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                    TRW AUTOMOTIVE INTERMEDIATE HOLDING CORP.

                            SELLER SUBORDINATED NOTE

                                                               February 28, 2003
$600,000,000

         FOR VALUE RECEIVED, the undersigned, TRW AUTOMOTIVE INTERMEDIATE
HOLDING CORP. (the "Company"), a Delaware corporation, hereby unconditionally
promises to pay to the order of TRW AUTOMOTIVE SAFETY SYSTEMS INC., a Delaware
corporation or its assigns (including any assignee or transferee of, or other
permitted holder of, this Note, the "Seller") in lawful money of the United
States of America on February 28, 2018 (the "Maturity Date") the principal sum
of (a) SIX HUNDRED MILLION DOLLARS, plus (b) the PIK Interest Portion (as
defined herein) added to the principal amount of this Note pursuant to Section
2. The Company further hereby agrees to pay interest in like money on the unpaid
principal amount hereof from time to time outstanding at the rates and on the
dates specified in Section 2. This Note is referred to in, and was executed and
delivered in connection with, that certain Master Purchase Agreement, dated as
of November 18, 2002 (the "Master Purchase Agreement"), by and between Northrop
Grumman Corporation, a Delaware corporation, and BCP Acquisition Company L.L.C.,
a Delaware limited liability company ("BCP").

SECTION 1. DEFINITIONS.

         Unless otherwise defined herein, terms defined in the Master Purchase
Agreement and used herein shall have the meanings given to them in the Master
Purchase Agreement. The following terms shall have the respective meanings given
to them in this Section 1.

         "Bankruptcy Code" means the Bankruptcy Reform Act of 1978, as codified
under Title 11 of the United States Code, and the Bankruptcy Rules promulgated
thereunder, as the same may be in effect from time to time.

         "BCP" is defined in the first paragraph of this Note.

         "Capital Lease" means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

         "Change of Control" means a "Change of Control" under and as defined in
the Senior Subordinated Note Indentures that occurs at any time when TRW Auto is
Investment Grade.

         "Change of Control Offer" is defined in paragraph (b) of Section 3.3 of
this Note.

         "Change of Control Purchase Price" is defined in paragraph (a) of
Section 3.3 of this Note.

         "Company" is defined in the first paragraph of this Note.

         "Credit Agreement" means that certain Credit Agreement, dated as of the
date hereof, among Parent, the Company, TRW Auto, the lenders from time to time
party thereto, and JPMorgan Chase Bank, as administrative agent, together with
any Guaranties thereof by Parent or any of its subsidiaries, in each case, as
amended, restated, supplemented, waived, replaced (whether or not upon
termination and whether with the original lenders or otherwise), restructured,
refinanced, increased or otherwise modified from time to time.

         "Designated Senior Debt" means all payment obligations of the Company
under its guaranty of its subsidiaries obligations under the Credit Agreement,
the Senior Note Indentures, the Senior Subordinated Note Indentures and any
Receivables Financing.

         "Default" means an event or condition the occurrence or existence of
which would, with the lapse of time or the giving of notice or both, become an
Event of Default.

         "Dividend Event" means the date, if any, on which the Company shall pay
any dividend on or make any other distribution in respect of its Capital Stock
whether in cash, property or obligations of the Company, other than (a) a
dividend or other distribution payable solely in the form of its Capital Stock
and (b) any dividend or other distribution that is permitted, or equivalent (in
type, amount and purpose) to those permitted to be made by TRW Auto, under the
terms of the Credit Agreement, the Senior Note Indentures and the Senior
Subordinated Note Indentures.

         "Event of Default" is defined in Section 5.

         "GAAP" means generally accepted accounting principles as in effect from
time to time in the United States of America.

         "Governmental Authority" means (a) the government of the United States
of America or any State or other political subdivision thereof, or any
jurisdiction in which the Company conducts all or any part of its business, or
which asserts jurisdiction over any properties of the Company, or (b) any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.

         "Guaranty" means, with respect to any Person, any obligation (except
the endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Indebtedness, dividend or other obligation of any other Person in any manner,
whether directly or indirectly, including, without limitation, obligations
incurred through an agreement, contingent or otherwise, by such Person:

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              (a) to purchase such Indebtedness or obligation or any property
         constituting security therefor;

              (b) to advance or supply funds (1) for the purchase or payment of
         such Indebtedness or obligation, or (2) to maintain any working capital
         or other balance sheet condition or any income statement condition of
         any other Person or otherwise to advance or make available funds for
         the purchase or payment of such Indebtedness or obligation;

              (c) to lease properties or to purchase properties or services
         primarily for the purpose of assuring the owner of such Indebtedness or
         obligation of the ability of any other Person to make payment of the
         Indebtedness or obligation; or

              (d) otherwise to assure the owner of such Indebtedness or
         obligation against loss in respect thereof.

In any computation of the Indebtedness or other liabilities of the obligor under
any Guaranty, the Indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

         "Indebtedness" with respect to any Person means, at any time, without
duplication,

              (a) its liabilities for borrowed money;

              (b) all its liabilities in respect of letters of credit or
         instruments serving a similar function issued or accepted for its
         account by banks and other financial institutions (whether or not
         representing obligations for borrowed money);

              (c) all obligations of such Person under any swap, cap, collar or
         similar arrangement providing for protection against fluctuations in
         interest rates, currency exchange rates or commodities prices; and

              (d) any Guaranty of such Person with respect to liabilities of a
         type described in any of clauses (a) through (e) hereof.

         "Insolvency Proceeding" means (a) any case, action, or proceeding
before any court or other Governmental Authority having jurisdiction over the
applicable Person or its assets relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up, or relief of
debtors or (b) any general assignment for the benefit of creditors, composition,
marshaling of assets for creditors, or other similar arrangement in respect of
its creditors generally or any substantial portion of its creditors; in each
case whether undertaken under Federal (including the Bankruptcy Code), state, or
foreign law.

         "Interest Payment Date" means (a) at any time prior to the occurrence
of a Dividend Event, each December 31 of each year and (b) at any time after the
occurrence

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of a Dividend Event, each March 31, June 30, September 30 and December 31 of
each year.

         "Interest Rate" means (a) for the period from and after the date hereof
to and including the Rating Date, a rate of interest equal to 8.00% per annum,
and (b) for the period after the Rating Date, a rate of interest equal to 10.00%
per annum.

         "Investment Grade" means, with respect to TRW Auto, that the then
lowest debt credit rating assigned to any outstanding debt securities of TRW
Auto by Moody's is at least Baa3 and by S&P is at least BBB-.

         "Master Purchase Agreement" is defined in the first paragraph of this
Note.

         "Maturity Date" is defined in the first paragraph of this Note.

         "Moody's" means Moody's Investors Service, Inc.

         "Permitted Junior Securities" means debt or equity securities of the
Company or any successor corporation issued pursuant to a plan of reorganization
or readjustment of the Company that are subordinated to the payment of all
then-outstanding Senior Debt at least to the same extent that this Note is
subordinated to the payment of all Senior Debt on the Closing Date, so long as
to the extent that any holder of Designated Senior Debt outstanding on the date
of consummation of any such plan of reorganization or readjustment is not
indefeasibly paid in full in cash on such date, the holders of such Designated
Senior Debt not so paid in full in cash have consented to the terms of such plan
of reorganization or readjustment.

         "Person" means an individual, partnership, corporation, limited
liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

         "PIK Interest Portion" is defined in Section 2 of this Note.

         "Rating Date" means the first date on or after the fifth anniversary of
the Closing Date on which TRW Auto is Investment Grade.

         "Receivables Financing" means any transaction or series of transactions
that may be entered into by TRW Auto or any of its subsidiaries pursuant to
which TRW Auto or any of its subsidiaries may sell, convey or otherwise transfer
to a Person formed for the purpose of engaging in such transaction or series of
transactions, or may grant a security interest in, any accounts receivable
(whether now existing or arising in the future) of TRW Auto or any of its
subsidiaries, and any assets related thereto including, without limitation, all
collateral securing such accounts receivable, all contracts and all guarantees
or other obligations in respect of such accounts receivable, proceeds of such
accounts receivable and other assets which are customarily transferred or in
respect of

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which security interests are customarily granted in connection with asset
securitization transactions involving accounts receivable.

         "S&P" means Standard and Poor's Ratings Group.

         "Senior Debt" means all payment obligations (whether now outstanding or
hereafter incurred) of the Company in respect of (a) Indebtedness of the Company
(including, without limitation, in respect of any guaranty of any Indebtedness
of any of its subsidiaries) other than (1) this Note and (2) any Indebtedness
that by its terms is expressly subordinated to this Note, (b) interest
(including default interest) and premium on the outstanding Indebtedness
referred to in clause (a) above, (c) the fees and commissions (including
commitment, agency and letter of credit fees and commissions) payable pursuant
to the Senior Debt Agreements, (d) all other payment obligations (including
costs, expenses, penalties, indemnifications, damages, liabilities or otherwise
on the Company or any of its subsidiaries) owing under or arising pursuant to
the Senior Debt Agreements not of the type described in clauses (a) through (c)
above, and (e) post-petition interest on the Indebtedness referred to in clauses
(a) through (d) above accruing subsequent to the commencement of a proceeding
under the Bankruptcy Code (whether or not such interest is allowed as a claim in
such proceeding). Without limiting the foregoing, Senior Debt shall include all
Designated Senior Debt.

         "Senior Debt Agreement" means each instrument or agreement evidencing
or governing the Indebtedness referred to in clause (a) of the definition of
Senior Debt.

         "Senior Debt Default" means any default or event of default by the
Company or any of its subsidiaries under any Senior Debt Agreement.

         "Senior Debt Representatives" means with respect to any Senior Debt
Agreement, the lead agent or trustee for the lenders and/or creditors
thereunder.

         "Senior Note Indentures" means each of the Indentures entered into by
TRW Auto and its subsidiaries on the date hereof in connection with the issuance
of its 9.375% Senior Notes due 2013 and its 10.125% Senior Notes due 2013 and
any Guaranties of the foregoing by the Company or any of its subsidiaries.

         "Senior Subordinated Note Indentures" means each of the Indentures
entered into by TRW Auto and its subsidiaries on the date hereof in connection
with the issuance of its 11.00% Senior Subordinated Notes due 2013 and its
11.75% Senior Subordinated Notes due 2013 and any Guaranties thereof by the
Company or any of its subsidiaries.

         "Subordinated Obligation" is defined in the first paragraph of Section
7 of this Note.

         "TRW Auto" means TRW Automotive Acquisition Corp., a Delaware
corporation.

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         "Voidable Transfer" is defined in Section 7.8 of this Note.

SECTION 2. INTEREST.

         Interest shall accrue on a daily basis from the date hereof until this
Note is paid in full on the unpaid principal amount of this Note outstanding
from time to time at the Interest Rate (computed on the basis of a 365- or
366-day year for the actual number of days elapsed) and shall be payable on each
Interest Payment Date. Notwithstanding the foregoing, at any time prior to a
Dividend Event, at the option of the Company, interest on this Note may be paid
in kind and not in cash or other property. On each Interest Payment Date,
accrued interest that is then unpaid and that has not been previously added to
the principal amount of this Note shall be added to the principal amount of this
Note and amounts so added (the "PIK Interest Portion"); shall thereafter be
deemed to be a part of the principal amount of this Note provided, however, that
interest accruing on and after a Dividend Event shall be payable in cash on each
Interest Payment Date occurring after such Dividend Event to such account (or
other location) as Seller directs the Company in writing (it being understood
that any interest accruing prior to the date of such Dividend Event shall be
added to the principal amount of this Note on the first Interest Payment Date
occurring after such date in accordance with this Section 2).

SECTION 3. PAYMENTS.

Section 3.1 Scheduled Payments.

              (a) Except in accordance with the provisions of Section 3.2 and
         3.3, this Note shall not be subject to any required prepayment prior to
         the Maturity Date.

              (b) On the Maturity Date, the Company shall pay the then
         outstanding principal amount of this Note together with accrued
         interest thereon.

         Section 3.2 Investment Grade Prepayment. If, at any time on or after
the date that is five years after the Closing Date, TRW Auto shall become
Investment Grade, the Company shall on February 28, 2015 (or, if later, the date
that is five Business Days after the date that TRW Auto first becomes Investment
Grade) prepay 100% of the principal amount of this Note then outstanding,
together with accrued interest thereon but without any premium or penalty.
Section 3.3 Change of Control Put.

              (a) Upon a Change of Control, Seller shall have the right to
         require the Company to repurchase this Note at a purchase price in cash
         equal to 100% of the outstanding principal amount thereof on the date
         of repurchase, plus accrued and unpaid interest to the date of
         repurchase but without any premium or penalty (the "Change of Control
         Purchase Price"), in accordance with the terms contemplated in this
         Section 3.3. In the event that at the time of such Change of Control
         the

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         terms of the Indebtedness under any Senior Debt Agreement restrict or
         prohibit the repurchase of this Note (or a dividend or distribution by
         TRW Auto to the Company in an amount sufficient to make such
         repurchase), then prior to the mailing of the notice to Seller provided
         for in paragraph (b) of this Section 3.3 but in any event within 60
         days following any Change of Control, the Company shall, or shall cause
         TRW Auto to, (i) repay in full all Indebtedness under all such Senior
         Debt Agreements or (ii) obtain the requisite consent under all such
         Senior Debt Agreements to permit the repurchase of this Note (or a
         dividend or distribution by TRW Auto to the Company in an amount
         sufficient to make such repurchase), as provided for in paragraph (b)
         of this Section 3.3.

              (b) Within 60 days following any Change of Control, the Company
         shall mail a notice to Seller (the "Change of Control Offer") stating:

                   (i) that a Change of Control has occurred and that Seller has
              the right to require the Company to purchase this Note at the
              Change of Control Purchase Price;

                   (ii) the circumstances and relevant facts regarding such
              Change of Control;

                   (iii) the repurchase date (which shall be no earlier than 10
              days nor later than 30 days from the date such notice is mailed);
              and

                   (iv) the instructions determined by the Company consistent
              with this Section, that Seller must follow in order to have this
              Note purchased.

              (c) If Seller elects to have this Note purchased it shall be
         required to inform the Company and surrender this Note at the address
         specified in the notice at least three Business Days prior to the
         purchase date. Seller shall be entitled to withdraw its election if the
         Company receives not later than one Business Day prior to the purchase
         date a telegram, telex, facsimile transmission or letter setting forth
         a statement that Seller is withdrawing its election to have this Note
         purchased.

              (d) On the purchase date, the Company shall pay the Change of
         Control Purchase Price to Seller.

              (e) Notwithstanding the foregoing provisions of this Section 3.3,
         the Company shall not be required to make a Change of Control Offer
         upon a Change of Control if a third party makes the Change of Control
         Offer in the manner, at the times and otherwise in compliance with the
         requirements set forth in paragraph (b) of this Section 3.3, applicable
         to a Change of Control Offer made by the Company and purchases this
         Note validly tendered and not withdrawn under such Change of Control
         Offer.

                                       7

         Section 3.4 Optional Prepayment. Subject to Section 7, the Company may,
at its option, upon notice as provided below, prepay at any time all, or from
time to time any part of, this Note at 100% of the principal amount so prepaid,
plus accrued but unpaid cash interest through the prepayment date with respect
to such principal amount but without any premium or penalty. The Company will
give Seller written notice of each optional prepayment under this Section 3.4
not less than five Business Days prior to the date fixed for such prepayment.
Each such notice shall specify the date fixed for prepayment, the aggregate
principal amount of this Note to be prepaid on such date, and the interest to be
paid on such date with respect to such principal amount being prepaid.

         Section 3.5 Payment Dates. Whenever any payment of interest or
principal under this Note is stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and any
such additional days elapsed shall be reflected in the computation of the
interest payable on such next succeeding Business Day. Section 3.6 Maturity,
Surrender, etc. In the case of each prepayment of this Note pursuant to this
Section 3, the principal amount of this Note to be prepaid shall mature and
become due and payable on the date fixed for such prepayment, together with
interest on such principal amount accrued to such date. From and after such
date, unless the Company shall fail to pay such principal amount when so due and
payable, together with the interest, if any, as aforesaid, interest on such
principal amount shall cease to accrue.

SECTION 4. COVENANTS.

         The Company covenants that so long as this Note is outstanding:

         Section 4.1 Asset Sales. The Company shall not distribute the proceeds
of any sale or other disposition of any of its assets or the assets of any of
its subsidiaries (other than assets sold in the ordinary course of business) to
the holders of its Capital Stock by means of a dividend or other distribution in
respect of such Capital Stock.

         Section 4.2 Affiliate Transactions. The Company shall not enter into
any contract, arrangement or other transaction with any direct or indirect
holders of its Capital Stock or any of their affiliates (other than its
subsidiaries) without the unanimous approval of the Executive Committee of the
Board of Directors of the Company; provided, however, that the payment of
dividends or other distributions in respect of the Capital Stock of the Company
shall not be subject to the requirements of this Section 4.2. For the avoidance
of doubt, nothing in this Section 4.2 shall be deemed to restrict any direct or
indirect holder of the Capital Stock of the Company or any of their affiliates
from entering into any contract, arrangement or other transaction with any
subsidiary of the Company.

                                       8

SECTION 5. EVENTS OF DEFAULT.

         An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

              (a) the Company defaults in the payment of any principal on this
         Note when the same becomes due and payable, whether at maturity or at a
         date fixed for prepayment; or

              (b) the Company defaults in the payment of any cash interest on
         this Note for more than 30 days after the same becomes due and payable;
         or

              (c) the Company defaults in the performance of or compliance with
         any of its agreements in Section 4 and such failure continues for 60
         days;

              (d) the acceleration of any Designated Senior Debt by the holders
         thereof; or

              (e) the Company or TRW Auto (1) files, or consents by answer or
         otherwise to the filing against it of, a petition for relief or
         reorganization or arrangement or any other petition in bankruptcy,
         seeking to adjudicate it as a bankrupt or insolvent, for liquidation or
         to take advantage of any bankruptcy, insolvency, reorganization,
         moratorium or other similar law of any jurisdiction, (2) makes a
         general assignment for the benefit of its creditors, or (3) consents to
         the appointment of a custodian, receiver, trustee or other officer with
         similar powers with respect to it or with respect to any substantial
         part of its property; or

              (f) a court or Governmental Authority of competent jurisdiction
         enters an order appointing, without consent by the Company or TRW Auto,
         a custodian, receiver, trustee or other officer with similar powers
         with respect to it or with respect to any substantial part of its
         property, or constituting an order for relief or approving a petition
         for relief or reorganization or any other petition in bankruptcy or for
         liquidation or to take advantage of any bankruptcy or insolvency law of
         any jurisdiction, or ordering the dissolution, winding-up or
         liquidation of the Company or TRW Auto, or petition for any action
         (including, without limitation, a petition in bankruptcy or seeking to
         adjudicate the Company or TRW Auto as a bankrupt of insolvent) shall be
         filed against the Company or TRW Auto and such petition shall not be
         dismissed within 60 days.

SECTION 6. REMEDIES ON DEFAULT, ETC.

Section 6.1 Acceleration.

              (a) If an Event of Default with respect to the Company described
         in paragraph (e) or (f) of Section 5 has occurred, this Note then shall
         automatically become immediately due and payable.

                                       9

              (b) If any Event of Default (other than as described in paragraph
         (a) of this Section 6.1) has occurred and is continuing, Seller may, at
         any time at its option by notice to the Company declare this Note to be
         immediately due and payable.

         Upon this Note becoming due and payable under this Section 6.1, whether
automatically or by declaration, this Note will forthwith mature and the entire
unpaid principal amount of this Note, plus all accrued and unpaid interest,
shall all be immediately due and payable, in each and every case without
presentment, demand, protest or further notice, all of which are hereby waived.

         Section 6.2 Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether this Note has become or
has been declared immediately due and payable under Section 6.1, Seller may,
subject to Section 7, proceed to protect and enforce its rights by an action at
law, suit in equity or other appropriate proceeding, whether for the specific
performance of any agreement contained herein, or for an injunction against a
violation of any of the terms hereof, or in aid of the exercise of any power
granted hereby or by law or otherwise.

         Section 6.3 Rescission. At any time after this Note has been declared
due and payable pursuant to paragraph (b) of Section 6.1, Seller, by written
notice to the Company, may (but in no event shall be obligated to) rescind and
annul any such declaration and its consequences if (a) the Company has paid all
overdue interest on this Note and all principal of this Note that is due and
payable and is unpaid other than by reason of such declaration, (b) all Defaults
and Events of Default, other than non-payment of amounts that have become due
solely by reason of such declaration, have been cured or have been waived
pursuant to Section 8, and (c) no judgment or decree has been entered for the
payment of any monies due pursuant hereto. No rescission and annulment under
this Section 6.3 will extend to or affect any subsequent Default or Event of
Default or impair any right consequent thereon.

         Section 6.4 No Waivers or Election of Remedies, Expenses, Etc. No
right, power or remedy conferred by this Note upon Seller shall be exclusive of
any other right, power or remedy referred to herein or now or hereafter
available at law, in equity, by statute or otherwise. The Company will pay to
Seller on demand such further amount as shall be sufficient to cover all
reasonable costs and expenses of Seller incurred in any enforcement or
collection under this Section 6, including, without limitation, reasonable
attorneys' fees, expenses and disbursements.

SECTION 7. SUBORDINATION.

         Anything in this Note to the contrary notwithstanding, Seller and each
subsequent holder of this Note by its acceptance hereof covenants and agrees
that the payment of the principal of and interest on this Note and all other
amounts payable by the Company under or in respect of this Note (all of the
foregoing, the "Subordinated Obligations")

                                       10

shall, to the extent set forth in this Section 7, be subordinate and junior and
subject in right of payment to the prior indefeasible payment in full in cash of
all Senior Debt.

         Section 7.1 Payments. No payment or distribution (whether directly, by
purchase or redemption by right of set-off or otherwise in respect of this Note,
whether as principal, interest or otherwise, and whether in cash, securities or
property) shall be made by or on behalf of the Company or received and retained,
directly or indirectly, by or on behalf of Seller unless and until all Senior
Debt has been indefeasibly paid in full in cash to the holders of the Senior
Debt. Notwithstanding the immediately preceding sentence, the Company may (a)
make payments of interest in kind under this Note when due and payable pursuant
to Section 2, (b) make any such payment or distribution so long as no Senior
Debt Default exists on the date of such payment or would result from the making
of such payment and (c) make any such payment or distribution without regard to
the foregoing if the Company receives the written consent of the requisite
holders of the Designated Senior Debt (or any duly authorized Senior Debt
Representative).

         Section 7.2 Insolvency; Bankruptcy; Etc.

              (a) In the event of the institution of any Insolvency Proceeding
         relative to the Company, then

                   (i) the holders of Senior Debt shall be entitled to receive
              payment in full in cash of all Senior Debt before Seller is
              entitled to receive any payment in respect of the Subordinated
              Obligations; and

                   (ii) any payment or distribution of any kind or character,
              whether in cash, property or securities, by setoff or otherwise,
              which may be payable or deliverable in such proceedings in respect
              of the Subordinated Obligations shall (notwithstanding any other
              provision of this Note, including Section 7.1) be paid or
              delivered by the Person making such payment or distribution,
              whether a trustee in bankruptcy, a receiver, a liquidating
              trustee, or otherwise, directly to the holders of the Senior Debt
              to the extent necessary to make payment in full in cash of all
              Senior Debt remaining unpaid.

              (b) If Seller does not file a proper claim or proof of claim or
         other document or amendment thereof in the form required in any
         Insolvency Proceeding relative to the Company under applicable law
         prior to 15 days before the expiration of time to file such claim or
         other document or amendment thereof, then the holders of the Designated
         Senior Debt shall have the right (but not the obligation) in such
         Insolvency Proceeding, and hereby irrevocably are appointed lawful
         attorney of Seller for the purpose of enabling the holders of such
         Senior Debt, to file and prove all claims therefor and to execute and
         deliver all documents in such proceeding in the name of Seller or in
         the name of the holders of such Senior Debt or otherwise in respect of
         such claims, as the holders of such Senior Debt reasonably may
         determine to be necessary or appropriate to

                                       11

         effectuate the foregoing, provided, that the holders of such Senior
         Debt shall act in a commercially reasonable manner and shall notify
         Seller prior to commencing the first of any such actions.

         Section 7.3 Standstill. Until the Senior Debt is paid in full in cash,
Seller shall (notwithstanding the provisions of Section 6) be prohibited from
accelerating this Note and shall be prohibited from enforcing any of its default
remedies with respect thereto (including any right to sue the Company or to file
or participate in the filing of an involuntary bankruptcy petition against the
Company), except that this Section 7.3 shall (a) not prevent automatic
acceleration of this Note under Section 6.1(a) or prohibit the filing of a
proper claim or proof of debt or other document or amendment thereof required in
any Insolvency Proceeding or (b) not prevent Seller from accelerating this Note
pursuant to Section 6.1(b) upon the first to occur of (a) the 270th day after
(i) the due date of the prepayment required pursuant to Section 3.2 or the
Maturity Date, as applicable, has occurred, (ii) the date on which the Senior
Debt Representative with respect to any Designated Senior Debt or any holder of
Designated Senior Debt commences a judicial proceeding to collect any Designated
Senior Debt or commences to realize upon any collateral for any such Designated
Senior Debt pursuant to the exercise of remedies or gives notice of any
non-judicial sale of any such collateral or (iii) the occurrence of an Event of
Default, unless such Event of Default has been cured or waived in accordance
herewith, and, in any case, Seller has delivered notice thereof to each Senior
Debt Representative in respect of any outstanding Designated Senior Debt, or (b)
the date on which any payment of any Designated Senior Debt is accelerated.

         Section 7.4 No Impairment. (a) No right of any present or future holder
of Senior Debt to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any non-compliance by the Company with the terms, provisions
and covenants of this Note, regardless of any knowledge thereof Seller may have
or be otherwise charged with.

              (b) Without in any way limiting the generality of the foregoing
         paragraph, the holders of the Senior Debt may, at any time and from
         time to time, without the consent of or notice to Seller, without
         incurring responsibility and without impairing or releasing the
         subordination provided in this Section 7, do any one or more of the
         following: (1) change the manner, place or terms of payment or extend
         the time of payment of, or renew, amend, modify, or alter, any Senior
         Debt or any Senior Debt Agreement evidencing the same or evidencing,
         governing, creating, guaranteeing or securing any Senior Debt; (2)
         sell, exchange, release, or otherwise deal with any property pledged,
         mortgaged or otherwise securing Senior Debt; (3) release any Person
         liable in any manner for the collection of Senior Debt; (4) fail or
         delay in the perfection of Liens securing the Senior Debt, (5) exercise
         or refrain from exercising any rights against the Company and any other
         Person (including, without limitation, actions with respect to the
         foreclosure upon, sale, release or failure to realize upon, any of its
         collateral, and actions with respect to the collection of any claim for
         all or any part of the Senior Debt from any account debtor or any other
         Person, regardless of whether any such actions or

                                       12

         omissions may affect the rights of the holders of the Senior Debt to a
         deficiency) and (6) from time to time enter into agreements and
         settlements with the Company as it may determine, including, without
         limitation, any substitution of collateral, any release of any Lien and
         any release of the Company.

         Section 7.5 Relative Rights. The provisions of this Section 7 are for
the purpose of defining the relative rights of the holders of Senior Debt on the
one hand, and Seller on the other hand, and nothing herein shall impair, as
between the Company and Seller, the obligation of the Company, which is
unconditional and absolute, to pay to Seller the principal hereof and interest
hereon in accordance with the terms and provisions of this Note, subject to the
rights, if any, of holders of Senior Debt under this Section 7. The fact that
failure to make any payment on account of the Subordinated Obligations is caused
by reason of the operation of any provision of this Section 7 shall not be
construed as preventing the occurrence of an Event of Default.

         Section 7.6 Subrogation. Upon payment in full in cash of all Senior
Debt, Seller shall, to the extent of any payments or distributions paid or
delivered to the holders of the Senior Debt or otherwise applied to the Senior
Debt pursuant to the provisions of this Section 7, be subrogated to the rights
of the holders of the Senior Debt to receive payments or distributions of assets
of the Company made on Senior Debt (and any security therefor) until the
Subordinated Obligations shall be paid in full in cash, and, for the purposes of
such subrogation, no payments to the holders of Senior Debt of any cash, assets,
stock, or obligations to which Seller would be entitled except for the
provisions of this Section 7 shall, as between the Company, its creditors (other
than the holders of the Senior Debt), and Seller, be deemed to be a payment by
the Company to or on account of Senior Debt.

         Section 7.7 Turnover of Payments. If, notwithstanding the provisions of
this Section 7, any payment or distribution of any character (whether in cash,
securities or other property) or any security shall be received by Seller in
contravention of this Section 7 and before all Senior Debt shall have been paid
in full in cash, after giving effect to, and application of, all payments and
distributions received by holders of Senior Debt from any other source, such
payment, distribution or security shall be held in trust for the benefit of, and
shall be immediately paid over or delivered or transferred to, the holders of
Senior Debt (or any duly authorized Senior Debt Representative) for application
of payment according to the priorities of such Senior Debt and ratably among the
holders of any class of Senior Debt (except that Seller may receive and retain
Permitted Junior Securities).

         Section 7.8 Recoveries; Reinstatement. If a claim is made upon any
holder or holders of Senior Debt for repayment or recovery of any amount (a
"Voidable Transfer") on account of any Senior Debt under any Federal, state or
foreign law, whether by reason of preference, fraudulent conveyance, or
otherwise and if such holder or holders of Senior Debt repay all or a portion of
such amounts by reason of (a) any judgment, decree, or order of any court or
administrative body having jurisdiction over such holder or

                                       13

holders, or (b) any settlement or compromise of any claim effected by such
holder or holders based upon the reasonable advice of counsel, then, as to the
amount that has been repaid, the provisions of this Section 7 automatically
shall be reinstated and restored and the amount so repaid shall constitute
Senior Debt entitled to the benefits of this Section 7 as if such Voidable
Transfer never had been made.

         Section 7.9 Reliance by Holders of Senior Debt. The provisions of this
Section 7 shall constitute a continuing offer to all Persons who become holders
of Senior Debt, and such provisions are made for the benefit of, and may be
enforced directly by, holders of Senior Debt, who hereby are expressly stated to
be intended beneficiaries of this Section 7, whether or not they actually relied
thereon. Seller covenants that it will not enter into any amendment or
modification of the provisions of this Section 7 (and the related definitions)
without having obtained the prior written consent of the holders of the
Designated Senior Debt. No right of a holder of Senior Debt to enforce the
provisions of this Section 7 shall be impaired by any act or failure to act by
Seller or by the failure of the Seller to comply with the terms of this Note.

         Section 7.10 Payments to Senior Debt Representative. Any payment or
distribution to be paid or delivered to the holders of the Senior Debt under the
provisions of this Section 7 may be paid or delivered to one or more Senior Debt
Representatives for such holders. Seller shall be entitled to rely on the
delivery to it of a written notice purported to be signed on behalf of an
officer or representative of any Senior Debt Representatives believed by it in
good faith to be genuine to establish the identity of such Senior Debt
Representatives, the amount of the outstanding Senior Debt and other matters
relevant to the provisions of this Section 7.

SECTION 8. AMENDMENT AND WAIVER.

         Section 8.1 Requirements. Subject to Section 7.9, this Note may be
amended, and the observance of any term hereof may be waived (either
retroactively or prospectively), with (and only with) the written consent of the
Company and Seller.

         Section 8.2 Binding Effect, Etc. Any amendment or waiver consented to
as provided in this Section 8 is binding upon Seller, each subsequent holder of
this Note and upon the Company without regard to whether this Note has been
marked to indicate such amendment or waiver. No such amendment or waiver will
extend to or affect any obligation, covenant, agreement, Default or Event of
Default not expressly amended or waived or impair any right consequent thereon.
No course of dealing between the Company and Seller nor any delay in exercising
any rights hereunder shall operate as a waiver of any rights of Seller. As used
herein, the term "this Note" and references hereto shall mean this Note as it
may from time to time be amended or supplemented.

                                       14

SECTION 9. NOTICES.

         All notices and communications provided for hereunder shall be in
writing and sent (a) by facsimile if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), or (b) by registered or certified mail with return receipt
requested (postage prepaid) or (c) by a recognized overnight delivery service
(with charges prepaid). Any such notice must be sent:

              (1) if to Seller, to it at 1840 Century Park East Los Angeles,
         California 90067 (facsimile: 310-556-4558) to the attention of Vice
         President and General Counsel, or at such other address as Seller shall
         have specified to the Company in writing,

              (2) if to any subsequent holder of this Note, to such holder at
         such address as such other holder shall have specified to the Company
         in writing, or

              (3) if to the Company, to the Company, to it at 12025 Tech Center
         Drive Livonia, Michigan 48150 (facsimile: 734-266-4590) to the
         attention of General Counsel, or at such other address as the Company
         shall have specified to Seller in writing.

Notices under this Section 9 will be deemed given only when actually received.

SECTION 10. MISCELLANEOUS.

         Section 10.1 Successors and Assigns. All covenants and other agreements
contained in this Note by or on behalf of any of the parties hereto bind and
inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent permitted holder of this Note) whether so
expressed or not. Notwithstanding the foregoing, Seller may not assign all or
any portion of this Note (a) prior to February 28, 2004, or (b) at any time on
or after February 28, 2004, (i) without the prior written consent of the Company
(such consent not to be unreasonably withheld) or (ii) to any Person in a
principal amount of less than $50,000,000. Any attempted assignment of all or
any portion of the Note in violation of this Section 10.1 shall be null and
void.

         Section 10.2 Severability. Any provision of this Note that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction.

         Section 10.3 Construction. Each covenant contained in this Note shall
be construed (absent express provision to the contrary) as being independent
of each other covenant contained herein, so that compliance with any one
covenant shall not (absent

                                       15

such an express contrary provision) be deemed to excuse compliance with any
other covenant. Where any provision in this Note refers to action to be taken by
any Person, or which such Person is prohibited from taking, such provision shall
be applicable whether such action is taken directly or indirectly by such
Person.

         Section 10.4 Integration. This Note embodies the entire agreement and
understanding between the Company and Seller and supersedes all prior agreements
and understandings relating to the subject matter hereof.

         Section 10.5 GOVERNING LAW. THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

                                       TRW AUTOMOTIVE INTERMEDIATE HOLDING CORP.

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

                                       16<PAGE>

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

                                PANAVISION INC.,
                                   AS BORROWER

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

                                   $10,000,000

                              AMENDED AND RESTATED
                            LINE OF CREDIT AGREEMENT

                           Dated as of August 13, 2003

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

                       MACANDREWS & FORBES HOLDINGS INC.,

                                    AS LENDER

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

<PAGE>

                                TABLE OF CONTENTS

                                                                         Page
                                                                         ----

SECTION 1. DEFINITIONS......................................................1
   1.1.      Defined Terms..................................................1
   1.2.      Other Definition Provisions....................................5

SECTION 2. AMOUNT AND TERMS OF COMMITMENT...................................5
   2.1.      The Commitment.................................................5
   2.2.      Procedure for Borrowing........................................5
   2.3.      Voluntary Termination or Reduction of the Commitment...........6
   2.4.      Repayment of Loans; Evidence of Debt...........................6
   2.5.      Use of Proceeds................................................6

SECTION 3. PROVISIONS RELATING TO THE LOANS.................................6
   3.1.      Optional Prepayments...........................................6
   3.2.      Mandatory Prepayments..........................................6
   3.3.      Interest Rate and Payment Dates................................7
   3.4.      Method of Payments.............................................7

SECTION 4. REPRESENTATIONS AND WARRANTIES...................................8
   4.1.      Corporate Existence............................................8
   4.2.      Corporate Power................................................8
   4.3.      No Legal Bar to Loans..........................................8

SECTION 5. CONDITIONS PRECEDENT.............................................8
   5.1.      Conditions to Initial Loan.....................................8
   5.2.      Conditions to Each Loan........................................9

SECTION 6. EVENTS OF DEFAULT................................................9
   6.1.      Events of Default..............................................9

SECTION 7. MISCELLANEOUS...................................................11
   7.1.      Amendments and Waivers........................................11
   7.2.      Notices.......................................................11
   7.3.      No Waiver; Cumulative Remedies................................12
   7.4.      Survival of Representations and Warranties....................12
   7.5.      Payment of Expenses; General Indemnity........................12
   7.6.      Successors and Assigns........................................13
   7.7.      Counterparts..................................................13
   7.8.      Severability..................................................13
   7.9.      Integration...................................................13
   7.10.     GOVERNING LAW.................................................13
   7.11.     Submission To Jurisdiction; Waivers...........................13
   7.12.     WAIVERS OF JURY TRIAL.........................................14

<PAGE>

                                                                    Exhibit 4.13

                              AMENDED AND RESTATED
                            LINE OF CREDIT AGREEMENT

     AMENDED AND RESTATED LINE OF CREDIT AGREEMENT, dated as of August 13, 2003,
between PANAVISION INC., a Delaware corporation (the "Borrower"), and MACANDREWS
& FORBES HOLDINGS INC., a Delaware corporation (the "Lender").

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

     WHEREAS, the Borrower and the Lender entered into the Line of Credit
Agreement, dated as of February 3, 2003, (as amended by the First Amendment,
dated as of March 27, 2003, the "Existing Agreement"), pursuant to which the
Lender agreed to extend credit on a senior unsecured basis in order to enable
the Borrower, subject to the terms and conditions of the Existing Agreement, to
borrow, on a revolving basis, at any time and from time to time in an aggregate
principal amount at any time outstanding not to exceed $4,000,000;

     WHEREAS, the Borrower has requested the Lender (i) to extend the Maturity
Date under the Existing Agreement to August 31, 2006 and (ii) to increase the
Commitment under the Existing Agreement to an aggregate principal amount at any
one time outstanding of up to $10,000,000;

     WHEREAS, the Lender is willing to provide for an extension to the Maturity
Date and for an increase of the Commitment under the Existing Agreement as
requested by the Borrower only on the terms and subject to the conditions set
forth herein;

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

     SECTION 1. DEFINITIONS

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

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

<PAGE>

                                                                               2

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

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

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

     "Bank Commitment" means the Total Revolving Credit Commitments under (and
as such term is defined in) the Bank Credit Agreement.

     "Bank Credit Agreement" means the Credit Agreement, dated as of May 28,
1998, by and among the Borrower, the several banks and other financial
institutions from time to time parties thereto, the Arranger named therein, the
Documentation Agent named therein, and JPMorgan Chase Bank, as Administrative
Agent, as amended, supplemented and otherwise modified through the date hereof
and as further amended, supplemented and otherwise modified from time to time.

     "Bank Letter of Credit" means a letter of credit issued under the Bank
Credit Agreement.

     "Bank Revolving Loan" means a Revolving Credit Loan made under (and as such
term is defined in) the Bank Credit Agreement.

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

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

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

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

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

     "Commitment" means the obligation of the Lender to make Loans to the
Borrower hereunder in an aggregate principal amount at any one time outstanding
of up

<PAGE>

                                                                               3

to $10,000,000, as such obligation is reduced from time to time in accordance
with Section 2.3 hereof.

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

     "Contractual Obligation" means, with respect to any Person, any provision
of any material debt security or of any material preferred stock or other equity
interest issued by such Person or of any material indenture, mortgage,
agreement, guarantee, instrument or undertaking to which such Person is a party
or by which it or any of its material property is bound.

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

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

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

     "Effective Date" is defined in Section 5.1 hereof.

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

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

<PAGE>

                                                                               4

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

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

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

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

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

     "Maturity Date" means August 31, 2006.

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

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

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

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

<PAGE>

                                                                               5

     1.2. Other Definition Provisions.

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

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

     SECTION 2. AMOUNT AND TERMS OF COMMITMENT

     2.1. The Commitment.

          (a) Subject to the terms and conditions hereof, the Lender agrees to
make revolving loans ("Loans") in Dollars to the Borrower from time to time
during the Commitment Period with an aggregate amount of principal outstanding
at any one time not to exceed the amount of the Commitment then in effect;
provided, that no Loan shall be made unless, as of the date it is made, the Bank
Commitment has been substantially drawn after giving effect to any Bank
Revolving Loans to be made, and any Bank Letters of Credit to be issued, under
the Bank Credit Agreement substantially concurrently with such Loan.

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

     2.2. Procedure for Borrowing.

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

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

<PAGE>

                                                                               6

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

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

     2.4. Repayment of Loans; Evidence of Debt.

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

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

     2.5. Use of Proceeds. The Borrower shall use the proceeds of the Loans
hereunder to provide working capital for the Borrower and its Subsidiaries and
for other general corporate purposes. Such use may include repaying Bank
Revolving Loans if the Bank Commitment continues to be substantially drawn after
giving effect to such repayment of Bank Revolving Loans, and to any Bank
Revolving Loans to be made, and to any Bank Letters of Credit to be issued,
under the Bank Credit Agreement substantially concurrently with such repayment.

     SECTION 3. PROVISIONS RELATING TO THE LOANS

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

     3.2. Mandatory Prepayments. (a) If, at any time, the aggregate outstanding
principal amount of the Loans exceeds the Commitment then in effect, the

<PAGE>

                                                                               7

Borrower shall immediately repay the principal amount of the Loans in an amount
equal to such excess.

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

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

     3.3. Interest Rate and Payment Dates.

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

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

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

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

     3.4. Method of Payments.

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

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

<PAGE>

                                                                               8

     SECTION 4. REPRESENTATIONS AND WARRANTIES

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

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

     4.2. Corporate Power.

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

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

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

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

     SECTION 5. CONDITIONS PRECEDENT

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

<PAGE>

                                                                               9

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

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

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

          (a) Utilization of the Bank Credit Agreement. As of the Borrowing
Date, the Bank Commitment shall have been substantially drawn after giving
effect to any Bank Revolving Loans to be made, and any Bank Letters of Credit to
be issued, under the Bank Credit Agreement substantially concurrently with such
Loan.

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

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

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

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

     SECTION 6. EVENTS OF DEFAULT

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

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

<PAGE>

                                                                              10

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

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

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

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

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

<PAGE>

                                                                              11

provided above in this Section 6.1, presentment, demand, protest and all other
notices of any kind are hereby expressly waived.

     SECTION 7. MISCELLANEOUS

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

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

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

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

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

                                                                              12

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

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

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

     7.5. Payment of Expenses; General Indemnity. The Borrower agrees (a) to pay
or reimburse the Lender for all of its reasonable out-of-pocket attorneys' fees
and expenses incurred in connection with the preparation, execution and delivery
of, and any amendment, supplement or modification to, this Agreement and any
other documents prepared in connection herewith, and the consummation of the
transactions contemplated hereby and thereby, (b) to pay or reimburse the Lender
for all its reasonable out-of-pocket costs and expenses (including, without
limitation, reasonable attorneys' fees and expenses) incurred in connection with
the enforcement or preservation of any rights under this Agreement and any such
other documents, (c) to pay, indemnify, and to hold the Lender harmless from,
any and all recording and filing fees and any and all liabilities with respect
to, or resulting from any delay caused by the Borrower in paying, stamp, excise
and other similar taxes, if any, if legal, which may be payable or determined to
be payable in connection with the execution and delivery of, or consummation of
any of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, this Agreement
and any such other documents, and (d) to pay, indemnify, and hold harmless the
Lender from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever (including, without limitation, reasonable
attorneys' fees and expenses) with respect to the execution, delivery,
consummation, enforcement, performance and administration of this Agreement and
any such other documents (all of the foregoing, collectively, the "indemnified
liabilities"); provided that the Borrower shall have no obligation hereunder
with respect to indemnified liabilities arising from (i) the gross negligence or
willful misconduct of the Lender, (ii) legal proceedings commenced against the
Lender by any security holder or creditor thereof arising out of and based upon
rights afforded any such security holder or creditor solely in its capacity as
such or (iii) amounts of the types referred to in clauses (a) through (c) above
except as provided therein. The agreements in this Section 7.5 shall survive the
termination of the Commitment and the repayment of the Loans and all other
amounts payable hereunder.

<PAGE>

                                                                              13

     7.6. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the Borrower, the Lender and their respective successors and
permitted assigns and, except as set forth below, neither the Borrower nor the
Lender may assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of the other party. This Agreement,
or the Lender's obligations hereunder, may be assigned, delegated or
transferred, in whole or in part, by the Lender to any Affiliate of the Lender
over which the Lender or its Affiliates exercises investment authority,
including, without limitation, with respect to voting and dispositive rights
provided any such assignee assumes the obligations of the Lender hereunder and
agrees in writing to be bound by the terms of this Agreement in the same manner
as the Lender. Notwithstanding the foregoing, no such assignment shall relieve
the Lender of its obligations hereunder if such assignee fails to perform such
obligations. Without complying with the provisions of this Section 7.6, the
Lender may satisfy its obligations under Sections 2.1 or 2.2 hereof by causing
an Affiliate of the Lender to satisfy its obligations under such Sections.

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

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

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

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

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

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

<PAGE>

                                                                              14

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

          (c) agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to the Borrower at its
address set forth in Section 7.2 or at such other address of which the Lender
shall have been notified pursuant thereto;

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

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

          7.12. WAIVERS OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

                   Remainder of page intentionally left blank.

<PAGE>

                                                                              15

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

                                      PANAVISION INC.

                                      By:  /S/ BOBBY G. JENKINS
                                           ----------------------
                                           Name:  BOBBY G. JENKINS
                                           Title: EXECUTIVE VICE PRESIDENT AND
                                                  CHIEF FINANCIAL OFFICER

                                      MACANDREWS & FORBES HOLDINGS INC.

                                      By:  /S/ TODD J. SLOTKIN
                                           ----------------------
                                           Name:  TODD J. SLOTKIN
                                           Title: EXECUTIVE VICE PRESIDENT AND
                                                  CHIEF FINANCIAL OFFICER

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