Document:

<PAGE>

          Redraw Funding Facility
          Agreement for the Issue and
          Repayment of Notes
          SMHL Global Fund No. 6

          Perpetual Trustees Australia Limited
          ABN 86 000 431 827

          Perpetual Trustees Australia Limited
          ABN 86 000 431 827

          ME Portfolio Management Limited
          ABN 79 005 964 134

          and

          ME Portfolio Management Limited
          ABN 79 005 964 134

          [Freehills LOGO]

          MLC Centre Martin Place Sydney New South Wales 2000 Australia
          Telephone +61 2 9225 5000 Facsimile +61 2 9322 4000
          www.freehills.com DX 361 Sydney

          SYDNEY MELBOURNE PERTH BRISBANE HANOI HO CHI MINH CITY SINGAPORE
          Correspondent Offices JAKARTA KUALA LUMPUR

          Liability limited by the Solicitors' Limitation of Liability Scheme,
          approved under the Professional Standards Act 1994 (NSW)

          Reference PJSR:TEL:25E

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

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Table of contents

Clause                                                                      Page
                                                                            ----
1    Definitions and interpretation                                           2

     1.1   Definitions                                                        2
     1.2   Interpretation                                                     5
     1.3   Business Day                                                       7
     1.4   Transaction Document                                               7

2    The Notes                                                                7

     2.1   Application for and Issue of Notes                                 7
     2.2   Acknowledgment of Indebtedness                                     8
     2.3   Obligations under Notes                                            8
     2.4   Ownership of Notes                                                 8
     2.5   Register                                                           8

3    Redraw Facilities                                                        8

     3.1   Purpose                                                            8
     3.2   Loan Redraws                                                       9

4    Funding procedures                                                       9

     4.1   Delivery of Funding Notice                                         9
     4.2   Requirements for a Funding Notice                                  9
     4.3   Delivery of Facility Provider Funding Notice                       9
     4.4   Requirements for a Facility Provider Funding Notice                9
     4.5   Copy of the Note                                                  10
     4.6   Irrevocability of Funding Notice                                  10
     4.7   Notification of Funding Rate                                      10

5    Loan Facility                                                           10

     5.1   Provision of Funding Portions                                     10
     5.2   Repayment                                                         11
     5.3   Repayment of Outstanding Moneys                                   11
     5.4   Interest                                                          11
     5.5   Order of Repayment                                                12

6    Payments                                                                12

     6.1   Manner of payments                                                12
     6.2   Payments on a Business Day                                        12
     6.3   Appropriation of payments                                         13
     6.4   Payments in gross                                                 13
     6.5   Taxation deduction procedures                                     13
     6.6   Amounts payable on demand                                         13

7    Representations and warranties                                          14

     7.1   By the Issuer                                                     14
     7.2   By the SF Manager                                                 15

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     7.3   Survival and repetition of representations and warranties         15
     7.4   Reliance by the Note Holder and OF Manager                        16

8    Undertakings                                                            16

     8.1   Term of undertakings                                              16
     8.2   Compliance with Covenants                                         16

9    Events of Default                                                       16

     9.1   Effect of Event of Default                                        16
     9.2   Issuer to continue to perform                                     16
     9.3   Enforcement                                                       17

10   Increased costs, illegality and yield protection                        17

     10.1  Increased costs                                                   17
     10.2  Illegality                                                        18

11   Trustee Limitation of Liability Protection                              18

     11.1  Limitation of Liability - Issuer                                  18
     11.2  Limitation of Liability - Note Holder                             19
     11.3  Wilful Default of the Issuer and the Note Holder                  20

12   Indemnities                                                             21

     12.1  General indemnity                                                 21
     12.2  Continuing indemnities and evidence of loss                       21
     12.3  Funds available for indemnity                                     22
     12.4  Negligence, wilful default or breach of law                       22
     12.5  Notification from Note Holder or OF Manager                       22

13   Tax, costs and expenses                                                 22

     13.1  Tax                                                               22
     13.2  Costs and expenses                                                23

14   Interest on overdue amounts                                             23

     14.1  Payment of interest                                               23
     14.2  Accrual of interest                                               24
     14.3  Rate of interest                                                  24

15   Assignment                                                              24

     15.1  Assignment by Transaction Party                                   24
     15.2  Assignment by Note Holder and OF Manager                          24
     15.3  Assist transfer or assignment                                     24
     15.4  Participation permitted                                           24
     15.5  Lending Office                                                    24
     15.6  Disclosure                                                        25
     15.7  No increase in costs                                              25

16   General                                                                 25

     16.1  Confidential information                                          25

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     16.2  Performance by Note Holder of obligations                         25
     16.3  Transaction Party to bear cost                                    25
     16.4  Notices                                                           25
     16.5  Governing law and jurisdiction                                    27
     16.6  Prohibition and enforceability                                    27
     16.7  Waivers                                                           27
     16.8  Variation                                                         28
     16.9  Cumulative rights                                                 28
     16.10 Attorneys                                                         28
     16.11 Binding Obligations                                               28
     16.12 Winding up of Securitisation Fund                                 28
     16.13 Termination clause                                                28

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

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This Redraw Funding Facility Agreement

          is made on _____________ 2004 between the following parties:

          1.   Perpetual Trustees Australia Limited
               ABN 86 000 431 827
               in its capacity as trustee of the Securitisation Fund (as
               hereinafter defined)
               of Level 7, 39 Hunter Street,
               Sydney, New South Wales
               (Issuer)

          2.   Perpetual Trustees Australia Limited
               ABN 86 000 431 827
               in its capacity as trustee of the Origination Fund (as
               hereinafter defined)
               of Level 7, 39 Hunter Street,
               Sydney, New South Wales
               (Note Holder)

          3.   ME Portfolio Management Limited
               ABN 79 005 964 134
               in its capacity as manager of the Securitisation Fund
               of Level 23, 360 Collins Street,
               Melbourne, Victoria
               (SF Manager)

          4.   ME Portfolio Management Limited
               ABN 79 005 964 134
               in its capacity as manager of the Origination Fund
               of Level 23, 360 Collins Street,
               Melbourne, Victoria
               (OF Manager)

Recitals

          A.   The Issuer is the trustee, and the SF Manager is the manager, of
               the Securitisation Fund.

          B.   The Note Holder is the trustee, and the OF Manager is the
               manager, of the Origination Fund.

          C.   The SF Manager has requested the OF Manager to direct the Note
               Holder to make available a loan facility to the Issuer under
               which the Issuer will issue Notes to the Note Holder and the Note
               Holder will purchase Notes from the Issuer.

          D.   The Note Holder and the OF Manager have agreed to make available
               a facility on the terms and conditions of this agreement and have
               agreed with the SF Manager and the Issuer that the terms and
               conditions of the issue and repayment of any such Notes are those
               contained in this agreement.

The parties agree

          in consideration of, among other things, the mutual promises contained
          in this agreement:

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

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1    Definitions and interpretation

     1.1  Definitions

          In this agreement:

          Attorney means an attorney appointed under a Material Document;

          Base Rate means in respect of a Funding Portion and a Payment Period:

          (a)  the rate percent per annum determined by the OF Manager by taking
               the rates quoted on the page entitled "BBSW" on the Reuters
               Monitor System at or about 10.10 am (Melbourne time) on the
               Funding Date by each Reference Bank (provided that at least 4
               Reference Banks are quoting) as being its mean buying and selling
               rate for a bank accepted Bill having a tenor equal to 90 days
               eliminating one of the highest and one of the lowest mean rates,
               and then calculating the average of the remaining mean rates and
               then (if necessary) rounding up the resultant figure to four
               decimal places; or

          (b)  if in respect of any Funding Date the Base Rate cannot be
               determined because:

               (1)  less than 4 Reference Banks have quoted their relevant
                    rates; or

               (2)  the Payment Period does not equal a tenor in relation to
                    which at least 4 Reference Banks have quoted their relevant
                    rates,

               on the page entitled "BBSW" on the Reuters Monitor System on the
               Funding Date, the rate percent per annum calculated by the OF
               Manager in accordance with paragraph (a) of this definition but
               by taking the buying and selling rates otherwise quoted by 4 of
               the Reference Banks on application by the OF Manager, for bank
               accepted Bills of the same tenor and a face value amount of
               A$1,000,000 each; or

          (c)  if in respect of any Funding Date the Base Rate cannot be
               determined in accordance with paragraphs (a) or (b) of this
               definition, the rate percent per annum determined by the OF
               Manager in good faith to be the rate most nearly approximating
               the rate that would otherwise have been calculated by the OF
               Manager in accordance with paragraph (a) of this definition
               having regard to comparable indices then available in the then
               current bill market;

          Bill means a bill of exchange as defined in the Bills of Exchange Act
          1909 (Cth), but does not include a cheque;

          Business Day means a day on which banks are open for business in
          Melbourne and Sydney excluding a Saturday, Sunday or public holiday;

          Card and Cheque Facilities means any Card Facility and any Cheque and
          Direct Entry Facility;

          Card Facility means any facility in force in respect of the
          Origination Fund relating to the provision of credit cards or debit
          cards;

          Cheque and Direct Entry Facility means any facility in force in
          respect of the Origination Fund relating to the provision of either or
          both of direct entry facilities and cheque facilities;

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          Class A Notes has the meaning given to it by the Supplementary Bond
          Terms;

          Class B Notes has the meaning given to it by the Supplementary Bond
          Terms;

          Conditions means the terms and conditions as set out in schedule 2;

          Dollars, A$ and $ means the lawful currency of the Commonwealth of
          Australia;

          Drawdown Notice means a Funding Notice or a Facility Provider Funding
          Notice;

          Event of Default means an Event of Default as defined in the Security
          Trust Deed;

          Excluded Tax means any Tax imposed by any jurisdiction on the net
          income of the Note Holder;

          Facility means the redraw funding facility made available by the Note
          Holder to the Issuer under this agreement (by purchase of Notes);

          Facility Provider means the provider of any of the Card and Cheque
          Facilities;

          Facility Provider Funding Notice means a notice given, or to be given,
          under clauses 4.3 and 4.4;

          Funding Date means the date on which a Note will be issued (as
          stipulated in the Funding Notice) and the date on which a Funding
          Portion is, or is to be, advanced or regarded as advanced to the
          Issuer under this agreement;

          Funding Notice means a notice given, or to be given, under clauses 4.1
          and 4.2;

          Funding Portion means in relation to any Note, the principal amount of
          that Note to be provided or outstanding at that time (as the case may
          be);

          Funding Rate means for any Payment Period the rate per cent per annum
          which is the aggregate of the Base Rate for that Payment Period and
          the Margin;

          Governmental Agency means any government or any governmental,
          semi-governmental, administrative, fiscal or judicial body,
          department, commission, authority, tribunal, agency or entity;

          Lending Office means the office of the Note Holder set out on page 1
          of this agreement or such other office as notified by the Note Holder
          under this agreement;

          Margin means that percentage notified by the OF Manager to the SF
          Manager on or about the issue of a Note as the margin applicable to
          that Note;

          Master Trust Deed means the Master Trust Deed dated 4 July 1994 made
          between ME Portfolio Management Limited and Perpetual Trustees
          Australia Limited and providing for the establishment of a series of
          separate trusts known collectively as the Superannuation Members' Home
          Loans Trusts, as amended from time to time;

          Material Documents means:

          (a)  this agreement (including each Note); and

          (b)  the Security Trust Deed; and

          (c)  the Supplementary Bond Terms;

          Note means a Note issued under clauses 2 and 4;

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          Note Holder means Perpetual Trustees Australia Limited or any person
          entitled to be registered as a Note Holder in accordance with this
          agreement;

          Officer means:

          (a)  in relation to the Issuer and Note Holder, a director, secretary
               or other person whose title contains the word or words "manager"
               or "counsel"; and

          (b)  in relation to the SF Manager and OF Manager, a director or a
               secretary, or a person notified to be an authorised officer of
               the relevant party;

          Origination Fund means Superannuation Members' Home Loans Origination
          Fund No. 3;

          Outstanding Moneys means all debts and monetary liabilities of the
          Issuer to the Note Holder under or in relation to any Material
          Document and in any capacity, irrespective of whether the debts or
          liabilities:

          (a)  are present or future;

          (b)  are actual, prospective, contingent or otherwise;

          (c)  are at any time ascertained or unascertained;

          (d)  are owed or incurred by or on account of the Issuer alone, or
               severally or jointly with any other person;

          (e)  are owed to or incurred for the account of the Note Holder alone,
               or severally or jointly with any other person;

          (f)  are owed or incurred as principal, interest, fees, charges,
               taxes, duties or other imposts, damages (whether for breach of
               contract or tort or incurred on any other ground), losses, costs
               or expenses, or on any other account; or

          (g)  comprise any combination of the above;

          Overdue Rate means on any date the rate percent per annum which is the
          aggregate of 2% per annum and the Funding Rate;

          Payment Date has the meaning given to it under the Supplementary Bond
          Terms in respect of the Class A Notes;

          Payment Period means the period from and including the last Payment
          Date to but excluding the next Payment Date except that the first
          Payment Period will commence on the relevant Funding Date and the last
          Payment Period will end on the Termination Date;

          Power means any right, power, authority, discretion or remedy
          conferred on the Note Holder or OF Manager, or a Receiver or an
          Attorney by any Transaction Document or any applicable law;

          Principal Outstanding means at any time the aggregate principal amount
          of all outstanding Funding Portions at that time;

          Redraw Amount has the same meaning as in clause 3.2(a);

          Redraw Facility means a facility contained in a loan or other form of
          financial accommodation the repayment of which is secured by a
          mortgage granted or transferred to the Issuer, which allows the
          mortgagor under that mortgage to redraw amounts prepaid under that
          loan;

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          Reference Bank means any one of Commonwealth Bank of Australia,
          Westpac Banking Corporation, National Australia Bank Limited and
          Australia and New Zealand Banking Group Limited;

          Register means the register of Note Holders maintained by the Issuer;

          Same Day Funds means bank cheque or other immediately available funds;

          Secured Creditors has the meaning given to it in the Security Trust
          Deed;

          Securitisation Fund means the Securitisation Fund constituted under
          the Master Trust Deed known as SMHL Global Fund No. 6;

          Security Trust Deed means the security trust deed in respect of the
          Securitisation Fund between the Issuer, the SF Manager, Perpetual
          Trustee Company Limited ABN 42 000 001 007 (as security trustee) and
          The Bank of New York (as note trustee);

          Supplementary Bond Terms means the Supplementary Bond Terms Notice
          dated on or about the date of this agreement in respect of the
          Securitisation Fund and providing the terms of issue of Class A Notes
          and Class B Notes;

          Tax means:

          (a)  any tax, levy, charge, impost, duty, fee, deduction, compulsory
               loan or withholding; or

          (b)  any income, stamp or transaction duty, tax or charge,

          which is assessed, levied, imposed or collected by any Governmental
          Agency and includes, but is not limited to, any interest, fine,
          penalty, charge, fee or other amount imposed on or in respect of any
          of the above;

          Termination Date means the day which is 1 Business Day prior to the
          Final Maturity Date as defined in the Supplementary Bond Terms;

          Transaction Document has the meaning given to it in the Master Trust
          Deed and includes this agreement and any document or agreement entered
          into or given under it (including Notes);

          Transaction Party means:

          (a)  the Issuer; or

          (b)  the SF Manager.

     1.2  Interpretation

          In this agreement, headings and boldings are for convenience only and
          do not affect the interpretation of this agreement and, unless the
          context otherwise requires:

          (a)  words importing the singular include the plural and vice versa;

          (b)  words importing a gender include any gender;

          (c)  other parts of speech and grammatical forms of a word or phrase
               defined in this agreement have a corresponding meaning;

          (d)  an expression importing a natural person includes any company,
               partnership, joint venture, association, corporation or other
               body corporate and any Governmental Agency;

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (e)  a reference to any thing (including, but not limited to, any
               right) includes a part of that thing;

          (f)  a reference to a part, clause, party, annexure, exhibit or
               schedule is a reference to a part and clause of, and a party,
               annexure, exhibit and schedule to, this agreement and a reference
               to this agreement includes any annexure, exhibit and schedule;

          (g)  a reference to a statute, regulation, proclamation, ordinance or
               by-law includes all statutes, regulations, proclamations,
               ordinances or by-laws amending, consolidating or replacing it,
               and a reference to a statute includes all regulations,
               proclamations, ordinances and by-laws issued under that statute;

          (h)  a reference to a document includes all amendments or supplements
               to, or replacements or novations of, that document;

          (i)  a reference to liquidation includes appointment of an
               administrator, compromise, arrangement, merger, amalgamation,
               reconstruction, winding up, dissolution, assignment for the
               benefit of creditors, scheme, composition or arrangement with
               creditors, insolvency, bankruptcy, or a similar procedure or,
               where applicable, changes in the constitution of any partnership
               or person or death;

          (j)  a reference to a party to any document includes that party's
               successors and permitted assigns;

          (k)  a reference to an agreement other than this agreement includes an
               undertaking, deed, agreement or legally enforceable arrangement
               or understanding whether or not in writing;

          (l)  a reference to an asset includes all property of any nature,
               including, but not limited to, a business, and all rights,
               revenues and benefits;

          (m)  a reference to a document includes any agreement in writing, or
               any certificate, notice, instrument or other document of any
               kind;

          (n)  no provision of this agreement will be construed adversely to a
               party solely on the ground that the party was responsible for the
               preparation of this agreement or that provision;

          (o)  a reference to the drawing, accepting, endorsing or other dealing
               with or of a Bill refers to a drawing, accepting, endorsing or
               dealing within the meaning of the Bills of Exchange Act 1909;

          (p)  a reference to a body, other than a party to this agreement
               (including, without limitation, an institute, association or
               authority), whether statutory or not:

               (1)  which ceases to exist; or

               (2)  whose powers or functions are transferred to another body,

               is a reference to the body which replaces it or which
               substantially succeeds to its powers or functions; and

          (q)  the Issuer or the Note Holder will only be considered to have
               knowledge or awareness of, or notice of, a thing, or grounds to
               believe any thing, by virtue of the officers of the Issuer or the
               Note Holder having day to day

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               responsibility for the administration of the Origination Fund or
               the Securitisation Fund (as the case may be) having actual
               knowledge, actual awareness or actual notice of that thing, or
               grounds or reason to believe that thing (and similar references
               will be interpreted in this way). In addition, notice, knowledge
               or awareness of an Event of Default means notice, knowledge or
               awareness of the occurrence of the events or circumstances
               constituting an Event of Default and that those events or
               circumstances constitute an Event of Default.

     1.3  Business Day

          Unless otherwise stipulated in this agreement, where the day on or by
          which any thing is to be done is not a Business Day, that thing must
          be done on or by the succeeding Business Day.

     1.4  Transaction Document

          The parties agree that this agreement and any document or agreement
          entered into or given under it (including a Note) is a "Transaction
          Document" for the purposes of the Master Trust Deed.

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2    The Notes

     2.1  Application for and Issue of Notes

          (a)  The SF Manager may direct that the Issuer issues a Note to the
               Note Holder by:

               (1)  directing a Note be issued from SMHL Global Fund No. 6;

               (2)  specifying the principal amount of the Note required;

               (3)  specifying the proposed date and time of issue of the Note;
                    and

               (4)  providing to the Note Holder and the OF Manager a Funding
                    Notice (and a copy to the Issuer) pursuant to clause 4.

          (b)  The OF Manager may direct that the Issuer and the SF Manager
               cause the Issuer to issue a Note to the Note Holder by:

               (1)  directing a Note be issued from SMHL Global Fund No. 6;

               (2)  specifying the principal amount of the Note required;

               (3)  specifying the proposed date and time of issue of the Note;
                    and

               (4)  providing to the Issuer and the SF Manager (and copy to the
                    Noteholder) a Facility Provider Funding Notice pursuant to
                    clause 4.

          (c)  If the SF Manager has directed that the Issuer issues a Note in
               accordance with clause 2.1(a) or the OF Manager has directed that
               the Issuer issues a Note in accordance with clause 2.1(b), the
               Note Holder must subscribe for the Note as requested by the SF
               Manager, and the Issuer must, on the terms of this agreement,
               issue the Note to the Note Holder in consideration for the
               principal amount provided that the OF Manager and Note Holder
               have complied with clause 5.1.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (d)  The parties agree that the terms and conditions contained in this
               agreement, the Supplementary Bond Terms and the Security Trust
               Deed govern the issue and repayment of the Notes.

     2.2  Acknowledgment of Indebtedness

          The Issuer acknowledges its indebtedness to the Note Holder in respect
          of each Note issued under this agreement.

     2.3  Obligations under Notes

          (a)  The obligations of the Issuer under the Notes are constituted by,
               and specified in, this agreement and in the Conditions.

          (b)  Each Note is a separate debt of the Issuer.

          (c)  The entitlement of any person to a Note is determined by
               registration as a Note Holder of that Note.

          (d)  The making of, or giving effect to, a manifest error in an
               inscription in the Register will not avoid the creation or
               transfer of a Note.

     2.4  Ownership of Notes

          (a)  A Note may be transferred by the Note Holder to any person in
               accordance with this agreement.

          (b)  The person whose name is registered as the Note Holder of a Note
               in the Register will, and will be treated by the Issuer as the
               absolute owner of the Note.

     2.5  Register

          The Issuer must:

          (a)  establish and maintain the Register;

          (b)  enter in the Register in respect of each Note:

               (1)  the principal amount and principal outstanding in respect of
                    each Note;

               (2)  its date of issue and date of redemption and cancellation;
                    and

               (3)  the date on which any person becomes, or ceases to be, a
                    Note Holder.

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3    Redraw Facilities

     3.1  Purpose

          The Issuer must, and the SF Manager must cause the Issuer to, only use
          the net proceeds of a Funding Portion to:

          (a)  provide funds requested under a Redraw Facility; and

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (b)  reimburse the Note Holder for amounts paid or payable by the Note
               Holder to a Facility Provider under or in respect of the Card and
               Cheque Facilities to fund a redraw under a Redraw Facility
               provided by the Issuer.

     3.2  Loan Redraws

          (a)  The OF Manager must notify the SF Manager by such time as they
               may agree on each Business Day all amounts payable by the Note
               Holder on that Business Day to a Facility Provider under or in
               respect of the Card and Cheque Facilities to fund redraws under
               Redraw Facilities provided by the Issuer (Redraw Amount).

          (b)  The Issuer must and the SF Manager must cause the Issuer to pay
               to the Note Holder on each Business Day an amount equal to the
               Redraw Amount for that Business Day. The amount payable under
               this clause 3.2(b) must be paid by such time as the parties may
               from time to time agree.

          (c)  Except as expressly provided under this agreement, the Issuer has
               no obligation to reimburse the Note Holder for any amounts paid
               or payable by the Note Holder to a Facility Provider under or in
               respect of the Facilities to fund redraws under Redraw Facilities
               provided by the Issuer.

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4    Funding procedures

     4.1  Delivery of Funding Notice

          If the SF Manager determines that the Issuer requires a Note to be
          issued, the SF Manager must deliver to the Note Holder and the OF
          Manager a Funding Notice in accordance with this clause 4.

     4.2  Requirements for a Funding Notice

          A Funding Notice:

          (a)  must be in writing in the form of, and specifying the matters set
               out in, schedule 1;

          (b)  must be received by the Note Holder and the OF Manager not later
               than 10.00 am on the Business Day which is the Funding Date; and

          (c)  must be signed by an Officer of the SF Manager.

     4.3  Delivery of Facility Provider Funding Notice

          If the OF Manager determines that the Note Holder has, subject to
          clause 3, an obligation to a Facility Provider to fund a redraw under
          a Redraw Facility provided by the Issuer, the OF Manager must deliver
          to the Issuer and the SF Manager a Facility Provider Funding Notice in
          accordance with this clause 4.

     4.4  Requirements for a Facility Provider Funding Notice

          A Facility Provider Funding Notice:

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (a)  must be in writing in the form of, and specifying the matters set
               out in schedule 3;

          (b)  must be received by the Issuer and the SF Manager not later than
               12.00 noon on the Business Day which is the Funding Date; and

          (c)  must be signed by an Officer of the OF Manager.

     4.5  Copy of the Note

          (a)  A copy of each Funding Notice must be provided to the Issuer at
               the same time it is given to the Note Holder and the OF Manager.

          (b)  A copy of each Facility Provider Funding Notice must be provided
               to the Note Holder at the same time it is given to the Issuer and
               the SF Manager.

     4.6  Irrevocability of Funding Notice

          The Note Holder and the OF Manager must not decline to provide the
          funding specified in a Drawdown Notice. Following the issue of the
          Drawdown the Issuer is irrevocably committed to, and the SF Manager is
          irrevocably committed to cause the Issuer to, issue the relevant Note
          and to draw Funding Portions from the Note Holder in accordance with
          the Funding Notice given to the OF Manager and the Note Holder.

     4.7  Notification of Funding Rate

          (a)  After the OF Manager has determined the Base Rate for a Payment
               Period it must promptly notify the Issuer and SF Manager in
               writing of the Funding Rate for that Payment Period, specifying
               both the Base Rate and the Margin.

          (b)  In the absence of manifest error, each determination of the Base
               Rate by the OF Manager is conclusive evidence of that rate
               against the Issuer and the SF Manager.

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5    Loan Facility

     5.1  Provision of Funding Portions

          (a)  If the SF Manager gives a Funding Notice in accordance with
               clause 4, then, subject to this agreement (including, without
               limitation, clause 11), the Note Holder must, and the OF Manager
               must cause the Note Holder to, provide the relevant Funding
               Portion under the Facility as payment for the relevant Note in
               Same Day Funds in Dollars not later than 12 noon (Melbourne time)
               on the specified Funding Date and in accordance with that Funding
               Notice.

          (b)  If the OF Manager gives a Facility Provider Funding Notice in
               accordance with clause 4 then, subject to this agreement
               (including, without limitation, clause 11), the Note Holder is
               deemed to have provided the relevant Funding Portion under the
               Facility as payment for the Note on the specified Funding Date
               and in accordance with that Facility Provider Funding Notice.
               This clause 5.1(b) has application only to the extent that

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               the Note Holder has made or has an obligation to make a payment
               to a Facility Provider under a Card and Cheque Facility in
               respect of Redraw Facilities provided by the Issuer on that day.

     5.2  Repayment

          On each Payment Date and to the extent that during the Payment Period
          it has not done so, the Issuer must, and the SF Manager must cause the
          Issuer to:

          (a)  repay so much of the Principal Outstanding (to the extent that
               funds are available from the Securitisation Fund) as the Issuer
               is required to apply from "Interest Collections" to "repayment of
               any principal due and payable under any Redraw Funding Facility"
               pursuant to clause 6.1(m) of the Supplementary Bond Terms; and

          (b)  repay so much of the Principal Outstanding (to the extent that
               funds are available from the Securitisation Fund) (after the
               repayment in clause 5.2(a)) as the Issuer is required to apply
               from "Principal Collections" to "repayment of any Redraw
               Principal Outstanding under a Redraw Funding Facility" pursuant
               to clause 6.2(e) of the Supplementary Bond Terms.

     5.3  Repayment of Outstanding Moneys

          (a)  The Principal Outstanding under the Facility must be repaid by
               the Issuer to the Note Holder:

               (1)  in full on the Termination Date; and

               (2)  otherwise as specified in, or required under, the
                    Transaction Documents,

               and the SF Manager must cause the Issuer to do so.

          (b)  The Issuer must, and the SF Manager must cause the Issuer to, pay
               or repay the balance of the Outstanding Moneys in full to the
               Note Holder on the Termination Date or on such other date on
               which the Principal Outstanding is, or is required to be, repaid
               in full.

     5.4  Interest

          (a)  On each Payment Date, the Issuer must, and the SF Manager must
               cause the Issuer to, pay to the Note Holder interest (to the
               extent that funds are available from the Securitisation Fund) on
               the Principal Outstanding at the Funding Rate:

               (1)  in relation to any Funding Portion drawn during the current
                    Payment Period, for the period from and including the
                    relevant Funding Date to but excluding the Payment Date; and

               (2)  in relation to the remainder of the Principal Outstanding,
                    for the Payment Period,

               to the extent to which the Issuer is required to apply from
               "Interest Collections" to "payment of any interest due under any
               Redraw Funding Facility" pursuant to clause 6.1(d) of the
               Supplementary Bond Terms.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (b)  If on any Payment Date, interest in respect of the relevant
               Payment Period is not paid on the whole amount of the Principal
               Outstanding:

               (1)  that unpaid interest shall accrue interest at the Overdue
                    Rate for the next Payment Period;

               (2)  that unpaid interest and interest accrued under clause
                    5.4(b)(1) shall become payable on the next Payment Date to
                    the extent to which (after payment of interest under clause
                    5.4(a)) the Issuer is required to apply from "Interest
                    Collections" to "payment of interest due under any Redraw
                    Funding Facility" pursuant to clause 6.1 of the
                    Supplementary Bond Terms; and

               (3)  to the extent to which any unpaid interest (including any
                    interest accrued under paragraph (1)) remains unpaid after
                    that next Payment Date it will again be subject to
                    paragraphs (1) and (2) for each subsequent Payment Period
                    and Payment Date until it has been paid.

          (c)  Interest must be calculated in arrears on daily balances on the
               basis of a 365 day year and for the actual number of days elapsed
               during the relevant period.

     5.5  Order of Repayment

          (a)  In making repayments under clauses 5.2 and 5.3, the Issuer must,
               and the SF Manager must cause the Issuer to, apply the amount of
               the repayment to repay the Principal Outstanding under the Notes
               in order of the date of issue of the Notes so that the Notes
               issued earlier in time are repaid first.

          (b)  The Note Holder must, and the OF Manager must cause the Note
               Holder to, apply repayments in accordance with clause 5.5(a).

          (c)  The OF Manager must advise the Issuer and the SF Manager in
               writing of the Notes which have been wholly or partly repaid, the
               amount of the repayment and the Principal Outstanding under that
               Note.

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6    Payments

     6.1  Manner of payments

          All payments to the Note Holder under the Material Documents must be
          made:

          (a)  in Same Day Funds;

          (b)  in Dollars; and

          (c)  not later than 11:00 am (Melbourne time) on the due date,

          to the account of the Note Holder specified by the OF Manager to the
          Issuer or in such other manner to an account of the Note Holder as the
          OF Manager directs from time to time.

     6.2  Payments on a Business Day

          If a payment is due on a day which is not a Business Day, the due date
          for that payment is the next Business Day and interest must be
          adjusted accordingly.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     6.3  Appropriation of payments

          (a)  All payments made by the Issuer to the Note Holder under this
               agreement may be appropriated as between principal, interest and
               other amounts, as the OF Manager in its absolute discretion
               determines, or, failing any determination, in the following
               order:

               (1)  first, towards reimbursement of all fees, costs, expenses,
                    charges, damages and indemnity payments incurred or due and
                    owing by the Transaction Parties under the Material
                    Documents;

               (2)  second, towards payment of interest due and payable under
                    the Material Documents; and

               (3)  third, towards repayment of the Principal Outstanding.

          (b)  Any appropriation under clause 6.3(a) overrides any appropriation
               made by the Issuer.

     6.4  Payments in gross

          All payments which a Transaction Party is required to make under any
          Material Document must be:

          (a)  without any set-off, counterclaim or condition; and

          (b)  without any deduction or withholding for any Tax or any other
               reason, unless, the Transaction Party is required to make a
               deduction or withholding by applicable law.

     6.5  Taxation deduction procedures

          If a Transaction Party is required to make a deduction or withholding
          in respect of Tax from any payment to be made to the Note Holder under
          any Material Document, then:

          (a)  that Transaction Party has no obligation to indemnify the Note
               Holder against that tax; and

          (b)  that Transaction Party must, and in the case of the Issuer, the
               SF Manager must cause the Issuer to, use its best endeavours to
               obtain official receipts or other documentation from that
               Governmental Agency and within 2 Business Days after receipt the
               Issuer must, and the SF Manager must cause the Issuer to, deliver
               them to the Note Holder.

     6.6  Amounts payable on demand

          If any amount payable by a Transaction Party under any Material
          Document is not expressed to be payable on a specified date that
          amount is payable by the Transaction Party on demand by the Note
          Holder or OF Manager.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

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7    Representations and warranties

     7.1  By the Issuer

          The Issuer hereby represents and warrants to the OF Manager and Note
          Holder that:

          (a)  (Due Incorporation): it is duly incorporated and has the
               corporate power to own its property and to carry on its business
               as is now being conducted;

          (b)  (Constitution): the execution delivery and performance of this
               agreement and any Note does not and will not violate its
               Constitution;

          (c)  (Corporate Power): it has the power and has taken all corporate
               and other action required to enter into this agreement and each
               Note and to authorise the execution and delivery of this
               agreement and each Note and the performance of its obligations
               thereunder;

          (d)  (Filings): it has filed all corporate notices and effected all
               registrations with the Australian Securities and Investments
               Commission or similar office in the jurisdiction of incorporation
               and in any other jurisdiction as required by law and all such
               filings and registrations are current, complete and accurate
               except:

               (1)  as such enforceability may be limited by any applicable
                    bankruptcy, insolvency, re-organisation, moratorium or trust
                    or other similar laws affecting creditors' rights generally;
                    and

               (2)  that this representation and warranty does not apply to the
                    filing of ASIC form 309 in relation to the creation of the
                    Charge (as defined in the Security Trust Deed);

          (e)  (Legally Binding Obligation): this agreement and each Note
               constitutes or will constitute a valid, legally binding and
               enforceable obligation of it in accordance with its terms except
               as such enforceability may be limited by any applicable
               bankruptcy, insolvency, reorganisation, moratorium or trust laws
               or other similar laws affecting creditors' rights generally;

          (f)  (Execution, Delivery and Performance): the execution, delivery
               and performance of this agreement and each Note by it does not
               violate any existing law or regulation or any document or
               agreement to which it is a party in either case in its capacity
               as trustee of the Securitisation Fund or which is binding upon it
               or any of its assets in its capacity as trustee of the
               Securitisation Fund;

          (g)  (Authorisation): all consents, licences, approvals and
               authorisations of every Governmental Agency required to be
               obtained by it in connection with the execution and delivery of,
               and performance of its obligations under, this agreement and any
               Note have been obtained and are valid and subsisting;

          (h)  (Securitisation Fund Validly Created): the Securitisation Fund
               has been validly created and is in existence at the date of this
               agreement;

          (i)  (Sole Trustee): it has been validly appointed as trustee of the
               Securitisation Fund and is presently the sole trustee of the
               Securitisation Fund;

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (j)  (Master Trust Deed): the Securitisation Fund is constituted
               pursuant to the Master Trust Deed; and

          (k)  (No Proceedings to Remove): no notice has been given to it and to
               its knowledge no resolution has been passed or direction or
               notice has been given, removing it as trustee of the
               Securitisation Fund.

     7.2  By the SF Manager

          The SF Manager hereby represents and warrants to the OF Manager and
          Note Holder that:

          (a)  (Due incorporation): it is duly incorporated and has the
               corporate power to own its property and to carry on its business
               as is now being conducted;

          (b)  (Constitution): the execution, delivery and performance by it of
               this agreement and each Note does not and will not violate its
               Constitution;

          (c)  (Corporate power): the SF Manager has the power and has taken all
               corporate and other action required to enter into this agreement
               and each Note and to authorise the execution and delivery of this
               agreement and each Note and the performance of its obligations
               hereunder;

          (d)  (Filings): the SF Manager has filed all corporate notices and
               effected all registrations with the Australian Securities and
               Investments Commission or similar office in its jurisdiction of
               incorporation and in any other jurisdiction as required by law
               and all such filings and registrations are current, complete and
               accurate;

          (e)  (Legally Binding Obligation): this agreement and each Note
               constitutes or will constitute a valid, legally binding and
               enforceable obligation of the SF Manager in accordance with its
               terms except as such enforceability may be limited by any
               applicable bankruptcy, insolvency, re-organisation, moratorium or
               trust or other similar laws affecting creditors' rights
               generally;

          (f)  (Execution, Delivery and Performance): the execution, delivery
               and performance of this agreement and each Note by the SF Manager
               does not violate any existing law or regulation or any document
               or agreement to which the SF Manager is a party or which is
               binding upon it or any of its assets; and

          (g)  (Authorisation): all consents, licences, approvals and
               authorisations of every Government Agency required to be obtained
               by the SF Manager in connection with the execution, delivery and
               performance of this agreement and each Note have been obtained
               and are valid and subsisting.

     7.3  Survival and repetition of representations and warranties

          The representations and warranties in, or given under, this agreement
          including, but not limited to, clauses 7.1 and 7.2:

          (a)  survive the execution of each Transaction Document; and

          (b)  are regarded as repeated on each Funding Date with respect to the
               facts and circumstances then subsisting.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     7.4  Reliance by the Note Holder and OF Manager

          The Issuer and the SF Manager each acknowledge that the Note Holder
          and OF Manager have entered into each Transaction Document to which it
          is a party in reliance on the representations and warranties in, or
          given under, this agreement including, but not limited to, clauses 7.1
          and 7.2.

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8    Undertakings

     8.1  Term of undertakings

          Unless the OF Manager otherwise agrees in writing, until the
          Outstanding Moneys are fully and finally repaid the Issuer and the SF
          Manager must, at its own cost (but without prejudice to clause 11 in
          the case of the Issuer), comply with the undertakings in this clause
          8.

     8.2  Compliance with Covenants

          The Issuer must and the SF Manager must ensure that the Issuer does
          comply with all of its covenants and obligations under the Security
          Trust Deed and Supplementary Bond Terms.

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9    Events of Default

     9.1  Effect of Event of Default

          (a)  Upon or at any time after the occurrence of an Event of Default
               the Note Holder or the OF Manager may by notice to the Issuer and
               the SF Manager declare that the Outstanding Moneys are
               immediately due and payable.

          (b)  The Issuer must and the SF Manager must cause the Issuer to upon
               receipt of a notice under clause 9.1(a) immediately repay in full
               the Outstanding Moneys to the Note Holder.

     9.2  Issuer to continue to perform

          (a)  If the Note Holder or OF Manager makes any declaration under
               clause 9.1:

               (1)  the declaration does not affect or diminish the duties and
                    obligations of the Issuer or the SF Manager under the
                    Transaction Documents; and

               (2)  the Issuer and the SF Manager must continue to perform its
                    obligations under the Transaction Documents as if the
                    declaration had not been made, subject to any directions
                    that may be given by the Note Holder or the OF Manager from
                    time to time under any Transaction Document.

          (b)  Clause 9.2(a) does not affect the obligations of the Issuer or
               the SF Manager under clause 9.1.

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     9.3  Enforcement

          (a)  The Material Documents may be enforced without notice to or
               consent by the Issuer or SF Manager or any other person even if
               the Note Holder accepts any part of the Outstanding Moneys after
               an Event of Default or there has been any other Event of Default.

          (b)  Neither the Note Holder nor the OF Manager is liable to any
               Transaction Party for any loss or damage a Transaction Party may
               suffer, incur or be liable for arising out of or in connection
               with the Note Holder or OF Manager exercising any Power under any
               Material Document.

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10   Increased costs, illegality and yield protection

     10.1 Increased costs

          If the OF Manager determines that the Note Holder is affected by any
          future, or any change in any present or future, law, regulation,
          order, treaty, official directive or request (with which, if not
          having the force of law, compliance is in accordance with the practice
          of responsible bankers and financial institutions in the jurisdiction
          concerned) including, but not limited to in respect of:

          (a)  any reserve, liquidity, capital adequacy, capital allocation,
               special deposit or similar requirement; or

          (b)  Tax (other than Excluded Tax in respect of the Securitisation
               Fund) on or in respect of payments made or to be made to the Note
               Holder under a Material Document,

          or a present or future interpretation or administration of any of them
          by a Governmental Agency, and that, as a result:

          (c)  the effective cost to the Note Holder of making, funding or
               maintaining the Facility or the Principal Outstanding or
               performing any of its obligations under or in respect of the
               Material Documents is in any way directly or indirectly
               increased; or

          (d)  any amount paid or payable to, or received or receivable by, the
               Note Holder or the effective return to the Note Holder under the
               Material Documents is in any way directly reduced; or

          (e)  the Note Holder is required to make any payment or forego any
               interest or other return on or calculated by reference to:

               (1)  any sum received or receivable by it under or in respect of
                    the Material Documents in an amount which the OF Manager
                    considers material; or

               (2)  any capital or other amount which is or becomes directly or
                    indirectly allocated by the Note Holder to the Principal
                    Outstanding in an amount which the OF Manager considers
                    material; or

          (f)  the Note Holder is restricted in its capacity to enter into, or
               is prevented from entering into, any other transaction with any
               consequence referred to in clause 10.1(c), 10.1(d) or 10.1(e) or
               with any other cost or loss of return to the Note Holder,

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          then, and in each such case:

          (g)  when it becomes aware of the relevant result and has calculated
               or otherwise determined the relevant effects the Note Holder must
               and the OF Manager must cause the Note Holder to promptly notify
               each Transaction Party of such event; and

          (h)  the Issuer and the SF Manager have no obligation to pay any
               amount to compensate the Note Holder for such increased cost,
               reduction, payment or foregone interest or other loss of return.

     10.2 Illegality

          If any event occurs (including, but not limited to, any change in, or
          the introduction, implementation, operation or taking effect of, any
          law, regulation, treaty, order or official directive, or in their
          interpretation or application by any Governmental Agency) which makes
          it unlawful, or impracticable for the Note Holder to make, fund or
          maintain the Principal Outstanding or for the Note Holder or OF
          Manager to perform its obligations under any Material Documents then:

          (a)  the obligations of the Note Holder and the OF Manager under the
               Material Documents are immediately suspended for the duration of
               such illegality or other effect; and

          (b)  the Note Holder and the OF Manager may, by notice to the Issuer
               terminate its obligations under the Material Documents; and

          (c)  if required by the applicable event, or its effect, or if
               necessary to prevent or remedy a breach or to comply with any
               applicable law, regulation, treaty, order or official directive
               the Issuer must and the SF Manager must cause it to immediately
               prepay to the Note Holder the Outstanding Moneys of it in full
               or, if in the OF Manager's opinion delay in prepayment does not
               compound such breach or affect such compliance, at the end of at
               least the longer of 30 days and the period ending on the next
               occurring Payment Date (or such lesser period if the applicable
               law, regulation, treaty, order or official directive requires)
               upon prior notice to that effect from the OF Manager.

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11   Trustee Limitation of Liability Protection

     11.1 Limitation of Liability - Issuer

          (a)  The Issuer enters into this agreement only in its capacity as
               trustee of the Securitisation Fund and no other capacity. A
               liability of the Issuer arising under or in connection with this
               agreement is limited to and can be enforced against the Issuer
               only to the extent to which it can be satisfied out of property
               of the Securitisation Fund out of which the Issuer is actually
               indemnified for the liability. This limitation of the Issuer's
               liability applies despite any other provision of this agreement
               and extends to all liabilities and obligations of the Issuer in
               any way connected with any representation, warranty, conduct,
               omission, agreement or transaction related to this agreement.

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (b)  The parties other than the Issuer may not sue the Issuer in any
               capacity other than as trustee of the Securitisation Fund or seek
               the appointment of a receiver (except in relation to property of
               the Securitisation Fund), a liquidator, an administrator or any
               similar person to the Issuer or prove in any liquidation,
               administration or arrangement of or affecting the Issuer (except
               in relation to property of the Securitisation Fund).

          (c)  The provisions of this clause 11.1 shall not apply to any
               obligation or liability of the Issuer to the extent that it is
               not satisfied because under the Master Trust Deed establishing
               the Securitisation Fund or by operation of law there is a
               reduction in the extent of the Issuer's indemnification out of
               the assets of the Securitisation Fund, as a result of the
               Issuer's fraud, negligence or wilful default.

          (d)  It is acknowledged that the SF Manager is responsible under the
               Master Trust Deed establishing the Securitisation Fund for
               performing a variety of obligations relating to the
               Securitisation Fund, including under this agreement. No act or
               omission of the Issuer (including any related failure to satisfy
               its obligations or breach of representation or warranty under
               this agreement) will be considered fraud, negligence or wilful
               default of the Issuer for the purposes of paragraph (c) of this
               clause 11.1 to the extent to which the act or omission was caused
               or contributed to by any failure by the SF Manager or any other
               person to fulfil its obligations relating to the Securitisation
               Fund or by any other act or omission of the SF Manager or any
               other person.

          (e)  No attorney, agent, receiver or receiver and manager appointed in
               accordance with this agreement has authority to act on behalf of
               the Issuer in a way which exposes the Issuer to any personal
               liability and no act or omission of any such person will be
               considered fraud, negligence or wilful default of the Issuer for
               the purposes of paragraph (c) of this clause 11.1.

          (f)  The Issuer is not obliged to do or refrain from doing anything
               under this agreement (including incur any liability) unless the
               Issuer's liability is limited in the same manner as set out in
               paragraph (a) to (c) of this clause 11.1.

     11.2 Limitation of Liability - Note Holder

          (a)  The Note Holder enters into this agreement only in its capacity
               as trustee of the Origination Fund and no other capacity. A
               liability arising under or in connection with this agreement is
               limited to and can be enforced against the Note Holder only to
               the extent to which it can be satisfied out of property of the
               Origination Fund out of which the Note Holder is actually
               indemnified for the liability. This limitation of the Note
               Holder's liability applies despite any other provision of this
               agreement and extends to all liabilities and obligations of the
               Note Holder in any way connected with any representation,
               warranty, conduct, omission, agreement or transaction related to
               this agreement.

          (b)  The parties other than the Note Holder may not sue the Note
               Holder in any capacity other than as trustee of the Origination
               Fund including seek the appointment of a receiver (except in
               relation to property of the Origination Fund), a liquidator, an
               administrator or any similar person to the Note

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               Holder or prove in any liquidation, administration or arrangement
               of or affecting the Note Holder (except in relation to property
               of the Origination Fund).

          (c)  The provisions of this clause 11.2 shall not apply to any
               obligation or liability of the Note Holder to the extent that it
               is not satisfied because under the Master Trust Deed establishing
               the Origination Fund or by operation of law there is a reduction
               in the extent of the Note Holder's indemnification out of the
               assets of the Origination Fund, as a result of the Note Holder's
               fraud, negligence or wilful default.

          (d)  It is acknowledged that the OF Manager is responsible under the
               Master Trust Deed establishing the Origination Fund for
               performing a variety of obligations relating to the Origination
               Fund, including under this agreement. No act or omission of the
               Note Holder (including any related failure to satisfy its
               obligations or breach of representation or warranty under this
               agreement) will be considered fraud, negligence or wilful default
               of the Note Holder for the purposes of paragraph (c) of this
               clause 11.2 to the extent to which the act or omission was caused
               or contributed to by any failure by the OF Manager or any other
               person to fulfil its obligations relating to the Origination Fund
               or by any other act or omission of the OF Manager or any other
               person.

          (e)  No attorney, agent, receiver or receiver and manager appointed in
               accordance with this agreement has authority to act on behalf of
               the Note Holder in a way which exposes the Note Holder to any
               personal liability and no act or omission of any such person will
               be considered fraud, negligence or wilful default of the Note
               Holder for the purposes of paragraph (c) of this clause 11.2.

          (f)  The Note Holder is not obliged to do or refrain from doing
               anything under this agreement (including incur any liability)
               unless the Note Holder's liability is limited in the same manner
               as set out in paragraph (a) to (c) of this clause 11.2.

     11.3 Wilful Default of the Issuer and the Note Holder

          For the purposes of this agreement the expression "wilful default":

          (a)  in relation to the Issuer and the Note Holder, means a wilful
               default of this agreement by the Issuer or the Note Holder, as
               the case may be,

               (1)  other than a default which:

                    (A)  arises out of a breach of a Transaction Document by a
                         person other than the Issuer or the Note Holder or any
                         person referred to in paragraph (b) of this clause 11.3
                         in relation to the Issuer or the Note Holder;

                    (B)  arises because some other act or omission is a
                         precondition to the relevant act or omission of the
                         Issuer or the Note Holder, and that other act or
                         omission does not occur;

                    (C)  is in accordance with a lawful court order or direction
                         or is required by law; or

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                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

                    (D)  is in accordance with an instruction or direction given
                         to it by any person in circumstances where that person
                         is authorised to do so by any Transaction Document; and

               (2)  in circumstances where had it not committed that default it
                    would have been entitled to recoupment, reimbursement or a
                    right of indemnity for its costs and expenses (if any) in
                    complying with this Deed from the Fund.

          (b)  A reference to the "fraud", "negligence" or "wilful default" of
               the Issuer or the Note Holder means the fraud, negligence or
               wilful default of the Issuer or the Note Holder, as the case may
               be, and of the officers or employees but not the agents or
               delegates of the Issuer or the Note Holder, unless the Issuer or
               the Note Holder is liable for the acts or omissions of such other
               person under the terms of this agreement.

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12   Indemnities

     12.1 General indemnity

          (a)  Subject to Clause 11.1 the Issuer, to the extent it is permitted
               or contemplated under the terms of the Trust Deed, indemnifies on
               a full indemnity basis (including legal costs and expenses
               charged at the usual commercial rates of the relevant legal
               services provider) and out of the property of the Securitisation
               Fund the Note Holder and OF Manager against any claim, action,
               damage, loss, liability, cost, charge, expense, outgoing or
               payment which the Note Holder or OF Manager, as the case may be,
               or an Attorney of the Noteholder or OF Manager pays, suffers,
               incurs or is liable for, in respect of any of the following:

               (1)  a Funding Portion required by a Funding Notice, not being
                    made for any reason but excluding any default by the Note
                    Holder or OF Manager, as the case may be;

               (2)  the occurrence of any Default or Event of Default;

               (3)  the Note Holder or OF Manager, as the case may be,
                    exercising its Powers consequent upon or arising out of the
                    occurrence of any Event of Default.

          (b)  Without limitation to the indemnity contained in clause 12.1(a),
               that indemnity includes the amount determined by the Note Holder
               or OF Manager, as the case may be, as being incurred by reason of
               the liquidation or re-employment of deposits or other funds
               acquired or contracted for by the Note Holder or OF Manager, as
               the case may be to fund or maintain the Principal Outstanding or
               the relevant Funding Portion and includes, but is not limited to,
               loss of margin.

     12.2 Continuing indemnities and evidence of loss

          (a)  Each indemnity of the Issuer contained in this agreement is a
               continuing obligation of the Issuer, despite:

               (1)  any settlement of account; or

--------------------------------------------------------------------------------
                                                                         page 21

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               (2)  the occurrence of any other thing,

               and remains in full force and effect until:

               (3)  all moneys owing, contingently or otherwise, under any of
                    the Material Documents have been paid in full;

               (4)  the Outstanding Moneys are fully and finally repaid.

          (b)  Each indemnity of the Issuer contained in this agreement is an
               additional, separate and independent obligation of the Issuer and
               no one indemnity limits the generality of any other indemnity.

          (c)  Each indemnity of the Issuer contained in this agreement survives
               the termination of any Transaction Document.

          (d)  A certificate under the hand of an Officer of the OF Manager
               detailing the amount of any damage, loss, liability, cost,
               charge, expense, outgoing or payment covered by any indemnity in
               this agreement is sufficient evidence unless the contrary is
               proved.

     12.3 Funds available for indemnity

          The obligations of the Issuer under this clause 12 shall be payable
          solely to the extent that funds are available from time to time for
          that purpose under clause 7 of the Supplementary Bond Terms.

     12.4 Negligence, wilful default or breach of law

          The indemnities in this clause 12 do not extend to any liability,
          loss, cost, charge or expense that is finally and judicially
          determined to result from any negligence, wilful default or breach of
          law by the other parties to this agreement.

     12.5 Notification from Note Holder or OF Manager

          If the Note Holder or the OF Manager receives written notice of any
          act, matter or thing which may give rise to a liability, loss, cost,
          charge or expense in relation to which the Issuer would be required to
          indemnify it under this clause 12, the Note Holder or the OF Manager
          (as the case may be) will notify the Issuer of that act, matter or
          thing giving such details as it is practicable to give as soon as it
          is reasonably practicable and in any event within 5 Business Days of
          it coming to its attention, provided that failure to do so will not
          result in any loss or reduction in the indemnity contained in this
          clause 12 unless the Issuer has been prejudiced in any material
          respect by such failure.

--------------------------------------------------------------------------------

13   Tax, costs and expenses

     13.1 Tax

          (a)  The Issuer must and the SF Manager must cause the Issuer to pay
               any Tax, other than an Excluded Tax in respect of the
               Securitisation Fund, in respect of the execution, delivery,
               performance, release, discharge, amendment, enforcement or
               attempted enforcement or otherwise in respect of any of the
               following:

--------------------------------------------------------------------------------
                                                                         page 22

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               (1)  any Material Document;

               (2)  any agreement or document entered into or signed under any
                    Material Document; and

               (3)  any transaction contemplated under any Material Document or
                    any agreement or document described in clause 13.1(a)(2).

          (b)  The Issuer must and the SF Manager must cause the Issuer to pay
               any fine, penalty or other cost in respect of a failure to pay
               any Tax described in clause 13.1(a) except to the extent that the
               fine, penalty or other cost is caused by the Note Holder's
               failure to lodge money received from the Issuer before the due
               date for lodgement.

          (c)  The Issuer indemnifies out of the property of the Securitisation
               Fund the Note Holder against any amount payable under clause
               13.1(a) or 13.1(b) or both.

     13.2 Costs and expenses

          The Issuer must and the SF Manager must cause the Issuer to pay all
          costs and expenses of the Note Holder and the OF Manager and any
          employee, Officer, agent or contractor of the Note Holder and the OF
          Manager in relation to:

          (a)  the negotiation, preparation, execution, delivery, stamping,
               registration, completion, variation and discharge of any Material
               Document or any agreement or document described in clause
               13.1(a);

          (b)  the enforcement, protection or waiver, or attempted enforcement
               or protection, of any rights under any Material Document or any
               agreement or document described in clause 13.1(a);

          (c)  the consent or approval of the Note Holder or OF Manager given
               under any Material Document or any agreement or document
               described in clause 13.1(a); and

          (d)  any enquiry by any Governmental Agency involving a Transaction
               Party,

          including, but not limited to, any administration costs of the Note
          Holder or the OF Manager, as the case may be, in connection with the
          matters referred to in clause 13.2(b) and 13.2(d) and any legal costs
          and expenses (charged at the usual commercial rates of the relevant
          legal services provider) and any professional consultant's fees for
          any of the above on a full indemnity basis.

--------------------------------------------------------------------------------

14   Interest on overdue amounts

     14.1 Payment of interest

          The Issuer must and the SF Manager must cause the Issuer to pay
          interest on:

          (a)  any of the Outstanding Moneys due and payable, but unpaid; and

          (b)  on any interest payable but unpaid in accordance with clause 5.

--------------------------------------------------------------------------------
                                                                         page 23

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     14.2 Accrual of interest

          The interest payable under this clause 14:

          (a)  accrues from day to day from and including the due date for
               payment up to the actual date of payment, before and, as an
               additional and independent obligation, after any judgment or
               other thing into which the liability to pay the Outstanding
               Moneys becomes merged; and

          (b)  may be capitalised by the Note Holder on any Payment Date.

     14.3 Rate of interest

          The rate of interest payable under this clause 14 on any part of the
          Outstanding Moneys is the higher of:

          (a)  the Overdue Rate; and

          (b)  the rate fixed or payable under a judgment or other thing
               referred to in clause 14.2(a).

--------------------------------------------------------------------------------

15   Assignment

     15.1 Assignment by Transaction Party

          A Transaction Party must not transfer or assign any of its rights or
          obligations under any Material Document without the prior written
          consent of the other parties.

     15.2 Assignment by Note Holder and OF Manager

          Neither the Note Holder nor the OF Manager may assign any of its
          rights or transfer by novation any of its rights and obligations under
          this agreement without the prior written consent of the other parties.

     15.3 Assist transfer or assignment

          At the request of the Note Holder or OF Manager, the Issuer and the SF
          Manager must do any thing including, but not limited to, executing any
          documents or amending any Material Document, to effect any transfer or
          assignment under this clause 15.

     15.4 Participation permitted

          The Note Holder and OF Manager may grant by way of sub-participation
          (being a right to share in the financial effects of this agreement,
          without any rights against the Issuer) all or part of the Note
          Holder's or OF Manager's, as the case may be, rights and benefits
          under this agreement to any other person without having to obtain the
          consent of or to notify the Issuer or the SF Manager.

     15.5 Lending Office

          (a)  The Note Holder may change its Lending Office at any time.

          (b)  The Note Holder must promptly notify the Issuer and the SF
               Manager of any such change.

--------------------------------------------------------------------------------
                                                                         page 24

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     15.6 Disclosure

          Any party may disclose to a proposed assignee, transferee or
          sub-participant any information relating to any other party or the
          Transaction Documents whether or not confidential and whether or not
          the disclosure would be in breach of any law or of any duty owed to
          that other party.

     15.7 No increase in costs

          If the Note Holder or OF Manager assigns or transfers any of its
          rights or obligations under any Material Document or changes its
          Lending Office the Issuer is not required to pay any net increase in
          the aggregate amount of costs, Taxes, fees or charges which:

          (a)  are a direct consequence of the transfer or assignment or change
               of Lending Office; and

          (b)  the Note Holder or OF Manager as the case may be, or its
               transferee or assignee was aware of or ought reasonably to have
               been aware of, at the time of the transfer or assignment or
               change of Lending Office.

--------------------------------------------------------------------------------

16   General

     16.1 Confidential information

          The Note Holder and OF Manager may, for the purpose of exercising any
          Power, disclose to any person any documents or records of, or
          information about, any Transaction Document, or the assets, business
          or affairs of any Transaction Party, whether or not confidential and
          whether or not the disclosure would be in breach of any law or of any
          duty owed to any Transaction Party.

     16.2 Performance by Note Holder of obligations

          If a Transaction Party defaults in fully and punctually performing any
          obligation contained or implied in any Transaction Document, the Note
          Holder and OF Manager may, without prejudice to any Power do all
          things necessary or desirable, in the opinion of the Note Holder or OF
          Manager, as the case may be, to make good or attempt to make good that
          default to the satisfaction of the Note Holder or OF Manager, as the
          case may be.

     16.3 Transaction Party to bear cost

          Without prejudice to clause 11, any thing which must be done by a
          Transaction Party under any Material Document, whether or not at the
          request of the Note Holder or OF Manager, must be done at the cost of
          the Transaction Party.

     16.4 Notices

          (a)  Any notice or other communication including, but not limited to,
               any request, demand, consent or approval, to or by a party to any
               Material Document:

--------------------------------------------------------------------------------
                                                                         page 25

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               (1)  must be in legible writing and in English addressed as shown
                    below (or if sent by facsimile, to the facsimile numbers
                    below) and marked to the attention of the following:

                    (A)  if to the Note Holder:

                         Address:     Level 7
                                      9 Castlereagh Street
                                      Sydney, NSW 2000

                         Attention:   Head of Securitisation/Manager -
                                      Securitisation

                         Facsimile:   (02) 9221 7870; and

                    (B)  if to the Issuer:

                         Address:     Level 7
                                      9 Castlereagh Street
                                      Sydney, NSW 2000

                         Attention:   Head of Securitisation/Manager -
                                      Securitisation

                         Facsimile:   (02) 9221 7870; and

                    (C)  if to the SF Manager:

                         Address:     Level 23,
                                      360 Collins Street,
                                      Melbourne, Victoria 3000

                         Attention:   Manager - Capital Markets

                         Facsimile:   (03) 9605 6200; and

                    (D)  if to the OF Manager:

                         Address:     Level 23,
                                      360 Collins Street,
                                      Melbourne, Victoria 3000

                         Attention:   Manager - Capital Markets

                         Facsimile:   (03) 9605 6200;

                    or as specified to the sender by any party by notice;

               (2)  where the sender is a company, must be signed by an Officer
                    or under the common seal of the sender;

               (3)  is regarded as being given by the sender and received by the
                    addressee:

                    (A)  if by delivery in person, when delivered to the
                         addressee;

                    (B)  if by post, on delivery to the addressee; or

                    (C)  if by facsimile transmission, as long as it is legibly
                         received, when transmitted to the addressee,

                    but if the delivery or receipt is on a day which is not a
                    Business Day or is after 4.00 pm (addressee's time) it is
                    regarded as received at 9.00 am on the following Business
                    Day;

--------------------------------------------------------------------------------
                                                                         page 26

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

               (4)  can be relied upon by the addressee and the addressee is not
                    liable to any other person for any consequences of that
                    reliance if the addressee believes it to be genuine, correct
                    and authorised by the sender; and

               (5)  if to the Note Holder must be copied to the OF Manager and
                    if to the Issuer must be copied to the SF Manager.

          (b)  A facsimile transmission is regarded as legible unless the
               addressee telephones the sender within 2 hours after the
               transmission is received or regarded as received under clause
               16.4(a)(3) and informs the sender that it is not legible.

          (c)  In this clause 16.4, a reference to an addressee includes a
               reference to an addressee's Officers, agents or employees.

     16.5 Governing law and jurisdiction

          (a)  This agreement is governed by the laws of New South Wales.

          (b)  The Parties irrevocably submit to the non-exclusive jurisdiction
               of the courts of New South Wales.

     16.6 Prohibition and enforceability

          (a)  Any provision of, or the application of any provision of, any
               Material Document or any Power which is prohibited in any
               jurisdiction is, in that jurisdiction, ineffective only to the
               extent of that prohibition.

          (b)  Any provision of, or the application of any provision of, any
               Material Document which is void, illegal or unenforceable in any
               jurisdiction does not affect the validity, legality or
               enforceability of that provision in any other jurisdiction or of
               the remaining provisions in that or any other jurisdiction.

     16.7 Waivers

          (a)  Waiver of any right arising from a breach of this agreement or of
               any Power arising upon default under this agreement or upon the
               occurrence of an Event of Default must be in writing and signed
               by the party granting the waiver.

          (b)  A failure or delay in exercise, or partial exercise, of:

               (1)  a right arising from a breach of this agreement or the
                    occurrence of an Event of Default; or

               (2)  a Power created or arising upon default under this agreement
                    or upon the occurrence of an Event of Default,

               does not result in a waiver of that right or Power.

          (c)  A party is not entitled to rely on a delay in the exercise or
               non-exercise of a right or Power arising from a breach of this
               agreement or on a default under this agreement or on the
               occurrence of an Event of Default as constituting a waiver of
               that right or Power.

          (d)  A party may not rely on any conduct of another party as a defence
               to exercise of a right or Power by that other party.

--------------------------------------------------------------------------------
                                                                         page 27

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

          (e)  This clause may not itself be waived except by writing.

     16.8 Variation

          A variation of any term of this agreement must be in writing and
          signed by the parties.

     16.9 Cumulative rights

          The Powers are cumulative and do not exclude any other right, power,
          authority, discretion or remedy of the Note Holder or OF Manager.

     16.10 Attorneys

          Each of the Attorneys executing this agreement states that the
          Attorney has no notice of the revocation of the power of attorney
          appointing that Attorney.

     16.11 Binding Obligations

          Each party to this agreement acknowledges that the obligations
          expressed in this agreement are binding upon it.

     16.12 Winding up of Securitisation Fund

          Prior to the Termination Date, neither the Note Holder nor the OF
          Manager may seek to terminate or wind up the Securitisation Fund as a
          consequence of any breach of this agreement or any Note by the Issuer
          or the SF Manager.

     16.13 Termination clause

          This agreement can only be terminated on or after the Termination
          Date.

--------------------------------------------------------------------------------
                                                                         page 28

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

--------------------------------------------------------------------------------

Schedule 1 - Funding Notice (clause 4.2)

To:  Perpetual Trustees Australia Limited
     in its capacity as trustee of the Superannuation Members' Home Loans
     Origination Fund No. 3
     (Note Holder)

And: ME Portfolio Management Limited
     (OF Manager)

     Attention: Head of Securitisation/Manager - Securitisation

--------------------------------------------------------------------------------

We refer to the agreement dated [insert date] [**] 2004 (Agreement). Pursuant to
clause 4 of the Agreement:

(a)  We give you notice that we require the Issuer to issue to the Note Holder a
     Note from SMHL Global Fund No. 6 on [insert date] (Funding Date) at [insert
     details];

(b)  The aggregate principal amount of the Note is: $[insert amount];

(c)  We request that the proceeds be remitted to account number [insert details]
     at [insert address];/ [insert alternative instructions]

Expressions defined in the Agreement have the same meaning when used in this
Funding Notice.

Dated:                 [insert date]
       ---------------

Signed for and on behalf of
ME Portfolio Management Limited

-----------------------------------
Officer's signature

-----------------------------------
Name (please print)

--------------------------------------------------------------------------------
                                                                         page 29

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

--------------------------------------------------------------------------------

Schedule 2 - Conditions

            Redraw Funding Facility Agreement- SMHL Global Fund No. 6

                      PERPETUAL TRUSTEES AUSTRALIA LIMITED
                              (ABN 86 000 431 827)
            in its capacity as trustee of the SMHL Global Fund No. 6

                 of Level 7, 39 Hunter Street, Sydney, NSW, 2000

                                   ("Issuer")

whose office for the purposes of payment is at Level 7, 9 Castlereagh Street,
Sydney, New South Wales or such other address as the Issuer may notify to the
Note Holder from time to time.

--------------------------------------------------------------------------------
1    Note

(a)  This Note certificate is issued as part of the Notes known as the SMHL
     Global Fund No. 6. The terms and conditions of the issue of this Note and
     repayment are constituted by this Note and the Redraw Funding Facility
     Agreement for Issue and Repayment of Notes dated [**] 2004 between the
     Issuer, the Note Holder, ME Portfolio Management Limited (ABN 79 005 964
     134) of Level 23, 360 Collins Street, Melbourne, Victoria in its capacity
     as manager of SMHL Global Fund No. 6 (SF Manager) and ME Portfolio
     Management Limited (ABN 79 005 964 134) of Level 23, 360 Collins Street,
     Melbourne, Victoria, in its capacity as manager of the Superannuation
     Members' Home Loans Origination Fund No. 3 (OF Manager) (Agreement). Terms
     defined in the Agreement have the same meaning when used in these
     Conditions.

(b)  Subject to clause 3, the Issuer promises to repay the Note Holder in
     accordance with the Agreement.

(c)  This Note may only be assigned or transferred with the prior written
     consent of the Issuer and subject to and in accordance with the Agreement.

2    Derivation of payment

     The parties acknowledge that the payments to be made by the Issuer under
     this Note are derived by it from the receipts from a "mortgage" or "pool of
     mortgages", as those terms are defined in section 3 of the Duties Act 2000
     (Vic).

3    Extent of liability of Issuer

(a)  The Issuer issues this Note only in its capacity as trustee of the
     Securitisation Fund and no other capacity. A liability of the Issuer
     arising under or in connection with this Note or the Agreement is limited
     to and can be enforced against the Issuer only to the extent to which it
     can be satisfied out of property of the Securitisation Fund out of which
     the Issuer

--------------------------------------------------------------------------------
                                                                         page 30

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

     is actually indemnified for the liability. This limitation of the Issuer's
     liability applies despite any other provision of this Note or the Agreement
     and extends to all liabilities and obligations of the Issuer in any way
     connected with any representation, warranty, conduct, omission, agreement
     or transaction related to this Note or the Agreement.

(b)  The parties other than the Issuer may not sue the Issuer in any capacity
     other than as trustee of the Securitisation Fund including seek the
     appointment of a receiver (except in relation to property of the
     Securitisation Fund), a liquidator, an administrator or any similar person
     to the Issuer or prove in any liquidation, administration or arrangement of
     or affecting the Issuer (except in relation to property of the
     Securitisation Fund).

(c)  The provisions of this clause 3 shall not apply to any obligation or
     liability of the Issuer to the extent that it is not satisfied because
     under the Master Trust Deed establishing the Securitisation Fund or by
     operation of law there is a reduction in the extent of the Issuer's
     indemnification out of the assets of the Securitisation Fund Issuer, as a
     result of the Issuer's fraud, negligence or wilful default.

(d)  It is acknowledged that the SF Manager is responsible under the Master
     Trust Deed establishing the Securitisation Fund for performing a variety of
     obligations relating to the Securitisation Fund, including under this Note
     and the Agreement. No act or omission of the Issuer (including any related
     failure to satisfy its obligations or breach of representation or warranty
     under this Note or the Agreement) will be considered fraud, negligence or
     wilful default of the Issuer for the purposes of paragraph (c) of this
     clause 3 to the extent to which the act or omission was caused or
     contributed to by any failure by the SF Manager or any other person to
     fulfil its obligations relating to the Securitisation Fund or by any other
     act or omission of the SF Manager or any other person.

(e)  No attorney, agent, receiver or receiver and manager appointed in
     accordance with this Note or the Agreement has authority to act on behalf
     of the Issuer in a way which exposes the Issuer to any personal liability
     and no act or omission of any such person will be considered fraud,
     negligence or wilful default of the Issuer for the purposes of paragraph
     (c) of this clause 3.

(f)  The Issuer is not obliged to do or refrain from doing anything under this
     Note or the Agreement (including incur any liability) unless the Issuer's
     liability is limited in the same manner as set out in paragraph (a) to (c)
     of this clause 3.

4    Extent of liability of Note Holder

(a)  The Note Holder enters into this Note only in its capacity as trustee of
     the Origination Fund and no other capacity. A liability arising under or in
     connection with this Note or the Agreement is limited to and can be
     enforced against the Note Holder only to the extent to which it can be
     satisfied out of property of the Origination Fund out of which the Note
     Holder is actually indemnified for the liability. This limitation of the
     Note Holder's liability applies despite any other provision of this Note or
     the Agreement and extends to all liabilities and obligations of the Note
     Holder in any way connected with any representation, warranty, conduct,
     omission, agreement or transaction related to this Note or the Agreement.

(b)  The parties other than the Note Holder may not sue the Note Holder in any
     capacity other than as trustee of the Origination Fund including seek the
     appointment of a receiver (except in relation to property of the
     Origination Fund), a liquidator, an administrator or any similar person to
     the Note Holder or prove in any liquidation, administration or arrangement
     of or affecting the Note Holder (except in relation to property of the
     Origination Fund).

--------------------------------------------------------------------------------
                                                                         page 31

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

(c)  The provisions of this clause 4 shall not apply to any obligation or
     liability of the Note Holder to the extent that it is not satisfied because
     under the trust deed establishing the Origination Fund or by operation of
     law there is a reduction in the extent of the Note Holder's indemnification
     out of the assets of the Origination Fund, as a result of the Note Holder's
     fraud, negligence or wilful default.

(d)  It is acknowledged that the OF Manager is responsible under the trust deed
     establishing the Origination Fund for performing a variety of obligations
     relating to the Origination Fund, including under this Note and the
     Agreement. No act or omission of the Note Holder (including any related
     failure to satisfy its obligations or breach of representation or warranty
     under this Note or the Agreement) will be considered fraud, negligence or
     wilful default of the Note Holder for the purposes of paragraph (c) of this
     clause 4 to the extent to which the act or omission was caused or
     contributed to by any failure by the OF Manager or any other person to
     fulfil its obligations relating to the Origination Fund or by any other act
     or omission of the OF Manager or any other person.

(e)  No attorney, agent, receiver or receiver and manager appointed in
     accordance with this Note or the Agreement has authority to act on behalf
     of the Note Holder in a way which exposes the Note Holder to any personal
     liability and no act or omission of any such person will be considered
     fraud, negligence or wilful default of the Note Holder for the purposes of
     paragraph (c) of this clause 4.

(f)  The Note Holder is not obliged to do or refrain from doing anything under
     this Note or the Agreement (including incur any liability) unless the Note
     Holder's liability is limited in the same manner as set out in paragraph
     (a) to (c) of this clause 4.

--------------------------------------------------------------------------------
                                                                         page 32

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

--------------------------------------------------------------------------------

Schedule 3 - Facility Provider Funding Notice (clause 4.4)

To:  Perpetual Trustees Australia Limited
     in its capacity as trustee of SMHL Global Fund No. 6
     (Issuer)

And: ME Portfolio Management Limited
     (SF Manager)

     Attention: Head of Securitisation/Manager - Securitisation

--------------------------------------------------------------------------------

We refer to the agreement dated [insert date] [**] 2004 (Agreement). Pursuant to
clause 4 of the Terms and Conditions:

(a)  we give you notice that we require the Issuer to issue to the Note Holder a
     Note from SMHL Global Fund No. 6 on [insert date] (Funding Date) at [insert
     details];

(b)  the aggregate principal amount of the Note is $[insert amount];

Expressions defined in the Agreement have the same meaning when used in this
Funding Notice.

Dated:                 [insert date]
       ---------------

Signed for and on behalf of
ME Portfolio Management Limited

-----------------------------------
Officer's signature

-----------------------------------
Name (please print)

--------------------------------------------------------------------------------
                                                                         page 33

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

--------------------------------------------------------------------------------

Executed as an agreement:

Signed for
Perpetual Trustees Australia Limited
by its attorney in
the presence of:

-----------------------------------          -----------------------------------
Witness                                      Attorney

-----------------------------------          -----------------------------------
Name (please print)                          Name (please print)

Signed for
Perpetual Trustees Australia Limited
by its attorney in
the presence of:

-----------------------------------          -----------------------------------
Witness                                      Attorney

-----------------------------------          -----------------------------------
Name (please print)                          Name (please print)

--------------------------------------------------------------------------------
                                                                         page 34

<PAGE>

                      Redraw Funding Facility Agreement - SMHL Global Fund No. 6

Signed for
ME Portfolio Management Limited
by its attorney in
the presence of:

-----------------------------------          -----------------------------------
Witness                                      Attorney

-----------------------------------          -----------------------------------
Name (please print)                          Name (please print)

Signed for
ME Portfolio Management Limited
by its attorney in
the presence of:

-----------------------------------          -----------------------------------
Witness                                      Attorney

-----------------------------------          -----------------------------------
Name (please print)                          Name (please print)

--------------------------------------------------------------------------------
                                                                         page 35<PAGE>

                                                                    Exhibit 4.16

================================================================================

                                PANAVISION INC.,
                                   AS BORROWER

                            ------------------------

                                   $20,000,000

                              AMENDED AND RESTATED
                  SENIOR SUBORDINATED LINE OF CREDIT AGREEMENT

                          Dated as of January 16, 2004

                           --------------------------

                       MACANDREWS & FORBES HOLDINGS INC.,

                                    AS LENDER

================================================================================

<PAGE>

                                                                  EXECUTION COPY

                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----

SECTION 1. DEFINITIONS........................................................4
         1.1.       Defined Terms.............................................4
         1.2.       Other Definition Provisions...............................8

SECTION 2. AMOUNT AND TERMS OF COMMITMENT.....................................8
         2.1.       The Commitment............................................8
         2.2.       Procedure for Borrowing...................................8
         2.3.       Voluntary Termination or Reduction of the Commitment......9
         2.4.       Repayment of Loans; Evidence of Debt......................9
         2.5.       Use of Proceeds...........................................9

SECTION 3. PROVISIONS RELATING TO THE LOANS...................................9
         3.1.       Optional Prepayments......................................9
         3.2.       Mandatory Prepayments.....................................9
         3.3.       Interest Rate and Payment Dates..........................10
         3.4.       Method of Payments.......................................10

SECTION 4. REPRESENTATIONS AND WARRANTIES....................................11
         4.1.       Corporate Existence......................................11
         4.2.       Corporate Power..........................................11
         4.3.       No Legal Bar to Loans....................................11

SECTION 5. CONDITIONS PRECEDENT..............................................11
         5.1.       Conditions to Initial Loan...............................11
         5.2.       Conditions to Each Loan..................................12

SECTION 6. EVENTS OF DEFAULT.................................................12
         6.1.       Events of Default........................................12

SECTION 7. SUBORDINATION.....................................................13
         7.1.       General..................................................13
         7.2.       Senior Debt..............................................14
         7.3.       Bankruptcy, Insolvency and Liquidation, Etc..............14
         7.4.       Senior Debt Default......................................15
         7.5.       Senior Subordinated Notes................................16

SECTION 8. MISCELLANEOUS.....................................................16
         8.1.       Amendments and Waivers...................................16
         8.2.       Notices..................................................16
         8.3.       No Waiver; Cumulative Remedies...........................17
         8.4.       Survival of Representations and Warranties...............17
         8.5.       Payment of Expenses; General Indemnity...................17
         8.6.       Successors and Assigns...................................18
         8.7.       Counterparts.............................................18
<PAGE>
                                                                    Exhibit 4.16

         8.8.       Severability.............................................19
         8.9.       Integration..............................................19
         8.10.      GOVERNING LAW............................................19
         8.11.      Submission To Jurisdiction; Waivers......................19
         8.12.      WAIVERS OF JURY TRIAL....................................19

                                       3
<PAGE>
                                                                    Exhibit 4.16

                  SENIOR SUBORDINATED LINE OF CREDIT AGREEMENT

         AMENDED AND RESTATED SENIOR SUBORDINATED LINE OF CREDIT AGREEMENT,
dated as of January 16, 2004, between PANAVISION INC., a Delaware corporation
(the "Borrower"), and MACANDREWS & FORBES HOLDINGS INC., a Delaware corporation
(the "Lender").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, the Borrower and the Lender are party to that certain Senior
Subordinated Line of Credit Agreement, dated as of November 12, 2003 (the
"Existing Agreement"), pursuant to which the Lender agreed to extend credit on a
subordinated unsecured basis in order to enable the Borrower, subject to the
terms and conditions of the Existing Agreement, to borrow, on a revolving basis,
at any time and from time to time an aggregate principal amount at any time
outstanding not to exceed $10,000,000;

         WHEREAS, the Borrower has requested the Lender (i) to extend the
maturity date under the Existing Agreement to April 16, 2009, (ii) to increase
the commitment under the Existing Agreement to an aggregate principal amount at
any one time outstanding of up to $20,000,000 and (iii) to make certain other
changes;

         WHEREAS, the Lender is willing to extend the maturity date, increase
the commitment under the Existing Agreement and to make the other changes
requested by the Borrower only on the terms and subject to the conditions set
forth herein;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereto hereby agree to amend and restate
the Existing Agreement as follows:

         SECTION 1. DEFINITIONS

         1.1. Defined Terms. As used in this Agreement, the following terms
shall have the following respective meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

         "Affiliate" of any Person means any Person that directly or indirectly
controls, or is under common control with, or is controlled by, such Person. As
used in this definition, "control" (including with its correlative meanings,
"controlled by" and "under common control with") shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise).

         "Agreement" shall mean this Amended and Restated Senior Subordinated
Line of Credit Agreement, as the same may be amended, supplemented or otherwise
modified from time to time.

                                       4
<PAGE>
                                                                    Exhibit 4.16

         "Applicable Rate" means the sum of (i) the three-month London Interbank
Offered Rate published in the Wall Street Journal on the day of the relevant
borrowing, provided that if the Wall Street Journal is not published on such
day, the Lender shall designate in good faith an alternative source for
determining the three-month London Interbank Offered Rate on such day, (ii) the
Applicable Margin for Revolving Credit Loans bearing interest at the rate for
Eurodollar Loans under (and as each such term is defined in) the Bank Credit
Agreement and (iii) 0.5%.

         "Available Commitment" means, at any time, an amount equal to the
excess, if any, of (a) the Commitment over (b) the aggregate principal amount of
all Loans then outstanding.

         "Bank Credit Agreement" means the Amended and Restated Credit Agreement
of even date herewith, by and among the Borrower, the several banks and other
financial institutions from time to time parties thereto, the Arranger named
therein, and JPMorgan Chase Bank, as Administrative Agent, as amended,
supplemented and otherwise modified through the date hereof and as further
amended, supplemented, modified, replaced or refinanced, in whole or in part,
from time to time.

         "Bankruptcy Law" means Title 11 of the United States Code or any
similar Federal or state law for the relief of debtors.

         "Blocking Period" is defined in Section 7.4 hereof.

         "Borrower" is defined in the introductory paragraph of this Agreement.

         "Borrower's Bank Account" is defined in Section 2.2(a) hereof.

         "Borrowing Amount", "Borrowing Date" and "Borrowing Notice" are each
defined in Section 2.2(a) hereof.

         "Business Day" means a day other than a Saturday, Sunday or other day
on which commercial banks in New York, New York are authorized or required by
law to close.

         "Commitment" means the obligation of the Lender to make Loans to the
Borrower hereunder in an aggregate principal amount at any one time outstanding
of up to $20,000,000, as such obligation is reduced from time to time in
accordance with Section 2.3 hereof.

         "Commitment Period" means the period from and including the Effective
Date to the Business Day immediately preceding the Termination Date.

         "Contractual Obligation" means, with respect to any Person, any
provision of any material debt security or of any material preferred stock or
other equity interest issued by such Person or of any material indenture,
mortgage, agreement, guarantee,

                                       5
<PAGE>
                                                                    Exhibit 4.16

instrument or undertaking to which such Person is a party or by which it or any
of its material property is bound.

         "Cross Default" of any Person means (a) default in the payment of any
amount when due (whether at maturity or by acceleration) on any of its
Indebtedness (other than any such default in respect of the Loans) or in the
payment of any matured Guarantee Obligation in respect of any Indebtedness of
any other Person (except for any such payments on account of any such
Indebtedness and Guarantee Obligations in an aggregate principal amount at any
one time outstanding of up to $5,000,000) or (b) default in the observance or
performance of any other agreement or condition relating to any such
Indebtedness (except for any such Indebtedness and Guarantee Obligations in an
aggregate principal amount at any one time outstanding of up to $5,000,000) or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which
default or other event or condition is to cause, or to permit the holder or
holders of such Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause, with the giving of notice if required, such Indebtedness
(except for any such Indebtedness in an aggregate principal amount at any one
time outstanding of up to $5,000,000) to become due or to be required to be
redeemed or repurchased prior to its stated maturity. For purposes of this
definition, the terms "Indebtedness" and "Guarantee Obligation" shall have the
meanings given to them in the Bank Credit Agreement.

         "Default" means any of the events specified in Section 6.1 hereof,
whether or not any requirement for the giving of notice, the lapse of time, or
both, or any other condition specifically set forth therein, has been satisfied.

         "Dollars" and "$" mean dollars in lawful currency of the United States
of America.

         "Effective Date" is defined in Section 5.1 hereof.

         "Eurodollar Loans" has the meaning set forth in the Bank
Credit Agreement.

         "Event of Default" means any of the events specified in Section 6.1
hereof, provided that any requirement for the giving of notice, the lapse of
time, or both, or any other condition specifically set forth therein, has been
satisfied.

         "Existing Agreement" is defined in the recitals to this Agreement.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government (including, without limitation, any governmental department,
commission, board, bureau, agency or instrumentality, or other court or
arbitrator, in each case whether of the United States of America or foreign).

                                       6
<PAGE>
                                                                    Exhibit 4.16

         "Indenture" means the Indenture of even date herewith, by and among the
Borrower, the Subsidiary Guarantors named therein and Wilmington Trust Company,
as may be amended, supplemented, modified or replaced, in whole or in part, from
time to time.

         "Interest Payment Date" means, as to any Loan, the Termination Date and
the date of any prepayment made in respect thereof.

         "Lender" is defined in the introductory paragraph of this Agreement.

         "Loans" is defined in Section 2.1(a) hereof.

         "Maturity Date" means April 16, 2009.

         "Obligations" is defined in Section 7.2 hereof.

         "Person" means an individual, a partnership, a corporation, a business
trust, a joint stock company, a limited liability company, a trust, an
unincorporated association, a joint venture, a Governmental Authority or any
other entity of any nature whatsoever.

         "Requirement of Law" means, for any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation, or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its material property or to which such
Person or any of its material property is subject.

         "Senior Debt" is defined in Section 7.2 hereof.

         "Subsidiary" of any Person means a corporation or other entity of which
shares of capital stock or other ownership interests having ordinary voting
power (other than stock or other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the directors
of such corporation, or other Persons performing similar functions for such
entity, are owned, directly or indirectly, by such Person; provided that, (a)
unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
the Borrower and (b) unless otherwise qualified, all references to a
"wholly-owned Subsidiary" in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Borrower of which the Borrower directly or indirectly owns
all of the capital stock or other ownership interests (other than directors'
qualifying shares).

         "Termination Date" means the Maturity Date or, if earlier, the date
upon which the Commitment shall terminate in accordance with the terms hereof.

                                       7
<PAGE>
                                                                    Exhibit 4.16

         1.2. Other Definition Provisions.

                  (a) All terms defined in this Agreement shall have such
defined meanings when used in any certificate or other document made or
delivered pursuant hereto or thereto unless otherwise defined therein.

                  (b) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and Section,
subsection, Schedule and Exhibit references contained in this Agreement are
references to Sections, subsections, Schedules and Exhibits in or to this
Agreement, unless otherwise specified.

         SECTION 2. AMOUNT AND TERMS OF COMMITMENT

         2.1. The Commitment.

                  (a) Subject to the terms and conditions hereof, the Lender
agrees to make revolving loans ("Loans") in Dollars to the Borrower from time to
time during the Commitment Period with an aggregate amount of principal
outstanding at any one time not to exceed the amount of the Commitment then in
effect.

                  (b) During the Commitment Period, the Borrower may use the
Commitment by borrowing, prepaying the Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof.

                  (c) The $3,500,000.00 aggregate principal amount outstanding
as of the date hereof under the Existing Agreement shall be deemed a Loan issued
and outstanding under this Agreement as of the date hereof.

         2.2. Procedure for Borrowing.

                  (a) The Borrower may borrow under the Commitment during the
Commitment Period on any Business Day; provided, that the Borrower shall deliver
to the Lender a written notice (a "Borrowing Notice") which must (i) specify the
date on which such borrowing is to be made (the "Borrowing Date"), the amount to
be borrowed from the Lender on such Borrowing Date (the "Borrowing Amount"), and
the bank account and other pertinent wire transfer instructions of the Borrower
to which such borrowing is to be deposited by the Lender (the "Borrower's Bank
Account"), (ii) certify that all applicable conditions to such borrowing
hereunder have been satisfied and (iii) be received by the Lender prior to 1:00
p.m., New York City time, one Business Day prior to such Borrowing Date or, in
the case of a Loan to be made on the Effective Date, on or before the Borrowing
Date.

                  (b) On each Borrowing Date set forth in a Borrowing Notice,
the Lender will make a Loan to the Borrower in an amount equal to the lesser of
(i) the Borrowing Amount set forth in such Borrowing Notice and (ii) the
Available Commitment by making the proceeds thereof available to the Borrower in
immediately

                                       8
<PAGE>
                                                                    Exhibit 4.16

available funds in Dollars not later than 4:00 p.m., New York City time, on such
Borrowing Date to the Borrower's Bank Account.

         2.3. Voluntary Termination or Reduction of the Commitment. The Borrower
shall have the right, in its sole discretion, to terminate the Commitment or,
from time to time, to permanently reduce the Commitment during the Commitment
Period by delivering to the Lender a written notice specifying such termination
or the amount of such reduction. Any termination of or permanent reduction in
the Commitment pursuant to this Section 2.3 shall take effect on the date
specified in such written notice.

         2.4. Repayment of Loans; Evidence of Debt.

                  (a) The Borrower hereby unconditionally promises to pay to the
Lender the then unpaid principal amount of each Loan on the Termination Date.
The Borrower hereby further agrees to pay to the Lender interest on the unpaid
principal amount of each Loan from time to time outstanding from the date hereof
until payment in full thereof at the rates per annum and in the manner set forth
in Section 3.3 hereof.

                  (b) The Lender shall maintain an account evidencing the
indebtedness of the Borrower to the Lender resulting from the Loans, including
the outstanding principal amount of each Loan, accrued and unpaid interest
outstanding in respect thereof and the amount of any sum received by the Lender
hereunder from the Borrower in respect of the Loans and the manner in which it
was applied. The entries made in such account of the Lender shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, however,
that the failure of the Lender to maintain any such account, or any error
therein, shall not in any manner affect the obligation of the Borrower to repay
(with applicable interest) the Loans in accordance with the terms of this
Agreement.

         2.5. Use of Proceeds. The Borrower shall use the proceeds of the Loans
hereunder to provide working capital for the Borrower and its Subsidiaries and
for other general corporate purposes.

         SECTION 3. PROVISIONS RELATING TO THE LOANS

         3.1. Optional Prepayments. The Borrower may prepay the Loans, in whole
or in part, at any time without premium or penalty. Each such optional
prepayment shall be applied first to accrued and unpaid interest on the Loans,
and then to the outstanding principal amount of the Loans on a pro rata basis.

         3.2. Mandatory Prepayments. (a) If, at any time, the aggregate
outstanding principal amount of the Loans exceeds the Commitment then in effect,
the Borrower shall immediately repay the principal amount of the Loans in an
amount equal to such excess.

                                       9
<PAGE>
                                                                    Exhibit 4.16

                  (b) Upon the effective date of any reduction in the Commitment
pursuant to Section 2.3 hereof, the Borrower shall prepay on such date the
principal amount of the Loans then outstanding in excess of the Commitment after
giving effect to such reduction.

                  (c) On the Termination Date, the Commitment shall terminate
and the Borrower shall cause all outstanding Loans, together with any interest
accrued thereon, to be paid in full.

         3.3. Interest Rate and Payment Dates.

                  (a) All Loans shall bear interest on the unpaid principal
amount thereof at a rate per annum equal to the Applicable Rate.

                  (b) If all or a portion of any Loan, any interest payable
thereon or any other amount payable hereunder shall not be paid when due
(whether at the stated maturity, by acceleration, as a result of an event
requiring a mandatory prepayment or otherwise), then, for so long as such amount
remains unpaid, such overdue amount shall bear interest at a rate per annum
equal to the Applicable Rate plus 2%.

                  (c) Interest on the outstanding principal amount of each Loan
from time to time shall accrue and be payable in arrears in cash on each
Interest Payment Date, provided that interest accruing pursuant to paragraph (b)
of this Section shall be payable from time to time on demand.

                  (d) Interest shall be calculated on the basis of a 365 (or
366, as the case may be) day year for the actual days elapsed.

         3.4. Method of Payments.

                  (a) All payments (including prepayments) to be made by the
Borrower on account of principal, interest, costs and expenses shall be made
without set-off, counterclaim, deduction or withholding and shall be made to the
Lender at such location or to such account as the Lender may specify to the
Borrower, on or prior to 1:00 p.m., New York City time, on the due date thereof,
in Dollars and in immediately available funds.

                  (b) If any payment hereunder becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding
Business Day and interest thereon shall be payable at the then applicable rate
during such extension.

                                       10
<PAGE>

                                                                    Exhibit 4.16

         SECTION 4. REPRESENTATIONS AND WARRANTIES

         In order to induce the Lender to enter into this Agreement and to make
the Loans hereunder, the Borrower hereby represents and warrants to the Lender
that:

         4.1. Corporate Existence. The Borrower is duly incorporated, validly
existing and in good standing under the laws of the State of Delaware.

         4.2. Corporate Power.

                  (a) The Borrower has the corporate power, authority and legal
right to execute, deliver and perform this Agreement and to borrow hereunder,
and it has taken as of the Effective Date all necessary corporate action to
authorize its borrowings on the terms and conditions of this Agreement and to
authorize the execution, delivery and performance of this Agreement.

                  (b) No consent of any other Person (including, without
limitation, stockholders or creditors of the Borrower or of any parent entity of
the Borrower), and no consent, license, permit, approval or authorization of,
exemption by, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery, performance,
validity or enforceability of this Agreement by or against the Borrower, except
for any consents, licenses, permits, approvals or authorizations, exemptions,
registrations, filings or declarations that have already been obtained and
remain in full force and effect.

                  (c) This Agreement has been executed and delivered by a duly
authorized officer of the Borrower and constitutes the legal, valid and binding
obligation of the Borrower, enforceable against it in accordance with its terms
except as enforceability may be limited by Bankruptcy Laws or other similar laws
affecting creditors' rights generally and except as enforceability may be
limited by general principles of equity.

         4.3. No Legal Bar to Loans. The execution, delivery and performance of
this Agreement, and the consummation of the transactions contemplated hereby,
will not violate any Contractual Obligation or material Requirement of Law to
which the Borrower or any of its Subsidiaries is a party, or by which the
Borrower or any of its Subsidiaries or any of their respective material
properties or assets may be bound, and will not result in the creation or
imposition of any lien on any of their respective material properties or assets
pursuant to the provisions of any such Contractual Obligation.

         SECTION 5. CONDITIONS PRECEDENT

         5.1. Conditions to Initial Loan. The obligation of the Lender to make
the initial Loan requested to be made by it shall be subject to the satisfaction
or waiver by the Lender of the following conditions precedent (the date on which
said conditions are satisfied or waived being herein called the "Effective
Date"):

                                       11
<PAGE>

                                                                    Exhibit 4.16

                  (a) Agreement. The Lender shall have received this Agreement,
executed and delivered by a duly authorized officer of the Borrower.

                  (b) Additional Matters. All corporate and other proceedings,
and all documents, instruments and other legal matters in connection with the
transactions contemplated by this Agreement shall be reasonably satisfactory in
form and substance to the Lender, and the conditions set forth in Section 5.2
hereof shall have been satisfied or waived by the Lender.

         5.2. Conditions to Each Loan. The obligation of the Lender to make any
Loan requested to be made on any Borrowing Date (including, without limitation,
the initial Loan) shall be subject to the satisfaction or waiver by the Lender
of the following conditions precedent:

                  (a) Credit Availability. The amount of the Loan requested to
be made on such Borrowing Date shall not exceed the amount that the Lender is
obligated to make in accordance with Section 2.1(a) hereof.

                  (b) Representations and Warranties. Each of the
representations and warranties made by the Borrower in or pursuant to this
Agreement shall be true and correct in all material respects on and as of such
Borrowing Date as if made on and as of such date, both before and after giving
effect to such Loan and the use of the proceeds thereof.

                  (c) No Event of Default. No Event of Default shall have
occurred and be continuing on such Borrowing Date, both before and after giving
effect to the Loan requested to be made on such date.

Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the Borrowing Date thereof that the conditions
contained in this Section 5.2 have been satisfied.

         SECTION 6. EVENTS OF DEFAULT

         6.1. Events of Default. An "Event of Default" occurs if:

                  (a) The Borrower shall fail to pay any principal of any Loan
when due in accordance with the terms hereof; or the Borrower shall fail to pay
any interest on any Loan, or any other amount payable hereunder, within three
days after any such interest or other amount becomes due in accordance with the
terms hereof; or

                  (b) Any representation or warranty made or deemed made by the
Borrower herein or in connection with this Agreement shall prove to have been
inaccurate in any material respect on or as of the date made or deemed made; or

                  (c) The Borrower or any of its Subsidiaries shall Cross
Default; or

                                       12
<PAGE>
                                                                    Exhibit 4.16

                  (d) (i) The Borrower or any of its Subsidiaries shall commence
any case, proceeding or other action (A) under the Bankruptcy Law or any
existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or the Borrower or any of its Subsidiaries shall
make a general assignment for the benefit of its creditors; or (ii) there shall
be commenced against the Borrower or any of its Subsidiaries any case,
proceeding or other action of a nature referred to in clause (i) above which (A)
results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of
60 days; or (iii) there shall be commenced against the Borrower or any of its
Subsidiaries any case, proceeding or other action seeking issuance of a warrant
of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of an order for any
such relief which shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) the Borrower or
any of its Subsidiaries shall take any action in furtherance of, or indicating
its consent to, approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or (v) the Borrower or any of its Subsidiaries
shall generally not, or shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due.

         The foregoing will constitute Events of Default whatever the reason for
any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body.

         If an Event of Default shall have occurred, (A) if such event is an
Event of Default specified in paragraph (d) of this Section 6.1 with respect to
the Borrower, automatically the Commitment shall immediately terminate and the
Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions may
be taken: (i) the Lender may by notice to the Borrower declare the Commitment to
be terminated forthwith, whereupon such Commitment shall immediately terminate;
and (ii) the Lender may by notice to the Borrower declare the Loans hereunder
(with accrued interest thereon) and all other amounts owing by the Borrower
under this Agreement to be due and payable forthwith, whereupon the same shall
immediately become due and payable. Except as expressly provided above in this
Section 6.1, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

         SECTION 7. SUBORDINATION

         7.1. General. The Borrower and the Lender agree that the payment of the
principal amount of Loans, together with accrued and unpaid interest thereon and
any

                                       13
<PAGE>
                                                                    Exhibit 4.16

other amount whatsoever from time to time owing hereunder by the Borrower, is
subordinated, to the extent and in the manner provided in this Section 7, to the
prior payment in full of all Senior Debt (as defined below).

         The terms and conditions of this Section 7 shall constitute a
continuing offer to all persons who, in reliance upon such provisions, become
holders of, or continue to hold, Senior Debt, and such provisions are made for
the benefit of the holders of Senior Debt, and such holders are made obligees
hereunder and any one or more of them may enforce such provisions.

         7.2. Senior Debt. For purposes hereof, "Senior Debt" shall mean all
Obligations (as defined below) of or owing by the Borrower or any of its
subsidiaries under the Bank Credit Agreement or the Indenture or any guaranty,
security agreement, note or other financing document referred to in or delivered
pursuant to or in connection with the Bank Credit Agreement or the Indenture, as
applicable, unless such document, instrument or agreement under which such
Obligation arises expressly provides that such Obligation is not senior or
superior in right of payment to amounts due in respect of this Agreement. For
purposes hereof, "Obligations" shall mean loans, advances, debts, liabilities,
obligations, covenants and duties of any kind or nature, present or future,
whether absolute or contingent, whether due or to become due, and shall include,
without limitation, all principal, interest (including interest which, but for
the filing of a petition in bankruptcy with respect to any obligor thereon,
would accrue on such obligation), fees, charges, expenses, attorneys fees and
expenses, indemnities and any other sum chargeable to or payable under the Bank
Credit Agreement or the Indenture or any guaranty, security agreement, note or
other financing document or referred to in or delivered pursuant to or in
connection with the Bank Credit Agreement or the Indenture.

         7.3. Bankruptcy, Insolvency and Liquidation, Etc.

                  (a) In the event of any distribution of assets to creditors in
any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection
therewith, relative to the Borrower or its creditors, as such, or to its assets,
or in the event of any voluntary or involuntary liquidation, dissolution or
other winding-up of the Borrower, whether or not involving insolvency or
bankruptcy or any assignment for the benefit of creditors or any other
marshalling of assets or liabilities of the Borrower, then and in any such event
all principal, premium, if any, and interest to the date of payment on, and all
other amounts due in respect of, all Senior Debt (including any post-petition
interest) shall first be paid in full in cash before any payment or distribution
of assets of any kind or character is made, whether in cash, property or
securities, on account of principal or interest or any other amount due in
respect of this Agreement, and any payment or distribution of any kind or
character, whether in cash or property or securities, which but for this Section
7.3 would be payable or deliverable in respect of this Agreement, shall be paid
or delivered directly to the holders of such Senior Debt for application in
payment thereof, unless and until all principal, premium and interest to the
date of payment on and all other amounts due in respect of all such Senior Debt
shall have been paid and satisfied in full in cash (including post-petition
interest); provided, however, that nothing contained in this

                                       14
<PAGE>
                                                                    Exhibit 4.16

paragraph (a) shall contravene any final order of a court of competent
jurisdiction in a reorganization proceeding to the extent that such order
expressly considers the subordination provisions contained in this paragraph (a)
and determines the relative rights of the Lender and the holders of Senior Debt
with respect to the payment or delivery of cash, securities or other property of
the Borrower.

                  (b) In the event that the Lender shall have received any
payment or distribution of any assets of any kind or character, whether in cash
or property or securities, prohibited by the provisions of this Section 7, then
and in any such event, such payment or distribution shall be paid over or
delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other person making payment or distribution of
assets for application to the payment in full in cash of all Senior Debt
remaining unpaid to the extent necessary to pay all Senior Debt in full.

                  (c) Upon the maturity of any Senior Debt by lapse of time,
acceleration or otherwise, all principal thereof and interest thereon then due,
and all other amounts then due in respect thereof, shall first be paid in full
in cash before any payment is made on account of principal of and interest on
Loans under, or any other amount due in respect of, this Agreement.

                  (d) In the event that any Loan shall become due and payable
before its expressed maturity for any reason (and the provisions of the
foregoing paragraph (a) or the following paragraph (e) of this Section 7.3 are
not applicable), the Lender shall not be entitled to, and the Borrower shall not
make, any such payment or prepayment of such Loan unless and until there shall
first have been paid in full, including interest to the date of payment, in
cash, all Senior Debt due and payable at such time (whether or not an event of
default has occurred under the Senior Debt or the maturity of such Senior Debt
has been declared due and payable prior to the date on which it otherwise would
have become due and payable) and the Lender agrees not to seek payment of the
Loans by any remedy allowed at law or at equity so long as any Senior Debt
remains due and payable.

                  (e) In the event that, notwithstanding the foregoing, the
Borrower shall make any payment to the Lender prohibited by the foregoing
provisions, then and in such event such payment shall be paid over and delivered
forthwith to the holders of Senior Debt to the extent necessary to pay the
amounts then due and payable (if any) on the Senior Debt.

         7.4. Senior Debt Default. In the event that any default shall occur and
be continuing with respect to any Senior Debt that permits (or with notice or
lapse of time or both, would permit) the holders of such Senior Debt to declare
such Senior Debt due and payable prior to the date on which it otherwise would
be due and payable, unless payment in full shall have first been made on all
principal of, premium, if any, and interest on, and all other amounts due and
payable in respect of the Senior Debt, the Borrower shall not make any payment
on or with respect to Loans under this Agreement during any period:

                                       15
<PAGE>
                                                                    Exhibit 4.16

                           (i)      in which a default exists with respect to
                                    the payment of any interest, premium or
                                    principal due on or with respect to any
                                    Senior Debt; or

                           (ii)     of 90 days after written notice shall have
                                    been given to the Borrower of any such
                                    default during which there has been no
                                    acceleration of the Senior Debt (a "Blocking
                                    Period"), provided that only one such
                                    Blocking Period shall occur pursuant to this
                                    Section 7 in any consecutive 12 months;

provided that upon the cure or waiver of the default or, in the case of clause
(ii) above, upon expiration of the Blocking Period, the Lender shall be entitled
to receive payment of all payments due under this Agreement which had been
suspended during such period if this Section 7 otherwise permits payment at that
time.

         In the event that, notwithstanding the foregoing, the Borrower shall
make any payment to the Lender under this Agreement prohibited by the foregoing
provisions, then and in such event such payment shall be paid over and delivered
forthwith to the applicable holders of Senior Debt, as provided in the Bank
Credit Agreement, the Indenture and the other Senior Debt documents, to the
extent necessary to pay the amounts then due and payable (if any) on the Senior
Debt.

         7.5. Senior Subordinated Notes. All amounts due in respect of this
Agreement shall rank pari passu in right of payment with the Senior Subordinated
Notes (as defined in the Bank Credit Agreement).

         SECTION 8. MISCELLANEOUS

         8.1. Amendments and Waivers. This Agreement shall not be amended,
supplemented or otherwise modified, except by written instrument which has been
duly executed and delivered by each party hereto. In the case of any waiver of
the terms hereof, the parties to this Agreement shall be restored to their
former positions and rights hereunder, and any Default or any Event of Default
waived shall, to the extent provided in such waiver, be deemed to be cured and
not continuing; but, no such waiver shall extend to any subsequent or other
Default or Event of Default, or impair any right consequent thereon.

         8.2. Notices. All notices, consents, requests and demands to or upon
the respective parties hereto to be effective shall be in writing and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or
made when delivered by hand, or three Business Days after being deposited in the
mail, certified mail, return receipt requested, postage prepaid, or, in the case
of telecopy or electronic mail notice, when sent and receipt has been confirmed,
addressed as follows (or to such other address as may be hereafter notified by
any of the respective parties hereto):

                                       16
<PAGE>
                                                                    Exhibit 4.16

         Borrower:          Panavision Inc.
                            6219 DeSoto Avenue
                            Woodland Hills, CA  91367
                            Attention:   Bobby Jenkins
                                         Executive Vice President and
                                         Chief Financial Officer
                            Telecopy:    (818) 316-1130
                            E-mail:      bobby_jenkins@panavision.com

         With a copy to:    Panavision Inc.
                            6219 DeSoto Avenue
                            Woodland Hills, CA  91367
                            Attention:   Eric Golden
                                         Executive Vice President
                                         and General Counsel
                            Telecopy:    (818) 316-1120
                            E-mail:      eric_golden@panavision.com

         Lender:            MacAndrews & Forbes Holdings Inc.
                            35 East 62nd Street
                            New York, New York 10021
                            Attention:   General Counsel
                            Telecopy:    (212) 572-5056
                            Email:       bschwartz@mafgrp.com

provided that any notice, request or demand to or upon the Lender pursuant to
Sections 2 and 3 shall not be effective until received.

         8.3. No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Lender, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. The rights, remedies, powers and privileges herein provided
are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

         8.4. Survival of Representations and Warranties. All representations
and warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the making of the Loans hereunder.

         8.5. Payment of Expenses; General Indemnity. The Borrower agrees (a) to
pay or reimburse the Lender for all of its reasonable out-of-pocket attorneys'
fees and expenses incurred in connection with the preparation, execution and
delivery of, and any amendment, supplement or modification to, this Agreement
and any other documents prepared in connection herewith, and the consummation of
the transactions contemplated hereby and thereby, (b) to pay or reimburse the
Lender for all its reasonable out-of-

                                       17
<PAGE>
                                                                    Exhibit 4.16

pocket costs and expenses (including, without limitation, reasonable attorneys'
fees and expenses) incurred in connection with the enforcement or preservation
of any rights under this Agreement and any such other documents, (c) to pay,
indemnify, and to hold the Lender harmless from, any and all recording and
filing fees and any and all liabilities with respect to, or resulting from any
delay caused by the Borrower in paying, stamp, excise and other similar taxes,
if any, if legal, which may be payable or determined to be payable in connection
with the execution and delivery of, or consummation of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement and any such other documents,
and (d) to pay, indemnify, and hold harmless the Lender from and against any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including, without limitation, reasonable attorneys' fees and
expenses) with respect to the execution, delivery, consummation, enforcement,
performance and administration of this Agreement and any such other documents
(all of the foregoing, collectively, the "indemnified liabilities"); provided
that the Borrower shall have no obligation hereunder with respect to indemnified
liabilities arising from (i) the gross negligence or willful misconduct of the
Lender, (ii) legal proceedings commenced against the Lender by any security
holder or creditor thereof arising out of and based upon rights afforded any
such security holder or creditor solely in its capacity as such or (iii) amounts
of the types referred to in clauses (a) through (c) above except as provided
therein. The agreements in this Section 8.5 shall survive the termination of the
Commitment and the repayment of the Loans and all other amounts payable
hereunder.

         8.6. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Borrower, the Lender and their respective successors
and permitted assigns and, except as set forth below, neither the Borrower nor
the Lender may assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of the other party. This Agreement,
or the Lender's obligations hereunder, may be assigned, delegated or
transferred, in whole or in part, by the Lender to any Affiliate of the Lender
over which the Lender or its Affiliates exercises investment authority,
including, without limitation, with respect to voting and dispositive rights
provided any such assignee assumes the obligations of the Lender hereunder and
agrees in writing to be bound by the terms of this Agreement in the same manner
as the Lender. Notwithstanding the foregoing, no such assignment shall relieve
the Lender of its obligations hereunder if such assignee fails to perform such
obligations. Without complying with the provisions of this Section 8.6, the
Lender may satisfy its obligations under Sections 2.1 or 2.2 hereof by causing
an Affiliate of the Lender to satisfy its obligations under such Sections.

         8.7. Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
facsimile transmission), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

                                       18
<PAGE>
                                                                    Exhibit 4.16

         8.8. Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         8.9. Integration. This Agreement represents the agreement of the
Borrower and the Lender with respect to the subject matter hereof, and there are
no promises, undertakings, representations or warranties by the Lender for the
benefit of the Borrower relative to the subject matter hereof not expressly set
forth or referred to herein.

         8.10. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

         8.11. Submission To Jurisdiction; Waivers. The Borrower hereby
irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
Courts of the State of New York, the courts of the United States of America for
the Southern District of New York, and appellate courts from any thereof;

                  (b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

                  (c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the
Borrower at its address set forth in Section 8.2 or at such other address of
which the Lender shall have been notified pursuant thereto;

                  (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this subsection any special, exemplary, punitive or consequential damages.

         8.12. WAIVERS OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE

                                       19
<PAGE>
                                                                    Exhibit 4.16

TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND
FOR ANY COUNTERCLAIM THEREIN.

                   Remainder of page intentionally left blank.

                                       20
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                                       PANAVISION INC.

                                       By: /s/ Eric W. Golden
                                           ------------------------------------
                                           Name:  Eric W. Golden
                                           Title: Executive Vice President &
                                                  General Counsel

                                       MACANDREWS & FORBES HOLDINGS INC.

                                       By: /s/ Todd J. Slotkin
                                           ------------------------------------
                                           Name:  Todd J. Slotkin
                                           Title: Executive Vice President &
                                                  Chief Financial officer

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