Exhibit 10.1

 

FIRST AMENDMENT

 

FIRST AMENDMENT, dated as of July 29, 2013 (this “Amendment”), to the Amended
and Restated Credit Agreement, dated as of August 2, 2012 (the “Existing Credit
Agreement”; as amended by this Amendment, the “Credit Agreement”), among PHH
Corporation, a Maryland corporation (the “Borrower”), the lenders and agents
from time to time party thereto (the “Lenders”), and JPMorgan Chase Bank, N.A.,
as Administrative Agent.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Existing Credit Agreement, the Lenders have agreed to
make, and have made, certain loans and other extensions of credit to the
Borrower;

 

WHEREAS, the Borrower has requested certain amendments to the Existing Credit
Agreement as more fully set forth herein; and

 

WHEREAS, the Lenders have agreed to such amendments but only on the terms and
conditions contained in this Amendment;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

SECTION 1.                            Defined Terms.  Unless otherwise defined
herein, capitalized terms are used herein as defined in the Credit Agreement
unless the context otherwise requires.

 

SECTION 2.                            Amendments.

 

(a)         Section 1 of the Existing Credit Agreement is amended by adding the
following definitions in alphabetical order:

 

“Medium Term Notes” shall mean the Borrower’s (i) 7.850% Callable InterNotes due
April 15, 2018 in the aggregate principal amount of $4,126,000 and (ii) 7.650%
Callable InterNotes due April 15, 2018 in the aggregate principal amount of
$3,777,000.

 

“2014 Convertible Notes Escrow Account” shall mean the escrow account to be
established by the Borrower with any Lender whom the Borrower elects in its sole
discretion from time to time.  The terms of the escrow arrangements shall
provide that the Borrower may deposit up to $150,000,000 in the 2014 Convertible
Notes Escrow Account and may withdraw amounts from the 2014 Convertible Notes
Escrow Account solely to pay, redeem or purchase the 2014 Convertible Notes and
pay related interest and premiums (it being understood and agreed that the
Borrower may transfer all or any portion of such deposit from an escrow account
with one Lender to an escrow account with another Lender at any time).

 

(b)         Section 1 of the Existing Credit Agreement is further amended by
adding the phrase “(less the balance in the 2014 Convertible Notes Escrow
Account at such time)” immediately after the phrase “Unsecured Indebtedness” in
the definition of “Borrowing Base Compliance”.

 

(c)          Section 1 of the Existing Credit Agreement is further amended by
adding the phrase “(including, for purposes hereof, the balance in the 2014
Convertible Notes Escrow Account at such time)” immediately after the phrase
“wholly-owned Subsidiaries” in the definition of “Minimum Liquidity”.

 

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(d)         Section 6.7 of the Existing Credit Agreement is amended by adding
the phrase “(less the balance in the 2014 Convertible Notes Escrow Account at
such time)” immediately after the word “Indebtedness”.

 

(e)          Section 6.12(a) of the Existing Credit Agreement is amended by
adding the phrase “the Borrower,” immediately before the phrase “any Material
Subsidiary”.

 

(f)           Section 6.12(a)(ii) of the Existing Credit Agreement is amended by
replacing the phrase “the Specified Senior Notes” with the phrase “the Medium
Term Notes”.

 

(g)          Section 6.12(a)(iv) of the Existing Credit Agreement is amended by
replacing clause (D) with the following:

 

(D)       the aggregate outstanding principal amount of the 2014 Convertible
Notes less the balance in the 2014 Convertible Notes Escrow Account is no more
than $100,000,000;

 

(h)         Section 6.12(d) of the Existing Credit Agreement is amended by
(i) adding the phrase “(including related interest and premiums)” immediately
after the phrase “any such Indebtedness” and (ii) deleting the phrase
“substantially similar terms” and replacing it with the phrase “terms not
materially more restrictive, in the aggregate, than the terms in such
Indebtedness being refinanced (as determined in good faith by a financial
officer of the Borrower)”.

 

(i)             Section 6 of the Existing Credit Agreement is amended by adding
the following new Section 6.16:

 

SECTION 6.16.   2014 Convertible Notes Escrow Account.

 

Until the 2014 Convertible Notes have been paid in full, utilize any amounts in
the 2014 Convertible Notes Escrow Account other than to pay, redeem or purchase
the 2014 Convertible Notes and pay related interest and premiums.

 

SECTION 3.                                  Conditions to Effectiveness.  This
Amendment shall become effective upon the date on which each of the following
shall have occurred (the date of effectiveness, the “First Amendment Effective
Date”):

 

(a)         the Administrative Agent shall have received this Amendment,
executed and delivered by a duly authorized officer of (i) the Borrower and
(ii) the Required Lenders; provided the amendment set forth in
Section 2(b) shall not be effective unless the Supermajority Lenders have
executed and delivered this Amendment; and

 

(b)         the Administrative Agent shall have received the Acknowledgment and
Confirmation substantially in the form of Exhibit A attached hereto executed and
delivered by each Loan Party.

 

SECTION 4.                            Representations and Warranties.  The
Borrower hereby represents and warrants to the Administrative Agent and each
Lender that (before and after giving effect to this Amendment):

 

(a)         as of the First Amendment Effective Date, each of the
representations and warranties set forth in Article 3 of the Credit Agreement
(other than those set forth in Section 3.18 of the Credit Agreement) and in the
other Fundamental Documents shall be true and correct in all material respects
(except to the extent any representations are qualified by materiality, in which
case, such representations shall be true in all respects) on and as of the First
Amendment Effective Date (except to the extent that such representations and
warranties expressly relate to an earlier date in which case the Borrower hereby
confirms, reaffirms and restates such representations and warranties as of such
earlier date) with the same effect as if made on and as of the First Amendment
Effective Date; and

 

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(b)         there does not exist any Default or Event of Default.

 

SECTION 5.                            Payment of Expenses.  The Borrower agrees
to pay or reimburse the Administrative Agent for all of its reasonable and
invoiced out-of-pocket costs and expenses incurred in connection with this
Amendment, any other documents prepared in connection herewith and the
transactions contemplated hereby, including, without limitation, the reasonable
and invoiced fees and disbursements of counsel to the Administrative Agent.

 

SECTION 6.                            No Other Amendment or Waivers;
Confirmation.  Except as expressly provided hereby, all of the terms and
provisions of the Existing Credit Agreement and the other Fundamental Documents
are and shall remain in full force and effect.  The amendments contained herein
shall not be construed as an amendment of any other provision of the Existing
Credit Agreement or the other Fundamental Documents or for any purpose except as
expressly set forth herein or a consent to any further or future action on the
part of the Borrower that would require the waiver or consent of the
Administrative Agent or the Lenders.

 

SECTION 7.                            GOVERNING LAW; WAIVER OF JURY TRIAL;
MISCELLANEOUS.

 

(a)                                 THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(b)                                 EACH PARTY HERETO HEREBY AGREES AS SET FORTH
IN SECTION 10.11 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN
FULL HEREIN.

 

(c)                                  On and after the First Amendment Effective
Date, each reference in the Existing Credit Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein”, or words of like import referring to the
Existing Credit Agreement, and each reference in the other Fundamental Documents
to the “Credit Agreement”, “thereunder”, “thereof”, or words of like import
referring to the Credit Agreement shall mean and be a reference to the Credit
Agreement.

 

(d)                                 This Amendment may be executed by one or
more of the parties to this Amendment on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. A set of the copies of this Amendment signed by all the
parties shall be lodged with the Borrower and the Administrative Agent.  This
Amendment may be delivered by facsimile or electronic transmission of the
relevant signature pages hereof.  This Amendment shall constitute a Fundamental
Document.

 

(e)                                  The execution and delivery of this
Amendment by any Lender shall be binding upon each of its successors and assigns
(including assignees of its Loans in whole or in part prior to effectiveness
hereof).

 

SECTION 8.                            Severability.  If any provision of this
Amendment shall be determined to be illegal or invalid as to one or more of the
parties hereto, then such provision shall remain in effect with respect to all
parties, if any, as to whom such provision is neither illegal nor invalid, and
in any event all other provisions hereof shall remain effective and binding on
the parties hereto.

 

SECTION 9.                            Headings.  Section headings used herein
are for convenience of reference only, are not part of this Amendment and shall
not affect the construction of, or be taken into consideration in interpreting,
this Amendment.

 

[Signature Pages Follow]

 

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

 

 

 

PHH CORPORATION, as the Borrower

 

 

 

 

By:

/s/ Richard J. Bradfield

 

 

Name:

Richard J. Bradfield

 

 

Title:

Senior Vice President and Treasurer

 

[PHH Corporation — First Amendment]

 

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JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent and as a Lender

 

 

 

 

By:

/s/ Richard J. Poworoznek

 

 

Name:

Richard J. Poworoznek

 

 

Title:

Executive Director

 

[PHH Corporation — First Amendment]

 

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Bank of America, N.A.

 

 

 

 

 

By:

/s/ William Soo

 

 

Name:

William Soo

 

 

Title:

Vice President

 

[PHH Corporation — First Amendment]

 

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Citibank, N.A.

 

 

 

 

 

By:

/s/ Robert B. Goldstein

 

 

Name:

Robert B. Goldstein

 

 

Title:

Managing Director

 

[PHH Corporation — First Amendment]

 

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Manufacturers and Traders Trust Company

 

 

 

 

 

By:

/s/ Paul G. Rishar

 

 

Name:

Paul G. Rishar

 

 

Title:

Vice President

 

[PHH Corporation — First Amendment]

 

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The Royal Bank of Scotland plc

 

 

 

 

 

By:

/s/ James Welch

 

 

Name:

James Welch

 

 

Title:

Director

 

[PHH Corporation — First Amendment]

 

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WELLS FARGO BANK, N.A.

 

 

 

 

 

By:

/s/ Grainne M. Pergolini

 

 

Name:

Grainne M. Pergolini

 

 

Title:

Director

 

[PHH Corporation — First Amendment]

 

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BARCLAYS BANK PLC

 

 

 

 

 

 

By:

/s/ Alicia Borys

 

 

Name:

Alicia Borys

 

 

Title:

Vice President

 

[PHH Corporation — First Amendment]

 

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DEUTSCHE BANK AG NEW YORK BRANCH

 

 

 

 

 

 

By:

/s/ Virginia Cosenza

 

 

Name:

Virginia Cosenza

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

By:

/s/ Ming K. Chu

 

 

Name:

Ming K. Chu

 

 

Title:

Vice President

 

[PHH Corporation — First Amendment]

 

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Royal Bank of Canada

 

 

 

 

 

 

 

By:

 /s/ Greg DeRise

 

 

Name:

Greg DeRise

 

 

Title:

Authorized Signatory

 

[PHH Corporation — First Amendment]

 

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THE BANK OF NOVA SCOTIA

 

 

 

 

 

 

 

By:

/s/ David Mahmood

 

 

Name:

David Mahmood

 

 

Title:

Managing Director

 

[PHH Corporation — First Amendment]

 

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THE BANK OF NEW YORK MELLON, as a Lender

 

 

 

 

 

 

By:

/s/ Gregory Muller

 

 

Name:

Gregory Muller

 

 

Title:

Managing Director

 

[PHH Corporation — First Amendment]

 

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Canadian Imperial Bank of Commerce, New York Agency

 

 

 

 

 

 

By:

/s/ Dominic Sorresso

 

 

Name:

Dominic Sorresso

 

 

Title:

Authorized Signatory

 

 

 

 

 

 

 

By:

/s/ Jonathan J. Kim

 

 

Name:

Jonathan J. Kim

 

 

Title:

Authorized Signatory

 

[PHH Corporation — First Amendment]

 

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Goldman Sachs Bank USA

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

 

Name:

Michelle Latzoni

 

 

Title:

Authorized Signatory

 

[PHH Corporation — First Amendment]

 

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EXHIBIT A

 

FORM OF ACKNOWLEDGEMENT AND CONFIRMATION

 

Reference is made to the First Amendment, dated as of July 29, 2013 (the “First
Amendment”), which amends the Amended and Restated Credit Agreement, dated as of
August 2, 2012 (as amended, supplemented or otherwise modified prior to giving
effect to the First Amendment, the “Credit Agreement”), among PHH Corporation, a
Maryland corporation (the “Borrower”), the lenders and agents from time to time
party thereto (the “Lenders”), and JPMorgan Chase Bank, N.A., as the
administrative agent (the “Administrative Agent”).

 

The Credit Agreement is being amended pursuant to the First Amendment (the
“Amended Credit Agreement”) as described therein.  Each of the parties hereto
hereby agrees, with respect to each Fundamental Document to which it is a party,
all of its obligations, liabilities and indebtedness under such Fundamental
Document shall remain in full force and effect on a continuous basis after
giving effect to the First Amendment.

 

THIS ACKNOWLEDGEMENT AND CONFIRMATION AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS ACKNOWLEDGEMENT AND CONFIRMATION SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

This Acknowledgement and Confirmation may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single document.  Delivery of an executed counterpart of a signature page of
this Acknowledgement and Confirmation by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart
of this Acknowledgement and Confirmation.

 

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

 

 

PHH CORPORATION

 

PHH MORTGAGE CORPORATION

 

PHH BROKER PARTNER CORPORATION

 

PHH VEHICLE MANAGEMENT SERVICES, LLC

 

FIRST FLEET CORPORATION

 

PHH CARIBBEAN LEASING, INC.

 

CENTER FOR TRANSPORTATION SAFETY, LLC

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

PHH VEHICLE MANAGEMENT SERVICES GROUP LLC

 

 

 

By: PHH Corporation, its Member

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

[PHH Corporation – First Amendment Acknowledgement and Confirmation]

 

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