Document:

Form of Guarantee dated March 27, 2003

Exhibit 4.2 
 
 
GUARANTEE 
 
GUARANTEE dated as of March 27, 2003 (this
“Guarantee”) made by Northrop Grumman Corporation, a Delaware corporation (“Guarantor”), in favor of and for the benefit of JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as trustee (the
“Trustee”) for the Holders (as such term is defined in the Indenture referred to below) of the debt securities (the “Notes”) specified on Schedule A attached hereto, as amended from to time to time by the
Company, of Northrop Grumman Space & Mission Systems Corp. (formerly TRW Inc.), an Ohio corporation (the “Company”). The Notes and any other debt securities previously issued and from time to time hereafter issued by the Company
under the Indenture collectively are referred to as the “Securities.” 
 
WHEREAS, the Company entered into an Indenture dated as of May 1, 1986 between the Company and the predecessor trustee to the Trustee, as supplemented by the First Supplemental Indenture dated August
24, 1989, the Second Supplemental Indenture dated June 2, 1999, the Third Supplemental Indenture dated June 2, 1999, the Fourth Supplemental Indenture dated June 2, 1999, the Fifth Supplemental Indenture dated June 2, 1999, the Sixth Supplemental
Indenture dated June 23, 1999 and the Seventh Supplemental Indenture dated June 23, 1999 (as so supplemented, and as further amended, modified and supplemented from time to time with respect to the Securities, the “Indenture”);

 
WHEREAS, to date the Company has offered and
sold in excess of $4 billion aggregate principal amount of Securities under the Indenture, of which an aggregate of $4,081,390,000 principal amount is outstanding as of the date hereof; 
 
WHEREAS, the Company from time to time hereafter may offer and sell additional Securities pursuant to the
Indenture; 
 
WHEREAS, as the result of the merger
of a wholly owned subsidiary of the Guarantor with and into the Company on December 11, 2002, the Company currently is a wholly owned subsidiary of the Guarantor; 
 
WHEREAS, the Company and its affiliates (including, without limitation, the Guarantor) derive, and expect to
continue to derive, substantial direct and indirect benefit from the transactions financed by the issuance and sale of the Notes and any other Securities that hereafter may be issued; 
 
WHEREAS, the Guarantor desires to guarantee the obligations of the Company with respect to the Securities, on
the terms and subject to the conditions set forth herein; and 
 
WHEREAS, capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Indenture. 
 
NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the Guarantor hereby agrees as follows: 
 

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SECTION
1.     Guarantee; Limitation of Liability. 
 
        (a) The Guarantor irrevocably and unconditionally guarantees as a primary obligor and not merely as a surety, to the Trustee and to each Holder of a Security authenticated and
delivered by the Trustee the due and punctual payment of the principal of and any premium and interest on any and all Securities (including, in case of default, interest on overdue principal and interest and in any event regardless of whether such
Security is listed on Schedule A attached hereto) and including any additional interest required to be paid according to the terms of the Securities or the Indenture, when due, whether at stated maturity, upon redemption or repayment, upon
declaration of acceleration or otherwise according to the terms of the Securities or the Indenture and the due and punctual performance of all other payment obligations of the Company to such Holder or the Trustee, all in accordance with the terms
of the Securities and the Indenture (such payment obligations being the “Guaranteed Obligations”), and hereby agrees to pay any and all expenses (including reasonable counsel fees and expenses) incurred by such Holder or the Trustee
in enforcing any rights under this Guarantee. Without limiting the generality of the foregoing, the Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Company to such
Holder or the Trustee under the Securities or the Indenture but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company because it is the intention of
the Guarantor, the Trustee and the Holders that the Guaranteed Obligations should be determined without regard to any rule of law or order that might relieve the Company of any portion of the Guaranteed Obligations. 
 
        (b)
Notwithstanding anything to the contrary in this Agreement, the Guarantor, and the Trustee and each Holder by accepting the benefits of this Guarantee, each hereby confirms that it is its respective intention that the guarantee by the Guarantor
pursuant to this Guarantee, together with each other guarantee by such Guarantor of Participating Indebtedness (as defined below), shall not constitute a fraudulent transfer or conveyance for purposes of any applicable provisions of Title 11 of the
United States Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act, or any similar federal or state law. To effectuate the foregoing intention, the obligations of the Guarantor under this Guarantee and each other
guarantee of Participating Indebtedness shall be limited, collectively, to such maximum amount as will, after giving effect to such maximum amount and all other liabilities of such Guarantor, contingent or otherwise, that are relevant under such
laws, and after giving effect to any rights to subrogation, reimbursement, indemnification or contribution of such Guarantor pursuant to applicable law or pursuant to any agreement, result in the obligations of such Guarantor in respect of such
maximum amount not constituting a fraudulent transfer or conveyance. The Trustee and each Holder by accepting the benefits of this Guarantee hereby confirms its intention that, in the event of a bankruptcy, reorganization or other similar proceeding
of the Guarantor in which concurrent claims are made upon such Guarantor hereunder and under any other guarantee of Participating Indebtedness, to the extent such claims will not be fully satisfied, each such claimant with a valid claim against the
Guarantor shall be entitled to a ratable share of all payments by such Guarantor in respect of such concurrent claims. For purposes of this Section l(b), “Participating Indebtedness” means any Indebtedness (as defined below)
of the Company that is guaranteed by such Guarantor pursuant to a guarantee (i) the incurrence of which is not prohibited by the terms of the Indenture or any agreement governing any other Participating Indebtedness then outstanding (or, if so
prohibited 
 

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by the Indenture or any such
agreement, is permitted as a result of a consent or waiver thereunder) and (ii) that contains a limitation of liability and confirmation of intention regarding ratability of payments on substantially the terms set forth in this Section l(b).
“Indebtedness” means any indebtedness, whether or not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures or similar instruments or letters of credit and, to the extent not otherwise included, the
guarantee by the Company of any indebtedness of any other Person. 
 
        (c) Notwithstanding anything to the contrary contained herein, the liability of the Company in respect of the Securities guaranteed by the Guarantor hereunder shall not be
limited by the terms of Section l(b). 
 
SECTION 2.    Guarantee Absolute. The Guarantor guarantees that the Guaranteed Obligations will be paid or performed strictly in accordance with the terms of the Securities and the Indenture, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Holder with respect thereto. The obligations of the Guarantor under this Guarantee are independent of the Guaranteed
Obligations, and a separate action or actions may be brought and prosecuted against such Guarantor to enforce this Guarantee, irrespective of whether any action is brought against the Company or whether the Company is joined in any such action or
actions. The liability of the Guarantor under this Guarantee shall be absolute and unconditional irrespective of: 
 
        (a) any lack of validity or enforceability of the Securities or the Indenture or any
agreement or instrument relating to the Securities or the Indenture or any failure to enforce the provisions thereof; 
 
        (b) any renewal, extension or other change in the time, manner or place of payment or
performance of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to the departure from the Securities or the Indenture; 
 
        (c) any settlement, compromise, release or discharge, or
acceptance or refusal of any offer of performance with respect to, or any substitution for, the Guaranteed Obligations or any agreement related thereto and/or any subordination of the payment of the same to the payment of any other obligations;

 
        (d) any taking, exchange, release or non-perfection of any mortgage, lien, pledge, claim, charge, security interest or encumbrance of any kind, whether or not filed, recorded or
otherwise perfected under applicable law (each a “Lien”), in any real or personal property to secure payment or performance of any or all of the Guaranteed Obligations (whether now or hereafter granted, the
“Collateral”), or any taking, release, amendment, waiver of, or consent to the departure from, any other guarantee, for all or any of the Guaranteed Obligations; 
 
        (e) any manner of application of the Collateral, or proceeds
thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral or any other assets of the Company or any Subsidiary; 
 
        (f) any change, restructuring or termination of the corporate
structure or existence of the Company or any Subsidiary; or 
 

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        (g) any other circumstance (including, without limitation, any statute of limitations) that might otherwise constitute a defense available to, or a discharge of, the Company or the
Guarantor of the Guaranteed Obligations. 
 
This Guarantee shall
continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any Holder or the Trustee upon the insolvency, bankruptcy or reorganization
of the Company or for any other reason, all as though such payment had not been made. The Guarantor further agrees, to the fullest extent that it may lawfully do so, that, as between such Guarantor on the one hand, and the Holders and the Trustee,
on the other hand, (i) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Seven of the Indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition extant under any
applicable bankruptcy law preventing such acceleration in respect of the obligations guaranteed hereby and (ii) in the event of any declarations of acceleration of such obligations as provided in Article Seven of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the Guarantor for the purpose of this Guarantee. In addition, without limiting the foregoing provision, upon effectiveness of an acceleration under Article Seven of the
Indenture, the Trustee shall promptly make a demand for payment on the Securities under this Guarantee as provided for hereunder and not discharged. 
 
SECTION 3.    Waivers. 
 
        (a) The Guarantor hereby waives: 
 
(i) promptness, diligence, presentment, notice
of acceptance and any other notice with respect to any of the Guaranteed Obligations and this Guarantee 
 
(ii) any requirement to file any claims with a court in the event of merger or bankruptcy of the Company or any guarantor
of the Guaranteed Obligations; 
 
(iii) any right to require a proceeding first against the Company or any other guarantor of the Guaranteed Obligations; 
 
(iv) the benefit of discussion or protest or notice with respect to any such Securities or the Indebtedness evidenced
thereby; 
 
(v) any requirement
that any Holder or the Trustee protect, secure, perfect or insure any Lien or any Collateral subject thereto or exhaust any right or take any action against the Company or any other Person or any Collateral; 
 
(vi) any defense arising by reason of the
incapacity, lack of authority or any disability or other defense of the Company; 
 
(vii) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither
larger in amount nor in any other respects more burdensome than that of the principal; 
 

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(viii) any defense based upon any errors or omissions of the Trustee or the Holders’ administration of the Guaranteed Obligations; and 
 
(ix) any rights to set-offs, recoupments and counterclaims. 
 
        (b) The Guarantor hereby irrevocably waives all right to
trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Securities or the Indenture, the transactions contemplated thereby or the actions of the Trustee in the
negotiation, administration, performance or enforcement thereof. 
 
SECTION 4.    Financial Condition of the Company. The Guarantor represents and warrants that it presently is informed of the financial condition of the Company and of all other circumstances which a
diligent inquiry would reveal and which bear upon the risk of nonpayment of the Guaranteed Obligations. The Guarantor hereby covenants that it will continue to keep itself reasonably informed of the Company’s financial condition and of all
other circumstances which bear upon the risk of nonpayment and hereby waives any duty on the part of the Trustee or any Holder to disclose or discuss with such Guarantor its assessment, or such Guarantor’s assessment, of the financial condition
of the Company. 
 
SECTION
5.    Subrogation. The Guarantor will not exercise any rights that it may acquire by way of subrogation under this Guarantee, by any payment made hereunder or otherwise, until all the Guaranteed Obligations shall have been
indefeasibly paid in full in cash. If any amount shall be paid to the Guarantor on account of any such subrogation rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held in trust for the
benefit of the Holders and the Trustee and shall forthwith be paid to the Trustee, on behalf of the Holders, to be credited and applied to the Guaranteed Obligations, whether matured or unmatured. 
 
SECTION 6.    Amendments, Etc. No
amendment or waiver of any provision of this Guarantee and no consent to any departure by the Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Trustee, on behalf of the Holders, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No such amendment or waiver shall require the consent or approval of any Holder, other than amendments or waivers which materially and
adversely affect the rights of the Holders to payment of the Guaranteed Obligations by the Guarantor as provided herein, which shall require the consent of the Holders of a majority of the then outstanding principal amount of the Securities.

 
SECTION 7.    Notices,
Etc. All notices and other communications provided for hereunder shall be in writing and delivered in person or mailed by first-class mail, if to the Guarantor, addressed to it at 1840 Century Park East, Los Angeles, California 90067, Attention:
Vice President and Secretary, if to the Company, addressed to it c/o the Guarantor at 1840 Century Park East, Los Angeles, California 90067, Attention: Vice President and Secretary, if to any Holder, addressed to it c/o the Trustee at 4 New York
Plaza, 15th Floor, New York, New York 10004, Attention: Institutional Trust Services, and if to the Trustee, addressed to it at 4 New York Plaza, 15th Floor, New York, New York 10004, Attention: Institutional Trust Services, or as to any party at
such other address as shall be designated by such party in a written 
 

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notice to each other party.
All such notices and other communications shall, when mailed by first class mail, be effective when deposited in the first class mails. 
 
SECTION 8.    No Waiver; Remedies. No failure on the part of any Holder or the Trustee to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law. 
 
SECTION 9.    Continuing Guarantee. This Guarantee is a continuing guarantee and shall (a) remain in full force and effect until the earlier of (i) the payment in full
(including deemed payment resulting in defeasance and discharge of the Company pursuant to Section 13.02 of the Indenture) of the Guaranteed Obligations and all other amounts payable under this Guarantee and (ii) the termination of this Guarantee
pursuant to Section 10 of this Guarantee, (b) subject to the terms hereof, be binding upon the Guarantor, its respective successors and assigns and (c) inure to the benefit of and be enforceable by each Holder and the Trustee and their respective
successors, transferees and permitted assigns. 
 
SECTION 10.    Termination of the Guarantee. This Guarantee automatically shall terminate and the Guarantor thereafter shall be relieved of all obligations and covenants under the Indenture and this
Guarantee if the Guarantor consolidates with or merges into another entity, or conveys, transfers or leases its properties and assets substantially as an entirety to any Person in a transaction (or series of related transactions) in which:

 
        (a) any successor entity is a corporation, partnership or trust organized and validly existing under the laws of the United States or any state thereof; 
 
        (b) the
successor entity assumes the Guarantor’s obligations under this Guarantee; 
 
        (c) after giving effect to the transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of
Default, has occurred and is continuing; and 
 
        (d) the Guarantor delivers to the Trustee certificates and opinions to the effect that the transaction complies with, or is not prohibited by, the Indenture. 
 
Upon any such consolidation or merger or conveyance, transfer
or lease of the properties and assets of the Guarantor as an entirety to any Person, the successor Person will succeed to, and be substituted for, such Guarantor under the Indenture and this Guarantee. 
 
 
SECTION 11.    Governing Law. This Guarantee shall be governed by, and construed in accordance with, the law of the State of New York. 
 
SECTION 12.    Counterparts. This Guarantee may be executed by facsimile signature
and in two or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. 
 

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IN WITNESS
WHEREOF, the Guarantor has caused this Guarantee to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. 
 
 

	 NORTHROP GRUMMAN CORPORATION

	
	 By:
	  	 
	 	  	

	 	  	 Name:
 Title
	  	 
	
	 By:
	  	 
	 	  	

	 	  	 Name:
 Title:
	  	 

 

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EXECUTION COPY

 
Schedule A 
 
Northrop Grumman Space & Mission Systems Debt Securities

 
 

	 CUSIP / ISIN
	  	 Principal
	  	 Rate
	  	 Maturity
	  	 Indenture
	  	 Description

	

	
	 87265 C AV 2
	  	 $    5,530,000.00
	  	 6.500%
	  	 17-Mar-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #1

	 87265 C AW 0
	  	 3,000,000.00
	  	 6.570%
	  	 17-Mar-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #2

	 87265 C AX 8
	  	 15,000,000.00
	  	 6.600%
	  	 18-Mar-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #3

	 87265 C AZ 3
	  	 12,000,000.00
	  	 6.600%
	  	 31-Mar-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #5

	 87265 C BA 7
	  	 2,000,000.00
	  	 6.530%
	  	 13-May-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #6

	 87265 C BC 3
	  	 5,000,000.00
	  	 6.540%
	  	 19-May-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #8

	 87265 C BE 9
	  	 10,000,000.00
	  	 6.580%
	  	 23-Jun-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #10

	 87265 C BF 6
	  	 10,000,000.00
	  	 6.550%
	  	 23-Jun-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #11

	 87265 C BG 4
	  	 4,000,000.00
	  	 6.390%
	  	 07-Jul-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #12

	 87265 C BH 2
	  	 16,000,000.00
	  	 6.380%
	  	 07-Jul-03
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #13

	 87265 C BM 1
	  	 15,000,000.00
	  	 6.940%
	  	 30-Mar-04
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #17

	 87265 C BN 9
	  	 10,000,000.00
	  	 7.000%
	  	 31-Mar-04
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series B MTN #18

	 872649 BF 4*
	  	 700,000,000.00
	  	 6.625%
	  	 01-Jun-04
	  	 Third Supplement of 6/2/1999
	  	 144A

	 872649 AN 8
	  	 200,000,000.00
	  	 6.050%
	  	 15-Jan-05
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series C MTN

	 872649 BL 1
	  	 500,000,000.00
	  	 7.625%
	  	 15-Mar-06
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Shelf Takedown

	 872649 BK 3
	  	 500,000,000.00
	  	 8.750%
	  	 15-May-06
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Shelf Takedown

	 87265 C BP 4
	  	 50,000,000.00
	  	 7.370%
	  	 18-Apr-07
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series C MTN #1

	 87265 C BQ 2
	  	 30,000,000.00
	  	 6.730%
	  	 11-Jul-07
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series C MTN #2

	 87265 C BU 3
	  	 100,000,000.00
	  	 6.300%
	  	 15-May-08
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series D MTN #4

	 87265 C BR 0
	  	 45,000,000.00
	  	 6.380%
	  	 19-May-08
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series D MTN #1

	 87265 C BT 6
	  	 8,000,000.00
	  	 6.310%
	  	 27-May-08
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series D MTN #3

	 87265 C BS 8
	  	 6,000,000.00
	  	 6.320%
	  	 27-May-08
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series D MTN #2

	 872649 BG 2
	  	 750,000,000.00
	  	 7.125%
	  	 01-Jun-09
	  	 Fourth Supplement of 6/2/1999
	  	 144A

	 872649 AP 3
	  	 150,000,000.00
	  	 6.250%
	  	 15-Jan-10
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series C MTN

	 87265 C AD 2
	  	 30,000,000.00
	  	 9.250%
	  	 30-Dec-11
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series A MTN #4

	 87265 C AC 4
	  	 5,000,000.00
	  	 9.250%
	  	 12-Jan-20
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series A MTN #3

	 87265 C AH 3
	  	 99,860,000.00
	  	 9.350%
	  	 04-Jun-20
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series A MTN #9

	 87265 C AU 4
	  	 100,000,000.00
	  	 9.375%
	  	 15-Apr-21
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series A MTN #21

	 872649 AQ 1
	  	 150,000,000.00
	  	 6.650%
	  	 15-Jan-28
	  	 May 1, 1986—First Supplement of 8/24/1989
	  	 Series C MTN

	 872649 BH 0
	  	 550,000,000.00
	  	 7.750%
	  	 01-Jun-29
	  	 Fifth Supplement of 6/2/1999
	  	 144A

 

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

               FIRST AMENDMENT dated as of November 26, 2002 (this
          "Amendment"), to the Five-Year Revolving Credit Agreement dated as of
          March 30, 2001 (the "Credit Agreement"), among NORTHROP GRUMMAN
          CORPORATION, a Delaware corporation formerly known as NNG, Inc. (the
          "Company"); NORTHROP GRUMMAN SYSTEMS CORPORATION, a Delaware
          corporation formerly known as Northrop Grumman Corporation ("Northrop
          Operating"); LITTON INDUSTRIES, INC., a Delaware corporation ("Litton
          Operating" and, together with the Company and Northrop Operating, the
          "Borrowers"); the LENDERS (as defined in Article 1 of the Credit
          Agreement), JPMORGAN CHASE BANK and CREDIT SUISSE FIRST BOSTON, as
          Co-Administrative Agents, JPMORGAN CHASE BANK, as Payment Agent,
          SALOMON SMITH BARNEY INC., as Syndication Agent, and THE BANK OF NOVA
          SCOTIA and DEUTSCHE BANC SECURITIES INC. (formerly known as Deutsche
          Banc Alex. Brown Inc.), as Co-Documentation Agents.

     A. Pursuant to the Credit Agreement, the Lenders have extended, and have
agreed to extend, credit to the Borrowers.

     B. The Borrowers have informed the Lenders that the Company intends to
acquire all of the outstanding equity interest of TRW Inc., an Ohio corporation
("TRW"), pursuant to the Agreement and Plan of Merger (the "TRW Merger
Agreement") dated as of June 30, 2002, by and among TRW, the Company and
Richmond Acquisition Corp., a newly formed Ohio corporation and wholly owned
subsidiary of the Company ("Richmond Acquisition"). Pursuant to the TRW Merger
Agreement, Richmond Acquisition shall be merged with and into TRW and TRW will
become a wholly owned subsidiary of the Company (the "TRW Acquisition").

     C. The Borrowers have further informed the Lenders that, following the TRW
Acquisition, the Company intends to cause TRW to sell, spin off to the
shareholders of the Company or otherwise transfer or dispose of all or a portion
of TRW automotive business (any such transfer or disposition being called the
"TRW Automotive Business Disposition").

     D. In connection with the foregoing, the Borrowers have requested that the
Lenders agree to amend certain provisions of the Credit Agreement as provided
herein. The Lenders whose signatures appear below, constituting the Required
Lenders, are willing, on the terms and subject to the conditions set forth
herein, so to amend the Credit Agreement.

     E. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Credit Agreement as amended hereby.

     Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Amendments. (a) Section 1.01 of the Credit Agreement is hereby
amended by:

     (i) inserting in the appropriate alphabetical order the following new
definitions:

          "Amendment  No. 1" means Amendment No. 1 and Agreement dated as of
     November 26, 2002, to this Agreement.

<PAGE>

                                                                               2

          "JPMorgan" means JPMorgan Chase Bank and its successors.

          "Subsidiary Guarantee Agreement" means a Subsidiary Guarantee
     Agreement substantially in the form of Exhibit A to Amendment No. 1,
     between a Subsidiary and the Co-Administrative Agents, acting on behalf of
     the Lenders.

          "TRW" means TRW Inc., an Ohio corporation.

          "TRW Automotive Business Disposition" shall mean any sale, spin-off to
     the shareholders of the Company or other transfer or disposition of all or
     a portion of TRW's automotive business in which the consideration received
     by the Company and its Subsidiaries (other than Subsidiaries that are part
     of TRW's automotive business) is not less than $2,000,000,000. For purposes
     of the foregoing, (a) consideration received by the Company and its
     Subsidiaries will be deemed to include, without duplication, the amount of
     any cash consideration received, the fair market value at the closing of
     such disposition of any non-cash consideration received and the principal
     amount of any Indebtedness of the Company or TRW that is (i) assumed by one
     or more of the entities disposed of, (ii) assumed by the purchaser of all
     or a portion of TRW's automotive business or (iii) refinanced with the
     proceeds of Indebtedness issued by one or more of the entities disposed of;
     provided, in the case of Indebtedness referred to in the foregoing clauses
     (i) and (ii), that, after giving effect to such disposition, neither the
     Company nor any of its Subsidiaries shall remain directly or contingently
     liable for, and none of the respective assets of such persons will be
     subject to any Lien securing, the payment of such Indebtedness, and (b)
     consideration received by the Company and its Subsidiaries will not be
     deemed to include any interest in TRW's automotive business that is
     retained by the Company or any of its Subsidiaries in connection with the
     TRW Automotive Business Disposition.

     (ii) deleting the definition of "Chase".

     (b) The definition of the term "Loan Documents" set forth in Section 1.01
of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

          "Loan Documents" shall mean this Agreement, each promissory note, if
     any, delivered pursuant to this Agreement, and each Subsidiary Guarantee
     Agreement, as such documents may be amended, modified, supplemented or
     restated from time to time.

     (c) Section 1.05 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

          SECTION 1.05. Certain Financial Covenant Calculations. (a) For
     purposes of determining the Funded Debt to Consolidated EBITDA Ratio and
     the Consolidated Fixed Charge Coverage Ratio for the four-quarter periods
     ending at the first three fiscal quarter ends of the Company following the
     closing of the TRW Acquisition (each such four-quarter period being called
     a "Designated Period"):

               (i) Consolidated EBITDA and Capital Expenditures shall be
          determined on a pro forma basis combining (A) the results of the
          Company and its consolidated subsidiaries (other than TRW and its
          subsidiaries) for such Designated Period and (B) the segment results
          reported by TRW (or, following the TRW Acquisition, the Company) for
          TRW's automotive business, space and electronics business and systems
          business, including any such business that is accounted for as a
          discontinued operation (but only, in the case of each such business of

<PAGE>

                                                                               3

          TRW, to the extent that such business continues to be wholly owned by
          TRW at the end of such Designated Period); and

               (ii) Interest Expense shall be determined on a pro forma basis
          combining (A) the results of the Company and its consolidated
          subsidiaries (including the results of TRW and its subsidiaries for
          fiscal quarters ending after the closing of the TRW Acquisition, but
          not for fiscal quarters ended prior to such closing) and (B) for each
          fiscal quarter ended prior to the closing of the TRW Acquisition, an
          amount equal to (1) 7% of the Funded Debt of TRW and its subsidiaries
          at the end of such fiscal quarter multiplied by (2) a fraction of
          which the numerator is the number of days in such fiscal quarter and
          the denominator is 365.

     The Company agrees that the financial statements delivered by it pursuant
     to Section 5.01 for each of the first three fiscal quarters ending after
     the closing of the TRW Acquisition will include or be accompanied by
     consolidating and segment information sufficient to permit the computations
     required by the foregoing paragraphs (i) and (ii).

          (b) Without limiting the foregoing (but subject to the final
     parenthetical in paragraph (a)(i) above), for purposes of all financial
     computations under Sections 6.08, 6.09 and 6.10 of this Agreement following
     the closing of the TRW Acquisition, balance sheet and income statement
     items that would otherwise be excluded from the Company's consolidated
     balances and results because they relate to discontinued operations of TRW
     and its subsidiaries will be included in such balances and results as if
     they related to continuing operations of TRW and such subsidiaries.

          (d) Section 6.02 of the Credit Agreement is hereby amended by:

          (i) replacing the proviso in paragraph (d) thereof with the following:

          "provided that the aggregate fair market value of all assets sold,
          transferred or otherwise disposed of in reliance upon this clause (d)
          after March 30, 2001, shall not exceed an amount equal to 15% of the
          consolidated assets of the Company as of September 30, 2002;"

          (ii) deleting the word "and" at the end of paragraph (c) thereof,
     inserting the word "and" at the end of paragraph (d) thereof and inserting
     the following new paragraph (e):

               "(e) the TRW Automotive Business Disposition;".

          (e) The first paragraph of Section 6.04(d) of the Credit Agreement is
     hereby amended to read as follows:

               "(d) the Company or any of the Subsidiaries may (i) acquire the
          business of, or all or any significant part of the Property of, or all
          or any significant part of the capital stock of, or be a party to any
          acquisition of, any Person engaged in the same line of business as the
          Company and its Subsidiaries, taken as a whole, or a related line of
          business (whether directly or through the merger of a Wholly-Owned
          Subsidiary with that Person) and (ii) complete the TRW Acquisition,
          subject, in each case, to the following:"

<PAGE>

                                                                               4

     (e) Section 6.05 of the Credit Agreement is hereby amended by deleting the
word "and" at the end of paragraph (f), by relettering paragraph (g) as
paragraph (h) and by inserting after paragraph (f) the following new paragraph
(g):

          "(g) Liens on assets of TRW and its subsidiaries existing at the time
     of the TRW Acquisition and not created in contemplation of such
     Acquisition, as set forth on the attached Schedule 6.05(g); and"

     (f) Section 6.06(g) of the Credit Agreement is hereby amended by changing
the percentages "5%" and "2%" to "7%' and "3%", respectively.

     (g) Section 6.07(a)(xiii) of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

          "(xiii) additional Indebtedness of the Company and the Subsidiaries
     (including Capital Lease Obligations and other Indebtedness secured by
     Liens permitted under clauses (e) and (f) of Section 6.05 hereof) in an
     aggregate amount at any one time outstanding not exceeding $750,000,000."

     (h) Section 6.07(b) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

          "(b) The Borrowers will not permit the Indebtedness of all of the
     Subsidiaries that are not Borrowers (other than Indebtedness (a) owing to
     the Company or another Subsidiary and (b) of any Subsidiary that shall have
     executed and delivered to the Payment Agent a Subsidiary Guarantee
     Agreement together with evidence satisfactory to the Payment Agent of the
     power and authority of such Subsidiary to enter into such Agreement) to
     exceed $425,000,000 in the aggregate at any one time outstanding."

     (i) Section 6.10 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

          SECTION 6.10. Fixed Charge Coverage Ratio. The Company will not permit
     the Fixed Charge Coverage Ratio as of any Fiscal Date to be less than 1.25x
     until the earlier of (x) the completion of the TRW Automotive Business
     Disposition and (y) December 30, 2003. At any time thereafter, or in the
     event that the TRW Acquisition shall not have been consummated, the Company
     will not permit the Fixed Charge Coverage Ratio as of any Fiscal Date in
     any period set forth below to be less than the ratio set forth below
     opposite such period:
<TABLE>
<CAPTION>

                  Fiscal Date                          Ratio
                  -----------                          -----
     <S>                                               <C>
     December 31, 2002 - September 30, 2003            1.75x
     December 31, 2003 - September 30, 2004            2.00x
     December 31, 2004 and each Fiscal Date            2.25x
</TABLE>

     (j) The following new Section 5.08 is inserted at the end of Article V of
the Credit Agreement:

          SECTION 5.08. Completion of TRW Automotive Business Disposition. In
     the event the TRW Acquisition shall be completed, the Company will cause
     the TRW Automotive Business Disposition to be completed not later than
     December 31, 2003.

<PAGE>

                                                                               5

     (k) Clause (d) of Article VII of the Credit Agreement is amended by
inserting "5.08," immediately prior to "Section 10.14" therein.

     (l) References to "Chase" in the Credit Agreement shall be deleted and
"JPMorgan" substituted therefor.

     (m) Schedule 6.05(g) hereto is substituted for the existing Schedule
6.05(g) to the Credit Agreement.

     (n) The Lenders agree, notwithstanding any provision to the contrary in the
Credit Agreement, that Litton Operating may be merged with and into Northrop
Operating in a transaction in which no Person other than the Company receives
any consideration, and that, from and after the effectiveness of such merger,
all references in the Credit Agreement to Litton Operating shall be deemed to be
references to Northrop Operating.

     SECTION 2. Representations and Warranties. To induce the Lenders to enter
into this Amendment, the Borrowers represent and warrant to such parties that
(a) the representations and warranties set forth in Article III of the Credit
Agreement are true and correct in all material respects on and as of the date
hereof (and will be true and correct after giving effect to the TRW
Acquisition), except to the extent such representations and warranties expressly
relate to an earlier date; and (b) no Default or Event of Default has occurred
and is continuing (or will have occurred and be continuing after giving effect
to the TRW Acquisition).

     SECTION 3. Amendment Fee. The Company agrees to pay in immediately
available funds to each Lender that executes and delivers to the Payment Agent
(or its counsel) a copy of this Amendment at or prior to 5:00 p.m., New York
City time, on November 26, 2002, an amendment fee (the "Amendment Fee") in an
amount equal to 0.10% of the amount of such Lender's Revolving Commitment
(whether used or unused) as of the date hereof; such Amendment Fee will be
payable on November 27, 2002. Notwithstanding the foregoing, the Amendment Fee
shall not be payable unless this Amendment shall have been executed and
delivered by the Required Lenders. Once paid, the Amendment Fee shall not be
refundable.

     SECTION 4. Conditions to Effectiveness. The amendments provided for in
Section 1 shall become effective on the date (the "Amendment Effective Date") on
which the following conditions are satisfied; provided that the effectiveness of
the amendments set forth in paragraphs (a) (other than the provisions of
paragraph (a)(i) adding definitions of TRW and TRW Automotive Business
Disposition), (b), (d)(i), (h), (l) and (n) of Section 1 will be subject only to
the satisfaction of the condition set forth in paragraph (a) below:

     (a) the Payment Agent shall have received counterparts of this Amendment
that, when taken together, bear the signatures of the Borrowers and the Required
Lenders;

     (b) the TRW Acquisition shall have been or shall on the Amendment Effective
Date be consummated on substantially the terms set forth in the TRW Merger
Agreement as in effect on the date hereof;

     (c) the existing Indebtedness and all credit and similar agreements of TRW
(other than the Indebtedness and agreements listed on Schedule 1) shall have
been or shall on the Amendment Effective Date be repaid and terminated, and all
Liens securing such Indebtedness (other than the Liens listed on Schedule
6.05(g) hereto) shall have been or shall on the Amendment Effective Date be
released, and the Payment Agent shall have received such evidence as it shall
have reasonably requested as to the satisfaction of such condition;

     (d) the Company shall have delivered to the Payment Agent with respect to
the TRW Acquisition a certificate of a senior accounting or financial officer
satisfying the requirements of Section 6.04(d) of the Credit Agreement and
confirming the accuracy as of the Amendment Effective Date of the
representations set forth in Section 2; and

<PAGE>

                                                                               6

     (e) TRW shall have executed and delivered to the Payment Agent a Subsidiary
Guarantee Agreement together with evidence satisfactory to the Payment Agent of
the power and authority of TRW to enter into such Agreement.

     Notwithstanding the foregoing, if the Amendment Effective Date shall not
have occurred by January 31, 2003, then the amendments provided for in Section 1
shall terminate and be of no further force or effect.

     SECTION 5. Effect of Amendment. Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Co-Administrative Agents, the Syndication Agent or the Co-Documentation Agents
under the Credit Agreement or any other Loan Document, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan
Document, all of which are ratified and affirmed in all respects and shall
continue in full force and effect. Nothing herein shall be deemed to entitle any
Loan Party to a consent to, or a waiver, amendment, modification or other change
of, any of the terms, conditions, obligations, covenants or agreements contained
in the Credit Agreement or any other Loan Document in similar or different
circumstances. This Amendment shall apply and be effective only with respect to
the provisions of the Credit Agreement specifically referred to herein. After
the date hereof, any reference to the Credit Agreement shall mean the Credit
Agreement, as modified hereby. This Amendment shall constitute a "Loan Document"
for all purposes of the Credit Agreement and the other Loan Documents.

     SECTION 6. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same contract. Delivery
of an executed counterpart of a signature page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

     SECTION 7. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 8. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

     SECTION 9. Expenses. The Borrower agrees to reimburse the Payment Agent for
all out-of-pocket expenses in connection with this Amendment, including the
reasonable fees, charges and disbursements of Cravath, Swaine & Moore, counsel
for the Co-Administrative Agents.

<PAGE>

                                                                               7

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their duly authorized officers, all as of the date and year
first above written.

                                    NORTHROP GRUMMAN CORPORATION,

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    NORTHROP GRUMMAN SYSTEMS
                                    CORPORATION,

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    LITTON INDUSTRIES, INC.,

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    JPMORGAN CHASE BANK,
                                    individually and as Co-Administrative Agent
                                    and Payment Agent,

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    CREDIT SUISSE FIRST BOSTON,
                                    individually and as Co-Administrative Agent,

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    by:
                                       -----------------------------------------
                                       Name:
                                       Title:

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