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Exhibit 10.1    
    


CONFORMED COPY 


AMENDED AND RESTATED COMPETITIVE ADVANCE AND

REVOLVING CREDIT AGREEMENT

  


Dated
as of March 4, 1997, as amended

and restated through July 3, 2003 


among



PHH
CORPORATION 


as
Borrower 


and 


THE
LENDERS REFERRED TO HEREIN 


and



JPMORGAN
CHASE BANK, as Administrative Agent 


J.P.
MORGAN SECURITIES INC., 


as
Lead Arranger and Bookrunner 






 


 
 

Table of Contents    
    



	 
	 
	 
	 	Page

	1.	DEFINITIONS	 	1
	

2.	

THE LOANS	
 	

12
	 	SECTION 2.1.	Commitments	 	12
	 	SECTION 2.2.	Loans	 	12
	 	SECTION 2.3.	Use of Proceeds	 	13
	 	SECTION 2.4.	Competitive Bid Procedure	 	13
	 	SECTION 2.5.	Revolving Credit Borrowing Procedure	 	15
	 	SECTION 2.6.	Refinancings	 	15
	 	SECTION 2.7.	Fees	 	16
	 	SECTION 2.8.	Repayment of Loans; Evidence of Debt	 	17
	 	SECTION 2.9.	Interest on Loans	 	18
	 	SECTION 2.10.	Interest on Overdue Amounts	 	18
	 	SECTION 2.11.	Alternate Rate of Interest	 	18
	 	SECTION 2.12.	Termination and Reduction of Commitments	 	19
	 	SECTION 2.13.	Prepayment of Loans	 	19
	 	SECTION 2.14.	Eurocurrency Reserve Costs	 	19
	 	SECTION 2.15.	Reserve Requirements; Change in Circumstances	 	20
	 	SECTION 2.16.	Change in Legality	 	21
	 	SECTION 2.17.	Reimbursement of Lenders	 	22
	 	SECTION 2.18.	Pro Rata Treatment	 	23
	 	SECTION 2.19.	Right of Setoff	 	23
	 	SECTION 2.20.	Manner of Payments	 	23
	 	SECTION 2.21.	Withholding Taxes	 	24
	 	SECTION 2.22.	Certain Pricing Adjustments	 	25
	

3.	

REPRESENTATIONS AND WARRANTIES OF BORROWER	
 	

26
	 	SECTION 3.1.	Corporate Existence and Power	 	26
	 	SECTION 3.2.	Corporate Authority and No Violation	 	26
	 	SECTION 3.3.	Governmental and Other Approval and Consents	 	26
	 	SECTION 3.4.	Financial Statements of Borrower	 	26
	 	SECTION 3.5.	No Material Adverse Change	 	26
	 	SECTION 3.6.	Copyrights, Patents and Other Rights	 	26
	 	SECTION 3.7.	Title to Properties	 	27
	 	SECTION 3.8.	Litigation	 	27
	 	SECTION 3.9.	Federal Reserve Regulations	 	27
	 	SECTION 3.10.	Investment Company Act, Public Utility Company Act	 	27
	 	SECTION 3.11.	Enforceability	 	27
	 	SECTION 3.12.	Taxes	 	27
	 	SECTION 3.13.	Compliance with ERISA	 	27
	 	SECTION 3.14.	Disclosure	 	28
	 	SECTION 3.15.	Environmental Liabilities	 	28
	

4.	

CONDITIONS OF LENDING	
 	

28
	 	SECTION 4.1.	Conditions Precedent to Effectiveness	 	28
	 	SECTION 4.2.	Conditions Precedent to Each Loan	 	29
	

5.	

AFFIRMATIVE COVENANTS	
 	

30
	 	SECTION 5.1.	Financial Statements, Reports, etc	 	30
	 	SECTION 5.2.	Corporate Existence; Compliance with Statutes	 	31
	 	 	 	 	 





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	 	SECTION 5.3.	Insurance	 	31
	 	SECTION 5.4.	Taxes and Charges	 	31
	 	SECTION 5.5.	ERISA Compliance and Reports	 	32
	 	SECTION 5.6.	Maintenance of and Access to Books and Records; Examinations	 	32
	 	SECTION 5.7.	Maintenance of Properties	 	32
	

6.	

NEGATIVE COVENANTS	
 	

33
	 	SECTION 6.1.	Limitation on Material Subsidiary Indebtedness	 	33
	 	SECTION 6.2.	Limitation on Transactions with Affiliates	 	34
	 	SECTION 6.3.	Consolidation, Merger, Sale of Assets	 	34
	 	SECTION 6.4.	Limitations on Liens	 	34
	 	SECTION 6.5.	Sale and Leaseback	 	35
	 	SECTION 6.6.	Consolidated Net Worth	 	36
	 	SECTION 6.7.	Ratio of Indebtedness To Consolidated Net Worth	 	36
	 	SECTION 6.8.	Accounting Practices	 	36
	 	SECTION 6.9.	Restrictions Affecting Subsidiaries	 	36
	

7.	

EVENTS OF DEFAULT	
 	

36
	

8.	

THE ADMINISTRATIVE AGENT	
 	

38
	 	SECTION 8.1.	Administration by Administrative Agent	 	38
	 	SECTION 8.2.	Advances and Payments	 	38
	 	SECTION 8.3.	Sharing of Setoffs and Cash Collateral	 	39
	 	SECTION 8.4.	Notice to the Lenders	 	39
	 	SECTION 8.5.	Liability of the Administrative Agent	 	40
	 	SECTION 8.6.	Reimbursement and Indemnification	 	40
	 	SECTION 8.7.	Rights of Administrative Agent	 	40
	 	SECTION 8.8.	Independent Investigation by Lenders	 	41
	 	SECTION 8.9.	Notice of Transfer	 	41
	 	SECTION 8.10.	Successor Administrative Agent	 	41
	

9.	

MISCELLANEOUS	
 	

41
	 	SECTION 9.1.	Notices	 	41
	 	SECTION 9.2.	Survival of Agreement, Representations and Warranties, etc.	 	42
	 	SECTION 9.3.	Successors and Assigns; Syndications; Loan Sales; Participations	 	42
	 	SECTION 9.4.	Expenses; Documentary Taxes	 	45
	 	SECTION 9.5.	Indemnity	 	45
	 	SECTION 9.6.	CHOICE OF LAW	 	45
	 	SECTION 9.7.	No Waiver	 	46
	 	SECTION 9.8.	Extension of Maturity	 	46
	 	SECTION 9.9.	Amendments, etc.	 	46
	 	SECTION 9.10.	Severability	 	46
	 	SECTION 9.11.	SERVICE OF PROCESS; WAIVER OF JURY TRIAL	 	46
	 	SECTION 9.12.	Headings	 	47
	 	SECTION 9.13.	Execution in Counterparts	 	47
	 	SECTION 9.14.	Entire Agreement	 	48
	 	SECTION 9.15.	Foreign Currency Judgments	 	48
	 	SECTION 9.16.	Language	 	48
	 	SECTION 9.17.	Confidentiality	 	48




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	SCHEDULES	 
	 	

1.1A	

Commitments
	 	1.1B	Available Foreign Currencies
	 	6.1	Existing Material Subsidiary Indebtedness
	 	6.4	Existing Liens
	

EXHIBITS	

 
	 	

A-1	

Form of Revolving Credit Note
	 	A-2	Form of Competitive Note
	 	B-1	Opinion of In-house Counsel
	 	B-2	Opinion of Skadden, Arps, Slate, Meagher & Flom LLP
	 	C	Form of Assignment and Acceptance
	 	D	Form of Compliance Certificate
	 	E-1	Form of Competitive Bid Request
	 	E-2	Form of Competitive Bid Invitation
	 	E-3	Form of Competitive Bid
	 	E-4	Form of Competitive Bid Accept/Reject Letter
	 	F	Form of Revolving Credit Borrowing Request




iii








AMENDED AND RESTATED COMPETITIVE ADVANCE AND REVOLVING CREDIT AGREEMENT (the "Agreement"), dated as of March 4, 1997, as amended and restated
through July 3, 2003, among PHH CORPORATION, a Maryland corporation (the "Borrower"), the Lenders referred to herein and JPMORGAN CHASE BANK, a
New York banking corporation, as agent (the "Administrative Agent") for the Lenders. 


INTRODUCTORY STATEMENT  


The Borrower, certain of the Lenders and the Administrative Agent are parties to Two Year Competitive Advance and Revolving Credit Agreement, dated as of March 4, 1997,
as amended and restated through February 21, 2002 (the "Existing Credit Agreement"), pursuant to which the Lenders established a $750,000,000
committed revolving credit facility under which Revolving Credit Loans (as defined below) may be made to the Borrower. 



The
Borrower has requested that the Termination Date (as defined below) be extended to February 28, 2005 and has requested certain other amendments to the Existing Credit Agreement. 


The
Borrower, the Lenders and the Administrative Agent desire to amend and restate the Existing Credit Agreement pursuant to this Agreement and to continue the Borrower's payment and performance
obligations under the Existing Credit Agreement, as amended hereby. 


Accordingly,
the parties hereto hereby agree as follows: 


1.     DEFINITIONS  


        For the purposes hereof unless the context otherwise requires, the following terms shall have the meanings indicated, all accounting terms not otherwise defined
herein shall have the respective meanings accorded to them under GAAP and all terms defined in the New York Uniform Commercial Code and not otherwise defined herein shall have the respective meanings
accorded to them therein: 



        "ABR Borrowing" shall mean a Borrowing comprised of ABR Loans. 


        "ABR Loan" shall mean any Loan bearing interest at a rate determined by reference to the Alternate Base Rate in accordance with the
provisions of Article 2. 


        "Affiliate" shall mean any Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, the
Borrower. For purposes of this definition, a Person shall be deemed to be "controlled by" another if such latter Person possesses, directly or indirectly, power either to (i) vote 10% or more
of the securities having ordinary voting power for the election of directors of such controlled Person or (ii) direct or cause the direction of the management and policies of such controlled
Person whether by contract or otherwise. 


        "Alternate Base Rate" shall mean for any day, a rate per annum (rounded upwards to the nearest 1/16 of 1% if not already an
integral multiple of 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect for such day and (b) the Federal Funds Effective Rate in effect for such day plus
1/2 of 1%. "Prime Rate" shall mean the rate per annum publicly announced by the entity which is the Administrative Agent from time to
time as its prime rate in effect at its principal office in New York City. For purposes of this Agreement, any change in the Alternate Base Rate due to a change in the Prime Rate shall be effective on
the date such change in the Prime Rate is announced as effective. "Federal Funds Effective Rate" shall mean, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the
quotations for the day of such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. If for any reason the Administrative Agent
shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate, for any reason, 






 




including,
without limitation, the inability or failure of the Administrative Agent to obtain sufficient bids or publications in accordance with the terms hereof, the Alternate Base Rate shall be
determined without regard to clause (b) until the circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in the Federal Funds
Effective Rate shall be effective on the effective date of such change in the Federal Funds Effective Rate. 


        "Applicable Law" shall mean all provisions of statutes, rules, regulations and orders of governmental bodies or regulatory agencies
applicable to a Person, and all orders and decrees of all courts and arbitrators in proceedings or actions in which the Person in question is a party. 


        "Assessment Rate" shall mean, for any day, the net annual assessment rate (rounded upwards, if necessary, to the next higher Basis Point)
as most recently reasonably estimated by the Administrative Agent for determining the then current annual assessment payable by the entity which is the Administrative Agent to the Federal Deposit
Insurance Corporation (or any successor) for insurance by such Corporation (or such successor) of time deposits made in Dollars at such entity's domestic offices. 


        "Asset Securitization Subsidiary" shall mean (i) any Subsidiary engaged solely in the business of effecting asset securitization
transactions permitted by this Agreement and activities incidental thereto or (ii) any Subsidiary whose primary purpose is to hold title or ownership interests in vehicles, equipment, leases,
mortgages, relocation assets, financial assets and related assets under management. 



        "Assignment and Acceptance" shall mean an agreement in the form of Exhibit C hereto, executed by the assignor, assignee and the
other parties as contemplated thereby. 


        "Available Foreign Currencies" shall mean the currencies set forth on Schedule 1.1B, and any other available and freely-convertible
non-Dollar currency selected by the Borrower and approved (which approval shall not be unreasonably withheld) in writing by the Administrative Agent. 


        "Avis" shall mean Avis Group Holdings, Inc., a Delaware corporation. 


        "Avis Fleet" shall mean Avis Fleet Leasing and Management Corp., a Texas corporation. 


        "Avis Fleet Transaction" shall mean the transaction pursuant to which, after the consummation of the Avis Merger, the Borrower purchased
Avis Fleet from Avis. 


        "Avis Merger" shall mean the transaction pursuant to the Agreement and Plan of Merger, dated as of November 11, 2000 (the
"Merger Agreement"), by and among Avis, Cendant Corporation, a Delaware corporation ("Cendant"), the
Borrower (an indirect wholly-owned subsidiary of Cendant) and Avis Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the Borrower ("Merger
Sub") in which Merger Sub merged with and into Avis and each outstanding share of class A common stock, par value $.01 per share of Avis (the
"Common Stock"), other than shares of Common Stock held by any subsidiary of Avis, held in Avis' treasury, held by Cendant or any subsidiary of Cendant
or held by stockholders who perfect their appraisal rights under Delaware law, was converted into the right to receive $33.00 in cash. 


        "Basis Point" shall mean 1/100th of 1%. 


        "Board" shall mean the Board of Governors of the Federal Reserve System. 


        "Borrowing" shall mean a group of Loans of a single Interest Rate Type made by certain Lenders (or in the case of a Competitive Borrowing,
by the Lender or Lenders whose Competitive Bids have been accepted pursuant to Section 2.4) on a single date and as to which a single Interest Period is in effect. 



2





 




        "Business Day" shall mean, with respect to any Loan, any day other than a Saturday, Sunday or other day on which banks in the State of New
York are permitted or required by law to close; provided that when used in connection with a LIBOR Loan, the term "Business Day" shall also exclude any
day on which banks are not open for dealings in deposits in Dollars or the applicable Available Foreign Currency on the London Interbank Market (or such other interbank eurocurrency market where the
foreign currency and exchange operations in respect of Dollars or the applicable Available Foreign Currency, as the case may be, are then being conducted for delivery on the first day of such Interest
Period). 


        "Capital Lease" shall mean as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee
which, in accordance with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person. 



        "Cash Equivalents" shall mean (i) investments in commercial paper maturing in not more than 270 days from the date of
issuance which at the time of acquisition is rated at least A-1 or the equivalent thereof by S&P, or P-1 or the equivalent thereof by Moody's, (ii) investments in direct
obligations or obligations which are guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in
support thereof) having a maturity of not more than three years from the date of acquisition, (iii) investments in certificates of deposit maturing not more than one year from the date of
origin issued by a Lender or a bank or trust company organized or licensed under the laws of the United States or any state or territory thereof having capital, surplus and undivided profits
aggregating at least $500,000,000 and in each case A rated or better by S&P or Moody's, (iv) money market mutual funds having assets in excess of $2,000,000,000, (v) investments in
asset-backed or mortgage-backed securities, including investments in collateralized, adjustable rate mortgage securities and those mortgage-backed securities which are rated at least AA by S&P or Aa
by Moody's or are of comparable quality at the time of investment, and (vi) banker's acceptances maturing not more than one year from the date of origin issued by a bank or trust company
organized or licensed under the laws of the United States or any state or territory thereof and having capital, surplus and undivided profits aggregating at least $500,000,000, and rated A or better
by S&P or Moody's. 


        "Change in Control" shall mean (i) the acquisition by any Person or group (within the meaning of the Securities Exchange Act of
1934, as amended, and the rules of the Securities and Exchange Commission thereunder as in effect on the Closing Date), directly or indirectly, beneficially or of record, of ownership or control of in
excess of 50% of the voting common stock of Cendant Corporation on a fully diluted basis at any time or (ii) if at any time, individuals who at the Closing Date constituted the Board of
Directors of Cendant Corporation (together with any new directors whose election by such Board of Directors or whose nomination for election by the shareholders of Cendant Corporation, as the case may
be, was approved by a vote of the majority of the directors then still in office who were either directors at the Closing Date or whose election or nomination for election was previously so approved)
cease for any reason to constitute a majority of the Board of Directors of Cendant Corporation or (iii) Cendant Corporation shall cease to own, directly or through wholly-owned Subsidiaries,
all of the capital stock of the Borrower, free and clear of any direct or indirect Liens. 


        "Closing Date" shall mean the date on which the conditions precedent to the effectiveness of this Agreement as set forth in
Section 4.1 have been satisfied or waived, which shall in no event be later than July 3, 2003. 



        "Code" shall mean the Internal Revenue Code of 1986 and the rules and regulations issued thereunder, as now and hereafter in effect, or
any successor provision thereto. 



3





 




        "Commitment" shall mean, with respect to each Lender, its Commitment to make Loans to the Borrower hereunder, in an aggregate amount not
to exceed at any time the amount set forth opposite such Lender's name under the heading "Commitment" on Schedule 1.1A. 



        "Commitment Period" shall mean the period from and including the Closing Date to but not including the Termination Date or such earlier
date on which the Commitments shall have been terminated in accordance with the terms hereof. 


        "Commitment Utilization Percentage" shall mean on any day the percentage equivalent of a fraction (a) the numerator of which is the
sum of the aggregate outstanding principal amount of Loans and the Dollar Equivalent Amount of the aggregate outstanding principal amount of Competitive Loans and (b) the denominator of which
is the Total Commitment (or, on any day after termination of the Commitments, the Total Commitment in effect immediately preceding such termination). 



        "Competitive Bid" shall mean an offer by a Lender to make a Competitive Loan pursuant to Section 2.4 in the form of
Exhibit E-3. 


        "Competitive Bid Accept/Reject Letter" shall mean a notification made by the Borrower pursuant to Section 2.4(d) in the form of
Exhibit E-4. 


        "Competitive Bid Rate" shall mean, as to any Competitive Bid made by a Lender pursuant to Section 2.4(b), (a) in the case of
a LIBOR Loan, the Margin and (b) in the case of a Fixed Rate Loan, the fixed rate of interest offered by the Lender making such Competitive Bid. 



        "Competitive Bid Request" shall mean a request made pursuant to Section 2.4 in the form of Exhibit E-1. 


        "Competitive Borrowing" shall mean a Borrowing consisting of a Competitive Loan or concurrent Competitive Loans from the Lender or Lenders
whose Competitive Bids for such Borrowing have been accepted by the Borrower under the bidding procedure described in Section 2.4. 


        "Competitive Loan" shall mean a Loan from a Lender to the Borrower pursuant to the bidding procedure described in Section 2.4. Each
Competitive Loan shall be a LIBOR Competitive Loan or a Fixed Rate Loan. 


        "Competitive Note" shall have the meaning assigned to such term in Section 2.8. 


        "Consolidated Assets" shall mean, at any date of determination, the total assets of the Borrower and its Consolidated Subsidiaries
determined in accordance with GAAP. 


        "Consolidated Net Income" shall mean, for any period for which such amount is being determined, the net income (loss) of the Borrower and
its Consolidated Subsidiaries during such period determined on a consolidated basis for such period taken as a single accounting period in accordance with GAAP,  provided that there shall be excluded
(i) income (or loss) of any Person (other than a Consolidated Subsidiary) in which the Borrower or any of
its Consolidated Subsidiaries has an equity investment or comparable interest, except to the extent of the amount of dividends or other distributions actually paid to the Borrower or its Consolidated
Subsidiaries by such Person during such period, (ii) the income (or loss) of any Person accrued prior to the date it becomes a Consolidated Subsidiary or is merged into or consolidated with the
Borrower or any of its Consolidated Subsidiaries or the Person's assets are acquired by the Borrower or any of its Consolidated Subsidiaries, (iii) the income of any Consolidated Subsidiary to
the extent that the declaration or payment of dividends or similar distributions by that Consolidated Subsidiary of the income is not at the time permitted by operation of the terms of its charter or
any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that 



4





 




Consolidated
Subsidiary, (iv) any extraordinary after-tax gains and (v) any extraordinary pretax losses but only to the extent attributable to a write-down of
financing costs relating to any existing and future indebtedness. 


        "Consolidated Net Worth" shall mean, at any date of determination, all amounts which would be included on a balance sheet of the Borrower
and its Consolidated Subsidiaries under stockholders' equity as of such date in accordance with GAAP. 



        "Consolidated Subsidiaries" shall mean all Subsidiaries of the Borrower that are required to be consolidated with the Borrower for
financial reporting purposes in accordance with GAAP. 


        "Contractual Obligation" shall mean, as to any Person, any provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of its property is bound. 


        "Currency" or "Currencies" shall mean the collective reference to Dollars and Available
Foreign Currencies. 


        "Default" shall mean any event, act or condition which with notice or lapse of time, or both, would constitute an Event of Default. 


        "Dollar Equivalent Amount" shall mean with respect to (i) any amount of any Available Foreign Currency on any date, the equivalent
amount in Dollars of such amount of Available Foreign Currency,
as determined by the Administrative Agent using the applicable Exchange Rate and (ii) any amount in Dollars, such amount. 



        "Dollars" and "$" and "US$" shall mean
lawful currency of the United States. 


        "Enumerated Business Segments" means the fleet, relocation or mortgage business segments of the Borrower as described in its Annual Report
on Form 10-K, dated March 5, 2003. 


        "Environmental Laws" shall mean any and all federal, provincial, state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees or requirements of any Governmental Authority regulating, relating to or imposing liability or standards of conduct concerning, any Hazardous Material or environmental
protection or health and safety, as now or at any time hereafter in effect, including without limitation, the Clean Water Act also known as the Federal Water Pollution Control Act, 33 U.S.C.
§§ 1251 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et
seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§136 et seq., the Surface Mining
Control and Reclamation Act, 30 U.S.C. §§ 1201 et seq., the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. §§ 9601 et seq., the Superfund Amendment and Reauthorization Act of 1986, Public Law 99-499, 100
Stat. 1613, the Emergency Planning and Community Right to Know Act, 42 U.S.C. §§ 11001 et seq., the Resource Conservation and
Recovery Act, 42 U.S.C. §§ 6901 et seq., the Occupational Safety and Health Act as amended, 29 U.S.C. § 655 and
§ 657, together, in each case, with any amendment thereto, and the regulations adopted and publications promulgated thereunder and all substitutions thereof. 


        "Environmental Liabilities" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the
foregoing. 



5





 




        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as such Act may be amended, and the regulations promulgated
thereunder. 


        "euro" shall mean the single currency of participating member states of the European Union. 


        "euro unit" shall mean the currency unit of the euro. 


        "Event of Default" shall have the meaning given such term in Article 7. 



        "Excess Utilization Day" shall mean each day on which the Commitment Utilization Percentage exceeds 25%. 


        "Exchange Rate" shall mean (i) with respect to any Available Foreign Currency other than Canadian Dollars on any date, the rate at
which such Available Foreign Currency may be exchanged into Dollars, as set forth on such date on the relevant Reuters currency page at or about 11:00 A.M. New York City time on such date and
(ii) with respect to Canadian Dollars, the spot rate at which Canadian Dollars may be exchanged into U.S. Dollars, as quoted by The Bank of Canada at approximately 12:00 noon, Toronto time, as
set forth on the Reuters "BOFC" page. In the event that such rate does not appear on any such Reuters page, the "Exchange Rate" with respect to such Available Foreign Currency shall be determined by
reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrower or, in the absence of such agreement, such "Exchange
Rate" shall instead be the Administrative Agent's spot rate of exchange in the interbank market where its foreign currency exchange operations in respect of such Available Foreign Currency are then
being conducted, at or about 10:00 A.M., local time, at such date for the purchase of Dollars with such Available Foreign Currency, for delivery two Business Days later;  provided that if at the
time of any such determination, no such spot rate can reasonably be quoted, the Administrative Agent may use any reasonable
method (including obtaining quotes from three or more market makers for such Available Foreign Currency) as it deems applicable to determine such rate, and such determination shall be conclusive
absent manifest error (without prejudice to the determination of the reasonableness of such method). 


        "Facility Fee" shall have the meaning given such term in Section 2.7. 


        "Fitch" shall mean Fitch Investors Service, Inc. and any successor thereto. 


        "Five Year Credit Agreement" shall mean the Five Year Competitive Advance and Revolving Credit Agreement, dated as of March 4,
1997, as amended and restated through February 28, 2000, as further amended from time to time, among the Borrower, the lenders referred to therein and JPMorgan Chase Bank, as Administrative
Agent. 


        "Fixed Rate Borrowing" shall mean a Borrowing comprised of Fixed Rate Loans. 


        "Fixed Rate Loan" shall mean any Competitive Loan bearing interest at a fixed percentage rate per annum (expressed in the form of a
decimal to no more than four decimal places) specified by the Lender making such Loan in its Competitive Bid. 



        "Fundamental Documents" shall mean this Agreement, any Revolving Credit Notes, any Competitive Notes, and any other ancillary
documentation which is required to be, or is otherwise, executed by the Borrower and delivered to the Administrative Agent in connection with this Agreement. 


        "GAAP" shall mean generally accepted accounting principles consistently applied (except for accounting changes in response to FASB
releases or other authoritative pronouncements) provided, however, that all calculations made pursuant to Sections 6.6 and 6.7 and the related
definitions shall have been computed based on such generally accepted accounting principles as are in effect on the date hereof. 



6





 




        "Governmental Authority" shall mean any federal, provincial, state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality, or any court, in each case, whether of the United States or foreign. 



        "Guaranty" shall mean, as to any Person, any direct or indirect obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, Capital Lease, dividend or other monetary obligation ("primary obligation") of any other Person (the "primary
obligor") in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (a) to purchase any
such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation
or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property,
securities or services, in each case, primarily for the purpose of assuring the owner of any such primary obligation of the repayment of such primary obligation or (d) as a general partner of a
partnership or a joint venturer of a joint venture in respect of indebtedness of such partnership or such joint venture which is treated as a general partnership for purposes of Applicable Law. The
amount of any Guaranty shall be deemed to be an amount equal to the stated or determinable amount (or portion thereof) of the primary obligation in respect of which such Guaranty is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder);  provided that the amount of any Guaranty shall be
limited to the extent necessary so that such amount does not exceed the value of the assets of such
Person (as reflected on a consolidated balance sheet of such Person prepared in accordance with GAAP) to which any creditor or beneficiary of such Guaranty would have recourse. Notwithstanding the
foregoing definition, the term "Guaranty" shall not include any direct or indirect obligation of a Person as a general partner of a general partnership or a joint venturer of a joint venture in
respect of Indebtedness of such general partnership or joint venture, to the extent such Indebtedness is contractually non-recourse to the
assets of such Person as a general partner or joint venturer (other than assets comprising the capital of such general partnership or joint venture). 


        "Hazardous Materials" shall mean any flammable materials, explosives, radioactive materials, hazardous materials, hazardous wastes,
hazardous or toxic substances, or similar materials defined as such in any Environmental Law. 


        "Indebtedness" shall mean (i) all indebtedness, obligations and other liabilities of the Borrower and its Subsidiaries which are,
at the date as of which Indebtedness is to be determined, includable as liabilities in a consolidated balance sheet of the Borrower and its Subsidiaries, other than (x) accounts payable and
accrued expenses, (y) advances from clients obtained in the ordinary course of the relocation management services business of the Borrower and its Subsidiaries and (z) current and
deferred income taxes and other similar liabilities, plus (ii) without duplicating any items included in Indebtedness pursuant to the foregoing clause (i), the maximum aggregate amount
of all liabilities of the Borrower or any of its Subsidiaries under any Guaranty, indemnity or similar undertaking given or assumed of, or in respect of, the indebtedness, obligations or other
liabilities, assets, revenues, income or dividends of any Person other than the Borrower or one of its Subsidiaries and (iii) all other obligations or liabilities of the Borrower or any of its
Subsidiaries in relation to the discharge of the obligations of any Person other than the Borrower or one of its Subsidiaries. 


        "Interest Payment Date" shall mean, with respect to any Borrowing, the last day of the Interest Period applicable thereto and, in the case
of a LIBOR Borrowing with an Interest Period of more than three months' duration or a Fixed Rate Borrowing with an Interest Period of more than 90 days' duration, each day that would have been
an Interest Payment Date had successive Interest Periods of three months' duration or 90 days' duration, as the case may be, been applicable to 



7





 




such
Borrowing, and, in addition, the date of any refinancing or conversion of a Borrowing with, or to, a Borrowing of a different Interest Rate Type. 



        "Interest Period" shall mean (a) as to any LIBOR Borrowing, the period commencing on the date of such Borrowing, and ending on the
numerically corresponding day (or, if there is no numerically corresponding day, on the last day) in the calendar month that is 1, 2, 3, 6 or, subject to each Lender's approval, 12 months
thereafter, as the Borrower may elect, (b) as to any ABR Borrowing, the period commencing on the date of such Borrowing and ending on the earliest of (i) the next succeeding
March 31, June 30, September 30 or December 31, (ii) the Termination Date and (iii) the date such Borrowing is refinanced with a Borrowing of a different
Interest Rate Type in accordance with Section 2.6 or is prepaid in accordance with Section 2.13, and (c) as to any Fixed Rate Borrowing, the period commencing on the date of such
Borrowing and ending on the date specified in the Competitive Bids in which the offer to make the Fixed Rate Loans comprising such Borrowing were extended, which shall not be earlier than seven days
after the date of such Borrowing or later than 360 days after the date of such Borrowing; provided that (i) if any Interest Period would
end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the
case of LIBOR Loans only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) no
Interest Period with respect to any LIBOR Borrowing or Fixed Rate Borrowing may be selected which would result in the aggregate amount of LIBOR Loans and Fixed Rate Loans having Interest Periods
ending after any day on which a Commitment reduction is scheduled to occur being in excess of the Total Commitment scheduled to be in effect after such date. Interest shall accrue from, and including,
the first day of an Interest Period to, but excluding, the last day of such Interest Period. 


        "Interest Rate Protection Agreement" shall mean any interest rate swap agreement, interest rate cap agreement or other similar financial
agreement or arrangement. 


        "Interest Rate Type" when used in respect of any Loan or Borrowing, shall refer to the Rate by reference to which interest on such Loan or
on the Loans comprising such Borrowing is determined. 


        "JPMorgan Chase Bank" shall mean JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), a New York banking corporation. 


        "LEAF Trust Transaction" means the financing of motor vehicles and other equipment or personal property pursuant to that certain Amended
and Restated Purchase Agreement, dated as of March 1, 2001, among LEAF Trust, a trust established under the laws of the Province of Ontario, the Canadian Imperial Bank of Commerce, as
Administrative Agent and PHH Vehicle Management Services, Inc., a corporation amalgamated under the laws of Canada (the "Purchase Agreement"),
including any amendments, supplements, modifications, extensions, renewals, restatements or refundings thereof and any facilities or agreements that replace, refund or refinance, in whole or in part,
the Purchase Agreement. 


        "Lender and "Lenders" shall mean the financial institutions whose names appear on the
signature pages hereof and any assignee of a Lender pursuant to Section 9.3(b). 


        "Lending Office" shall mean, with respect to any of the Lenders, the branch or branches (or affiliate or affiliates) from which any such
Lender's LIBOR Loans, Fixed Rate Loans or ABR Loans, as the case may be, are made or maintained and for the account of which all payments of principal of, and interest on, such Lender's LIBOR Loans,
Fixed Rate Loans or ABR Loans are made, as notified to the Administrative Agent from time to time. 


        "LIBOR" shall mean, with respect to each day during each Interest Period pertaining to a LIBOR Borrowing, the rate per annum determined on
the basis of the rate for deposits in Dollars 



8





 




or
the applicable Available Foreign Currency, as the case may be, for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Page 3750 of the Telerate
screen (or any successor page thereto) as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period. In the event that such rate does not appear on Page 3750
of the Telerate screen (or otherwise on such screen), the "LIBOR" shall be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits or deposits in the applicable Available Foreign Currency, as the case may be, at or about 11:00 A.M., New York City time, two Business Days prior to the beginning of such Interest
Period in the interbank eurodollar market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery on the first day of such Interest Period for the
number of days comprised therein. 


        "LIBOR Borrowing" shall mean a Borrowing comprised of LIBOR Loans. 


        "LIBOR Competitive Loan" shall mean any Competitive Loan bearing interest at a rate determined by reference to LIBOR in accordance with
the provisions of Article 2. 


        "LIBOR Loan" shall mean any LIBOR Competitive Loan or LIBOR Revolving Credit Loan. 


        "LIBOR Revolving Credit Loan" shall mean any Revolving Credit Loan bearing interest at a rate determined by reference to LIBOR in
accordance with the provisions of Article 2. 


        "LIBOR Spread" shall mean, at any date or any period of determination, the LIBOR Spread that would be in effect on such date or during
such period pursuant to the chart set forth in Section 2.22 based on the rating of the Borrower's senior unsecured non-credit enhanced long-term debt. 


        "Lien" shall mean any mortgage, pledge, security interest, encumbrance, lien or charge of any kind whatsoever (including any conditional
sale or other title retention agreement, any lease in the nature thereof or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction). 


        "Loan" shall mean a Competitive Loan or a Revolving Credit Loan, whether made as a LIBOR Loan, an ABR Loan or a Fixed Rate Loan, as
permitted hereby. 


        "Margin" shall mean, as to any LIBOR Competitive Loan, the margin (expressed as a percentage rate per annum in the form of a decimal to
four decimal places) to be added to, or subtracted from, LIBOR in order to determine the interest rate applicable to such Loan, as specified in the Competitive Bid relating to such Loan. 


        "Margin Stock" shall be as defined in Regulation U of the Board. 


        "Material Adverse Effect" shall mean a material adverse effect on the business, assets, operations or condition, financial or otherwise,
of the Borrower and its Subsidiaries taken as a whole. 


        "Material Subsidiary" shall mean any Subsidiary of the Borrower which together with its Subsidiaries at the time of determination had
assets constituting 10% or more of Consolidated Assets, accounts for 10% or more of Consolidated Net Worth, or accounts for 10% or more of the revenues of the Borrower and its Consolidated
Subsidiaries for the Rolling Period immediately preceding the date of determination. 


        "Moody's" shall mean Moody's Investors Service Inc. 


        "Multiemployer Plan" shall mean a plan described in Section 3(37) of ERISA. 



9





 




        "national currency unit "shall mean the unit of currency (other than a euro unit) of a participating member state. 



        "Notes" shall mean the Competitive Notes and the Revolving Credit Notes. 


        "Obligations" shall mean the obligation of the Borrower to make due and punctual payment of principal of, and interest on (including
post-petition interest, whether or not allowed), the Loans, the Facility Fee, the Utilization Fee and all other monetary obligations of the Borrower to
the Administrative Agent or any Lender under this Agreement, the Notes or the Fundamental Documents or with respect to any Interest Rate Protection Agreements entered into between the Borrower or any
of its Subsidiaries and any Lender. 


        "Original Closing Date" shall mean March 4, 1997. 


        "Participant" shall have the meaning assigned to such term in Section 9.3(g). 


        "participating member state "shall mean each state so described in any EMU legislation. 


        "PBGC" shall mean the Pension Benefit Guaranty Corporation or any successor thereto. 


        "Permitted Encumbrances" shall mean Liens permitted under Section 6.4. 


        "Person" shall mean any natural person, corporation, division of a corporation, partnership, limited liability company, trust, joint
venture, association, company, estate, unincorporated organization or government or any agency or political subdivision thereof. 


        "Plan" shall mean an employee pension benefit plan described in Section 3(2) of ERISA, other than a Multiemployer Plan. 



        "Pro Forma Basis" shall mean, in connection with any transaction for which a determination on a Pro Forma Basis is required to be made
hereunder, that such determination shall be made (i) after giving effect to any issuance of Indebtedness, any acquisition, any disposition or any other transaction (as applicable) and
(ii) assuming that the issuance of Indebtedness, acquisition, disposition or other transaction and, if applicable, the application of any proceeds therefrom, occurred at the beginning of the
most recent Rolling Period ending at least thirty (30) days prior to the date on which such issuance of Indebtedness, acquisition, disposition or other transaction occurred. 



        "Reportable Event" shall mean any reportable event as defined in Section 4043(c) of ERISA, other than a reportable event as to
which provision for 30-day notice to the PBGC would be waived under applicable regulations had the regulations in effect on the Closing Date been in effect on the date of occurrence of
such reportable event. 


        "Required Lenders" shall mean Lenders holding Commitments representing (in Dollar amounts) 51% or more of the Total Commitment, except
that for purposes of determining the Lenders entitled to declare the principal of and the interest on the Loans and the Notes and all other amounts payable hereunder or thereunder to be forthwith due
and payable pursuant to Article 7, "Required Lenders" shall mean Lenders holding 51% of the aggregate principal amount of the Loans at the time. 


        "Revolving Credit Borrowing" shall mean a Borrowing consisting of simultaneous Revolving Credit Loans from each of the Lenders. 


        "Revolving Credit Borrowing Request" shall mean a request made pursuant to Section 2.5 in the form of Exhibit F. 



10











  



        "Revolving Credit Loans" shall mean the Loans made by the Lenders to the Borrower pursuant to a notice given by the Borrower under
Section 2.5. Each Revolving Credit Loan shall be a LIBOR Revolving Credit Loan or an ABR Loan. 


        "Revolving Credit Note" shall have the meaning assigned to such term in Section 2.8. 



        "Rolling Period" shall mean with respect to any fiscal quarter, such fiscal quarter and the three immediately preceding fiscal quarters
considered as a single accounting period. 


        "S&P" shall mean Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies. 


        "Securitization Indebtedness" shall mean Indebtedness incurred by any structured bankruptcy-remote Subsidiary of the Borrower which does
not permit or provide for recourse to the Borrower or any Subsidiary of the Borrower (other than such structured bankruptcy-remote Subsidiary) or any property or asset of the Borrower or any
Subsidiary of the Borrower (other than the property or assets of such structured bankruptcy-remote Subsidiary). 


        "Special Purpose Vehicle Subsidiary" shall mean PHH Caribbean Leasing, Inc. and any Subsidiary engaged in the fleet-leasing
management business that (i) is, at any time, a party to one or more lease agreements with only one lessee, and (ii) finances, at any one time, its investments in lease agreements or
vehicles with only one lender (which lender may be the Borrower if and to the extent that such loans and/or advances by the Borrower are not prohibited hereby). 



        "Statutory Reserves" shall mean a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board and any
other banking authority to which the Administrative Agent or any Lender is subject, for Eurocurrency Liabilities (as defined in Regulation D of the Board) (or, at any time when such Lender may
be required by the Board or by any other Governmental Authority, whether within the United States or in another relevant jurisdiction, to maintain reserves against any other category of liabilities
which includes deposits by reference to which LIBOR is determined as provided in this Agreement or against any category of extensions of credit or other assets of such Lender which includes any such
LIBOR Loans). Such reserve percentages shall include those imposed
under Regulation D of the Board. LIBOR Loans shall be deemed to constitute Eurocurrency Liabilities and as such shall be deemed to be subject to such reserve requirements without benefit of or
credit for proration, exceptions or offsets which may be available from time to time to any Lender under Regulation D of the Board. Statutory Reserves shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage. 


        "Subsidiary" shall mean with respect to any Person, any corporation, association, joint venture, partnership or other business entity
(whether now existing or hereafter organized) of which at least a majority of the voting stock or other ownership interests having ordinary voting power for the election of directors (or the
equivalent) is, at the time as of which any determination is being made, owned or controlled by such Person or one or more subsidiaries of such Person or by such Person and one or more subsidiaries of
such Person. Unless otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower. 


        "Supermajority Lenders" shall mean Lenders which have Commitments representing at least 75% of the aggregate Dollar amount of the
Commitments. 


        "Target Operating Day" shall mean any day that is not (a) a Saturday or Sunday, (b) Christmas Day or New Year's Day or
(c) any other day on which the Trans-European Real-time Gross 



11





 




Settlement
Operating System (or any successor settlement system) is not operating (as determined by the Administrative Agent). 


        "Termination Date" means February 28, 2005. 



        "Total Commitment" shall mean, at any time, the aggregate amount of the Lenders' Commitments as in effect at such time. 


        "United States" shall mean the United States of America. 


        "Utilization Fee" shall have the meaning given such term in Section 2.7. 



        "Working Day" shall mean any Business Day on which dealings in foreign currencies and exchange between banks may be carried on in London,
England and in New York, New York. 




2.     THE LOANS  


        SECTION
2.1.    Commitments.    


        (a)   Subject
to the terms and conditions hereof and relying upon the representations and warranties herein set forth, each Lender agrees, severally and not jointly, to make
Revolving Credit Loans to the Borrower in Dollars, at any time and from time to time on and after the Original Closing Date and until the earlier of the Termination Date and the termination of the
Commitment of such Lender, in an aggregate principal amount at any time outstanding not to exceed such Lender's Commitment plus the outstanding Dollar Equivalent Amount by which the Competitive Loans
outstanding at such time shall be deemed to have used such Lender's Commitment pursuant to Section 2.18, subject, however, to the condition that at no time shall (i) the sum of
(A) the outstanding aggregate principal amount of all Revolving Credit Loans made by all Lenders plus (B) the outstanding aggregate principal Dollar Equivalent Amount of all Competitive
Loans made by the Lenders exceed (ii) the Total Commitment. During the Commitment Period, the Borrower may use the Commitments of the Lenders by borrowing, prepaying the Loans in whole or in
part, and reborrowing, all in accordance with the terms and conditions hereof. 


        (b)   The
Commitments of the Lenders may be terminated or reduced from time to time pursuant to Section 2.12 or Article 7. 


        SECTION
2.2.    Loans.    


        (a)   Each
Revolving Credit Loan shall be made as part of a Borrowing consisting of Revolving Credit Loans made by the Lenders ratably in accordance with their respective
applicable Commitments. Each Competitive Loan shall be made in accordance with the procedures set forth in Section 2.4. The failure of any Lender to make any Loan required to be made by it
shall not in itself relieve any other Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender). The Loans comprising any Borrowing shall be (i) in the case of Competitive Loans and LIBOR Loans, in an aggregate principal Dollar Equivalent Amount
that is an integral multiple of $5,000,000 and not less than $10,000,000 and (ii) in the case of ABR Loans, in an aggregate principal amount that is an integral multiple of $500,000 and not
less than $5,000,000 (or if less, an aggregate principal amount equal to the remaining balance of the available Total Commitment). 



        (b)   Each
Competitive Borrowing shall be comprised entirely of LIBOR Competitive Loans or Fixed Rate Loans. Each Borrowing shall be comprised entirely of LIBOR Loans or ABR
Loans, as the Borrower may request pursuant to Section 2.4 or 2.5, as applicable. Each Lender may at its option make any LIBOR Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan, provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement and the applicable Note. Borrowings 


12





 



of
more than one Interest Rate Type may be outstanding at the same time; provided that the Borrower shall not be entitled to request any Borrowing that,
if made, would result in an aggregate of more than twenty (20) separate Loans (other than Competitive Loans) of any Lender being outstanding hereunder at any one time. For purposes of the
calculation required by the immediately preceding sentence, LIBOR Revolving Credit Loans having different Interest Periods or having been made in different Currencies, regardless of whether they
commence on the same date, shall be considered separate Loans and all Loans of a single Interest Rate Type made on a single date shall be considered a single Loan if such Loans have a common Interest
Period. 


        (c)   Subject
to Section 2.6, each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by making funds available at the office of the
Administrative Agent specified in Section 9.1 for credit to PHH Corporation Clearing Account, Account No. 323-5-11260 (Reference: PHH Corporation Credit Agreement
dated as of March 4, 1997) or as otherwise directed by the Administrative Agent no later than 1:00 P.M. New York City time in the case of Loans other than ABR Loans, and 4:00 P.M.
New York City time in the case of ABR Loans, in each case, in immediately available funds. Upon receipt of the funds to be made available by the Lenders to fund any Borrowing hereunder, the
Administrative Agent shall disburse such funds by depositing them into an account of the Borrower maintained with the Administrative Agent. Competitive Loans shall be made by the Lender or Lenders
whose Competitive Bids therefor are accepted pursuant to Section 2.4 in the amounts so accepted and Loans shall be made by all the Lenders pro rata in accordance with Section 2.1 and
this Section 2.2. 


        (d)   Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to request any Borrowing if the Interest Period requested with respect thereto
would end after the Termination Date. 



        SECTION
2.3.    Use of Proceeds.    


The
proceeds of the Loans shall be used for working capital and general corporate purposes. 


        SECTION
2.4.    Competitive Bid Procedure.    


        (a)   In
order to request Competitive Bids, the Borrower shall hand deliver or telecopy to the Administrative Agent a duly completed Competitive Bid Request in the form of
Exhibit E-1, to be received by the Administrative Agent (i) in the case of a LIBOR Competitive Borrowing, not later than 2:00 p.m., New York City time, four Working
Days before a proposed Competitive Borrowing and (ii) in the case of a Fixed Rate Borrowing, not later than 2:00 p.m., New York City time, one Business Day before a proposed Competitive
Borrowing. Each Competitive Bid Request shall specify the requested Currency. No ABR Loan shall be requested in, or made pursuant to, a Competitive Bid Request. A Competitive Bid Request that does not
conform substantially to the format of Exhibit E-1 may be rejected in the Administrative Agent's sole discretion, and the Administrative Agent shall promptly notify the Borrower of
such rejection by telecopier. Such request for Competitive Bids shall in each case refer to this Agreement and specify (i) whether the Borrowing then being requested is to be a LIBOR Borrowing
or a Fixed Rate Borrowing, (ii) the date of such Borrowing (which shall be a Business Day in the case of a Fixed Rate Borrowing and a Working Day in the case of a LIBOR Competitive Borrowing)
and the aggregate principal Dollar Equivalent Amount thereof, which shall be in a minimum principal Dollar Equivalent Amount of $10,000,000 and in an integral multiple of $5,000,000, and
(iii) the Interest Period with respect thereto (which may not end after the Termination Date). Promptly after its receipt of a Competitive Bid Request that is not rejected as aforesaid, the
Administrative Agent shall invite by telecopier (in the form set forth in Exhibit E-2) the Lenders to bid, on the terms and subject to the conditions of this Agreement, to make
Competitive Loans pursuant to such Competitive Bid Request. 


13





 

        (b)   Each
Lender may, in its sole discretion, make one or more Competitive Bids to the Borrower responsive to a Competitive Bid Request. Each Competitive Bid by a Lender must
be received by the Administrative Agent via telecopier, in the form of Exhibit E-3, (i) in the case of a LIBOR Competitive Borrowing, not later than 9:30 a.m., New
York City time, three Working Days before a proposed Competitive Borrowing and (ii) in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New York City time, on the day of a
proposed Competitive Borrowing. Multiple Competitive Bids will be accepted by the Administrative Agent. Competitive Bids that do not conform substantially to the format of
Exhibit E-3 may be rejected by the Administrative Agent after conferring with, and upon the instruction of, the Borrower, and the Administrative Agent shall notify the Lender making
such nonconforming Competitive Bid of such rejection as soon as practicable. Each Competitive Bid shall refer to this Agreement and specify (i) the principal Dollar Equivalent Amount (which
shall be in a minimum principal Dollar Equivalent Amount of $10,000,000 and in an integral multiple of $5,000,000 and which may equal the entire principal amount of the Competitive Borrowing requested
by the Borrower) of the Competitive Loan or Loans that the applicable Lender is willing to make to the Borrower, (ii) the Competitive Bid Rate or Rates at which such Lender is prepared to make
such Competitive Loan or Loans and (iii) the Interest Period or Interest Periods with respect thereto. If any Lender shall elect not to make a Competitive Bid, such Lender shall so notify the
Administrative Agent via telecopier (i) in the case of LIBOR Competitive Loans, not later than 9:30 a.m., New York City time, three Working Days before a proposed Competitive Borrowing
and (ii) in the case of Fixed Rate Loans, not later than 9:30 a.m., New York City time, on the day of a proposed Competitive Borrowing;  provided that failure by any Lender to give such notice
shall not cause such Lender to be obligated to make any Competitive Loan as part of such
proposed Competitive Borrowing. A Competitive Bid submitted by a Lender pursuant to this paragraph (b) shall be irrevocable. 


        (c)   The
Administrative Agent shall promptly notify the Borrower by telecopier of all the Competitive Bids made, the Competitive Bid Rate or Rates and the principal amount of
each Competitive Loan in respect of which a Competitive Bid was made and the identity of the Lender that made each Competitive Bid. The Administrative Agent shall send a copy of all Competitive Bids
to the Borrower for its records as soon as practicable after completion of the bidding process set forth in this Section 2.4. 


        (d)   The
Borrower may in its sole and absolute discretion, subject only to the provisions of this paragraph (d), accept or reject any Competitive Bid referred to in
paragraph (c) above. The Borrower shall notify the Administrative Agent by telephone, promptly confirmed by telecopier in the form of a Competitive Bid Accept/Reject Letter whether and to what
extent it has decided to accept or reject any or all of the Competitive Bids referred to in paragraph (c) above, (i) in the case of a LIBOR Competitive Borrowing, not later than
10:30 a.m., New York City time, three Working Days before a proposed Competitive Borrowing and (ii) in the case of a Fixed Rate Borrowing, not later than 10:30 a.m., New York City
time, on the day of a proposed Competitive Borrowing; provided that (A) the failure by the Borrower to give such notice shall be deemed to be a
rejection of all the Competitive Bids referred to in paragraph (c) above, (B) the Borrower shall not accept a Competitive Bid made at a particular Competitive Bid Rate if the Borrower
has decided to reject a Competitive Bid made at a lower Competitive Bid Rate, (C) the aggregate amount of the Competitive Bids accepted by the Borrower shall not exceed the principal amount
specified in the Competitive Bid Request, (D) if the Borrower shall accept a Competitive Bid or Competitive Bids made at a particular Competitive Bid Rate but the amount of such Competitive Bid
or Competitive Bids shall cause the total amount of Competitive Bids to be accepted by the Borrower to exceed the amount specified in the Competitive Bid Request, then the Borrower shall accept a
portion of such Competitive Bid or Competitive Bids in an amount equal to the amount specified in the Competitive Bid Request less the amount of all other Competitive Bids accepted at lower
Competitive Bid Rates with respect to such Competitive Bid Request (it being understood that acceptance in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata in
accordance with the amount of each such Competitive 


14





 



Bid
at such Competitive Bid Rate), (E) except pursuant to clause (D) above, no Competitive Bid shall be accepted for a Competitive Loan unless such Competitive Loan is in a minimum
principal Dollar Equivalent Amount of $10,000,000 and an integral multiple of $5,000,000 and (F) the Borrower may not accept Competitive Bids for Competitive Loans in any Currency other than
the Currency specified in the related Competitive Bid Request; and provided, further, that if a
Competitive Loan must be in an amount less than the Dollar Equivalent Amount of $10,000,000 because of the provisions of clause (D) above, such Competitive Loan shall be in a minimum principal
Dollar Equivalent Amount of $1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation of acceptances of portions of multiple Competitive Bids at a particular Competitive
Bid Rate pursuant to clause (D), the amounts shall be rounded to the Dollar Equivalent Amount of integral multiples of $1,000,000 in a manner that shall be in the discretion of the Borrower. A
notice given by the Borrower pursuant to this paragraph (d) shall be irrevocable. 


        (e)   The
Administrative Agent shall promptly notify each bidding Lender whether its Competitive Bid has been accepted (and if so, in what amount and at what Competitive Bid
Rate) by telecopy sent by the Administrative Agent, and each successful bidder will thereupon become bound, subject to the other applicable conditions hereof, to make the Competitive Loan in respect
of which its Competitive Bid has been accepted in the applicable Currency. 


        (f)    If
the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such Competitive Bid directly to the Borrower one
quarter of an hour earlier than the latest time at which the other Lenders are required to submit their Competitive Bids to the Administrative Agent pursuant to paragraph (b) above. 


        (g)   All
notices required by this Section 2.4 shall be given in accordance with Section 9.1. 



        SECTION
2.5.    Revolving Credit Borrowing Procedure.    In order to effect a Revolving Credit Borrowing, the Borrower
shall hand deliver or telecopy to the Administrative Agent a Borrowing notice in the form of Exhibit F (a) in the case of a Borrowing of a LIBOR Revolving Credit Loan, not later than
2:00 p.m., New York City time, three Working Days before a proposed Borrowing, and (b) in the case of an ABR Borrowing, not later than 2:00 p.m., New York City time, on the day of
a proposed Borrowing. No Fixed Rate Loan or LIBOR Competitive Loan shall be requested or made pursuant to a Revolving Credit Borrowing Request. Such notice shall be irrevocable and shall in each case
specify (a) whether the Borrowing then being requested is to be a Borrowing of a LIBOR Revolving Credit Loan or an ABR Borrowing, (b) the date of such Revolving Credit Borrowing (which
shall be a Working Day) and the amount thereof and (c) if such Borrowing is to be a Borrowing of LIBOR Revolving Credit Loans, the Interest Period with respect thereto. If no election as to the
Interest Rate Type of a Revolving Credit Borrowing is specified in any such notice, then the requested Revolving Credit Borrowing shall be an ABR Borrowing. If no Interest Period with respect to any
Borrowing of LIBOR Revolving Credit Loans is specified in any such notice, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. If the Borrower shall not have
given notice in accordance with this Section 2.5 of its election to refinance a Revolving Credit Borrowing prior to the end of the Interest Period in effect for such Borrowing, then the
Borrower shall (unless such Borrowing is repaid at the end of such Interest Period) be deemed to have given notice of an election to refinance such Borrowing with an ABR Borrowing. The Administrative
Agent shall promptly advise the Lenders, of any notice given pursuant to this Section 2.5 and of each such Lender's portion of the requested Revolving Credit Borrowing. 


        SECTION
2.6.    Refinancings.    


The
Borrower may refinance all or any part of any Borrowing made by it with a Borrowing of the same or a different Interest Rate Type made pursuant to Section 2.4 or pursuant to a notice under
Section 2.5, subject to the conditions and limitations set forth herein and elsewhere in this Agreement, including refinancings of Competitive Borrowings with Revolving Credit Borrowings in
Dollars and 


15





 



Revolving
Credit Borrowings in Dollars with Competitive Borrowings; provided that at any time after the occurrence, and during the continuation, of a
Default or an Event of Default, a Revolving Credit Borrowing of Dollars or portion thereof may only be refinanced with an ABR Borrowing. Any Borrowing or part thereof so refinanced shall be deemed to
be repaid in accordance with Section 2.8 with the proceeds of a new Borrowing hereunder and the proceeds of the new Borrowing, to the extent they do not exceed the principal amount of the
Borrowing being refinanced, shall not be paid by the applicable Lenders to the Administrative Agent or by the Administrative Agent to the Borrower pursuant to Section 2.2(c);  provided that
(a) if the principal amount extended by a Lender in a refinancing is greater than the principal amount extended by such Lender in
the Borrowing being refinanced, then such Lender shall pay such difference to the Administrative Agent for distribution to the Lenders described in clause (b) below, (b) if the principal
amount extended by a Lender in the Borrowing being refinanced is greater than the principal amount being extended by such Lender in the refinancing, the Administrative Agent shall return the
difference to such Lender out of amounts received pursuant to clause (a) above, and (c) to the extent any Lender fails to pay the Administrative Agent amounts due from it pursuant to
clause (a) above, any Loan or portion thereof being refinanced with such amounts shall not be deemed repaid in accordance with Section 2.8 and, to the extent of such failure, the
Borrower shall pay such amount to the Administrative Agent as required by Section 2.10; and (d) to the extent the Borrower fails to pay to the Administrative Agent any amounts due in
accordance with Section 2.8 as a result of the failure of a Lender to pay the Administrative Agent any amounts due as described in clause (c) above, the portion of any refinanced Loan
deemed not repaid shall be deemed to be outstanding solely to the Lender which has failed to pay the Administrative Agent amounts due from it pursuant to clause (a) above to the full extent of
such Lender's portion of such Loan. 


        SECTION
2.7.    Fees.    


        (a)   The
Borrower agrees to pay to each Lender, through the Administrative Agent, on each March 31, June 30, September 30 and December 31, and on
the date on which the Commitment of such Lender shall be terminated as provided herein, a facility fee (a "Facility Fee") at the rate per annum from
time to time in effect in accordance with Section 2.22, on the amount of the Commitment of such Lender, whether used or unused, during the preceding quarter (or shorter period commencing with
the Closing Date, or ending with the Termination Date or any date on which the Commitment of such Lender shall be terminated). All Facility Fees shall be computed on the basis of the actual number of
days elapsed in a year of 360 days. The Facility Fee due to each Lender shall commence to accrue on the Closing Date, shall be payable in arrears and shall cease to accrue on the earlier of the
Termination Date and the termination of the Commitment of such Lender as provided herein; provided, that if any Lender continues to have any outstanding
Loans after its Commitment terminates, then such Facility Fee shall continue to accrue on the daily aggregate principal amount of such Lender's Loans for each day from and including the date on which
its Commitment terminates to but excluding the date on which such Lender ceases to have any outstanding Loans. 


        (b)   The
Borrower agrees to pay to each Lender, through the Administrative Agent, on each March 31, June 30, September 30 and December 31, and on
the date on which the Commitment of such Lender shall be terminated as provided herein, a utilization fee (a "Utilization Fee") at a rate per annum
equal to .25% for each day on which the Commitment Utilization Percentage exceeds 25%, which fee shall accrue on the daily amount of the Commitment of such Lender (whether used or unused) for each
Excess Utilization Day during the period from and including the Closing Date to but excluding the date on which such Commitment terminates; provided
that, if such Lender continues to have any outstanding Loans after its Commitment terminates, then such Utilization Fee shall continue to accrue on the daily aggregate principal amount of such
Lender's Loans for each Excess Utilization Day from and including the date on which its Commitment terminates to but excluding the date on 


16





 

which
such Lender ceases to have any outstanding Loans. All Utilization Fees shall be computed on the basis of the actual number of days elapsed in a year of 360 days and shall be payable in
arrears. 


        (c)   The
Borrower agrees to pay the Administrative Agent, for its own account, the fees at the times and in the amounts provided for in the letter agreement dated June
    , 2003 among the Borrower, JPMorgan Chase Bank and J.P. Morgan Securities Inc. 


        (d)   All
fees shall be paid on the dates due, in immediately available funds, to the Administrative Agent for distribution, if and as appropriate, among the Lenders. Once
paid, none of the fees shall be refundable under any circumstances. 


        SECTION
2.8.    Repayment of Loans; Evidence of Debt.    


        (a)   The
Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Credit
Loan on the Termination Date. The Borrower hereby further agrees to pay to the Administrative Agent interest on the unpaid principal amount of the Revolving Credit Loans from time to time outstanding
from the date hereof until payment in full thereof at the rates per annum, and on the dates, set forth in Section 2.9. 



        (b)   The
Borrower unconditionally promises to pay to the Administrative Agent, for the account of each Lender that makes a Competitive Loan, on the last day of the Interest
Period applicable to such Competitive Loan, the principal amount of such Competitive Loan. The Borrower further unconditionally promises to pay interest on each such Competitive Loan for the period
from and including the date of Borrowing of such Competitive Loan on the unpaid principal amount thereof from time to time outstanding at the applicable rate per annum determined as provided in, and
payable as specified in, Section 2.9. 


        (c)   Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower to such Lender resulting from each Loan
of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. 


        (d)   The
Administrative Agent shall maintain the Register pursuant to Section 9.3(e), and a subaccount therein for each Lender, in which shall be recorded
(i) the amount of each Loan made hereunder, the Interest Rate Type thereof and each Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from each Borrower to each Lender hereunder and (iii) both the amount of any sum received by the Administrative Agent hereunder from the Borrower and each
Lender's share thereof. 


        (e)   The
entries made in the Register and the accounts of each Lender maintained pursuant to Section 2.8(c) 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 that the failure of any Lender or the Administrative Agent to maintain the Register or 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 made to the Borrower by such Lender in accordance with the terms of this Agreement. 


        (f)    The
Borrower agrees that, upon the request to the Administrative Agent by any Lender, the Borrower will execute and deliver to such Lender a promissory note of the
Borrower evidencing the Loans of such Lender, substantially in the form of Exhibit A-1 with appropriate insertions as to date and principal amount (a
"Revolving Credit Note"). 


        (g)   The
Borrower agrees that, upon the request to the Administrative Agent by any Lender, the Borrower will execute and deliver to such Lender a promissory note of the
Borrower evidencing the Competitive Loans of such Lender, substantially in the form of Exhibit A-2 with appropriate insertions as to date, principal amount and Currency (a
"Competitive Note"). 


17





 



        SECTION
2.9.    Interest on Loans.    


        (a)   Subject
to the provisions of Section 2.10, the Loans comprising each LIBOR Borrowing shall bear interest at a rate per annum equal to (i) in the case of
each LIBOR Revolving Credit Loan, LIBOR for the Interest Period in effect for such Borrowing plus the applicable LIBOR Spread from time to time in effect and (ii) in the case of each LIBOR
Competitive Loan, LIBOR for the Interest Period in effect for such Borrowing plus or minus the Margin offered by the Lender making such Loan and accepted by the Borrower pursuant to
Section 2.4. Interest on each LIBOR Borrowing shall be payable on each applicable Interest Payment Date. 


        (b)   Subject
to the provisions of Section 2.10, the Loans comprising each ABR Borrowing shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 365 or 366 days, as the case may be when determined by reference to the Prime Rate and over a year of 360 days at all other times) at a rate per annum equal to the
Alternate Base Rate plus the applicable margin therefor from time to time in effect in accordance with Section 2.22. 


        (c)   Subject
to the provisions of Section 2.10, each Fixed Rate Loan shall bear interest at a rate per annum (computed on the basis of the actual number of days
elapsed over a year of 360 days) equal to the fixed rate of interest offered by the Lender making such Loan and accepted by the Borrower pursuant to Section 2.4. 



        (d)   Interest
on each Loan shall be payable in arrears on each Interest Payment Date applicable to such Loan. The LIBOR or the Alternate Base Rate for each Interest Period or
day within an Interest Period shall be determined by the Administrative Agent and such determination shall be conclusive absent manifest error. 


        SECTION
2.10.    Interest on Overdue Amounts.    


If
the Borrower shall default in the payment of the principal of, or interest on, any Loan or any other amount becoming due hereunder, the Borrower shall on demand from time to time pay interest, to
the extent permitted by Applicable Law, on such defaulted amount up to (but not including) the date of actual payment (after as well as before judgment) at a rate per annum computed on the basis of
the actual number of days elapsed over a year of 365 or 366 days, as applicable, in the case of amounts bearing interest determined by reference to the Prime Rate and a year of 360 days
in all other cases, equal to (a) in the case of the remainder of the then current Interest Period for any LIBOR Loan or Fixed Rate Loan, the rate applicable to such Loan under
Section 2.9 plus 2% per annum and (b) in the case of any other amount, the rate that would at the time be applicable to an ABR Loan under Section 2.9 plus 2% per annum plus the
applicable margin for ABR Loans in effect from time to time in accordance with Section 2.22. 


        SECTION
2.11.    Alternate Rate of Interest.    


In
the event the Administrative Agent shall have determined that deposits in Dollars or the applicable Available Foreign Currency in the amount of the requested principal amount of any LIBOR Loan are
not generally available in the London Interbank Market (or such other interbank eurocurrency market where the foreign currency and exchange operations in respect of Dollars or such applicable
Available Foreign Currency, as the case may be, are then being conducted for delivery on the first day of such Interest Period), or that the rate at which such deposits are being offered will not
adequately and fairly reflect the cost to any Lender of making or maintaining its portion of such LIBOR Loans during such Interest Period, or that reasonable means do not exist for ascertaining LIBOR,
the Administrative Agent shall, as soon as practicable thereafter, give written or telecopier notice of such determination to the Borrower and the Lenders. In the event of any such determination,
until the Administrative Agent shall have determined that circumstances giving rise to such notice no longer exist, (a) any request by the Borrower for a LIBOR Competitive Borrowing pursuant to
Section 2.4 shall be of no force and effect and shall be denied by the Administrative Agent and (b) any request by the Borrower for a 


18





 



LIBOR
Borrowing pursuant to Section 2.5 shall be deemed to be a request for an ABR Loan. Each determination by the Administrative Agent hereunder shall be conclusive absent manifest error. 


        SECTION
2.12.    Termination and Reduction of Commitments.    


        (a)   The
Commitments of all of the Lenders shall be automatically terminated on the Termination Date. 


        (b)   Subject
to Section 2.13(b), upon at least three Business Days' prior irrevocable written or telecopy notice to the Administrative Agent (which shall promptly
notify each Lender), the Borrower may at any time in whole permanently terminate, or from time to time in part permanently reduce, the Commitments;  provided that (i) each partial reduction shall be
in an integral multiple of $1,000,000 and in a minimum principal amount of $10,000,000 and
(ii) the Borrower shall not be entitled to make any such termination or reduction that would reduce a type of Commitment to an amount less than the sum of the aggregate outstanding principal
Dollar Equivalent Amount of the related Loans. 


        (c)   Each
reduction in a type of Commitment hereunder shall be made ratably among the applicable Lenders in accordance with their respective Commitments. The Borrower shall
pay to the Administrative Agent for the account of the applicable Lenders on the date of each termination or reduction in a type of Commitment, the Facility Fees and the Utilization Fees on the amount
of the Commitments so terminated or reduced accrued to the date of such termination or reduction. 


        SECTION
2.13.    Prepayment of Loans.    


        (a)   Prior
to the Termination Date, the Borrower shall have the right at any time to prepay any Revolving Credit Borrowing, in whole or in part, subject to the requirements
of Section 2.17 but otherwise without premium or penalty, upon prior written or telecopy notice to the Administrative Agent (which shall promptly notify each Lender) before 2:00 p.m. New
York City time of at least one Business Day in the case of an ABR Loan and of at least three Working Days in the case of a LIBOR Loan; provided that
each such partial prepayment shall be in a minimum aggregate principal Dollar Equivalent Amount of $1,000,000 or a whole multiple in excess thereof. The Borrower shall not have the right to prepay any
Competitive Borrowing without the consent of the relevant Lender. 


        (b)   On
any date when the sum of the Dollar Equivalent Amount of the aggregate outstanding Loans (after giving effect to any Borrowings effected on such date) exceeds the
Total Commitment, the Borrower shall make a mandatory prepayment of the Loans in such amount as may be necessary so that the Dollar Equivalent Amount of the aggregate amount of outstanding Loans after
giving effect to such prepayment does not exceed the Total Commitment then in effect. Any prepayments required by this paragraph shall be applied to outstanding ABR Loans up to the full amount thereof
before they are applied to outstanding LIBOR Loans. 


        (c)   Each
notice of prepayment pursuant to this Section 2.13 shall specify the specific Borrowing(s), the prepayment date and the aggregate principal amount of each
Borrowing to be prepaid, shall be irrevocable and shall commit the Borrower to prepay such Borrowing(s) by the amount stated therein. All prepayments under this Section 2.13 shall be
accompanied by accrued interest on the principal amount being prepaid to the date of prepayment and any amounts due pursuant to Section 2.17. 



        SECTION
2.14.    Eurocurrency Reserve Costs.    


The
Borrower shall pay to the Administrative Agent for the account of each Lender, so long as such Lender shall be required under regulations of the Board to maintain reserves with respect to
liabilities or assets consisting of, or including, Eurocurrency Liabilities (as defined in Regulation D of the Board) (or, at any time when such Lender may be required by the Board or by any
other Governmental Authority, whether within the United States or in another relevant jurisdiction, to maintain reserves against any other category of liabilities which includes deposits by reference
to which LIBOR is 


19





 



determined
as provided in this Agreement or against any category of extensions of credit or other assets of such Lender which includes any such LIBOR Loans), additional interest on the unpaid
principal amount of each LIBOR Loan made to the Borrower by such Lender, from the date of such Loan until such Loan is paid in full, at an interest rate per annum equal at all times during the
Interest Period for such Loan to the remainder obtained by subtracting (i) LIBOR for such Interest Period from (ii) the rate obtained by multiplying LIBOR as referred to in
clause (i) above by the Statutory Reserves of such Lender for such Interest Period. Such additional interest shall be determined by such Lender and notified to the Borrower (with a copy to the
Administrative Agent) not later than five Business Days before the next Interest Payment Date for such Loan, and such additional interest so notified to the Borrower by any Lender shall be payable to
the Administrative Agent for the account of such Lender on each Interest Payment Date for such Loan. 


        SECTION
2.15.    Reserve Requirements; Change in Circumstances.    


        (a)   Notwithstanding
any other provision herein, if after the date of this Agreement any change in Applicable Law or regulation or in the interpretation or administration
thereof by any Governmental Authority charged with the interpretation or administration thereof (whether or not having the force of law) (i) shall subject any Lender to, or increase the net
amount of, any tax, levy, impost, duty, charge, fee, deduction or withholding with respect to any Loan, or shall change the basis of taxation of payments to any Lender of the principal of or interest
on any Loan made by such Lender or any other fees or amounts payable hereunder (other than (x) taxes imposed on the overall net income of such Lender by the jurisdiction in which such Lender
has its principal office or its applicable Lending Office or by any political subdivision or taxing authority therein (or any tax which is enacted or adopted by such jurisdiction, political
subdivision or taxing authority as a direct substitute for any such taxes) or (y) any tax, assessment, or other governmental charge that would not have been imposed but for the failure of any
Lender to comply with any certification, information, documentation or other reporting requirement), (ii) shall impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by, any Lender, or (iii) shall impose on any Lender or eurocurrency market any other condition affecting
this Agreement or any Loan made by such Lender, and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest or otherwise) in respect thereof by an amount deemed in good faith by such Lender to be material, then the Borrower
shall pay such additional amount or amounts as will compensate such Lender for such increase or reduction to such Lender upon demand by such Lender. 



        (b)   If,
after the date of this Agreement, any Lender shall have determined in good faith that the adoption after the date hereof of or any change after the date hereof in
any applicable law, rule, regulation or guideline regarding capital adequacy, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by any Lender (or any Lending Office of such Lender) with any request or directive regarding capital adequacy (whether
or not having the force of law) of any such Governmental Authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender's capital or on the
capital of such Lender's holding company, if any, as a consequence of its obligations hereunder to a level below that which such Lender (or its holding company) could have achieved but for such
applicability, adoption, change or compliance (taking into consideration such Lender's policies or the policies of its holding company, as the case may be, with respect to capital adequacy) by an
amount deemed by such Lender to be material, then, from time to time, the Borrower shall pay to the Administrative Agent for the account of such Lender (or its holding company) such additional amount
or amounts as will compensate such Lender for such reduction upon demand by such Lender. 


20







   
        (c)   A certificate of a Lender setting forth in reasonable detail (i) such amount or amounts as shall be necessary to compensate such Lender as specified in
paragraph (a) or (b) above, as the case may be, and (ii) the calculation of such amount or amounts referred to in the preceding clause (i), shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay the Administrative Agent for the account of such Lender the amount shown as due on any such certificate within 10
Business Days after its receipt of the same. 


        (d)   Failure
on the part of any Lender to demand compensation for any increased costs or reduction in amounts received or receivable or reduction in return on capital with
respect to any Interest Period shall not constitute a waiver of such Lender's rights to demand compensation for any increased costs or reduction in amounts received or receivable or reduction in
return on capital with respect to such Interest Period or any other Interest Period. The protection of this Section 2.15 shall be available to each Lender regardless of any possible contention
of invalidity or inapplicability of the law, regulation or condition which shall have been imposed. 


        (e)   Each
Lender agrees that, as promptly as practicable after it becomes aware of the occurrence of an event or the existence of a condition that (i) would cause it
to incur any increased cost under this Section 2.15, Section 2.16 or Section 2.21 or (ii) would require the Borrower to pay an increased amount under this
Section 2.15, Section 2.16 or Section 2.21, it will use reasonable efforts to notify the Borrower of such event or condition and, to the extent not inconsistent with such Lender's
internal policies, will use its reasonable efforts to make, fund or maintain the affected Loans of such Lender through another Lending Office of such Lender if as a result thereof the additional
monies which would otherwise be required to be paid or the reduction of amounts receivable by such Lender thereunder in respect of such Loans would be materially reduced, or any inability to perform
would cease to exist, or the increased costs which would otherwise be required to be paid in respect of such Loans pursuant to this Section 2.15, Section 2.16 or Section 2.21
would be materially reduced or the taxes or other amounts otherwise payable under this Section 2.15, Section 2.16 or Section 2.21 would be materially reduced, and if, as
determined by such Lender, in its sole reasonable discretion, the making, funding or maintaining of such Loans through such other Lending Office would not otherwise materially adversely affect such
Loans. 


        (f)    In
the event any Lender shall have delivered to the Borrower a notice that LIBOR Loans are no longer available from such Lender pursuant to Section 2.16, that
amounts are due to such Lender pursuant to paragraph (c) above, that any of the events designated in paragraph (e) above have occurred or that a Lender shall not be rated at least BBB by
S&P and Baa2 by Moody's, the Borrower may (but subject in any such case to the payments required by Section 2.17), provided that there shall
exist no Default or Event of Default, upon at least five Business Days' prior written or telecopier notice to such Lender and the Administrative Agent, but not more than 30 days after receipt
of notice from such Lender, identify to the Administrative Agent a lending institution reasonably acceptable to the Administrative Agent which will purchase the Commitment, the amount of outstanding
Loans from the Lender providing such notice and such Lender shall thereupon assign its Commitment, any Loans owing to such Lender and the Notes held by such Lender to such replacement lending
institution pursuant to Section 9.3. Such notice shall specify an effective date for such assignment and at the time thereof, the Borrower shall pay all accrued interest, Facility Fees,
Utilization Fees and all other amounts (including without limitation all amounts payable under this Section and Sections 2.21, 9.4 and 9.5) owing hereunder to such Lender as at such effective date for
such assignment. 


        SECTION
2.16.    Change in Legality.    


        (a)   Notwithstanding
anything to the contrary herein contained, if any change in any law or regulation or in the interpretation thereof by any Governmental Authority charged
with the administration or interpretation thereof shall make it unlawful for any Lender to make or maintain any 


21






 



LIBOR
Loan or to give effect to its obligations as contemplated hereby, then, by written notice to the Borrower and to the Administrative Agent, such Lender may: 



          (i)  declare
that LIBOR Loans will not thereafter be made by such Lender hereunder, whereupon such Lender shall not submit a Competitive Bid in response to a request for
LIBOR Competitive Loans and the Borrower shall be prohibited from requesting LIBOR Revolving Credit Loans from such Lender hereunder unless such declaration is subsequently withdrawn; and 



         (ii)  require
that all outstanding LIBOR Loans (in Dollars) made by it be converted to ABR Loans in which event (A) all such LIBOR Loans shall be automatically
converted to ABR Loans as of the effective date of such notice as provided in Section 2.16(b) and (B) all payments and prepayments of principal which would otherwise have been applied to
repay the converted LIBOR Loans shall instead be applied to repay the ABR Loan resulting from the conversion of such LIBOR Loans. 




        (b)   For
purposes of this Section 2.16, a notice to the Borrower by any Lender pursuant to Section 2.16(a) shall be effective on the date of receipt thereof by
the Borrower. 


        SECTION
2.17.    Reimbursement of Lenders.    


        (a)   The
Borrower shall reimburse each Lender on demand for any loss incurred or to be incurred by it in the reemployment of the funds released (i) by any prepayment
(for any reason, including any refinancing) of any LIBOR or Fixed Rate Loan if such Loan is repaid other than on the last day of the applicable Interest Period for such Loan or (ii) in the
event that after the Borrower delivers a notice of borrowing under Section 2.5 in respect of LIBOR Revolving Credit Loans or a Competitive Bid Accept/Reject Letter under Section 2.4(d),
pursuant to which it has accepted Competitive Bids of one or more of the Lenders, the applicable Loan is not made on the first day of the Interest Period specified by the Borrower for any reason other
than (I) a suspension or limitation under Section 2.16 of the right of the Borrower to select a LIBOR Loan or (II) a breach by a Lender of its obligations hereunder. In the case
of such failure to borrow, such loss shall be the amount as reasonably determined by such Lender as the excess, if any, of (A) the amount of interest which would have accrued to such Lender on
the amount not borrowed, at a rate of interest equal to the interest rate applicable to such Loan pursuant to Section 2.9, for the period from the date of such failure to borrow to the last day
of the Interest Period for such Loan which would have commenced on the date of such failure to borrow, over (B) the amount realized by such Lender in reemploying the funds not advanced during
the period referred to above. In the case of a payment other than on the last day of the Interest Period for a Loan, such loss shall be the amount of the excess, if any, of (A) the amount of
interest which would have accrued on the amount so paid at a rate of interest equal to the interest rate applicable to such Loan pursuant to Section 2.9, for the period from the date of such
payment to the last day of the then current Interest Period for such Loan, over (B) an amount equal to the product of (x) the amount of the Loan so paid  times (y) the current daily yield
on U.S. Treasury Securities (at such date of determination) with maturities approximately equal to the
remaining Interest Period for such Loan times (z) the number of days remaining in the Interest Period for such Loan. Each Lender shall deliver to
the Borrower from time to time one or more certificates setting forth the amount of such loss (and in reasonable detail the manner of computation thereof) as determined by such Lender, which
certificates shall be conclusive absent manifest error. The Borrower shall pay to the Administrative Agent for the account of each Lender the amount shown as due on any certificate within thirty
(30) days after its receipt of the same. 


        (b)   In
the event the Borrower fails to prepay any Loan on the date specified in any prepayment notice delivered pursuant to Section 2.13(a), the Borrower on demand by
any Lender shall pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any loss incurred by such Lender as a result of such failure to
prepay, including, without limitation, any loss, cost or expenses incurred by reason of the acquisition of deposits or other funds by such 


22





 



Lender
to fulfill deposit obligations incurred in anticipation of such prepayment. Each Lender shall deliver to the Borrower and the Administrative Agent from time to time one or more certificates
setting forth the amount of such loss (and in reasonable detail the manner of computation thereof) as determined by such Lender, which certificates shall be conclusive absent manifest error. 


        SECTION
2.18.    Pro Rata Treatment.    


Except
as permitted under Sections 2.14, 2.15(c), 2.15(f), 2.16, 2.17 and 4.1(f), each Borrowing, each reduction of the aggregate Commitments shall be allocated pro rata among the Lenders in
accordance with their respective Commitments (or, if such Commitments shall have expired or been terminated, in accordance with the respective principal amount of their Loans) and each payment or
prepayment of principal of any Borrowing and each payment of interest on the Loans shall be allocated pro rata in accordance with the respective principal amount of the Loans then held by the Lenders.
Each payment of principal of any Competitive Borrowing shall be allocated pro rata among the Lenders participating in such Borrowing in accordance with the respective principal amounts of their
outstanding Competitive Loans comprising such Borrowing. Each payment of interest on any Competitive Borrowing shall be allocated pro rata among the Lenders participating in such Borrowing in
accordance with the respective amounts of accrued and unpaid interest on their outstanding Competitive Loans comprising such Borrowing. For purposes of determining the available Commitments of the
Lenders at any time, each outstanding Competitive Borrowing shall be deemed to have utilized the Commitments of the Lenders (including those Lenders that shall not have made Loans as part of such
Competitive Borrowing) pro rata in accordance with such respective Commitments. Each Lender agrees that in computing such Lender's portion of any Borrowing to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender's percentage of such Borrowing computed in accordance with Section 2.1, to the next higher or lower whole Dollar amount. 


        SECTION
2.19.    Right of Setoff.    


If
any Event of Default shall have occurred and be continuing and any Lender shall have requested the Administrative Agent to declare the Loans immediately due and payable pursuant to
Article 7, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held by such Lender and any other indebtedness at any time owing by such Lender to, or for the credit or the account of, each Borrower, against any of
and all the obligations now or hereafter existing under this Agreement and the Loans held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement or
such Loans and although such obligations may be unmatured. Each Lender agrees promptly to notify the Borrower after any such setoff and application made by such Lender, but the failure to give such
notice shall not affect the validity of such setoff and application. The rights of each Lender under this Section 2.19 are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have and are subject to the provisions of Section 8.2. 


        SECTION
2.20.    Manner of Payments.    


All
payments by the Borrower hereunder and under the Notes shall be made in Dollars or other applicable Currency in immediately available funds, without setoffs, deductions or counterclaims, at the
office of the Administrative Agent's Agent Bank Services Department, JPMorgan Chase Bank, 111 Fannin, 10th floor, Houston, Texas 77002, Attention: Leah Hughes (Telephone:
(713) 750-2885; Telecopy: (713) 750-2932), for credit to PHH Corporation Clearing Account, Account No. 323-5-11260 (Reference: PHH
Corporation Credit Agreement dated as of March 4, 1997), with a copy to Dakisha Allen, JPMorgan Chase Bank, 111 Fannin, 10th floor, Houston, Texas 77002 (Telephone
(713) 750-3541; Telecopy (713) 750-2932) or as otherwise directed by the Borrower (with the consent of the Administrative Agent, which consent shall not be
unreasonably withheld) no later than 4:30 p.m., New York City time, on the date on which such payment shall be due. Interest in respect of any Loan 


23





 



hereunder
shall accrue from and including the date of such Loan to, but excluding, the date on which such Loan is paid or refinanced with a Loan of a different Interest Rate Type. 


        SECTION
2.21.    Withholding Taxes.    


        (a)   Prior
to the date of the initial Loans hereunder, and from time to time thereafter if requested by the Borrower or the Administrative Agent or required because, as a
result of a change in Applicable Law or a change in circumstances or otherwise, a previously delivered form or statement becomes incomplete or incorrect in any material respect, each Lender organized
under the laws of a jurisdiction outside the United States shall provide, if applicable, the Administrative Agent and the Borrower with complete, accurate and duly executed forms or other statements
prescribed by a Governmental Authority certifying such Lender's exemption, if any, from, or entitlement to a reduced rate, if any, of, withholding taxes (including backup withholding taxes) with
respect to all payments to be made to such Lender hereunder and under the Notes. 


        (b)   The
Borrower and the Administrative Agent shall be entitled to deduct and withhold any and all present or future taxes or withholdings, and all liabilities with respect
thereto, from payments hereunder or under the Notes, if and to the extent that the Borrower or the Administrative Agent in good faith determines that such deduction or withholding is required by
Applicable Law, including, without limitation, any applicable treaty. In the event the Borrower or the Administrative Agent shall so determine that deduction or withholding of taxes is required, it
shall advise the affected Lender as to the basis of such determination prior to actually deducting and withholding such taxes. In the event the Borrower or the Administrative Agent shall so deduct or
withhold taxes from amounts payable hereunder, it (i) shall pay to or deposit with the appropriate taxing authority in a timely manner the full amount of taxes it has deducted or withheld;
(ii) shall provide evidence of payment of such taxes to, or the deposit thereof with, the appropriate taxing authority and a statement setting forth the amount of taxes deducted or withheld,
the applicable rate, and any other information or documentation reasonably requested by the Lenders from whom the taxes were deducted or withheld; and (iii) shall forward to such Lenders any
receipt for such payment or deposit of the deducted or withheld taxes as may be issued from time to time by the appropriate taxing authority. Unless the Borrower and the Administrative Agent have
received forms or other documents satisfactory to them indicating that payments hereunder or under the Notes are not subject to withholding tax or are subject to such tax at a rate reduced by an
applicable tax treaty, the Borrower or the Administrative Agent may withhold taxes from such payments at the applicable statutory rate in the case of payments to or for any Lender. 


        (c)   Each
Lender agrees (i) that as between it and the Borrower or the Administrative Agent, it shall be the Person to deduct and withhold taxes, and to the extent
required by law it shall deduct and withhold taxes, on amounts that such Lender may remit to any other Person(s) by reason of any undisclosed transfer or assignment of an interest in this Agreement to
such other Person(s) pursuant to paragraph (g) of Section 9.3 and (ii) to indemnify the Borrower and the Administrative Agent and any of their officers, directors, agents, or
employees against, and to hold them harmless from, any tax, interest, additions to tax, penalties, reasonable counsel and accountants' fees, disbursements or payments arising from the assertion by any
appropriate taxing authority of any claim against them relating to a failure to withhold taxes as required by Applicable Law with respect to amounts described in clause (i) of this
paragraph (c). 


        (d)   Each
assignee of a Lender's interest in this Agreement in conformity with Section 9.3 shall be bound by this Section 2.21, so that such assignee will have
all of the obligations and provide all of the forms and statements and all indemnities, representations and warranties required to be given under this Section 2.21. 


        (e)   In
the event that any withholding taxes shall become payable as a result of any change in any statute, treaty, ruling, determination or regulation occurring after the
Initial Date (as defined below) in respect of any sum payable hereunder or under any other Fundamental Document to any Lender or 


24





 



the
Administrative Agent (i) the sum payable by the Borrower shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional
sums payable under this Section 2.21) such Lender or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower, the Lender or the Administrative Agent (as the case may be) shall make such deductions and (iii) the Borrower, the Lender or the Administrative Agent (as the case may
be) shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with Applicable Law. For purposes of this Section 2.21, the term "Initial Date" shall
mean (i) in the case of the Administrative Agent, the date hereof, (ii) in the case of each Lender as of the date hereof, the date hereof and (iii) in the case of any other
Lender, the effective date of the Assignment and Acceptance pursuant to which it became a Lender. 


        SECTION
2.22.    Certain Pricing Adjustments.    


The
Facility Fee and the applicable LIBOR Spread in effect from time to time shall be determined in accordance with the following table: 



	S&P/Moody's/Fitch Rating Equivalent of the Borrower's senior unsecured long-term debt
 
	 	Facility Fee (in Basis Points)
	 	Applicable LIBOR

Spread (in Basis Points)

	A/A2/A or better	 	10.0	 	52.5
	A-/A3/A-	 	12.5	 	62.5
	BBB+/Baa1/BBB+	 	15.0	 	72.5
	BBB/Baa2/BBB	 	17.5	 	82.5
	BBB-/Baa3/BBB-	 	22.5	 	90.0
	BB+/Ba1/BB+ or worse	 	37.5	 	137.5






In
the event the S&P, Moody's and Fitch ratings on the Borrower's senior non-credit enhanced unsecured long-term debt are not equivalent to each other, the higher rating of S&P
or Moody's will determine the Facility Fee and applicable LIBOR Spread, unless the ratings are more than one level apart, in which case the rating one level below the higher rating of S&P or Moody's
will be determinative. In the event that (a) the Borrower's senior non-credit enhanced unsecured long-term debt is rated by (i) Fitch and only one of S&P or
Moody's, or (ii) only one of S&P or Moody's (for any reason, including if S&P or Moody's shall cease to be in the business of rating corporate debt obligations), and not by Fitch, or
(b) if the rating system of any of S&P, Moody's or Fitch shall change, then an amendment shall be negotiated in good faith (and shall be effective only upon approval by the Borrower and the
Supermajority Lenders) to the references to specific ratings in the table above to reflect such changed rating system or the unavailability of ratings from such rating agency (including an amendment
to provide for the substitution of an equivalent or successor ratings agency). In the event that the Borrower's senior unsecured long-term debt is (i) not rated by any of S&P,
Moody's or Fitch or (ii) rated only by Fitch, then the Facility Fee and the applicable LIBOR Spread shall be deemed to be calculated as if the lowest rating category set forth above applied.
Any increase in the Facility Fee or the applicable LIBOR Spread determined in accordance with the foregoing table shall become effective on the date of announcement or publication by the Borrower or
the applicable rating agency of a reduction in such rating or, in the absence of such announcement or publication, on the effective date of such decreased rating, or on the date of any request by the
Borrower to the applicable rating agency not to rate its senior unsecured long-term debt or on the date any of such rating agencies announces it shall no longer rate the Borrower's senior
unsecured long-term debt. Any decrease in the Facility Fee or applicable LIBOR Spread shall be effective on the date of announcement or publication by any of such rating agencies of an
increase in rating or in the absence of announcement or publication on the effective date of such increase in rating. The applicable margin for ABR Loans shall be 1% less than the applicable LIBOR
Spread (but not less than 0%). 


25





 



3.     REPRESENTATIONS AND WARRANTIES OF BORROWER  


        In order to induce the Lenders to enter into this Agreement and to make the Loans, the Borrower makes the following representations and warranties to the
Administrative Agent and the Lenders, all of which shall survive the execution and delivery of this Agreement, the issuance of the Notes and the making of the Loans: 



        SECTION
3.1.    Corporate Existence and Power.    


The
Borrower and its Subsidiaries have been duly organized and are validly existing in good standing under the laws of their respective jurisdictions of incorporation and are in good standing or have
applied for authority to operate as a foreign corporation in all jurisdictions where the nature of their properties or business so requires it and where a failure to be in good standing as a foreign
corporation would have a Material Adverse Effect. The Borrower has the corporate power to execute, deliver and perform its obligations under this Agreement and the other Fundamental Documents and
other documents contemplated hereby and to borrow hereunder. 


        SECTION
3.2.    Corporate Authority and No Violation.    


The
execution, delivery and performance of this Agreement and the other Fundamental Documents and the borrowings hereunder (a) have been duly authorized by all necessary corporate action on the
part of the Borrower, (b) will not violate any provision of any Applicable Law applicable to the Borrower or any of its Subsidiaries or any of their respective properties or assets,
(c) will not violate any provision of the Certificate of Incorporation or By-Laws of the Borrower or any of its Subsidiaries, or any material Contractual Obligation of the Borrower
or any of its Subsidiaries, (d) will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, any material indenture, agreement,
bond, note or instrument and (e) will not result in the creation or imposition of any Lien upon any property or assets of the Borrower or any of its Subsidiaries other than pursuant to this
Agreement or any other Fundamental Document. 


        SECTION
3.3.    Governmental and Other Approval and Consents.    


No
action, consent or approval of, or registration or filing with, or any other action by, any governmental agency, bureau, commission or court is required in connection with the execution, delivery
and performance (including the making of borrowings) by the Borrower of this Agreement or the other Fundamental Documents. 


        SECTION
3.4.    Financial Statements of Borrower.    


The
(a) audited consolidated financial statements of the Borrower and its Consolidated Subsidiaries as of December 31, 2001 and December 31, 2002, and (b) unaudited
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as of March 31, 2003, in each case, together with the related unaudited statements of income, shareholders' equity
and cash flows for the periods then ended fairly present the financial position of the Borrower and its Consolidated Subsidiaries as at the dates indicated and the results of operations and cash flows
for the periods indicated in conformity with
GAAP subject to normal year-end adjustments in the case of such quarterly financial statements. 


        SECTION
3.5.    No Material Adverse Change.    


Since
December 31, 2002 there has been no material adverse change in the business, assets, operations or condition, financial or otherwise, of the Borrower and its Consolidated Subsidiaries
taken as a whole; provided that the foregoing representation is made solely as of the Closing Date. 



        SECTION
3.6.    Copyrights, Patents and Other Rights.    


Each
of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, service marks, copyrights, patents and other intellectual property material to its business, and the
use 


26





 



thereof
by the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. 


        SECTION
3.7.    Title to Properties.    


Each
of the Borrower and its Material Subsidiaries will have at the Closing Date good title or valid leasehold interests to each of the properties and assets reflected on the balance sheets referred
to in Section 3.4, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended
purposes, and all such properties and assets will be free and clear of Liens, except Permitted Encumbrances. 


        SECTION
3.8.    Litigation.    


There
are no lawsuits or other proceedings pending (including, but not limited to, matters relating to environmental liability), or, to the knowledge of the Borrower, threatened, against or affecting
the Borrower or any of its Subsidiaries or any of their respective properties, by or before any Governmental Authority or arbitrator, which could reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any of its Subsidiaries is in default with respect to any order, writ,
injunction, decree, rule or regulation of any Governmental Authority, which default would have a Material Adverse Effect. 



        SECTION
3.9.    Federal Reserve Regulations.    


Neither
the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin
Stock. No part of the proceeds of the Loans will be used, whether immediately, incidentally or ultimately, for any purpose violative of or inconsistent with any of the provisions of
Regulation T, U or X of the Board. 


        SECTION
3.10.    Investment Company Act, Public Utility Company Act.    



The
Borrower is not, and will not during the term of this Agreement be, (x) an "investment company", within the meaning of the Investment Company Act of 1940, as amended or (y) subject
to regulation under the Public Utility Holding Company Act of 1935 or the Federal Power Act. 


        SECTION
3.11.    Enforceability.    


This
Agreement and the other Fundamental Documents when executed will constitute legal, valid and enforceable obligations (as applicable) of the Borrower (subject, as to enforcement, to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and to general principles of equity). 



        SECTION
3.12.    Taxes.    


The
Borrower and each of its Subsidiaries have filed or caused to be filed all federal, provincial, state and local tax returns which are required to be filed, and have paid or have caused to be paid
all taxes as shown on said returns or on any assessment received by them in writing, to the extent that such taxes have become due, except (a) as permitted by Section 5.4 or
(b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. 


        SECTION
3.13.    Compliance with ERISA.    



Each
of the Borrower and its Subsidiaries is in compliance in all material respects with the provisions of ERISA and the Code applicable to Plans, and the regulations and published interpretations
thereunder, if any, which are applicable to it and the applicable laws, rules and regulations of any jurisdiction applicable to Plans. Neither the Borrower nor any of its Subsidiaries has, with
respect to any Plan established or maintained by it, engaged in a prohibited transaction which would subject it to 


27





 



a
material tax or penalty on prohibited transactions imposed by ERISA or Section 4975 of the Code. No liability to the PBGC that is material to the Borrower and its Subsidiaries taken as a
whole has been, or to the Borrower's best knowledge is reasonably expected to be, incurred with respect to the Plans and there has been no Reportable Event and no other event or condition that
presents a material risk of termination of a Plan by the PBGC. Neither the Borrower nor any of its Subsidiaries has engaged in a transaction which would result in the incurrence of a material
liability under Section 4069 of ERISA. As of the Closing Date, neither the Borrower nor any of its Subsidiaries contributes to a Multiemployer Plan, and has not incurred any liability that
would be material to the Borrower and its Subsidiaries taken as a whole on account of a partial or complete withdrawal (as defined in Sections 4203 and 4205 of ERISA, respectively) with respect to any
Multiemployer Plan. 


        SECTION
3.14.    Disclosure.    


As
of the Closing Date, neither this Agreement nor the Confidential Information Memorandum dated June 2003, at the time it was furnished, contained any untrue statement of a material fact or
omitted to state a material fact, under the circumstances under which it was made, necessary in order to make the statements contained herein or therein not misleading. At the Closing Date, there is
no fact known to the Borrower which, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 



        SECTION
3.15.    Environmental Liabilities.    


Except
with respect to any matters, that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 



4.     CONDITIONS OF LENDING  


        SECTION
4.1.    Conditions Precedent to Effectiveness.    


The
effectiveness of this Agreement is subject to the following conditions precedent: 



        (a)    Loan Documents.    The Administrative Agent shall have received this Agreement and each of the other
Fundamental Documents, each executed and delivered by a duly authorized officer of the Borrower. 



        (b)    Corporate Documents for the Borrower.    The Administrative Agent shall have received, with copies for each of
the Lenders, a certificate of the Secretary or Assistant Secretary of the Borrower dated the date hereof and certifying (A) that attached thereto is a true and complete copy of the certificate
of incorporation and by-laws of the Borrower as in effect on the date of such certification; (B) that attached thereto is a true and complete copy of resolutions adopted by the
Board of Directors of the Borrower authorizing the borrowings hereunder and the execution, delivery and performance in accordance with their respective terms of this Agreement and any other documents
required or contemplated hereunder; and (C) as to the incumbency and specimen signature of each officer of the Borrower executing this Agreement or any other document delivered by it in
connection herewith (such certificate to contain a certification by another officer of the Borrower as to the incumbency and signature of the officer signing the certificate referred to in this
paragraph (b)). 


        (c)    Financial Statements.    The Lenders shall have received the (i) audited consolidated financial
statements of the Borrower and its Consolidated Subsidiaries as of and for the fiscal years 



28





 




ended
December 31, 2001 and December 31, 2002 and (ii) unaudited consolidated financial statements of the Borrower and its Consolidated Subsidiaries as of March 31, 2003. 


        (d)    Opinions of Counsel.    The Administrative Agent shall have received the favorable written opinions, dated as
of the date hereof and addressed to the Administrative Agent and the Lenders, of internal counsel of PHH Corporation and of Skadden, Arps, Slate, Meagher & Flom LLP, substantially in the form
of Exhibits B-1 and B-2 hereto respectively. 


        (e)    No Material Adverse Change.    The Administrative Agent shall be satisfied that no material adverse change
shall have occurred with respect to the business, assets, operations or condition, financial or otherwise, of the Borrower and its Consolidated Subsidiaries, taken as a whole, since
December 31, 2002. 


        (f)    Payment of Fees.    The Administrative Agent shall be satisfied that all amounts payable to the Lead Arranger,
the Administrative Agent and the other Lenders pursuant hereto or with regard to the transactions contemplated hereby have been or are simultaneously being paid. 


        (g)    Closing Date Payments.    The Borrower and the Lenders shall have made such payments among themselves on the
Closing Date as directed by the Administrative Agent with the result that, after giving effect thereto, the outstanding Revolving Credit Loans if any, shall be held by the Lenders pro rata in
accordance with their respective Commitments. The Borrower shall have paid to the Administrative Agent, for the account of the respective lenders under the Existing Credit Agreement, all unpaid fees
and other amounts accrued under the Existing Credit Agreement to the Closing Date. 


        (h)    Litigation.    No litigation shall be pending or, to the Borrower's knowledge, threatened which would be likely
to have a Material Adverse Effect, or which could reasonably be expected to materially adversely affect the ability of the Borrower to fulfill their obligations hereunder or to otherwise materially
impair the interests of the Lenders. 


        (i)    Officer's Certificate.    The Administrative Agent shall have received a certificate of the chief executive
officer or chief financial officer or chief accounting officer of the Borrower certifying, as of the Closing Date, compliance with the conditions set forth in paragraphs (b) and (c) of
Section 4.2. 




        SECTION
4.2.    Conditions Precedent to Each Loan.    The obligation of the Lenders to make each Loan, including the
initial Loan hereunder, is subject to the following conditions precedent: 



        (a)    Notice.    The Administrative Agent shall have received a notice with respect to such Borrowing as required by
Article 2 hereof. 



29







  



        (b)    Representations and Warranties.    The representations and warranties set forth in Article 3 (other than
those set forth in Section 3.5, which shall be deemed made only on the Closing Date) and in the other Fundamental Documents shall be true and correct in all material respects on and as of the
date of each Borrowing hereunder (except to the extent that such representations and warranties expressly relate to an earlier date) with the same effect as if made on and as of such date;  provided that
this condition shall not apply to a Revolving Credit Borrowing which is solely refinancing outstanding Revolving Credit Loans and which,
after giving effect thereto, has not increased the aggregate amount of outstanding Revolving Credit Loans. 


        (c)    No Event of Default.    On the date of each Borrowing hereunder, the Borrower shall be in material compliance
with all of the terms and provisions set forth herein to be observed or performed and no Event of Default or Default shall have occurred and be continuing on such date or after giving effect to the
Borrowing to be made on such date; provided that this condition shall not apply to a Revolving Credit Borrowing which is solely refinancing outstanding
Revolving Credit Loans and which, after giving effect thereto, has not increased the aggregate amount of outstanding Revolving Credit Loans. 




Each
Borrowing shall be deemed to be a representation and warranty by the Borrower on the date of such Borrowing as to the matters specified in paragraphs (b) and (c) of this Section. 


5.     AFFIRMATIVE COVENANTS  


        For so long as the Commitments shall be in effect or any amount shall remain outstanding under any Note or unpaid under this Agreement, the Borrower agrees that,
unless the Required Lenders shall otherwise consent in writing, it will, and will cause each of its Subsidiaries to: 


        SECTION
5.1.    Financial Statements, Reports, etc.    


Deliver
to each Lender: 



        (a)   As
soon as is practicable, but in any event within 100 days after the end of each fiscal year of the Borrower, (i) either (A) consolidated
statements of income (or operations) and consolidated statements of cash flows and changes in stockholders' equity of the Borrower and its Consolidated Subsidiaries for
such year and the related consolidated balance sheets as at the end of such year, or (B) the Form 10K filed by the Borrower with the Securities and Exchange Commission and (ii) if
not included in such Form 10K, an opinion of independent certified public accountants of recognized national standing, which opinion shall state that said consolidated financial statements
fairly present the consolidated financial position and results of operations of the Borrower and its Consolidated Subsidiaries as at the end of, and for, such fiscal year and that such financial
statements were prepared in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods; 


        (b)   As
soon as is practicable, but in any event within 60 days after the end of each of the first three fiscal quarters of each fiscal year, either (i) the
Form 10-Q filed by the Borrower with the Securities and Exchange Commission or (ii) the unaudited consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, as at the end of such fiscal quarter, and the related unaudited statements of income and cash flows for such quarter and for the period from the beginning of the then current fiscal year
to the end of such fiscal quarter and the corresponding figures as of the end of the preceding fiscal year, and for the corresponding period in the preceding fiscal year, in each case, together with a
certificate (substantially in the form of Exhibit D) signed by the chief financial officer, the chief accounting officer or a vice president responsible for financial administration of the
Borrower to the effect that such financial statements, while not examined by independent public accountants, reflect, in his opinion and in the opinion of the Borrower, all adjustments necessary to
present fairly the financial position of 



30





 




the
Borrower and its Consolidated Subsidiaries, as the case may be, as at the end of the fiscal quarter and the results of their operations for the quarter then ended in conformity with GAAP
consistently applied, subject only to year-end and audit adjustments and to the absence of footnote disclosure; 



        (c)   Together
with the delivery of the statements referred to in paragraphs (a) and (b) of this Section 5.1, a certificate of the chief financial
officer, chief accounting officer or a vice president responsible for financial administration of the Borrower, substantially in the form of Exhibit D hereto (i) stating whether or not
the signer has knowledge of any Default or Event of Default and, if so, specifying each such Default or Event of Default of which the signer has knowledge and the nature thereof and
(ii) demonstrating in reasonable detail compliance with the provisions of Sections 6.6 and 6.7; 


        (d)   Promptly
upon any executive officer of the Borrower or any of its Subsidiaries obtaining knowledge of the occurrence of any Default or Event of Default, a certificate of
the president, chief financial officer or chief accounting officer of the Borrower specifying the nature and period of existence of such Default or Event of Default and what action the Borrower has
taken, is taking and proposes to take with respect thereto; and 


        (e)   Promptly
upon any executive officer of the Borrower or any of its Subsidiaries obtaining knowledge of (i) the institution of any action, suit, proceeding,
investigation or arbitration by any Governmental Authority or other Person against or affecting the Borrower or any of its Subsidiaries or any of their
assets, or (ii) any material development in any such action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Lenders), which, in each case might
reasonably be expected to have a Material Adverse Effect, prompt notice thereof and such other information as may be reasonably available to it (without waiver of any applicable evidentiary privilege)
to enable the Lenders to evaluate such matters. 




        SECTION
5.2.    Corporate Existence; Compliance with Statutes.    


Do
or cause to be done all things necessary to preserve, renew and keep in full force and effect its corporate existence, rights, licenses, permits and franchises and comply, except where failure to
comply, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, with all provisions of Applicable Law, and all applicable restrictions imposed
by any Governmental Authority, and all state and provincial laws and regulations of similar import; provided that mergers, dissolutions and liquidations
permitted under Section 6.3 shall be permitted. 


        SECTION
5.3.    Insurance.    


Maintain
with good and reputable insurers insurance in such amounts and against such risks as are customarily insured against by companies in similar businesses; provided
however, that (a) workmen's compensation insurance or similar coverage may be effected with respect to its operations in any particular state or other jurisdiction
through an insurance fund operated by such state or jurisdiction and (b) such insurance may contain self-insurance retention and deductible levels consistent as such insurance is
usually carried by companies of established reputation and comparable size. 


        SECTION
5.4.    Taxes and Charges.    


Duly
pay and discharge, or cause to be paid and discharged, before the same shall become delinquent, all federal, state or local taxes, assessments, levies and other governmental charges, imposed upon
the Borrower or any of its Subsidiaries or their respective properties, sales and activities, or any part thereof, or upon the income or profits therefrom, as well as all claims for labor, materials,
or supplies which if unpaid could reasonably be expected to result in a Material Adverse Effect; provided that any such tax, assessment, charge, levy or
claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate proceedings and if the Borrower shall have set 


31





 



aside
on its books reserves (the presentation of which is segregated to the extent required by GAAP) adequate with respect thereto if reserves shall be deemed necessary by the Borrower in accordance
with GAAP; and provided, further, that the Borrower will pay all such taxes, assessments, levies or
other governmental charges forthwith upon the commencement of proceedings to foreclose any Lien which may have attached as security therefor (unless the same is fully bonded or otherwise effectively
stayed). 


        SECTION
5.5.    ERISA Compliance and Reports.    


Furnish
to the Administrative Agent (a) as soon as possible, and in any event within 30 days after any executive officer (as defined in Regulation C under the Securities Act of
1933, as amended) of the Borrower knows that (i) any Reportable Event with respect to any Plan has occurred, a statement of the chief financial officer of the Borrower, setting forth details as
to such Reportable Event and the action which it proposes to take with respect thereto, together with a copy of the notice, if any, required to be filed by the Borrower or any of its Subsidiaries of
such Reportable Event with the PBGC or (ii) an accumulated funding deficiency has been incurred or an application has been made to the Secretary of the Treasury for a waiver or modification of
the minimum funding standard or an extension of any amortization period under Section 412 of the Code with respect to a Plan, a Plan has been or is proposed to be terminated in a "distress
termination" (as defined in Section 4041(c) of ERISA), proceedings have been instituted to terminate a Plan or a Multiemployer Plan, a proceeding has been instituted to collect a delinquent
contribution to a Plan or a Multiemployer Plan, or either the Borrower or any of its Subsidiaries will incur any liability (including any contingent or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 4062, 4063 or 4064 of ERISA or the withdrawal or partial withdrawal from a Multiemployer Plan under Section 4201 or 4204 of ERISA,
a statement of the chief financial officer of the Borrower, setting forth details as to such event and the action it proposes to take with respect thereto, (b) promptly upon the reasonable
request of the Administrative Agent, copies of each annual and other report with respect to each Plan and (c) promptly after receipt thereof, a copy of any notice the Borrower or any of its
Subsidiaries may receive from the PBGC relating to the PBGC's intention to terminate any Plan or to appoint a trustee to administer any Plan; provided
that the Borrower shall not be required to notify the Administrative Agent of the occurrence of any of the events set forth in the preceding clauses (a) and (c) unless such event,
individually or in the aggregate, could reasonably be expected to result in a material liability to the Borrower and its Subsidiaries taken as a whole. The Administrative Agent shall provide any
information delivered to it under this Section 5.5 to any Lender upon such Lender's request. 


        SECTION
5.6.    Maintenance of and Access to Books and Records; Examinations.    


Maintain
or cause to be maintained at all times true and complete books and records of its financial operations (in accordance with GAAP) and, after the occurrence and during the continuance of an
Event of Default (at a time during which Loans are outstanding), provide the Administrative Agent and its representatives access to all such books and records and to any of their properties or assets
during regular business hours, in order that the Administrative Agent may make such audits and examinations and make abstracts from such books, accounts and records and may discuss the affairs,
finances and accounts with, and be advised as to the same by, officers and independent accountants, all as the Administrative Agent may deem appropriate for the purpose of verifying the various
reports delivered pursuant to this Agreement or for otherwise ascertaining compliance with this Agreement. 


        SECTION
5.7.    Maintenance of Properties.    


Keep
its properties which are material to its business in good repair, working order and condition consistent with companies of established reputation and comparable size. 


32





 



6.     NEGATIVE COVENANTS  


        For so long as the Commitments shall be in effect or any amount shall remain outstanding under any Note or unpaid under this Agreement, unless the Required
Lenders shall otherwise consent in writing, the Borrower agrees that it will not, nor will it permit any of its Subsidiaries to, directly or indirectly: 


        SECTION
6.1.    Limitation on Material Subsidiary Indebtedness.    


Incur,
assume or suffer to exist any Indebtedness of any Material Subsidiary which principally transacts business in the United States, except: 



        (a)   Indebtedness
in existence on the date hereof, or required to be incurred pursuant to a contractual obligation in existence on the date hereof, which in either case (to
the extent not otherwise permitted by paragraphs (b)-(h) of this Section 6.1), is listed on Schedule 6.1 hereto, but not any extensions or renewals thereof, unless effected on
substantially the same terms or on terms not more adverse to the Lenders; 


        (b)   purchase
money Indebtedness (including Capital Leases) to the extent permitted under Section 6.4(b); 


        (c)   Indebtedness
owing by any Material Subsidiary to the Borrower or any other Subsidiary; 


        (d)   Indebtedness
of any Material Subsidiary of the Borrower issued and outstanding prior to the date on which such Subsidiary became a Subsidiary of the Borrower (other than
Indebtedness issued in connection with, or in anticipation of, such Subsidiary becoming a Subsidiary of the Borrower); provided that immediately prior
and on a Pro Forma Basis after giving effect to, such Person becoming a Subsidiary of the Borrower, no Default or Event of Default shall occur or then be continuing and the aggregate principal amount
of such Indebtedness, when added to the aggregate outstanding principal amount of Indebtedness permitted by paragraphs (e) and (f) below, shall not exceed $125,000,000; 


        (e)   any
renewal, extension or modification of Indebtedness under paragraph (d) above so long (i) as such renewal, extension or modification is effected on
substantially the same terms or on terms which, in the aggregate, are not more adverse to the Lenders and (ii) the principal amount of such Indebtedness is not increased; 


        (f)    other
Indebtedness of any Material Subsidiary in an aggregate principal amount which, when added to the aggregate outstanding principal amount of Indebtedness permitted
by paragraphs (d) and (e) above, does not exceed $125,000,000; 


        (g)   Indebtedness
of Special Purpose Vehicle Subsidiaries incurred to finance investment in lease agreements and vehicles by such Subsidiaries, so long as the lender (and any
other party) in respect of such Indebtedness has recourse, if any, solely to the assets of such Special Purpose Vehicle Subsidiary; 


        (h)   Indebtedness
of any Asset Securitization Subsidiary incurred solely to finance asset securitization transactions as long as (i) such Indebtedness is unsecured or
is secured solely as permitted by Section 6.4(n), and (ii) the lender (and any other party) in respect of such Indebtedness has recourse (other than customary limited recourse based on
misrepresentations or failure of such assets to meet customary eligibility criteria), if any, solely to the assets securitized in the applicable asset securitization transaction and, if such Asset
Securitization Subsidiary is of the type described in clause (i) of the definition of "Asset Securitization Subsidiary", the capital stock of such Asset Securitization Subsidiary; and 


        (i)    Indebtedness
(other than Indebtedness of Asset Securitization Subsidiaries incurred to finance asset securitization transactions permitted by this Agreement) consisting
of the obligation 



33





 




to
repurchase mortgages and related assets or secured by mortgages and related assets in connection with other mortgage warehouse financing arrangements, if the aggregate principal amount of all such
Indebtedness does not exceed $900,000,000. 




        SECTION
6.2.    Limitation on Transactions with Affiliates.    Enter into any transaction, including, without
limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate (other than the Borrower or a wholly-owned Subsidiary of the Borrower) unless such
transaction is (a) otherwise permitted under this Agreement and (b) upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary, as the case may be, than it would
obtain in a comparable arm's length transaction with a Person which is not an Affiliate. 


        SECTION
6.3.    Consolidation, Merger, Sale of Assets.    



        (a)   Neither
the Borrower nor any of its Material Subsidiaries (in one transaction or series of transactions) will wind up, liquidate or dissolve its affairs, or enter into
any transaction of merger or consolidation, except any merger, consolidation, dissolution or liquidation (i) in which the Borrower is the surviving entity or if the Borrower is not a party to
such transaction then a Subsidiary is the surviving entity, (ii) in which the surviving entity becomes a Material Subsidiary of the Borrower immediately upon the effectiveness of such merger,
consolidation, dissolution or liquidation or (iii) in connection with a transaction permitted by Section 6.3(b); provided that immediately
prior to and on a Pro Forma Basis after giving effect to such transaction no Default or Event of Default has occurred or is continuing. 


        (b)   Sell
or otherwise dispose of all or substantially all of the assets of the Borrower and its Subsidiaries, taken as a whole;  provided that it is understood for purposes of clarity that this Section 6.3(b)
 shall not prohibit or limit in any respect transactions in the
ordinary course of business of the Borrower or any of its Subsidiaries (including but not limited to asset securitization transactions or similar transactions entered into in the ordinary course of
business). 




        SECTION
6.4.    Limitations on Liens.    


Suffer
any Lien on the property of the Borrower or any of the Material Subsidiaries which principally transact business in the United States, except: 



        (a)   deposits
under worker's compensation, unemployment insurance and social security laws or to secure statutory obligations or surety or appeal bonds or performance or
other similar bonds in the ordinary course of business, or statutory Liens of landlords, carriers, warehousemen, mechanics and materialmen and other similar Liens, in respect of liabilities which are
not yet due or which are being contested in good faith, Liens for taxes not yet due and payable, and Liens for taxes due and payable, the validity or amount of which is currently being contested in
good faith by appropriate proceedings and as to which foreclosure and other enforcement proceedings shall not have been commenced (unless fully bonded or otherwise effectively stayed); 


        (b)   purchase
money Liens granted to the vendor or Person financing the acquisition of property, plant or equipment if (i) limited to the specific assets acquired and,
in the case of tangible assets, other property which is an improvement to or is acquired for specific use in connection with such acquired property or which is real property being improved by such
acquired property; (ii) the debt secured by such Lien is the unpaid balance of the acquisition cost of the specific assets on which the Lien is granted; and (iii) such transaction does
not otherwise violate this Agreement; 


        (c)   Liens
upon real and/or personal property, which property was acquired after the Original Closing Date (by purchase, construction or otherwise) by the Borrower or any of
its Material Subsidiaries, each of which Liens existed on such property before the time of its acquisition and was not created in anticipation thereof;  provided that no such Lien shall extend to or
cover any 



34





 




property
of the Borrower or such Material Subsidiary other than the respective property so acquired and improvements thereon; 



        (d)   Liens
arising out of attachments, judgments or awards as to which an appeal or other appropriate proceedings for contest or review are promptly commenced (and as to
which foreclosure and other enforcement proceedings (i) shall not have been commenced (unless fully bonded or otherwise effectively stayed) or (ii) in any event shall be promptly fully
bonded or otherwise effectively stayed); 


        (e)   Liens
created under any Fundamental Document as contemplated by this Agreement; 


        (f)    Liens
securing Indebtedness of any Material Subsidiary to the Borrower; 



        (g)   Liens
covering only the property or assets of any Special Purpose Vehicle Subsidiary and securing only such Indebtedness of such Special Purpose Vehicle Subsidiary as is
permitted under Section 6.1(g) hereof; 


        (h)   mortgage
liens existing on homes acquired by the Borrower or any of its Material Subsidiaries in the ordinary course of their relocation management business; 


        (i)    other
Liens incidental to the conduct of its business or the ownership of its property and other assets, which do not secure any Indebtedness and did not otherwise arise
in connection with the borrowing of money or the obtaining of advances or credit and which do not, in the aggregate, materially detract from the value of its property or other assets or materially
impair the use thereof in the operation of its business; 


        (j)    to
the extent not otherwise permitted by this Section 6.4, Liens existing on the Closing Date listed on Schedule 6.4 hereto and any extensions or renewals
thereof; 


        (k)   Liens
securing indebtedness in respect of one or more asset securitization transactions, which indebtedness is not reported on a consolidated balance sheet of the
Borrower and its Subsidiaries, covering only the assets securitized in the asset securitization transaction financed by such indebtedness and the capital stock of any special purpose vehicle the sole
purpose of which is to effectuate such asset securitization transaction; 


        (l)    other
Liens securing obligations having an aggregate principal amount not to exceed $100,000,000; 


        (m)  Liens
securing Indebtedness and related obligations of an Asset Securitization Subsidiary in respect of one or more asset securitization transactions, which Indebtedness
is reported on a consolidated balance sheet of the Borrower and its Subsidiaries, covering only the assets securitized in the asset securitization transaction financed by such Indebtedness and, if an
Asset Securitization Subsidiary is of the type described in clause (i) of the definition of "Asset Securitization Subsidiary", the capital stock of such Asset Securitization Subsidiary; and 


        (n)   Liens
on mortgages and related assets securing obligations to the extent such obligations are permitted by Section 6.1(i). 




        SECTION
6.5.    Sale and Leaseback.    


Enter
into any arrangement with any Person or Persons, whereby in contemporaneous transactions the Borrower or any of its Subsidiaries sells essentially all of its right, title and interest in a
material asset and the Borrower or any of its Subsidiaries acquires or leases back the right to use such property except that the Borrower or any of its Subsidiaries may enter into
sale-leaseback transactions relating to assets not in excess of $100,000,000 in the aggregate on a cumulative basis, and except (a) the LEAF Trust Transaction; and
(b) without limiting the foregoing clause (a), any sale-leaseback transaction 


35





 



entered
into in connection with an asset securitization transaction the indebtedness or Indebtedness relating to which is permitted to be secured pursuant to Section 6.4(l) or 6.4(n). 



        SECTION
6.6.    Consolidated Net Worth.    


Permit
Consolidated Net Worth on the last day of any fiscal quarter to be less than the sum of (i) $1,300,000,000 plus (ii) 25% of
Consolidated Net Income, if positive, for each fiscal quarter after December 31, 2002. 


        SECTION
6.7.    Ratio of Indebtedness To Consolidated Net Worth.    



Permit,
at any time, Indebtedness of the Borrower and its Subsidiaries less Cash Equivalents (owned by the Borrower or any of its Subsidiaries and free of Liens (other than Liens securing
Indebtedness)) to exceed eight (8.0) times Consolidated Net Worth. 


        SECTION
6.8.    Accounting Practices.    


Establish
a fiscal year ending on other than December 31, or modify or change accounting treatments or reporting practices except as otherwise required or permitted by GAAP. 


        SECTION
6.9.    Restrictions Affecting Subsidiaries.    



Enter
into, or suffer to exist, any Contractual Obligation with any Person, which prohibits or limits the ability of any Material Subsidiary (other than Special Purpose Vehicle Subsidiaries and Asset
Securitization Subsidiaries) to (a) pay dividends or make other distributions or pay any Indebtedness owed to the Borrower or any other Subsidiary, (b) make loans or advances to the
Borrower or any
other Subsidiary or (c) transfer any of its properties or assets to the Borrower or any other Subsidiary, except in each case any Contractual Obligation of Avis Fleet or any of its Subsidiaries
(other than Asset Securitization Subsidiaries or Special Purpose Vehicle Subsidiaries) existing as of the date of the Avis Fleet Transaction and any renewals, extensions or modifications thereof so
long as such renewals, extensions or modifications are effected on substantially the same terms or on terms which, in the aggregate, are not more adverse to the Lenders in any material respect. 


7.     EVENTS OF DEFAULT  


In
the case of the happening and during the continuance of any of the following events (herein called "Events of Default"): 



        (a)   any
representation or warranty made or deemed made by the Borrower in this Agreement or any other Fundamental Document or in connection with this Agreement or with the
execution and delivery of the Notes or the Borrowings hereunder, or any statement or representation made in any report, financial statement, certificate or other document furnished by or on behalf of
the Borrower or any of its Subsidiaries to the Administrative Agent or any Lender under or in connection with this Agreement, shall prove to have been false or misleading in any material respect when
made or delivered; 


        (b)   default
shall be made in the payment of any principal of or interest on any Loan or of any fees or other amounts payable by the Borrower hereunder, when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise, and in the case of payments of interest, such default
shall continue unremedied for five Business Days, and in the case of payments other than of any principal amount of or interest on any Loan, such default shall continue unremedied for five Business
Days after receipt by the Borrower of an invoice therefor; 



36





 




        (c)   default
shall be made in the due observance or performance of any covenant, condition or agreement contained in Section 5.1(c) (with respect to notice of Default
or Events of Default) or Article 6; 


        (d)   default
shall be made by the Borrower in the due observance or performance of any other covenant, condition or agreement to be observed or performed pursuant to the
terms of this Agreement or any
other Fundamental Document and such default shall continue unremedied for thirty (30) days after the Borrower obtains knowledge of such occurrence; 


        (e)   (i) default
in payment shall be made with respect to any Indebtedness or Interest Rate Protection Agreements of the Borrower or any of its Subsidiaries (other
than Securitization Indebtedness) where the amount or amounts of such Indebtedness exceeds $25,000,000 (or its equivalent thereof in any other currency) in the aggregate; or (ii) default in
payment or performance shall be made with respect to any Indebtedness or Interest Rate Protection Agreements of the Borrower or any of its Subsidiaries (other than Securitization Indebtedness) where
the amount or amounts of such Indebtedness or Interest Rate Protection Agreements exceeds $25,000,000 (or its equivalent thereof in any other currency) in the aggregate, if the effect of such default
is to result in the acceleration of the maturity of such Indebtedness or Interest Rate Protection Agreement; or (iii) any other circumstance shall arise (other than the mere passage of time) by
reason of which the Borrower or any Subsidiary of the Borrower is required to redeem or repurchase, or offer to holders the opportunity to have redeemed or repurchased, any such Indebtedness or
Interest Rate Protection Agreement (other than Securitization Indebtedness) where the amount or amounts of such Indebtedness or Interest Rate Protection Agreement exceeds $25,000,000 (or its
equivalent thereof in any other currency) in the aggregate; provided that clause (iii) shall not apply to secured Indebtedness or Interest Rate
Protection Agreement that becomes due as a result of a voluntary sale of the property or assets securing such Indebtedness or Interest Rate Protection Agreement and  provided, further, that clauses (ii) and (iii) shall not apply to any Indebtedness or
Interest Rate Protection Agreement of any Subsidiary issued and outstanding prior to the date such Subsidiary became a Subsidiary of the Borrower (other than Indebtedness or Interest Rate Protection
Agreement issued in connection with, or in anticipation of, such Subsidiary becoming a Subsidiary of the Borrower) if such default or circumstance arises solely as a result of a "change of control"
provision applicable to such Indebtedness or Interest Rate Protection Agreement which becomes operative as a result of the acquisition of such Subsidiary by the Borrower or any of its Subsidiaries; 


        (f)    the
Borrower or any of its Material Subsidiaries shall generally not pay its debts as they become due or shall admit in writing its inability to pay its debts, or shall
make a general assignment for the benefit of creditors; or the Borrower or any of its Material Subsidiaries shall commence any case, proceeding or other action seeking to have an order for relief
entered on its behalf as debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any
law relating to bankruptcy, insolvency, reorganization or relief of debtors or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part
of its property or shall file an answer or other pleading in any such case, proceeding or other action admitting the material allegations of any petition, complaint or similar pleading filed against
it or consenting to the relief sought therein; or the Borrower or any Material Subsidiary thereof shall take any action to authorize any of the foregoing; 


        (g)   any
involuntary case, proceeding or other action against the Borrower or any of its Material Subsidiaries shall be commenced seeking to have an order for relief entered
against it as debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any law relating
to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, 



37





 




trustee,
custodian or other similar official for it or for all or any substantial part of its property, and such case, proceeding or other action (i) results in the entry of any order for
relief against it or (ii) shall remain undismissed for a period of sixty (60) days; 


        (h)   the
occurrence of a Change in Control; 


        (i)    final
judgment(s) for the payment of money in excess of $25,000,000 (or its equivalent thereof in any other currency) shall be rendered against the Borrower or any of
its Subsidiaries which within thirty (30) days from the entry of such judgment shall not have been discharged or stayed pending appeal or which shall not have been discharged within thirty
(30) days from the entry of a final order of affirmance on appeal; or 



        (j)    a
Reportable Event relating to a failure to meet minimum funding standards or an inability to pay benefits when due shall have occurred with respect to any Plan under
the control of the Borrower or any of its Subsidiaries and shall not have been remedied within 45 days after the occurrence of such Reportable Event, if the occurrence thereof could reasonably
be expected to have a Material Adverse Effect; 




then,
in every such event and at any time thereafter during the continuance of such event, the Administrative Agent may or, if directed by the Required Lenders, shall take either or both of the
following actions, at the same or different times: terminate forthwith the Commitments and/or declare the principal of and the interest on the Loans and the Notes and all other amounts payable
hereunder or thereunder to be forthwith due and payable, whereupon the same shall become and be forthwith due and payable, without presentment, demand, protest, notice of acceleration, notice of
intent to accelerate or other notice of any kind, all of which are hereby expressly waived, anything in this Agreement or in the Notes to the contrary notwithstanding;  provided that, in the case of a
payment of principal default pursuant to paragraph (b), the Administrative Agent, unless it is directed to do so
by the Required Lenders, will not take either or both of such actions for three Business Days. If an Event of Default specified in paragraph (f) or (g) above shall have occurred, the
principal of and interest on the Loans and the Notes and all other amounts payable hereunder or thereunder shall thereupon and concurrently become due and payable without presentment, demand, protest,
notice of acceleration, notice of intent to accelerate or other notice of any kind, all of which are hereby expressly waived, anything in this Agreement or the Notes to the contrary notwithstanding
and the Commitments of the Lenders shall thereupon forthwith terminate. 


8.     THE ADMINISTRATIVE AGENT  


        SECTION
8.1.    Administration by Administrative Agent.    


The
general administration of the Fundamental Documents and any other documents contemplated by this Agreement shall be by the Administrative Agent or their designees as provided for herein. Each of
the Lenders hereby irrevocably authorizes the Administrative Agent, at its discretion, to take or refrain from taking such actions as agent on its behalf and to exercise or refrain from exercising
such powers under the Fundamental Documents, the Notes and any other documents contemplated by this Agreement as are delegated by the terms hereof or thereof, as appropriate, together with all powers
reasonably incidental thereto. The Administrative Agent shall have no duties or responsibilities except as set forth in the Fundamental Documents. Any Lender which is a co-agent or lead
manager (as indicated on Schedule 1.1A hereto) for the credit facility hereunder shall not have any duties or responsibilities except as a Lender hereunder. 


        SECTION
8.2.    Advances and Payments.    



        (a)   On
the date of each Loan, the Administrative Agent shall be authorized (but not obligated) to advance, for the account of each of the applicable Lenders, the amount of
the Loan to be made by it in accordance with this Agreement. Each of the Lenders hereby authorizes and requests the 


38





 



Administrative
Agent to advance for its account, pursuant to the terms hereof, the amount of the Loan to be made by it, unless with respect to any Lender, such Lender has theretofore specifically
notified the Administrative Agent that such Lender does not intend to fund that particular Loan. Each of the Lenders agrees forthwith to reimburse the Administrative Agent in immediately available
funds for the amount so advanced on its behalf by the Administrative Agent pursuant to the immediately preceding sentence. If any such reimbursement is not made in immediately available funds on the
same day on which the Administrative Agent shall have made any such amount available on behalf of any Lender in accordance with this Section 8.2, such Lender shall pay interest to the
Administrative Agent at a rate per annum equal to the Administrative Agent's cost of obtaining overnight funds in the New York Federal Funds Market. Notwithstanding the preceding sentence, if such
reimbursement is not made by the second Business Day following the day on which the Administrative Agent shall have made any such amount available on behalf of any Lender or such Lender has indicated
that it does not intend to reimburse the Administrative Agent, the Borrower shall immediately pay such unreimbursed advance amount (plus any accrued, but unpaid interest at the rate per annum equal to
the interest rate applicable to such Loan) to the Administrative Agent. 


        (b)   Any
amounts received by the Administrative Agent in connection with this Agreement or the Loans the application of which is not otherwise provided for shall be applied,
in accordance with each of the Lenders' pro rata interest therein, first, to pay accrued but unpaid Facility Fees and Utilization Fees,  second, to pay
accrued but unpaid interest on the Loans, third, to pay the principal balance outstanding
on the Loans and fourth, to pay other amounts payable to the Administrative Agent and/or the Lenders. All amounts to be paid to any of the Lenders by
the Administrative Agent shall be credited to the applicable Lenders, after collection by the Administrative Agent, in immediately available funds either by wire transfer or deposit in such Lender's
correspondent account with the Administrative Agent, or as such Lender and the Administrative Agent shall from time to time agree. 


        SECTION
8.3.    Sharing of Setoffs and Cash Collateral.    


Each
of the Lenders agrees that if it shall, through the operation of Section 2.19 or the exercise of a right of banker's lien, setoff or counterclaim against the Borrower, including, but not
limited to, a secured claim under Section 506 of Title 11 of the United States Code or other security or interest arising from, or in lieu of, such secured claim and received by such Lender
under any applicable bankruptcy, insolvency or other similar law, or otherwise (other than pursuant to Section 2.15(f)), obtain payment in respect of its Loans as a result of which the unpaid
portion of its Loans is proportionately less than the unpaid portion of any of the other Lenders (a) it shall promptly purchase at par (and shall be deemed to have thereupon purchased) from
such other Lenders a participation in the Loans of such other Lenders, so that the aggregate unpaid principal amount of each of the Lenders' Loans and its participation in Loans of the other Lenders
shall be in the same proportion to the aggregate unpaid principal amount of all Loans then outstanding as the principal amount of its Loans prior to the obtaining of such payment was to the principal
amount of all Loans outstanding prior to the obtaining of such payment and (b) such other adjustments shall be made from time to time as shall be equitable to ensure that the Lenders share such
payment pro rata. 


        SECTION
8.4.    Notice to the Lenders.    


Upon
receipt by the Administrative Agent from the Borrower of any communication calling for an action on the part of the Lenders, or upon notice to the Administrative Agent of any Event of Default,
the Administrative Agent will in turn immediately inform the other Lenders in writing (which shall include telegraphic communications) of the nature of such communication or of the Event of Default,
as the case may be. 


39









   
        SECTION 8.5.    Liability of the Administrative Agent.    


        (a)   The
Administrative Agent, when acting on behalf of the Lenders may execute any of its duties under this Agreement by or through its officers, agents, or employees and
neither the Administrative Agent nor its respective directors, officers, agents, or employees shall be liable to the Lenders or any of them for any action taken or omitted to be taken in good faith,
or be responsible to the Lenders or to any of them for the consequences of any oversight or error of judgment, or for any loss, unless the same shall happen through its gross negligence or willful
misconduct. Neither the Administrative Agent nor its respective directors, officers, agents, and employees shall in any event be liable to the Lenders or to any of them for any action taken or omitted
to be taken by it pursuant to instructions received by it from the Required Lenders or in reliance upon the advice of counsel selected by it. Without limiting the foregoing, neither the Administrative
Agent nor any of its respective directors, officers, employees, or agents shall be responsible to any of the Lenders for the due execution (other than its own), validity, genuineness, effectiveness,
sufficiency, or enforceability of, or for any statement, warranty, or representation made by any other Person in, or for the perfection of any security interest contemplated by, this Agreement or any
related agreement, document or order or shall be required to ascertain or to make any inquiry concerning the performance or observance by the Borrower of any of the terms, conditions, covenants, or
agreements of this Agreement or any related agreement or document. 


        (b)   Neither
the Administrative Agent nor any of its respective directors, officers, employees, or agents shall have any responsibility to the Borrower on account of the
failure or delay in performance or breach by any of the Lenders or the Borrower of any of their respective obligations under this Agreement or the Notes or any related agreement or document or in
connection herewith or therewith. 


        (c)   The
Administrative Agent in such capacities hereunder, shall be entitled to rely on any communication, instrument, or document reasonably believed by it to be genuine or
correct and to have been signed or sent by a Person or Persons believed by it to be the proper Person or Persons, and it shall be entitled to rely on advice of legal counsel, independent public
accountants, and other professional advisers and experts selected by it. 


        SECTION
8.6.    Reimbursement and Indemnification.    



Each
of the Lenders severally and not jointly agrees (i) to reimburse the Administrative Agent and the Lead Arranger, in the amount of its proportionate share, for any reasonable expenses and
fees incurred for the benefit of the Lenders under the Fundamental Documents, including, without limitation, reasonable counsel fees and compensation of agents and employees paid for services rendered
on
behalf of the Lenders, and any other reasonable expense incurred in connection with the administration or enforcement thereof not reimbursed by the Borrower or one of its Subsidiaries; and
(ii) to indemnify and hold harmless the Administrative Agent and the Lead Arranger and any of their directors, officers, employees, or agents, on demand, in the amount of its proportionate
share, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against it or any of them in any way relating to or arising out of the Fundamental Documents or any action taken or omitted by it or any of them under the
Fundamental Documents to the extent not reimbursed by the Borrower or one of its Subsidiaries (except such as shall result from the gross negligence or willful misconduct of the Person seeking
indemnification). 


        SECTION
8.7.    Rights of Administrative Agent.    


It
is understood and agreed that JPMorgan Chase Bank shall have the same rights and powers hereunder (including the right to give such instructions) as the other Lenders and may exercise such rights
and powers, as well as its rights and powers under other agreements and instruments to which it is or may be party, and engage in other transactions with the Borrower as though it were not an
Administrative Agent on behalf of the Lenders under this Agreement. 


40





 



        SECTION
8.8.    Independent Investigation by Lenders.    



Each
of the Lenders acknowledges that it has decided to enter into this Agreement and to make the Loans hereunder based on its own analysis of the transactions contemplated hereby and of the
creditworthiness of the Borrower and agrees that the Administrative Agent shall not bear responsibility therefor. 


        SECTION
8.9.    Notice of Transfer.    


The
Administrative Agent may deem and treat any Lender which is a party to this Agreement as the owners of such Lender's respective portions of the Loans for all purposes, unless and until a written
notice of the assignment or transfer thereof executed by any such Lender shall have been received by the Administrative Agent and become effective pursuant to Section 9.3. 



        SECTION
8.10.    Successor Administrative Agent.    


The
Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a
successor Administrative Agent from among the Lenders, with the consent of the Borrower, which will not be unreasonably withheld. If no successor Administrative Agent shall have been so appointed by
the Required Lenders and shall have accepted such appointment, within 30 days after the retiring Administrative Agent's giving of notice of resignation, the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent, which with the consent of the Borrower, which will not be unreasonably withheld, shall be a commercial bank organized or licensed
under the laws of the United States or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement. After any retiring Administrative Agent's resignation hereunder as Administrative
Agent, the provisions of this Article 8 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. 


9.     MISCELLANEOUS  


        SECTION
9.1.    Notices.    


        (a)   Notices
and other communications provided for herein shall be in writing and shall be delivered or mailed (or in the case of telegraphic communication, if by telegram,
delivered to the telegraph company and, if by telex, telecopy, graphic scanning or other telegraphic communications equipment of the sending party hereto, delivered by such equipment) addressed, if to
the Administrative Agent or JPMorgan Chase Bank, to it at 1111 Fannin, 10th floor, Houston, Texas 77002 (Telephone: (713) 750-2885; Telecopy:
(713) 750-2932), Attention: Leah Hughes, with a copy to Dakisha Allen, at 1111 Fannin, 10th floor, Houston, Texas 77002 (Telephone: (713) 750-3541;
Telecopy: (713) 750-2932), if to the Borrower, to it at 1 Campus Drive, Parsippany, New Jersey 07054-0642, Attention: Assistant Treasurer, with a copy to the General
Counsel, or if to a Lender, to it at its address set forth on Schedule 1.1A (or in its Assignment and Acceptance or other agreement pursuant to which it became a Lender hereunder), or such
other address as such party may from time to time designate by giving written notice to the other parties hereunder. All notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the fifth Business Day after the date when sent by registered or certified mail, postage prepaid, return receipt requested, if by
mail, or when delivered to the telegraph company, charges prepaid, if by telegram, or when receipt is acknowledged, if by any telecopier or telegraphic communications equipment of the sender, in each
case addressed to such party as provided in this Section 9.1 or in accordance with the latest unrevoked written direction from such party. Information 


41





 



required
to be delivered hereunder may also be delivered by electronic communication pursuant to procedures approved by the Borrower and the Administrative Agent. 


        (b)   Notices
and other communication to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures
approved by it; provided that approval of such procedures may be limited to particular notices or communications. 


        SECTION
9.2.    Survival of Agreement, Representations and Warranties, etc.    


All
warranties, representations and covenants made by the Borrower herein or in any certificate or other instrument delivered by it or on its behalf in connection with this Agreement shall be
considered to have been relied upon by the Administrative Agent and the Lenders and shall survive the making of the Loans herein contemplated and the issuance and delivery to the Administrative Agent
of the Notes regardless of any investigation made by the Administrative Agent or the Lenders or on their behalf and shall continue in full force and effect so long as any amount due or to become due
hereunder is outstanding and unpaid and so long as the Commitments have not been terminated. All statements in any such certificate or other instrument shall constitute representations and warranties
by the Borrower hereunder. 


        SECTION
9.3.    Successors and Assigns; Syndications; Loan Sales; Participations.    



        (a)   Whenever
in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party
(provided that the Borrower may not assign its respective rights hereunder without the prior written consent of all the Lenders), and all covenants,
promises and agreements by, or on behalf of, the Borrower which are contained in this Agreement shall inure to the benefit of the successors and assigns of the Lenders. 


        (b)   Each
of the Lenders may (but only with the prior written consent of the Administrative Agent and the Borrower, which consents shall not be unreasonably withheld or
delayed) assign to one or more banks or other financial institutions either (i) all or a portion of its interests, rights and obligations under this Agreement (including, without limitation,
all or a portion of its Commitment and the same portion of the Loans at the time owing to it and the Notes held by it) (a "Ratable Assignment") or
(ii) all or a portion of its rights and obligations under and in respect of (A) its Commitment under this Agreement and the same portion of the Loans (other than Competitive Loans) at
the time owing to it or (B) the Competitive Loans at the time owing to it (including, without limitation, in the case of any such type of Loan, the same portion of the associated Note) (a
"Non-Ratable Assignment"); provided that (1) each Non-Ratable Assignment
shall be of a constant, and not a varying, percentage of all of the assigning Lender's rights and obligations in respect of the Loans and the Commitment (if applicable) which are the subject of such
assignment, (2) each Ratable Assignment shall be of a constant, and not a varying, percentage of the assigning Lender's rights and obligations under this Agreement, (3) the amount of the
Commitment or Competitive Loans, as the case may be, of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Lender) shall be in a minimum Dollar Equivalent Amount of $5,000,000 unless such assignment is an assignment of all of the assigning Lender's rights and obligations under this
Agreement or unless otherwise agreed by the Borrower and the Administrative Agent and (4) the parties to each such assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register (as defined below), an Assignment and Acceptance, together with any Note or Notes subject to such assignment (if required hereunder) and a processing and
recordation fee of $3,500. Upon such execution, delivery, acceptance and recording, and from and after the effective date specified in each Assignment and Acceptance, which effective date shall be not
earlier than five Business Days after the date of 


42





 



acceptance
and recording by the Administrative Agent, (x) the assignee thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (y) the assigning Lender thereunder shall, to the extent provided in such Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining portion of the assigning Lender's rights and obligations under this Agreement, such assigning Lender shall cease to be a
party hereto, but shall continue to be entitled to the indemnity and expense reimbursement provisions for the period prior to such Assignment and Acceptance). 


        (c)   Notwithstanding
the other provisions of this Section 9.3, each Lender may at any time make an assignment of all or any part of its interests, rights and
obligations under this Agreement to (i) any Affiliate of such Lender or (ii) any other Lender hereunder. 



        (d)   By
executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the assignee thereunder confirm to and agree with each other and the other
parties hereto as follows: (i) other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned thereby free and clear of any adverse claim,
the assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in, or in connection with, this Agreement and
any other Fundamental Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Fundamental Documents or any other instrument or document furnished
pursuant hereto or thereto; (ii) such Lender assignor makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the Fundamental Documents; (iii) such assignee confirms that it has received a copy of this Agreement, together with
copies of the most recent financial statements delivered pursuant to Sections 5.1(a) and 5.1(b) (or if none of such financial statements shall have then been delivered, then copies of the financial
statements referred to in Section 3.4) and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the assigning Lender, the Administrative Agent, or any other Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee appoints and authorizes the
Administrative Agent, to take such action as agent on its behalf and to exercise such powers under the Fundamental Documents as are delegated to the Administrative Agent by the terms thereof, together
with such powers as are reasonably incidental thereto; and (vi) such assignee agrees that it will be bound by the provisions of this Agreement and will perform in accordance with its terms all
of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 


        (e)   The
Administrative Agent, on behalf of the Borrower, shall maintain at its address at which notices are to be given to it pursuant to Section 9.1, a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Loans owing to, each Lender
from time to time (the "Register"). The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders may (and, in the case of any Loan or other obligation hereunder not evidenced by a Note, shall) treat each Person whose name is recorded in the Register as the
owner of a Loan or other obligation hereunder as the owner thereof for all purposes of this Agreement and the other Fundamental Documents, notwithstanding any notice to the contrary. Any assignment of
any Loan or other obligation hereunder not evidenced by a Note shall be effective only upon appropriate entries with respect thereto being made in the Register. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. 


        (f)    Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee, any Notes subject to such assignment (if required hereunder) and the
processing and 


43





 



recordation
fee, the Administrative Agent (subject to the right, if any, of the Borrower to require its consent thereto) shall, if such Assignment and Acceptance has been completed and is in the form
of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt written notice thereof
to the Borrower. If a portion of its Commitment has been assigned by an assigning Lender, then such Lender shall deliver its Note in respect of such Commitment, if any, at the same time it delivers
the applicable Assignment and Acceptance to the Administrative Agent. If only Competitive Loans have been assigned by the assigning Lender, such Lender shall not be required to deliver its Competitive
Note to the Administrative Agent, unless such Lender no longer holds a Commitment under this Agreement, in which event such assigning Lender shall deliver its Competitive Note, if any, at the same
time it delivers the applicable Assignment and Acceptance to the Administrative Agent. Within five Business Days after receipt of the notice, the Borrower, at its own expense, shall execute and
deliver to the applicable Lenders at their request, either (A) a new Note in respect of the assigned Commitment to the order of such assignee in an amount equal to the Commitment assumed by it
pursuant to such Assignment and Acceptance and a Competitive Note to the order of such assignee in an amount equal to the Total Commitment hereunder, and a new Note in respect of the assigned
Commitment to the order of the assigning Lender in an amount equal to the Commitment retained by it hereunder, or (B) if Competitive Loans only have been assigned and the assigning Lender holds
a Commitment under this Agreement, then a new Competitive Note to the order of the assignee Lender in an amount equal to the outstanding principal amount of the Competitive Loan(s) purchased by it
pursuant to the Assignment and Acceptance, or (C) if Competitive Loans only have been assigned and the assigning Lender does not hold a Commitment under this Agreement, a new Competitive Note
to the order of such assignee in an amount equal to the outstanding principal amount of the Competitive Loans(s) purchased by it pursuant to such Assignment and Acceptance and, a new Competitive Note
to the order of the assigning Lender in an amount equal to the outstanding principal amount of the Competitive Loans retained by it hereunder. Any new Notes shall be in an aggregate principal amount
equal to the aggregate principal amount of the Commitments of the respective Lenders. All new Notes shall be dated the date hereof and shall otherwise be in substantially the forms of Exhibits
A-1, and A-2 hereto, as the case may be. 


        (g)   Each
of the Lenders may without the consent of the Borrower or the Administrative Agent sell participations to one or more banks or other financial institutions (a
"Participant") in all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment
and the Loans owing to it and the Note or Notes held by it); provided that (i) any such Lender's obligations under this Agreement shall remain
unchanged, (ii) such participant shall not be granted any voting rights under this Agreement, except with respect to matters requiring the consent of each of the Lenders hereunder,
(iii) any such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iv) the participating banks or other entities shall be
entitled to the cost protection provisions contained in Sections 2.14, 2.15 and 2.17 hereof but a participant shall not be entitled to receive pursuant to such provisions an amount larger than its
share of the amount to which the Lender granting such participation would have been entitled to receive, and (v) the Borrower, the Administrative Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. 



        (h)   The
Lenders may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.3, disclose to the assignee
or participant or proposed assignee or participant, any information relating to the Borrower furnished to the Administrative Agent or the Lenders by or on behalf of the Borrower. 


        (i)    Each
Lender hereby represents that it is a commercial lender or financial institution which makes loans in the ordinary course of its business and that it will make the
Loans hereunder for its own account in the ordinary course of such business; provided that, subject to preceding clauses 


44





 



(a) through
(h), the disposition of the Notes or other evidence of Indebtedness held by that Lender shall at all times be within its exclusive control. 


        (j)    The
Borrower consents that any Lender may at any time and from time to time pledge, or otherwise grant a security interest in, any Loan or any Note evidencing such Loan
(or any part thereof), including any such pledge or grant to any Federal Reserve Bank, and this Section shall not apply to any such pledge or grant;  provided that no such pledge or grant shall release a
Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a
party hereto. 


        SECTION
9.4.    Expenses; Documentary Taxes.    


Whether
or not the transactions hereby contemplated shall be consummated, the Borrower agrees to pay all reasonable out-of-pocket expenses incurred by the Administrative Agent
and the Lead Arranger in connection with the syndication, preparation, execution, delivery and administration of this Agreement, the Notes, and the making of the Loans including but not limited to the
reasonable fees and disbursements of Simpson Thacher & Bartlett, counsel to the Administrative Agent, as well as all reasonable out-of-pocket expenses incurred by the
Lenders and the Administrative Agent in connection with any restructuring or workout of this Agreement, or the Notes or in connection with the enforcement or protection of the rights of the Lenders
and the Administrative Agent in connection with this Agreement or the Notes or any other Fundamental Document, and with respect to any action which may be instituted by any Person against any Lender
or the Administrative Agent in respect of the foregoing, or as a result of any transaction, action or nonaction arising from the foregoing, including but not limited to the fees and disbursements of
any counsel for the Lenders. Such payments shall be made on the date of execution of this Agreement and thereafter promptly on demand. The Borrower agrees that it shall indemnify the Administrative
Agent and the Lenders from, and hold them harmless against, any documentary taxes, assessments or charges made by any Governmental Authority by reason of the execution and delivery of this Agreement
or the Notes or any other Fundamental Document. The obligations of the Borrower under this Section shall survive the termination of this Agreement and/or the payment of the Loans for two years. 


        SECTION
9.5.    Indemnity.    


Further,
by the execution hereof, the Borrower agrees to indemnify and hold harmless the Administrative Agent, the Lead Arranger and the Lenders and their respective directors, officers, employees and
agents (each, an "Indemnified Party") from and against any and all expenses (including reasonable fees and disbursements of counsel), losses, claims,
damages and liabilities arising out of any claim, litigation, investigation or proceeding (regardless of whether any such Indemnified Party is a party thereto) in any way relating to the transactions
contemplated hereby, but excluding therefrom all expenses, losses, claims, damages, and liabilities arising out of or resulting from the gross negligence or willful misconduct of the Indemnified Party
seeking indemnification, provided that the Borrower shall not be liable for the fees and expenses of more than one separate firm for all such
Indemnified Parties in connection with any one such action or any separate but substantially similar or related actions in the same jurisdiction, nor shall the Borrower be liable for any settlement of
any proceeding effected without the Borrower's written consent, and provided, further, that this
Section 9.5 shall not be construed to expand the scope of the reimbursement obligations specified in Section 9.4. The obligations of the Borrower under this Section 9.5 shall
survive the termination of this Agreement and/or payment of the Loans. 


        SECTION
9.6.    CHOICE OF LAW.    


THIS
AGREEMENT AND THE NOTES HAVE BEEN EXECUTED AND DELIVERED IN THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF SUCH STATE APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE AND, IN THE CASE OF 


45





 



PROVISIONS
RELATING TO INTEREST RATES, ANY APPLICABLE LAWS OF THE UNITED STATES. 


        SECTION
9.7.    No Waiver.    


No
failure on the part of the Administrative Agent or any Lender to exercise, and no delay in exercising, any right, power or remedy hereunder or under the Notes shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by law. 


        SECTION
9.8.    Extension of Maturity.    


Except
as otherwise specifically provided in Article 7, should any payment of principal of or interest on the Notes or any other amount due hereunder become due and payable on a day other than
a Business Day, the maturity thereof shall be extended to the next succeeding Business Day and, in the case of principal, interest shall be payable thereon at the rate herein specified during such
extension. 


        SECTION
9.9.    Amendments, etc..    


No
modification, amendment or waiver of any provision of this Agreement or any other Fundamental Document, and no consent to any departure by the Borrower herefrom or therefrom, shall in any event be
effective unless the same shall be in writing and signed or consented to in writing by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for
the purpose for which given; provided that no such modification or amendment shall without the written consent of each Lender affected thereby
(x) increase or extend the expiration date of the Commitment of a Lender or postpone or waive any scheduled reduction in the Commitments, (y) alter the stated maturity or principal
amount of any installment of any Loan, or decrease the rate of interest payable thereon, or the rate at which the Facility Fees or Utilization Fees are paid or (z) waive a default under
Section 7(b) with respect to a scheduled principal installment of any Loan or scheduled payment of interest or fees; provided,  further, that no such
modification or amendment shall without the written consent of all of the Lenders (i) amend or modify any provision of this
Agreement which provides for the unanimous consent or approval of the Lenders or (ii) amend this Section 9.9 or the definition of Required Lenders or Supermajority Lenders. No such
amendment or modification may adversely affect the rights and obligations of the Administrative Agent hereunder without its prior written consent. No notice to or demand on the Borrower shall entitle
the Borrower to any other or further notice or demand in the same, similar or other circumstances. Each holder of a Note shall be bound by any amendment, modification, waiver or consent authorized as
provided herein, whether or not a Note shall have been marked to indicate such amendment, modification, waiver or consent and any consent by any holder of a Note shall bind any Person subsequently
acquiring a Note, whether or not a Note is so marked. 


        SECTION
9.10.    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. 


        SECTION
9.11.    SERVICE OF PROCESS; WAIVER OF JURY TRIAL.    


        (a)   THE
BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE STATE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY AND TO THE JURISDICTION OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF BROUGHT
BY THE ADMINISTRATIVE AGENT OR A 


46





 



LENDER.
THE BORROWER TO THE EXTENT PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH COURTS, ANY CLAIM THAT IT IS NOT SUBJECT PERSONALLY TO THE JURISDICTION OF THE ABOVE-NAMED COURTS, THAT ITS PROPERTY IS EXEMPT OR IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THIS AGREEMENT OR THE SUBJECT MATTER HEREOF MAY NOT BE ENFORCED IN OR BY
SUCH COURT, AND (B) HEREBY WAIVES THE RIGHT TO ASSERT IN ANY SUCH ACTION, SUIT OR PROCEEDING ANY OFFSETS OR COUNTERCLAIMS EXCEPT COUNTERCLAIMS THAT ARE COMPULSORY OR OTHERWISE ARISE FROM THE
SAME SUBJECT MATTER. THE BORROWER HEREBY CONSENTS TO SERVICE OF PROCESS BY MAIL AT ITS ADDRESS TO WHICH NOTICES ARE TO BE GIVEN PURSUANT TO SECTION 9.1. THE BORROWER AGREES THAT ITS SUBMISSION TO
JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS MADE FOR THE EXPRESS BENEFIT OF THE ADMINISTRATIVE AGENT AND THE LENDERS. FINAL JUDGMENT AGAINST THE BORROWER IN ANY SUCH ACTION, SUIT OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION (A) BY SUIT, ACTION OR PROCEEDING ON THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF
THE FACT AND THE AMOUNT OF INDEBTEDNESS OR LIABILITY OF THE SUBMITTING PARTY THEREIN DESCRIBED OR (B) IN ANY OTHER MANNER PROVIDED BY, OR PURSUANT TO, THE LAWS OF SUCH OTHER JURISDICTION,  PROVIDED
THAT THE ADMINISTRATIVE AGENT OR A LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL PROCEEDINGS AGAINST THE BORROWER OR ANY OF
ITS ASSETS IN ANY STATE OR FEDERAL COURT OF THE UNITED STATES OR OF ANY COUNTRY OR PLACE WHERE THE BORROWER OR SUCH ASSETS MAY BE FOUND. 


        (b)   TO
THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING OR WHETHER IN CONTRACT OR TORT OR OTHERWISE. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED THAT THE PROVISIONS OF THIS SECTION
9.11(b) CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH THE OTHER PARTIES HAVE RELIED, ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. THE PARTIES HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION 9.11(b) WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF SUCH OTHER PARTY TO THE WAIVER OF ITS RIGHTS TO TRIAL BY JURY. 


        SECTION
9.12.    Headings.    


Section
headings used herein are for convenience only and are not to affect the construction of or be taken into consideration in interpreting this Agreement. 



        SECTION
9.13.    Execution in Counterparts.    


This
Agreement may be executed in any number of counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument. 


47





 



        SECTION
9.14.    Entire Agreement.    



This
Agreement represents the entire agreement of the parties with regard to the subject matter hereof and the terms of any letters and other documentation entered into among the Borrower, the
Administrative Agent or any Lender (other than the provisions of the letter agreement dated June    , 2003, among the Borrower, JPMorgan Chase Bank and J.P. Morgan Securities Inc.,
relating to fees and expenses and syndication issues) prior to the execution of this Agreement which relate to Loans to be made shall be replaced by the terms of this Agreement. 


        SECTION
9.15.    Foreign Currency Judgments.    (a) If, for the purpose of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the Borrower agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that
at which in accordance with normal banking procedures in the relevant jurisdiction the relevant Lender (or agent acting on its behalf) or the Administrative Agent could purchase the first currency
with such other currency for the first currency on the Business Day immediately preceding the day on which final judgment is given. 


        (b)   The
obligations of the Borrower in respect of any sum due hereunder shall, notwithstanding any judgment in a currency (the "Judgment
Currency") other than that in which such sum is denominated in accordance with this Agreement (the "Agreement Currency"), be
discharged only to the extent that, on the Business Day following receipt by any Lender (or agent acting on its behalf) (the "Applicable Creditor") of
any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the
Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss, provided, that if the amount of the Agreement
Currency so purchased exceeds the sum originally due to the Applicable Creditor, the Applicable Creditor agrees to remit such excess to the Borrower. The obligations of the Borrower contained in this
Section 9.15 shall survive the termination of this Agreement and the payment of all amounts owing hereunder. Each Borrower shall repay each Loan made to it, and interest thereon, in the
Currency in which such Loan is denominated. 


        SECTION
9.16.    Language.    The parties hereto have agreed that this Agreement as well as any document or instrument
relating thereto be drawn up in English only. 


        SECTION
9.17.    Confidentiality.    Each of the Administrative Agent and the Lenders agrees to keep confidential all
non-public information provided to it by the Borrower and its Subsidiaries pursuant to this Agreement that is designated by the Borrower as confidential; provided that nothing herein shall
prevent the Administrative Agent or any Lender from disclosing any such information (a) to the Administrative Agent, any other Lender or any affiliate of any Lender, (b) to any
participant or assignee (each, a "Transferee") of such Lender or prospective Transferee which agrees to comply with the provisions of this Section, (c) to any of its employees, directors,
agents, attorneys, accountants and other professional advisors, (d) upon the request or demand of any governmental or regulatory authority having jurisdiction over it, (e) in response to
any order of any court or other governmental authority or as may otherwise be required pursuant to any requirement of law, (f) if requested or required to do so in connection with any
litigation or similar proceeding, (g) which has been publicly disclosed other than in breach of this Section 9.17, (h) to the National Association of Insurance Commissioners or
any similar organization or any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings issued with respect to such
Lender or (i) in connection with the exercise of any remedy hereunder or under any other Fundamental Document. Notwithstanding any other provision in this Agreement, each of the parties hereto
(and each employee, representative, or other agent of any such party) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of the
transaction and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such U.S. tax treatment and U.S. tax structure, other than any
information (i) that is not relevant to understanding the U.S. tax treatment and U.S. tax structure of the transaction (including the identity of any party and any information that could lead
another to determine the identity of any party) or (ii) for which nondisclosure is reasonably necessary in order to comply with applicable securities laws. 


48







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



	 	 	PHH CORPORATION
	

 	
 	

By:	
 	

/s/  DUNCAN H. COCROFT      
 Name: Duncan H. Cocroft

Title: Executive Vice President and Chief Financial Officer
	

 	
 	

JPMORGAN CHASE BANK
	

 	
 	

By:	
 	

/s/  RANDOLPH CATES      
 Title: Randolph Cates

Name: Vice President
	

 	
 	

MANUFACTURERS AND TRADERS TRUST COMPANY
	

 	
 	

By:	
 	

/s/  WILLIAM R. KEEHN      
 Name: William R. Keehn

Title: Assistant Vice President
	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  IGOR SUICIA      
 Name: Igor Suicia

Title: Vice President
	

 	
 	

BMO NESBITT BURNS FINANCING, INC.
	

 	
 	

By:	
 	

/s/  BRIAN L. BANKE      
 Name: Brian L. Banke

Title: Managing Director
	

 	
 	

UBS AG, Cayman Islands Branch
	

 	
 	

By:	
 	

/s/  PATRICIA O'KICKI      
 Name: Patricia O'Kicki

Title: Director
	

 	
 	

By:	
 	

/s/  LUKE GOLDSWORTHY      
 Name: Luke Goldsworthy

Title: Associate Director Banking Products Services, US
	

 	
 	

THE BANK OF NOVA SCOTIA
	

 	
 	

By:	
 	

/s/  TODD S. MELLER      
 Name: Todd S. Meller

Title: Managing Director
	 	 	 	 	 





49





 

	

 	
 	

DANSKE BANK A/S
	

 	
 	

By:	
 	

/s/  PETER L. HARGRAVES      
 Name: Peter L. Hargraves

Title: Vice President
	

 	
 	

By:	
 	

/s/  JOHN A. O'NEILL      
 Name: John A. O'Neill

Title: Assistant General Manager
	

 	
 	

BANK ONE, NA
	

 	
 	

By:	
 	

/s/  NELSON ALBRECHT      
 Name: Nelson Albrecht

Title: Director
	

 	
 	

BARCLAYS BANK PLC
	

 	
 	

By:	
 	

/s/  JOHN GIANNONE      
 Name: John Giannone

Title: Director
	

 	
 	

CIBC INC.
	

 	
 	

By:	
 	

/s/  DOMINIC SORRESSO      
 Name: Dominic Sorresso

Title: Executive Director

CIBC World Markets Corp., as Agent
	

 	
 	

CITIBANK N.A.
	

 	
 	

By:	
 	

/s/  STUART G. MILLER      
 Name: Stuart G. Miller

Title: Vice President
	

 	
 	

CREDIT LYONNAIS NEW YORK BRANCH
	

 	
 	

By:	
 	

/s/  ROD HURST      
 Name: Rod Hurst

Title: Vice President
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

Cayman Islands Branch
	

 	
 	

By:	
 	

/s/  BILL O'DALY      
 Name: Bill O'Daly

Title: Director
	

 	
 	

By:	
 	

/s/  CASSANDRA DROOGAN      
 Name: Cassandra Droogan

Title: Associate
	 	 	 	 	 



50





 

	

 	
 	

WACHOVIA BANK, NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/  DANIEL L. EVANS      
 Name: Daniel L. Evans

Title: Managing Director
	

 	
 	

MELLON BANK, N.A.
	

 	
 	

By:	
 	

/s/  J. WADE BELL      
 Name: J. Wade Bell

Title: Vice President
	

 	
 	

THE ROYAL BANK OF SCOTLAND PLC
	

 	
 	

By:	
 	

/s/  STEVE BARLOW      
 Name: Steve Barlow

Title: Corporate Director
	

 	
 	

WELLS FARGO BANK
	

 	
 	

By:	
 	

/s/  LAUREN DOWNUM      
 Name: Lauren Downum

Title: Vice President
	

 	
 	

By:	
 	

/s/  KATRINA FLOWERS      
 Name: Katrina Flowers

Title: Vice President
	

 	
 	

WESTLB AG, NEW YORK BRANCH
	

 	
 	

By:	
 	

/s/  DUNCAN M. ROBERTSON      
 Name: Duncan M. Robertson

Title: Executive Director
	

 	
 	

By:	
 	

/s/  ALAN S. BOOKSPAN      
 Name: Alan S. Bookspan

Title: Executive Director




51







 
 

Schedule 1.1A    
    


 
 

Commitments    
    



	Lender
 
	 	Commitment

	JPMorgan Chase Bank	 	 	40,000,000
	Barclays Bank PLC	 	 	35,000,000
	Citibank N.A.	 	 	35,000,000
	The Royal Bank of Scotland PLC	 	 	35,000,000
	UBS AG	 	 	35,000,000
	

Bank of America, N.A.	
 	
 	

30,000,000
	Bank One, NA	 	 	30,000,000
	BMO Nesbitt Burns Financing, Inc.	 	 	30,000,000
	Credit Lyonnais New York Branch	 	 	30,000,000
	The Bank of Nova Scotia	 	 	30,000,000
	Wachovia Bank, National Association	 	 	30,000,000
	

Allfirst Bank	
 	
 	

20,000,000
	CIBC Inc	 	 	20,000,000
	Credit Suisse First Boston	 	 	20,000,000
	Danske Bank	 	 	20,000,000
	Mellon Bank, N.A.	 	 	20,000,000
	Wells Fargo Bank, N.A.	 	 	20,000,000
	WestLB AG, New York Branch	 	 	20,000,000
	

TOTAL	
 	
$	

500,000,000









 
 

Schedule 1.1B    
    


 
 

Available Foreign Currencies    
    


For purposes of Competitive Loans, Available Foreign Currencies are the following: 



Australian
Dollars

Canadian Dollars

British Pounds Sterling

euros

Japanese Yens

Swiss Francs 








 
 

Schedule 6.1    
    


 
 

Existing Material Subsidiary Indebtedness    
    


Various
Capital Lease Agreements—Cendant Mobility has minimum lease payments in the amount of $1,962,000 and Cendant Mortgage has minimum lease payments in the amount of $2,654,000. 









 
 

Schedule 6.4    
    


 
 

Existing Liens    
    


Liens in connection with leases of office equipment incurred in the ordinary course of business. 











QuickLinks



Exhibit 10.1


Table of Contents




Schedule 1.1A


Commitments



Schedule 1.1B


Available Foreign Currencies



Schedule 6.1


Existing Material Subsidiary Indebtedness



Schedule 6.4


Existing Liens