Document:

exv10w4

 

Exhibit 10.4

INTELLECTUAL PROPERTY LICENSE AGREEMENT

                This INTELLECTUAL PROPERTY LICENSE AGREEMENT (this
“Agreement”) is dated as of      , 2002, and is between TRW AUTOMOTIVE
INC. (“Licensor”), a corporation organized under the laws of Delaware and a
wholly-owned subsidiary of TRW INC., and TRW INC.
(“Licensee”), an Ohio
corporation. Licensor and Licensee are sometimes referred to herein individually
as, “Party” and collectively as, the
“Parties.” All terms used but not defined
herein, shall have the meaning set forth in the Distribution Agreement (as
defined below).

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

                WHEREAS, included in the TRW Automotive Assets is certain
intellectual property that may be currently used or being developed for use in
connection with Licensee’s TRW Business; and

           
     WHEREAS, Licensee desires to receive a license to such intellectual
property upon the terms and conditions set forth herein;

                NOW
THEREFORE, in consideration of the foregoing premises, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby covenant and agree as follows:

1.      LICENSE
GRANT

              
  1.1 License Grant. Effective from and after the Distribution Date, Licensor
hereby grants to Licensee, and Licensee hereby accepts from Licensor, a
perpetual, irrevocable, royalty-free license, to use the TRW Automotive Licensed
IP, as such TRW Automotive Licensed IP is set forth on
Schedule 1.1 hereto,
solely to make, have made, import, use, offer for sale, and sell products and
processes in the TRW Business. Such license includes, without limitation, the
right, subject to Section 7 below, to make copies of, distribute, and create
derivative works from any copyrighted materials included in TRW Automotive
Licensed IP and the right to use any trade secrets included in TRW Automotive
Licensed IP. Such license shall be exclusive for a period of ten (10) years from
and after the Distribution Declaration Date, as defined in the Distribution
Agreement, and nonexclusive thereafter.

            
    1.2 Copies. Licensee may make such number of copies of the applicable TRW
Automotive Licensed IP as is reasonably necessary to accomplish the permitted
uses set forth in Section 1.1. All copies shall be subject to the terms and
conditions of this Agreement.

          
      1.3 Exclusion of All Other
Rights. Except as expressly provided herein, Licensee
is granted no rights or licenses whatsoever in or to the TRW Automotive Licensed
IP or any other Licensor products, services or other Licensor intellectual,
proprietary or personal rights. All rights and licenses not expressly granted in
this Agreement are hereby expressly

 

reserved by Licensor. In particular and
without limiting the foregoing, nothing in this Agreement will be deemed to
convey to Licensee the legal title to any TRW Automotive Licensed IP.

          
      1.4 Right to Sublicense. Licensee may grant sublicenses to any Subsidiary of
Licensee and, to the extent reasonably required to the normal conduct of the TRW
Business, to joint ventures, suppliers, customers, and competitors. Any such
sublicense shall be subordinate to and conformant with the terms and conditions
of this License, and shall not include the right for such sublicensee to grant
sublicenses. Except as set forth in the preceding sentence, Licensee shall not
sublicense, lease, or otherwise distribute or transfer in any way any TRW
Automotive Licensed IP.

          
      1.5 Intellectual Property
Notices and Markings. Licensee shall accurately
produce and reproduce all Licensor intellectual property notices on all copies
Licensee produces or reproduces of the TRW Licensed IP. In no event shall
Licensee remove any Licensor intellectual property notices from any materials.

2.      OWNERSHIP

          
      2.1 TRW Licensed IP. Licensee acknowledges and agrees that, as between the
parties and subject to the rights and licenses granted herein, Licensor is, and
at all times shall remain, the sole and exclusive owner of all right, title and
interest, throughout the world (including all intellectual property and other
proprietary rights), in and to all TRW Licensed IP, and any copies of the TRW
Licensed IP, whether made by or on behalf of Licensor or Licensee.

3.      PROTECTION
OF LICENSED TECHNOLOGY

          
      3.1 Legal Action. Except as set forth below, Licensor shall maintain sole
control and discretion over the prosecution and maintenance with respect to all
rights, including all intellectual property rights in and to the TRW Automotive
Licensed IP. Licensor will provide Licensee with quarterly renewal reports, and
within thirty (30) days of receipt of such a report Licensee shall inform
Licensor as to which patents Licensee wishes to have maintenance fees paid.

          
      3.2 Protection of Intellectual
Property Rights.

            
            3.2.1 Licensor and the Licensee shall cooperate to police diligently the TRW
Licensed IP. The Licensee shall promptly notify Licensor in writing of any
unauthorized use, infringement, misappropriation, dilution or other violation of
the TRW Licensed IP of which it becomes aware.

              
          3.2.2 Licensor shall have the primary right, but not the obligation, to bring
and control any suits against any unauthorized use, infringement,
misappropriation, dilution or other violation of the TRW Automotive Licensed IP
in the fields of the TRW Businesses, unless Licensor otherwise consents in
writing. If Licensor elects not to exercise this right, Licensor shall provide
Licensee with an explanation of its reason for not bringing an 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, Licensor (at Licensee’s request) shall execute
appropriate documents to authorize

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the Licensee to bring and to control such
action, and Licensor shall reasonably assist Licensee in any such action,
including being named as a party to such litigation as required by law. The
Licensor shall have the right to participate and be represented in any such
action, suit or proceeding by its own counsel at its own expense. The Licensor
shall have no claim of any kind against Licensee based on or arising out of the
Licensee’s handling of or decisions concerning any such action, suit,
proceeding, settlement, or compromise, and the Licensor hereby irrevocably
releases Licensee from any such claim. A party conducting such a suit (whether
Licensee or Licensor) shall consult with the other party and obtain the other
party’s consent before entering into any settlement or compromise that makes
concessions regarding validity and/or infringement of the TRW Automotive
Licensed IP. If Licensee elects to pursue such action, suit or proceeding
hereunder, then Licensee will be entitled to retain the entirety of any award
arising from such suit.

            
            3.2.3 The Licensee agrees to cooperate with Licensor in any litigation or other
enforcement action that Licensor may undertake to enforce or protect the TRW
Automotive Licensed IP in the fields of the TRW Businesses pursuant to Section
3.2.1 and, upon Licensor’s request, to execute, file and deliver all documents
and proof necessary for such purpose, including being named as a party to such
litigation as required by law. The Licensee shall have the right to participate
and be represented in any such action, suit or proceeding by its own counsel at
its own expense. The Licensee shall have no claim of any kind against Licensor
based on or arising out of the Licensor’s handling of or decisions concerning
any such action, suit, proceeding, settlement, or compromise, and the Licensee
hereby irrevocably releases Licensor from any such claim.

             
            3.2.4 Each Party shall bear the costs, fees and expenses incurred by it in
complying with the provisions of this Section 3.2, including those incurred in
bringing or controlling any such suits.

4.      REPRESENTATIONS
AND WARRANTIES

             
    4.1 Each party hereto represents and warrants that (i) it is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation, (ii) it has the corporate power and authority to enter into this
Agreement, and the execution, delivery and performance of this Agreement and the
transactions and other documents contemplated hereby have been duly authorized
by all necessary corporate action on the part of Licensor, and (iii) this
Agreement has been duly executed and delivered by the authorized officers of
such party, and constitutes a legal, valid and binding obligation of the party,
fully enforceable against such party in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and
similar laws of general applicability relating to or affecting creditors’
rights, and general equity principles.

5.      INDEMNIFICATION
AND RELEASE

            
    5.1 Licensee will indemnify, protect, defend and hold harmless Licensor and its
employees, officers and directors from and against all third-party claims,
liabilities, suits, damages, costs and expenses including without limitation
reasonable attorneys’ fees, of any kind,

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involving any actual or alleged
infringement by Licensee of any third party’s Intellectual Property rights
arising out of Licensee’s use of the TRW Automotive Licensed IP.

           
     5.2 Licensor hereby releases and forever discharges Licensee, its Affiliates,
and their respective past and present directors, officers, employees, suppliers
(but only to the extent such suppliers have been using the TRW Automotive
Licensed IP consistent with the permission of Licensor or Licensee for the
purpose of supplying products to Licensee prior to the date of this Agreement),
and customers and end users (but only to the extent such customers and end users
have been using the TRW Automotive Licensed IP consistent with the permission of
Licensor or Licensee prior to the date of this Agreement in connection with
products or services purchased from Licensee or its Affiliates) from all claims,
demands, or causes of action that Licensor may have based on any use of any TRW
Automotive Licensed IP by such persons by virtue of the manufacture, use,
importation, offer for sale, or sale of products in connection with the TRW
Business at any time prior to the effective date of this Agreement.

6.      LIMITATIONS
ON LIABILITY

          
      6.1 Disclaimer of
Consequential and Special Damages. TO THE MAXIMUM EXTENT
PERMITTED BY LAW, NEITHER PARTY NOR ANY RELATED ENTITY THEREOF SHALL BE LIABLE
UNDER THIS AGREEMENT TO THE OTHER PARTY, ANY RELATED ENTITY THEREOF OR ANY OTHER
THIRD PERSON FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, RELIANCE OR
PUNITIVE DAMAGES OR LOST OR IMPUTED PROFITS, LOST DATA OR COST OF PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT
(INCLUDING NEGLIGENCE AND STRICT PRODUCT LIABILITY) INDEMNITY OR CONTRIBUTION,
AND IRRESPECTIVE OF WHETHER A PARTY OR ANY RELATED ENTITY HAS BEEN ADVISED OF
THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE.

7.      CONFIDENTIALITY

               
 7.1 Licensee will use reasonable efforts to hold in confidence information of a
sensitive business or technical nature that it has received from the businesses
of Licensor prior to the execution of this Agreement, but Licensee may use such
information for any purpose and may disclose such information to others to the
extent reasonably necessary or desirable in connection with the ordinary conduct
of its business. For a period of 60 days following the Distribution Date,
Licensor may notify Licensee of particular information, disclosed to Licensee by
Licensor prior to the Distribution Date, that is of a special character
requiring special handling. Promptly after receipt of any such notice, the
parties shall discuss and agree upon special procedures, appropriate to the
nature of the information, to protect for a limited time the confidentiality and
scope of use of such information while taking due account of Licensee’s
practical business needs.

          
      7.2 Nothing in this Section 7 shall require Licensee to hold in confidence or
otherwise protect from unauthorized use of disclosure any information that: (i)
is known to Licensee at the time of receipt; or (ii) is or becomes publicly
available through no wrongful act

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of Licensee; or (iii) is rightfully received
by Licensee from a third party without restriction and without breach, known by
Licensee, of any agreement; or (iv) is independently developed by Licensee
without breach of this Agreement; or (v) is furnished by Licensor to a third
party without restriction.

8.      MISCELLANEOUS

          
      8.1 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 Automotive Inc.

[Address]

Attention: [                     ]

Telecopy:
[                    
]

and

if to Licensee, 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. (local time, place of receipt) 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.

          
      8.2 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.

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      8.3 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.

            
    8.4 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.

            
    8.5 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.

            
    8.6 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.

            
    8.7 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 8.7.

          
            
  8.7.1 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 30 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 60 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.

          
           
    8.7.2 Arbitration.

		
	 	             (i) If the Dispute has not been resolved by executive
officer negotiation within 90 days of the disputing party’s notice
requesting negotiation, or if the parties fail to meet within 60 days
from delivery of said notice, such Dispute shall on the

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	 	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 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 equitable 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

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	 	specific performance, a temporary
restraining order, a temporary or permanent injunction or any other
equitable remedy which may then be available.

          
      8.8 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.

          
      8.9 Assignment. 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 Subsidiary or an Affiliate or to a purchaser of
substantially all of the party’s shares or assets 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 arising prior to such assignment.

          
      8.10 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.

           
     8.11 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. 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.

           
     8.12 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.

           
     8.13 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.

           
     8.14 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.

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     8.15 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.

           
     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:
	
	
	
	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 

9exv10w5

 

Exhibit 10.5

INTELLECTUAL PROPERTY LICENSE AGREEMENT

            
    This INTELLECTUAL PROPERTY LICENSE AGREEMENT (this
“Agreement”) is dated as of      , 2002, and is between TRW INC.
(“Licensor”), an Ohio corporation, and TRW
AUTOMOTIVE INC. (“Licensee”), a
corporation organized under the laws of Delaware and a wholly-owned subsidiary
of Licensor. Licensor and Licensee are sometimes referred to herein individually
as,
“Party” and collectively as, the
“Parties.” All terms used but not defined
herein, shall have the meaning set forth in the Distribution Agreement (as
defined below).

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

            
    WHEREAS, included in the TRW Assets is certain intellectual
property that may be currently used or being developed for use in connection
with Licensee’s TRW Automotive Business; and

          
      WHEREAS, Licensee desires to receive a license to such
intellectual property upon the terms and conditions set forth herein;

            
    NOW THEREFORE, in consideration of the foregoing premises, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby covenant and agree as follows:

1.      LICENSE GRANT

            
    1.1 License
Grant. Effective from and after the Distribution Date, Licensor
hereby grants to Licensee, and Licensee hereby accepts from Licensor, a
perpetual, irrevocable, royalty-free license, to use the TRW Licensed IP, as
such TRW Licensed IP is set forth on Schedule 1.1 hereto, solely to make, have
made, import, use, offer for sale, and sell products and processes in, and only
in, the fields of the TRW Automotive Business. Such license includes, without
limitation, the right, subject to Section 7 below, to make copies of,
distribute, and create derivative works from any copyrighted materials included
in TRW Licensed IP and the right to use any trade secrets included in TRW
Licensed IP. Such license shall be exclusive for a period of ten (10) years from
and after the Distribution Declaration Date, as defined in the Distribution
Agreement, and nonexclusive thereafter.

            
    1.2 Copies. Licensee may make such number of copies of the applicable TRW
Licensed IP as is reasonably necessary to accomplish the permitted uses set
forth in Section 1.1. All copies shall be subject to the terms and conditions of
this Agreement.

            
    1.3 Exclusion of All Other Rights. Except as expressly provided herein, Licensee
is granted no rights or licenses whatsoever in or to the TRW Licensed IP or any
other Licensor products, services or other Licensor intellectual, proprietary or
personal rights. All rights and licenses not expressly granted in this Agreement
are hereby expressly reserved by

 

Licensor. In particular and without limiting
the foregoing, nothing in this Agreement will be deemed to convey to Licensee
the legal title to any TRW Licensed IP.

            
    1.4 Right to Sublicense. Licensee may grant sublicenses to any Subsidiary of
Licensee and, to the extent reasonably required to the normal conduct of the TRW
Automotive Business, to joint ventures, suppliers, customers, and competitors.
Any such sublicense shall be subordinate to and conformant with the terms and
conditions of this License, and shall not include the right for such sublicensee
to grant sublicenses. Except as set forth in the preceding sentence, Licensee
shall not sublicense, lease, or otherwise distribute or transfer in any way any
TRW Licensed IP.

            
    1.5 Intellectual Property Notices and
Markings. Licensee shall accurately
produce and reproduce all Licensor intellectual property notices on all copies
Licensee produces or reproduces of the TRW Licensed IP. In no event shall
Licensee remove any Licensor intellectual property notices from any materials.

2.      OWNERSHIP

            
    2.1 TRW Licensed IP. Licensee acknowledges and agrees that, as between the
parties and subject to the rights and licenses granted herein, Licensor is, and
at all times shall remain, the sole and exclusive owner of all right, title and
interest, throughout the world (including all intellectual property and other
proprietary rights), in and to all TRW Licensed IP, and any copies of the TRW
Licensed IP, whether made by or on behalf of Licensor or Licensee.

3.      PROTECTION OF LICENSED TECHNOLOGY

            
    3.1 Legal
Action. Except as set forth below, Licensor shall maintain sole
control and discretion over the prosecution and maintenance with respect to all
rights, including all intellectual property rights in and to the TRW Licensed
IP. Licensor will provide Licensee with quarterly renewal reports and, within
thirty (30) days of receipt of such a report Licensee shall inform Licensor as
to which patents Licensee wishes to have maintenance fees paid.

            
    3.2 Protection of Intellectual Property
Rights.

            
            3.2.1 Licensor and the Licensee shall cooperate to police diligently the TRW
Licensed IP. The Licensee shall promptly notify Licensor in writing of any
unauthorized use, infringement, misappropriation, dilution or other violation of
the TRW Licensed IP of which it becomes aware.

            
            3.2.2 Licensor shall have the primary right, but not the obligation, to bring
and control any suits against any unauthorized use, infringement,
misappropriation, dilution or other violation of the TRW Licensed IP in the
fields of the TRW Automotive Businesses, unless Licensor otherwise consents in
writing. If Licensor elects not to exercise this right, Licensor shall provide
Licensee with an explanation of its reason for not bringing an 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, Licensor (at Licensee’s request) shall execute
appropriate documents to authorize the Licensee to bring and to control such
action, and Licensor shall reasonably assist Licensee in

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any such action,
including being named as a party to such litigation as required by law. The
Licensor shall have the right to participate and be represented in any such
action, suit or proceeding by its own counsel at its own expense. The Licensor
shall have no claim of any kind against Licensee based on or arising out of the
Licensee’s handling of or decisions concerning any such action, suit,
proceeding, settlement, or compromise, and the Licensor hereby irrevocably
releases Licensee from any such claim. A party conducting such a suit (whether
Licensee or Licensor) shall consult with the other party and obtain the other
party’s consent before entering into any settlement or compromise that makes
concessions regarding validity and/or infringement of the TRW Licensed IP. If
Licensee elects to pursue such action, suit or proceeding hereunder, then
Licensee will be entitled to retain the entirety of any award arising from such
suit.

            
            3.2.3 The Licensee agrees to cooperate with Licensor in any litigation or other
enforcement action that Licensor may undertake to enforce or protect the TRW
Licensed IP in the fields of the TRW Automotive Businesses pursuant to Section
3.2.1 and, upon Licensor’s request, to execute, file and deliver all documents
and proof necessary for such purpose, including being named as a party to such
litigation as required by law. The Licensee shall have the right to participate
and be represented in any such action, suit or proceeding by its own counsel at
its own expense. The Licensee shall have no claim of any kind against Licensor
based on or arising out of the Licensor’s handling of or decisions concerning
any such action, suit, proceeding, settlement, or compromise, and the Licensee
hereby irrevocably releases Licensor from any such claim.

            
            3.2.4 Each Party shall bear the costs, fees and expenses incurred by it in
complying with the provisions of this Section 3.2, including those incurred in
bringing or controlling any such suits.

4.      REPRESENTATIONS AND WARRANTIES

            
    4.1 Each party hereto represents and warrants that (i) it is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation, (ii) it has the corporate power and authority to enter into this
Agreement, and the execution, delivery and performance of this Agreement and the
transactions and other documents contemplated hereby have been duly authorized
by all necessary corporate action on the part of Licensor, and (iii) this
Agreement has been duly executed and delivered by the authorized officers of
such party, and constitutes a legal, valid and binding obligation of the party,
fully enforceable against such party in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and
similar laws of general applicability relating to or affecting creditors’
rights, and general equity principles.

5.      INDEMNIFICATION AND RELEASE

            
    5.1 Licensee will indemnify, protect, defend and hold harmless Licensor and its
employees, officers and directors from and against all third-party claims,
liabilities, suits, damages, costs and expenses including without limitation
reasonable attorneys’ fees, of any kind,

3

 

involving any actual or alleged
infringement by Licensee of any third party’s Intellectual Property rights
arising out of Licensee’s use of the TRW Licensed IP.

          
      5.2 Licensor hereby releases and forever discharges the Licensee, its
Affiliates, and their respective past and present directors, officers,
employees, suppliers (but only to the extent such suppliers have been using the
TRW Licensed IP consistent with the permission of Licensor or Licensee for the
purpose of supplying products to Licensee prior to the date of this Agreement),
and customers and end users (but only to the extent such customers and end users
have been using the TRW Licensed IP consistent with the permission of Licensor
or Licensee prior to the date of this Agreement in connection with products or
services purchased from Licensee or its Affiliates) from all claims, demands, or
causes of action that Licensor may have based on any use of any TRW Licensed IP
by such persons by virtue of the manufacture, use, importation, offer for sale,
or sale of products in connection with the TRW Automotive Business at anytime
prior to the effective date of this Agreement.

6.      LIMITATIONS ON LIABILITY

            
    6.1 Disclaimer of Consequential and
Special Damages. TO THE MAXIMUM EXTENT
PERMITTED BY LAW, NEITHER PARTY NOR ANY RELATED ENTITY THEREOF SHALL BE LIABLE
UNDER THIS AGREEMENT TO THE OTHER PARTY, ANY RELATED ENTITY THEREOF OR ANY OTHER
THIRD PERSON FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, RELIANCE OR
PUNITIVE DAMAGES OR LOST OR IMPUTED PROFITS, LOST DATA OR COST OF PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT
(INCLUDING NEGLIGENCE AND STRICT PRODUCT LIABILITY) INDEMNITY OR CONTRIBUTION,
AND IRRESPECTIVE OF WHETHER A PARTY OR ANY RELATED ENTITY HAS BEEN ADVISED OF
THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE.

7.      CONFIDENTIALITY

            
    7.1 Licensee will use reasonable efforts to hold in confidence information of a
sensitive business or technical nature that it has received from the businesses
of Licensor prior to the execution of this Agreement, but Licensee may use such
information for any purpose and may disclose such information to others to the
extent reasonably necessary or desirable in connection with the ordinary conduct
of its business. For a period of 60 days following the Distribution Date,
Licensor may notify Licensee of particular information, disclosed to Licensee by
Licensor prior to the Distribution Date, that is of a special character
requiring special handling. Promptly after receipt of any such notice, the
parties shall discuss and agree upon special procedures, appropriate to the
nature of the information, to protect for a limited time the confidentiality and
scope of use of such information while taking due account of Licensee’s
practical business needs.

          
    7.2 Nothing in this Section 7 shall require Licensee to hold in confidence or
otherwise protect from unauthorized use of disclosure any information that: (i)
is known to Licensee at the time of receipt; or (ii) is or becomes publicly
available through no wrongful act of Licensee; or (iii) is rightfully received
by Licensee from a third party without restriction and

4

 

without breach, known by
Licensee, of any agreement; or (iv) is independently developed by Licensee
without breach of this Agreement; or (v) is furnished by Licensor to a third
party without restriction.

8.      MISCELLANEOUS

          
      8.1 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. (local time, place of receipt) 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.

          
      8.2 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

5

 

obligation, covenant, agreement or condition shall not operate as a waiver of,
or estoppel with respect to, any subsequent or other failure.

            
    8.3 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.

            
    8.4 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.

            
    8.5 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.

            
    8.6 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.

            
    8.7 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 8.7.

          
             
 8.7.1 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: (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.

6

 

            
            8.7.2
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 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 equitable relief from a court of competent
jurisdiction: breach of any obligation of confidentiality,

7

 

		
	 	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.

          
      8.8 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.

          
      8.9 Assignment. 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 Subsidiary or an Affiliate or to a purchaser of
substantially all of the party’s shares or assets 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 arising prior to such assignment.

           
     8.10 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.

           
     8.11 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. 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.

          
      8.12 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.

           
     8.13 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.

            
    8.14 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

8

 

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.

          
      8.15 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.

          
      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:
	
	
	
	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 

9

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