Document:

EXHIBIT 10.4

                                                                  EXECUTION COPY

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                     FIRST-TIER SUBSIDIARY PLEDGE AGREEMENT

                            dated and effective as of

                               February 28, 2003,

                                      among

                        TRW AUTOMOTIVE ACQUISITION CORP.,

                        Each Subsidiary of TRW AUTOMOTIVE
                        HOLDINGS CORP. identified herein,

                                       and

                              JPMORGAN CHASE BANK,

                               as Collateral Agent

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                                Table of Contents
                                -----------------

                                                                           Page
                                                                           ----

                                    ARTICLE I

                                   Definitions

Section 1.01.  Defined Terms..................................................2
Section 1.02.  Other Defined Terms............................................2

                                   ARTICLE II

                              Pledge of Securities

Section 2.01.  Pledge.........................................................4
Section 2.02.  Delivery of the Pledged Collateral.............................5
Section 2.03.  Representations, Warranties and Covenants......................6
Section 2.04.  Certification of Limited Liability Company and
                  Limited Partnership Interests...............................7
Section 2.05.  Registration in Nominee Name; Denominations....................8
Section 2.06.  Voting Rights; Dividends and Interest, etc.....................8

                                   ARTICLE III

                                    Remedies

Section 3.01.  Remedies upon Default.........................................11
Section 3.02.  Application of Proceeds.......................................13
Section 3.03.  Securities Act, etc...........................................14
Section 3.04.  Registration, etc.............................................15

                                   ARTICLE IV

                                  Miscellaneous

Section 4.01.  Notices.......................................................16
Section 4.02.  Security Interest Absolute....................................16
Section 4.03.  Survival of Agreement.........................................17
Section 4.04.  Binding Effect; Several Agreement.............................17
Section 4.05.  Successors and Assigns........................................18
Section 4.06.  Collateral Agent's Fees and Expenses;
                  Indemnification............................................18
Section 4.07.  Collateral Agent Appointed
                  Attorney-in-Fact...........................................19

Section 4.08.  GOVERNING LAW.................................................20
Section 4.09.  Waivers; Amendment............................................20
Section 4.10.  WAIVER OF JURY TRIAL..........................................21
Section 4.11.  Severability..................................................22
Section 4.12.  Counterparts..................................................22
Section 4.13.  Headings......................................................22
Section 4.14.  Jurisdiction; Consent to Service of
                  Process....................................................22
Section 4.15.  Termination or Release........................................23
Section 4.16.  Additional Subsidiaries.......................................24

Schedules
---------

Schedule I                    Pledgors
Schedule II                   Equity Interests
Schedule III                  Limited Liability Company Interests

Exhibits
--------

Exhibit I                     Form of Supplement to the First-Tier
                              Subsidiary Pledge Agreement

                                    FIRST-TIER SUBSIDIARY PLEDGE AGREEMENT dated
                           and effective as of February 28, 2003 (this
                           Agreement"), among TRW AUTOMOTIVE ACQUISITION CORP.,
                           a Delaware corporation (the "U.S. Borrower"), each
                           subsidiary identified on Schedule I hereto (each a
                           "Pledgor," and together with the U.S. Borrower, the
                           "Pledgors") and JPMORGAN CHASE BANK, a New York
                           banking corporation ("JPMCB"), as Collateral Agent
                           (in such capacity, the "Collateral Agent") for the
                           Secured Parties (as defined below).

                  Reference is made to the Credit Agreement dated as of February
27, 2003 (as amended, supplemented, waived or otherwise modified from time to
time, the "Credit Agreement"), among TRW Automotive Holdings Corp., TRW
Automotive Intermediate Holdings Corp., the U.S. Borrower, the Foreign
Subsidiary Borrowers party thereto, the Lenders party thereto (the "Lenders"),
JPMCB, as Administrative Agent and Collateral Agent, Credit Suisse First Boston,
acting through its Cayman Islands Branch, Lehman Commercial Paper Inc., and
Deutsche Bank Securities Inc., as Co-Syndication Agents, and Bank of America,
N.A., as Documentation Agent and the U.S. Guarantee and Collateral Agreement
dated and effective as of February 28, 2003 (the "U.S. Collateral Agreement")
among TRW Automotive Holdings Corp., TRW Automotive Intermediate Holdings Corp.,
TRW Automotive Acquisition Corp., each other Subsidiary of TRW Automotive
Holdings Corp. identified therein and the Collateral Agent.

                  The Revolving Credit Lenders have agreed to extend credit to
the Foreign Subsidiary Borrowers subject to the terms and conditions set forth
in the Credit Agreement. The obligations of the Revolving Credit Lenders to
extend such credit are conditioned upon, among other things, the execution and
delivery of this Agreement, pursuant to which 35% of the Equity Interests of
certain Foreign Subsidiaries are being pledged to secure the Foreign Obligations
(as defined below), and the U.S. Collateral Agreement, pursuant to which an
amount not in excess of 65% of the Equity Interests of certain Foreign
Subsidiaries are being pledged to secure the Obligations (as defined in the U.S.
Collateral Agreement). The

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Pledgors are affiliates of the Foreign Subsidiary Borrowers, and each Foreign
Subsidiary Borrower is an affiliate of the other Foreign Subsidiary Borrowers.
The Pledgors will derive substantial benefits from the extension of credit to
the Foreign Subsidiary Borrowers, and each Foreign Subsidiary Borrower will
derive substantial benefits from the extensions of credit to each other Foreign
Subsidiary Borrower, in each case pursuant to the Credit Agreement. The Pledgors
are willing to execute and deliver this Agreement in order to induce the
Revolving Credit Lenders to extend such credit. Accordingly, the parties hereto
agree as follows:

                                   ARTICLE I

                                   Definitions
                                   -----------

                  Section 1.01. Defined Terms. (a) Capitalized terms used in
this Agreement and not otherwise defined herein have the respective meanings
assigned thereto in the Credit Agreement. All terms defined in the New York UCC
(as defined herein) and not defined in this Agreement have the meanings
specified therein.

                  (b) The rules of construction specified in Section 1.02 of the
Credit Agreement also apply to this Agreement.

                  Section 1.02. Other Defined Terms. As used in this Agreement,
the following terms have the meanings specified below:

                  "Credit Agreement" has the meaning assigned to such term in
the preliminary statement of this Agreement.

                  "Federal Securities Laws" has the meaning assigned to such
term in Section 3.03.

                  "Foreign Loan Document Obligations" means (a) the due and
punctual payment by each Foreign Subsidiary Borrower of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Loans made to such Foreign
Subsidiary Borrower, when and as due, whether at maturity, by

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acceleration, upon one or more dates set for prepayment or otherwise, (ii) each
payment required to be made by such Foreign Subsidiary Borrower in respect of
any Ancillary Credit Extension, when and as due, including the principal of and
interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on any loans thereunder, overdrafts,
reimbursement of guarantees and obligations to provide cash collateral and (iii)
all other monetary obligations of such Foreign Subsidiary Borrower to any of the
Secured Parties under the Credit Agreement and each of the other Loan Documents,
including obligations to pay fees, expenses and reimbursement obligations and
indemnification obligations, whether primary, secondary, direct, contingent,
fixed or otherwise (including monetary obligations incurred during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), the due and
punctual performance of all other obligations of each Foreign Subsidiary
Borrower under or pursuant to the Credit Agreement and each of the other Loan
Documents and the due and punctual payment and performance of all the
obligations of each Foreign Subsidiary Loan Party under or pursuant to this
Agreement and each of the other Loan Documents.

                  "Foreign Obligations" means (a) the Foreign Loan Document
Obligations, (b) the due and punctual payment and performance of all obligations
of each Foreign Subsidiary Loan Party under each Swap Agreement that (i) is in
effect on the Closing Date with any counterparty that is a Lender or an
Affiliate of a Lender as of the Closing Date or (ii) is entered into after the
Closing Date with a counterparty that is a Lender or an Affiliate of a Lender at
the time such Swap Agreement is entered into and (c) the due and punctual
payment and performance of all obligations and other liabilities of each Foreign
Subsidiary Loan Party to a Lender or any of its Affiliates in respect of
overdrafts and related liabilities owed to a Lender or any of its Affiliates and
arising from treasury, depositary or cash management services or in connection
with any automated clearinghouse transfers of funds.

                  "New York UCC" means the Uniform Commercial Code as from time
to time in effect in the State of New York.

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                  "Permitted Encumbrances" means the Liens permitted pursuant to
Sections 6.02(e), (f), (g), (h), (k), (p) and (q) of the Credit Agreement.

                  "Pledged Collateral" has the meaning assigned to such term in
Section 2.01.

                  "Pledged Securities" means any promissory notes, stock
certificates or other certificated securities now or hereafter included in the
Pledged Collateral, including all certificates, instruments or other documents
representing or evidencing any Pledged Collateral.

                  "Pledged Stock" has the meaning assigned to such term in
Section 2.01.

                  "Pledgors" means the U.S. Borrower and each Subsidiary of TRW
Automotive Holdings Corp. identified on Schedule I to this Agreement.

                  "Secured Parties" means (a) the Revolving Credit Lenders (and
any Affiliate of a Revolving Credit Lender to which any obligation referred to
in clause (c) of the definition of the term "Foreign Obligations" is owed), (b)
the Administrative Agent, (c) each Ancillary Lender, (d) each counterparty to
any Swap Agreement entered into with a Foreign Subsidiary Loan Party the
obligations under which constitute Foreign Obligations, (e) the beneficiaries of
each indemnification obligation undertaken by any Foreign Guarantor under any
Loan Document and (f) the successors and assigns of each of the foregoing.

                                   ARTICLE II

                              Pledge of Securities
                              --------------------

                  Section 2.01. Pledge. As security for the payment or
performance, as the case may be, in full of the Foreign Obligations, each
Pledgor hereby assigns and pledges to the Collateral Agent, its successors and
assigns, for the ratable benefit of the Secured Parties, and hereby grants to
the Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, a security interest in all of such Pledgor's right, title and
interest in, to and under (a) the shares of capital stock and other Equity
Interests owned by it and

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listed on Schedule II, any other Equity Interests obtained in the future by such
Pledgor in respect of its Equity Interests in the issuers identified on Schedule
II hereto to the extent that such Equity Interests are not pledged under the
U.S. Collateral Agreement and the certificates representing all such Equity
Interests (the "Pledged Stock"); provided that the Pledged Stock shall not
include to the extent applicable law requires that a Subsidiary of such Pledgor
issue directors' qualifying shares, such shares or nominee or other similar
shares, (b) subject to Section 2.06, all payments of principal or interest,
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of, in exchange for or upon the
conversion of, and all other proceeds received in respect of, the securities
referred to in clause (a) above, (c) subject to Section 2.06, all rights and
privileges of such Pledgor with respect to the securities and other property
referred to in clauses (a) and (b) above and (d) all proceeds of any of the
foregoing (the items referred to in clauses (a) through (d) above being
collectively referred to as the "Pledged Collateral").

                  TO HAVE AND TO HOLD the Pledged Collateral, together with all
right, title, interest, powers, privileges and preferences pertaining or
incidental thereto, unto the Collateral Agent, its successors and assigns, for
the ratable benefit of the Secured Parties, forever; subject, however, to the
terms, covenants and conditions hereinafter set forth.

                  Section 2.02. Delivery of the Pledged Collateral. (a) Each
Pledgor agrees promptly to deliver or cause to be delivered to the Collateral
Agent, for the ratable benefit of the Secured Parties, any and all Pledged
Securities.

                  (b) Upon delivery to the Collateral Agent, (i) any Pledged
Securities shall be accompanied by stock powers duly executed in blank or other
instruments of transfer reasonably satisfactory to the Collateral Agent and by
such other instruments and documents as the Collateral Agent may reasonably
request and (ii) all other property composing part of the Pledged Collateral
delivered pursuant to the terms of this Agreement shall be accompanied by proper
instruments of assignment duly executed by the applicable

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Pledgor and such other instruments or documents as the Collateral Agent may
reasonably request. Each delivery of Pledged Securities shall be accompanied by
a schedule describing the securities, which schedule shall be attached hereto as
Schedule II and made a part hereof; provided that failure to attach any such
schedule hereto shall not affect the validity of such pledge of such Pledged
Securities. Each schedule so delivered shall supersede any prior schedules so
delivered.

                  Section 2.03. Representations, Warranties and Covenants. The
Pledgors, jointly and severally, represent, warrant and covenant to and with the
Collateral Agent, for the ratable benefit of the Secured Parties, that:

                  (a) Schedule II correctly sets forth the percentage of the
issued and outstanding shares of each class of the Equity Interests of the
issuer thereof represented by such Pledged Stock and includes all Equity
Interests required to be pledged hereunder in order to satisfy the Collateral
and Guarantee Requirement;

                  (b) the Pledged Stock has been duly and validly authorized and
issued by the issuers thereof and is fully paid and nonassessable;

                  (c) except for the security interests granted hereunder, each
Pledgor (i) is and, subject to any transfers made in compliance with the Credit
Agreement, will continue to be the direct owner, beneficially and of record, of
the Pledged Securities indicated on Schedule II as owned by such Pledgor, (ii)
holds the same free and clear of all Liens, other than Liens created by this
Agreement and Liens permitted by Section 6.02 of the Credit Agreement or arising
by operation of law, (iii) will make no assignment, pledge, hypothecation or
transfer of, or create or permit to exist any security interest in or other Lien
on, the Pledged Collateral, other than pursuant to a transaction permitted by
the Credit Agreement and other than Liens created by this Agreement and
Permitted Encumbrances, and (iv) will defend its title or interest hereto or
therein against any and all Liens (other than Liens created by this Agreement
and Permitted Encumbrances), however arising, of all persons;

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                  (d) except for restrictions and limitations imposed by the
Loan Documents or securities laws generally, or otherwise permitted to exist
pursuant to the terms of the Credit Agreement, the Pledged Collateral is and
will continue to be freely transferable and assignable, and none of the Pledged
Collateral is or will be subject to any option, right of first refusal,
shareholders agreement, charter or by-law provisions or contractual restriction
of any nature that might prohibit, impair, delay or otherwise affect the pledge
of such Pledged Collateral hereunder, the sale or disposition thereof pursuant
hereto or the exercise by the Collateral Agent of rights and remedies hereunder;

                  (e) each Pledgor has the power and authority to pledge the
Pledged Collateral pledged by it hereunder in the manner hereby done or
contemplated;

                  (f) no consent or approval of any Governmental Authority, any
securities exchange or any other person was or is necessary to the validity of
the pledge effected hereby (other than such as have been obtained and are in
full force and effect);

                  (g) by virtue of the execution and delivery by the Pledgors of
this Agreement, when any Pledged Securities are delivered to the Collateral
Agent, for the ratable benefit of the Secured Parties, in accordance with this
Agreement, the Collateral Agent will obtain, for the ratable benefit of the
Secured Parties, a legal, valid and perfected first priority lien upon and
security interest in such Pledged Securities as security for the payment and
performance of the Foreign Obligations; and

                  (h) the pledge effected hereby is effective to vest in the
Collateral Agent, for the ratable benefit of the Secured Parties, the rights of
the Collateral Agent in the Pledged Collateral as set forth herein.

                  Section 2.04. Certification of Limited Liability Company and
Limited Partnership Interests. Each interest in any limited liability company or
limited partnership controlled by any Pledgor and pledged hereunder shall be
represented by a certificate, shall be a "security" within the meaning of
Article 8 of the New York UCC and shall be governed by Article 8 of the New York
UCC; provided, however, that in the case of (a) the limited liability

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company interests set forth on Schedule III, the U.S. Borrower shall cause such
interests to be represented by a certificate, to be a "security" within the
meaning of Article 8 of the New York UCC and to be governed by Article 8 of the
New York UCC, in each case not later than 20 Business Days after the Closing
Date and (b) any limited liability company or limited partnership that, in
either case, is a Wholly Owned Subsidiary formed or acquired after the Closing
Date, the U.S. Borrower shall cause such interests to be represented by a
certificate, to be a "security" within the meaning of Article 8 of the New York
UCC and to be governed by Article 8 of the New York UCC, in each case not later
than 20 Business Days after the date of formation or acquisition thereof, as
applicable.

                  Section 2.05. Registration in Nominee Name; Denominations. The
Collateral Agent, on behalf of the Secured Parties, shall have the right (in its
sole and absolute discretion) to hold the Pledged Securities in the name of the
applicable Pledgor endorsed or assigned in blank or in favor of the Collateral
Agent or, if an Event of Default shall have occurred and be continuing, in its
own name as pledgee or the name of its nominee (as pledgee or as sub-agent).
Each Pledgor will promptly give to the Collateral Agent copies of any notices or
other communications received by it with respect to Pledged Securities
registered in the name of such Pledgor. The Collateral Agent shall at all times
have the right to exchange the certificates representing Pledged Securities for
certificates of smaller or larger denominations for any purpose consistent with
this Agreement. Each Pledgor shall use its commercially reasonable efforts to
cause any Loan Party that is not a party to this Agreement to comply with a
request by the Collateral Agent, pursuant to this Section 2.05, to exchange
certificates representing Pledged Securities of such Loan Party for certificates
of smaller or larger denominations.

                  Section 2.06. Voting Rights; Dividends and Interest, etc. (a)
Unless and until an Event of Default shall have occurred and be continuing:

                  (i) Each Pledgor shall be entitled to exercise any and all
           voting and/or other consensual rights and powers inuring to an owner
           of Pledged Securities or any part thereof for any purpose consistent
           with the

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           terms of this Agreement, the Credit Agreement and the other Loan
           Documents; provided that such rights and powers shall not be
           exercised in any manner that could materially and adversely affect
           the rights inuring to a holder of any Pledged Securities, the rights
           and remedies of any of the Collateral Agent or the other Secured
           Parties under this Agreement, the Credit Agreement or any other Loan
           Document or the ability of the Secured Parties to exercise the same.

                  (ii) The Collateral Agent shall promptly execute and deliver
           to each Pledgor, or cause to be executed and delivered to such
           Pledgor, all such proxies, powers of attorney and other instruments
           as such Pledgor may reasonably request for the purpose of enabling
           such Pledgor to exercise the voting and/or consensual rights and
           powers it is entitled to exercise pursuant to subparagraph (i) above.

                  (iii) Each Pledgor shall be entitled to receive and retain any
           and all dividends, interest, principal and other distributions paid
           on or distributed in respect of the Pledged Securities to the extent
           and only to the extent that such dividends, interest, principal and
           other distributions are permitted by, and otherwise paid or
           distributed in accordance with, the terms and conditions of the
           Credit Agreement, the other Loan Documents and applicable laws;
           provided that any noncash dividends, interest, principal or other
           distributions that would constitute Pledged Securities, whether
           resulting from a subdivision, combination or reclassification of the
           outstanding Equity Interests of the issuer of any Pledged Securities
           or received in exchange for Pledged Securities or any part thereof,
           or in redemption thereof, or as a result of any merger,
           consolidation, acquisition or other exchange of assets to which such
           issuer may be a party or otherwise, shall be and become part of the
           Pledged Collateral, and, if received by any Pledgor, shall not be
           commingled by such Pledgor with any of its other funds or property
           but shall be held separate and apart therefrom, shall be held in
           trust for the benefit of the Collateral Agent, for the ratable
           benefit of the Secured Parties, and shall be forthwith delivered to
           the Collateral Agent, for the ratable benefit of the Secured Parties,

                                                                              10

           in the same form as so received (endorsed in a manner reasonably
           satisfactory to the Collateral Agent).

                  (b) Upon the occurrence and during the continuance of an Event
of Default, and after notice by the Collateral Agent to the relevant Pledgors of
the Collateral Agent's intention to exercise its rights hereunder, all rights of
any Pledgor to dividends, interest, principal or other distributions that such
Pledgor is authorized to receive pursuant to paragraph (a)(iii) of this Section
2.06 shall cease, and all such rights shall thereupon become vested, for the
ratable benefit of the Secured Parties, in the Collateral Agent which shall have
the sole and exclusive right and authority to receive and retain such dividends,
interest, principal or other distributions. All dividends, interest, principal
or other distributions received by any Pledgor contrary to the provisions of
this Section 2.06 shall not be commingled by such Pledgor with any of its other
funds or property but shall be held separate and apart therefrom, shall be held
in trust for the benefit of the Collateral Agent, for the ratable benefit of the
Secured Parties, and shall be forthwith delivered to the Collateral Agent, for
the ratable benefit of the Secured Parties, in the same form as so received
(endorsed in a manner reasonably satisfactory to the Collateral Agent). Any and
all money and other property paid over to or received by the Collateral Agent
pursuant to the provisions of this paragraph (b) shall be retained by the
Collateral Agent in an account to be established by the Collateral Agent upon
receipt of such money or other property and shall be applied in accordance with
the provisions of Section 3.02. After all Events of Default have been cured or
waived and the U.S. Borrower has delivered to the Collateral Agent a certificate
to that effect, the Collateral Agent shall promptly repay to each Pledgor
(without interest) all dividends, interest, principal or other distributions
that such Pledgor would otherwise be permitted to retain pursuant to the terms
of paragraph (a)(iii) of this Section 2.06 and that remain in such account.

                  (c) Upon the occurrence and during the continuance of an Event
of Default, and after notice by the Collateral Agent to the relevant Pledgors of
the Collateral Agent's intention to exercise its rights hereunder, all rights of
any Pledgor to exercise the voting and/or

                                                                              11

consensual rights and powers it is entitled to exercise pursuant to paragraph
(a)(i) of this Section 2.06, and the obligations of the Collateral Agent under
paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall
thereupon become vested in the Collateral Agent, for the ratable benefit of the
Secured Parties, which shall have the sole and exclusive right and authority to
exercise such voting and consensual rights and powers; provided that, unless
otherwise directed by the Required Lenders, the Collateral Agent shall have the
right from time to time following and during the continuance of an Event of
Default to permit the Pledgors to exercise such rights. After all Events of
Default have been cured or waived and the U.S. Borrower has delivered to the
Collateral Agent a certificate to that effect, each Pledgor shall have the right
to exercise the voting and/or consensual rights and powers that such Pledgor
would otherwise be entitled to exercise pursuant to the terms of paragraph
(a)(i) above.

                                  ARTICLE III

                                    Remedies
                                    --------

                  Section 3.01. Remedies Upon Default. Upon the occurrence and
during the continuance of an Event of Default, each Pledgor agrees to deliver
each item of Pledged Collateral to the Collateral Agent on demand, and it is
agreed that the Collateral Agent shall have the right, subject to the mandatory
requirements of applicable law, to sell or otherwise dispose of all or any part
of the Pledged Collateral at a public or private sale or at any broker's board
or on any securities exchange, for cash, upon credit or for future delivery as
the Collateral Agent shall deem appropriate. The Collateral Agent shall be
authorized in connection with any sale of a security (if it deems it advisable
to do so) pursuant to the foregoing to restrict the prospective bidders or
purchasers to persons who represent and agree that they are purchasing such
security for their own account, for investment, and not with a view to the
distribution or sale thereof. Upon consummation of any such sale of Pledged
Collateral pursuant to this Section 3.01, the Collateral Agent shall have the
right to assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any such sale shall hold the property
sold absolutely, free from any claim or right on

                                                                              12

the part of any Pledgor, and each Pledgor hereby waives and releases (to the
extent permitted by law) all rights of redemption, stay, valuation and appraisal
that such Pledgor now has or may at any time in the future have under any rule
of law or statute now existing or hereafter enacted.

                  The Collateral Agent shall give the applicable Pledgors 10
Business Days' written notice (which each Pledgor agrees is reasonable notice
within the meaning of Section 9-611 of the New York UCC or its equivalent in
other jurisdictions) of the Collateral Agent's intention to make any sale of
Pledged Collateral. Such notice, in the case of a public sale, shall state the
time and place for such sale and, in the case of a sale at a broker's board or
on a securities exchange, shall state the board or exchange at which such sale
is to be made and the day on which the Pledged Collateral, or portion thereof,
will first be offered for sale at such board or exchange. Any such public sale
shall be held at such time or times within ordinary business hours and at such
place or places as the Collateral Agent may fix and state in the notice (if any)
of such sale. At any such sale, the Pledged Collateral, or the portion thereof,
to be sold may be sold in one lot as an entirety or in separate parcels, as the
Collateral Agent may (in its sole and absolute discretion) determine. The
Collateral Agent shall not be obligated to make any sale of any Pledged
Collateral if it shall determine not to do so, regardless of the fact that
notice of sale of such Pledged Collateral shall have been given. The Collateral
Agent may, without notice or publication, adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the
time and place to which the same was so adjourned. In the case of any sale of
all or any part of the Pledged Collateral made on credit or for future delivery,
the Pledged Collateral so sold may be retained by the Collateral Agent until the
sale price is paid by the purchaser or purchasers thereof, but the Collateral
Agent shall not incur any liability in the event that any such purchaser or
purchasers shall fail to take up and pay for the Pledged Collateral so sold and,
in the case of any such failure, such Pledged Collateral may be sold again upon
notice given in accordance with provisions above. At any public (or, to the
extent permitted by law, private) sale made pursuant to this Section 3.01, any
Secured Party may

                                                                              13

bid for or purchase for cash, free (to the extent permitted by law) from any
right of redemption, stay, valuation or appraisal on the part of any Pledgor
(all such rights being also hereby waived and released to the extent permitted
by law), the Pledged Collateral or any part thereof offered for sale and such
Secured Party may, upon compliance with the terms of sale, hold, retain and
dispose of such property without further accountability to any Pledgor therefor.
For purposes hereof, a written agreement to purchase the Pledged Collateral or
any portion thereof shall be treated as a sale thereof; the Collateral Agent
shall be free to carry out such sale pursuant to such agreement and no Pledgor
shall be entitled to the return of the Pledged Collateral or any portion thereof
subject thereto, notwithstanding the fact that after the Collateral Agent shall
have entered into such an agreement all Events of Default shall have been
remedied and the Foreign Obligations paid in full. As an alternative to
exercising the power of sale herein conferred upon it, the Collateral Agent may
proceed by a suit or suits at law or in equity to foreclose this Agreement and
to sell the Pledged Collateral or any portion thereof pursuant to a judgment or
decree of a court or courts having competent jurisdiction or pursuant to a
proceeding by a court-appointed receiver. Any sale pursuant to the provisions of
this Section 3.01 shall be deemed to conform to the commercially reasonable
standards as provided in Section 9-610(b) of the New York UCC or its equivalent
in other jurisdictions.

                  Section 3.02. Application of Proceeds. The Collateral Agent
shall apply the proceeds, moneys or balances of any collection or sale of
Pledged Collateral, as well as any Pledged Collateral consisting of cash, as
follows:

                  FIRST, to the payment of all costs and expenses incurred by
         the Applicable Agent and the Collateral Agent in connection with such
         collection or sale or otherwise in connection with this Agreement, any
         other Loan Document or any of the Foreign Obligations, including all
         court costs and the fees and expenses of its agents and legal counsel,
         the repayment of all advances made by the Applicable Agent and the
         Collateral Agent hereunder or under any other Loan Document on behalf
         of any Pledgor and any other costs or expenses incurred in connection
         with the exercise

                                                                              14

         of any right or remedy hereunder or under any other Loan Document;

                  SECOND, to the payment in full of the Foreign Obligations (the
         amounts so applied to be distributed among the Secured Parties pro rata
         in accordance with the respective amounts of the Foreign Obligations
         owed to them on the date of any such distribution); and

                  THIRD, to the Pledgors, their successors or assigns, or as a
         court of competent jurisdiction may otherwise direct.

                  The Collateral Agent shall have absolute discretion as to the
time of application of any such proceeds, moneys or balances in accordance with
this Agreement. Upon any sale of Pledged Collateral by the Collateral Agent
(including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the purchase money by the Collateral Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Pledged Collateral so sold and such purchaser or purchasers
shall not be obligated to see to the application of any part of the purchase
money paid over to the Collateral Agent or such officer or be answerable in any
way for the misapplication thereof.

                  Section 3.03. Securities Act, etc. In view of the position of
the Pledgors in relation to the Pledged Collateral, or because of other current
or future circumstances, a question may arise under the Securities Act of 1933,
as now or hereafter in effect, or any similar federal statute hereafter enacted
analogous in purpose or effect (such Act and any such similar statute as from
time to time in effect being called the "Federal Securities Laws") with respect
to any disposition of the Pledged Collateral permitted hereunder. Each Pledgor
understands that compliance with the Federal Securities Laws might very strictly
limit the course of conduct of the Collateral Agent if the Collateral Agent were
to attempt to dispose of all or any part of the Pledged Collateral, and might
also limit the extent to which or the manner in which any subsequent transferee
of any Pledged Collateral could dispose of the same. Similarly, there may be
other legal restrictions or limitations affecting the Collateral Agent

                                                                              15

in any attempt to dispose of all or part of the Pledged Collateral under
applicable Blue Sky or other state securities laws or similar laws analogous in
purpose or effect. Each Pledgor acknowledges and agrees that in light of such
restrictions and limitations, the Collateral Agent, in its sole and absolute
discretion, (a) may proceed to make such a sale whether or not a registration
statement for the purpose of registering such Pledged Collateral or part thereof
shall have been filed under the Federal Securities Laws or, to the extent
applicable, Blue Sky or other state securities laws and (b) may approach and
negotiate with a single potential purchaser to effect such sale. Each Pledgor
acknowledges and agrees that any such sale might result in prices and other
terms less favorable to the seller than if such sale were a public sale without
such restrictions. In the event of any such sale, the Collateral Agent shall
incur no responsibility or liability for selling all or any part of the Pledged
Collateral at a price that the Collateral Agent, in its sole and absolute
discretion, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might have
been realized if the sale were deferred until after registration as aforesaid or
if more than a single purchaser were approached. The provisions of this Section
3.03 will apply notwithstanding the existence of a public or private market upon
which the quotations or sales prices may exceed substantially the price at which
the Collateral Agent sells.

                  Section 3.04. Registration, etc. Each Pledgor agrees that,
upon the occurrence and during the continuance of an Event of Default, if for
any reason the Collateral Agent desires to sell any of the Pledged Collateral at
a public sale, it will, at any time and from time to time, upon the written
request of the Collateral Agent, use its commercially reasonable efforts to take
or to cause the issuer of such Pledged Collateral to take such action and
prepare, distribute and/or file such documents, as are required or advisable in
the reasonable opinion of counsel for the Collateral Agent to permit the public
sale of such Pledged Collateral. Each Pledgor further agrees to indemnify,
defend and hold harmless the Collateral Agent, the Administrative Agent, each
other Secured Party, any underwriter and their respective officers, directors,
affiliates and controlling persons from and against all loss, liability,
expenses, costs of counsel (including

                                                                              16

reasonable fees and expenses to the Collateral Agent of legal counsel), and
claims (including the costs of investigation) that they may incur insofar as
such loss, liability, expense or claim arises out of or is based upon any
alleged untrue statement of a material fact contained in any prospectus (or any
amendment or supplement thereto) or in any notification or offering circular, or
arises out of or is based upon any alleged omission to state a material fact
required to be stated therein or necessary to make the statements in any thereof
not misleading, except insofar as the same may have been caused by any untrue
statement or omission based upon information furnished in writing to such
Pledgor or the issuer of such Pledged Collateral by the Collateral Agent or any
other Secured Party expressly for use therein. Each Pledgor further agrees, upon
such written request referred to above, to use its commercially reasonable
efforts to qualify, file or register, or cause the issuer of such Pledged
Collateral to qualify, file or register, any of the Pledged Collateral under the
Blue Sky or other securities laws of such states as may be reasonably requested
by the Collateral Agent and keep effective, or cause to be kept effective, all
such qualifications, filings or registrations. Each Pledgor will bear all costs
and expenses of carrying out its obligations under this Section 3.04. Each
Pledgor acknowledges that there is no adequate remedy at law for failure by it
to comply with the provisions of this Section 3.04 and that such failure would
not be adequately compensable in damages and, therefore, agrees that its
agreements contained in this Section 3.04 only may be specifically enforced.

                                   ARTICLE IV

                                  Miscellaneous
                                  -------------

                  Section 4.01. Notices. All communications and notices
hereunder shall (except as otherwise expressly permitted herein) be in writing
and given as provided in Section 9.01 of the Credit Agreement. All
communications and notices hereunder to any Pledgor shall be given to it in care
of the U.S. Borrower, with such notice to be given as provided in Section 9.01
of the Credit Agreement.

                  Section 4.02. Security Interest Absolute. All rights of the
Collateral Agent hereunder, the security

                                                                              17

interest in the Pledged Collateral granted hereunder and all obligations of each
Pledgor hereunder shall be absolute and unconditional irrespective of (a) any
lack of validity or enforceability of the Credit Agreement, any other Loan
Document, any agreement with respect to any of the Foreign Obligations or any
other agreement or instrument relating to any of the foregoing, (b) any change
in the time, manner or place of payment of, or in any other term of, all or any
of the Foreign Obligations, or any other amendment or waiver of or any consent
to any departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument, (c) any exchange, release or non-perfection of any Lien
on other collateral, or any release or amendment or waiver of or consent under
or departure from any guarantee, securing or guaranteeing all or any of the
Foreign Obligations or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Pledgor in respect of
the Foreign Obligations or this Agreement.

                  Section 4.03. Survival of Agreement. All covenants,
agreements, representations and warranties made by the Pledgors in the Loan
Documents and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Agreement or any other Loan Document shall
be considered to have been relied upon by the Revolving Credit Lenders and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans and the issuance of any Letters of Credit, regardless of any investigation
made by any Lender or on its behalf and notwithstanding that the Administrative
Agent, the Collateral Agent, any Issuing Bank or any Lender may have had notice
or knowledge of any Default or Event of Default or incorrect representation or
warranty at the time any credit is extended under the Credit Agreement, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under any
Loan Document is outstanding and unpaid or any Letter of Credit is outstanding
and so long as the Commitments have not expired or terminated.

                  Section 4.04. Binding Effect; Several Agreement. This
Agreement shall become effective as to any party to this Agreement when a
counterpart hereof executed on behalf of such party shall have been delivered to
the

                                                                              17

Administrative Agent and a counterpart hereof shall have been executed on behalf
of the Collateral Agent, and thereafter shall be binding upon such party and the
Collateral Agent and their respective permitted successors and assigns, and
shall inure to the benefit of such party, the Collateral Agent and the other
Secured Parties and their respective permitted successors and assigns, except
that no party shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Pledged Collateral (and
any such assignment or transfer shall be void) except as expressly contemplated
by this Agreement or the Credit Agreement. This Agreement shall be construed as
a separate agreement with respect to each party and may be amended, modified,
supplemented, waived or released with respect to any party without the approval
of any other party and without affecting the obligations of any other party
hereunder.

                  Section 4.05. Successors and Assigns. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of any Pledgor or the
Collateral Agent that are contained in this Agreement shall bind and inure to
the benefit of their respective permitted successors and assigns.

                  Section 4.06. Collateral Agent's Fees and Expenses;
Indemnification. (a) The parties hereto agree that the Collateral Agent shall be
entitled to reimbursement of its expenses incurred hereunder as provided in
Section 9.05 of the Credit Agreement.

                  (b) Without limitation of its indemnification obligations
under the other Loan Documents, each Pledgor jointly and severally agrees to
indemnify the Collateral Agent and the other Indemnitees (as defined in Section
9.05 of the Credit Agreement) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses, including
reasonable counsel fees, charges and disbursements, incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i)
the execution, delivery or performance of this Agreement or any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto and

                                                                              19

thereto of their respective obligations thereunder or the consummation of the
Transactions and other transactions contemplated hereby, (ii) the use of
proceeds of the Loans or the use of any Letter of Credit or (iii) any claim,
litigation, investigation or proceeding relating to any of the foregoing, or to
the Pledged Collateral, whether or not any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of such
Indemnitee.

                  (c) Any such amounts payable as provided hereunder shall be
additional Foreign Obligations. The provisions of this Section 4.06 shall remain
operative and in full force and effect regardless of the termination of this
Agreement or any other Loan Document, the consummation of the transactions
contemplated hereby, the repayment of any of the Foreign Obligations, the
invalidity or unenforceability of any term or provision of this Agreement or any
other Loan Document, or any investigation made by or on behalf of the Collateral
Agent or any other Secured Party. All amounts due under this Section 4.06 shall
be payable on written demand therefor.

                  Section 4.07. Collateral Agent Appointed Attorney-in-Fact.
Each Pledgor hereby appoints the Collateral Agent the attorney-in-fact of such
Pledgor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment
is irrevocable and coupled with an interest. Without limiting the generality of
the foregoing, the Collateral Agent shall have the right, upon the occurrence
and during the continuance of an Event of Default, with full power of
substitution either in the Collateral Agent's name or in the name of such
Pledgor, (a) to receive, endorse, assign or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating
to the Pledged Collateral or any part thereof, (b) to demand, collect, receive
payment of, give receipt for and give discharges and releases of all or any of
the Pledged Collateral, (c) to ask for, demand, sue for,

                                                                              20

collect, receive and give acquittance for any and all moneys due or to become
due under and by virtue of any Pledged Collateral, (d) to sign the name of any
Pledgor on any invoice or bill of lading relating to any of the Pledged
Collateral, (e) to commence and prosecute any and all suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect or otherwise realize on all or any of the Pledged Collateral or to
enforce any rights in respect of any Pledged Collateral, (f) to settle,
compromise, compound, adjust or defend any actions, suits or proceedings
relating to all or any of the Pledged Collateral, and (g) to sell, assign,
transfer, pledge, make any agreement with respect to or otherwise deal with all
or any of the Pledged Collateral, and to do all other acts and things necessary
to carry out the purposes of this Agreement, as fully and completely as though
the Collateral Agent were the absolute owner of the Pledged Collateral for all
purposes; provided that nothing herein contained shall be construed as requiring
or obligating the Collateral Agent to make any commitment or to make any inquiry
as to the nature or sufficiency of any payment received by the Collateral Agent,
or to present or file any claim or notice, or to take any action with respect to
the Pledged Collateral or any part thereof or the moneys due or to become due in
respect thereof or any property covered thereby. The Collateral Agent and the
other Secured Parties shall be accountable only for amounts actually received as
a result of the exercise of the powers granted to them herein, and neither they
nor their officers, directors, employees or agents shall be responsible to any
Pledgor for any act or failure to act hereunder, except for their own gross
negligence or wilful misconduct.

                  Section 4.08. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                  Section 4.09. Waivers; Amendment. (a) No failure or delay by
the Applicable Agent, the Collateral Agent, any Issuing Bank or any Lender in
exercising any right, power or remedy hereunder or under any other Loan Document
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy, or any abandonment or discontinuance of steps
to

                                                                              21

enforce such a right, power or remedy, preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The rights, powers
and remedies of the Administrative Agent, the Collateral Agent, any Issuing Bank
and the Lenders hereunder and under the other Loan Documents are cumulative and
are not exclusive of any rights, powers or remedies that they would otherwise
have. No waiver of any provision of this Agreement or consent to any departure
by any Loan Party therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) of this Section 4.09, and then such waiver
or consent shall be effective only in the specific instance and for the purpose
for which given. Without limiting the generality of the foregoing, the making of
a Loan or the issuance of a Letter of Credit shall not be construed as a waiver
of any Default or Event of Default, regardless of whether the Administrative
Agent, the Collateral Agent, any Lender or any Issuing Bank may have had notice
or knowledge of such Default or Event of Default at the time. No notice or
demand on any Loan Party in any case shall entitle any Loan Party to any other
or further notice or demand in similar or other circumstances.

                  (b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Collateral Agent and the Loan Party or Loan Parties
with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.08 of the Credit
Agreement.

                  Section 4.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 4.10.

                                                                              22

                  Section 4.11. Severability. In the event any one or more of
the provisions contained in this Agreement or in any other Loan Document should
be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

                  Section 4.12. Counterparts. This Agreement may be executed in
two or more counterparts, each of which shall constitute an original but all of
which when taken together shall constitute but one contract, and shall become
effective as provided in Section 4.04.

                  Section 4.13. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.

                  Section 4.14. Jurisdiction; Consent to Service of Process. (a)
Each party to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or any other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such federal court. Each of the parties
hereto agrees 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. Nothing in this Agreement shall affect any
right that the Administrative Agent, the Collateral Agent, any Issuing Bank or
any Lender may otherwise have to bring any action or proceeding relating

                                                                              23

to this Agreement or any other Loan Document against any Pledgor, or its
properties, in the courts of any jurisdiction.

                  (b) Each party to this Agreement hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any New York State or federal court. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

                  (c) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 4.01. Nothing
in this Agreement or any other Loan Document will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

                  Section 4.15. Termination or Release. (a) This Agreement, the
pledge hereunder and all other security interests granted hereby and the pledge
hereunder shall terminate when all the Foreign Obligations have been
indefeasibly paid in full in cash and the Revolving Credit Lenders have no
further commitment to lend under the Credit Agreement and the Revolving L/C
Exposure has been reduced to zero.

                  (b) A Pledgor shall automatically be released from its
obligations hereunder and the security interests in the Pledged Collateral of
such Pledgor shall be automatically released upon the consummation of any
transaction permitted by the Credit Agreement as a result of which such Pledgor
ceases to be a subsidiary of Holdings; provided that the Required Lenders shall
have consented to such transaction (to the extent such consent is required by
the Credit Agreement) and the terms of such consent did not provide otherwise.

                  (c) Upon any sale or other transfer by any Pledgor of any
Pledged Collateral that is permitted under the Credit Agreement to any person
that is not a Pledgor, or upon the effectiveness of any written consent to the

                                                                              24

release of the security interest granted hereby in any Pledged Collateral
pursuant to Section 9.08 of the Credit Agreement, the security interest in such
Pledged Collateral shall be automatically released.

                  (d) In connection with any termination or release pursuant to
paragraph (a), (b) or (c) of this Section 4.15, the Collateral Agent shall
execute and deliver to any Pledgor, at such Pledgor's expense, all documents
that such Pledgor shall reasonably request to evidence such termination or
release. Any execution and delivery of documents pursuant to this Section 4.15
shall be without recourse to or warranty by the Collateral Agent.

                  Section 4.16. Additional Subsidiaries. Upon execution and
delivery by the Collateral Agent and any subsidiary that is required to become a
party hereto by Section 5.10 of the Credit Agreement of an instrument in the
form of Exhibit I hereto, such subsidiary shall become a Pledgor hereunder with
the same force and effect as if originally named as a Pledgor herein. The
execution and delivery of any such instrument shall not require the consent of
any other party to this Agreement. The rights and obligations of each party to
this Agreement shall remain in full force and effect notwithstanding the
addition of any new party to this Agreement.

                                                                              25

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

                             TRW AUTOMOTIVE ACQUISITION CORP.,

                                By   /s/ Neil P. Simpkins
                                  --------------------------------
                                  Name:  Neil P. Simpkins
                                  Title: President

                             EACH OF THE PLEDGORS LISTED
                             ON SCHEDULE I HERETO,

                                By   /s/ Neil P. Simpkins
                                  --------------------------------
                                  Name:  Neil P. Simpkins
                                  Title: President

                             JPMORGAN CHASE BANK, as COLLATERAL AGENT

                                By   /s/ Marian N. Schulman
                                  --------------------------------
                                  Name:  Marian N. Schulman
                                  Title: Vice President

                                                                     Schedule I
                                                              to the First-Tier
                                                    Subsidiary Pledge Agreement

                                    Pledgors

                                                                     Schedule II
                                                               to the First-Tier
                                                     Subsidiary Pledge Agreement

                                EQUITY INTERESTS

     Number of                               Number and        Percentage of
       Issuer            Registered       Class of Equity          Equity
     Certificate           Owner             Interest           Interests
     -----------           -----             --------           ---------

                                                                    Schedule III
                                                               to the First-Tier
                                                     Subsidiary Pledge Agreement

                                LIMITED LIABILITY
                                COMPANY INTERESTS

         Company Name                                           Interest
         ------------                                           --------

                                                                       Exhibit I
                                                               to the First-Tier
                                                     Subsidiary Pledge Agreement

                                    SUPPLEMENT NO. __ dated and effective as of
                           [        ] (this "Supplement"), to the First-Tier
                           Subsidiary Pledge Agreement dated and effective as of
                           February 28, 2003 (the "First-Tier Subsidiary Pledge
                           Agreement"), between [        ], a [Delaware]
                           [corporation], the U.S. Borrower and JPMORGAN CHASE
                           BANK, a New York banking corporation ("JPMCB"), as
                           Collateral Agent (in such capacity, the "Collateral
                           Agent") for the Secured Parties (as defined herein).

                  A. Reference is made to the Credit Agreement dated and
effective as of February 27, 2003 (as amended, supplemented, waived or otherwise
modified from time to time, the "Credit Agreement"), among TRW Automotive
Holdings Corp., TRW Automotive Intermediate Holdings Corp., the U.S. Borrower,
the Foreign Subsidiary Borrowers party thereto, the Lenders party thereto (the
"Lenders"), JPMCB, as Administrative Agent and Collateral Agent, Credit Suisse
First Boston, acting through its Cayman Islands Branch, Lehman Commercial Paper
Inc., and Deutsche Bank Securities Inc., as Co-Syndication Agents, and Bank of
America, N.A., as Documentation Agent.

                  B. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Credit Agreement
and the First-Tier Subsidiary Pledge Agreement referred to therein.

                  C. The Pledgors have entered into the First-Tier Subsidiary
Pledge Agreement in order to induce the Revolving Credit Lenders to make Loans.
Section 4.16 of the First-Tier Subsidiary Pledge Agreement provides that
additional Subsidiaries may become Pledgors under the First-Tier Subsidiary
Pledge Agreement by execution and delivery of an instrument in the form of this
Supplement. The undersigned Subsidiary (the "New Subsidiary") is executing this
Supplement in accordance with the requirements of the Credit Agreement to become
a Pledgor under the First-Tier Subsidiary Pledge Agreement in order

                                                                               2

to induce the Revolving Credit Lenders to make additional Loans and as
consideration for Loans previously made.

                  Accordingly, the Collateral Agent and the New Subsidiary agree
as follows:

                  SECTION 1. In accordance with Section 4.16 of the First-Tier
Subsidiary Pledge Agreement, the New Subsidiary by its signature below becomes a
Pledgor under the First-Tier Subsidiary Pledge Agreement with the same force and
effect as if originally named therein as a Pledgor and the New Subsidiary hereby
(a) agrees to all the terms and provisions of the First-Tier Subsidiary Pledge
Agreement applicable to it as a Pledgor thereunder and (b) represents and
warrants that the representations and warranties made by it as a Pledgor
thereunder are true and correct, in all material respects, on and as of the date
hereof. In furtherance of the foregoing, the New Subsidiary, as security for the
payment and performance in full of the Foreign Obligations (as defined in the
First-Tier Subsidiary Pledge Agreement), does hereby create and grant to the,
its successors and assigns, for the ratable benefit of the Secured Parties,
their successors and assigns, a security interest in and Lien on all the New
Subsidiary's right, title and interest in and to the Pledged Collateral (as
defined in the First-Tier Subsidiary Pledge Agreement) of the New Subsidiary.
Each reference to a "Pledgor" or "Pledgors" in the First-Tier Subsidiary Pledge
Agreement shall be deemed to include the New Subsidiary. The First-Tier
Subsidiary Pledge Agreement is hereby incorporated herein by reference.

                  SECTION 2. The New Subsidiary represents and warrants to the
Collateral Agent and the other Secured Parties that this Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms,
subject to (i) the effects of bankruptcy, insolvency, moratorium,
reorganization, fraudulent conveyance 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.

                  SECTION 3. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one contract. This Supplement shall become

                                                                               3

effective when (a) the Collateral Agent shall have received a counterpart of
this Supplement that bears the signature of the New Subsidiary and (b) the
Collateral Agent has executed a counterpart hereof.

                  SECTION 4. The New Subsidiary hereby represents and warrants
that (a) set forth on Schedule I attached hereto is a true and correct schedule
of all the Pledged Securities of the New Subsidiary and (c) set forth under its
signature hereto, is the true and correct legal name of the New Subsidiary, its
jurisdiction of formation and the location of its chief executive office.

                  SECTION 5. Except as expressly supplemented hereby, the
First-Tier Subsidiary Pledge Agreement shall remain in full force and effect.

                  SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 7. In the event any one or more of the provisions
contained in this Supplement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein and in the First-Tier Subsidiary Pledge Agreement
shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

                  SECTION 8. All communications and notices hereunder shall be
in writing and given as provided in Section 4.01 of the First-Tier Subsidiary
Pledge Agreement.

                  SECTION 9. The New Subsidiary agrees to reimburse the
Collateral Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, disbursements and other charges
of counsel for the Collateral Agent.

                                                                               4

                  IN WITNESS WHEREOF, the New Subsidiary and the have duly
executed this Supplement to the First-Tier Subsidiary Pledge Agreement as of the
day and year first above written.

                             [Name Of New Subsidiary],

                                By
                                  ----------------------------------------
                                  Name:
                                  Title:

                                Legal Name:

                                Jurisdiction of Formation:

                                Location of Chief Executive Office:

                              JPMORGAN CHASE BANK, as
                              COLLATERAL AGENT,

                                By
                                  ----------------------------------------
                                  Name:
                                  Title:

                                                                   Schedule I to
                                                               Supplement No. __
                                                               to the First-Tier
                                                     Subsidiary Pledge Agreement

                    Pledged Securities of the New Subsidiary
                    ----------------------------------------

                                EQUITY INTERESTS

     Number of                               Number and        Percentage of
       Issuer            Registered       Class of Equity          Equity
     Certificate           Owner             Interest           Interests
     -----------           -----             --------           ---------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

                                       i

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.

                                       2

     "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

                                       7

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 President

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