Exhibit 10.1

 

EXECUTION COPY

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT (“Agreement”) is made as of the 21st
day of March, 2014, by and between THE BANK OF NOVA SCOTIA (the “Agent”), as
agent, each of the financial institutions party hereto (the “Lenders”) and PHH
VEHICLE MANAGEMENT SERVICES INC. (the “Borrower”).

 

WHEREAS the Agent, Lenders and Borrower are parties to a Credit Agreement dated
as of September 25, 2012, as amended pursuant to an amendment to credit
agreement made as of May 10, 2013 (as amended, the “Credit Agreement”).

 

AND WHEREAS the Borrower wishes to reduce the Credit Facility from $125,000,000
to $25,000,000;

 

AND WHEREAS, having regard to the reduced size of the Credit Facility, the
Borrower wishes to reduce the number of Lenders;

 

AND WHEREAS the parties have agreed to the reduction of the Credit Facility and
number of Lenders on the basis set out herein;

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

1.                                      Definitions.  Unless the context shall
otherwise require, capitalized terms used and not defined herein (including the
preamble and recitals above and the consent attached hereto) shall have the
meanings ascribed thereto in the Credit Agreement.

 

2.                                      Amendments.  The Credit Agreement is
amended as follows:

 

(a)                                 (i) Recital A, (ii) the definition of
“Credit Facility” in Section 1.1, and (iii) Section 2.1(1) are each amended by
deleting each reference to “$125,000,000” and replacing it with “$25,000,000”;

 

(b)                                 (i) The definition of “Borrowing Base” in
Section 1.1, and (ii) Section 2 of Schedule K- Borrowing Base Certificate are
each amended by deleting each reference to “$50,000,000” and replacing it with
reference to “$10,000,000”; and

 

(c)                                  Schedule E to the Credit Agreement is
amended by replacing it with Schedule E attached hereto.

 

3.                                      Reduction of Lenders.  Effective the
date hereof, (i) the Commitments of the Lenders other than Scotiabank (the
“Exiting Lenders”) are terminated, (ii) the Exiting Lenders shall cease to be
parties to the Credit Agreement and (iii) each of the Exiting Lenders shall be
released from its obligations under the Credit Agreement, but shall continue to
be

 

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entitled to the benefits of Sections 3 and 9 of the Provisions and shall
continue to be liable for any breach of the Credit Agreement by such Exiting
Lender, with respect to facts and circumstances occurring prior to the date of
this Agreement.

 

4.                                      Conditions Precedent to Effectiveness of
this Agreement. This Agreement shall become binding on the Agent and Lenders
only upon satisfaction of the following conditions precedent:

 

(a)                                 execution and delivery of this Agreement by
each of the parties hereto and acknowledgment and consent by the Guarantor; and

 

(b)                                 payment of Facility Fees accrued up to and
including the date hereof.

 

5.                                      Representations and Warranties.  To
induce the Agent and the Lenders to enter into this Agreement, the Borrower
represents and warrants as specified below:

 

(a)                                 that all representations and warranties
contained in the Credit Agreement and the PHH Guaranty are true, correct and
complete in all material respects on and as of the date hereof, other than
representations and warranties that relate solely to an earlier date, in which
case, such representations and warranties are true and correct as of such
earlier date;

 

(b)                                 the entering into and performance by it of
this Agreement (i) have been duly authorized by all necessary corporate action
on its part, and (ii) do not and will not violate its Constating Documents, any
Applicable Law, any Material Permit or any Material Contract to which it is a
party;

 

(c)                                  this Agreement constitutes a legal, valid
and binding obligation of the Borrower enforceable against it in accordance with
its terms, subject to the availability of equitable remedies and the effect of
bankruptcy, insolvency and similar laws affecting the rights of creditors
generally; and

 

(d)                                 no Event of Default or Pending Event of
Default has occurred and is continuing on the date hereof.

 

Each representation and warranty made in this Agreement shall survive the
execution and delivery of this Agreement.

 

6.                                      General.

 

(a)                                 No Waiver.  Nothing contained in this
Agreement shall be construed or interpreted or is intended as a waiver of any
rights, powers, privileges or remedies that the Agent or the Lenders have or may
have under the Credit Agreement and the other Loan Documents.

 

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(b)                                 Effect of Amendments.  All terms and
conditions of the Credit Agreement and the other Loan Documents remain in full
force and effect unless, and only to the extent, otherwise specifically amended
pursuant to the terms of this Agreement. Without limiting the foregoing, the
Borrower hereby affirms that all Security granted by it remains in full force
and effect, unamended.

 

(c)                                  Counterparts.  This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered (including by facsimile transmission or “PDF”) shall be
an original, but all such counterparts shall together constitute but one and the
same instrument. The delivery of a facsimile or pdf copy of an executed
counterpart of this Agreement shall be deemed to be valid execution and delivery
of this Agreement, but the party delivering a facsimile or pdf copy shall
deliver an original copy of this Agreement as soon as possible after delivering
the facsimile or pdf copy.

 

(d)                                 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 thereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

 

(e)                                  Further Assurances.  At the request of the
Agent, the Borrower shall do all such further acts and execute and deliver all
such further documents as may, in the reasonable opinion of the Agent, be
necessary or desirable in order to fully perform and carry out the purpose and
intent of this Agreement.

 

(f)                                   Law.  This Agreement shall be a contract
made under and governed by the laws of the Province of Ontario and the laws of
Canada applicable in the Province of Ontario.

 

(g)                                  Successors.  This Agreement shall be
binding upon the parties hereto and their respective successors and permitted
assigns, and shall enure to the benefit of the parties hereto and their
successors and permitted assigns.  The Borrower shall not assign its rights or
duties hereunder.

 

(h)                                 Expenses.  Without limiting its obligations
set out in the Credit Agreement and the other Loan Documents, the Borrower shall
pay all reasonable out-of-pocket expenses incurred by the Agent (including the
reasonable fees, charges and disbursements of counsel to the Agent) in
connection with this Agreement.

 

[SIGNATURES ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment to
Credit Agreement as of the date set out on the first page hereof.

 

 

 

PHH VEHICLE MANAGEMENT SERVICES

 

INC./PHH SERVICES DE GESTION DE

 

VEHICULES INC.

 

 

 

 

 

Per:

/s/ Richard J. Bradfield

 

 

Name:

Richard J. Bradfield

 

 

Title:

SVP & Treasurer

 

S1

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THE BANK OF NOVA SCOTIA, as Agent

 

 

 

 

 

Per:

/s/ Robert Boomhour

 

 

Name:

Robert Boomhour

 

 

Title:

Director

 

S2

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THE BANK OF NOVA SCOTIA, as Lender

 

 

 

 

 

Per:

/s/ David Mahmood

 

 

Name:

David Mahmood

 

 

Title:

Managing Director

 

S3

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CANADIAN IMPERIAL BANK OF

 

COMMERCE

 

 

 

 

 

Per:

/s/ Sheryl Holmes

 

 

Name:

Sheryl Holmes

 

 

Title:

Managing Director

 

 

 

 

 

Per:

/s/ ViktoriyaGruzytska

 

 

Name:

ViktoriyaGruzytska

 

 

Title:

Executive Director

 

S4

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M&T BANK

 

 

 

 

 

Per:

/s/ Catharine Ackerson

 

 

Name:

Catharine Ackerson

 

 

Title:

Vice President

 

 

Commercial Banking

 

S5

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ROYAL BANK OF CANADA

 

 

 

 

 

Per:

/s/ Patrizia Lloyd

 

 

Name:

Patrizia Lloyd

 

 

Title:

Authorized Signatory

 

S6

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CONSENT

 

As guarantor, the undersigned hereby consents to the preceding amendment to the
Credit Agreement (the “Amendment”) and confirms that the PHH Guaranty remains in
full force and effect and that the Guaranteed Obligations as defined in the PHH
Guaranty include all present and future debts, liabilities and obligations of
the Borrower under or in connection with the Credit Agreement as amended by the
Amendment.

 

 

PHH CORPORATION

 

 

 

 

 

Per:

/s/ Richard J. Bradfield

 

 

Name:

Richard J. Bradfield

 

 

Title:

SVP & Treasurer

 

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Schedule E
APPLICABLE PERCENTAGES OF LENDERS

 

[see references in Section 1.1]

 

Lender

 

Aggregate Commitment
(Credit Facility)

 

The Bank of Nova Scotia

 

$

25,000,000

 

 

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