Document:

exv10w6

 

Exhibit 10.6

TRANSITION SERVICES AGREEMENT

between

TRW INC.

and

TRW AUTOMOTIVE INC.

Dated as of ______, 2002

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	 
	 	ARTICLE I DEFINITIONS	 	 	 	 
	
	
	
	

	Section 1.1
	 	Definitions	 	 	1	 
	
	
	
	

	 
	 	ARTICLE II SERVICES	 	 	 	 
	
	
	
	

	Section 2.1
	 	Services	 	 	3	 
	
	
	
	

	Section 2.2
	 	Standard of Care	 	 	3	 
	
	
	
	

	Section 2.3
	 	Modification of Services	 	 	3	 
	
	
	
	

	Section 2.4
	 	Independence	 	 	4	 
	
	
	
	

	Section 2.5
	 	Non-Exclusivity	 	 	4	 
	
	
	
	

	Section 2.6
	 	Cooperation	 	 	4	 
	
	
	
	

	Section 2.7
	 	Limitation On Services	 	 	4	 
	
	
	
	

	Section 2.8
	 	Personnel	 	 	4	 
	
	
	
	

	Section 2.9
	 	Right To Determine Priority	 	 	5	 
	
	
	
	

	 
	 	ARTICLE III TERM AND TERMINATION	 	 	 	 
	
	
	
	

	Section 3.1
	 	Term	 	 	5	 
	
	
	
	

	Section 3.2
	 	Termination	 	 	5	 
	
	
	
	

	Section 3.3
	 	Effect Of Termination	 	 	7	 
	
	
	
	

	 
	 	ARTICLE IV COMPENSATION	 	 	 	 
	
	
	
	

	Section 4.1
	 	Service Charge	 	 	8	 
	
	
	
	

	Section 4.2
	 	Invoicing And Payments	 	 	8	 
	
	
	
	

	Section 4.3
	 	Taxes	 	 	9	 
	
	
	
	

	Section 4.4
	 	Disputed Amounts	 	 	9	 
	
	
	
	

	 
	 	ARTICLE V FORCE MAJEURE	 	 	 	 
	
	
	
	

	Section 5.1
	 	Event of Force Majeure	 	 	9	 
	
	
	
	

	Section 5.2
	 	Reasonable Efforts	 	 	10	 
	
	
	
	

	 
	 	ARTICLE VI LIABILITIES	 	 	 	 
	
	
	
	

	Section 6.1
	 	Consequential and Other Damages	 	 	10	 
	
	
	
	

	Section 6.2
	 	Limitation of Liability	 	 	10	 
	
	
	
	

	Section 6.3
	 	Indemnification	 	 	11	 

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	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	
	
	
	

	 
	 	ARTICLE VII MISCELLANEOUS	 	 	 	 
	
	
	
	

	Section 7.1
	 	Notices	 	 	11	 
	
	
	
	

	Section 7.2
	 	Amendments and Waivers	 	 	12	 
	
	
	
	

	Section 7.3
	 	Headings	 	 	12	 
	
	
	
	

	Section 7.4
	 	Counterparts	 	 	12	 
	
	
	
	

	Section 7.5
	 	Entire Agreement	 	 	12	 
	
	
	
	

	Section 7.6
	 	Governing Law	 	 	12	 
	
	
	
	

	Section 7.7
	 	Resolution of Disputes	 	 	13	 
	
	
	
	

	Section 7.8
	 	Waiver of Jury Trial	 	 	14	 
	
	
	
	

	Section 7.9
	 	Assignment	 	 	15	 
	
	
	
	

	Section 7.10
	 	Fees and Expenses	 	 	15	 
	
	
	
	

	Section 7.11
	 	Binding Nature; Third-Party Beneficiaries	 	 	15	 
	
	
	
	

	Section 7.12
	 	Severability	 	 	15	 
	
	
	
	

	Section 7.13
	 	No Right of Setoff	 	 	15	 
	
	
	
	

	Section 7.14
	 	Currency	 	 	15	 
	
	
	
	

	Section 7.15
	 	Specific Performance	 	 	15	 
	
	
	
	

	Section 7.16
	 	Construction	 	 	16	 
	
	
	
	

	Section 7.17
	 	Confidentiality	 	 	16	 

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TRANSITION SERVICES AGREEMENT

         THIS TRANSITION SERVICES AGREEMENT (this “Agreement”), is dated as of [ ],
2002, and is by and between TRW Inc., an Ohio corporation (“TRW”) and TRW
Automotive Inc., a Delaware Corporation (“Spinco”).

         WHEREAS, pursuant to the Master Distribution Agreement, dated as of      ,
2002 (the “Distribution Agreement”), between TRW and Spinco, on or prior to the
Distribution Declaration Date, TRW will have contributed and transferred to
Spinco, and Spinco will have received and assumed, directly or indirectly,
substantially all of the assets and liabilities currently associated with the
Spinco business (the “Spinco Business”) and the stock or similar interests
currently held by TRW in Subsidiaries and other entities that conduct the
Spinco Business (the transactions described in this recital are referred to
collectively as the “Restructuring” and are currently contemplated to be
effected in accordance with Article II and Exhibit A of the Distribution
Agreement) and, following such Restructuring, TRW will distribute, subject to
the terms and conditions of the Distribution Agreement, to TRW’s shareholders
all the shares of the Spinco Common Stock held by TRW (the “Distribution”);

         WHEREAS, prior to the Distribution Date, the Spinco Business received
various support services from TRW and its Subsidiaries, and TRW’s businesses,
other than the Spinco Business (such businesses, the “TRW Business”), received various support services from Spinco and its Subsidiaries;

         WHEREAS, the parties have agreed to enter into this Agreement in order for
TRW to assist Spinco, and for Spinco to assist TRW, each for a period from and
after the Distribution Date, by providing to Spinco and TRW, respectively,
certain services and support not otherwise specified in the Distribution
Agreement or any Ancillary Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements contained in this Agreement, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

         Section 1.1 Definitions. Capitalized terms not defined in this Article I
shall have the meanings ascribed to such terms in the Distribution Agreement.
As used in this Agreement, the following terms shall have the following
meanings:

         “Agreement” shall have the meaning ascribed to such term in the preamble
hereto.

         “Contact Persons” shall mean the persons set forth opposite each Service
on Schedule A and Schedule B, or such persons’
successors or substitutes, who
have been designated by TRW and Spinco to handle all matters relating to such
Service.

 

 

         “CPR” shall have the meaning ascribed to such term in Section 7.7.

         “Dispute” shall have the meaning ascribed to such term in Section 7.7.

         “Distribution” shall have the meaning ascribed to such term in the
preamble hereto.

         “Distribution Agreement” shall have the meaning ascribed to such term in
the preamble hereto.

         “Receiving Party” shall mean TRW or Spinco, as the case may be, when such
party is receiving Services pursuant to the terms and conditions of this
Agreement.

         “Restructuring” shall have the meaning ascribed to such term in the
preamble hereto.

         “Services” shall mean the TRW Services or the Spinco Services, as the case
may be.

         “Service Charge” shall have the meaning ascribed to such term in Section
4.1.

         “Service Description” shall mean the description of each individual
Service respectively provided in Schedule A and Schedule B.

         “Spinco Business” shall have the meaning ascribed to such term in the
preamble hereto.

         “Spinco Services” shall mean each of the services described in Schedule B
to be provided by or on behalf of TRW to Spinco pursuant to the terms and
conditions of this Agreement.

         “Standard Of Care” shall have the meaning ascribed to such term in Section
2.2.

         “Supplying Party” shall mean TRW or Spinco, as the case may be, when such
party is supplying Services pursuant to the terms and conditions of this
Agreement.

         “Term” shall have the meaning ascribed to such term in Section 3.1.

         “TRW Business” shall have the meaning ascribed to such term in the
preamble hereto.

         “TRW Services” shall mean each of the services described in Schedule A to
be provided by or on behalf of Spinco to TRW pursuant to the terms and
conditions of this Agreement.

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ARTICLE II

SERVICES

         Section 2.1 Services.

                  (a) In addition to any obligation TRW has to perform services for Spinco
pursuant to the Distribution Agreement or any Ancillary Agreement (other than
this Agreement) and subject to the terms of this Agreement, TRW shall provide,
or shall cause a Subsidiary of TRW to provide, to Spinco or a Subsidiary of
Spinco the Spinco Services during the Term in a manner and at a level of
service consistent in all material respects with the services provided to the
Spinco Business as it existed prior to the Distribution Date.

                  (b) In addition to any obligation Spinco has to perform services for TRW
pursuant to the Distribution Agreement or any Ancillary Agreement (other than
this Agreement) and subject to the terms of this Agreement, Spinco shall
provide, or shall cause a Subsidiary of Spinco to provide, to TRW or a
Subsidiary of TRW the TRW Services during the Term in a manner and at a level
of service consistent in all material respects with the services provided to
the TRW Business as it existed prior to the Distribution Date.

                  (c) For each Service, the parties shall set forth on Schedule A and
Schedule B, among other things, the time period during which the Service will
be provided (if different from the term of this Agreement determined pursuant
to Article III), a summary of the Service to be provided, a description of the
Service, and the charge, if any, for the Service and any other terms applicable
thereto.

         Section 2.2 Standard of Care. TRW shall provide the Spinco Services, and
Spinco shall provide the TRW Services, each exercising the same degree of care
as it exercises in performing the same or similar services for itself and its
Affiliates (collectively, the “Standard Of Care”).

         Section 2.3 Modification of Services.

                  (a) Schedule A identifies the Spinco Services to be provided by TRW and,
subject to the mutual agreement of the parties hereto acting reasonably, it may
be amended from time to time, to add any additional Spinco Services or to
modify or delete Spinco Services. During the Term, service upgrades and
improvements which TRW provides to its own internal organizations shall be made
available to Spinco to the extent that the parties mutually agree upon the
price for any such upgrade or improvement.

                  (b) Schedule B identifies the TRW Services to be provided by Spinco and,
subject to the mutual agreement of the parties hereto acting reasonably, it may
be amended from time to time, to add any additional TRW Services or to modify
or delete TRW Services. During the Term, service upgrades and improvements
which Spinco provides to its own internal organizations shall be made available
to TRW to the

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extent that the parties mutually agree upon the price for any
such upgrade or improvement.

         Section 2.4 Independence. Unless otherwise agreed in writing, all
employees and representatives of the Supplying Party shall be deemed for
purposes of all compensation and employee benefits matters to be employees or
representatives of the Supplying Party and not employees or representatives of
the Receiving Party. In performing the Services, such employees and
representatives shall be under the direction, control and supervision of the
Supplying Party (and not the Receiving Party) and the Supplying Party shall
have the sole right to exercise all authority with respect to the employment
(including termination of employment), assignment and compensation of such
employees and representatives.

         Section 2.5 Non-Exclusivity. Nothing in this Agreement shall preclude a
Receiving Party from obtaining, in whole or in part, services of any nature
that may be obtainable from the Supplying Party, from its own employees or from
providers other than the Supplying Party.

         Section 2.6 Cooperation. The Receiving Party shall, in a timely manner,
take all such actions as may be reasonably necessary or desirable in order to
enable or assist the Supplying Party in the Supplying Party’s provision of
Services, including providing necessary information and specific written
authorizations and consents, and the Supplying Party shall be relieved of its
obligations hereunder to the extent that the Receiving Party’s failure to take
any such action renders performance by the Supplying Party of such obligations
unlawful or impracticable.

         Section 2.7 Limitation On Services. The Supplying Party shall not be required
to expand its facilities, incur new long-term capital expenses or employ
additional personnel in order to provide the Services to the Receiving Party.
Furthermore, the Supplying Party shall not be obligated to provide Services
hereunder that are greater in nature and scope than the comparable services
provided by the Supplying Party to the Receiving Party prior to the
Distribution Date, or that are greater in nature or scope than comparable
services provided by the Supplying Party during the Term to its own internal
organizations, except as may be specifically provided on Schedule A or Schedule
B, as applicable.

         Section 2.8 Personnel. In providing the Services, the Supplying Party as
it deems necessary or appropriate in its sole discretion may (a) use the
personnel of the Supplying Party or its Affiliates, and (b) employ the services
of third parties to the extent such third party services are routinely utilized
to provide similar services to other businesses of the Supplying Party or are
reasonably necessary for the efficient performance of any of such Services.
The Supplying Party will only employ the services of third parties who have
entered into non-disclosure agreements which obligate such third parties to
maintain the confidentiality of the Receiving Party's confidential information
and which prohibit the third party from using such confidential information for
any purpose other than providing the Services. The Receiving Party may retain at its own expense
its own consultants and other professional advisers.

4

 

         Section 2.9 Right To Determine Priority. If there is an unavoidable
conflict between the immediate needs of the Supplying Party and those of the
Receiving Party as to the use of or access to a particular Service to be
provided by the Supplying Party, the Supplying Party shall have the right, in
its sole discretion, to establish reasonable priorities, at particular times
and under particular circumstances, as between the Supplying Party and the
Receiving Party. In any such situation, the Supplying Party shall provide
notice to the Receiving Party of the establishment of such priorities at the
earliest practicable time.

ARTICLE III

TERM AND TERMINATION

         Section 3.1 Term.

                  (a) This Agreement shall become effective on the Distribution Date and
shall remain in force for a period of one year (the “Term”), unless terminated
earlier pursuant to Section 3.2 below.

                  (b) Spinco shall not have any obligation to continue to use any of the
Spinco Services and may delete any Spinco Service from Schedule A that TRW is
providing to Spinco by giving TRW sixty (60) days notice thereof. In the event
any Spinco Service is terminated by Spinco, Schedule A shall be amended to
reflect such terminated Spinco Services. Spinco will reimburse TRW for any third party cancellation charges and other
third party costs incurred as a result of the termination, provided that TRW
reasonably entered into such obligation in order to provide Services to Spinco
in accordance with this Agreement.

                  (c) TRW shall not have any obligation to continue to use any of the TRW
Services and may delete any TRW Service from Schedule B that Spinco is
providing to TRW by giving Spinco sixty (60) days notice thereof. In the event
any TRW Service is terminated by TRW, Schedule B shall be amended to reflect
such terminated TRW Services. TRW will reimburse Spinco for any third party cancellation charges and other
third party costs incurred as a result of the termination, provided that Spinco
reasonably entered into such obligation in order to provide Services to TRW in
accordance with this Agreement.

         Section 3.2 Termination.

                  (a) Termination of Spinco Services Without Cause. The obligation of TRW
to provide or cause to be provided each Spinco Service to be provided hereunder
shall terminate on the earliest to occur of:

		
	 	               (i) the expiration of the Term;
	 
	 	               (ii) the expiration of the term (including any available
renewal term) during which such Spinco Service is to be

5

 

		
		provided as specified in Schedule A, each such term to commence on the
Distribution Date;
	 
	 	               (iii) the date sixty (60) days following written notice from
TRW that TRW is discontinuing permanently the provision of such
Spinco Service to its own internal organizations;
	 
	 	               (iv) the date sixty (60) days (or such longer period as is
specified in Schedule A) after TRW receives written notice that
Spinco no longer desires that such Spinco Service be provided; or

		
	 	               (v) the date of termination pursuant to Section 3.2(c).

                  (b) Termination of TRW Services Without Cause. The obligation of Spinco
to provide or cause to be provided each TRW Service to be provided hereunder
shall terminate on the earliest to occur of:

		
	 	               (i) the expiration of the Term;
	 
	 	               (ii) the expiration of the term (including any available
renewal term) during which such TRW Service is to be provided as
specified in Schedule B, each such term to commence on the
Distribution Date;
	 
	 	               (iii) the date sixty (60) days following written notice from
Spinco that Spinco is discontinuing permanently the provision of
such TRW Service to its own internal organizations;
	 
	 	               (iv) the date sixty (60) days (or such longer period as is
specified in Schedule B) after Spinco receives written notice that
TRW no longer desires that such TRW Service be provided; or
	 
	 	               (v) the date of termination pursuant to Section 3.2(c).

                  (c) Termination For Cause. Subject to Section 5.1, if either party shall
fail to adequately perform in any material respect any of its material
obligations under this Agreement (other than a payment default) (the
“Defaulting Party”), the other party entitled to the benefit of such
performance (the “Non-Defaulting Party”) may give thirty (30) days’ written
notice to the Defaulting Party specifying the nature of such failure or default
and stating that the Non-Defaulting Party intends to terminate this Agreement,
either in its entirety or partially as set forth in Section 3.2(d), if such
failure or default is not cured within thirty (30) days of such written notice.
If any failure or default so specified is not cured within such 30-day period,
the Non-Defaulting Party may elect to immediately terminate this Agreement in
whole or in part with respect to the Defaulting Party; provided, however, that
if the failure or default relates to a dispute contested in good faith by the
Defaulting Party, the Non-Defaulting Party may not 

6

 

terminate this Agreement
pending the resolution of such dispute in accordance with Section 7.7. Such
termination shall be effective upon giving a written notice of termination from
the Non-Defaulting Party to the Defaulting Party and shall be without prejudice
to any other remedy which may be available to the Non-Defaulting Party against
the Defaulting Party.

                  (d) Partial Termination. Under circumstances specified in Section 3.2(c)
entitling the Non-Defaulting Party to terminate this Agreement in its entirety,
the Non-Defaulting Party shall have the following options to partially
terminate this Agreement upon the same notice provisions as specified in
Section 3.2(c):

		
	 	               (i) if the default relates to the payment for a Service, the
Supplying Party may terminate this Agreement as to the provision
of that Service or all Services to Receiving Party, but continue
this Agreement in all other respects; or

		
	 	               (ii) if the default relates to the provision of a Service,
the Receiving Party may terminate this Agreement as to the
provision of that Service or all Services by the Supplying Party,
but continue this Agreement in all other respects.

         Section 3.3 Effect Of Termination.

                  (a) Each Receiving Party specifically agrees and acknowledges that all
obligations of the Supplying Party to provide each Service for which the
Supplying Party is responsible hereunder shall immediately cease upon the
termination of this Agreement. Upon the cessation of the Supplying Party’s
obligation to provide any Service, the Receiving Party shall immediately cease
using, directly or indirectly, such Service (including any and all software of
the Supplying Party or third party software
provided through the Supplying Party, telecommunications services or
equipment, or computer systems or equipment).

                  (b) Upon termination of a Service with respect to which the Supplying
Party holds books, records or files, including current or archived copies of
computer files, owned by the Receiving Party and used by the Supplying Party in
connection with the provision of a Service to the Receiving Party, the
Supplying Party will return all of such books, records or files as soon as
reasonably practicable; provided, however, that the Supplying Party may make a
copy, at its expense, of such books, records or files for archival purposes
only.

                  (c) Without prejudice to the survival of the other agreements of the
parties, the following obligations shall survive the termination of this
Agreement: (a) the obligations of each party under Section 3.3(b), Section 7.17
and Article VI, and (b) the Supplying Party’s right to receive the Service
Charges for the Services provided by it hereunder pursuant to Section 4.1
incurred prior to the effective date of termination.

7

 

ARTICLE IV

COMPENSATION

         Section 4.1 Service Charge. As consideration for the provision of the
Services, the Receiving Party shall, for each Service performed, pay the
Supplying Party the applicable fee for such Service set forth in Schedule A or
Schedule B, as appropriate, plus any additional charges as described below
(such fee and any additional charges being collectively referred to in this
Agreement as the “Service Charge”) for such Service. The fee for each Service
provided by the Supplying Party shall be either (a) a base fee, as specified in
Schedule A or Schedule B, as appropriate, or (b) if not otherwise specified on
Schedule A or Schedule B, as appropriate, the Supplying Party’s fully loaded
cost for such Service. Unless otherwise stated in Schedule A or Schedule B, as
appropriate, such allocations shall be made on a basis consistent with the
allocation methodology used by the Supplying Party immediately prior to the
Distribution Date, which shall include a fair and reasonable allocation for the
Supplying Party’s employee benefit costs relating to employees, and for the
Supplying Party’s facilities and other overhead. In addition to the Service
Charge for such Services, the Supplying Party shall also be entitled to
reimbursement from the Receiving Party upon receipt of reasonable supporting
documentation for all reasonable and necessary out-of-pocket expenses incurred in connection with the
Supplying Party’s provision of the Services which are not included as part of
the normal allocated cost. The Receiving Party may, but is not obligated to set a monthly or total cap for
such out-of-pocket expenses, in which case the Supplying Party shall not exceed
such cap without the Receiving Party's prior approval.
In the event the Service is terminated, the Service
Charge will be prorated for the number of days of Service received in the
calendar month (based on a thirty day month) in which the Service is
terminated.

         Section 4.2 Invoicing And Payments.

                  (a) Invoices. After the end of each month, the Supplying Party, together
with its Affiliates and/or Subsidiaries providing Services will submit one
invoice to the Receiving Party for all Services provided to the Receiving Party
and the Receiving Party’s Subsidiaries by the Supplying Party during such
month. Such monthly invoices shall be issued when the Supplying Party issues
its invoices in the ordinary course of its business. Each invoice shall
include a summary list of the previously agreed upon Services for which there
are fixed dollar fees, together with documentation supporting each of the
invoiced amounts that are not covered by the fixed fee agreements. The total
amount set forth on such summary list and such supporting detail shall equal
the invoice total, and shall be provided under separate cover apart from the
invoice. All invoices shall be sent to the attention of the Receiving Party at
the address set forth in Section 7.1 or to such other address as the Receiving
Party shall have specified by notice in writing to the Supplying Party.

                  (b) Payment. Payment of all invoices in respect of Service shall be made
by check or electronic funds transmission in U.S. Dollars, without any offset
or deduction of any nature whatsoever, within thirty (30) days of the date of
receipt of the 

8

 

invoice. Invoices unpaid as of such date shall accrue interest
at a rate equal to the daily average one month LIBOR plus one percent (1%).
All payments shall be made to the account designated by the Supplying Party to
the Receiving Party. If any payment is not paid when due, the Supplying Party
shall have the right, without any liability to the Receiving Party, or anyone
claiming by or through the Receiving Party, upon thirty (30) days’ notice, to
cease providing any or all of the Services provided by the Supplying Party to
the Receiving Party, which right may be exercised by the Supplying Party in its
sole and absolute discretion.

         Section 4.3 Taxes. To the extent not included directly in the price the
Supplying Party charges for Services, the Receiving Party shall pay to the
Supplying Party the amount of any taxes or charges set forth in clauses (a)
through (c) below which are imposed now or in the future by any Governmental
Entity, including any increase in any such tax or charge imposed on the
Supplying Party after the Distribution Date and during the Term of this
Agreement:

                  (a) Any applicable sales, use, gross receipts, value added or similar tax
that is imposed as a result of, or measured by, any Service rendered hereunder
unless covered by an exemption certificate;

                  (b) Any applicable real or personal property taxes, including any special
assessments, and any impositions imposed on the Supplying Party in lieu of or
in substitution for such taxes on any property used in connection with any
Service rendered hereunder; and

                  (c) Any other governmental taxes, duties and/or charges of any kind,
excluding any income or franchise taxes imposed on the Supplying Party, which
the Supplying Party is required to pay with respect to any Service rendered
hereunder.

         Section 4.4 Disputed Amounts. In the event the Receiving Party disputes
the accuracy of any invoice, the Receiving Party shall pay the undisputed
portion of such invoice and the parties hereto shall promptly meet and seek to
resolve the disputed amount of the invoice. If the Receiving Party fails to
pay any undisputed amount owed under this Agreement, the Receiving Party shall
correct such failure promptly following notice of the failure, and shall pay
the Supplying Party interest on the amount paid late at an interest rate equal
to the daily average one month LIBOR plus one percent (1%).

ARTICLE V

FORCE MAJEURE

         Section 5.1 Event of Force Majeure. The Supplying Party shall not be
liable to the Receiving Party for any interruption of Service or delay or
failure to perform under this Agreement when such interruption, delay or
failure results from causes beyond its reasonable control or as the result of
strikes, lock-outs or other labor difficulties; acts of any government, riot,
insurrection or other hostilities; embargo, war,

9

 

terrorism, fuel or energy shortage, network failures, fire,
flood, acts of God, wrecks or transportation delays; or inability to
obtain equipment, supplies or utilities from usual sources. In such event, the obligations hereunder of the
Supplying Party in providing any Service, and the obligation of the Receiving
Party to pay for any such Service, shall be postponed for such time as its
performance is suspended or delayed on account thereof. Upon learning of the
occurrence of such event of force majeure, the Supplying Party shall promptly
notify the Receiving Party, either orally or in writing.

         Section 5.2 Reasonable Efforts. In the event of any failure, interruption
or delay in performance of the Services, whether excused or unexcused, the
Supplying Party shall use its reasonable efforts to restore the Services as
soon as may be reasonably possible in accordance with its existing contingency
plans for such services.

ARTICLE VI

LIABILITIES

         Section 6.1 Consequential and Other Damages. TRW and its Affiliates, and
the officers, directors, employees, shareholders, partners, representatives,
consultants and agents of TRW and its Affiliates (the “TRW Parties”) shall not
be liable to Spinco or its Affiliates, or to any officer, director, employee,
shareholder, partner, representative, consultant or agent of Spinco or its
Affiliates (the “Spinco Parties”), whether in contract, tort (including
negligence and strict liability), or otherwise, for any special, indirect,
incidental or consequential damages whatsoever, which in any way arise out of,
relate to, or are a consequence of, its performance or nonperformance
hereunder, or the provision of or failure to provide any Spinco Service. The
Spinco Parties shall not be liable to the TRW Parties, whether in contract,
tort (including negligence and strict liability), or otherwise, for any
special, indirect, incidental or consequential damages whatsoever, which in any
way arise out of, relate to, or are a consequence of, its performance or
nonperformance hereunder, or the provision of or failure to provide any TRW
Service.

         Section 6.2 Limitation of Liability.

                  (a) TRW shall not be liable for any claims, liabilities, damages, losses,
costs, expenses (including settlements, judgments, court costs, and regardless
of whether legal proceedings are instituted, reasonable attorneys’ fees), fines
or penalties (“Losses”), arising out of any actual or alleged injury, loss or
damage of any nature whatsoever in providing or failing to provide Spinco
Services for which it is responsible hereunder to Spinco, except if due to
willful misconduct or bad faith. In the absence of willful misconduct or bad
faith, in the event TRW commits an error with respect to or incorrectly
performs or fails to perform any Spinco Service, at Spinco’s request, TRW shall
use commercially reasonable efforts and good faith to correct such error,
re-perform or perform such Spinco Service at no additional cost to Spinco;
provided, that TRW shall have no obligation to recreate any lost or destroyed
data to the extent the same cannot be cured by the re-performance of the Spinco
Service in question.

10

 

                  (b) Spinco shall not be liable for any Losses arising out of any actual or
alleged injury, loss or damage of any nature whatsoever in providing or failing
to provide TRW Services for which it is responsible hereunder to TRW, except if
due to willful misconduct or bad faith. In the absence of willful misconduct
or bad faith, in the event Spinco commits an error with respect to or
incorrectly performs or fails to perform any TRW Service, at TRW’s request,
Spinco shall use commercially reasonable efforts and good faith to correct such
error, re-perform or perform such TRW Service at no additional cost to TRW;
provided, that Spinco shall have no obligation to recreate any lost or
destroyed data to the extent the same cannot be cured by the re-performance of
the TRW Service in question.

         Section 6.3 Indemnification. Spinco shall indemnify and hold harmless the
TRW Parties from and against any Losses that any of the TRW Parties may sustain
or incur by reason of any actual or threatened claim, demand, suit or recovery
by any person or entity arising or allegedly arising in connection with this
Agreement, unless such Loss arose out of the willful misconduct, gross
negligence or bad faith of TRW. TRW shall indemnify and hold harmless the Spinco Parties from and against
any Losses that any of the Spinco Parties may sustain or incur by reason of any
actual or threatened claim, demand, suit or recovery by any person or entity
arising or allegedly arising in connection with this Agreement, unless such
Loss arose out of the willful misconduct, gross negligence or bad faith of Spinco.

ARTICLE VII

MISCELLANEOUS

         Section 7.1 Notices. All notices, requests and other communications to
any party hereunder shall be in writing (including facsimile transmission) and
shall be given (i) by personal delivery to the appropriate address as set forth
below (or at such other address for the party as shall have been previously
specified in writing to the other party), (ii) by reliable overnight courier
service (with confirmation) to the appropriate address as set forth below (or
at such other address for the party as shall have been previously specified in
writing to the other party), or (iii) by facsimile transmission (with
confirmation) to the appropriate facsimile number set forth below (or at such
other facsimile number for the party as shall have been previously specified in
writing to the other party) with follow-up copy by reliable overnight courier
service the next Business Day:

                  (a) if to Spinco, to:

                  [             ]

                  Attention: [        ]

                  Telecopy: [        ]

11

 

                  (b) if to TRW, to:

                  TRW Inc.

                  1900 Richmond Road

                  Cleveland, OH 44124 USA

                  Attention: Secretary

                  Telecopy: 216-291-7070

         All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5
p.m. (Cleveland, Ohio time) and such day is a Business Day in the place of
receipt. Otherwise, any such notice, request or communication shall be deemed
not to have been received until the next succeeding Business Day in the place
of receipt.

         Section 7.2 Amendments and Waivers. This Agreement may not be modified or
amended except by an instrument or instruments in writing signed by an authorized officer of each party. Except as otherwise provided in this
Agreement, any failure of any of the parties to comply with any obligation,
covenant, agreement or condition herein may be waived by the party entitled to
the benefits thereof only by a written instrument signed by an authorized
officer of the party granting such waiver, but such waiver or failure to insist
upon strict compliance with such obligation, covenant, agreement or condition
shall not operate as a waiver of, or estoppel with respect to, any subsequent
or other failure.

         Section 7.3 Headings. The table of contents and the article, Section,
paragraph and other headings contained in this Agreement are inserted for
convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.

         Section 7.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.

         Section 7.5 Entire Agreement. This Agreement, the Ancillary Agreements,
the Exhibits hereto and the Schedules hereto constitute the entire agreement
between the parties hereto with respect to the subject matter hereof, and
supersede and cancel all prior agreements, negotiations, correspondence,
undertakings, understandings and communications of the parties, oral and
written, with respect to the subject matter hereof.

         Section 7.6 Governing Law. THIS AGREEMENT, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OR CHOICE OF LAWS OR ANY OTHER LAW THAT WOULD

12

 

MAKE THE LAWS OF ANY
OTHER JURISDICTION OTHER THAN THE STATE OF OHIO APPLICABLE HERETO.

         Section 7.7 Resolution of Disputes. All disputes arising out of or relating to this Agreement or an
Ancillary Agreement or the breach, termination or validity thereof or the
parties’ performance hereunder or thereunder (“Dispute”) shall be resolved as
provided by this Section 7.7.

                  (a) Negotiation of Disputes.

		
	 	               (i) Any party shall give the other party written notice of
any Dispute. The parties shall attempt to resolve such Dispute
promptly by negotiation between executive officers who have
authority to settle the Dispute and who are at a higher level of
management than the persons with direct responsibilities for
administration of this Agreement.

		
	 	               (ii) Within 15 days after delivery of the notice, the party
receiving the notice shall submit to the other a written response.
The notice and the response shall include: (A) a statement of
each party’s position and a summary of arguments supporting that
position and (B) the name and title of the executive officer who
will represent that party and of any other person who will
accompany the executive officer during the negotiations. Within
30 days after delivery of the disputing party’s notice, the
executive officers of both parties shall meet at a mutually
acceptable time and place, and thereafter as often as they
reasonably deem necessary, to attempt to resolve the Dispute.

                  (b) Arbitration.

		
	 	               (i) If the Dispute has not been resolved by executive officer
negotiation within 45 days of the disputing party’s notice
requesting negotiation, or if the parties fail to meet within 30
days from delivery of said notice, such Dispute shall on the
demand of any party, be finally settled under the Rules of
Arbitration of the Center for Public Resources (“CPR”) then in
effect, except as modified herein or by mutual agreement of the
parties.

		
	 	               (ii) The arbitration shall be held in Cleveland, Ohio. The
arbitration proceedings shall be conducted, and the award shall be
rendered, in the English language.

		
	 	               (iii) There shall be three arbitrators selected pursuant to
the CPR rules from the CPR national and regional panels. All
arbitrators shall be neutral, disinterested, independent and
impartial.

		
	 	               (iv) In rendering an award, the arbitral tribunal shall be
required to follow the substantive law of the jurisdiction
designated by the parties herein. This arbitration agreement and
any

13

 

		
	 	award rendered thereunder shall be governed by the United
Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, 1958, and the Federal Arbitration Act, 9 USC § 1
et seq. The arbitral tribunal shall not be empowered to award
damages in excess of
compensatory damages except in the case of fraud, and each
party hereby irrevocably waives any right to recover punitive,
exemplary or similar damages with respect to any dispute except in
the case of fraud.

		
	 	               (v) The award shall be final and binding upon the parties and
shall be the sole and exclusive remedy between the parties with
regard to any claim or counterclaim submitted to the arbitral
tribunal. Judgment upon any award may be entered in any court
having jurisdiction thereof.

		
	 	               (vi) By agreeing to arbitration, the parties do not intend to
deprive any court of its jurisdiction to issue a pre-arbitral
injunction, pre-arbitral attachment or other order in aid of
arbitration proceedings and the enforcement of any award. Without
prejudice to such provisional remedies as may be available under
the jurisdiction of a national court, the arbitral tribunal shall
have full authority to grant provisional remedies or to order the
parties to request that a court modify or vacate any temporary or
preliminary relief issued by such court, and to award damages for
the failure of any party to respect the arbitral tribunal’s orders
to that effect. The parties hereby unconditionally and
irrevocably submit to the non-exclusive jurisdiction of the state
or federal courts located in Cleveland, Ohio for the purpose of
any preliminary relief in aid of arbitration, or for enforcement
of any award, and hereby waive any objection to such jurisdiction
including without limitation objections by reason of lack of
personal jurisdiction, improper venue, or inconvenient forum.

                  (c) Notwithstanding the foregoing, any Dispute regarding the following is
not required to be negotiated or arbitrated prior to seeking relief from a
court of competent jurisdiction: breach of any obligation of confidentiality,
infringement, misappropriation or misuse of any intellectual property right.
The parties acknowledge that their remedies at law for such a breach or
threatened breach would be inadequate and, in recognition of this fact, upon
such breach or threatened breach, either party, without posting any bond, and
in addition to all other remedies which may be available, shall be entitled to
immediately seek or obtain equitable relief in the form of specific
performance, a temporary restraining order, a temporary or permanent injunction
or any other equitable remedy which may then be available.

         Section 7.8 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

14

 

         Section 7.9 Assignment. This Agreement may not be assigned by either party without the written
consent of the other party, provided that this Agreement may be assigned
without consent by either party to a person acquiring substantially all of the
shares or assets of that party, or to a parent, controlled subsidiary
or controlled affiliate, on condition that the assignee agrees to be
bound by all of the terms and conditions of this Agreement. No such
assignment shall relieve either party of any of its rights and obligations
hereunder.

         Section 7.10 Fees and Expenses. Each party hereto shall be responsible
for the fees and expenses incurred by it relating to the drafting, negotiation
and enforcement of this Agreement, as well as any other advice sought in
connection with this Agreement.

         Section 7.11 Binding Nature; Third-Party Beneficiaries. This Agreement
shall be binding upon and inure solely to the benefit of the parties hereto and
their respective successors and permitted assigns. Except for the provisions
of Article VI of this Agreement which are intended for the benefit of, and to
be enforceable by, any of the applicable Indemnified Parties in their
respective capacities as such, nothing in this Agreement, express or implied,
is intended to or shall confer upon any other Person or Persons any rights,
benefits or remedies of any nature whatsoever under or by reason of this
Agreement.

         Section 7.12 Severability. This Agreement shall be deemed severable; the
invalidity or unenforceability of any term or provision of this Agreement shall
not affect the validity or enforceability of this Agreement or of any other
term hereof, which shall remain in full force and effect, for so long as the
economic or legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any party. If it is ever
held that any restriction hereunder is too broad to permit enforcement of such
restriction to its fullest extent, each party agrees that such restriction may
be enforced to the maximum extent permitted by law, and each party hereby
consents and agrees that such scope may be judicially modified accordingly in
any proceeding brought to enforce such restriction.

         Section 7.13 No Right of Setoff. Neither party hereto nor any Affiliate
thereof may deduct from, set off, holdback or otherwise reduce in any manner
whatsoever against any amounts such Persons may owe to the other party hereto
or any of it Affiliates any amounts owed by such other party or its Affiliates
to the first party or its Affiliates.

         Section 7.14 Currency. All monetary amounts mentioned or referred to
herein are in United States dollars unless otherwise indicated.

         Section 7.15 Specific Performance. The parties hereto agree that
irreparable damage would occur in the event that any provision of this
Agreement was not performed in accordance with the terms hereof and that the
parties shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at law or equity.

15

 

         Section 7.16 Construction.

                  (a) For the purposes hereof, (i) words in the singular shall be held to
include the plural and vice versa and words of one gender shall be held to
include the other gender as the context requires, (ii) the words “hereof,”
“herein,” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole (including the
Schedules hereto and the Exhibits hereto) and not to any particular provision
of this Agreement, and article, Section, paragraph, exhibit and schedule
references are to the articles, Sections, paragraphs, and exhibits and
schedules of this Agreement unless otherwise specified, (iii) the words
“including” and words of similar import when used in this Agreement shall mean
“including, without limitation,” unless otherwise specified, (iv) the word “or”
shall not be exclusive, and (v) Spinco and TRW will be referred to herein
individually as a “party” and collectively as “parties” (except where the
context otherwise requires).

                  (b) The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this
Agreement.

                  (c) Any reference to any federal, state, local or non-U.S. statute or law
shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context otherwise requires.

         Section 7.17 Confidentiality. TRW and Spinco each agrees to maintain the
confidentiality of all non-public information relating to the other Party, its
Affiliates or any third party that may be disclosed by a Party to the other
Party in connection with the performance of the Services hereunder and to use
such information solely for the purposes of providing or receiving the Services
hereunder. This Agreement and all information that may be disclosed to a Party
pursuant to this Agreement shall be subject to the terms of the confidentiality
provisions in the Distribution Agreement, and such information shall be held in
confidence by each Party and its representatives in accordance with the terms
of the Distribution Agreement.

16

 

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	TRW INC.	 	 
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 	 	 
	
	
	
	

	 	 	 	 	

Name:

Title:
	 	 
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	 	 	TRW AUTOMOTIVE INC.	 	 
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 	 	 
	 	 	 	 	
	 	 
	 	 	 	 	Name:

Title:	 	 

17exv10w8

 

Exhibit 10.8

TRADEMARK LICENSE AGREEMENT

     This TRADEMARK LICENSE AGREEMENT (“Agreement”) is dated as of      ,
2002 (the “Effective Date”) between TRW INC., an Ohio corporation (“Licensor”),
and TRW AUTOMOTIVE INC., a corporation organized under the laws of Delaware and
a wholly-owned subsidiary of Licensor (“Licensee”). Licensor and Licensee are
sometimes referred to herein individually as, “Party” and collectively as, the
“Parties.”

RECITALS

     WHEREAS, Licensor and Licensee have entered into that certain Master
Distribution Agreement of even date herewith (the “Distribution Agreement”),
which provides, among other things, for the separation of the TRW Automotive
Business from Licensor;

     WHEREAS, pursuant to Section 5.1(a) of the Distribution Agreement,
Licensor has agreed to license certain intellectual property to Licensee in the
form of the Licensed Marks (as defined herein) for use in connection with
Automotive Products, Automotive Services and, on certain terms and conditions,
New Products and Services (each defined herein);

     WHEREAS, substantial goodwill associated with the Licensed Marks has been,
and continues to be, derived both from the conduct of Licensor's
business and Licensee’s business; and

     WHEREAS, Licensee desires to obtain the right and license to use the
Licensed Marks in connection with the Automotive Products, Automotive Services
and, on certain terms and conditions, New Products and Services, all on the
terms and conditions of this Agreement.

     NOW, THEREFORE, for one dollar in hand and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     I.     DEFINITIONS

     1.1 Definitions. All terms used but not defined herein, shall have the
meaning set forth in the Distribution Agreement (as defined above). For
purposes of this Agreement, the following capitalized terms shall have the
following meanings:

     “Affiliate” An “Affiliate” of, or a Person “Affiliated” with, any
specified Person means a Person that, directly, or indirectly through one or
more intermediaries, Controls, or is Controlled by, or is under common Control
with, such specified Person. For purposes of this Agreement, “Control” shall
mean either the possession, directly, or indirectly through one or more
intermediaries, of the power to direct or cause the direction of the management
and/or policies of such Person, whether through the ownership of voting
securities, by contract, or otherwise.

1

 

     "Automotive Products” means steering, suspension, braking, engine,
occupant safety, electronic and electro-mechanical components, modules and
systems, engineered fastening and other components and systems for passenger
cars, light trucks, commercial vehicles and other land-based motor vehicles,
including inflatable restraint, seat belt and steering wheel components and
systems; braking components, systems and related products; steering and
suspension systems and components; chassis components, modules and integrated
vehicle control systems; vehicle dynamic control systems and electronics;
access, security and safety electronics systems; display and heating,
ventilating and air conditioning electronics; engineered and plastic fasteners
and precision plastic moldings and assemblies; engine components and systems;
commercial steering systems and components.

     “Automotive
Services” means services, including but not limited to
design services, logistics services, assembly services, warranty
administration services, technical support services and diagnostic
services, reasonably related or incidental to the development,
manufacture, sale or distribution of Automotive Products.

     “Licensed Products” means (i) Automotive Products and (ii) New Product and
Services that are products (if and when approved by Licensor pursuant to
Section 2.4 hereof), that are, in each case, designed, manufactured, promoted,
distributed, or sold by or on behalf of Licensee or its sublicensees under the
Licensed Marks in accordance with this Agreement.

     “Licensed Services” means (i) Automotive Services and (ii) New Products
and Services that are services (if and when approved by Licensor pursuant to
Section 2.4 hereof), that are, in each case, provided, promoted, or sold by or
on behalf of Licensee or its sublicensees under the Licensed Marks in
accordance this Agreement.

     “Licensed
Marks” means certain intellectual property in the form of the TRW Mark
and TRW Logo. All current registrations of the Licensed Marks are set
forth on Schedule I hereto.

     “New Products and Services” means products and/or services that have
qualified for inclusion as part of the Licensed Products or Licensed Services
pursuant to Section 2.4 hereof.

     “Person” means any natural person, corporation, partnership, limited
liability company, trust, joint venture, or other legal entity or organization
including a government, political subdivision, or agency or instrumentally
thereof.

     “Pre-Existing Rights” means the rights of any Person, other than Licensee
and its sublicensees, to use the Licensed Marks, or to design, manufacture,
promote, distribute and/or sell Licensed Products or Licensed Services under
the Licensed Marks, which conflict with the rights granted to Licensee under
this Agreement, in each case pursuant to agreements that are in effect as of
the Effective Date. All agreements containing Pre-Existing Rights as of the
date hereof are set forth on Exhibit C.

     “Term” means the duration of this Agreement, as defined under Section 4.1
hereof.

2

 

     “TRW
Logo” means the logo in the form set forth on
Exhibit B hereto, and all
variations approved by Licensor pursuant to Section 2.2 of this Agreement.

     “TRW Mark” means the term “TRW”, whether alone or in combination with
other words, phrases, slogans, or graphics, including the variations thereon
set forth on Exhibit B hereto, and all variations approved by Licensor pursuant
to Section 2.2 of this Agreement.

     II.     USE OF TRADEMARKS

     2.1 Grant of Licenses.

     (a)  Subject to the terms and conditions of this Agreement, effective from
and after the Distribution Declaration Date, Licensor hereby grants to Licensee
the perpetual, irrevocable, royalty-free right and license to use
the Licensed Marks as trademarks in connection with the design, manufacture
(including the right to have manufactured), promotion, distribution, sale and
resale throughout the world of Automotive Products, in connection with the
provision, promotion sale and resale throughout the world of the Automotive
Services, and, if and when, New Products and Services are approved pursuant to
Section 2.4, the design, manufacture, distribution, provision, promotion, sale
and resale of New Products and Services. Subject to Pre-Existing Rights, the
foregoing grant includes the right for Licensee to promote, distribute, and
sell Licensed Products and Licensed Services over the Internet, or any similar
or successor communications medium, or via any website.

     (b)  Notwithstanding the foregoing, the scope of the rights and licenses
granted hereunder (including any exclusivity) shall be limited by, and subject
to, the Pre-Existing Rights listed on Exhibit C hereto, in each case unless and
until such Pre-Existing Rights terminate. All trademark rights and licenses
not expressly granted under this Agreement are reserved by Licensor.

     (c)  Licensee agrees that it will not use the Licensed Marks as trademarks
in connection with the design, manufacture, provision, promotion,
distribution, or sale of any products or services other than Automotive
Products, Automotive Services, or if and when approved New Products and
Services.

     (d)  Licensor further consents irrevocably to Licensee’s use of any
Licensed Mark as part of the corporate name “TRW Automotive
Inc.” Any variations to a Licensed Mark for use as part of
Licensee's corporate name are subject to Licensor's approval such
approval not to be withheld unreasonably.

     (e) Licensee shall not use any of the Licensed Marks in any manner that
may give the impression that the Licensed Marks are the property of the
Licensee (unless such is the case. Licensee shall be permitted to indicate on
its letterhead, business cards, invoices, and other similar business documents,
and on packaging and promotional materials for the Licensed Products or
Licensed Services, that Licensee is the “maker of,” or “distributor of” the
Licensed Products or Licensed Services, or the licensee for the Licensed Marks,
or words of like import.

3

 

     2.2 Form of Licensed Marks; Variations. Licensee shall use the Licensed
Marks only in block print format, the format(s) set forth on Exhibit B, or the
format(s) approved by Licensor, as follows: If Licensee desires to adopt a
variation of the Licensed Mark, then Licensee shall submit its proposed
variation to Licensor for its written approval, which approval shall not be
unreasonably withheld. The parties acknowledge that any variation in the
Licensed Marks shall be owned by Licensor and shall, if and when approved by
Licensor, be considered covered by the terms of this Agreement that apply to
the Licensed Marks. In no event shall Licensee conjoin any of Licensee’s own
trademarks, service marks, corporate or fictional names, or Internet domain
names with any Licensed Mark without Licensor’s written consent, such consent
no to be withheld unreasonably. At all times, Licensee shall use Licensed
Marks properly as trademarks, i.e., as an adjective and not as a noun or a
verb. The use of the Licensed Marks must be considered with the requirements
and/or guidelines established in the style guide currently in use by the
Licensor and provided to Licensee. Any changes to such style guide are subject
to Licensee’s written consent, such consent no to be withheld unreasonably.

     2.3 Quality Control Standards.

     (a)  Licensee acknowledges that the Licensed Marks have established
valuable goodwill and are well-regarded by consumers as representing Automotive
Products and Automotive Services of the highest caliber, and that it is of
great importance to Licensor that this valuable goodwill and reputation be
maintained. Licensee shall not use the Licensed Marks or conduct the TRW
Automotive Business in any manner that may detract from the reputation and
goodwill associated with the Licensor or the Licensed Marks. Material
changes to the manner in which Licensee uses the Licensed Marks are
to be disclosed to Licensor in advance, and Licensee will consider
any reasonable concerns raised by Licensor with respect to such
changes.

     (b)  All Automotive Products and Automotive Services covered by the grant
of license hereunder shall conform to standards of quality at least comparable
to those generally prevailing at the Effective Date with respect to similar
Automotive Products and Automotive Services sold under the Licensed Marks by or
on behalf of Licensor. All New Products and Services covered by the grant of
license hereunder shall conform to standards of quality at least comparable to
those generally applied by manufacturers or providers of similar products.

     (c)  Licensee shall comply with all laws, rules, and regulations
applicable to its manufacture, provision, promotion, distribution, and sale of
the Licensed Products and the Licensed Services, and its use of the Licensed
Marks.

     2.4 New Products and Services.

     (a)  From time to time, Licensee may add specific products and services as
Licensed Products or Licensed Services, to the extent that (i) any such
products and services are related to and/or constitute a reasonable extension
of the TRW Automotive Business, or (ii) Licensee can document a bona fide
intent to design, manufacture, pro-

4

 

vide, promote, or distribute such product or
service under the Licensed Marks within a year of such proposal. In order to
be eligible to become a Licensed Product or Licensed Service, such product or
service must be, consistent with the image and reputation of the Licensed Marks
and not competing with any product or service which is then being designed,
manufactured, provided, promoted, distributed or sold by Licensor, its
Affiliates or their respective licensees or which Licensor can demonstrate it
or its Affiliates or their respective licensees are contemplating designing,
manufacturing, providing, promoting distributing or selling with the next year.
The quality of such New Products and Services must be as specified in Section
2.3(b). Licensee shall notify Licensor of a product or service that
it believes qualifies as a New Product or Service for purposes of
this Agreement, and such product or service shall become a New
Product or Service and be covered by
the grant of licenses, and other applicable provisions of this Agreement that
apply to Licensed Products (to the extent that such New Product or Service is a
product), or to Automotive Services (to the extent that such New Product or
Service is a service) unless Licensor objects in writing within
thirty (30) days of Licensee's notification. If Licensor objects, the
issue shall be resolved pursuant to the Dispute resolution procedures
set forth in Article 7 hereto. Notwithstanding the foregoing, if a New Product or
Service that has been approved for inclusion as a Licensed Product or Licensed
Service under this Agreement has not been the subject of development, design,
manufacturing, distribution, or sales efforts by the second anniversary of such
approval, it shall no longer be deemed covered by this Agreement.

     (b)  Legends and Notices. Licensee shall use, in connection with the
Licensed Marks, such legends, markings, and notices as Licensor may reasonably
specify in writing from time to time, to indicate registration or trademark
status.

     2.5 Ownership and Registration of Licensed Marks.

     (a)  Licensee acknowledges that Licensor owns all rights in the Licensed
Marks and the goodwill associated therewith. All use of the Licensed
Marks by Licensee, whether authorized or unauthorized, pursuant to this Agreement, and the goodwill generated thereby, shall inure to
the benefit of Licensor for trademark purposes. Licensee acknowledges that
nothing herein gives Licensee any right, title or interest in the Licensed
Marks, apart from the license granted hereunder and, in no event shall
Licensee’s use of the License Marks be deemed to vest any right, title, or
interest to the Licensed Marks in Licensee. To the extent Licensee accrues any
right, title, or interest in and to the Licensed Marks, other than the license
granted hereunder, Licensee hereby assigns to Licensor all right, title and
interest in and to the Licensed Marks and all goodwill associated therewith.

     (b)  Licensee acknowledges that the Licensed Marks are valid and
enforceable and any registration thereon is duly and validly issued. Licensee
agrees that it shall not, directly or indirectly: (i) use any Licensed Mark in
any way that may impair its validity as a trademark; (ii) challenge, or take
any other action that may impair, Licensor’s rights in any Licensed Mark or
impair its validity or enforceability as a trademark; (iii) apply for the
registration of the Licensed Marks, or any name or mark which is confusingly
similar to the Licensed Marks; or (iv) use or promote, any name or mark that is
confusingly similar to the Licensed Marks.

     (c)  As between the parties, Licensor has the sole right to apply for
registrations of the Licensed marks as trademarks, service marks, and any other
proprietary pro-

5

 

tection for the Licensed Marks, provided however that Licensee
shall have the right to apply for Internet Domain names which include the word
“TRW”, subject to the approval of Licensor, such approval
not to be unreasonably withheld. Licensor shall have the exclusive right to use the “www.TRW.com”
Internet domain name; provided however that if Licensor ever decides to cease
the active use of that Internet domain name in connection with the promotion of
itself and its business, it will sell all rights to “www.TRW.com” to Licensee for One
Dollar ($1). Moreover, Licensor hereby grants Licensee the right to use all
content reasonably related to the TRW Automotive Business, and such other
content as mutually agreed by the parties, posted on “www.TRW.com” on or before
the date of this Agreement on Licensee’s own websites except to the extent such
use would violate third party rights in existence prior to the date of this
Agreement. Moreover, Licensor agrees to post a prominent notice on the home
page of “www.TRW.com” during the first six (6) months following the Effective
Date indicating that Licensee is now an independent company and providing
contact information for Licensee. Licensee shall cooperate with Licensor in
connection with obtaining and maintaining the registrations of the Licensed
Marks and Internet Domain names incorporating the Licensed Marks, and will
supply Licensor with samples of Licensed Products and Licensed Services bearing
the Licensed Mark and associated materials as may reasonably be requested by
Licensor in connection therewith. In addition, Licensee shall execute all
documents, including registered user agreements and cancellations thereof,
which Licensor may reasonably request in order to establish or to maintain
Licensor’s ownership of or rights in and to the Licensed Marks and Internet
Domain names incorporating the Licensed Marks. Licensee appoints Licensor as
its attorney-in-fact to sign such documents in Licensee’s name in the event
Licensee fails or refuses to do so.

     (d)  Licensor shall maintain and apply for renewal of registration of the
Licensed Marks in connection with the Automotive Products, Automotive Services
and New Products and Services that are covered by this Agreement for a period
of three (3) years following the Effective Date unless Licensee consents in
writing not to maintain or renew such Licensed Marks. The Parties shall share
equally all fees, costs, and expenses, including reasonable attorneys’ fees,
incurred by Licensor in connection with maintaining and renewing such
registrations.

     (e)  For a period of three (3) years following the Effective Date, each of
Licensor and Licensee may designate up to twenty-five (25) additional
registrations to be added to the list of existing Licensed Marks that are
covered by this Agreement, which Licensor shall apply for with the applicable
governmental agency. The Parties shall share equally all fees, costs, and
expenses, including reasonable attorneys’ fees, incurred by Licensor in
connection with such registrations.

     (f)  Upon the expiration of the three (3) year period following the
Effective Date, either Party may propose that additional registrations be added
to the list of existing Licensed Marks that are covered by this Agreement. To
the extent that Licensor wishes to add an additional registration and Licensee
is not interested in such registration and/or does not wish to share equally
all fees, costs, and expenses, including reasonable attorneys’ fees, incurred
by Licensor in connection with any such registration, Licensor shall be free to
file such registration and such registration shall not be considered a Licensed
Mark. To the extent that Licensee wishes to add an additional registration and
Licensor

6

 

is not interested in such registration and/or does not wish to share
equally all fees, costs, and expenses, including reasonable attorneys’ fees,
incurred by Licensee in connection with any such registration, Licensee shall
be free to file such registration in its name and at its own expense and
Licensor shall cooperate with Licensee in connection with obtaining and
maintaining such registration, but Licensor shall have no rights with respect
to such registration.

     (g)  Upon the expiration of the three (3) year period following the
Effective Date, either Party may decline to share the fees, costs and expenses
incurred by the other Party in connection with maintaining and renewing
Licensed Marks registrations. To the extent it is Licensee that declines to
share the fees, costs and expenses incurred by Licensor, than said registration
shall be removed from the list of Licensed Marks. To the extent it is Licensor
that declines to pursue such registrations, then Licensor shall assign all
rights in any such registration to Licensee without cost or charge. For this
purpose, simultaneously with the execution of this Agreement, the parties will
enter into an assignment agreement in the form attached as Exhibit D hereto,
which will be held in escrow by Skadden, Arps, Slate, Meagher & Flom LLP.

     (h)  If Licensor ceases to use any or all of the Licensed Marks in its
business, it will assign all of its interests in such unused Licensed Marks to
Licensee in exchange for One Dollar ($1) per Licensed Mark. For this purpose,
simultaneously with the execution of this Agreement, the parties will enter
into an assignment agreement in the form attached as Exhibit D hereto, which
will be held in escrow by Skadden, Arps, Slate, Meagher & Flom LLP.

     (i)  Without limiting the foregoing, if Licensor fails to renew a
registration at least fifteen (15) days prior to the expiration date of the
existing registration, or fails to pay an annuity or other fee at least fifteen
(15) days prior to the due date, Licensee shall have the right to renew the
registration or pay the annuity or other fee, and to obtain reimbursement from
Licensor. If Licensor fails to reimburse within ten (10) days of demand by
Licensee, then Licensor shall transfer all rights to the registration(s) in
question to Licensee. For this purpose, simultaneously with the execution of
this Agreement, the parties will enter into an assignment agreement in the form
attached as Exhibit D hereto, which will be held in escrow by Skadden, Arps,
Slate, Meagher & Flom LLP.

     2.6 Infringement Claims.

     (a)  Licensor and the Licensee shall cooperate to police diligently the
Licensed Marks. The Licensee shall promptly notify Licensor in writing of any
unauthorized use, infringement, misappropriation, dilution, act of unfair
competition or other violation with respect to the Licensed Marks in connection
with the Licensed Products (an “Infringement”) of which it becomes aware or
suspects. As between the parties, Licensor shall have the sole initial right
to take, and to determine whether or not to take, any action(s) it deems
appropriate with respect to any Infringement at Licensor’s own cost. Licensee
shall fully cooperate with Licensor in connection with any such actions,
including by joining as a party to, or by providing documents or testimony.

7

 

     (b)  Licensor
shall notify Licensee within sixty (60) days of Licensee's notice
pursuant to Section 2.6(a) as to whether Licensor will initiate
action against the alleged infringement, and Licensor shall state its
reason if it declines to initiate such action.  Unless Licensor has a
commercially reasonable reason for not bringing an action (which
reason cannot be the cost of litigation) which outweighs Licensee's
reasons for wishing an action to be brought, or if Licensor fails to
provide notice within sixty (60) days, then Licensee may undertake enforcement action with
respect to such Infringement with prior written notice to Licensor, at
Licensee’s own expense. Neither Licensor nor Licensee shall enter into any
settlements in respect of Infringements without the other party’s prior written
consent, unless such settlement is for strictly monetary recovery from the
third party and/or injunctive relief running against the third party, and the
party (Licensor or Licensee) proposing to enter into the settlement is bearing
the entire cost of the action. The parties shall share in any recovery from
the third party in proportion to their participation in the cost of the
enforcement action, determined by out-of-pocket disbursements.

     (c)  Licensor shall have the right (but not the obligation) to undertake
and to control the defense at its own expense of any and all allegations and
claims, whether or in a registry proceeding or court, that Licensee’s use of
the Licensed Marks infringes, dilutes, misappropriates, or competes unfairly
with, any intellectual or industrial property right of any third
party, (each, a “Claim”). Licensee shall have the right to participate in (but not control)
the defense to a Claim, at its own expense. Any settlement of such action
shall require the consent of both Licensor and Licensee, which
consent shall not be unreasonably withheld, delayed or conditioned.

     (d)  Nothing in this Agreement shall constitute a representation or
warranty by either Licensor or Licensee, whether express or implied, that the
Licensed Marks are registrable, are valid and enforceable in any part of the
world, or that use of the Licensed Marks does not infringe upon the
intellectual or industrial property rights of any Person.

     III. CONFIDENTIALITY

     3.1 The parties agree that all information which is communicated from time
to time by them to each other and their respective Affiliates, agents,
attorneys, accountants, and employees in connection with this Agreement
(whether oral, electronic or written of any kind or nature), or which is
confidential and proprietary to the person disclosing the same shall be deemed
secret and confidential (“Confidential Information”). The parties agree that
the Confidential Information received by them from the other will be maintained
in confidence and that the same will not be disclosed to or used by any person,
firm, or undertaking except their own agents and employees, subcontractors or
distributors hereunder who need to know and/or use such Confidential
Information for the purposes of this Agreement. Any such person given access
to Confidential Information shall be subject to confidentiality provisions by
agreement with Licensor or Licensee no less restrictive than those set forth
herein. If either party is required by law to disclose any Confidential
Information it has received, it will take reasonable efforts to minimize the
extent of any required disclosure and to obtain an undertaking from the
recipient to maintain the confidentiality thereof. Either party must promptly
inform the other party of any information it believes comes within the
circumstances in the immediately preceding sentence. Each party will cooperate
with the other party, at the other party’s expense, in seeking to maintain the
confidentiality of such Confidential Information. Each party’s obligations
under this Section 3 shall terminate, with respect to any particular
information, five (5) years after the date of disclosure of such information,
provided, however,

8

 

that each party’s obligations under this Section 3 with
respect to any technical information that the providing party protects as a
trade secret shall be kept confidential for five (5) years or such longer
period as such information has not become publicly and readily available in the
marketplace to third parties without being subject to confidentiality
protections.

     3.2 All Confidential Information communicated under this Agreement in
writing shall be marked by the disclosing party with a conspicuous legend,
marking or stamp as Confidential Information of the party disclosing it.
Confidential Information communicated in non-written format shall be identified
by the disclosing party as confidential at the time of such communication and
promptly thereafter reduced to writing and marked as Confidential Information
by the party disclosing it.

     3.3 Nothing in this Section 3 shall require the recipient party to hold in
confidence or otherwise protect from unauthorized use of disclosure any
information that: (i) is known to the recipient at the time of receipt; or (ii)
is or becomes publicly available through no wrongful act of the recipient; or
(iii) is rightfully received by the recipient from a third party without
restriction and without breach of any agreement; or (iv) is independently
developed by the recipient without breach of this Agreement; or (v) is
furnished by the disclosing party to a third party without restriction; or (vi)
is not marked or labeled as being Confidential Information of the disclosing
party.

     IV.     TERM; TERMINATION

     4.1 Term. Unless earlier terminated as provided in this Agreement, this
Agreement shall remain in effect indefinitely.

     4.2 Material Breach. Either party may terminate this Agreement, effective
upon written notice, in the event the other party commits a material breach of
this Agreement and such breach is not cured within the applicable cure period
specified in this Agreement upon written notice thereof. If no cure period is
specified, then the cure period shall be (30) days after written notice from
the non-breaching party to the alleged breaching party. Termination of this
Agreement shall be in addition to any remedies that the parties may have under
this Agreement or as a matter of law or equity.

     4.3 Upon the transfer of all of the Licensed Marks to Licensee pursuant to
subsections 2.5(g), (h), or (i) hereto, this Agreement shall be terminated.

     4.4 Effect of Termination.

     (a)  Upon the termination of this Agreement, the rights and obligations of
the Parties shall terminate, except that the provisions of Section III and VII
shall survive termination of this Agreement. Following termination of this
Agreement, but subject to section 4.4(c) hereto, Licensee shall not use the
Licensed Marks or hold itself out as a licensee of Licensor or the Licensed
Marks. Notwithstanding the preceding sentence, but again subject to section
4.4(c) hereto, upon termination, Licensee shall have the right to use up all
inventories bearing the Licensed Marks, shall have a commercially reasonable
amount of time (in the context of the automotive industry) to change any molds,
dies and

9

 

the like that place the Licensed Marks onto product and to continue to
sell such products, and shall have the perpetual right to continue to use the
word “TRW” in its corporate name and in the name of any subsidiaries and
affiliates and in Internet Domain names used in the conduct of its business.

     (b)  Licensee acknowledges and agrees that, in the event that termination
was caused by its material breach of this Agreement and it has failed to cease
use of the Licensed Marks upon the termination of this Agreement (subject to
its rights set forth in section 4.4(a) hereto, then, in addition to all other
remedies to which Licensor may be entitled, Licensor shall be entitled to
equitable relief by way of temporary, preliminary, and permanent injunctive
relief, in an arbitration proceeding pursuant to Section VII or in any court of
competent jurisdiction.

     V.     DISCLAIMER OF WARRANTIES

     5.1 NEITHER PARTY MAKES ANY WARRANTY, EITHER EXPRESS OR IMPLIED, WITH
RESPECT TO THE LICENSED MARKS, INCLUDING ANY IMPLIED WARRANTIES ARISING AS A
MATTER OF LAW, FOR EXAMPLE, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR NON-INFRINGEMENT, AND EACH PARTY HEREBY WAIVES ALL SUCH
WARRANTIES. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY OR ON BEHALF OF
EITHER PARTY SHALL CREATE A WARRANTY UNDER THIS AGREEMENT. Nothing herein
shall be construed as limiting any representation or warranty made by either
Party under the Distribution Agreement or any remedies available with respect
to the breach thereof.

     5.2 LIMITATIONS ON DAMAGES. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO
THE OTHER OR ANY OTHER PERSON FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR
CONSEQUENTIAL DAMAGES INCURRED BY ANY PERSON, OR FOR ANY PUNITIVE OR EXEMPLARY
DAMAGES CAUSED, IN WHOLE OR IN PART, BY THE USE OF LICENSED MARKS, REGARDLESS
OF THE THEORY OF LIABILITY ON WHICH SUCH CLAIMS ARE BASED, AND EVEN IF SUCH
PARTY IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR CLAIMS.

     VI.     INDEMNIFICATION

     6.1 Licensee shall indemnify, defend, and hold Licensor, its Affiliates,
and its respective representatives, officers, directors, stockholders,
employees, and agents (the “Licensor Parties”), harmless from any and all
liability, claims, demands, causes of action, judgments, damages, and expenses
(including reasonable attorneys’ and experts’ fees

10

 

and costs) which the
Licensor Parties may incur or become liable for as a result of claims by any
Person arising from or in connection with Licensee’s, its sublicensees, and
their respective agents’ design, manufacture, provision, promotion,
distribution, and sale of the Licensed Products and Licensed
Services, provided, however, that Licensee shall not be
obligated to defend or hold harmless Licensor in the event that such
claims, demands, causes of action, judgments, damages, and expenses
arose out of willful misconduct, gross negligence, or bad faith by
Licensor.

     6.2 Licensor shall indemnify, defend, and hold Licensee, its Affiliates,
and its respective representatives, officers, directors, stockholders,
employees, and agents (the “Licensee Parties”), harmless from any and all
liability, claims, demands, causes of action, judgments, damages, and expenses
(including reasonable attorneys’ and experts’ fees and costs) which the
Licensee Parties may incur or become liable for as a result of claims by any
Person arising from or in connection with Licensor’s use of the Licensed Marks,
or from the use by any third party to whom Licensor is also licensing the
Licensed Trademarks in connection with the provision, promotion, distribution,
and sale of any such third party’s products and services,
provided, however, that Licensor shall not be
obligated to defend or hold harmless Licensee in the event that such
claims, demands, causes of action, judgments, damages, and expenses
arose out of willful misconduct, gross negligence, or bad faith by
Licensee.

     6.3 Promptly after receipt by any Licensor Party or Licensee Party (an
“Indemnified Party”) of notice of any action, proceeding, claim, or potential
claim (any of which is hereinafter individually referred to as a “Claim”) which
could give rise to a right to indemnification hereunder, the Indemnified Party
shall give the indemnifying party written notice describing the Claim in
reasonable detail, along with copies of any correspondence, court papers, or
other writings setting forth the Claim. The indemnifying party shall have the
right, at its option, to take over responsibility for the defense or settlement
of the Claim, at its own expense and by counsel of its own selection. The
Indemnified Party shall reasonably cooperate with the indemnifying party and its counsel
in the defense and/or settlement of any such Claim. If the indemnifying party
takes over the defense of the claim, the Indemnified Party shall have the
right, at its own expense, to participate in the defense of such Claim. No
Indemnified Party shall enter into any settlement with respect to such Claim
without the indemnifying party’s prior written consent, which
consent shall not be unreasonably withheld, delayed or conditioned. In the event the indemnifying party
declines to take over the defense of the Claim, the Indemnified Party shall have
the right to assume the defense of the Claim, and to resolve the Claim as it
finds appropriate, in its reasonable opinion, provided, however, that the Indemnified Party
shall not enter into any settlement with respect to such Claim
without the indemnifying party's prior written consent, which consent
shall not be unreasonably withheld, delayed, or conditioned. In the event it is ultimately determined that the
Claim in fact is covered by the indemnifications set forth in either Section
6.1 or 6.2 of this Agreement, the Indemnified Party shall be entitled to
recover from the indemnifying party in accordance with section 6.1 or 6.2.

     VII. DISPUTE RESOLUTION

     7.1 Resolution of Disputes. All disputes arising out of or relating to
this Agreement or the breach, termination or validity thereof or the parties’
performance hereunder or thereunder (“Dispute”) shall be resolved as provided
by this Section 7.1.

     (a)  Negotiation of Disputes.

		
	 	     (i) Any Party shall give the other Party written notice of any
Dispute. The parties shall attempt to resolve such Dispute promptly by
negotiation between executive officers who have authority to settle the
Dispute and who are

11

 

		
	 	at a higher level of management than the persons with
direct responsibilities for administration of this Agreement.

		
	 	     (ii) Within 15 days after delivery of the notice, the Party
receiving the notice shall submit to the other a written response. The
notice and the response shall include: (i) a statement of each Party’s
position and a summary of arguments supporting that position, and (ii)
the name and title of the executive officer who will represent that party
and of any other person who will accompany the executive officer during
the negotiations. Within 30 days after delivery of the disputing party’s
notice, the executive officers of both parties shall meet at a mutually
acceptable time and place, and thereafter as often as they reasonably
deem necessary, to attempt to resolve the Dispute.

     (b) 
Arbitration.

		
	 	     (i) If the Dispute has not been resolved by executive officer
negotiation within 45 days of the disputing party’s notice requesting
negotiation, or if the parties fail to meet within 30 days from delivery
of said notice, such Dispute shall on the demand of any party, be finally
settled under the Rules of Arbitration of the Center for Public Resources
(“CPR”) then in effect, except as modified herein or as mutually agreed
upon by the parties.

		
	 	     (ii) The arbitration shall be held in Cleveland, Ohio. The
arbitration proceedings shall be conducted, and the award shall be
rendered, in the English language.

		
	 	     (iii) There shall be three arbitrators. CPR shall appoint the
arbitrators from its national or regional panels in accordance with its
rules, with such input from the parties as is called for under the CPR
rules.

		
	 	     (iv) In rendering an award, the arbitral tribunal shall be required
to follow the substantive law of the jurisdiction designated by the
parties herein. This arbitration agreement and any award rendered
thereunder shall be governed by the United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, 1958, and the
Federal Arbitration Act, 9 USC § 1 et seq. The arbitral tribunal is not
empowered to award damages in excess of compensatory damages except in
the case of fraud, and each party hereby irrevocably waives any right to
recover punitive, exemplary or similar damages with respect to any
dispute except in the case of fraud.

		
	 	     (v) The award shall be final and binding upon the parties and shall
be the sole and exclusive remedy between the parties with regard to any
claim or counterclaim submitted to the arbitral tribunal. Judgment upon
any award may be entered in any court having jurisdiction thereof.

		
	 	     (vi) By agreeing to arbitration, the parties do not intend to
deprive any court of its jurisdiction to issue a pre-arbitral injunction,
pre-arbitral attachment or other order in aid of arbitration proceedings
and the enforcement of any

12

 

		
	 	award. Without prejudice to such provisional
remedies as may be available under the jurisdiction of a national court,
the arbitral tribunal shall have full authority to grant provisional
remedies or to order the parties to request that a court modify or vacate
any temporary or preliminary relief issued by such court, and to award
damages for the failure of any party to respect the arbitral tribunal’s
orders to that effect. The parties hereby unconditionally and
irrevocably submit to the non-exclusive jurisdiction of the state or
federal courts located in Cleveland, Ohio for the purpose of any
preliminary relief in aid of arbitration, or for enforcement of any
award, and hereby waive any objection to such jurisdiction including
without limitation objections by reason of lack of personal jurisdiction,
improper venue, or inconvenient forum.

		
	 	     (vii) Notwithstanding the foregoing, any Dispute regarding the
following is not required to be negotiated or arbitrated prior to seeking
injunctive relief from a court of competent jurisdiction: breach of any
obligation of confidentiality, infringement, misappropriation or misuse
of any intellectual property right. The parties acknowledge that their
remedies at law for such a breach or threatened breach would be
inadequate and, in recognition of this fact, upon such breach or
threatened breach, either party, without posting any bond, and in
addition to all other remedies which may be available, shall be entitled
to immediately seek or obtain equitable relief in the form of specific
performance, a temporary restraining order, a temporary or permanent
injunction or any other equitable remedy which may then be available.

     VIII. ASSIGNMENT; SUBLICENSING

     8.1 This Agreement may not be assigned by any party hereto without the
written consent of the other party, provided, however, that each party may
assign this Agreement to a purchaser of substantially all of the party’s shares
or assets, or to that party's parent, controlled subsidiary or
contracted affiliate, provided that such purchaser agrees to be bound by all of the terms
and conditions of this Agreement. No assignment shall relieve either Party of
any of its rights and obligations hereunder.

		
	 	     8.2 (a) Licensee shall have the right to sublicense the rights granted
hereunder to any Affiliate or entity in which Licensee holds an equity
interest of five percent (5%) or more for so long as such Affiliate or
entity in which Licensee holds such an equity interest remains an
Affiliate or entity in which Licensee holds such an equity interest, and
Licensee shall have the right to sublicense the rights granted hereunder
to any distributor, agent or similar Licensee representative, in each
case, on the following conditions: (i) There shall be a written
sublicense agreement containing obligations on the sublicensee’s part
that are no less stringent than those required of Licensee hereunder,
(ii) Licensee shall remain responsible to Licensor for the performance
of the sublicensee’s obligations under its sublicense, as if such
obligations were Licensee’s obligations hereunder, (iii) Licensee shall,
promptly and at Licensee’s sole expense, take all such steps necessary
for enforcing the obligations of the sublicensee under such sublicensee,
and carry out the reasonable requirements of Licensor to ensure that the
relevant provisions of the sublicense agreement are duly performed, (iv)
Licensor shall be an

13

 

		
	 	express third party beneficiary of each such
sublicense, (v) the sublicense agreement shall provide for automatic
termination in the event that this Agreement is terminated; and (vi)
Licensee shall provide notice to Licensor of the identity of each
sublicensee, and upon request, provide a copy of the related sublicense
(with financial information deleted). Licensee also shall have the right
to continue and renew the trademark license to Federal-Mogul Corporation.

		
	 	     (b) Licensee hereby agrees not to grant any further licenses to the
Licensed Marks for use in the TRW automotive business or to any person
who competes with Licensee in any business.

		
	 	     8.3 Assignments or sublicenses in violation of the foregoing provisions
shall be void and shall not confer any rights on the proposed transferee or
sublicensee.

     IX.     MISCELLANEOUS

     9.1 Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including facsimile transmission) and shall be
given (i) by personal delivery to the appropriate address as set forth below
(or at such other address for the party as shall have been previously specified
in writing to the other party), (ii) by reliable overnight courier service
(with confirmation) to the appropriate address as set forth below (or at such
other address for the party as shall have been previously specified in writing
to the other party), or (iii) by facsimile transmission (with confirmation) to
the appropriate facsimile number set forth below (or at such other facsimile
number for the party as shall have been previously specified in writing to the
other party) with follow-up copy by reliable overnight courier service the next
Business Day:

	 
	if to Licensor, to:
	 
	TRW Inc.

1900 Richmond Road

Cleveland, OH 44124 USA

Attention: Secretary

Telecopy: 216-291-7070
	 
	and
	 
	if to Licensee, to:
	 
	TRW Automotive Inc.

[Address]

Attention: [                ]

Telecopy:  [                ]

     All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5
p.m. (New York City time) and such day is a Business Day in the place of
receipt. Otherwise, any such notice,

14

 

request or communication shall be deemed
not to have been received until the next succeeding Business Day in the place
of receipt.

     9.2 Amendments and Waivers. This Agreement may not be modified or amended
except by an instrument or instruments in writing signed by an authorized
officer of each party. Except as otherwise provided in this Agreement, any
failure of any of the parties to comply with any obligation, covenant,
agreement or condition herein may be waived by the party entitled to the
benefits thereof only by a written instrument signed by an authorized officer
of the party granting such waiver, but such waiver or failure to insist upon
strict compliance with such obligation, covenant, agreement or condition shall
not operate as a waiver of, or estoppel with respect to, any subsequent or
other failure.

     9.3 Headings. The table of contents and the article, section, paragraph
and other headings contained in this Agreement are inserted for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

     9.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.

     9.5 Entire Agreement. This Agreement, and the Distribution Agreement,
constitute the entire agreement between the parties hereto with respect to the
subject matter hereof, and supersede and cancel all prior agreements,
negotiations, correspondence, undertakings, understandings and communications
of the parties, oral and written, with respect to the subject matter hereof.

     9.6 Governing Law. THIS AGREEMENT, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OR
CHOICE OF LAWS OR ANY OTHER LAW THAT WOULD MAKE THE LAWS OF ANY OTHER
JURISDICTION OTHER THAN THE STATE OF OHIO APPLICABLE HERETO.

     9.7 Publicity. No party shall, without the written consent of the other
party, mention the name of the other party in any publicity relating to or
arising out of this Agreement, which consent will not be unreasonably withheld.

     9.8 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     9.9 Fees and Expenses. Whether or not the transactions contemplated by
this Agreement are consummated, each party shall bear its own fees and expenses
incurred in connection with the transactions contemplated by this Agreement.

15

 

     9.10 Binding Nature; Third-Party Beneficiaries. This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and their
respective successors and permitted assigns. Nothing in this Agreement, express
or implied, is intended to or shall confer upon any other Person or Persons any
rights, benefits or remedies of any nature whatsoever under or by reason of
this Agreement.

     9.11 Severability. This Agreement shall be deemed severable; the
invalidity or unenforceability of any term or provision of this Agreement shall
not affect the validity or enforceability of this Agreement or of any other
term hereof, which shall remain in full force and effect, for so long as the
economic or legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any party. If it is ever
held that any restriction hereunder is too broad to permit enforcement of such
restriction to its fullest extent, each party agrees that such restriction may
be enforced to the maximum extent permitted by law, and each party hereby
consents and agrees that such scope may be judicially modified accordingly in
any proceeding brought to enforce such restriction.

     9.12 Specific Performance. The parties hereto agree that irreparable
damage would occur in the event that any provision of this Agreement was not
performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or equity.

     9.13 Construction. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of
any provisions of this Agreement.

     9.14 Interpretation. Any reference to any federal, state, local or
non-U.S. statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context otherwise requires.

16

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above by their respective officers
thereunto duly authorized.

	 
	TRW INC
	 
	By:_________________________________
	     
Name:
	      Title:
	 
	 
	TRW AUTOMOTIVE INC
	 
	By:_________________________________
	     
Name:

17

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