting
obligations and not joint.
(e) The obligations of the Company under this Section 5 shall be in addition
to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act, and the obligations of the Underwriters under
this Section 5 shall be in addition to any liability which the respective
Underwriters may otherwise have and shall extend, upon the same terms and
conditions, to each director of the Company, to each officer of the Company who
signs the Registration Statement and to each person, if any, who controls the
Company within the meaning of the Act.
6. Default of Underwriters. (a) If any Underwriter shall default in its
obligation to purchase the Designated Securities which it has agreed to purchase
under the Pricing Agreement relating to such Designated Securities, the
Representatives may in their discretion arrange for themselves or another party
or other parties to purchase such Designated Securities on the terms contained
<PAGE>
herein. If within thirty-six hours after such default by any Underwriter the
Representatives do not arrange for the purchase of such Designated Securities,
then the Company shall be entitled to a further period of thirty-six hours
within which to procure another party or other parties satisfactory to the
Representatives to purchase such Designated Securities on such terms. In the
event that, within the respective prescribed periods, the Representatives notify
the Company that they have so arranged for the purchase of such Designated
Securities, or the Company notifies the Representatives that it has so arranged
for the purchase of such Designated Securities, the Representatives or the
Company shall have the right to postpone the Time of Delivery for such
Designated Securities for a period of not more than seven days, in order to
effect whatever changes may thereby be made necessary in the Registration
Statements or the Prospectus, or in any other documents or arrangements, and the
Company agrees to file promptly any amendments or supplements to the
Registration Statements or the Prospectus which in the opinion of the
Representatives may thereby be made necessary. The term "Underwriter" as used in
the Agreement shall include any person substituted under this Section with like
effect as if such person had originally been a party to the Pricing Agreement
with respect to such Designated Securities.
(b) If, after giving effect to any arrangements for the purchase of the
Designated Securities of a defaulting Underwriter or Underwriters by the
Representatives or the Company, or both, as provided in subsection (a) above,
the aggregate principal amount of such Designated Securities which remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of
the Designated Securities, then the Company shall have the right to require each
non-defaulting Underwriter to purchase the principal amount of Designated
Securities which such Underwriter agreed to purchase under the Pricing Agreement
relating to such Designated Securities and, in addition, to require each non-
defaulting Underwriter to purchase its pro rata share (based on the principal
amount of Designated Securities which such Underwriter agreed to purchase under
such Pricing Agreement) of the Designated Securities of such defaulting
Underwriter or Underwriters for which such arrangements have not been made; but
nothing herein shall relieve a defaulting Underwriter from liability for its
default. As used in this subsection (b) and in subsection (c) below of this
Section 6, the "aggregate principal amount" of Designated Securities shall mean
the aggregate principal amount of the Designated Securities that are Debt
Securities plus the public offering price, if any, of any Debt Warrants,
Currency Warrants or Stock-Index Warrants included in the Designated Securities.
(c) If, after giving effect to any arrangements for the purchase of the
Designated Securities of a defaulting Underwriter or Underwriters by the
Representatives or the Company, or both, as provided in subsection (a) above,
the aggregate principal amount of Designated Securities which remains
unpurchased exceeds one-eleventh of the aggregate principal amount of the
Designated Securities, or if the Company shall not exercise the right described
in subsection (b) above to require non-defaulting Underwriters to purchase
Designated Securities of a defaulting Underwriter or Underwriters, then the
Pricing Agreement relating to such Designated Securities shall thereupon
terminate, without liability on the party of any non-defaulting Underwriter or
the Company, except for the expenses to be borne by the Company and the
Underwriters provided in Section 3(f) hereof and the indemnity and contribution
agreements in Section 5 hereof; but nothing herein shall relieve a defaulting
Underwriter from liability for its default.
7. Survival of Indemnities, Representations, Etc. The respective
indemnities, agreements, representations, warranties and other statements of the
Company and the several Underwriters, as set forth in this Agreement or made by
or on behalf of them, respectively, pursuant to this Agreement, shall remain in
full force and effect, regardless of any investigation (or any statement
<PAGE>
as to the results thereof) made by or on behalf of any Underwriter or any
controlling person of any Underwriter, or the Company, or any officer or
director or controlling person of the Company, and shall survive delivery of and
payment for the Securities.
8. Reimbursement of Underwriters' Expenses. If any Pricing Agreement shall
be terminated pursuant to Section 6 hereof or if the Designated Securities are
not delivered by or on behalf of the Company because of any of the events
referred to in Section 4(g), then the Company shall not then be under any
liability to any Underwriter with respect to Designated Securities covered by
such Pricing Agreement except as provided in Section 3(f) and Section 5 hereof;
but, if for any other reason Designated Securities are not delivered by or on
behalf of the Company as provided herein, the Company will reimburse the
Underwriters through the Representatives for all out-of-pocket expenses approved
in writing by the Representatives, including fees and disbursements of counsel,
reasonably incurred by the Underwriters in making preparations for the purchase,
sale and delivery of such Designated Securities, but the Company shall then be
under no further liability to any Underwriter with respect to such Designated
Securities except as provided in Section 3(f) and Section 5 hereof.
9. Representatives; Notices. In all dealings hereunder, the Representatives
of the Underwriters of Designated Securities shall act on behalf of each of such
Underwriters, and the parties hereto shall be entitled to act and rely upon any
statement, request, notice, waiver or agreement on behalf of any Underwriter
made or given by such Representatives.
All statements, requests, notices and agreements hereunder shall be in
writing or by telegram if promptly confirmed in writing and if to the
Underwriters shall be sufficient in all respects, if delivered or sent by
registered mail to the address of the Representatives as set forth in the
Pricing Agreement; and if to the Company shall be sufficient in all respects if
delivered or sent by registered mail to the address of the Company set forth in
the Registration Statement: Attention: Secretary; provided, however, that any
notice to any Underwriter pursuant to Section 5(c) hereof shall be delivered or
sent by registered mail to such Underwriter at its address set forth in the
applicable Pricing Agreement or, if not so set forth, in its Underwriters'
Questionnaire delivered to the Company.
10. Binding Effect; Successors. This Agreement and each Pricing Agreement
shall be binding upon, and inure solely to the benefit of, the Underwriters, the
Company and, to the extent provided in Section 5 and Section 7 hereof, the
officers and directors of the Company and each person who controls the Company
or any Underwriter, and their respective heirs, executors, administrators,
successors and assigns, and no other person shall acquire or have any right
under or by virtue of this Agreement or any such Pricing Agreement. No purchaser
of any of the Securities from any Underwriter shall be deemed a successor or
assign by reason merely of such purchase.
11. Applicable Law. This Agreement and each Pricing Agreement shall be
governed by and construed in accordance with the laws of the State of New York.
12. Counterparts. This Agreement and each Pricing Agreement may be executed
by any one or more of the parties hereto and thereto in any number of
counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together constitute one and the same instrument.
If the foregoing is in accordance with your understanding, please sign and
return to us two counterparts hereof.
<PAGE>
Very truly yours,
United Technologies Corporation
By:
Title:
Accepted as of the date first above written:
[Insert signature block[s] for the
Representative[s], acting on behalf of the
Underwriters, or for each Underwriter if no
syndicate]
<PAGE>
EXHIBIT A
Matters to be Covered by Letter of
Independent Accountants to the Company
and the Underwriters
This letter will state that they have audited the consolidated financial
statements and financial statement schedules of the Company and its subsidiaries
included or incorporated by reference in the Company's Annual Report on Form 10-
K for the latest fiscal year and have issued their opinions thereon for the
periods specified in such opinions, which have also been included or
incorporated by reference in such Annual Report, and have made a review of the
interim financial information of the Company and its subsidiaries for the
periods specified in such letter in accordance with standards established by the
American Institute of Certified Public Accountants, as indicated in their report
or reports to the Board of Directors of the Company specified in such letter.
This letter shall further state:
(i) They are independent accountants with respect to the Company and its
subsidiaries within the meaning of the Act and the applicable published rules
and regulations thereunder;
(ii) In their opinion, the consolidated financial statements and
schedules audited by them and included or incorporated by reference in the
Registration Statements or the Prospectus comply as to form in all material
respects with the applicable accounting requirements of the Act or the
Exchange Act, as applicable, and the published rules and regulations
thereunder with respect to registration statements on Form S-3;
(iii) With respect to any pro forma data included or incorporated by
reference in the Registration Statements or Prospectus, they have read such
data, have compared the historical amounts presented in connection therewith
with corresponding amounts appearing in the consolidated audited financial
statements included or incorporated by reference in the Company's Annual
Report on Form 10-K for the most recent fiscal year and found them to be in
agreement and have recalculated the mathematical accuracy of such pro forma
data and, in the event they have been engaged by the Company to make and have
made a review or examination of such pro forma data in accordance with
standards established by the American Institute of Certified Public
Accountants, they will refer to such review or examination in their letter;
(iv) On the basis of limited procedures (but not an audit in accordance
with generally accepted auditing standards), performed through a specified
date not more than five days prior to the date of delivery of such letter,
consisting of a reading of the latest available unaudited consolidated
interim financial information of the Company and its subsidiaries, a reading
of the minutes of the meetings of the shareowners and the Board or Directors
(and the Executive Committee, the Audit Review Committee, the Pension
Committee and the Special Securities Committee thereof) of the Company since
the date of the latest audited financial statements included or incorporated
by reference in the Registration Statements or the Prospectus, inquiries of
officials of the Company and its subsidiaries responsible for financial and
accounting matters regarding the specific items as to which statements are
requested below and such other inquiries and procedures as may be specified
in such letter, nothing came to their attention that caused them to believe
that:
<PAGE>
(A) the unaudited information with respect to the consolidated results
of operations and financial position for the five years ended the most
recent fiscal year end included in the Prospectus, and included or
incorporated by reference in Item 6 in the Company's Annual Report on Form
10-K under the caption "Selected Financial Data", does not agree with the
corresponding amounts (if they appear therein and after restatement where
applicable) in the audited consolidated financial statements for the years
ended included in the Company's Annual Reports on Form 10-K for such
fiscal years, or with information derived from accounting records of the
Company, as the case may be;
(B) the unaudited condensed consolidated income statements, condensed
consolidated balance sheets and condensed consolidated statements of cash
flows included in the Company's Quarterly Reports on Form 10-Q
incorporated by reference in the Registration Statement do not comply as
to form in all material respects with the applicable accounting
requirements of the Exchange Act as it applies to Form 10-Q and the
published rules and regulations thereunder or are not stated on a basis
substantially consistent with that of the audited consolidated statements
of income, consolidated balance sheets and consolidated statements of cash
flows included or incorporated by reference in the Company's most recent
Annual Report on Form 10-K;
(C) any other unaudited financial data included or incorporated by
reference in the Prospectus do not agree with the corresponding items in
the unaudited condensed consolidated financial statements from which such
data and items were derived [If the capsule information meets the minimum
disclosure requirements of APB Opinion No. 28, paragraph 30, insert--"or
are not stated on a basis substantially consistent with that of the
audited financial statements incorporated by reference in the Registration
Statements"], or that any such unaudited data and items, and the unaudited
condensed consolidated financial statements from which such data were
derived, were not determined on a basis substantially consistent with the
basis for the corresponding amounts in the audited consolidated financial
statements included or incorporated by reference in the Company's Annual
Report on Form 10-K for the most recent fiscal year;
(D) the unaudited financial statements which were not included in the
Prospectus but from which were derived the unaudited condensed financial
statements referred to in Clause (B) and any unaudited income statement
data and balance sheet items included in the Prospectus and referred to in
Clause (C) were not determined on a basis substantially consistent with
the basis for the audited financial statements included or incorporated by
reference in the Company's Annual Report on Form 10-K for the most recent
fiscal year;
(E) based on the procedures described in clause (iii), the pro forma
data included or incorporated by reference in the Registration Statements
or Prospectus have not been properly compiled on the pro forma bases
described therein;
(F) at the date of the latest available interim consolidated financial
information and as of a specified date not more than five days prior to
the date of delivery of such letter, there have been any changes in
consolidated capital stock or any increase in consolidated long-term debt
or consolidated short-term borrowings or any decreases in consolidated
working capital or shareowners' equity of the Company and its subsidiaries
<PAGE>
in each case as compared with amounts shown in the most recent balance
sheet included or incorporated by reference in the Registration Statement
or the Prospectus, except in each case for changes , decreases or
increases which the Registration Statements or the Prospectus discloses
have occurred or may occur or which are described in such letter, in which
case the Company shall deliver an explanation as to the significance
thereof unless said explanation is not deemed necessary by the
Representatives; and
(G) for the period from the date of the latest financial statements
included or incorporated by reference in the Registration Statement to
such specified date there were any decreases in the Company's consolidated
sales, income from continuing operations before income taxes, income from
continuing operations, net income or the fully diluted per share amounts
of consolidated income from continuing operations or net income, in each
case as compared with the comparable period of the preceding year and with
the period of corresponding length beginning on the first date of the next
preceding full fiscal quarter, except in each case for decreases which the
Registration Statements or the Prospectus discloses have occurred or may
occur or which are described in such letter, in which case the Company
shall deliver an explanation as to the significance thereof unless said
explanation is not deemed necessary by the Representatives; and
(v) In addition to the audit referred to in their report included in the
Registration Statements and the Prospectus and the limited procedures,
inspection of minute books, inquiries and other procedures referred to in
subparagraph (iv) above, they have carried out certain specified procedures,
not constituting an audit in accordance with generally accepted auditing
standards, with respect to certain amounts, percentages and financial
information, specified by the Representatives, which are derived form the
general accounting records of the Company and its subsidiaries which are
subject to the system of internal controls, which appear in the Prospectus
(excluding documents incorporated by reference), or in Part II of, or in
exhibits and schedules to, the Registration Statements specified by the
Representatives or in documents incorporated by reference in the Prospectus
specified by the Representatives, and have compared certain of such amounts,
percentages and financial information with the accounting records of the
Company and its subsidiaries which are subject to the system of internal
controls and have found them to be in agreement.
<PAGE>
ANNEX I
PRICING AGREEMENT
[Date]
To the [Underwriter[s] named in Schedule I]
[Representative[s] named in Schedule II
of the Underwriters named in Schedule I]
Dear Sirs:
United Technologies Corporation (the "Company") proposes subject to the terms
and conditions stated herein and in the Underwriting Agreement, dated [date]
(the "Underwriting Agreement"), between the Company on the one hand and [
] on the other hand, to issue and sell to the Underwriters named in Schedule I
hereto (the "Underwriters") the Securities specified in Schedule II hereto (the
"Designated Securities"). Each of the provisions of the Underwriting Agreement
is incorporated herein by reference in its entirety, and shall be deemed to be a
part of this Agreement to the same extent as if such provision had been set
forth in full herein; and each of the representations and warranties set forth
therein shall be deemed to have been made at and as of the date of this Pricing
Agreement. Each reference to the Representatives herein and in the provisions of
the Underwriting Agreement so incorporated by reference shall be deemed to refer
to you. Unless otherwise defined herein, terms defined in the Underwriting
Agreement are used herein as therein defined.
The Company has delivered to you for each of the Underwriters copies of the
Registration Statements and Prospectus, including the documents incorporated
therein by reference. The Prospectus (including the Supplement relating to the
Designated Securities) in the form heretofore delivered to you is now proposed
to be filed, or mailed for filing, with the Commission.
Subject to the terms and conditions set forth herein and in the Underwriting
Agreement, the Company agrees to issue and sell to each of the Underwriters, and
each of the Underwriters agrees, severally and not jointly, to purchase from the
Company, at the time and place and at the purchase price to the Underwriters set
forth in Schedule II hereto, the amount or principal amount, as applicable, of
Designated Securities set forth opposite the name of such Underwriter in
Schedule I hereto.
[The Company authorizes the Underwriters to solicit offers to purchase
Designated Securities from the Company pursuant to Delayed Delivery Contracts
substantially in the form of Schedule III hereto but with such changes therein
as the Company may approve. The Underwriters will endeavor to make such
arrangements and, as compensation therefor, the Company will pay to the
Representatives, for the account of the Underwriters, at the Time of Delivery a
commission in the amount set forth in Schedule II. Delayed Delivery Contracts
are to be with purchasers of the types approved by the Company and set forth in
the Prospectus and subject to other conditions set forth in such Delayed
Delivery Contracts. Except as the Company may otherwise agree, each Delayed
Delivery Contract must be for the minimum principal amount set forth in Schedule
II hereto and the aggregate principal amount of all Delayed Delivery
<PAGE>
Contracts may not exceed the amount set forth in such Schedule II. The
Underwriters will not have any responsibility in respect of the validity or
performance of any Delayed Delivery Contracts.]
[If the Company executes and delivers Delayed Delivery Contracts, the
Securities subject to such contracts shall be deducted from the Designated
Securities to be purchased by the several Underwriters and the aggregate
principal amount of Designated Securities to be purchased by each Underwriter
shall be reduced pro rata in proportion to the principal amount of Designated
Securities set forth opposite each Underwriter's name in Schedule I hereto,
except to the extent that the Representatives determine that such reduction
shall be otherwise and so advise the Company in writing; provided, however, that
the total principal amount of Designated Securities to be purchased by all
Underwriters shall be the total principal amount of Designated Securities set
forth in Schedule I hereto less the principal amount of Designated Securities
covered by Delayed Delivery Contracts. As used in this paragraph and in the
immediately preceding paragraph, the "aggregate principal amount" or "total
amount" of Designated Securities shall mean the aggregate principal amount of
the Designated Securities that are Debt Securities plus the public offering
price, if any, of any Debt Warrants, Currency Warrants or Stock-Index Warrants
included in the Designated Securities.]
If the foregoing is in accordance with your understanding, please sign and
return to us two counterparts hereof, and upon acceptance hereof by you, on
behalf of each of the Underwriters, this letter and such acceptance hereof,
including the provisions of the Underwriting Agreement incorporated herein by
reference, shall constitute a binding agreement between each of the Underwriters
and the Company. It is understood that your acceptance of this letter on behalf
of each of the Underwriters is or will be pursuant to authority granted to you
by such Underwriter.
Very truly yours,
United Technologies Corporation
By:
Title:
Accepted as of the date hereof:
[Insert signature block[s] for the
Representative[s], acting on behalf of the
Underwriters, or for each Underwriter if no
syndicate.]
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
<S> <C> <C>
Underwriters Principal Amount Number of
of Designated Designated
Securities [that Securities
are Debt that are
Securities] to Debt Warrants
be Purchased Currency Warrants
or Stock-Index
Warrants
to be Purchased]
[Names of Underwriters] [$]
Total [$]
</TABLE>
<PAGE>
SCHEDULE II
[Debt Securities]
[Warrant Securities]
Title of Designated Securities:
[. .]% [Floating Rate] [Zero Coupon] [Notes] [Debentures] due . . . . . . . .
Aggregate Principal Amount:
[$]. . . . . . . . . . . . . . . .
Price to Public:
. .% of the principal amount of the Designated Securities, plus accrued
interest from . . . . . . . to the Time of Delivery [and accrued
amortization, if any, from . . . . . . . to the Time of Delivery]
Purchase Price by Underwriters:
. .% of the principal amount of the Designated Securities, plus accrued
interest from . . . . . . . to the Time of Delivery [and accrued
amortization, if any, from . . . . . . . to the Time of Delivery]
Indenture:
Indenture, dated as of April 1, 1990, between the Company and The Connecticut
National Bank, Trustee, as modified by the Trust Indenture Reform Act of 1990
Maturity:
. . . . . . . . . . . . . . . . . . . . . .
Interest Rate:
[ . . ]% [Zero Coupon] [See Floating Rate Provisions] [See Event Risk
Provisions]
Interest Payment Dates:
[months and dates]
Redemption Provisions:
[No provisions for redemption]
[The Designated Securities may be redeemed [otherwise than through the
sinking fund,] in whole or in part at the option of the Company, in the
amount of [$]. . . . . . . . . .or an integral multiple thereof, ]
[on or after . . . . . . . . . . . . . . . at the following redemption
prices (expressed in percentages of principal amount). If redeemed on or
before . . . . . . . . . ., . . .%, and if] redeemed during the 12-month
period beginning . . . . . . . . . . . . . . .
Year Redemption Price
<PAGE>
. . . . . . . . . . and thereafter at 100% of their principal amount,
together in each case with accrued interest to the redemption date.]
[on any interest payment date falling on or after . . . . . . . . . . . . . .
. . . . ., at the election of the Company, at a redemption price equal to the
principal amount thereof, plus accrued interest to the date of redemption.]
[Other possible redemption provisions, such as mandatory redemption upon
occurrence of certain events or redemption for changes in tax law.]
Sinking Fund Provisions:
[No sinking fund provisions]
[The Designated Securities are entitled to the benefit of a sinking fund to
retire [$]. . . . . . . . . principal amount of Designated Securities on . .
. . . . . . . . in each of the years . . . . . . . through . . . . . . . at
100% for their principal amount plus accrued interest] [, together with
[cumulative] [noncumulative] redemptions at the option of the Company to
retire an additional [$] . . . . . . . principal amount of Designated
Securities in the years . . . . . . . through . . . . . . . at 100% of their
principal amount plus accrued interest.]
[If Securities are extendable debt Securities, insert--
Extendable Provisions:
Securities are repayable on . . . . . . . . . . . ., . . . . . . .
[[insert date and years,] at the option of the holder, at their principal
amount with accrued interest. Initial annual interest rate will be . . .%,
and thereafter annual interest rate will be adjusted on . . . . . . ., . . .
. and . . . . . . to a rate not less than . . . . . .% of the effective
annual interest rate on U.S. Treasury obligations with . . . .-year
maturities as of the [insert date 15 days prior to maturity date] prior to
such [insert maturity date].]
[If Securities are Floating Rate debt Securities, insert--
Floating Rate Provisions:
Initial annual interest rate will be . . . .% through . . . . . . . . .
[and thereafter will be adjusted [monthly] [on each . . . . . . . . . , . . .
. . . . . . ., . . . . . . . and . . . . . . .] [to an annual rate of . . .
.% above the average rate for . . . . . . . . . .-year [month] [securities]
[certificates of deposit] by . . . . . . . . . . and . . . . . . . . . . .
[insert names of banks].] [and the annual interest rate [thereafter] [from .
. . . . . . through . . . . . . .] will be the interest yield equivalent of
the weekly average per annum market discount rate for . . . . . . . .-month
Treasury bills plus . . . .% of Interest Differential (the excess, if any, of
(i) then current weekly average per annum secondary market yield for . . . .
. . .-month certificates of deposit over (ii) then current interest yield
equivalent of the weekly average per annum market discount rate for . . . .
. . . .-month Treasury bills]; [from . . . . . . . . and thereafter the rate
will be the then current interest yield equivalent plus . . . .% of Interest
Differential].]
Issuable in temporary global form: [Yes] [No]
Issuable in permanent global form: [Yes] [No]
<PAGE>
Debt Warrants
Number of Debt Warrants to be issued:
Warrant Agreement:
Form of Debt Warrants: [Registered] [Bearer]
Issuable jointly with other Securities: [Yes] [No]
[Number of Debt Warranties issued with each........amount or $........
principal amount of other Securities]
[Detachable Date:]
Date from which Debt Warrants are exercisable:
Date on which Debt Warrants expire:
Exercise price(s) of Debt Warrants:
Public offering price: $. . . . . . . .
Purchase price: $. . . . . . . .
Title and terms of Warrant Securities: As described above
Principal Amount of Warrant Securities purchasable upon exercise of one Warrant:
Currency Warrants
Title of Currency Warrants: [ Currency [Call] [Put] Warrants ]
Number of Currency Warrants to be issued:
Base Currency:
Warrant Agreement:
Warrant Agent:
Form of Currency Warrants: [Registered] [Bearer] [Book-entry form, represented
by single global Currency Warrant Certificate]
Issuable jointly with other Securities: [Yes] [No]
[Number of Currency Warrants issued with each amount of $........
principal amount of other Securities]
<PAGE>
[Detachable Date:]
Date from which Currency Warrants are exercisable:
Date on which Currency Warrants expire:
Strike Price of Currency Warrants:
Formula for Determining Cash Settlement Value:
Automatic Exercise:
Minimum Number of Currency Warrants which can be Exercised:
Listing:
Public offering price: $. . . . . . . .
Purchase price: $. . . . . . . .
Stock-Index Warrants
Title of Stock-Index Warrants: [ Stock-Index [Call] [Put] Warrants ]
Number of Stock-Index Warrants to be issued:
Stock Index:
Warrant Agreement:
Warrant Agent:
Form of Stock-Index Warrants: [Registered] [Bearer] [Book-entry form,
represented by single global Stock-Index Warrant Certificate]
Issuable jointly with other Securities: [Yes] [No]
[Number of Stock-Index Warrants issued with each amount or $........
principal amount of other Securities]
[Detachable Date:]
Date from which Stock-Index Warrants are exercisable:
Date on which Stock-Index Warrants expire:
Exercise Price of Stock-Index Warrants:
Formula for Determining Stock-Index Cash Settlement Value:
<PAGE>
Automatic Exercise:
Minimum/Maximum number of Stock-Index Warrants which can be Exercised:
Listing:
Public offering price: $. . . . . . . .
Purchase price: $. . . . . . . .
Time of Delivery:
. . . . . . . . . . . . . . . . . . . .
Closing Location:
. . . . . . . . . . . . . . . . . . . .
Funds in which Underwriters to make payment:
. . . . . . . . . . . . . . . . . . . .
Delayed Delivery:
[None]
[Underwriters' commission shall be . . . .% of the principal amount of
Designated Securities for which Delayed Delivery Contracts have been entered
into and the check given in payment of such commission shall be drawn to the
order of . . . . . . . .]
[Maximum aggregate principal amount of Designated Securities to be offered
and sold pursuant to Delayed Delivery Contracts: [$] . . . . . . . . ]
[Minimum principal amount of each Delayed Delivery Contract: [$] . . . . . .
. . ]
Names and addresses of Representatives:
Designated Representatives:
<PAGE>
Address for Notices, etc.:
[Additional Comfort Procedures: Identify any items being specified by
Representatives for comfort as contemplated by
paragraph (v) of Exhibit A to the Underwriting
Agreement.]
[Other Terms, including application of defeasance and/or covenant defeasance]*
- --------------------------
* A description of particular tax, accounting or other unusual features of the
Securities should be set forth, or referenced to an attached and accompanying
description, if necessary to the parties' understanding of the transaction
contemplated. Such a description might appropriately be in the form in which
such features will be described in the Prospectus, as supplemented, for the
offering.
Any additional terms and conditions appropriate to an offering of Securities
denominated or payable in or indexed to a currency, currencies, currency unit or
composite currency other than United States dollars should also be set forth.
<PAGE>
SCHEDULE III
Delayed Delivery Contract
United Technologies Corporation
c/o: [Date]
Attention:
Dear Sirs:
The undersigned hereby agrees to purchase from Untied Technologies
Corporation (hereinafter called the "Company"), and the Company agrees to sell
to the undersigned [[$]
principal amount] [number] of the Company's [Title of Designated Securities]
(hereinafter called the "Designated Securities"), offered by the Company's
Prospectus dated , 19 [as amended or supplemented],
receipt of a copy of which is hereby acknowledged, at a purchase price of [ %
of the principal amount thereof, plus accrued interest from the date from which
interest accrues as set forth below] [ per Debt Warrant, Currency
Warrant or Stock-Index Warrant], and on the further terms and conditions set
forth in this contract.
[The undersigned will purchase the Designated Securities from the Company on
, 19 (the "Delivery Date") [and interest on the Designated Securities so
purchased will accrue from , 19 .]]
[The undersigned will purchase the Designated Securities from the Company on
the delivery date or dates and in the principal amount or amounts set forth
below:
<TABLE>
<CAPTION>
Delivery Date Principal Amount Date from Which Number of
Interest Accrues Debt Warrants,
Currency
Warrants or
Stock-Index
Warrants
<S> <C> <C> <C>
, 19 [$] , 19
, 19 [$] , 19
</TABLE>
Each such date on which Designated Securities are to be purchased hereunder is
hereinafter referred to as a "Delivery Date".]
Payment for the Designated Securities which the undersigned has agreed to
purchase on [the] [each] Delivery Date shall be made to the Company or its order
by certified or official bank check in funds at the office of
, ,
, or by wire transfer to a bank account specified by the Company, on [the][such]
Delivery Date upon delivery to the undersigned of the Designated Securities then
to be purchased by the undersigned in definitive [bearer] [fully registered]
form and in such denominations and [registered
<PAGE>
in such names] as the undersigned may designate by written or telegraphic
communication addressed to the Company not less than five business days prior to
[the] [such] Delivery Date.
The obligation of the undersigned to take delivery of and make payment for
Designated Securities on [the] [each] Delivery Date shall be subject to the
conditions that (a) the purchase of Designated Securities to be made by the
undersigned shall not on [the] [such] Delivery Date be prohibited under the laws
of the jurisdiction to which the undersigned is subject and (b) the Company, on
or before ,19 , shall have sold to the several Underwriters, pursuant to
the Pricing Agreement dated , 19 with the Company, an [aggregate
principal amount and/or number] of Designated Securities equal to
, minus the aggregate principal amount and/or a number] of Designated Securities
to be covered by this contract and other contracts similar to this contract.
The obligation of the undersigned to take delivery of and make payment for
Designated Securities shall not be affected by the failure of any purchaser to
take delivery of and make payment for Designated Securities pursuant to other
contracts similar to this contract.
Promptly after completion of the sale of 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 or Opinions of Counsel for the
Company delivered to the Underwriters in connection therewith.
The undersigned represents and warrants that, as of the date of this
contract, the undersigned is not prohibited from purchasing the Designated
Securities hereby agreed to be purchased by it under the laws of the
jurisdiction to which the undersigned is subject.
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.
This contract may be executed by either of the parties hereto in any number
of counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same instrument.
It is understood that the acceptance by the Company of any Delayed Delivery
Contract (including this contract) is in the Company's sole discretion and that,
without limiting the foregoing, acceptances of such contracts need not be on a
first-come, first-serve basis. If this contract is acceptable to the Company, it
is requested 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 when such counterpart is so mailed or delivered by the Company.
Yours very truly,
By:
(Name and Title)
<PAGE>
(Address)
Accepted, , 19
United Technologies Corporation
By:
[Title]
<PAGE>
[LOGO OF PRICEWATERHOUSECOOPERS APPEARS HERE]
Exhibit 23(a)
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-3 of our report dated
January 21, 1999 which appears on page 10 of the 1998 Annual Report to
Shareowners of United Technologies Corporation, which is incorporated by
reference in United Technologies Corporation's Annual Report on Form 10-K for
the year ended December 31, 1998. We also consent to the incorporation by
reference of our report on the Financial Statement Schedule, which appears on
page S-I of such Annual Report on Form 10-K. We also consent to the reference to
us under the heading "Experts" in such Prospectus.
/s/PricewaterhouseCoopers LLP
----------------------------
PricewaterhouseCoopers LLP
Hartford, Connecticut
April 14, 1999
