Document:

EXHIBIT 10.5

                                                                  EXECUTION COPY

                         RECEIVABLES PURCHASE AGREEMENT

                          Dated as of February 28, 2003

                                      among

                              KELSEY-HAYES COMPANY
                             TRW AUTOMOTIVE U.S. LLC
                         TRW VEHICLE SAFETY SYSTEMS INC.
                   LAKE CENTER INDUSTRIES TRANSPORTATION, INC.

                                   as Sellers
                                   ----------

                             TRW AUTOMOTIVE U.S. LLC

                                 as Seller Agent
                                 ---------------

                                       and

                         TRW AUTOMOTIVE RECEIVABLES LLC

                                    as Buyer
                                    --------

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I.     DEFINITIONS....................................................1

     SECTION 1.01.  Certain Defined Terms, Incorporation of
                    Definitions from Receivables Loan Agreement...............1
     SECTION 1.02.  Other Terms...............................................6

ARTICLE II.    AMOUNTS AND TERMS OF PURCHASES.................................6

     SECTION 2.01.  Agreement to Purchase.....................................6
     SECTION 2.02.  Payment for the Purchases.................................7
     SECTION 2.03.  Purchase Price Credit Adjustments.........................9
     SECTION 2.04.  Payments and Computations, Etc............................9
     SECTION 2.05.  Transfer of Records......................................11
     SECTION 2.06.  Characterization.........................................12
     SECTION 2.07.  No Repurchase............................................12
     SECTION 2.08.  Intercompany Note........................................12
     SECTION 2.09.  Certain Allocations......................................13

ARTICLE III.   CONDITIONS OF PURCHASES.......................................13

     SECTION 3.01.  Conditions Precedent to Initial Purchase from
                    the Sellers..............................................13
     SECTION 3.02.  Conditions Precedent to All Purchases....................14
     SECTION 3.03.  Condition Precedent to each Seller's Obligations.........14
     SECTION 3.04.  Conditions Precedent to the Addition of an
                    Additional Seller........................................15

ARTICLE IV.    REPRESENTATIONS AND WARRANTIES................................18

     SECTION 4.01.  Representations and Warranties of the Sellers............18
     SECTION 4.02.  Representations and Warranties of the Buyer. The
                    Buyer represents and warrants as follows:................22

ARTICLE V.     COVENANTS.....................................................23

     SECTION 5.01.  Covenants of the Sellers.................................23

ARTICLE VI.    ADMINISTRATION AND COLLECTION.................................27

     SECTION 6.01.  Designation of Collection Agent..........................27
     SECTION 6.02.  Certain Rights of the Buyer..............................27
     SECTION 6.03.  Rights and Remedies......................................28

ARTICLE VII.   EVENTS OF TERMINATION.........................................28

     SECTION 7.01.  Events of Termination....................................28

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ARTICLE VIII.  INDEMNIFICATION...............................................30

     SECTION 8.01.  Indemnities by the Sellers...............................30

ARTICLE IX.    MISCELLANEOUS.................................................31

     SECTION 9.01.  Amendments, Etc..........................................31
     SECTION 9.02.  Notices, Etc.............................................32
     SECTION 9.03.  Binding Effect; Assignability............................32
     SECTION 9.04.  Costs, Expenses and Taxes................................33
     SECTION 9.05.  No Proceedings...........................................33
     SECTION 9.06.  GOVERNING LAW............................................33
     SECTION 9.07.  Third Party Beneficiary..................................33
     SECTION 9.08.  Restriction on Payments; Waiver of Setoff................34
     SECTION 9.09.  Execution in Counterparts................................34
     SECTION 9.10.  Integration; Survival of Termination.....................34
     SECTION 9.11.  Consent to Jurisdiction..................................35
     SECTION 9.12.  WAIVER OF JURY TRIAL.....................................35
     SECTION 9.13.  Additional Sellers.......................................35
     SECTION 9.14.  Termination of Sellers...................................35

EXHIBITS AND SCHEDULES

SCHEDULE I       Notice Addresses
SCHEDULE II      Litigation Disclosure
SCHEDULE III     Taxes
EXHIBIT A        Lock-Box Banks and Concentration Account Bank
EXHIBIT B        Form of Intercompany Note
EXHIBIT C        Trade Names and Former Names; Taxpayer Identification Number
                 and Organizational Identification Number
EXHIBIT D        Additional Seller Supplement

                                       ii

                         RECEIVABLES PURCHASE AGREEMENT

                          Dated as of February 28, 2003

     KELSLEY-HAYES COMPANY, a Delaware corporation, TRW AUTOMOTIVE U.S. LLC, a
Delaware limited liability company, TRW VEHICLE SAFETY SYSTEMS INC., a Delaware
corporation, and LAKE CENTER INDUSTRIES TRANSPORTATION, INC., a Minnesota
corporation (each a "Seller" and, collectively, together with any Additional
Seller added as a party hereto after the date hereof, the "Sellers"), TRW
AUTOMOTIVE U.S. LLC, a Delaware corporation, as Seller Agent, and TRW AUTOMOTIVE
RECEIVABLES LLC, a Delaware limited liability company (the "Buyer"), agree as
follows:

     PRELIMINARY STATEMENTS.

     (1) The Sellers intend to sell irrevocably all of their respective right,
title and interest in, to and under the Receivables and the Receivables Property
now existing or hereafter created to the Buyer on the terms and subject to the
conditions set forth in this Agreement;

     (2) The Buyer desires to purchase irrevocably all of the Sellers' right,
title and interest in, to and under the Receivables and the Receivables Property
now existing or hereafter created from the Sellers on the terms and subject to
the conditions set forth in this Agreement;

     (3) The Sellers and the Buyer intend that the transfer of the Receivables
and the Receivables Property from the Sellers to the Buyer be a true sale (and
not a secured financing) providing the Buyer with the full benefits of ownership
of the Receivables and the Receivables Property;

     (4) To obtain the necessary funds to purchase the Receivables and
Receivables Property, the Buyer has entered into the Transfer Agreement,
pursuant to which it will sell the Receivables and Receivables Property to the
Borrower; and

     (5) TRW U.S. has been appointed to act as the Collection Agent in respect
of the Purchased Receivables, and each Seller has been appointed to act as
Sub-Collection Agent in respect of the Purchased Receivables originated by such
Seller, in each case pursuant to the Servicing Agreement.

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties agree as follows:

                             ARTICLE I. DEFINITIONS

     SECTION 1.01. Certain Defined Terms, Incorporation of Definitions from
Receivables Loan Agreement. Capitalized terms used and not otherwise defined
herein have the meanings specified in the Receivables Loan Agreement (as defined
below). The following terms shall have the following meanings (such meanings to
be equally applicable to both the singular and plural forms of the terms
defined):

     "Additional Seller" means any Subsidiary of TRW Automotive which becomes a
party hereto in accordance with Sections 3.04 and 9.13.

     "Additional Seller Supplement" means an instrument substantially in the
form of Exhibit D pursuant to which a Subsidiary of TRW Automotive becomes a
Seller party hereto.

     "Agreement" means this Receivables Purchase Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

     "Aggregate Purchase Price" has the meaning specified in Section 2.04(c).

     "Borrower" means TRW Automotive Global Receivables LLC, a Delaware limited
liability company, and any successor thereto.

     "Buyer Material Adverse Effect" means a material adverse effect on (i) the
ability of the Buyer to perform its obligations under any Transaction Document,
(ii) the legality, validity or enforceability of this Agreement or any other
Transaction Document against the Buyer, (iii) the Buyer's interest in the
Receivables generally or in any material portion of the Receivables, the Related
Security or the Collections with respect thereto, (iv) the collectibility of the
Receivables generally or of any material portion of the Receivables or (v) the
business, operations, properties, assets or financial condition of the Buyer.

     "Cash Payments" has the meaning specified in Section 2.04(c).

     "Closing Date" means February 28, 2003 or, if later, the first date on
which the conditions precedent set forth in Section 3.01 are satisfied.

     "Collection Agent" means TRW U.S. in its capacity as collection agent under
the Servicing Agreement, and any successor thereto in such capacity.

     "Collections" means, collectively, all cash collections and other cash
Proceeds of the Receivables, including, without limitation, all cash Proceeds of
Related Security with respect to any such Receivable.

     "Contract" means an agreement (including, without limitation, an agreement
evidenced by a purchase order, invoice or similar document), pursuant to or
under which an Obligor shall be obligated to pay for goods or merchandise
purchased from a Seller or services rendered by a Seller.

     "Cut-Off Date" means February 21, 2003.

     "Discount" means, in respect of each Purchase, the Discount Percentage
multiplied by the Outstanding Balance of the Receivables that are the subject of
such Purchase.

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     "Discount Percentage" means, on any date (except as provided in the next
paragraph), the percentage obtained from the following formula:

                             (LR + ACRP + ASFP + AP)

     all determined by the Collection Agent as of the most recent Monthly
Reporting Date,

Where

LR=          the product of (i) 1.1 and (ii) the average Loss-to-Liquidation
             Ratio for the three Calculation Periods immediately prior to such
             Monthly Reporting Date.

ACRP =       the "Adjusted Carrying Cost Reserve Percentage", defined as the
             ratio (expressed as a percentage) obtained by dividing (a) the
             product of (i) the average of the Days Sales Outstanding for such
             Monthly Reporting Date and the two immediately preceding Monthly
             Reporting Dates (the "Average DSO") and (ii) the Base Rate as of
             such Monthly Reporting Date by (b) 365.

ASFP =       the "Adjusted Servicing Fee Percentage", defined as the ratio
             (expressed as a percentage) obtained by dividing (a) the product
             of the Average DSO times the Servicing Fee Percentage, by (b) 360.

AP=          the "Additional Percentage," defined as 1.00%.

None of the elements of the above-referenced formula, in respect of any purchase
of Receivables, will be adjusted following the related Purchase Date.

     For the initial period from and including the Closing Date to but excluding
the first Monthly Reporting Date, the Discount Percentage will be 1.819%.

     With respect to each calculation set forth above with respect to a Monthly
Reporting Date, such calculation as calculated on such Monthly Reporting Date
and included in the applicable Monthly Report shall remain in effect from and
including the related Monthly Reporting Date to but excluding the following
Monthly Reporting Date.

     "Effective Date" means, with respect to (i) each Seller that is a party
hereto as of the date hereof, the Closing Date and (ii) each Additional Seller,
the Seller Addition Date with respect to such Seller.

     "Excluded Obligor" means any Obligor designated as such by the Seller Agent
with the prior written consent of the Buyer and the Required Committed Lenders.

     "Incipient Termination Event" means an event that but for notice or lapse
of time or both would constitute a Termination Event.

     "Indemnified Amounts" has the meaning specified in Section 8.01.

                                       3

     "Indemnified Parties" has the meaning specified in Section 8.01.

     "Intercompany Note" has the meaning specified in Section 2.08(a).

     "Loss-to-Liquidation Ratio" means the ratio (expressed as a percentage)
computed as of each Monthly Reporting Date for the immediately preceding
Calculation Period by dividing (i) the sum (without duplication) of (A) the
aggregate Outstanding Balance of all Receivables written off by any Collection
Agent Party in accordance with the Credit and Collection Policy during such
Calculation Period plus (B) the aggregate Outstanding Balance of all Receivables
with respect to which an Event of Bankruptcy has occurred for the relevant
Obligor during such Calculation Period by (ii) the aggregate amount of
Collections of Receivables actually received during such Calculation Period.

     "Modified Aggregate Purchase Price" has the meaning specified in Section
2.04(c).

     "Non-Payment Event" has the meaning specified in Section 2.01(b).

     "Obligor" means a Person obligated to make payments pursuant to a Contract.

     "Person" means an individual, partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or
any political subdivision or agency thereof.

     "Purchase" means a purchase by the Buyer of Receivables from a Seller
pursuant to Article II.

     "Purchase Date" means each day on which a Purchase is made pursuant to
Article II.

     "Purchased Receivable" means any Receivable which is purchased by the Buyer
pursuant to Article II.

     "Purchase Price" for any Purchase pursuant to Article II means an amount
equal (a) to the Outstanding Balance of the Receivables that are the subject of
such Purchase, minus (b) the Discount for such Purchase.

     "Purchase Price Credit" has the meaning specified in Section 2.03.

     "Purchase Settlement Period" has the meaning specified in Section 2.04(c).

     "Receivable" means the indebtedness and other obligations of any Obligor
(other than an Excluded Obligor) resulting from the provision or sale of
merchandise, goods or services by a Seller, including, without limitation, the
right to payment of any interest or finance charges, late payment charges,
delinquency charges, extension or collection fees and all other obligations of
such Obligor with respect thereto.

                                       4

     "Receivables Loan Agreement" means that certain Receivables Loan Agreement,
dated as of February 27, 2003, among the Borrower, the entities parties thereto
from time to time as conduit lenders, committed lenders and funding agents and
JPMorgan Chase Bank, as administrative agent, as amended, restated or otherwise
modified from time to time.

     "Receivables Property" has the meaning specified in Section 2.01(a).

     "Records" has the meaning specified in Section 2.05(a).

     "Related Security" means with respect to any Receivable:

         (i) all security interests or liens and property subject thereto from
     time to time purporting to secure payment of such Receivable, whether
     pursuant to the Contract related to such Receivable or otherwise, together
     with all financing statements authorized by an Obligor describing any
     collateral securing such Receivable;

         (ii) all guaranties, insurance and other agreements or arrangements of
     whatever character from time to time supporting or securing payment of such
     Receivable whether pursuant to the Contract related to such Receivable or
     otherwise;

         (iii) all other Records relating to such Receivable and the related
     Obligor;

         (iv) all of the applicable Seller's right, title and interest in and to
     all Contracts or other agreements or documents to the extent that they
     evidence, secure or otherwise relate to such Receivable; and

         (v) all Proceeds of the foregoing.

     "Seller Addition Date" has the meaning specified in Section 3.04.

     "Seller Agent" means TRW U.S., in its capacity as agent for the Sellers
hereunder.

     "Settlement Date" means (i) the third Business Day of each calendar week
and (ii) following the occurrence of the Termination Date for all Sellers, each
other "Settlement Date" under and as defined in the Receivables Loan Agreement.

     "Termination Date" means, with respect to any Seller, the earliest of (i)
the "Termination Date" under and as defined in the Receivables Loan Agreement,
(ii) the date on which the Termination Date is declared or automatically occurs
with respect to such Seller pursuant to Section 7.01 and (iii) the date
specified by such Seller pursuant to Section 2.04(c)(ii) or Section 9.14 on
which such Seller shall cease to sell Receivables to the Buyer hereunder.

                                        5

     "Termination Event" has the meaning specified in Section 7.01.

     "Transfer Agreement" means that certain Transfer Agreement dated as of
February 28, 2003 between the Buyer and the Borrower, as amended, restated,
supplemented or otherwise modified from time to time.

     "TRW Automotive" means TRW Automotive Acquisition Corp., a Delaware
corporation, and any successor thereto.

     "TRW U.S." means TRW Automotive U.S. LLC, a Delaware limited liability
company, and any successor hereto.

     SECTION 1.02. Other Terms. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP. All terms used in Article 9
of the UCC in the State of New York, as in effect on the date hereof and not
specifically defined herein, are used herein as defined in such Article 9.
Unless otherwise expressly indicated, all references herein to "Article,"
"Section," "Schedule" or "Exhibit" means articles and sections of, and schedules
and exhibits to, this Agreement. Headings are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision
hereof.

                   ARTICLE II. AMOUNTS AND TERMS OF PURCHASES

     SECTION 2.01. Agreement to Purchase. (a) Upon the terms and subject to the
conditions hereof, each Seller hereby sells, assigns, transfers and conveys to
the Buyer, without recourse (except to the limited extent provided herein), all
its respective present and future right, title and interest in, to and under:

         (i) all Receivables existing on the Effective Date with respect to such
     Seller and thereafter arising from time to time until the Termination Date
     with respect to such Seller;

         (ii) all Collections with respect thereto; and

         (iii) all Related Security with respect thereto

(the property described in the foregoing clauses (ii) and (iii) are hereinafter
collectively referred to as the "Receivables Property"). Subject to the terms
and conditions set forth herein, the Buyer hereby agrees to purchase the
Receivables and Receivables Property of each Seller from time to time until the
Termination Date with respect to such Seller.

     (b) On the Effective Date for each Seller and on the date of creation of
each newly arising Receivable, all of such Seller's right, title and interest
in, to and under (i) in the case of the Effective Date, all then existing
Receivables and all Receivables Property with respect thereto and (ii) in the
case of each such date of creation (but only so long as the Termination Date has
not occurred with respect to such Seller), all such newly created Receivables
and all Receivables Property with respect thereto shall be immediately and
automatically sold, assigned, transferred and conveyed to the Buyer pursuant to
paragraph (a) above without any further action by such Seller or any other
Person. If any Seller shall not have

                                       6

received payment from the Buyer of the Purchase Price for any Purchased
Receivable and the related Receivables Property on the Purchase Date therefor in
accordance with the terms of and by the time specified in Section 2.02(e) (a
"Non-Payment Event"), whether or not the conditions set forth in Article III
have been fulfilled, such Purchased Receivable and the Receivables Property with
respect thereto shall, upon receipt of notice from such Seller of such failure
to receive payment (which notice shall be provided only on the applicable
Purchase Date and may not be delivered at any time thereafter), immediately and
automatically be sold, assigned, transferred and reconveyed by the Buyer to such
Seller without any further action by the Buyer or any other Person.

     (c) It is the intention of the parties hereto that each Purchase of
Receivables made hereunder shall be treated as a purchase by the Buyer and a
sale by the applicable Seller of such Receivables and the Receivables Property
with respect thereto, which sales are absolute and irrevocable and provide the
Buyer with the full benefits of ownership of the Receivables. Each sale of
Receivables hereunder is made without recourse to the applicable Seller;
provided, however, that (i) each Seller shall be liable to the Buyer for all
representations, warranties, covenants and indemnities made by such Seller
pursuant to the terms of this Agreement, and (ii) such sale does not constitute
and is not intended to result in an assumption by the Buyer or any assignee
thereof of any obligation of any Seller or any other Person arising in
connection with the Receivables or Receivables Property or any other obligations
of any Seller.

     (d) In connection with the foregoing sale, each Seller hereby authorizes
Buyer and its assigns to record and file from time to time, at such Seller's
expense, a financing statement or statements with respect to (i) the Receivables
sold or to be sold by such Seller hereunder and (ii) the Receivables Property
with respect thereto, in each case meeting the requirements of applicable state
law in such manner and in such jurisdictions as are necessary to perfect and
protect the interests of the Buyer created hereby under the UCC against all
creditors of such Seller. In addition, each Seller agrees that from time to
time, at its expense, it will promptly, upon request, execute and deliver all
further instruments and documents, and take all further actions that the Buyer,
the Borrower or the Administrative Agent may reasonably request, in order to
perfect, protect or more fully evidence the purchase by the Buyer of the
Receivables and the Receivables Property with respect thereto, an interest in
which may be perfected by filing a financing statement under the UCC. In view of
the intention of the parties hereto that the Purchases of Receivables made
hereunder shall constitute sales of such Receivables rather than a loan secured
by such Receivables, each Seller agrees, at its own expense, on or prior to the
relevant Effective Date, to (i) indicate clearly and unambiguously in its
computer files that all Receivables and all Receivables Property with respect
thereto have been or will be conveyed to the Buyer pursuant to this Agreement
and (ii) note in its accounting records that the Receivables have been sold to
the Buyer.

     SECTION 2.02. Payment for the Purchases. (a) The Purchase Price for each
Purchase from a Seller shall be payable in full by the Buyer to such Seller or
its designee on each Purchase Date and shall be paid to such Seller in the
manner provided in this Article II; provided that for purposes of the Purchase
Date occurring on the initial Effective Date, the Purchase Price for the
Receivables and the Receivables Property existing on the Effective Date shall be
based on the Receivables of each Seller existing as of the Cut-Off Date (the
"Initial Effective Date Purchase Price"). On the first Settlement Date occurring
after the Effective Date (the "Initial

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Settlement Date"), each Seller shall determine the Purchase Price for the
Receivables and Receivables Property existing on the Effective Date based on the
Receivables existing on the Effective Date (the "Actual Effective Date Purchase
Price"). If the Initial Effective Date Purchase Price paid by the Buyer on the
Effective Date is greater than the Actual Effective Date Purchase Price with
respect to any Seller, such Seller shall pay to the Buyer an amount equal to
such excess on the Initial Settlement Date. If the Initial Effective Date
Purchase Price paid by the Buyer on the Effective Date is less than the Actual
Effective Date Purchase Price with respect to any Seller, the Buyer shall pay to
such Seller an amount equal to such difference on the Initial Settlement Date by
increasing the outstanding principal amount of the Intercompany Note for the
account of such Seller in the amount of the difference.

     (b) Upon the fulfillment of the conditions set forth in Article III, the
Purchase Price for Receivables shall be paid or provided for (without
duplication) by the Buyer in the manner provided in Section 2.02(c) below on the
date of the initial Purchase from the applicable Seller and on each Purchase
Date thereafter until the Termination Date with respect to such Seller.

     (c) The Purchase Price for Receivables shall be paid by the Buyer on each
Purchase Date (including the initial Purchase Date) as follows:

         (i) by netting the amount of any Purchase Price Credits pursuant to
     Section 2.03 against such Purchase Price;

         (ii) to the extent available for such purpose (as determined by the
     Buyer), in cash; and

         (iii) by means of an addition to the principal amount of the
     Intercompany Note in an aggregate amount up to the remaining portion of the
     Purchase Price. Any such addition to the principal amount of the
     Intercompany Note shall be allocated among the Sellers (pro rata according
     to the aggregate Outstanding Balances of the Receivables sold by each
     Seller) by the Seller Agent in accordance with the provisions of this
     Section 2.02(c)(v) and Section 2.08. The Seller Agent may evidence such
     additional principal amounts by recording the date and amount thereof on
     the grid attached to the Intercompany Note; provided, however, that the
     failure to make any such recordation or any error in such grid shall not
     adversely affect any Seller's rights.

     (d) The Seller Agent shall be responsible, in accordance with Section
2.02(a), for allocating among the Sellers the payment of the Purchase Price for
Receivables and any amounts netted therefrom pursuant to Section 2.02(c)(i) or
credited to the Seller Agent pursuant to Section 2.02(c)(ii) or in the form of
cash to be paid pursuant to Sections 2.02(c)(ii) or in the form of an addition
to the principal amount of the Intercompany Note pursuant to Section
2.02(c)(iii). All amounts payable by the Buyer in respect of the Purchase Price
of Receivables shall be paid by the Buyer to an account of the Seller Agent for
allocation by the Seller Agent to the respective Sellers (ratably in accordance
with the portion of such Purchase Price owing to each). Each of the Sellers
hereby appoints the Seller Agent as its agent for purposes of receiving such
payments, making such allocations and taking any other actions hereunder on its
behalf and hereby authorizes the Buyer to make all payments due to such Seller
directly to, or as directed

                                       8

by, the Seller Agent. The Seller Agent hereby accepts and agrees to such
appointment. Any such payment by the Buyer to or at the direction of the Seller
Agent shall constitute a full and complete discharge of the Buyer's liability
for the amounts so paid, whether or not the proceeds of such payment are
properly distributed by the Seller Agent to the applicable Seller for whose
account such payment was made.

     (e) Prior to the date on which the Collection Agent must prepare and
deliver any Portfolio Report pursuant to the Servicing Agreement, each Seller
and the Buyer will make available to the Collection Agent all information
necessary for the preparation of such Portfolio Report including, without
limitation, (i) information regarding all Purchases and Purchase Price Credits
occurring during the fiscal month (or week or day, as applicable) to be covered
in such Portfolio Report, (ii) the aggregate original Outstanding Balance of the
Receivables sold by such Seller during such fiscal month (or week or day, if
applicable), the aggregate Purchase Price for such Receivables sold by such
Seller and the components of payment as provided in Section 2.02(c) above and in
connection therewith, the Buyer and such Seller shall, after giving effect to
the application of payments provided in Sections 2.02(c) and 2.04(b) in respect
of such fiscal month (or week or day, if applicable) reconcile the amounts owed
to each other in respect of that period as provided in Section 2.04(c).

     SECTION 2.03. Purchase Price Credit Adjustments.

     If on any day (i) any Receivable originated by a Seller becomes a Diluted
Receivable, or (ii) any of the representations or warranties in Sections
4.01(i), (p), (v) or (w) of this Agreement is not true with respect to any
Purchased Receivable or the Buyer's interest therein, then, in such event, the
Buyer shall be entitled to a credit (a "Purchase Price Credit") against the
Purchase Price otherwise payable to such Seller hereunder in respect of
thereafter created Purchased Receivables equal to the full amount of such
Dilution Adjustment (in the case of clause (i) above) or equal to the
Outstanding Balance of the applicable Purchased Receivable (in the case of
clause (ii) above); provided that no Purchase Price Credit shall be granted or
paid by a Seller in the case of clause (ii) above unless requested by the Buyer
(which request must be made within six (6) months following the date the Buyer
receives notice of such breach from the applicable Seller). If the aggregate
Purchase Price Credits in respect of any Seller exceeds the Purchase Price in
respect of the Receivables of such Seller payable on any Purchase Date, or if
the Termination Date has occurred, then such Seller agrees to pay the remaining
amount of such Purchase Price Credit to the Buyer in cash on or prior to the
first Settlement Date (or the Termination Date, if earlier) to occur after the
date on which such Purchase Price Credit arises. Simultaneously with the
granting or payment of any Purchase Price Credit by any Seller in respect of a
Purchased Receivable under clause (ii) above, such Purchased Receivable and the
Receivables Property with respect thereto shall immediately and automatically be
sold, assigned, transferred and reconveyed (without recourse) by the Buyer to
such Seller without any further action by the Buyer or any other Person.

     SECTION 2.04. Payments and Computations, Etc. (a) All amounts to be paid or
deposited by the Buyer hereunder shall be paid or deposited in accordance with
the terms hereof by no later than 11:00 A.M. (New York time) on the day when due
in immediately available funds to the account of the Seller Agent designated
from time to time by the Seller Agent or as otherwise directed by the Seller
Agent. All amounts to be paid or deposited by any

                                       9

Seller hereunder shall be paid or deposited in accordance with the terms hereof
by no later than 11:00 A.M. (New York time) on the day when due in immediately
available funds to the account of the Buyer designated from time to time by the
Buyer or as otherwise directed by the Buyer. All payments hereunder shall be
made solely in Dollars unless otherwise specified herein. In the event that any
payment owed by any Person hereunder becomes due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day and
such extension of time shall be included in the computation of such payment.
Each Seller shall, to the extent permitted by law, pay interest on any amount
not paid or deposited by such Seller when due, at an interest rate equal to 2.0%
per annum above the Base Rate, payable on demand. The Buyer shall, to the extent
permitted by law, pay interest on any amount not paid or deposited by the Buyer
when due hereunder at an interest rate equal to 2.0% per annum above the Base
Rate, payable on demand provided, however, that any payments to be made by the
Buyer in respect of the foregoing shall be made solely from funds available to
the Buyer which are not otherwise required to be applied or set-aside for the
payment of any obligations of the Buyer under the Transfer Agreement, shall be
non-recourse other than with respect to such funds and shall not constitute a
claim against the Buyer to the extent that insufficient funds exist to make such
payment. All computations of interest payable hereunder shall be made on the
basis of a year of 365 (or 366, as applicable) days for the actual number of
days (including the first but excluding the last day) elapsed.

     (b) Each Seller hereby agrees that the Seller Agent, shall be authorized to
receive amounts from the Buyer on behalf of the Sellers hereunder. All amounts
so received shall be applied in the following order of payment during each
calendar week and prior to the first Settlement Date (or Termination Date, if
earlier) to occur after such week:

         (x) first, to pay any amounts payable pursuant to 2.02(c)(ii);

         (y) second, to make payments of interest on, and then principal of the
     Intercompany Note in accordance with Section 2.07 and the Intercompany
     Note; and

         (z) third, in such manner as the Buyer may specify.

     (c) On each Settlement Date, and promptly after the occurrence of the
Termination Date:

         (i) the Seller Agent shall determine the aggregate Purchase Price (the
     "Aggregate Purchase Price") for all Receivables and Receivables Property
     conveyed by the Sellers to the Buyer during the preceding calendar week or,
     in the case of the Termination Date, during the period from the end of the
     preceding calendar week to the Termination Date (each such period, a
     "Purchase Settlement Period"); provided, that the final Purchase Settlement
     Period shall commence on the day following the most recently ended Purchase
     Settlement Period and shall end on the Termination Date;

         (ii) if on any Settlement Date (or the Termination Date), the Aggregate
     Purchase Price for the related Purchase Settlement Period minus the
     aggregate amount of Purchase Price Credits for such Purchase Settlement
     Period (such difference, the "Modified Aggregate Purchase Price") exceeds
     the amount of Collections and other cash

                                       10

     payments received by the Seller Agent on behalf of the Sellers as provided
     herein for such Purchase Settlement Period (such amount, the "Cash
     Payments"), the Seller Agent shall, subject to the terms of this Agreement
     and to the extent it has not already done so, record the increase in the
     principal amount outstanding under the Intercompany Note up to the amount
     of such excess, and if any excess remains after giving effect to the
     increase in the principal amount of the Intercompany Note, the Sellers may
     declare the Termination Date to have occurred with respect to all Sellers
     by delivering notice to that effect to the Buyer, the Borrower and the
     Administrative Agent;

         (iii) if on any Settlement Date (or the Termination Date), the Cash
     Payments for the related Purchase Settlement Period exceed the Modified
     Aggregate Purchase Price for such Purchase Settlement Period, the Seller
     Agent shall, subject to the terms of this Agreement, record the application
     of that excess, (x) first, to the payment of unpaid and accrued interest on
     the Intercompany Note, as applicable, (y) second, as a reduction in the
     principal amount of the Intercompany Note, as applicable, and, (z) third,
     in such other manner as the Buyer may specify.

     SECTION 2.05. Transfer of Records. (a) In connection with the Purchases of
Receivables hereunder, each Seller hereby sells, transfers, assigns and
otherwise conveys to the Buyer all of such Seller's right and title to and
interest in all documents, books, records and other information (including,
without limitation, computer programs, tapes, disks, punch cards, data
processing software and related property and rights) relating to the Receivables
(collectively, the "Records"), without the need for any further documentation in
connection with any Purchase hereunder. In connection with such transfer, each
Seller hereby grants to each of the Buyer and the Collection Agent an
irrevocable, non-exclusive license (subject to the restrictions contained in any
license with respect thereto) to use, without royalty or payment of any kind,
all computer software and programs used by such Seller to account for the
Receivables, to the extent necessary or desirable to administer or service the
Receivables, whether such software and programs are owned by such Seller or are
owned by others and used by such Seller under license agreements with respect
thereto; provided, that should the consent of any licensor of such Seller to
such grant of the license described herein be required, such Seller hereby
agrees that upon the request of the Buyer or the Collection Agent to use its
best efforts to obtain the consent of such third-party licensor. The license
granted hereby shall be irrevocable, and shall not terminate until the Final
Payout Date. To the extent that direct on-line access by the Buyer or the
Collection Agent to the computer programs and software subject to license
agreements would require additional payments for access thereto by the Buyer or
the Collection Agent or is prohibited by such license agreements and TRW U.S. is
no longer the Collection Agent, such Seller hereby agrees to download, prepare
and distribute, promptly and effectively, all data relating to the Receivables
in usable form as reasonably requested by the Buyer and/or the Collection Agent
from time to time. If any Seller fails to produce such data in a prompt and
effective manner, the Buyer and the Collection Agent may have access to programs
and software to create such records, then such Seller shall incur and pay such
additional license costs and expenses with respect to the granting of such
access. In recognition of needs of the Sellers to have access to the Records
which have been transferred to the Buyer hereunder, whether as a result of its
continuing business relationship with any Obligor for Purchased Receivables or
as a result of its responsibilities as a Collection Agent or Sub-Collection
Agent, the Buyer hereby grants to each Seller an irrevocable license to access
the Records transferred by

                                       11

such Seller to the Buyer and to access any such transferred computer software
and programs in connection with any activity arising in the ordinary course of
such Seller's business or in performance of such Seller's duties as a Collection
Agent or Sub-Collection Agent, provided, however, that none of the Sellers shall
disrupt or otherwise interfere with the Buyer's or the Collection Agent's use of
and access to the Records and its computer software and programs during such
license period.

     (b) Each Seller shall take such action requested by the Buyer and/or any of
the Buyer's assignees, from time to time hereafter, that may be necessary to
ensure that the Buyer and its assigns have an enforceable ownership interest in
the Records relating to the Purchased Receivables purchased from such Seller
hereunder.

     SECTION 2.06. Characterization; Grant of Security Interest. If,
notwithstanding the intention of the parties expressed in Section 2.01(c), the
conveyance by any Seller to the Buyer of Receivables hereunder shall be
characterized as a secured loan and not a sale, this Agreement shall constitute
a security agreement under applicable law. For this purpose, each Seller hereby
grants to the Buyer a security interest in all of such Seller's right, title and
interest in, to and under all Receivables and the Receivables Property with
respect thereto, which security interest shall secure all obligations of such
Seller hereunder. After any Termination Event, the Buyer and its assignees shall
have, in addition to the rights and remedies which they may have under this
Agreement, all other rights and remedies against the Sellers provided to a
secured creditor after default under the UCC and other applicable Law, which
rights and remedies shall be cumulative.

     SECTION 2.07. No Repurchase. Except to the extent expressly set forth
herein, no Seller shall have any right or obligation under this Agreement, by
implication or otherwise, to repurchase from the Buyer any Purchased Receivables
or to rescind or otherwise retroactively affect any Purchase of any Purchased
Receivable after it is sold to the Buyer hereunder.

     SECTION 2.08. Intercompany Note. (a) On the date of the initial Purchase,
the Buyer shall issue to the Seller Agent, for the account of the Sellers as
their respective interests may appear, a note substantially in the form of
Exhibit B (as amended, supplemented or otherwise modified from time to time, the
"Intercompany Note"). The aggregate principal amount of the Intercompany Note at
any time shall be equal to the difference between (a) the aggregate principal
amount on the issuance thereof and each addition to the principal amount of the
Intercompany Note with respect to each Seller pursuant to the terms of Section
2.02(c)(iii) and Section 2.04 as of such time, minus (b) the aggregate amount of
all payments made in respect of the principal of the Intercompany Note as of
such time. All payments made in respect of the Intercompany Note shall be
allocated, first, to pay accrued and unpaid interest thereon, and second, to pay
the outstanding principal amount thereof. Interest on the outstanding principal
amount of the Intercompany Note shall accrue at a rate per annum equal to the
Base Rate in effect from time to time from and including the date of the initial
Purchase to but excluding the last day of each Purchase Settlement Period and
shall, subject to the terms and conditions hereof and thereof, be paid (x) on
each Settlement Date with respect to the principal amount of the Intercompany
Note outstanding from time to time during the Purchase Settlement Period
immediately preceding such Settlement Date (but only to the extent the Buyer has
funds

                                       12

available to make such payment) and/or (y) on the maturity date thereof;
provided, however, that, to the maximum extent permitted by law, accrued
interest on the Intercompany Note which is not so paid shall be added, at the
request of the Seller Agent, to the principal amount of the Intercompany Note.
Upon receipt of any such payment, the Seller Agent shall distribute such payment
to the Sellers ratably based on their respective interests in the Intercompany
Note as described in Section 2.08(b) below. Principal of the Intercompany Note
not paid or prepaid pursuant to the terms thereof shall be payable on the
maturity date thereof. Notwithstanding anything to the contrary contained in
this Agreement, any payments to be made by the Buyer in respect of the
Intercompany Note shall be made solely from funds available to the Buyer which
are not otherwise required to be applied or set-aside for the payment of any
obligations of the Buyer under the Transfer Agreement, shall be non-recourse
other than with respect to such funds and shall not constitute a claim against
the Buyer to the extent that insufficient funds exist to make such payment.

     (b) Each addition to the principal amount of the Intercompany Note on any
Purchase Date pursuant to Section 2.02(c) above (including on the date of the
initial Purchase hereunder) shall be allocated among the Sellers by the Seller
Agent ratably in proportion to the Purchase Price owing to each on such Purchase
Date.

     (c) Neither the Intercompany Note, nor any right of the Seller Agent or any
Seller to receive payments thereunder, shall be assigned, transferred,
exchanged, pledged, hypothecated, participated or otherwise conveyed.

     (d) Anything herein to the contrary notwithstanding, the Buyer may not make
any payment of any Purchase Price on any Purchase Date by increasing the
aggregate principal amount of the Intercompany Note outstanding unless the
aggregate principal amount of the Intercompany Note outstanding on such Purchase
Date (after giving effect to all repayments thereof on or before such Purchase
Date) would not exceed 25% of the aggregate Outstanding Balance of the Purchased
Receivables on such Purchase Date.

     SECTION 2.09. Certain Allocations. Each Seller and the Buyer hereby agree
that, unless otherwise required by applicable Law or unless an Obligor
designates that a payment be applied to a specific Receivable, all Collections
from an Obligor shall be applied to the oldest Receivables (whether or not such
Receivables are Purchased Receivables) of such Obligor.

                      ARTICLE III. CONDITIONS OF PURCHASES

     SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers.
The Buyer's obligation to pay the Purchase Price for the initial Purchase of
Receivables from the Sellers hereunder is subject to the conditions precedent
that the Buyer shall have received on or before the date of such Purchase all of
the instruments, documents, agreements and opinions specified in Schedule IV to
the Receivables Loan Agreement, each (unless otherwise indicated therein) dated
such date, in form and substance satisfactory to the Buyer.

                                       13

     SECTION 3.02. Conditions Precedent to All Purchases. The Buyer's obligation
to pay for any Purchase (including the initial Purchase) hereunder shall be
subject to the further conditions precedent that:

     (a) each Seller shall have delivered to the Buyer such information
   concerning such Receivables as may reasonably be requested by the Buyer; and

     (b) on the date of such Purchase the following statements shall be true
   (and each Seller, by accepting the Purchase Price for such Purchase, shall be
   deemed to have represented and warranted that):

         (i) The representations and warranties contained in Section 4.01 are
     correct on and as of the date of such Purchase as though made on and as of
     such date (except that the representations and warranties set forth in
     Sections 4.01(e), (f) and (s)(i) shall be required to be true and correct
     only as of the Closing Date and each Reporting Date);

         (ii) No event has occurred and is continuing, or would result from such
     Purchase, that constitutes a Termination Event or an Involuntary Bankruptcy
     Event; and

         (iii) The "Termination Date" shall not have occurred under (and as
     defined in) the Receivables Loan Agreement.

     Notwithstanding the foregoing, unless otherwise specified by the Buyer
(with a copy to the Administrative Agent) in a written notice to the Seller
Agent, each Purchase from a Seller shall occur automatically on each day prior
to the Termination Date for such Seller, with the result that the title to all
Receivables and the Related Property with respect thereto shall vest in the
Buyer automatically on the date each such Receivable arises and without any
further action of any kind by the Buyer, any Seller, the Seller Agent or the
Collection Agent, whether or not the conditions precedent specified above were
in fact satisfied on such date and notwithstanding any delay in making payment
of the Purchase Price for such Receivables (but without impairing the Buyer's
obligation to pay such Purchase Price in accordance with the terms hereof).

     SECTION 3.03. Condition Precedent to each Seller's Obligations. (a) The
obligation of each Seller to sell the Receivables generated by it and existing
on the Effective Date to the Buyer is subject to the conditions precedent that
such Seller shall have received on or before the date of such sale the
following, each (unless otherwise indicated) dated the day of such sale and in
form and substance reasonably satisfactory to such Seller:

         (i) Secretary's Certificate. A certificate of the Secretary or an
     Assistant Secretary of the Buyer, dated the date hereof, and certifying (A)
     that attached thereto is a true and complete copy of the certificate of
     formation and limited liability company agreement of the Buyer, as in
     effect on the date hereof and at all times since a date prior to the date
     of the resolutions described in clause (B) below, (B) that attached thereto
     is a true and complete copy of the resolutions, in form and substance
     reasonably satisfactory to the Seller, of the managers of the Buyer or
     committees thereof authorizing the execution, delivery and performance of
     this Agreement and the other Transaction

                                       14

     Documents to which it is a party and the transactions contemplated hereby
     and thereby, and that such resolutions have not been amended, modified,
     revoked or rescinded and are in full force and effect, (C) that the
     certificate of formation of the Buyer has not been amended since the date
     of the last amendment thereto shown on the certificate of good standing (or
     its equivalent) furnished pursuant to subsection (iii) below and (D) as to
     the incumbency and specimen signature of each officer executing this
     Agreement and any other Transaction Documents or any other document
     delivered in connection herewith or therewith on behalf of the Buyer (on
     which certificates the Sellers may conclusively rely until such time as the
     Sellers shall receive from the Buyer a revised certificate with respect to
     the Buyer meeting the requirements of this subsection (i));

         (ii) Corporate Documents. The certificate of formation, including all
     amendments thereto, of the Buyer, certified as of a recent date by the
     Secretary of State of the State of Delaware;

         (iii) Good Standing Certificates. Certificates of compliance, of status
     or of good standing for the Buyer, dated as of a recent date, from the
     Secretary of State of the State of Delaware;

         (iv) Consents, Licenses, Approvals, Etc. A Certificate dated the date
     hereof of the President or a Vice President of the Buyer either (A)
     attaching copies of all consents, licenses and approvals required in
     connection with the execution, delivery and performance by the Buyer of
     this Agreement and the validity and enforceability of this Agreement
     against the Buyer, and such consents, licenses and approvals shall be in
     full force and effect or (B) stating that no such consents, licenses or
     approvals are so required; and

         (v) No Litigation. Confirmation that there is no pending or, to its
     knowledge after due inquiry, threatened action or proceeding in writing
     affecting the Buyer before any Official Body that could reasonably be
     expected to have a material impairment of the ability of the Buyer to
     perform its obligations under the Transaction Documents.

     (b) The obligation of each Seller to sell any Receivable generated by it on
any date (including on the Effective Date) shall be subject to the further
conditions precedent that on such date no voluntary or involuntary case or
proceeding is pending against such Seller or the Buyer under the United States
Bankruptcy Code.

     SECTION 3.04. Conditions Precedent to the Addition of an Additional Seller.
The obligation of the Buyer to purchase Receivables hereunder from a Subsidiary
of TRW Automotive requested to be an Additional Seller pursuant to Section 9.13
is subject to the conditions precedent that the Buyer and the Administrative
Agent shall have received on or before the date designated for the addition of
such Additional Seller (the "Seller Addition Date") and in form and substance
satisfactory to the Buyer:

     (a) Additional Seller Supplement. An Additional Seller Supplement (with a
copy for each Funding Agent) duly executed and delivered by such Additional
Seller.

                                       15

     (b) Secretary's Certificate. A certificate of the Secretary or an Assistant
Secretary of such Seller, dated the Seller Addition Date, and certifying (i)
that attached thereto is a true and complete copy of the formation documents of
such Additional Seller, as in effect on the Seller Addition Date and at all
times since a date prior to the date of the resolutions described in clause (ii)
below, (ii) that attached thereto is a true and complete copy of the
resolutions, in form and substance reasonably satisfactory to the Buyer, of the
Board of Directors (or committees thereof), member or general partner, as the
case may be, of such Additional Seller authorizing the execution, delivery and
performance of this Agreement and the other Transaction Documents to which it is
a party and the transactions contemplated hereby and thereby, and that such
resolutions have not been amended, modified, revoked or rescinded and are in
full force and effect, (iii) that the certificate of formation of such
Additional Seller has not been amended since the date of the last amendment
thereto shown on the certificate of good standing (or its equivalent) furnished
pursuant to subsection (e) below and (iv) as to the incumbency and specimen
signature of each officer executing the Additional Seller Supplement and any
other Transaction Documents or any other document delivered in connection
therewith on behalf of such Additional Seller (on which certificates the Buyer
may conclusively rely until such time as the Buyer shall receive from such
Additional Seller a revised certificate with respect to such Additional Seller
meeting the requirements of this subsection (b));

     (c) Performance Guaranty. A reaffirmation of the Performance Guaranty in
form and substance reasonably satisfactory to the Administrative Agent pursuant
to which the Performance Guarantor reaffirms its obligations under the
Performance Guaranty after giving effect to the addition of such Additional
Seller hereunder;

     (d) Corporate Documents. The certificate of incorporation or formation,
including all amendments thereto, of such Additional Seller, certified as of a
recent date by the Secretary of State or other appropriate authority of the
state of formation, as the case may be;

     (e) Good Standing Certificates. Certificates of compliance, of status or of
good standing, dated as of a recent date, from the Secretary of State or other
appropriate authority of such jurisdiction, with respect to such Additional
Seller in each state where the ownership, lease or operation of property or the
conduct of business requires it to qualify as a foreign corporation, limited
partnership or limited liability company, as the case may be, except where the
failure to so qualify would not have a Material Adverse Effect;

     (f) UCC Certificate; UCC Financing Statements. (i) A certificate duly
executed by an officer of such Additional Seller and dated the related Seller
Addition Date and (ii) executed copies of such proper financing statements,
filed and recorded at such Additional Seller's expense prior to the related
Seller Addition Date, naming such Additional Seller as the seller and the Buyer
as the purchaser of the Receivables of such Additional Seller, in proper form
for filing in each jurisdiction in which the Buyer (or any of its assignees)
deems it necessary or desirable to perfect the Buyer's ownership interest in
such Receivables under the UCC;

     (g) UCC Searches. Written search reports, listing all effective financing
statements that name such Additional Seller as debtor or assignor and that are
filed in the jurisdictions in which filings were made pursuant to subsection (f)
above and in any other jurisdictions that the Buyer or the Administrative Agent
determines are necessary or appropriate,

                                       16

together with copies of such financing statements (none of which, except for
those described in subsection (f) above, shall cover any Receivables which are
to become Purchased Receivables of such Additional Seller or any Receivables
Property with respect thereto), and tax and judgment lien searches showing no
such liens that are not permitted by the Transaction Documents;

     (h) Opinions. Legal opinions with respect to such Additional Seller
conforming to the legal opinions delivered in respect of the Sellers on the date
hereof pursuant to Section 3.01 of the Receivables Loan Agreement;

     (i) Exhibit C. An amended Exhibit C incorporating the relevant information
for such Additional Seller;

     (j) Systems. Evidence, reasonably satisfactory to the Buyer and the
Administrative Agent that such Additional Seller's systems, procedures and
record keeping relating to its Receivables are in all material respects
sufficient and satisfactory in order to permit the purchase and administration
of such the Receivables in accordance with the terms and intent of this
Agreement and the Servicing Agreement;

     (k) Consent. The written consent to the addition of such Additional Seller
from the Administrative Agent and the Required Committed Lenders;

     (l) Control Agreements. Executed Control Agreements with respect to each
Collection Account of such Additional Seller and, if necessary, an executed
amendment to the Control Agreement for the applicable Concentration Account;

     (m) Pro Forma Monthly Report. A pro forma Monthly Report showing the aging
and roll forward history of the Receivables of such Additional Seller for the
period beginning not less than 14 months prior to the relevant Seller Addition
Date and a pro forma Weekly Report or (if requested by the Buyer or the
Administrative Agent) a pro forma Daily Report for the most recently ended
calendar week or Business Day, as applicable, prior to the relevant Seller
Addition Date;

     (n) Consents, Licenses, Approvals, Etc. A certificate dated as of the
applicable Effective Date the date hereof of the President or a Vice President
of such Additional Seller either (A) attaching copies of all consents, licenses
and approvals required in connection with the execution, delivery and
performance by such Additional Seller of the Additional Seller Supplement and
the validity and enforceability of this Agreement and the Servicing Agreement
against such Additional Seller, and such consents, licenses and approvals shall
be in full force and effect or (B) stating that no such consents, licenses or
approvals are so required; and

     (o) No Litigation. Confirmation that there is no pending or, to the actual
knowledge of a Responsible Officer of such Additional Seller after due inquiry,
threatened action or proceeding in writing affecting such Additional Seller
before any Official Body that could reasonably be expected to have a Material
Adverse Effect.

                                       17

                   ARTICLE IV. REPRESENTATIONS AND WARRANTIES

     SECTION 4.01. Representations and Warranties of the Sellers. Each Seller
represents and warrants with respect to such Seller as follows as of the
Effective Date, as of the date of each Purchase hereunder and as of each
Reporting Date (except that the representations and warranties set forth in
paragraphs (e), (f) and (s)(i) below shall be made only as of the Effective Date
and each Reporting Date):

         (a) Such Seller is a corporation or limited liability company duly
     incorporated or organized (as applicable), validly existing and in good
     standing under the laws of its jurisdiction of incorporation or
     organization, and is duly qualified to do business, and is in good standing
     as a foreign corporation or limited liability company, in every
     jurisdiction where the nature of its business requires it to be so
     qualified, unless the failure to so qualify would not reasonably be
     expected to have a Material Adverse Effect.

         (b) The execution, delivery and performance by such Seller of the
     Transaction Documents to which it is a party, including such Seller's sale
     of Receivables hereunder and such Seller's use of the proceeds of
     Purchases, (i) are within such Seller's corporate or limited liability
     company powers, (ii) have been duly authorized by all necessary corporate
     or limited liability company action and (iii) will not (A) violate (1) such
     Seller's certificate of incorporation or by-laws or certificate of
     formation or limited liability company agreement (as applicable), (2) any
     Law applicable to such Seller or (3) any provision of any indenture,
     certificate of designation for preferred stock, agreement or other
     instrument to which such Seller is a party or by which it or any of its
     property is or may be bound or (B) be in conflict with, result in a breach
     of or constitute (alone or with notice or lapse of time or both) a default
     under, give rise to a right of or result in any cancellation of a material
     right or acceleration of any material payment obligations under any such
     indenture, certificate of designation for preferred stock, agreement or
     other instrument, where any such conflict, violation, breach or default
     referred to in clause (3) of this Section 4.01(b), could reasonably be
     expected to have, individually or in the aggregate, a Material Adverse
     Effect and (iv) do not result in or require the creation of any Adverse
     Claim upon or with respect to any of its properties (except as created
     pursuant to the Transaction Documents). Each of the Transaction Documents
     to which such Seller is named as a party has been duly executed and
     delivered by such Seller.

         (c) No authorization or approval or other action by, and no notice to
     or filing with, any Official Body is required for the due execution,
     delivery and performance by such Seller of the Transaction Documents to
     which it is a party or any other document to be delivered by it thereunder,
     except for (i) the filing of the financing statements referred to in
     Schedule IV of the Receivables Loan Agreement (which financing statements
     shall have been delivered to the Administrative Agent prior to the
     Effective Date with respect to such Seller) and (ii) such as have been
     obtained or made and are in full force and effect.

         (d) Each of the Transaction Documents to which such Seller is a party
     constitutes the legal, valid and binding obligation of such Seller
     enforceable against such Seller in accordance with its terms, subject to
     (i) the effects of bankruptcy, insolvency,

                                       18

     moratorium, reorganization or other similar laws affecting creditors'
     rights generally, (ii) general principles of equity (regardless of whether
     such enforceability is considered in a proceeding in equity or at law) and
     (iii) implied covenants of good faith and fair dealing.

         (e) Since December 31, 2001, no Material Adverse Effect has occurred.

         (f) Except as set forth on Schedule II, (i) as of the initial Purchase
     Date, there are no actions, suits or proceedings at law or in equity or by
     or before any Official Body or in arbitration now pending or, to the actual
     knowledge of a Responsible Officer of such Seller, threatened in writing
     against or affecting such Seller or any of its business, property or rights
     and (ii) as of each other Purchase Date, there are no actions, suits or
     proceedings at law or in equity or by or before any Official Body or in
     arbitration or, to the actual knowledge of a Responsible Officer of such
     Seller, threatened in writing against or affecting such Seller or any of
     its business, property or rights as to which, in either case, an adverse
     determination is reasonably probable and which could reasonably be expected
     to have, individually or in the aggregate, a Material Adverse Effect.

         (g) No proceeds of any Purchase will be used to purchase or carry, or
     to extend credit to others for the purpose of purchasing or carrying,
     "margin stock" within the meaning of Regulation T, U or X promulgated by
     the Board of Governors of the Federal Reserve System from time to time.

         (h) No transaction contemplated hereby requires compliance with any
     bulk sales act or similar law.

         (i) Immediately prior to each Purchase of Receivables from such Seller
     hereunder, such Seller will be the owner of such Receivables and all
     Receivables Property with respect thereto, free and clear of any Adverse
     Claim (other than Permitted Adverse Claims). Upon each Purchase, the Buyer
     shall have acquired a valid and perfected first priority ownership interest
     in each Receivable now existing or hereafter arising and in the Receivables
     Property with respect thereto, in each case free and clear of any Adverse
     Claim (other than Permitted Adverse Claims or Adverse Claims created by, or
     arising from an act or omission of, the Buyer or its assigns). As of the
     Purchase Date of each Purchased Receivable, no effective financing
     statement or other instrument similar in effect, is filed in any recording
     office listing any Seller as debtor, covering such Purchased Receivable or
     related Receivables Property, or any interest therein, except such as may
     be filed in favor of the Buyer in accordance with this Agreement.

         (j) Each Portfolio Report (if prepared by any Seller or any of their
     respective Affiliates, or to the extent that information contained therein
     is supplied by any Seller or an Affiliate), information, exhibit, document,
     book, record or report furnished in writing at any time by or on behalf of
     any Seller in connection with the Transaction Documents is accurate in all
     material respects as of its date or (except as otherwise disclosed to the
     Buyer at such time) as of the date so furnished. All information contained
     in the Offering Memorandum was accurate in all material respects as of its
     date, and did not omit to state a material fact necessary in order to make
     the statements contained therein, in light of the circumstances under which
     they were made, not misleading.

                                       19

         (k) Such Seller is located in its jurisdiction of incorporation or
     organization specified in Exhibit C for the purposes of Section 9-307 of
     the UCC as in effect in the State of New York.

         (l) The names and addresses of all the Collection Account Banks and the
     Concentration Account Banks, together with the account numbers of the North
     American Collection Accounts and the North American Concentration Accounts,
     are as specified in Exhibit A (as the same may be updated from time to time
     pursuant to Section 5.01(g)).

         (m) In the past five (5) years, such Seller has not used any corporate
     name, tradename or doing-business-as name other than the name in which it
     has executed this Agreement and the other names listed on Exhibit C. Such
     Seller's Federal Employer Identification Number and, if organized in a
     jurisdiction other than Delaware, its organizational identification number
     is as set forth on Exhibit C.

         (n) Such Seller is not an "investment company" as defined in, or
     subject to regulation under, the Investment Company Act of 1940, as
     amended.

         (o) (i) The fair value of the assets of such Seller, at a fair
     valuation, exceed the debts and liabilities, direct, subordinated,
     contingent or otherwise, of such Seller; (ii) the present fair saleable
     value of the property of such Seller is greater than the amount that will
     be required to pay the probable liability of such Seller on its debts and
     other liabilities, direct, subordinated, contingent or otherwise, as such
     debts and other liabilities become absolute and matured; (iii) such Seller
     will be able to pay its debts and liabilities, direct, subordinated,
     contingent or otherwise, as such debts and liabilities become absolute and
     matured; and (iv) such Seller does not have unreasonably small capital with
     which to conduct the businesses in which it is engaged as such businesses
     are now conducted and are proposed to be conducted following the Closing
     Date.

         (p) Each Receivable treated as or represented by such Seller or any of
     its Affiliates to be an Eligible Receivable as of any Purchase Date was an
     Eligible Receivable on such date.

         (q) All Obligors with respect to Receivables sold by such Seller
     hereunder have been instructed to remit all their payments in respect of
     Receivables directly to a North American Collection Account. All Excluded
     Obligors have been instructed to remit all payments due from them to an
     account other than a North American Collection Account.

         (r) The transfers of Receivables by such Seller to the Buyer pursuant
     to this Agreement, and all other transactions between such Seller and the
     Buyer, have been and will be made in good faith and without intent to
     hinder, delay or defraud creditors of such Seller.

         (s) Each Seller and its ERISA Affiliates are in compliance with the
     applicable provisions of ERISA and the provisions of the IRC relating to
     Plans and the regulations and published interpretations thereunder and any
     similar applicable non-U.S. law, except for such noncompliance that could
     not reasonably be expected to have a

                                       20

     Material Adverse Effect. No Reportable Event has occurred during the past
     five years as to which such Seller or any ERISA Affiliate was required to
     file a report with the PBGC, other than reports that have been filed and
     reports the failure of which to file could not reasonably be expected to
     have a Material Adverse Effect. As of the Closing Date, the present value
     of all benefit liabilities under each Plan of such Seller and the ERISA
     Affiliates (based on those assumptions used to fund such Plan), did not as
     of the last annual valuation date applicable thereto for which a valuation
     is available, exceed the value of the assets of such Plan by an amount that
     could reasonably be expected to have a Material Adverse Effect and the
     present value of all benefit liabilities of all underfunded Plans (on a
     termination basis and based on those assumptions used to fund each such
     Plan), did not as of the last annual valuation dates applicable thereto for
     which valuations are available, exceed the value of the assets of all such
     underfunded Plans by an amount that could reasonably be expected to have a
     Material Adverse Effect. None of such Seller and the ERISA Affiliates has
     incurred or could reasonably be expected to incur any Withdrawal Liability
     that could reasonably be expected to have a Material Adverse Effect. None
     of such Seller and the ERISA Affiliates has received any written
     notification that any Multiemployer Plan is in reorganization or has been
     terminated within the meaning of Title IV of ERISA, or has knowledge that
     any Multiemployer Plan is reasonably expected to be in reorganization or to
     be terminated, where such reorganization or termination has had or could
     reasonably be expected to have, through increases in the contributions
     required to be made to such Plan or otherwise, a Material Adverse Effect.
     No Adverse Claim exists in favor of the Pension Benefit Guaranty
     Corporation on any of the Receivables.

         (t) No event has occurred and is continuing and no condition exists
     which constitutes a Termination Event.

         (u) Except as set forth on Schedule III, such Seller has filed or
     caused to be filed all material tax returns and has paid or caused to be
     paid or made adequate provision for all material taxes due and payable by
     it and all material assessments received by it except to the extent that
     non-payment: (i) is being contested in good faith; or (ii) could not
     reasonably be expected to result in a Material Adverse Effect.

         (v) The assignment of each Receivable and the related Receivables
     Property the subject of any Purchase on the related Purchase Date and the
     fulfillment of the terms hereof will not violate any applicable Law or any
     Contractual Obligation by which such Seller or any of its property may be
     bound.

         (w) Such Seller has performed and complied in all material respects
     with the terms of the Contract relating to each Purchased Receivable that
     is treated as or represented by such Seller or any of its Affiliates to be
     an Eligible Receivable.

         (x) Such Seller and the Collection Agent have the capability: (i) at
     any given time to identify each individual Purchased Receivable and (ii) to
     track Collections in respect of each such Receivable and each of the
     Receivables that have been or will be sold by such Seller to the Buyer in
     accordance herewith.

                                       21

         (y) Such Seller has complied in all material respects with its Credit
     and Collection Policy in regard to each Purchased Receivable that is
     treated as or represented by such Seller or any of its Affiliates to be an
     Eligible Receivable.

     SECTION 4.02. Representations and Warranties of the Buyer. The Buyer
represents and warrants as follows:

     (a) The Buyer is a limited liability company duly formed, validly existing
and in good standing under the laws of the jurisdiction of its formation and is
duly qualified in good standing as a foreign limited liability company in each
jurisdiction where the failure to be so qualified, individually or in the
aggregate, could not reasonably be expected to have a Buyer Material Adverse
Effect.

     (b) The execution, delivery and performance by the Buyer of this Agreement
(i) have been duly authorized by all necessary limited liability company action
and (ii) will not (A) violate (1) the Buyer's articles of organization or
limited liability company agreement, (2) any Law applicable to the Buyer or (3)
any provision of any indenture, certificate of designation for preferred stock,
agreement or other instrument to which the Buyer is a party or by which it or
any of its property is or may be bound or (B) be in conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a
default under, give rise to a right of or result in any cancellation of a
material right or acceleration of any material payment obligations under any
such indenture, certificate of designation for preferred stock, agreement or
other instrument, where any such conflict, violation, breach or default referred
to in clause (ii) or be of this Section 4.02(b), could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect and (iii) do
not result in or require the creation of any Adverse Claim upon or with respect
to any of its properties. This Agreement has been duly executed and delivered by
the Buyer.

     (c) No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body is required for the
due execution, delivery and performance by the Buyer of this Agreement, except
(i) such as have been obtained or made and are in full force and effect and (ii)
for such authorizations, approvals or actions the failure of which to obtain
could not reasonably be expected to result in a Buyer Material Adverse Effect.

     (d) This Agreement, when executed and delivered by the Buyer, will be the
legal, valid and binding obligations of the Buyer, enforceable in accordance
with its terms, subject to (i) the effects of bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors' rights
generally, (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (iii)
implied covenants of good faith and fair dealing.

     (e) There are no actions, suits or proceedings at law or in equity or by or
before any Official Body or in arbitration now pending or, to the actual
knowledge of a Responsible Officer of the Buyer, threatened in writing against
or affecting the Buyer or any of its business, property or rights as to which an
adverse determination is reasonably probable and which could reasonably be
expected to have a material adverse effect on the items described in clauses (i)
and (ii) of the definition of Buyer Material Adverse Effect.

                                       22

                              ARTICLE V. COVENANTS

     SECTION 5.01. Covenants of the Sellers. From the date hereof until the
first day following the Termination Date on which all of the Purchased
Receivables are either collected in full or are written off in accordance with
the Credit and Collection Policy, each Seller covenants and agrees as follows:

         (a) Compliance with Laws, Etc. Such Seller will comply in all respects
     with all applicable Laws and preserve and maintain its corporate existence,
     rights, franchises, qualifications and privileges except to the extent that
     the failure so to comply with such Laws or the failure so to preserve and
     maintain such rights, franchises, qualifications, and privileges would not
     reasonably be expected to have a Material Adverse Effect.

         (b) Offices, Records and Books of Account. Such Seller will keep the
     office where it keeps its records concerning the Purchased Receivables at
     (i) the address of such Seller specified on Schedule I as of the date of
     this Agreement or (ii) upon 30 days' prior written notice to the Buyer, at
     any other locations in jurisdictions where all actions reasonably requested
     by the Buyer to protect and perfect the Buyer's interest in the Purchased
     Receivables have been taken and completed. Such Seller also will maintain
     and implement administrative and operating procedures (including without
     limitation, an ability to recreate records evidencing Purchased Receivables
     and related Contracts in the event of the destruction of the originals
     thereof), and keep and maintain all documents, books, records and other
     information reasonably necessary or advisable for the collection of all
     Purchased Receivables (including, without limitation, records adequate to
     permit the daily identification of each Purchased Receivable and all
     Collections of and adjustments to each existing Purchased Receivable).

         (c) Performance and Compliance with Contracts and Credit and Collection
     Policy. Such Seller will, at its expense, (i) timely and fully perform and
     comply in all material respects with all provisions, covenants and other
     promises required to be observed by it under the Contracts related to the
     Purchased Receivables in the same manner as if this Agreement did not
     exist, and (ii) timely and fully comply in all material respects with the
     Credit and Collection Policy (as amended from time to time in accordance
     with the terms thereof) in regard to the Purchased Receivables and the
     related Contracts.

         (d) Sales, Liens, Etc. Such Seller will not sell, assign (by operation
     of law or otherwise) or otherwise dispose of, or create or suffer to exist
     any Adverse Claim (except for Permitted Adverse Claims) upon or with
     respect to, any Receivable, Related Security, related Contract or
     Collections, or upon or with respect to any Collection Account or the
     Concentration Account, or assign any right to receive income in respect
     thereof.

         (e) Extension or Amendment of Receivables and Contracts. Such Seller
     will not extend, amend or otherwise modify the terms of any Purchased
     Receivable or amend, modify or waive any term or condition of any Contract
     related thereto in a manner that could reasonably be expected to adversely
     affect the collectibility of such Receivable except (i) in its capacity as
     a Collection Agent Party, to the extent permitted under

                                       23

     Section 2.2(c) of the Servicing Agreement and (ii) in the case of any
     adjustment or cancellation of the Outstanding Balance of a Purchased
     Receivable, upon the granting or payment of a Purchase Price Credit in
     accordance with Section 2.03.

         (f) Change in Business or Credit and Collection Policy. Such Seller
     will not make any change in the character of its business or in the Credit
     and Collection Policy without the prior written consent of the Buyer, the
     Borrower and the Required Committed Lenders, except for any such change (i)
     that would not impair the collectibility of any Purchased Receivables in
     any material respect or otherwise be reasonably likely to have a Material
     Adverse Effect or (ii) as required by applicable Law. Such Seller will
     promptly notify the Buyer, the Borrower, the Administrative Agent and each
     Funding Agent in writing of any material change in the character of its
     business or its Credit and Collection Policy.

         (g) Change in Payment Instructions to Obligors. Such Seller will not
     add or terminate any Collection Account from those listed in Exhibit A to
     this Agreement, or make any change in its instructions to Obligors
     regarding payments to be made in respect of the Receivables or payments to
     be made to the North American Collection Accounts, unless the Buyer shall
     have received notice of such addition, termination or change (including an
     updated Exhibit A) and a fully executed Control Agreement with respect to
     each new Collection Account. Each North American Collection Account shall
     be maintained in the name of the Transferor.

         (h) Deposits to Collection Accounts and Concentration Account. Such
     Seller will instruct all Obligors to remit all their payments in respect of
     the Receivables into a North American Collection Account (either directly
     by wire transfer or electronic funds transfer or by check mailed to a
     lock-box maintained by the relevant Collection Account Bank). If such
     Seller or the Collection Agent shall receive any Collections directly, such
     Seller shall promptly (and in any event within one Business Day) deposit
     the same into a North American Collection Account or a North American
     Concentration Account. Such Seller will use its reasonable best efforts to
     prevent funds which do not constitute Collections of Receivables from being
     deposited into any North American Collection Account or North American
     Concentration Account.

         (i) Audits. Such Seller will, from time to time during regular business
     hours as requested by the Buyer or its assigns upon reasonable prior notice
     and at such Seller's expense, permit the Buyer, or its agents,
     representatives or assigns (including independent public accountants), (i)
     to conduct periodic audits of the Receivables, the Related Security and the
     related books and records and collections systems of such Seller, (ii) to
     examine and make copies of and abstracts from all books, records and
     documents (including, without limitation, computer tapes and disks) in the
     possession or under the control of such Seller relating to Receivables and
     the Receivables Property, including, without limitation, the Contracts, and
     (iii) to visit the offices and properties of such Seller for the purpose of
     examining such materials described in clause (ii) above, and to discuss
     matters relating to Receivables and the Receivables Property or such
     Seller's performance under the Transaction Documents or under the Contracts
     with any of the officers or employees of such Seller having knowledge of
     such matters; provided that, so

                                       24

     long as no Termination Event or Involuntary Bankruptcy Event has occurred
     and is continuing and no material discrepancies has been identified in the
     most recent Accountants' Letter delivered pursuant to Section 5.02(b) of
     the Receivables Loan Agreement, the Sellers shall be required to pay the
     expenses of no more than two audits conducted by the Administrative Agent
     and the Funding Agents during any single calendar year (such audits to be
     made on the dates specified by the Administrative Agent in consultation
     with the Funding Agents).

         (j) Further Assurances; Change in Name or Jurisdiction of Origination,
     etc. (i) Such Seller agrees from time to time, at its expense, promptly to
     execute and deliver all further instruments and documents, and to take all
     further actions, that may be necessary or desirable, or that the Buyer or
     its assignee may reasonably request, to perfect, protect or more fully
     evidence the Buyer's ownership of the Purchased Receivables, or to enable
     the Buyer or its assignee to exercise and enforce its respective rights and
     remedies under this Agreement. Without limiting the foregoing, such Seller
     will, upon the request of the Buyer or its assignee, (A) execute and file
     such financing or continuation statements, or amendments thereto, and such
     other instruments and documents, that may be necessary or desirable or that
     the Buyer or its assignee may reasonably request to perfect, protect or
     evidence the Buyer's ownership of such Receivables; and (B) following the
     occurrence of a Termination Event, deliver to the Buyer copies of the
     invoices evidencing the Purchased Receivables (which delivery may be made
     in electronic form).

               (ii) Such Seller authorizes the Buyer or its assignee to file
     financing or continuation statements, and amendments thereto and
     assignments thereof, relating to the Receivables and the Related Security,
     the related Contracts and the Collections with respect thereto without the
     signature of such Seller. A photocopy or other reproduction of this
     Agreement shall be sufficient as a financing statement where permitted by
     law.

               (iii) Such Seller shall not change its jurisdiction of
     organization unless (i) the Buyer shall have received at least thirty (30)
     days advance written notice of such change and all action by such Seller
     necessary or appropriate to perfect or maintain the perfection of the
     Buyer's interest in the Receivables and Receivable Property (including,
     without limitation, the filing of all financing statements and the taking
     of such other action as the Buyer may request in connection with such
     change) shall have been duly taken and (ii) the new jurisdiction of
     organization is a State within the United States of America.

               (v) Such Seller will not change its name, identity or corporate
     structure or tax identification number or the office at which any records
     relating to the Receivables are maintained unless the Buyer shall have
     received at least thirty (30) days advance written notice of such change or
     relocation and all action by such Seller necessary or appropriate to
     perfect or maintain the perfection of the Buyer's interest in the
     Receivables (including, without limitation, the filing of all financing
     statements and the taking of such other action as the Buyer may request in
     connection with such change or relocation) shall have been duly taken.

                                       25

         (k) Reporting Requirements. Such Seller will provide or cause to be
     provided to the Buyer, the Administrative Agent and each Funding Agent the
     following:

               (i) as soon as possible and in any event within one (1) Business
     Day after a Responsible Officer of such Seller obtains actual knowledge of
     the occurrence of each Termination Event or Incipient Termination Event, a
     statement of a Financial Officer of such Seller setting forth details of
     such Termination Event or Incipient Termination Event and the action that
     such Seller has taken and proposes to take with respect thereto;

               (ii) promptly after a Responsible Officer of such Seller obtains
     actual knowledge thereof, notice of the occurrence of any ERISA Event, that
     together with all other ERISA Events that have occurred, could reasonably
     be expected to result in liability of such Seller and all ERISA Affiliates
     in an aggregate amount in excess of $60,000,000;

               (iii) promptly after a Responsible Officer of such Seller obtains
     actual knowledge thereof, notice of the occurrence thereof any event or
     condition that is not a matter of general public knowledge and that has
     had, or could reasonably by expected to have, a Material Adverse Effect;
     and

               (iv) such other information respecting the Purchased Receivables
     or the condition or operations, financial or otherwise, of such Seller
     (including, without limitation, information regarding any pending or
     threatened litigation) as the Buyer may from time to time reasonably
     request.

         (l) Separate Conduct of Business. Such Seller shall take, or refrain
     from taking, as the case may be, all actions on its part necessary to
     ensure compliance by the Buyer with its covenants in Section 5.01(1) of the
     Transfer Agreement and of the Borrower in Section 5.01(k) of the
     Receivables Loan Agreement including, without limitation, all actions that
     are necessary to be taken or not to be taken in order to (x) ensure that
     the assumptions and factual recitations set forth in the Specified
     Bankruptcy Opinion Provisions remain true and correct with respect to such
     Seller and (y) comply with those procedures described in such provisions
     which are applicable to such Seller.

         (m) Taxes. Such Seller will pay and discharge promptly when due all
     material taxes, assessments and governmental charges or levies imposed upon
     it or upon its income or profits or in respect of its property, before the
     same shall become delinquent or in default, as well as all lawful claims
     for labor, materials and supplies or otherwise that, if unpaid, might give
     rise to a Lien upon such properties or any part thereof; provided, however,
     that such payment and discharge shall not be required with respect to any
     such tax, assessment, charge, levy or claim so long as the validity or
     amount thereof shall be contested in good faith by appropriate proceedings,
     and such Seller shall have set aside on its books reserves in accordance
     with GAAP with respect thereto and such contest effectively suspends
     collection of the contested obligation and the enforcement of any Adverse
     Claim securing such obligation.

                                       26

         (n) Treatment as Sales. Except to the extent otherwise required under
     GAAP, such Seller shall not account for or treat (whether in financial
     statements or otherwise) the transactions contemplated by this Agreement in
     any manner other than as a sale and absolute conveyance of Receivables by
     such Seller to the Buyer (except that, in accordance with applicable tax
     principles, each Purchase may be ignored for tax reporting purposes).

                   ARTICLE VI. ADMINISTRATION AND COLLECTION

     SECTION 6.01. Designation of Collection Agent. Consistent with the Buyer's
ownership interest in the Purchased Receivables, each Seller acknowledges and
agrees that the servicing, administration and collection of the Purchased
Receivables shall be the responsibility and right of the Buyer and its assigns.
The Buyer has advised the Sellers that (i) the Buyer has sold all of its right
and title to, and interest in, the Purchased Receivables and the Receivables
Property to the Borrower, (ii) the Borrower has granted a security interest in
the Purchased Receivables and the Receivables Property to the Administrative
Agent, for the benefit of the Secured Parties under the Receivables Loan
Agreement and (iii) the servicing, administration and collection of the
Purchased Receivables and the Receivables Property shall be conducted by the
Person designated as the Collection Agent pursuant to the Servicing Agreement
from time to time. Pursuant to the Servicing Agreement, (i) the Borrower has
requested TRW U.S. to, and TRW U.S. has agreed that it will, act as the initial
Collection Agent and (ii) TRW U.S. has appointed each Seller to act as its
Sub-Collection Agent with respect to the Receivables and the Receivables
Property originated by such Seller and each Seller has accepted such
appointment.

     SECTION 6.02. Certain Rights of the Buyer. (a) The Buyer may, at any time,
give notice of ownership and/or direct the Obligors of Purchased Receivables and
any Person obligated on any Related Security, or any of them, that payment of
all amounts payable under any Purchased Receivable shall be made directly to the
Buyer or its designee. Each Seller hereby transfers to the Buyer (and its
assigns and designees) the exclusive ownership and control of the Collection
Accounts and the Concentration Account and each Seller shall take any further
action that the Buyer may reasonably request to effect or further evidence such
transfer.

     (b) At any time following the occurrence and during the continuation of a
Termination Event:

         (i) Each Seller shall, upon the Buyer's request and at such Seller's
     expense, give notice of the Buyer's ownership to each Obligor of Purchased
     Receivables and direct that payments of all amounts payable under the
     Purchased Receivables be made directly to the Buyer or its designee;
     provided that no such notice shall be required if the only Termination
     Event(s) that shall have occurred are those set forth in 7.01(h), (k), (l)
     or (m) of the Receivables Loan Agreement.

         (ii) At the Buyer's request and at the expense of the respective
     Sellers, each Seller shall (A) assemble all of the Records, and shall make
     the same available to the Buyer or its designee at a place selected by the
     Buyer or its designee, and (B) segregate all cash, checks and other
     instruments received by it from time to time

                                       27

     constituting Collections of Receivables in a manner acceptable to the Buyer
     and, promptly upon receipt, remit all such cash, checks and instruments,
     duly indorsed or with duly executed instruments of transfer, to the Buyer
     or its designee. The Buyer shall also have the right to make copies of all
     such documents, instruments and other records at any time.

     (c) Each Seller authorizes each of the Buyer, the Borrower and the
Administrative Agent, and hereby irrevocably appoints each of the Buyer, the
Borrower and the Administrative Agent as its attorney-in-fact coupled with an
interest, with full power of substitution and with full authority in place of
such Seller, following the occurrence and during the continuation of a
Termination Event or Involuntary Bankruptcy Event, to take any and all steps in
such Seller's name and on behalf of such Seller, that are necessary or
desirable, in the determination of the Buyer, the Borrower or the Administrative
Agent (as applicable), to collect amounts due under the Purchased Receivables,
including, without limitation, (i) endorsing such Seller's name on checks and
other instruments representing Collections of Purchased Receivables and
enforcing the Purchased Receivables and the Related Security and related
Contracts and (ii) enforcing the Receivables and the Related Security including
to ask, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in connection
with therewith and to file any claims or take any action or institute any
proceedings that the Buyer, the Borrower or the Administrative Agent (or such
designee) may deem to be necessary or desirable for the collection thereof or to
enforce compliance with the terms and conditions of, or to perform any
obligations or enforce any rights of such Seller in respect of, the Receivables
and the Related Security; provided that no enforcement action of the type
described in this clause (ii) may be taken by the Buyer, the Borrower or the
Administrative Agent if no Involuntary Bankruptcy Event then exists and the only
Termination Events that shall have occurred are those "Termination Events" set
forth in 7.01(h), (k), (l) or (m) of the Receivables Loan Agreement.

     SECTION 6.03. Rights and Remedies. (a) If any Seller fails to perform any
of its obligations under this Agreement, the Buyer may (but shall not be
required to) cause performance of, such obligation, and the costs and expenses
of the Buyer reasonably incurred in connection therewith shall be payable by
such Seller.

     (b) Each Seller shall cooperate with the Collection Agent in collecting
amounts due from Obligors in respect of the Purchased Receivables.

                       ARTICLE VII. EVENTS OF TERMINATION

     SECTION 7.01. Events of Termination. If any of the following events (each a
"Termination Event") shall occur and be continuing:

     (a) any Seller shall fail to make any payment or deposit required to be
made by it hereunder or under any of the Transaction Documents when due
hereunder or thereunder and such failure remains unremedied for one Business
Day; or

     (b) any representation, warranty, certification or statement made by any
Seller in this Agreement, any other Transaction Document to which it is a party
or in any other

                                       28

document delivered pursuant hereto or thereto shall prove to have been incorrect
in any material respect when made or deemed made other than any breach of a
representation relating to a Receivable that has been repurchased pursuant to
Section 2.03 or with respect to which the Buyer has declined to effect such
repurchase as provided therein after receipt of notice of such breach; or

     (c) any Seller shall fail to perform or observe (i) any term, covenant or
agreement contained in Section 5.01(a) (as to maintenance of existence only) or
5.01(d) of this Agreement or (ii) any other term, covenant or agreement
contained in this Agreement or any other Transaction Document on its part to be
performed or observed and, solely in the case of this clause (ii), such failure
shall remain unremedied for ten (10) days after a Responsible Officer of such
Seller has actual knowledge or receives written notice thereof; or

     (d) any Event of Bankruptcy shall occur with respect to any Seller; or

     (e) the Buyer shall, for any reason, fail or cease to have good and
marketable title to the Purchased Receivables and Related Security and
Collections with respect thereto, free and clear of any Adverse Claims (other
than Permitted Adverse Claims); or

     (f) any Change of Control shall occur; or

     (g) there shall have occurred since the Closing Date any event or condition
which has had or could reasonably be expected to have a material adverse effect
on (A) the validity, enforceability or collectibility of the Receivables taken
as a whole or (B) the ability of any Seller to perform its obligations under the
Transaction Documents; or

     (h) (i) any Seller receives notice or becomes aware that a notice of lien
has been filed against such Seller under Section 412(n) of the IRC or Section
302(f) of ERISA for a failure to make a required installment or other payment to
a plan to which Section 412(n) of the IRC or Section 302(f) of ERISA applies or
(ii) (A) a Reportable Event or Reportable Events shall have occurred with
respect to any Plan or a trustee shall be appointed by a United States district
court to administer any Plan, (B) the PBGC shall institute proceedings
(including giving notice of intent thereof) to terminate any Plan or Plans, (C)
Holdings, Intermediate Holdings, TRW Automotive, any Subsidiary of TRW
Automotive or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that it has incurred or will be assessed Withdrawal Liability
to such Multiemployer Plan and such person does not have reasonable grounds for
contesting such Withdrawal Liability or is not contesting such Withdrawal
Liability in a timely and appropriate manner, (D) Holdings, Intermediate
Holdings, TRW Automotive, any Subsidiary of TRW Automotive or any ERISA
Affiliate shall have been notified by the sponsor of a Multiemployer Plan that
such Multiemployer Plan is in reorganization or is being terminated, within the
meaning of Title IV of ERISA, (E) Holdings, Intermediate Holdings, TRW
Automotive, any Subsidiary of TRW Automotive or any ERISA Affiliate shall engage
in any "prohibited transaction" (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan or (F) any other similar event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (A)
through (F) above, such event or condition, together with all other such events
or conditions, if any, could reasonably be expected to have a Material Adverse
Effect; or

                                       29

     (i) any "Termination Event" shall occur under the Transfer Agreement or any
"Termination Event" shall occur under the Receivables Loan Agreement;

then, and in any such event, the Buyer may, in its discretion, declare the
Termination Date to have occurred with respect to all Sellers or, in the
discretion of the Buyer, any Seller affected by such Termination Event, upon
notice to such Seller or Sellers; provided that, automatically upon the
occurrence of any event (without any requirement for the giving of notice)
described in paragraph (d) of this Section 7.01 with respect to any Seller, the
Termination Date shall occur with respect to such Seller. Upon any such
declaration or upon such automatic termination, the Buyer and its assigns shall
have, in addition to the rights and remedies which it may have under this
Agreement, all other rights and remedies provided after default under the UCC
and under other applicable law, which rights and remedies shall be cumulative.

                         ARTICLE VIII. INDEMNIFICATION

     SECTION 8.01. Indemnities by the Sellers. Without limiting any other rights
that the Buyer and its respective officers, directors, employees, agents and
assigns (each, an "Indemnified Party") may have hereunder or under applicable
law, each Seller hereby agrees to indemnify each Indemnified Party from and
against any and all damages, losses, claims, liabilities, deficiencies, costs,
disbursements and expenses, including, without limitation, interest, penalties,
amounts paid in settlement and reasonable attorneys' fees (all of the foregoing
being collectively referred to as "Indemnified Amounts") arising out of or
resulting from any of the following (excluding, however, (a) Indemnified Amounts
to the extent such Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of such Indemnified Party, (b) any income taxes or any
other tax or fee measured by income incurred by such Indemnified Party arising
out of or as a result of this Agreement or the ownership of Purchased
Receivables and (c) Indemnified Amounts arising solely from a delay in payment,
or default by, an Obligor with respect to any Receivable (other than any delay
or default arising out of any discharge, claim, offset or defense of the Obligor
to the payment of any Purchased Receivable arising from the actions or omissions
of such Seller (including, without limitation, a defense based on such Purchased
Receivable not being a legal, valid and binding obligation of such Obligor
enforceable against it in accordance with its terms, but excluding any defense
based on a discharge in bankruptcy)):

         (i) any Receivable which such Seller represents to be or treats as an
     Eligible Receivable but which is not an Eligible Receivable as of the date
     of such representation or treatment;

         (ii) any other representation or warranty certification, report or
     other statement made or deemed made by such Seller (or any of its officers
     or employees) under or in connection with this Agreement or any of the
     other Transaction Documents which shall have been incorrect in any respect
     when made;

         (iii) the failure by such Seller to comply with any applicable Law with
     respect to any Receivable or the related Contract; or the failure of any
     Receivable originated by such Seller or the related Contract to conform to
     any such applicable Law;

                                       30

         (iv) the failure to vest in the Buyer absolute ownership of each
     Purchased Receivable originated by such Seller and the Related Security and
     Collections in respect thereof, free and clear of any Adverse Claim;

         (v) the failure to have filed, or any delay in filing, financing
     statements or other similar instruments or documents under the UCC of any
     applicable jurisdiction or other applicable laws with respect to any
     Receivables originated by such Seller and the Related Security and
     Collections in respect thereof, whether at the time of any Purchase or at
     any subsequent time;

         (vi) any dispute, claim, offset or defense (other than discharge in
     bankruptcy) of an Obligor to the payment of any Receivable originated by
     such Seller (including, without limitation, a defense based on such
     Receivable or the related Contract not being a legal, valid and binding
     obligation of such Obligor enforceable against it in accordance with its
     terms), or any other claim resulting from the sale of the merchandise,
     goods or services related to such Receivable or the furnishing or failure
     to furnish such merchandise, goods or services or relating to any Contract
     related thereto;

         (vii) any failure of such Seller to perform its duties or obligations
     in accordance with the provisions hereof and each other Transaction
     Document or to perform its duties or obligations under the Contracts or to
     timely and fully comply in all respects with the Credit and Collection
     Policy in regard to each Receivable originated by such Seller and the
     related Contract;

         (viii) any products liability, environmental or other claim arising out
     of or in connection with merchandise, goods or services which are the
     subject of any Receivable originated by such Seller or Related Security;

         (ix) the commingling of Collections of Purchased Receivables at any
     time with other funds;

         (x) any investigation, litigation or proceeding (actual or threatened)
     related to this Agreement or the use of proceeds of Purchases or in respect
     of any Receivable originated by such Seller or Related Security or
     Contract; or

         (xi) the failure by such Seller to pay when due any taxes, including,
     without limitation, sales, excise or personal property taxes.

     Notwithstanding anything to the contrary in this Agreement, solely for
purposes of the Sellers' indemnification obligations pursuant to clauses (ii)
and (vii) of this Article VIII, any representation, warranty or covenant
qualified by the occurrence or non-occurrence of a Material Adverse Effect or
similar concepts of materiality shall be deemed to be not so qualified.

                           ARTICLE IX. MISCELLANEOUS

     SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or consent to any departure by any Seller or the Collection Agent
therefrom shall be effective unless in a writing signed by the Buyer, the
Borrower and (so long as

                                       31

the Receivables Loan Agreement is in effect) the Administrative Agent and, in
the case of any amendment, also signed by the Sellers affected thereby, and then
such amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. No failure on the part of
the Buyer to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise
of any other right.

     SECTION 9.02. Notices, Etc. Except as provided below, all communications
and notices provided for hereunder shall be in writing (including telecopy or
electronic facsimile transmission or similar writing) and shall be given to the
other party at its address or telecopy number specified below or at such other
address or telecopy number as such party may hereafter specify for the purposes
of notice to such party. Each such notice or other communication shall be
effective (i) if given by telecopy, when such telecopy is transmitted to the
telecopy number specified in this Section 9.02 and confirmation is received,
(ii) if given by mail three Business Days following such posting, postage
prepaid, U.S. certified or registered, (iii) if given by overnight courier, one
Business Day after deposit thereof with a national overnight courier service, or
(iv) if given by any other means, when received at the address specified in this
Section 9.02. Each Seller hereby appoints the Seller Agent as its agent and
irrevocably authorizes the Seller Agent to execute and deliver all notices
required hereunder on behalf of the Sellers. Any notice required to be delivered
to any Seller hereunder shall be deemed delivered to such Seller if delivered to
the Seller Agent in accordance with the terms hereof. The Seller Agent accepts
such appointment as agent for the Sellers and agrees to act thereas until the
date on which this Agreement has terminated in accordance with its terms. Each
Seller agrees not to revoke, modify or withdraw such appointment until
terminated pursuant to the preceding sentence..

     If to a Seller, to its address set forth on Schedule I.

     If to Buyer, to its address set forth on Schedule I.

     SECTION 9.03. Binding Effect; Assignability. (a) This Agreement shall be
binding upon and inure to the benefit of the Sellers, the Collection Agent, the
Buyer and their respective successors and assigns; provided, however, that
neither the Collection Agent nor any Seller may assign its rights or obligations
hereunder or any interest herein without the prior written consent of the Buyer.
The Buyer may assign all or any part of its rights and obligations hereunder (as
security for obligations of the Buyer or otherwise) without the consent of the
Collection Agent or any Seller. In connection with any sale or assignment by the
Buyer of all or a portion of the Purchased Receivables, the purchaser or
assignee, as the case may be, shall, to the extent of its purchase or
assignment, have all rights of the Buyer under this Agreement (as if such
purchaser or assignee, as the case may be, were the Buyer hereunder) subject to
the terms of the agreement between the Buyer and such purchaser or assignee, as
the case may be.

     (b) This Agreement shall create and constitute the continuing obligations
of the parties hereto in accordance with its terms, and shall remain in full
force and effect until such time, after the Termination Date, when all of the
Purchased Receivables are either collected in full or are written off as
uncollectible in accordance with the Credit and Collection Policy; provided,
however, that rights and remedies with respect to any breach of any
representation and

                                       32

warranty made by any Seller pursuant to Article IV and the provisions of Article
VIII and Sections 9.04, 9.05 and 9.06 shall be continuing and shall survive any
termination of this Agreement.

     SECTION 9.04. Costs, Expenses and Taxes. (a) In addition to the rights of
indemnification granted to the Buyer pursuant to Article VIII hereof, the
Sellers agree to pay on demand all reasonable costs and expenses in connection
with the preparation, execution, delivery and administration of this Agreement
and the other documents and agreements to be delivered hereunder, including,
without limitation, (i) the reasonable fees and out-of-pocket expenses of
counsel for the Buyer with respect thereto and with respect to advising the
Buyer as to its rights and remedies under this Agreement; (ii) all reasonable
fees and expenses associated with any audits and other due diligence conducted
prior to or after the Closing Date and (iii) any amendments, waivers or consents
under the Transaction Documents. In addition, the Sellers agree to pay all costs
and expenses, if any (including reasonable counsel fees and expenses), in
connection with the enforcement of this Agreement and the other documents to be
delivered hereunder.

     (b) In addition, the Sellers agree to pay any and all stamp and other taxes
and fees payable in connection with the execution, delivery, filing and
recording of this Agreement or the other documents or agreements to be delivered
hereunder, and the Sellers agree to save each Indemnified Party harmless from
and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.

     SECTION 9.05. No Proceedings. Each Seller hereby agrees that it will not
institute against, or join any other Person in instituting against, the Buyer or
the Borrower any proceeding of the type referred to in the definition of "Event
of Bankruptcy" in the Receivables Loan Agreement so long as there shall not have
elapsed one year plus one day since the Final Payout Date.

     SECTION 9.06. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 9.07. Third Party Beneficiary. Each of the parties hereto hereby
acknowledges that the Buyer may assign all or any portion of its rights under
this Agreement and that such assignees may (except as otherwise agreed to by
such assignees) further assign, or grant security interests in, their rights
under this Agreement, and each Seller and the Collection Agent hereby consents
to any such assignment and grants. All such assignees and secured parties, shall
be third party beneficiaries of, and shall be entitled to enforce the Buyer's
rights and remedies under, this Agreement to the same extent as if they were
parties hereto, subject to the terms of their agreement with the Buyer or the
Borrower, as the case may be. Without limiting the generality of the foregoing,
each Seller hereby acknowledges that the Buyer has assigned all of its rights,
remedies and powers hereunder to the Borrower pursuant to the Transfer
Agreement, and that the Borrower has granted a security interest in all such
rights, remedies and powers to the Administrative Agent pursuant to the
Receivables Loan Agreement. Each Seller agrees that the Administrative Agent
(for the benefit of the Secured Parties under the Receivables Loan Agreement)
shall, subject to the terms of the Receivables Loan Agreement, have the right to

                                       33

enforce this Agreement and to exercise directly all of the Buyer's rights and
remedies under this Agreement (including, without limitation, the right to give
or withhold any consents or approvals of the Buyer to be given or withheld
hereunder) and each Seller agrees to cooperate fully with the Administrative
Agent in the exercise of such rights and remedies. Each Seller further agrees to
give to the Administrative Agent copies of all notices and reports it is
required to give to the Buyer hereunder. Notwithstanding anything herein to the
contrary, (i) no declaration of the Termination Date by the Buyer, and no other
amendment, waiver, consent, request or other modification (including, without
limitation, any request pursuant to Section 2.03) made or granted by the Buyer
hereunder, shall in any case be effective unless the same shall have been made
or granted by, or approved in writing by, the Administrative Agent (which may
make, grant or approve the Termination Date, and which shall, at the direction
of the Required Committed Lenders make, grant or approve the Termination Date)
and (ii) no declaration of a Non-Payment Event or the Termination Date by any
Seller or the Seller Agent shall in any case be effective unless notice of such
declaration shall have been received by the Administrative Agent. For the
avoidance of doubt, it is understood and agreed that the Administrative Agent's
right to deliver notices to Obligors shall be subject to Section 6.02 of the
Receivables Loan Agreement.

     SECTION 9.08. Restriction on Payments; Waiver of Setoff. (a)
Notwithstanding anything in this Agreement or elsewhere to the contrary, each
Seller acknowledges and agrees to the restrictions on payments set forth in, and
the other terms of, the Intercompany Note and agrees to be bound thereby to the
same extent as if it were the Holder (as defined in the Intercompany Note)
thereunder.

     (b) Except as otherwise provided herein, the obligations and liabilities of
the Sellers under this Agreement (collectively, the "Seller Obligations") shall
not be subject to deduction of any kind or type, except by payment in full of
the amount thereof in accordance with the terms thereof. Each Seller hereby
waives any right it may now or at any time hereafter have to set-off any Seller
Obligation against any obligation of the Buyer (including, without limitation,
any obligation of the Buyer under the Intercompany Note or in respect of the
payment of the Purchase Price for any Purchased Receivables).

     SECTION 9.09. Execution in Counterparts. This Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute one and the
same agreement.

     SECTION 9.10. Integration; Survival of Termination. This Agreement and the
other Transaction Documents executed by the parties hereto on the date hereof
contain the final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof superceding all prior oral or written understandings. Any provisions of
this Agreement which are 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.

                                       34

     SECTION 9.11. Consent to Jurisdiction. (a) Each party hereto hereby
irrevocably submits to the non-exclusive jurisdiction of any New York State or
Federal court sitting in New York City in any action or proceeding arising out
of or relating to this Agreement, and each party hereto hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and
determined in such New York State court or, to the extent permitted by law, in
such Federal court. The parties hereto hereby irrevocably waive, to the fullest
extent they may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. The parties hereto agree that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

     (b) Each of the Sellers and the Buyer consents to the service of any and
all process in any such action or proceeding by the mailing of copies of such
process to it at its address specified herein. Nothing in this Section 9.11
shall affect the right of any party to serve legal process in any manner
permitted by law.

     SECTION 9.12. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO , OR
CONNECTED WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT.

     SECTION 9.13. Additional Sellers. Subject to the terms and conditions
hereof, from time to time one or more directly or indirectly wholly-owned
Subsidiaries of TRW Automotive may become additional Sellers parties hereto. If
any such Subsidiary wishes to become an Additional Seller, the Seller Agent
shall submit a request to such effect in writing to the Buyer. Such wholly-owned
Subsidiary shall become an Additional Seller party hereto on the related Seller
Addition Date upon satisfaction of the conditions set forth in Section 3.04.

     SECTION 9.14. Termination of Sellers. Each Seller may, on not less than 10
Business Days' notice to the Buyer and the Administrative Agent, irrevocably
terminate its right to sell Receivables to the Buyer pursuant to this Agreement,
in which case the Termination Date shall occur with respect to such Seller on
the date specified in such notice; provided, however, that, for the avoidance of
doubt, all rights and remedies of the Buyer with respect to any breach of any
representation and warranty made by such Seller pursuant to Article IV and the
provisions of Article VIII and Sections 9.04, 9.05 and 9.06 shall be continuing
and shall survive any termination of such Seller's right to sell Receivables
hereunder.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       35

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

SELLER AGENT:                          TRW AUTOMOTIVE U.S. LLC

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name:  David L. Bialosky
                                       Title: Vice President and General Counsel
SELLERS:                               KELSEY-HAYES COMPANY

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name:  David L. Bialosky
                                       Title: Secretary and Vice President

                                       TRW AUTOMOTIVE U.S. LLC

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name:  David L. Bialosky
                                       Title: Vice President and General Counsel

                                       TRW VEHICLE SAFETY SYSTEMS INC.

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name:  David L. Bialosky
                                       Title: Secretary and Vice President

                                       LAKE CENTER INDUSTRIES
                                       TRANSPORTATION, INC.

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name: David L. Bialosky
                                       Title: Secretary and Vice President

BUYER:                                 TRW AUTOMOTIVE RECEIVABLES LLC

                                       By /s/ David L. Bialosky
                                          ---------------------
                                       Name:  David L. Bialosky
                                       Title: Secretary and Vice PresidentEXHIBIT 10.6

                                                                  EXECUTION COPY

                               TRANSFER AGREEMENT

                          Dated as of February 28, 2003

                                     between

                         TRW AUTOMOTIVE RECEIVABLES LLC

                                  as Transferor
                                  -------------

                                       and

                      TRW AUTOMOTIVE GLOBAL RECEIVABLES LLC

                                  as Transferee
                                  -------------

                               TABLE OF CONTENTS
                               -----------------

                                                                            PAGE

ARTICLE I    DEFINITIONS......................................................2

     SECTION 1.01.   Certain Defined Terms....................................2
     SECTION 1.02.   Other Terms..............................................5
     SECTION 1.03.   Incorporation of Defined Terms...........................5

ARTICLE II   AMOUNTS AND TERMS OF TRANSFERS...................................5

     SECTION 2.01.   Agreement to Transfer and Purchase.......................5
     SECTION 2.02.   Payment for the Transfers................................7
     SECTION 2.03.   Purchase Price/Transfer Price Credit Adjustments.........8
     SECTION 2.04.   Payments and Computations, Etc...........................8
     SECTION 2.05.   Transfer of Records......................................9
     SECTION 2.06.   Characterization; Grant of Security Interest.............9
     SECTION 2.07.   No Repurchase............................................9
     SECTION 2.08.   Certain Allocations......................................9
     SECTION 2.09.   Credit Default Swaps Indemnification; Grant
                     of Security Interest to Transferee.......................9
     SECTION 2.10.   Grant of Security Interest in the North
                     American Collection Accounts and the North
                     American Concentration Account..........................10
     SECTION 2.11.   Credit Default Premium Reserve Account..................10

ARTICLE III  CONDITIONS OF TRANSFERS.........................................12

     SECTION 3.01.   Conditions Precedent to Initial Transfer
                     from the Transferor.....................................12
     SECTION 3.02.   Conditions Precedent to All Transfers...................12
     SECTION 3.03.   Condition Precedent to the Transferor's
                     Obligations.............................................13

ARTICLE IV   REPRESENTATIONS AND WARRANTIES..................................14

     SECTION 4.01.   Representations and Warranties of the Transferor........14
     SECTION 4.02.   Representations and Warranties of the Transferee........16

ARTICLE V    COVENANTS.......................................................17

     SECTION 5.01.   Covenants of the Transferor.............................17

ARTICLE VI   ADMINISTRATION AND COLLECTION...................................25

     SECTION 6.01.   Designation of Collection Agent.........................25
     SECTION 6.02.   Certain Rights of the Transferee........................26
     SECTION 6.03.   Rights and Remedies.....................................27

ARTICLE VII  EVENTS OF TERMINATION...........................................27

     SECTION 7.01.   Events of Termination...................................27

                                       i

ARTICLE VIII INDEMNIFICATION.................................................28

     SECTION 8.01.   Indemnities by the Transferor...........................28

ARTICLE IX   MISCELLANEOUS...................................................30

     SECTION 9.01.   Amendments, Etc.........................................30
     SECTION 9.02.   Notices, Etc............................................30
     SECTION 9.03.   Binding Effect; Assignability...........................30
     SECTION 9.04.   Costs, Expenses and Taxes...............................31
     SECTION 9.05.   No Proceedings..........................................31
     SECTION 9.06.   GOVERNING LAW...........................................31
     SECTION 9.07.   Rights of Administrative Agent..........................31
     SECTION 9.08.   Restriction on Payments; Waiver of Setoff...............32
     SECTION 9.09.   Execution in Counterparts...............................33
     SECTION 9.10.   Integration; Survival of Termination....................33
     SECTION 9.11.   Consent to Jurisdiction.................................33
     SECTION 9.12.   WAIVER OF JURY TRIAL....................................33

EXHIBITS AND SCHEDULES

SCHEDULE I            Notice Addresses

                                       ii

                               TRANSFER AGREEMENT

                          Dated as of February 28, 2003

         TRW AUTOMOTIVE RECEIVABLES LLC, a Delaware limited liability company
(the "Transferor") and TRW AUTOMOTIVE GLOBAL RECEIVABLES LLC, a Delaware limited
liability company (the "Transferee"), agree as follows:

                             PRELIMINARY STATEMENTS

         (1) The Transferor has agreed to purchase certain Receivables and the
related Receivables Property from the North American Originators from time to
time, on the terms and subject to the conditions set forth in the North American
Originator Purchase Agreement.

         (2) The Transferor may agree to make certain Loans to the European
Purchaser from time to time, which Loans will be secured by the European
Purchaser Collateral, on the terms and subject to the conditions contained in
the European Loan Agreement.

         (3) In connection with the foregoing, the Transferor may from time to
time enter into Credit Default Swaps.

         (4) The Transferor wishes to transfer and assign to the Transferee from
time to time, and the Transferee has agreed to acquire from the Transferor, (a)
all Receivables and related Receivables Property purchased by the Transferor
pursuant to the North American Originator Purchase Agreement, (b) all Loans
funded by the Transferor to the European Purchaser pursuant to the European Loan
Agreement (including, without limitation, the Transferor's right to receive
principal and interest with respect to such Loans) and all of the Transferor's
interest in and to the European Purchaser Collateral and (c) other Transferred
Assets (as defined herein).

         (5) The Transferee intends to enter into the Receivables Loan
Agreement.

         (6) In connection with the transfer of the Transferred Assets, (i) the
Transferor has agreed to indemnify the Transferee for all Credit Losses arising
in connection with Pool Receivables owing by Special Obligors and their
respective Affiliates and to secure such indemnity with the Credit Default Swap
Collateral and (ii) grant a security interest in the North American Collection
Accounts, the North American Concentration Account(s) and the Credit Default
Premium Reserve Account in favor of the "Administrative Agent" under the
Receivables Loan Agreement.

         NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.01. Certain Defined Terms. The following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

         "Account Collateral" has the meaning specified in Section 2.10.

         "Agreement" means this Transfer Agreement, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

         "Applicable Agreements" means, collectively, the Assigned Agreements
and the Credit Default Swaps.

         "Assigned Agreements" has the meaning specified in Section 2.01(a)(v).

         "Borrower" means the Transferee, in its capacity as "Borrower" under
the Receivables Loan Agreement, and any successor thereto.

         "Borrowing Date" means each date on which the Transferor funds a Loan
to the European Purchaser pursuant to the European Loan Agreement.

         "Closing Date" means February 28, 2003 or, if later, the first date on
which the conditions precedent set forth in Section 3.01 are satisfied.

         "Collection Agent" means TRW U.S. in its capacity as collection agent
under the Servicing Agreement, and any successor thereto in such capacity.

         "Collections" means, collectively, all cash collections and other cash
Proceeds of the Transferred Assets (including, without limitation, all payments
of principal and interest with respect to the Loans), including, without
limitation, all cash Proceeds of Related Security or European Purchaser
Collateral (as the case may be) with respect to any such Transferred Asset.

         "Contract" means an agreement (including, without limitation, an
agreement evidenced by a purchase order, invoice or similar document), pursuant
to or under which an Obligor shall be obligated to pay for goods or merchandise
purchased from an Originator or services rendered by an Originator.

         "Credit Default Collateral Account" means a deposit account, securities
account or other account established by the Administrative Agent subject to the
security interest created under Section 2.09.

         "Credit Default Premium Reserve Account" means a deposit account,
securities account or other account established by the Administrative Agent
pursuant to Section 2.11.

         "Credit Default Swap Collateral" has the meaning specified in Section
2.09.

                                       2

         "Credit Event" means, with respect to any Special Obligor, a "Credit
Event" as defined in the related Credit Default Swap.

         "Credit Loss" means, with respect to any Special Obligor with respect
to which a Credit Event has occurred, the aggregate Outstanding Balance of all
Pool Receivables owing by such Obligor or any of its Affiliates (i) which remain
unpaid for 91 or more days from the original due date for such Receivable or
(ii) as to which an Event of Bankruptcy has occurred and is continuing with
respect to the Obligor(s) thereof (such Outstanding Balance determined without
giving effect to any write-off or any other non-cash reduction to the
outstanding balance of such Receivables and after giving effect to any
Collections attributable to such Pool Receivables).

         "European Purchaser Collateral" means, with respect to the Loans, all
security interests, liens or charges and property subject thereto from time to
time purporting to secure repayment of such Loans, whether pursuant to the
European Loan Agreement, the European Purchaser Security Agreement or otherwise,
together with all guaranties and other agreements and arrangements of whatever
character from time to time supporting or securing repayment of such Loans.

         "Incipient Termination Event" means an event that but for notice or
lapse of time or both would constitute a Termination Event.

         "Indemnified Amounts" has the meaning specified in Section 8.01(a).

         "Indemnified Parties" has the meaning specified in Section 8.01(a).

         "Independent Parties" has the meaning specified in Section 5.01(l)(i).

         "Intercompany Note" has the meaning specified in the North American
Originator Purchase Agreement.

         "Loan" means each "Loan" funded by the Transferor to the European
Purchaser pursuant to the European Loan Agreement.

         "Obligor" means a Person obligated to make payments pursuant to a
Contract.

         "Originator" means each Person from time to time party to the North
American Originator Purchase Agreement as a "Seller" thereunder.

         "Person" means an individual, partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or
any political subdivision or agency thereof.

         "Purchase" has the meaning specified in the North American Originator
Purchase Agreement.

         "Purchase Date" has the meaning specified in the North American
Originator Purchase Agreement.

                                       3

         "Purchase Price" has the meaning specified in the North American
Originator Purchase Agreement.

         "Purchase Price Credit" has the meaning specified in the North American
Originator Purchase Agreement.

         "Purchased Receivable" has the meaning specified in the North American
Originator Purchase Agreement.

         "Receivable" means the indebtedness and other obligations of any
Obligor resulting from the provision or sale of merchandise, goods or services
by an Originator, including, without limitation, the right to payment of any
interest or finance charges, late payment charges, delinquency charges,
extension or collection fees and all other obligations of such Obligor with
respect thereto.

         "Receivables Loan Agreement" means that certain Receivables Loan
Agreement, dated as of February 27, 2003, among the Borrower, the entities
parties thereto from time to time as "Conduit Lenders," "Committed Lenders" and
"Funding Agents" and JPMorgan Chase Bank, as "Administrative Agent", as amended,
restated or otherwise modified from time to time.

         "Receivables Property" has the meaning specified in the North American
Originator Purchase Agreement.

         "Records" has the meaning specified in the North American Originator
Purchase Agreement.

         "Related Security" has the meaning specified in the North American
Originator Purchase Agreement.

         "Settlement Date" means (i) the third Business Day of each calendar
week and (ii) following the occurrence of the "Termination Date" for all North
American Originators under and in accordance with the North American Originator
Purchase Agreement, each other "Settlement Date" under and as defined in the
Receivables Loan Agreement.

         "Termination Date" means the earlier of (i) the "Termination Date"
under and as defined in the Receivables Loan Agreement and, (ii) the date on
which the Termination Date is declared or automatically occurs pursuant to
Section 7.01 of this Agreement.

         "Termination Event" has the meaning specified in Section 7.01.

         "Transfer" means a transfer and assignment by the Transferor to the
Transferee of Transferred Assets pursuant to Article II.

         "Transfer Date" means each date on which a Transfer is made pursuant to
Article II, each of which shall occur on each Purchase Date and each Borrowing
Date.

         "Transfer Price" means, on any Transfer Date with respect to any
Transfer, an amount equal to the sum of (a) an amount (in Dollars) equal to the
face value of the Purchased

                                       4

Receivables and Receivables Property purchased by the Transferor pursuant to the
North American Originator Purchase Agreement on such date, (b) an amount (in the
relevant Local Currency) of the aggregate outstanding principal amount of the
Loans to be funded by the Transferor in such Local Currency to the European
Purchaser pursuant to the European Loan Agreement on such date and (c) an amount
(in Dollars) equal to any up-front or periodic premium paid by the Transferor
with respect to any Credit Default Swaps.

         "Transferee Material Adverse Effect" means a material adverse effect on
(i) the ability of the Transferee to perform its obligations under any
Transaction Document, (ii) the legality, validity or enforceability of this
Agreement or any other Transaction Document against the Transferee, (iii) the
Transferee's interest in the Transferred Assets generally or in any material
portion of the Transferred Assets, (iv) the collectibility of the Transferred
Assets generally or of any material portion of the Transferred Assets or (v) the
business, operations, properties, assets or financial condition of the
Transferee.

         "Transferred Assets" has the meaning specified in Section 2.01(a).

         "Transferred Receivable" means any Purchased Receivable which is
purchased by the Transferee pursuant to Article II.

         "TRW U.S." means TRW Automotive U.S. LLC, a Delaware limited liability
company.

         SECTION 1.02. Other Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP. All terms used in
Article 9 of the UCC in the State of New York, as in effect on the date hereof
and not specifically defined herein, are used herein as defined in such Article
9. Unless otherwise expressly indicated, all references herein to "Article,"
"Section," "Schedule" or "Exhibit" means articles and sections of, and schedules
and exhibits to, this Agreement. Headings are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision
hereof.

         SECTION 1.03. Incorporation of Defined Terms. Capitalized terms used
but not otherwise defined herein shall have the meanings ascribed to such terms
in the Receivables Loan Agreement.

                                   ARTICLE II
                         AMOUNTS AND TERMS OF TRANSFERS

         SECTION 2.01. Agreement to Transfer and Purchase.

         (a) Upon the terms and subject to the conditions hereof, the Transferor
hereby sells, assigns, transfers and conveys to the Transferee, without recourse
(except to the limited extent provided herein), all its respective present and
future right, title and interest in, to and under:

               (i) all Purchased Receivables, whether now owned and existing or
         hereafter acquired or arising;

                                       5

               (ii) all Receivables Property with respect thereto;

               (iii) all Loans, whether now owned and existing or hereafter
         acquired or arising;

               (iv) all European Purchaser Collateral with respect thereto;

               (v) all of the Transferor's rights (but none of its obligations)
         under the North American Originator Purchase Agreement, the European
         Loan Agreement, the European Purchaser Security Agreement and the
         Performance Guaranty (collectively, the "Assigned Agreements"),
         including, without limitation, (A) all monies due and to become due to
         Transferor under the Assigned Agreements, whether in respect of
         Purchase Price Credits, repurchase prices, principal, interest, fees,
         expenses, costs, indemnities, damages for the breach thereof or
         otherwise, (B) all security interests and property subject thereto from
         time to time purporting to secure payment of monies due or to become
         due under or pursuant to the Assigned Agreements, (C) all rights of the
         Transferor to receive proceeds of any insurance, indemnity, warranty or
         guaranty with respect to the Assigned Agreements and (D) all rights,
         remedies, powers, privileges and claims of Transferor in relation to
         the Assigned Agreements, in each case, whether arising pursuant to the
         terms of Assigned Agreements or as otherwise available at law or in
         equity; and

               (vi) all Proceeds of the foregoing

(the property described in the foregoing clauses (i) through (vi), together with
the security interests conveyed pursuant to Section 2.09 and Section 2.10 are
hereinafter collectively referred to as the "Transferred Assets"). Subject to
the terms and conditions set forth herein, the Transferee hereby agrees to
acquire the Transferred Assets from time to time until the Termination Date.

         (b) On the Closing Date and on each subsequent Transfer Date, all of
the Transferor's right, title and interest in, to and under (i) in the case of
the Closing Date, all then existing Transferred Assets and (ii) in the case of
each subsequent Transfer Date (but only so long as the Termination Date has not
occurred), all newly acquired or arising Transferred Assets shall be immediately
and automatically sold, assigned, transferred and conveyed to the Transferee
pursuant to paragraph (a) above without any further action by such Transferor or
any other Person.

         (c) It is the intention of the parties hereto that each Transfer made
hereunder shall be treated as a purchase by the Transferee and a sale by the
Transferor of the applicable Transferred Assets (not including the Credit
Default Swaps, which will be retained by the Transferor subject to the
Transferee's security interest therein pursuant to Section 2.09), which sales
are absolute and irrevocable and provide the Transferee with the full benefits
of ownership of the Transferred Assets. Each Transfer hereunder is made without
recourse to the Transferor; provided, however, that (i) the Transferor shall be
liable to the Transferee for all representations, warranties, covenants and
indemnities made by the Transferor pursuant to the terms of this

                                       6

Agreement and (ii) such Transfer does not constitute, and is not intended to
result in, an assumption by the Transferee or any assignee thereof of any
obligation of the Transferor or any other Person arising in connection with the
Transferred Assets or any other obligations of the Transferor.

         (d) In connection with the foregoing Transfers, the Transferor hereby
authorizes Transferee and its assigns to record and file from time to time, at
the Transferor's expense, a financing statement or statements with respect to
the Transferred Assets transferred or to be transferred by the Transferor
hereunder, in each case meeting the requirements of applicable Law in such
manner and in such jurisdictions as are necessary to perfect and protect the
interests of the Transferee created hereby under the UCC against all creditors
of the Transferor. In addition, the Transferor agrees that from time to time, at
its expense, it will promptly, upon request, execute and deliver all further
instruments and documents, and take all further actions that the Transferee or
the Administrative Agent may reasonably request, in order to perfect, protect or
more fully evidence the purchase by the Transferee of the Transferred Assets
with respect thereto. The Transferor agrees, at its own expense, on or prior to
the Closing Date, to (i) indicate clearly and unambiguously in its computer
files that all Transferred Assets have been or will be transferred to the
Transferee pursuant to this Agreement and (ii) note in its accounting records
that the Transferred Assets have been transferred to the Transferee.

         SECTION 2.02. Payment for the Transfers.

         (a) Upon the fulfillment of the conditions set forth in Article III,
the Transfer Price for the Transferred Assets shall be paid or provided for
(without duplication) by the Transferee in the manner provided in Section
2.02(b) below on the date of the initial Transfer and on each Transfer Date
thereafter until the Termination Date.

         (b) The Transfer Price shall be paid by the Transferee to the
Transferor on each Transfer Date (including the initial Transfer Date) as
follows:

               (i) by netting the amount of any Transfer Price Credit pursuant
         to Section 2.03 against such Transfer Price;

               (ii) to the extent available for such purpose, in cash from
         Collections released to the Transferee pursuant to the Receivables Loan
         Agreement on such Transfer Date;

               (iii) to the extent available for such purpose, in cash from the
         net proceeds of Loans made to the Transferee pursuant to the
         Receivables Loan Agreement; and

               (iv) to the extent available for such purpose, in cash from the
         proceeds of capital contributed, if any, in respect of an equity
         interest in the Transferee (in the form of cash equity).

         The portion of the Transfer Price to be paid in cash shall be payable
solely from funds available to the Transferee which are not otherwise required
to be applied or set-aside for the payment of any Borrower Obligations pursuant
to the Receivables Loan Agreement. If, by

                                       7

reason of the insufficiency of funds, any portion of the Transfer Price is not
paid in full by the Transferee on any Transfer Date, then the Transferee shall
have no obligation to make such payment (and the Transferor shall have no claim
for payment) unless (and then only to the extent) the Transferee subsequently
obtains funds which are available to make such payment as described above.

         SECTION 2.03. Purchase Price/Transfer Price Credit Adjustments. If on
any day the Transferor shall be entitled to a Purchase Price Credit under and in
accordance with the North American Originator Purchase Agreement, then, in such
event, the Transferee shall be entitled to a credit (a "Transfer Price Credit")
against the Transfer Price otherwise payable to the Transferor hereunder equal
to the full amount of the applicable Purchase Price Credit. If the aggregate
Transfer Price Credits exceeds the Transfer Price payable on any Purchase Date,
or if the Termination Date has occurred, then the Transferor agrees to pay the
remaining amount of such Transfer Price Credit to the Transferee in cash on or
prior to the first Settlement Date (or the Termination Date, if earlier) to
occur after such Purchase Date. Simultaneous with the granting or payment of any
Transfer Price Credit by the Transferor in respect of a Transferred Receivable
in connection with a Purchase Price Credit under and in accordance with the
North American Originator Purchase Agreement that gives rise to a reconveyance
by the Transferor of such Transferred Receivable to a "Seller" thereunder, such
Transferred Receivable and the Receivables Property with respect thereto shall
immediately and automatically be sold, assigned, transferred and reconveyed
(without recourse) by the Transferee to the Transferor without any further
action by the Transferee or any other person.

         SECTION 2.04. Payments and Computations, Etc. All amounts to be paid or
deposited by the Transferee hereunder shall be paid or deposited in accordance
with the terms hereof by no later than 11:00 A.M. (New York time) on the day
when due in immediately available funds to the account of the Transferor
designated from time to time by the Transferor or as otherwise directed by the
Transferor. All payments hereunder shall be made solely in Dollars unless
otherwise specified herein. All amounts to be paid or deposited by the
Transferor hereunder shall be paid or deposited in accordance with the terms
hereof by no later than 11:00 A.M. (New York time) on the day when due in
immediately available funds to the account of the Transferee designated from
time to time by the Transferee or as otherwise directed by the Transferee. In
the event that any payment owed by any Person hereunder becomes due on a day
which is not a Business Day, such payment shall be made on the next succeeding
Business Day and such extension of time shall be included in the computation of
such payment. The Transferor shall, to the extent permitted by law, pay interest
on any amount not paid or deposited by the Transferor when due, at an interest
rate equal to 2.0% per annum above the Base Rate, payable on demand. The
Transferee shall, to the extent permitted by law, pay interest on any amount not
paid or deposited by the Transferee when due hereunder at an interest rate equal
to 2.0% per annum above the Base Rate, payable on demand provided, however, that
any payments to be made by the Transferee in respect of the foregoing shall be
made solely from funds available to the Transferee which are not otherwise
required to be applied or set-aside for the payment of any Borrower Obligations
pursuant to the Receivables Loan Agreement, shall be non-recourse other than
with respect to such funds and shall not constitute a claim against the
Transferee to the extent that insufficient funds exist to make such payment. All
computations of interest payable hereunder shall be made on the basis of a year
of 365 (or 366, as applicable) days for the actual number of days (including the
first but excluding the last day) elapsed.

                                       8

         SECTION 2.05. Transfer of Records.

         (a) In connection with the Transfers hereunder, the Transferor hereby
sells, transfers, assigns and otherwise conveys to the Transferee all of such
Transferor's right and title to and interest in all Records, licenses and other
rights granted to the Transferor pursuant to Section 2.06 of the North American
Originator Purchase Agreement, without the need for any further documentation in
connection with any Transfer hereunder.

         (b) The Transferor shall take such action requested by the Transferee
and its assigns from time to time hereafter that may be necessary to ensure that
the Transferee and its assigns have an enforceable ownership interest in the
Records relating to the Transferred Assets purchased from the Transferor
hereunder and an enforceable security interest in the Records relating to the
Credit Default Swaps.

         SECTION 2.06. Characterization; Grant of Security Interest. If,
notwithstanding the intention of the parties expressed in Section 2.01(c), the
conveyance by the Transferor to the Transferee of Transferred Assets hereunder
shall be characterized as a secured loan and not a sale, this Agreement shall
constitute a security agreement under applicable law. The Transferor hereby
grants to the Transferee a security interest in all of the Transferor's right,
title and interest in, to and under all Transferred Assets, which security
interest shall secure all obligations of the Transferor hereunder. After any
Termination Event, the Transferee and its assignees shall have, in addition to
the rights and remedies which they may have under this Agreement, all other
rights and remedies against the Transferor provided to a secured creditor after
default under the UCC and other applicable Law, which rights and remedies shall
be cumulative.

         SECTION 2.07. No Repurchase. Except to the extent set forth in Section
2.03, the Transferor shall have no right or obligation under this Agreement, by
implication or otherwise, to repurchase from the Transferee any Transferred
Assets or to rescind or otherwise retroactively affect any Transfer of any
Transferred Assets after they are sold to the Transferee hereunder.

         SECTION 2.08. Certain Allocations. The Transferor and the Transferee
hereby agree that, unless otherwise required by applicable Law or unless an
Obligor designates that a payment be applied to a specific Receivable, all
Collections from an Obligor shall be applied to the oldest Receivables (whether
or not such Receivables are Transferred Receivables) of such Obligor.

         SECTION 2.09. Credit Default Swaps Indemnification; Grant of Security
Interest to Transferee. The Transferor hereby agrees to pay to the Transferee,
out of the Proceeds of the related Credit Default Swap Collateral, the amount of
all Credit Losses relating to the Special Obligors. The Transferor hereby grants
to the Transferee a security interest in all of the Transferor's right, title
and interest in, to and under all Credit Default Swaps now existing or hereafter
arising and any Credit Default Collateral Account, including, without
limitation, (A) all monies due and to become due to Transferor under the Credit
Default Swaps, whether in respect of ordinary payment date payments, termination
payments, fees, expenses, costs, indemnities, damages for the breach thereof or
otherwise, (B) all security interests and property

                                       9

subject thereto from time to time purporting to secure payment of monies due or
to become due under or pursuant to the Credit Default Swaps, (C) all rights of
the Transferor to receive proceeds of any indemnity, warranty or guaranty with
respect to the Credit Default Swaps, (D) all rights, remedies, powers,
privileges and claims of Transferor in relation to the Credit Default Swaps, in
each case, whether arising pursuant to the terms of Credit Default Swaps or as
otherwise available at law or in equity and (E) all Proceeds of the foregoing
(collectively, the "Credit Default Swap Collateral"), which security interest
shall secure all of the obligations of the Transferor under this Agreement,
including the obligations of the Transferor under this Section 2.09. The
Transferor agrees that Proceeds of any Credit Default Swap Collateral that are
not immediately payable hereunder to the Transferee in respect of Credit Losses
shall be held in a Credit Default Collateral Account in a manner satisfactory to
the Administrative Agent and in which the Administrative Agent has a perfected
security interest, free and clear of any Adverse Claims (other than Permitted
Adverse Claims).

         SECTION 2.10. Grant of Security Interest in the North American
Collection Accounts and the North American Concentration Account(s). The
Transferor hereby grants to the Administrative Agent a security interest in all
of the Transferor's right, title and interest in, to and under (i) each of the
North American Collection Accounts, each North American Concentration Account(s)
and each Credit Default Premium Reserve Account (each an "Account"), (ii) all
funds and other evidences of payment held therein and all certificates and
instruments, if any, from time to time representing or evidencing any such
Account or any funds and other evidences of payment held therein, (iii) all
investment property and other financial assets held in, or acquired with funds
from, any such Account and all certificates and instruments from time to time
representing or evidencing such investment property and financial assets, (iv)
all notes, certificates of deposit and other instruments from time to time
hereafter delivered in substitution for any such Account and (v) all interest,
dividends, cash, instruments, financial assets, investment property and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any such Account (collectively, the "Account
Collateral"), which security interest shall secure all of the Borrower
Obligations.

         SECTION 2.11. Credit Default Premium Reserve Account.

         (a) On or prior to the Closing Date, the Transferor shall instruct the
Administrative Agent to establish in the name of the Administrative Agent at an
Eligible Account Bank an account designated as the "Credit Default Premium
Reserve Account" (or words of similar import), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Secured Parties.

         (b) Each of the Transferor and the Transferee agrees that the
Administrative Agent shall have exclusive dominion and control over the Credit
Default Premium Reserve Account and all monies, instruments and other property
from time to time deposited in or credited to the Credit Default Premium Reserve
Account.

         (c) The Administrative Agent may invest funds on deposit in the Credit
Default Premium Reserve Account, reinvest proceeds of any such investments which
may mature or be sold, and invest interest or other income received from any
such investments, in each case in such Permitted Investments as the Transferor
may select (or, in the absence of any

                                       10

such selection by the Transferor, as the Administrative Agent may select in its
sole discretion); provided that each such Permitted Investment shall have a
maturity date no later than the next succeeding payment date for premiums
payable by the Transferor under any Credit Default Swap. Such proceeds, interest
or income which are not so invested or reinvested in Permitted Investments
shall, except as otherwise provided in this Agreement, be deposited and held in
the Credit Default Premium Reserve Account; provided that, prior to the
Termination Date, any interest or income in respect of such Permitted
Investments shall, at the direction of the Transferor be remitted to the
Transferor. Neither the Administrative Agent nor any of its Affiliates shall be
liable to the Transferee, the Transferor, any Secured Party or any other Person
for, or with respect to, any decline in value of amounts on deposit in the
Credit Default Premium Reserve Account. Permitted Investments from time to time
purchased and held pursuant to this Section 2.11 shall be referred to as
"Collateral Securities" and shall, for purposes of this Agreement and each other
Transaction Document, constitute part of the funds held in the Credit Default
Premium Reserve Account in amounts equal to their respective outstanding
principal amounts. Each such Permitted Investment shall be made in the name of
the Administrative Agent or its designee.

         (d) Prior to the occurrence of the Termination Event, the
Administrative Agent may, and at the direction of the Required Committed
Lenders, shall, at any time or from time to time after funds are either
deposited in the Credit Default Premium Reserve Account or invested in
Collateral Securities, after selling, if necessary, any Collateral Securities,
withdraw funds then held in the Credit Default Premium Reserve Account and apply
the same to pay the obligation of the Transferor to pay premium under any Credit
Default Swap.

         (e) On or following the occurrence of a Termination Event, the
Administrative Agent may, and at the direction of the Required Committed
Lenders, shall, at any time or from time to time after funds are either
deposited in the Credit Default Premium Reserve Account or invested in
Collateral Securities, after selling, if necessary, any Collateral Securities,
withdraw funds then held in the Credit Default Premium Reserve Account and apply
the same to the Borrower Obligations in accordance with the priority of payments
set forth in Section 2.07 of the Receivables Loan Agreement. The Transferor
agrees that Permitted Investments are of a type customarily sold on a recognized
market and, accordingly, no notice of sale of any Permitted Investments shall be
required. To the extent notice of sale of any Collateral Securities shall be
required by law, at least ten days' notice to the Transferor of the time and
place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. The Administrative Agent may adjourn
any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned.

         (f) The Administrative Agent shall have the sole right of withdrawal
with respect to the Credit Default Premium Reserve Account. Neither the
Transferor nor any Person claiming on behalf of or through the Transferor shall
have any right to withdraw any of the funds held in any the Credit Default
Premium Reserve Account.

         (g) The Administrative Agent shall exercise reasonable care in the
custody and preservation of any funds held in the Credit Default Premium Reserve
Account and shall be deemed to have exercised such care if such funds are
accorded treatment substantially equivalent

                                       11

to that which the Administrative Agent accords its own property, it being
understood that the Administrative Agent shall not have any responsibility for
taking any necessary steps to preserve rights against any parties with respect
to any such funds.

         (h) On the Final Payout Date, any funds remaining on deposit in the
Credit Default Premium Reserve Account shall be paid to the Transferor.

                                  ARTICLE III
                             CONDITIONS OF TRANSFERS

         SECTION 3.01. Conditions Precedent to Initial Transfer from the
Transferor. The Transferee's obligation to pay the Transfer Price for the
initial Transfer is subject to the conditions precedent that the Transferee
shall have received on or before the date of such Transfer all of the
instruments, documents, agreements and opinions specified in Schedule IV to the
Receivables Loan Agreement.

         SECTION 3.02. Conditions Precedent to All Transfers. The Transferee's
obligation to pay for any Transfer (including the initial Transfer) hereunder
shall be subject to the further conditions precedent that:

         (a) the Transferor shall have delivered to the Transferee such
information concerning the Transferred Assets as may reasonably be requested by
the Transferee; and

         (b) on the date of (and after giving effect to) such Transfer the
following statements shall be true (and the Transferor, by accepting the
Transfer Price for such Transfer, shall be deemed to have represented and
warranted that):

               (i) the warranties contained in Section 4.01 are correct on and
         as of the date of such Transfer as though made on and as of such date
         (except that the representations and warranties set forth in Sections
         4.01(e) and (f) shall be required to be true and correct only as of the
         Closing Date and each Reporting Date);

               (ii) no event has occurred and is continuing, or would result
         from such Purchase, that constitutes a Termination Event or an
         Involuntary Bankruptcy Event; and

               (iii) the Termination Date shall not have occurred.

Notwithstanding the foregoing, unless otherwise specified by the Transferee
(with a copy to the Administrative Agent) in a written notice to the Transferor,
each Transfer shall occur automatically on each day prior to the Termination
Date, with the result that the title to all Transferred Assets (other than the
Credit Default Swaps and the Account Collateral) shall vest in the Transferee
automatically on each Transfer Date and without any further action of any kind
by the Transferee or the Transferor, whether or not the conditions precedent
specified above were in fact satisfied on such date and notwithstanding any
failure to pay the Transfer Price for such Transferred Assets.

                                       12

         SECTION 3.03. Condition Precedent to the Transferor's Obligations.

         (a) The obligation of the Transferor to sell the Transferred Assets
(other than the Credit Default Swaps and the Account Collateral) existing on the
Closing Date to the Transferee is subject to the conditions precedent that the
Transferor shall have received on or before the date of such sale the following,
each (unless otherwise indicated) dated the day of such sale and in form and
substance reasonably satisfactory to the Transferor:

               (i) Secretary's Certificate. A certificate of the Secretary or an
         Assistant Secretary of the Transferee, dated the date hereof, and
         certifying (A) that attached thereto is a true and complete copy of the
         certificate of formation and limited liability company agreement of the
         Transferee, as in effect on the date hereof and at all times since a
         date prior to the date of the resolutions described in clause (B)
         below, (B) that attached thereto is a true and complete copy of the
         resolutions, in form and substance reasonably satisfactory to the
         Transferor, of the managers of the Transferee or committees thereof
         authorizing the execution, delivery and performance of this Agreement
         and the other Transaction Documents to which it is a party and the
         transactions contemplated hereby and thereby, and that such resolutions
         have not been amended, modified, revoked or rescinded and are in full
         force and effect, (C) that the certificate of formation of the
         Transferee has not been amended since the date of the last amendment
         thereto shown on the certificate of good standing (or its equivalent)
         furnished pursuant to subsection (iii) below and (D) as to the
         incumbency and specimen signature of each officer executing this
         Agreement and any other Transaction Documents or any other document
         delivered in connection herewith or therewith on behalf of the
         Transferee (on which certificates the Transferors may conclusively rely
         until such time as the Transferor shall receive from the Transferee a
         revised certificate with respect to the Transferee meeting the
         requirements of this subsection (i));

               (ii) Corporate Documents. The certificate of formation, including
         all amendments thereto, of the Transferee, certified as of a recent
         date by the Secretary of State of the State of Delaware;

               (iii) Good Standing Certificates. Certificates of compliance, of
         status or of good standing for the Transferee, dated as of a recent
         date, from the Secretary of State of the State of Delaware;

               (iv) Consents, Licenses, Approvals, Etc. A Certificate dated the
         date hereof of the President or a Vice President of the Transferee
         either (A) attaching copies of all consents, licenses and approvals
         required in connection with the execution, delivery and performance by
         the Transferee of this Agreement and the validity and enforceability of
         this Agreement against the Transferee, and such consents, licenses and
         approvals shall be in full force and effect or (B) stating that no such
         consents, licenses or approvals are so required; and

               (v) No Litigation. Confirmation that there is no pending or, to
         its knowledge after due inquiry, threatened action in writing or
         proceeding affecting

                                       13

         the Transferee before any Official Body that could reasonably be
         expected to have a material impairment of the ability of the Transferee
         to perform its obligations under the Transaction Documents.

         (b) The obligation of the Transferor to sell any Transferred Assets
(other than the Credit Default Swaps and the Account Collateral) on any date
(including on the Closing Date) shall be subject to the further condition
precedent that on such date no voluntary or involuntary case or proceeding is
pending against the Transferor or the Transferee under the United States
Bankruptcy Code.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.01. Representations and Warranties of the Transferor. The
Transferor represents and warrants as follows as of the date hereof, as of each
Transfer Date hereunder (both before and after giving effect to any Transfers on
such date) and as of each Reporting Date (except that the representations and
warranties set forth in paragraphs (e) and (f) below shall be made only as of
the date hereof and each Reporting Date):

         (a) The Transferor is a limited liability company duly formed, validly
existing and in good standing under the laws of Delaware, and is duly qualified
to do business, and is in good standing as a foreign limited liability company,
in every jurisdiction where the nature of its business requires it to be so
qualified, unless the failure to so qualify would not reasonably be expected to
have a Material Adverse Effect.

         (b) The execution, delivery and performance by the Transferor of the
Transaction Documents, including the Transferor's use of the proceeds of
Transfers, (i) are within the Transferor's limited liability company powers,
(ii) have been duly authorized by all necessary limited liability company
action, (iii) do not contravene (A) the Transferor's certificate of formation or
limited liability company agreement, (B) any law, rule or regulation applicable
to the Transferor, (C) any contractual restriction binding on or affecting the
Transferor or its property or (D) any order, writ, judgment, award, injunction
or decree binding on or affecting the Transferor or its property, where any such
contravention described in this clause (iii) could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect and (iv) do
not result in or require the creation of any Adverse Claim upon or with respect
to any of its properties (except Permitted Adverse Claims). Each of the
Transaction Documents has been duly executed and delivered by the Transferor.

         (c) No authorization or approval or other action by, and no notice to
or filing with, any Official Body is required for the due execution, delivery
and performance by the Transferor of the Transaction Documents to which it is a
party or any other document to be delivered by it thereunder, except for (i) the
filing of the financing statements referred to in Schedule IV of the Receivables
Loan Agreement and (ii) such as have been obtained or made and are in full force
and effect.

         (d) Each of the Transaction Documents to which the Transferor is a
party constitutes the legal, valid and binding obligation of the Transferor
enforceable against the

                                       14

Transferor in accordance with its terms, subject to (i) the effects of
bankruptcy, insolvency, moratorium, reorganization or other similar laws
affecting creditors' rights generally, (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law) and (iii) implied covenants of good faith and fair dealing.

         (e) Since the Closing Date there has been no Material Adverse Effect.

         (f) As of the initial Transfer Date, there are no actions, suits or
proceedings at law or in equity or by or before any Official Body or in
arbitration now pending or, to the actual knowledge of a Responsible Officer of
the Transferor, threatened in writing against or affecting the Transferor or any
of its business, property or rights. As of each Reporting Date, there are no
actions, suits or proceedings at law or in equity or by or before any Official
Body or in arbitration, or, to the actual knowledge of a Responsible Officer of
the Transferor, threatened in writing against or affecting the Transferor or any
of its business, property or rights as to which in either case, an adverse
determination is reasonably probable and which could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect. The
Transferor is not in default in any material respect of any order of any
Official Body.

         (g) No proceeds of any Transfer will be used to purchase or carry, or
to extend credit to others for the purpose of purchasing or carrying, "margin
stock" within the meaning of Regulation T, U or X promulgated by the Board of
Governors of the Federal Reserve System from time to time.

         (h) Immediately prior to each Transfer hereunder, the Transferor will
be the owner of the Transferred Assets which are the subject of such Transfer,
free and clear of any Adverse Claim (other than Permitted Adverse Claims). Upon
each Transfer, the Transferee shall have acquired a valid and perfected first
priority ownership interest in the Transferred Assets which are the subject of
such Transfer perfected under Delaware or Irish law, as applicable, in each case
free and clear of any Adverse Claim (other than Permitted Adverse Claims). At
the time of any Transfer hereunder the Transferee will have a valid and
perfected security interest in the Credit Default Swap Collateral and the
Administrative Agent will have a valid and perfected security interest in the
Account Collateral, in each case free and clear of any Adverse Claim (other than
Permitted Adverse Claims). No effective financing statement or other instrument
similar in effect, is filed in any recording office listing the Transferor as
debtor, covering any Transferred Assets, or any interest therein, except (i)
such as may be filed in accordance with the North American Originator Purchase
Agreement, the European Loan Agreement or the European Purchaser Security
Agreement and (ii) such as may be filed in favor of the Transferee in accordance
with this Agreement.

         (i) All information, exhibits, documents, books, records and reports
furnished in writing at any time by or on behalf of the Transferor to the
Transferee, the Administrative Agent, any Funding Agent or any Lender in
connection with the Transaction Documents is accurate in all material respects
as of its date or (except as otherwise disclosed to the Transferee, the
Administrative Agent, such Funding Agent or such Lender, as the case may be, at
such time) as of the date so furnished.

                                       15

         (j) The Transferor is located in the State of Delaware for the purposes
of Section 9-307 of the UCC as in effect in the State of New York.

         (k) Since its formation, the Transferor has not used any corporate
name, tradename or doing-business-as name other than the name in which it has
executed this Agreement.

         (l) The Transferor was formed on February 20, 2003 and the Transferor
did not engage in any business activities prior to the date of this Agreement.
The Transferor has no Subsidiaries other than the Borrower. TRW Automotive
Acquisition Corp., a Delaware corporation, directly owns 100% of the membership
interest of the Transferor, free and clear of any Adverse Claims.

         (m) The Transferor is not an "investment company" as defined by, or
subject to regulation under the Investment Company Act of 1940, as amended.

         (n) (i) The fair value of the assets of the Transferor, at a fair
valuation, exceed the debts and liabilities, direct, subordinated, contingent or
otherwise, of the Transferor; (ii) the present fair saleable value of the
property of the Transferor is greater than the amount that will be required to
pay the probable liability of the Transferor on its debts and other liabilities,
direct, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (iii) the Transferor will be able to
pay its debts and liabilities, direct, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (iv) the Transferor
will not have unreasonably small capital with which to conduct the businesses in
which it is engaged as such business is now conducted and is proposed to be
conducted following the Closing Date. The Transferor does not intend to, and
does not believe that it will, incur debts beyond its ability to pay such debts
as they mature, taking into account the timing and amounts of cash to be
received by it and the timing and amounts of cash to be payable on or in respect
of its Indebtedness.

         (o) All Transferred Assets acquired by the Transferor from the North
American Originators have been purchased by the Transferor pursuant to and in
accordance with the North American Purchase Agreement in an amount which
constitutes fair consideration and reasonably equivalent value. Each Purchase
under the North American Originator Purchase Agreement shall not have been made
for or on account of an antecedent debt owed by the Transferor to any Originator
and no such purchase is or may be voidable or subject to avoidance under any
section of the United States Bankruptcy Code or any other Law, whether foreign
or domestic. All Loans (if any) have been made in accordance with the terms of
the European Loan Agreement.

         (p) No Adverse Claim exists in favor of the Pension Benefit Guaranty
Corporation on any of the Transferred Assets.

         (q) No event has occurred and is continuing and no condition exists
which constitutes a Termination Event or Incipient Termination Event.

         SECTION 4.02. Representations and Warranties of the Transferee. The
Transferee represents and warrants as follows:

                                       16

         (a) The Transferee is a limited liability company duly formed, validly
existing and in good standing under the laws of the jurisdiction of its
formation and is duly qualified in good standing as a foreign limited liability
company in each jurisdiction where the failure to be so qualified, individually
or in the aggregate, could not reasonably be expected to have a Transferee
Material Adverse Effect.

         (b) The execution, delivery and performance by the Transferee of this
Agreement is within the Transferee's limited liability company powers, has been
duly authorized by all necessary limited liability company action, do not
contravene (i) the Transferee's articles of organization or limited liability
company agreement or (ii) applicable law or any contractual restriction binding
on or affecting the Transferee, and do not result in or require the creation of
any lien (other than pursuant hereto) upon or with respect to any of its
properties, except, in the case of clause (ii) to the extent that such
contravention could not reasonably be expected to result in a Transferee
Material Adverse Effect.

         (c) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by the Transferee of this Agreement,
except (i) such as have been obtained or made and are in full force and effect
and (ii) for such authorizations, approvals or actions the failure of which to
obtain could not reasonably be expected to result in a Transferee Material
Adverse Effect.

         (d) This Agreement, when executed and delivered by the Transferee, will
be the legal, valid and binding obligations of the Transferee, enforceable in
accordance with its terms, subject to (i) the effects of bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors' rights
generally, (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (iii)
implied covenants of good faith and fair dealing.

                                   ARTICLE V
                                    COVENANTS

         SECTION 5.01. Covenants of the Transferor. From the date hereof until
the Final Payout Date, the Transferor covenants and agrees as follows:

         (a) Compliance with Laws, Etc. The Transferor will comply in all
respects with all applicable Laws and preserve and maintain its corporate
existence, rights, franchises, qualifications and privileges except to the
extent that the failure so to comply with such Laws or the failure so to
preserve and maintain such rights, franchises, qualifications, and privileges
would not reasonably be expected to have a Material Adverse Effect.

         (b) Offices. The Transferor will keep the office where it keeps its
records concerning the Transferred Assets at (i) the address of the Transferor
specified on Schedule I as of the date of this Agreement or (ii) upon 30 days'
prior written notice to the Transferee, at any other locations in jurisdictions
where all actions reasonably requested by the Transferee to protect and perfect
the Transferee's interest in the Transferred Assets have been taken and
completed.

                                       17

         (c) Performance and Compliance with Contracts and Applicable
Agreements. The Transferor will, at its expense, timely and fully perform and
comply in all material respects with all provisions, covenants and other
promises (if any) required to be observed by it under the Contracts and
Applicable Agreements related to the Transferred Assets.

         (d) Sales, Liens, Etc. The Transferor will not sell, assign (by
operation of law or otherwise) or otherwise dispose of, or create or suffer to
exist any Adverse Claim (except for Permitted Adverse Claims) upon or with
respect to, any Transferred Assets, or assign any right to receive income in
respect thereof. Nothing in this Section 5.01(d) shall prevent the Transferor
from making Restricted Payments otherwise permitted under Section 5.01(p).

         (e) Extension or Amendment of Receivables and Contracts. The Transferor
will not extend, amend or otherwise modify the terms of any Transferred Asset.

         (f) Change in Business. The Transferor will not make any change in the
character of its business.

         (g) Change in Payment Instructions. The Transferor will not make any
change in its instructions to Obligors or the European Purchaser regarding
payments to be made in respect of the Transferred Assets.

         (h) Deposits to Collection Accounts and Concentration Account. The
Transferor will instruct, or cause to be instructed, all Obligors and the
European Purchaser to remit all their payments in respect of the Transferred
Assets into a Collection Account or a Concentration Account (either directly by
wire transfer or electronic funds transfer or by check mailed to a lock-box
maintained by the relevant Collection Account Bank). If the Transferor shall
receive any Collections directly, the Transferor shall promptly (and in any
event within one Business Day) deposit the same into a Collection Account or a
Concentration Account. The Transferor will use its reasonable best efforts to
prevent funds which do not constitute Collections of Transferred Assets from
being deposited into any Collection Account or Concentration Account.

         (i) Audits. The Transferor will, from time to time during regular
business hours as requested by the Transferee or its assigns upon reasonable
prior notice and at the Transferor's expense, permit the Transferee, or its
agents, representatives or assigns (including independent public accountants),
(i) to conduct periodic audits of the Transferred Assets and the related books
and records and collections systems of the Transferor, (ii) to examine and make
copies of and abstracts from all books, records and documents (including,
without limitation, computer tapes and disks) in the possession or under the
control of the Transferor relating to the Transferred Assets, and (iii) to visit
the offices and properties of the Transferor for the purpose of examining such
materials described in clause (ii) above, and to discuss matters relating to the
Transferred Assets or the Transferor's performance under the Transaction
Documents or under the Contracts with any of the officers or employees of the
Transferor having knowledge of such matters; provided that, so long as no
Termination Event or Involuntary Bankruptcy Event has occurred and is continuing
and no material deficiencies have been identified in the most recent
Accountant's Letter delivered pursuant to Section 5.02(b) of the Receivables
Loan Agreement,

                                       18

the Transferor shall be required to pay the expenses of no more than two audits
conducted by the Transferee or its assigns during any single calendar year.

         (j) Further Assurances; Change in Name or Jurisdiction of Origination,
etc.

               (i) The Transferor agrees from time to time, at its expense,
         promptly to execute and deliver all further instruments and documents,
         and to take all further actions, that may be necessary or desirable, or
         that the Transferee or its assignee may reasonably request, to perfect,
         protect or more fully evidence the Transferee's ownership of the
         Transferred Assets (other than the Credit Default Swaps and the Account
         Collateral), the Transferee's security interest in the Credit Default
         Swap Collateral or the Administrative Agent's security interest in the
         Account Collateral, or to enable the Transferee or its assignee to
         exercise and enforce its respective rights and remedies under this
         Agreement. Without limiting the foregoing, the Transferor will, upon
         the request of the Transferee or its assignee, (A) execute and file
         such financing or continuation statements, or amendments thereto, and
         such other instruments and documents, that may be necessary or
         desirable or that the Transferee or its assignee may reasonably request
         to perfect, protect or evidence the Transferee's ownership of the
         Transferred Assets (other than the Credit Default Swaps and the Account
         Collateral), the Transferee's security interest in the Credit Default
         Swap Collateral or the Administrative Agent's security interest in the
         Account Collateral; and (B) following the occurrence of a Termination
         Event, deliver to the Transferee copies of the invoices evidencing the
         Purchased Receivables (which delivery may be made in electronic form).

               (ii) The Transferor authorizes the Transferee or its assignee to
         file financing or continuation statements, and amendments thereto and
         assignments thereof, relating to the Transferred Assets without the
         signature of the Transferor. A photocopy or other reproduction of this
         Agreement shall be sufficient as a financing statement where permitted
         by law.

               (iii) The Transferor shall not change its jurisdiction of
         organization from the State of Delaware.

               (iv) The Transferor will not change its name, identity or
         corporate structure or tax identification number or the office at which
         any records relating to the Transferred Assets are maintained unless
         the Transferee shall have received at least thirty (30) days advance
         written notice of such change or relocation and all action by the
         Transferor necessary or appropriate to perfect or maintain the
         perfection of the Transferee's interest in the Transferred Assets
         (including, without limitation, the filing of all financing statements
         and the taking of such other action as the Transferee may request in
         connection with such change or relocation) shall have been duly taken.

         (k) Reporting Requirements. The Transferor will cause to be provided to
the Transferee, the Administrative Agent and each Funding Agent the following:

                                       19

               (i) Termination Event and Incipient Termination Event. As soon as
         possible and in any event within one Business Day after a Responsible
         Officer of the Transferor obtains actual knowledge of the occurrence of
         each Termination Event or Incipient Termination Event, a statement of a
         Financial Officer of the Transferor setting forth details of such
         Termination Event or Incipient Termination Event and the action that
         the Transferor has taken and proposes to take with respect thereto;

               (ii) Change in Name, Etc. At least thirty (30) days prior to any
         change in the name, corporate structure or tax identification number of
         any Transaction Party, a notice setting forth the new name,
         jurisdiction of organization, corporate structure or tax identification
         number, as applicable, and the effective date thereof;

               (iii) Termination or Suspension of Sale by Originators. As soon
         as possible and in any event within one Business Day of occurrence
         thereof, notice that any Originator has stopped selling or contributing
         to the Transferor or the European Purchaser (as applicable) all newly
         arising Receivables originated by such Originator pursuant to the
         Originator Purchase Agreement to which such Originator is a party;

               (iv) Notices under Transaction Documents. Promptly after receipt
         thereof, copies of all notices received by the Transferor from any
         Originator, the European Purchaser or any counterparty under a Credit
         Default Swap in connection with any Applicable Agreements;

               (i) Material Adverse Effect. Promptly after a Responsible Officer
         of the Transferor obtains actual knowledge thereof, notice of (i) the
         filing or commencement of, any action, suit or proceeding, whether at
         law or equity, by or before any Official Body or in arbitration against
         the Transferor or (ii) other event or condition that is not a matter of
         general public knowledge that has had, or could reasonably be expected
         to have, a Material Adverse Effect; and

               (v) Other Information. Such other information respecting the
         Transferred Assets or the condition or operations, financial or
         otherwise, of any Transaction Party (including, without limitation,
         information regarding any pending or threatened litigation) as the
         Administrative Agent or any Funding Agent may from time to time
         reasonably request.

         (l) Separateness.

               (i) The Transferor will at all times have at least one "manager"
         (as defined in the Transferor's limited liability agreement as in
         effect on the date hereof) who will be (x) a natural person and (y) a
         Person who (A) shall not have been at the time of such Person's
         appointment, and may not have been at any time during the preceding
         five years and shall not be as long as such Person is a manager of the
         Transferor (i) a director, member, officer, manager, partner,

                                       20

         shareholder or employee of the Performance Guarantor or any Originator
         or any of their respective directors, members, partners, Subsidiaries,
         shareholders or Affiliates other than the Transferor or the Transferee
         (collectively, the "Independent Parties"), (ii) a supplier to any of
         the Independent Parties, (iii) a person controlling or under common
         control with any directors, members, partners, shareholder or supplier
         of any of the Independent Parties or (iv) a member of the immediate
         family of any director, member, partner, shareholder, officer, manager,
         employee or supplier of the Independent Parties, (B) has prior
         experience as an independent director for a corporation whose charter
         documents required the unanimous consent of all independent directors
         thereof before such corporation could consent to the institution of
         bankruptcy or insolvency proceedings against it or could file a
         petition seeking relief under any applicable federal or state law
         relating to bankruptcy and (C) has at least three years of employment
         experience with one or more entities that provide, in the ordinary
         course of their respective businesses, advisory, management or
         placement services to issuers of securitization or structured finance
         instruments, agreements or securities.

               (ii) The Transferor will at all times have sufficient personnel
         to run its business and operations and will compensate its employees
         (if any) from its own available funds for services provided to it. In
         the event employees of the Transferor participate in pension, insurance
         and other benefit plans of any Independent Party, the Transferor will
         on a current basis reimburse such Independent Party for its pro rata
         share of the costs thereof.

               (iii) The Transferor will pay its own liabilities out of its own
         funds and assets.

               (iv) The Transferor will maintain a separate office (a) which if
         leased from any Independent Party will be on terms no more or less
         favorable to the Transferor than could be obtained in a comparable
         arm's-length transaction with an unaffiliated Person and (b) which will
         be conspicuously identified as the Transferor's office so it can be
         easily located by outsiders. The Transferor will use its own electronic
         mail address, stationery, invoices, checks and telephone and facsimile
         numbers.

               (v) The Transferor will hold itself out and identify itself as a
         separate and distinct entity under its own name and not as a division
         or part of any other Person.

               (vi) The Transferor will promptly correct any misunderstanding of
         which it has knowledge regarding its separate existence and identity.

               (vii) The Transferor will prepare and maintain its own full and
         complete books, records and financial statements separate from any
         other Person. The Transferor's financial statements will comply with
         generally accepted accounting principles.

                                       21

               (viii) The Transferor will maintain a bank account in its name.

               (ix) All business transactions entered into by the Transferor
         with any of its Affiliates will be on terms that are intrinsically fair
         and not more or less favorable to the Transferor, as the case may be,
         than terms and conditions available at the time to the Transferor for
         comparable arm's-length transactions with unaffiliated Persons, it
         being understood that the Transaction Documents satisfy the provisions
         of this paragraph (ix).

               (x) The Transferor will not assume or guarantee or become
         obligated for debts of any Independent Party and no Independent Party
         will assume or guarantee or become obligated for the debts of the
         Transferor, other than as provided in the Transaction Documents. The
         Transferor will not hold its credit out as being available to satisfy
         the obligations of any other Persons.

               (xi) The Transferor will not acquire obligations or securities of
         any Independent Party. The Transferor will not make loans, advances or
         otherwise extend credit to any Independent Party except as expressly
         contemplated by the North American Originator Purchase Agreement and
         the European Loan Agreement.

               (xii) Except to the extent provided in the Transaction Documents,
         the Transferor will not commingle any of its money or other assets with
         the money or assets of any other entity. The Transferor will ensure
         that its funds will be clearly traceable at each step in any financial
         transaction.

               (xiii) The Transferor will engage in transactions and conduct all
         other business activities solely in its own name and through its own
         authorized officers and agents and will present itself to the public as
         a separate company. Except to the extent provided in the Transaction
         Documents, no Independent Party will be appointed agent of the
         Transferor.

               (xiv) The Transferor will not engage in any transaction with any
         of its Affiliates involving any intent to hinder, delay or defraud any
         Person.

               (xv) The Transferor will observe all limited liability company
         formalities.

               (xvi) The Transferor will take, or refrain from taking, as the
         case may be, all other actions that are necessary to be taken or not to
         be taken in order to (x) ensure that the assumptions and factual
         recitations set forth in the Specified Bankruptcy Opinion Provisions
         remain true and correct with respect to the Transferor and (y) comply
         with those procedures described in such provisions which are applicable
         to the Transferor.

         (m) Assigned Agreements. Except with the consent of the Transferee and
as permitted under Section 11.16 of the Receivables Loan Agreement and Section
5.01(w) of this Agreement, the Transferor will not terminate, amend, waive or
modify, or consent to any

                                       22

termination, amendment, waiver or modification of, any provision of any
Applicable Agreement or grant any other consent or other indulgence under any
Applicable Agreement, in each case without the prior written consent of the
Transferee. The Transferor will perform all of its obligations under the
Applicable Agreements and will enforce the Applicable Agreements in accordance
with their respective terms. The Transferor will take all actions to perfect and
enforce its rights and interests (and the rights and interests of the Transferee
and its assigns, as assignees of Transferor) under the Applicable Agreements as
the Transferee may from time to time reasonably request, including, without
limitation, making claims to which it may be entitled under any indemnity,
reimbursement or similar provision contained in any Applicable Agreement.

         (n) Nature of Business; No Subsidiaries. The Transferor will not engage
in any business other than the purchase of Receivables from the North American
Originators, the funding of Loans to the European Purchaser and the other
transactions contemplated by this Agreement and the Applicable Agreements. The
Transferor will not create or form any Subsidiary other than the Transferee.

         (o) Mergers, Etc. The Transferor will not merge with or into or
consolidate with or into, or convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions), all or
substantially all of its assets (whether now owned or hereafter acquired) to, or
acquire all or substantially all of the assets or capital stock or other
ownership interest of, or enter into any joint venture or partnership agreement
with, any Person, other than as contemplated by this Agreement, the European
Loan Agreement and the North American Originator Purchase Agreement.

         (p) Distributions, Etc. The Transferor will not (i) declare or make any
dividend payment or other distribution of assets, properties, cash, rights,
obligations or securities on account of any membership interests or other equity
interests in the Transferor, or return any capital to its members or other
equity holders as such, or purchase, retire, defease, redeem or otherwise
acquire for value or make any payment in respect of any membership interests or
other equity of the Transferor or any warrants, rights or options to acquire any
membership interests or other equity of the Transferor, now or hereafter
outstanding, (ii) prepay, purchase or redeem any Indebtedness (other than
Indebtedness hereunder), (iii) lend or advance any funds or (iv) repay any loans
or advances to, for or from any of its Affiliates (the amounts described in
clauses (i) through (iv) being referred to as "Restricted Payments"); provided,
however, that, prior to the Termination Date, the Transferor may declare and pay
cash dividends to its members, may make payments in respect of the Intercompany
Note and may make purchases under the North American Originator Purchase
Agreement and Loans under the European Loan Agreement so long as (i) no
Termination Event or Involuntary Bankruptcy Event shall then exist or would
occur as a result thereof and (ii) any such dividends are in compliance with all
applicable law including the Delaware Limited Liability Company Act, and have
been approved by all necessary and appropriate limited liability company action
of the Transferor and its board of directors.

         (q) Indebtedness. The Transferor will not create, incur, guarantee,
assume or suffer to exist any Indebtedness or other liabilities, whether direct
or contingent, other than (i) as a result of the endorsement of negotiable
instruments for deposit or collection or similar

                                       23

transactions in the ordinary course of business, (ii) the incurrence of
obligations under this Agreement, (iii) the incurrence of other obligations
pursuant to, and, as expressly contemplated in, the Transaction Documents, and
(iv) the incurrence of operating expenses in the ordinary course of business.

         (r) Limited Liability Company Agreement. The Transferor will not amend,
modify or delete (or permit any amendment, modification or deletion of) (i) the
definition of "Independent Director" or "Special Member" in its limited
liability company agreement as in effect on the date hereof or (ii) any other
provision of its limited liability company agreement as in effect on the date
hereof if, pursuant to the terms thereof, such amendment, modification or
deletion requires the consent of the Independent Director or Special Member
thereunder.

         (s) Taxes. The Transferor will file all tax returns and reports
required by law to be filed by it and will promptly pay all taxes and
governmental charges at any time owing, except such as are being contested in
good faith by appropriate proceedings and for which appropriate reserves have
been established. The Transferor will pay when due any taxes payable in
connection with the Transferred Assets, exclusive of taxes on or measured by
income or gross receipts of the Transferee or any of its assignees.

         (t) Treatment as Sales. Except as otherwise required by GAAP, the
Transferor shall not account for or treat (whether in financial statements or
otherwise) the transactions contemplated by this Agreement in any manner other
than as a sale and absolute conveyance of the Transferred Assets (other than the
Credit Default Swaps and the Account Collateral) by the Transferor to the
Transferee (except that, in accordance with applicable tax principles, each
Transfer may be ignored for tax reporting purposes).

         (u) Investments. Except as provided in the Transaction Documents, the
Transferor will not make any loans to, advances to, investments in or otherwise
acquire any capital stock or equity security of, or any equity interest in, any
other Person, except as contemplated by the North American Originator Purchase
Agreement or the European Loan Agreement.

         (v) Hedge Counterparties. If at any time a Hedge Counterparty ceases to
be an Eligible Counterparty, the Transferor shall replace such Hedge
Counterparty with an Eligible Counterparty under each Credit Default Swap or
deposit cash collateral into a Credit Default Collateral Account in a manner and
in an amount satisfactory to the Transferee and each Committed Lender by no
later than the earlier of (i) the 30th day following the date on which such
Hedge Counterparty ceases to be an Eligible Counterparty or (ii) the fifth
Business Day after such date in the event that such Hedge Counterparty's
short-term debt rating is withdrawn by any Rating Agency or is downgraded below
A-2 by S&P or below P-2 by Moody's. Each such replacement will be made pursuant
to documentation substantially in the form of Exhibit D to the Receivables Loan
Agreement (or such other documentation in form and substance reasonably
satisfactory to the Required Committed Lenders; provided that if the only
material differences between the documentation set forth in Exhibit D to the
Receivables Loan Agreement and the documentation proposed to be used for such
credit default swap transaction arise out of changes to the standard form credit
default swap documentation published by the International Swap and Derivatives
Association, Inc. (or any successor thereto), then the

                                       24

Transferor may use such proposed documentation without the consent of any party
other than the Administrative Agent).

         (w) Amendments to Credit Default Swaps. The Transferor will not
supplement, amend, extend, replace, terminate or otherwise modify any Credit
Default Swap without the prior written consent of the Transferee, the
Administrative Agent, each Funding Agent and each Committed Lender, except that
no such consent will be required to (A) enter into an amendment solely to reduce
the Notional Amount under a Credit Default Swap or (B) extend or terminate a
Credit Default Swap; provided that prior to (and, in any event, at least five
Business Days before) reducing the Notional Amount or terminating such Credit
Default Swap, either (1) the Collection Agent provides the Transferee, the
Administrative Agent, each Funding Agent and each Committed Lender with a
certificate (signed by a Responsible Officer of the Collection Agent) which
attaches a Weekly Report or Daily Report giving pro forma effect to any
reduction in the Net Receivables Balance resulting from the reduction or
termination of such Credit Default Swap and which certifies that, after giving
pro forma effect to the reduction or termination of such Credit Default Swap,
the Percentage Factor does not exceed the Maximum Percentage Factor; as
determined using the most recent Portfolio Report delivered under the Servicing
Agreement or (2) the Transferor has posted cash collateral in a Credit Default
Collateral Account with respect to its obligations under Section 2.09 in a
manner and in an amount not less than the Notional Amount of such Credit Default
Swap that is being terminated or the amount of the reduction of the Notional
Amount thereof as the case may be or if less than such amount, in an amount that
is satisfactory to each Committed Lender.

         (x) The Transferor shall on each day, either (i) have prepaid the
accrued premium that will be payable by the Transferor under each Credit Default
Swap for the following six month period commencing on such day (such accrued
premium for such six month period, the "Aggregate Future Premium") or, (ii) to
the extent the Transferor does not make such a prepayment on such day, remit to
the Credit Default Premium Reserve Account on such day funds in an amount
sufficient to make the aggregate amount of funds held in the Credit Default
Premium Reserve Account equal to the portion of the Aggregate Future Premium
that has not been prepaid.

                                   ARTICLE VI
                          ADMINISTRATION AND COLLECTION

         SECTION 6.01. Designation of Collection Agent. Consistent with the
Transferee's ownership interest in the Transferred Assets (other than the Credit
Default Swaps and the Account Collateral), the Transferor acknowledges and
agrees that the servicing, administration and collection of the Transferred
Assets shall be the responsibility and right of the Transferee and its assigns.
The Transferee has advised the Transferor that (a) the Transferee, in its
capacity as Borrower under the Receivables Loan Agreement, has granted a
security interest in the Transferred Assets to the Administrative Agent, for the
benefit of the Secured Parties under the Receivables Loan Agreement and (b) the
servicing, administration and collection of the Transferred Assets shall be
conducted by the Person designated as the Collection Agent pursuant to the
Servicing Agreement from time to time. Pursuant to the Servicing Agreement, (i)
the Borrower has requested TRW U.S. to, and TRW U.S. has agreed that it will,
act as the initial

                                       25

Collection Agent and (ii) TRW U.S. has appointed each Originator to act as its
Sub-Collection Agent with respect to the Receivables originated by such
Originator and each Originator has accepted such appointment.

         SECTION 6.02. Certain Rights of the Transferee.

         (a) The Transferee may, at any time, give notice of ownership and/or
direct the Obligors of Transferred Receivables and any Person obligated on any
Related Security with respect to such Transferred Receivables, or any of them,
that payment of all amounts payable under any Transferred Receivable shall be
made directly to the Transferee or its designee. The Transferor hereby transfers
to the Transferee (and its assigns and designees) the exclusive ownership and
control of the Collection Accounts and the Concentration Account and the
Transferor shall take any further action that the Transferee may reasonably
request to effect or further evidence such transfer.

         (b) At any time following the occurrence and during the continuation of
a Termination Event:

               (i) The Transferor shall, upon the Transferee's request and at
         the Transferor's expense, give notice of the Transferee's ownership to
         each Person obligated on the Transferred Assets and direct that
         payments of all amounts payable under the Transferred Assets be made
         directly to the Transferee or its designee; provided that no such
         notice shall be required if the only Termination Event(s) that shall
         have occurred are those set forth in 7.01(h), (k), (l) or (m) of the
         Receivables Loan Agreement.

               (ii) At the Transferee's request and at the expense of the
         Transferor, the Transferor shall (A) assemble all of the documents,
         instruments and other records (including, without limitation, computer
         tapes and disks) that evidence or relate to the Transferred Assets, or
         that are otherwise necessary or desirable to collect the Transferred
         Assets, and shall make the same available to the Transferee or its
         designee at a place selected by the Transferee or its designee, and (B)
         segregate all cash, checks and other instruments received by it from
         time to time constituting Collections of Transferred Assets in a manner
         acceptable to the Transferee and, promptly upon receipt, remit all such
         cash, checks and instruments, duly indorsed or with duly executed
         instruments of transfer, to the Transferee or its designee. The
         Transferee shall also have the right to make copies of all such
         documents, instruments and other records at any time.

         (c) The Transferor authorizes each of the Transferee and the
Administrative Agent, and hereby irrevocably appoints each of the Transferee and
the Administrative Agent as its attorney-in-fact coupled with an interest, with
full power of substitution and with full authority in place of the Transferor,
following the occurrence and during the continuation of a Termination Event or
Involuntary Bankruptcy Event, to take any and all steps in the Transferor's name
and on behalf of the Transferor, that are necessary or desirable, in the
determination of the Transferee or the Administrative Agent (as applicable), to
collect amounts due under the Transferred Assets, including, without limitation,
(i) endorsing the Transferor's name on checks

                                       26

and other instruments representing Collections of Transferred Assets and
enforcing the Transferred Assets and (ii) enforcing the Transferred Assets
including to ask, demand, collect, sue for, recover, compromise, receive and
give acceptance and receipts for moneys due and to become due under or in
connection with therewith and to file any claims or take any action or institute
any proceedings that the Transferee or the Administrative Agent (or such
designee) may deem to be necessary or desirable for the collection thereof or to
enforce compliance with the terms and conditions of, or to perform any
obligations or enforce any rights of the Transferor in respect of, the
Transferred Assets; provided that no enforcement action of the type described in
this clause (ii) may be taken by the Transferee or the Administrative Agent if
no Involuntary Bankruptcy Event then exists and the only Termination Events that
shall have occurred are those "Termination Events" set forth in 7.01(h), (k),
(l) or (m) of the Receivables Loan Agreement.

         SECTION 6.03. Rights and Remedies.

         (a) If the Transferor fails to perform any of its obligations under
this Agreement, the Transferee may (but shall not be required to) cause
performance of, such obligation, and the costs and expenses of the Transferee
reasonably incurred in connection therewith shall be payable by the Transferor.

         (b) The Transferor shall cooperate with the Collection Agent in
collecting amounts due from Obligors, the European Purchaser and any other
Persons in respect of the Transferred Assets.

                                  ARTICLE VII
                              EVENTS OF TERMINATION

         SECTION 7.01. Events of Termination. If any of the following events
(each a "Termination Event") shall occur and be continuing:

         (a) the Transferor shall fail to make any payment or deposit required
to be made by it hereunder or under any of the Transaction Documents when due
hereunder or thereunder and such failure remains unremedied for one Business
Day; or

         (b) any representation, warranty, certification or statement made by
the Transferor in this Agreement, any other Transaction Document to which it is
a party or in any other document delivered pursuant hereto or thereto shall
prove to have been incorrect in any material respect when made or deemed made;
or

         (c) the Transferor shall fail to perform or observe (i) any term,
covenant or agreement contained in Section 5.01(a) (as to maintenance of
existence only) or 5.01(d) of this Agreement or (ii) any other term, covenant or
agreement contained in this Agreement or any other Transaction Document on its
part to be performed or observed and, solely in the case of this clause (ii),
such failure shall remain unremedied for ten (10) days after a Responsible
Officer of the Transferor has actual knowledge or receives written notice
thereof; or

         (d) any Event of Bankruptcy shall occur with respect to the Transferor;
or

                                       27

         (e) the Transferee shall, for any reason, fail or cease to have good
and marketable title to the Transferred Assets (other than the Credit Default
Swaps and the Account Collateral), fail to vest in or maintain in favor of the
Transferee a perfected security interest in the Credit Default Swaps or fail to
vest in or fail to maintain in favor of the Administrative Agent a perfected
security interest in the Account Collateral, in each case free and clear of any
Adverse Claims (other than Permitted Adverse Claims); or

         (f) any "Termination Event" shall occur under the Receivables Loan
Agreement;

then, and in any such event, the Transferee shall, at the direction of the
Required Committed Lenders, declare the Termination Date to have occurred, upon
notice to the Transferor; provided that, automatically upon the occurrence of
any event (without any requirement for the giving of notice) described in
paragraph (d) of this Section 7.01, the Termination Date shall occur. Upon any
such declaration or upon such automatic termination, the Transferee and its
assigns shall have, in addition to the rights and remedies which it may have
under this Agreement, all other rights and remedies provided after default under
the UCC and under other applicable law, which rights and remedies shall be
cumulative.

                                  ARTICLE VIII
                                 INDEMNIFICATION

         SECTION 8.01. Indemnities by the Transferor.

         (a) Without limiting any other rights that the Transferee, any Secured
Party and their respective officers, directors, employees and agents (each, an
"Indemnified Party") may have hereunder or under applicable law, the Transferor
hereby agrees to indemnify each Indemnified Party from and against any and all
damages, losses, claims, liabilities, deficiencies, costs, disbursements and
expenses, including, without limitation, interest, penalties, amounts paid in
settlement and reasonable attorneys' fees (all of the foregoing being
collectively referred to as "Indemnified Amounts") arising out of or resulting
from this Agreement or any other Transaction Document or the use of proceeds of
Transfers, excluding, however, (a) Indemnified Amounts to the extent that such
Indemnified Amounts resulted from gross negligence or willful misconduct on the
part of such Indemnified Party and (b) any income taxes incurred by such
Indemnified Party arising out of or as a result of this Agreement or the
ownership of Transferred Assets. Without limiting or being limited by the
foregoing, the Transferor shall pay on demand to each Indemnified Party any and
all amounts necessary to indemnify such Indemnified Party from and against any
and all Indemnified Amounts relating to or resulting from any of the following
(excluding Indemnified Amounts and taxes described in clauses (a) and (b)
above):

               (i) any representation, warranty, certification, report or other
         statement made or deemed made by any Transaction Party (or any of their
         respective officers) under or in connection with this Agreement or any
         of the other Transaction Documents which shall have been incorrect in
         any respect when made;

                                       28

               (ii) the failure by any Transaction Party to comply with any
         applicable Law with respect to any Receivable or the related Contract;
         or the failure of any Receivable or the related Contract to conform to
         any such applicable Law;

               (iii) the failure to vest in the Transferee absolute ownership of
         the Transferred Assets (other than the Credit Default Swap Collateral
         and the Account Collateral), to vest in the Transferee a perfected
         security interest in the Credit Default Swap Collateral or to vest in
         the Administrative Agent a perfected security interest in the Account
         Collateral, in each case free and clear of any Adverse Claim;

               (iv) the failure to have filed, or any delay in filing, financing
         statements or other similar instruments or documents under the UCC of
         any applicable jurisdiction or other applicable laws with respect to
         the Transferred Assets, whether at the time of any Transfer or at any
         subsequent time;

               (v) any dispute, claim, offset or defense (other than discharge
         in bankruptcy) of an Obligor to the payment of any Transferred Asset
         (including, without limitation, a defense based on such Transferred
         Asset or any related Contract not being a legal, valid and binding
         obligation of such Obligor enforceable against it in accordance with
         its terms), or any other claim resulting from the sale of the
         merchandise, goods or services related to such Transferred Asset or the
         furnishing or failure to furnish such merchandise, goods or services or
         relating to any Contract related thereto;

               (vi) any failure of any Transaction Party to perform its duties
         or obligations in accordance with the provisions hereof and each other
         Transaction Document or to perform its duties or obligations under the
         Contracts or to timely and fully comply in all respects with the Credit
         and Collection Policy in regard to each Receivable and the related
         Contract;

               (vii) any products liability, environmental or other claim
         arising out of or in connection with merchandise, goods or services
         which are the subject of any Contract or the sale of which gave rise to
         any Receivable;

               (viii) the commingling of Collections of Transferred Assets at
         any time with other funds;

               (ix) any investigation, litigation or proceeding (actual or
         threatened) related to this Agreement or any other Transaction Document
         or the use of proceeds of Transfers or any Transferred Asset;

               (x) any setoff exercised by the Persons obligated with respect to
         any Transferred Asset;

               (xi) any claim brought by any Person other than an Indemnified
         Party arising from any activity by the Transferor or any Affiliate of
         the Transferor in servicing, administering or collecting any
         Transferred Asset; or

                                       29

               (xii) the failure by any Transaction Party to pay when due any
         taxes, including, without limitation, sales, excise or personal
         property taxes.

         (b) Notwithstanding anything to the contrary in this Agreement, solely
for purposes of the Transferor's indemnification obligations pursuant to clauses
(i) and (vi) of this Article VIII, any representation, warranty or covenant
qualified by the occurrence or non-occurrence of a Material Adverse Effect or
similar concepts of materiality shall be deemed to be not so qualified.

                                   ARTICLE IX
                                  MISCELLANEOUS

         SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or consent to any departure by the Transferor therefrom shall
be effective unless in a writing signed by the Transferee, the Administrative
Agent, the Required Committed Lenders and, in the case of any amendment, also
signed by the Transferor, and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. No failure on the part of the Transferee to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right.

         SECTION 9.02. Notices, Etc. All notices and other communications
hereunder shall, unless otherwise stated herein, be in writing (which shall
include facsimile communication) and be faxed or delivered, to each party
hereto, at its address set forth on Schedule I or at such other address as shall
be designated by such party in a written notice to the other parties hereto.
Each such notice or other communication shall be effective (i) if given by
telecopy, when such telecopy is transmitted to the telecopy number specified in
this Section 9.02 and confirmation is received, (ii) if given by mail three
Business Days following such posting, postage prepaid, U.S. certified or
registered, (iii) if given by overnight courier, one Business Day after deposit
thereof with a national overnight courier service, or (iv) if given by any other
means, when received at the address specified in this Section 9.02

         SECTION 9.03. Binding Effect; Assignability.

         (a) This Agreement shall be binding upon and inure to the benefit of
the Transferor, the Transferee and their respective successors and assigns;
provided, however, that the Transferor may not assign its rights or obligations
hereunder or any interest herein without the prior written consent of the
Transferee. The Transferee may assign all or any part of its rights and
obligations hereunder without the consent of the Transferor.

         (b) This Agreement shall create and constitute the continuing
obligations of the parties hereto in accordance with its terms, and shall remain
in full force and effect until the Final Payout Date; provided, however, that
rights and remedies with respect to any breach of any representation and
warranty made by the Transferor pursuant to Article IV and the provisions of
Article VIII and Sections 9.04, 9.05 and 9.06 shall be continuing and shall
survive any termination of this Agreement.

                                       30

         SECTION 9.04. Costs, Expenses and Taxes.

         (a) In addition to the rights of indemnification granted to the
Transferee pursuant to Article VIII hereof, the Transferor agrees to pay on
demand all reasonable costs and expenses in connection with the preparation,
execution, delivery and administration of this Agreement and the other documents
and agreements to be delivered hereunder, including, without limitation, (i) the
reasonable fees and out-of-pocket expenses of counsel for the Transferee with
respect thereto and with respect to advising the Transferee as to its rights and
remedies under this Agreement; (ii) all reasonable fees and expenses associated
with any audits and other due diligence conducted prior to or after the Closing
Date and (iii) any amendments, waivers or consents under the Transaction
Documents. In addition, the Transferor agrees to pay all costs and expenses, if
any (including reasonable counsel fees and expenses), in connection with the
enforcement of this Agreement and the other documents to be delivered hereunder.

         (b) In addition, the Transferor agrees to pay any and all stamp and
other taxes and fees payable in connection with the execution, delivery, filing
and recording of this Agreement or the other documents or agreements to be
delivered hereunder, and the Transferor agrees to save each Indemnified Party
harmless from and against any liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees.

         SECTION 9.05. No Proceedings. The Transferor hereby agrees that it will
not institute against, or join any other Person in instituting against, the
Transferee any proceeding of the type referred to in the definition of "Event of
Bankruptcy" in the Receivables Loan Agreement so long as there shall not have
elapsed one year plus one day since the Final Payout Date. The Transferor
further agrees that it will not institute against any Conduit Lender any
proceeding of the type referred to in the definition of "Event of Bankruptcy" in
the Receivables Loan Agreement so long as any Commercial Paper or other senior
indebtedness issued by such Conduit Lender shall be outstanding or there shall
not have elapsed one year plus one day since the last day on which any such
Commercial Paper or other senior indebtedness shall have been outstanding.

         SECTION 9.06. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         SECTION 9.07. Rights of Administrative Agent. Each of the parties
hereto hereby acknowledges that the Transferee may assign all or any portion of
its rights under this Agreement and that such assignees may (except as otherwise
agreed to by such assignees) further assign, or grant security interests in,
their rights under this Agreement, and the Transferor hereby consents to any
such assignment and grants. All such assignees and secured parties, shall be
third party beneficiaries of, and shall be entitled to enforce the Transferee's
rights, remedies and powers under this Agreement to the same extent as if they
were parties hereto, subject to the terms of their agreement with the Transferee
or the Borrower, as the case may be. Without limiting the generality of the
foregoing, the Transferor hereby acknowledges that the Transferee has granted a
security interest in all such rights, remedies and powers to the Administrative
Agent pursuant to the Receivables Loan Agreement. The Transferor agrees that the
Administrative Agent (for the benefit of the Secured Parties under the
Receivables Loan

                                       31

Agreement) shall, subject to the terms of the Receivables Loan Agreement, have
the right to enforce this Agreement and to exercise directly all of the
Transferee's rights and remedies under this Agreement (including, without
limitation, the right to give or withhold any consents or approvals of the
Transferee to be given or withheld hereunder) and the Transferor agrees to
cooperate fully with the Administrative Agent in the exercise of such rights,
remedies and powers. The Transferor further agrees to give to the Administrative
Agent copies of all notices and reports it is required to give to the Transferee
hereunder. Notwithstanding anything herein to the contrary, no declaration of
the Termination Date, and no other amendment, waiver, consent or other
modification made or granted hereunder, shall in any case be effective unless
the same shall have been made or granted by, or approved in writing by, the
Administrative Agent acting with the consent, or at the direction, of the
Required Committed Lenders.

         SECTION 9.08. Restriction on Payments; Waiver of Setoff.

         (a) Notwithstanding anything in this Agreement or elsewhere to the
contrary, the Transferor agrees that any indebtedness, obligation or claim it
may from time to time hold or otherwise have (including, without limitation, any
obligation or claim in respect of the Transfer Price) against the Transferee or
any assets or properties of the Transferee, whether arising hereunder or
otherwise existing (each a "Transferee Obligation"), shall be paid solely from
funds available to the Transferee which are not otherwise required to be applied
or set-aside for the payment of any Borrower Obligations pursuant to the
Receivables Loan Agreement and then only to the extent such payment is permitted
by the terms of the Receivables Loan Agreement. Without limiting the generality
of the foregoing, the Transferor acknowledges and agrees that no payments may be
made to the Transferor by the Transferee at any time (i) that a Termination
Event or Incipient Termination Event has occurred and is continuing or (ii)
during the period between the Termination Date and the Final Payout Date.

         (b) Except as otherwise provided herein, the obligations and
liabilities of the Transferor under this Agreement (collectively, the
"Transferor Obligations") shall not be subject to deduction of any kind or type,
except by payment in full of the amount thereof in accordance with the terms
thereof. The Transferor hereby waives any right it may now or at any time
hereafter have to set-off any Transferor Obligation against any obligation of
the Transferee (including, without limitation, any obligation of the Transferee
in respect of the payment of the Transfer Price for any Transferred Assets)
except as expressly set forth herein.

         (c) Notwithstanding any provision to the contrary elsewhere in this
Agreement, other than with respect to payments of a Transferee Obligation
specifically permitted by Section 9.08(a) above, no demand for any payment may
be made by the Transferor in respect of such Transferee Obligation, no payment
shall be due from the Transferee to the Transferor with respect thereto and the
Transferor shall not have any claim for payment of such Transferee Obligation.
In the event that, notwithstanding the foregoing provision limiting such
payment, the Transferor shall receive any payment or distribution of any kind or
character which is not permitted to be made by Section 9.08(a) above, such
payment or distribution shall be received and held in trust by the Transferor
for the benefit of, and shall be promptly paid over to, the Administrative Agent
for the benefit of the Secured Parties under the Receivables Loan Agreement.

                                       32

         SECTION 9.09. Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed shall be deemed to
be an original and all of which when taken together shall constitute one and the
same agreement.

         SECTION 9.10. Integration; Survival of Termination. This Agreement and
the other Transaction Documents executed by the parties hereto on the date
hereof contain the final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof superceding all prior oral or written understandings. Any
provisions of this Agreement which are 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.

         SECTION 9.11. Consent to Jurisdiction.

         (a) Each party hereto hereby irrevocably submits to the non-exclusive
jurisdiction of any New York State or Federal court sitting in New York City in
any action or proceeding arising out of or relating to this Agreement, and each
party hereto hereby irrevocably agrees that all claims in respect of such action
or proceeding may be heard and determined in such New York State court or, to
the extent permitted by law, in such Federal court. The parties hereto hereby
irrevocably waive, to the fullest extent they may effectively do so, the defense
of an inconvenient forum to the maintenance of such action or proceeding. The
parties hereto agree that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

         (b) Each of the Transferor and the Transferee consents to the service
of any and all process in any such action or proceeding by the mailing of copies
of such process to it at its address specified herein. Nothing in this Section
9.11 shall affect the right of any party to serve legal process in any manner
permitted by law.

         SECTION 9.12. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO , OR
CONNECTED WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT.

             THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       33

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

TRANSFEROR:                           TRW AUTOMOTIVE RECEIVABLES LLC

                                      By: /s/ David L. Bialosky
                                          --------------------------------------
                                      Name:  David L. Bialosky
                                      Title: Vice President and General Counsel

TRANSFEREE:                           TRW AUTOMOTIVE GLOBAL RECEIVABLES LLC

                                      By: /s/ David L. Bialosky
                                          --------------------------------------
                                      Name:  David L. Bialosky
                                      Title: Vice President and General Counsel

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