Exhibit 10.1

 

EXECUTION VERSION

 

FIFTH AMENDMENT

 

FIFTH AMENDMENT, dated as of January 10, 2012 (this “Amendment”), to the Amended
and Restated Competitive Advance and Revolving Credit Agreement, dated as of
January 6, 2006 (as previously amended, the “Existing Credit Agreement”; as
amended by this Amendment, the “Credit Agreement”), among PHH Corporation, a
Maryland corporation (the “Borrower”), PHH Vehicle Management Services, Inc., a
Canadian corporation (the “Canadian Subsidiary 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 and Canadian Subsidiary Borrower;

 

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

 

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 Credit Agreement is
amended by adding the following definitions in alphabetical order:

 

“Existing Convertible Notes”:  the Convertible Notes and the 2014 Convertible
Notes.

 

“PHH Convertible Notes”: the Existing Convertible Notes and any other
convertible notes issued by the Borrower on terms customary for convertible
notes at the time of issuance, as determined by the Borrower.

 

“2014 Convertible Notes”:  the Borrower’s 4.0% Convertible Senior Notes due
2014.

 

(b)                                 Section 1 of the Credit Agreement is amended
by adding the following to the end of the definition of “Capital Stock”: “other
than Indebtedness convertible into or exchangeable for Capital Stock of the
Borrower”.

 

(c)                                  Section 6.1 of the Credit Agreement is
amended by adding the following to the end of such section: “For purposes of
this Section 6.1, the phrase “scheduled or mandatory principal

 

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maturities” shall not include conversion of any PHH Convertible Notes made at
the election of the holders thereof into common stock of the Borrower, cash or a
combination thereof.”

 

SECTION 3.                                Agreements with respect to Section
6.12.  For the avoidance of doubt, the Borrower and the Lenders agree that (i)
neither the entering into by the Borrower nor the performance by the Borrower of
its obligations thereunder of a customary call spread, capped call or similar
hedging arrangement with respect to any PHH Convertible Notes shall constitute a
Restricted Payment, (ii) scheduled and mandatory payments (including payments
following conversions made at the election of the holders thereof) made by the
Borrower under (x) the Existing Convertible Notes (and any indenture or similar
agreement therefor) as in effect on the Fifth Amendment Effective Date or (y)
other PHH Convertible Notes having payment and conversion provisions
substantially similar to those for the Existing Convertible Notes as in effect
on the Fifth Amendment Effective Date (as determined in good faith by the chief
financial officer or chief executive officer of the Borrower), are permitted by
Section 6.12(a) of the Credit Agreement and (iii) the conversion of PHH
Convertible Notes made at the election of the holders thereof into common stock
of the Borrower or cash or a combination thereof is permitted by Section 6.12(a)
of the Credit Agreement.

 

SECTION 4.                                      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 “Fifth Amendment
Effective Date”):

 

(a)          the Administrative Agent shall have received this Amendment,
executed and delivered by a duly authorized officer of (a) the Borrower, (b) the
Canadian Subsidiary Borrower and (c) the Required Lenders; and

 

(b)         the Administrative Agent shall have received evidence that all fees
payable by the Borrower on or before the Fifth Amendment Effective Date to the
Administrative Agent and the Lenders (or their affiliates) in connection with
this Amendment have been paid in full, including the fees and expenses of
counsel to the Administrative Agent.

 

SECTION 5.                                Payment of Fees.  The Borrower shall
pay to the Administrative Agent, for the account of the Administrative Agent and
consenting Lenders (or their respective affiliates), as applicable, on or before
the Fifth Amendment Effective Date all fees which the Borrower has agreed to pay
in connection with this Amendment on or prior to the Fifth Amendment Effective
Date, including fees and expenses of counsel to the Administrative Agent in
connection with this Amendment.

 

SECTION 6.                                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 Fifth Amendment Effective Date, each of the
representations and warranties set forth in Article 3 of the Credit Agreement
and in the other Fundamental Documents shall be true and correct in all material
respects on and as of the Fifth 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 Fifth Amendment Effective Date; and

 

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

 

SECTION 7.                                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

 

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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 8.                                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 and the Canadian Subsidiary Borrower that would require the
waiver or consent of the Administrative Agent or the Lenders.

 

SECTION 9.                                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 Fifth 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 10.                          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 11.                          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/ Mark E. Johnson

 

 

Name:  Mark E. Johnson

 

 

Title:    SVP and Treasurer

 

 

 

 

 

PHH VEHICLE MANAGEMENT SERVICES, INC., as the Canadian Subsidiary Borrower

 

 

 

By:

/s/ Mark E. Johnson

 

 

Name:  Mark E. Johnson

 

 

Title:    SVP and Treasurer

 

[PHH Corporation — Fifth 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 — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

Bank of America, N.A.

 

 

 

 

 

By:

/s/ William Soo

 

 

Name:  William Soo

 

 

Title:    Vice President

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

Citibank, N.A.

 

 

 

 

 

By:

/s/ Robert B. Goldstein

 

 

Name: Robert B. Goldstein

 

 

Title: Managing Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

Deutsche Bank AG New York Branch

 

 

 

 

 

By:

/s/ John S. McGill

 

 

Name: John S. McGill

 

 

Title: Director

 

 

 

 

 

 

 

By:

/s/ Virginia Cosenza

 

 

Name: Virginia Cosenza

 

 

Title: Vice President

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

The Royal Bank of Scotland plc

 

 

 

 

 

By:

/s/ James Welch

 

 

Name: James Welch

 

 

Title: Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

The Royal Bank of Scotland N.V.

 

 

 

 

 

By:

/s/ Bhavin Shah

 

 

Name: Bhavin Shah

 

 

Title: Managing Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

Manufacturers and Traders Trust Company

 

 

 

 

 

By:

/s/ Laurel LB Magruder

 

 

Name: Laurel LB Magruder

 

 

Title: Vice President

 

[PHH Corporation — Fifth Amendment]

 

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BARCLAYS BANK PLC

 

 

 

 

 

By:

/s/ Alicia Borys

 

 

Name: Alicia Borys

 

 

Title: Vice President

 

[PHH Corporation — Fifth Amendment]

 

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Wells Fargo Bank, N.A.

 

 

 

 

 

 

 

By:

/s/ Michael J. Giese

 

 

Name: Michael J. Giese

 

 

Title: Managing Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

WESTLB AG, NEW YORK BRANCH

 

 

 

 

 

 

By:

/s/ Laura A. Spichiger

 

 

Name: Laura A. Spichiger

 

 

Title: Executive Director

 

 

 

 

 

 

 

By:

/s/ Pui Chow

 

 

Name: Pui Chow

 

 

Title: Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

CIBC INC.

 

 

 

 

 

 

By:

/s/ Dominic J. Sorresso

 

 

Name: Dominic J. Sorresso

 

 

Title: Executive Director

 

 

 

 

 

 

 

By:

/s/ Michael Gewirtz

 

 

Name: Michael Gewirtz

 

 

Title: Executive Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

The Bank of New York Mellon

 

 

 

 

 

 

 

By:

/s/ Gregory Muller

 

 

Name: Gregory Muller

 

 

Title: Managing Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

The Bank of Nova Scotia

 

 

 

 

 

 

 

By:

/s/ David Schwartzbard

 

 

Name: David Schwartzbard

 

 

Title: Director

 

[PHH Corporation — Fifth Amendment]

 

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Name of Lender:

 

 

 

 

 

GOLDMAN SACHS LENDING PARTNERS LLC

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

 

Name: Michelle Latzoni

 

 

Title: Authorized Signatory

 

[PHH Corporation — Fifth Amendment]

 

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