Document:

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                                                                    EXHIBIT 4.1

                                                        COMPOSITE CONFORMED COPY

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                                 PHH CORPORATION

                                  $443,000,000

            $82,000,000 6.99% Senior Notes, Series A, due May 1, 2005
           $109,000,000 7.55% Senior Notes, Series B, due May 1, 2007
           $154,000,000 8.05% Senior Notes, Series C, due May 1, 2009
            $20,000,000 8.31% Senior Notes, Series D, due May 1, 2012
            $18,000,000 6.82% Senior Notes, Series E, due May 1, 2005
            $36,000,000 7.41% Senior Notes, Series F, due May 1, 2007
            $19,000,000 7.93% Senior Notes, Series G, due May 1, 2009
            $5,000,000 8.22% Senior Notes, Series H, due May 1, 2012

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                             NOTE PURCHASE AGREEMENT

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                                Dated May 3, 2002

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                                TABLE OF CONTENTS

                          (Not a part of the Agreement)

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<Caption>
SECTION                                      HEADING                              PAGE
<S>                 <C>                                                            <C>
SECTION 1.          AUTHORIZATION OF NOTES......................................... 1

SECTION 2.          SALE AND PURCHASE OF NOTES..................................... 2

SECTION 3.          CLOSING........................................................ 2

SECTION 4.          CONDITIONS TO CLOSING.......................................... 3

     Section 4.1.   Representations and Warranties................................. 3
     Section 4.2.   Performance; No Default........................................ 3
     Section 4.3.   Compliance Certificates........................................ 3
     Section 4.4.   Opinions of Counsel............................................ 3
     Section 4.5.   Purchase Permitted By Applicable Law, etc...................... 4
     Section 4.6.   Sale of Other Notes............................................ 4
     Section 4.7.   Payment of Special Counsel Fees................................ 4
     Section 4.8.   Private Placement Number....................................... 4
     Section 4.9.   Changes in Corporate Structure................................. 4
     Section 4.10.  Proceedings and Documents...................................... 4

SECTION 5.          REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................. 5

     Section 5.1.   Organization; Power and Authority.............................. 5
     Section 5.2.   Authorization, etc............................................. 5
     Section 5.3.   Disclosure..................................................... 5
     Section 5.4.   Organization and Ownership of Shares of Subsidiaries;
                       Affiliates.................................................. 6
     Section 5.5.   Financial Statements........................................... 6
     Section 5.6.   Compliance with Laws, Other Instruments, etc................... 6
     Section 5.7.   Governmental Authorizations, etc............................... 7
     Section 5.8.   Litigation; Observance of Agreements, Statutes and Orders...... 7
     Section 5.9.   Taxes.......................................................... 7
     Section 5.10.  Title to Property; Leases...................................... 7
     Section 5.11.  Licenses, Permits, etc......................................... 8
     Section 5.12.  Compliance with ERISA.......................................... 8
     Section 5.13.  Private Offering by the Company................................ 9
     Section 5.14.  Use of Proceeds; Margin Regulations............................ 9
     Section 5.15.  Existing Debt; Future Liens.................................... 9
     Section 5.16.  Foreign Assets Control Regulations, etc........................10
     Section 5.17.  Status under Certain Statutes..................................10
     Section 5.18.  Notes Rank PARI PASSU..........................................10
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<S>                 <C>                                                            <C>
     Section 5.19.  Environmental Matters..........................................10

SECTION 6.          REPRESENTATIONS OF THE PURCHASER...............................11

     Section 6.1.   Purchase for Investment........................................11
     Section 6.2.   Source of Funds................................................11

SECTION 7.          INFORMATION AS TO COMPANY......................................13

     Section 7.1.   Financial and Business Information.............................13
     Section 7.2.   Officer's Certificate..........................................16
     Section 7.3.   Inspection.....................................................16

SECTION 8.          PREPAYMENT OF THE NOTES........................................17

     Section 8.1.   No Required Prepayments........................................17
     Section 8.2.   Optional Prepayments with Make-Whole Amount....................17
     Section 8.3.   Change of Control..............................................17
     Section 8.4.   Allocation of Partial Prepayments..............................19
     Section 8.5.   Maturity; Surrender, etc.......................................19
     Section 8.6.   Purchase of Notes..............................................19
     Section 8.7.   Make-Whole Amount and Modified Make-Whole Amount...............19

SECTION 9.          AFFIRMATIVE COVENANTS..........................................21

     Section 9.1.   Compliance with Law............................................21
     Section 9.2.   Insurance......................................................21
     Section 9.3.   Maintenance of Properties......................................21
     Section 9.4.   Payment of Taxes and Claims....................................21
     Section 9.5.   Corporate Existence, etc.......................................22
     Section 9.6.   Notes to Rank Pari Passu.......................................22

SECTION 10.         NEGATIVE COVENANTS.............................................22

     Section 10.1.  Transactions with Affiliates...................................22
     Section 10.2.  Merger, Consolidation, etc.....................................22
     Section 10.3.  Liens..........................................................23
     Section 10.4.  Consolidated Net Worth.........................................26
     Section 10.5.  Ratio of Consolidated Total Debt to Consolidated Net Worth.....26
     Section 10.6.  Limitation on Restricted Payments..............................26
     Section 10.7.  Limitation on Subsidiary Debt..................................26

SECTION 11.         EVENTS OF DEFAULT..............................................28

SECTION 12.         REMEDIES ON DEFAULT, ETC.......................................30

     Section 12.1.  Acceleration...................................................30
     Section 12.2.  Other Remedies.................................................31
     Section 12.3.  Rescission.....................................................31
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<S>                 <C>                                                            <C>
     Section 12.4.  No Waivers or Election of Remedies, Expenses, etc..............31

SECTION 13.         REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES..................31

     Section 13.1.  Registration of Notes..........................................31
     Section 13.2.  Transfer and Exchange of Notes.................................32
     Section 13.3.  Replacement of Notes...........................................32

SECTION 14.         PAYMENTS ON NOTES..............................................33

     Section 14.1.  Place of Payment...............................................33
     Section 14.2.  Home Office Payment............................................33

SECTION 15.         EXPENSES, ETC..................................................33

     Section 15.1.  Transaction Expenses...........................................33
     Section 15.2.  Survival.......................................................34

SECTION 16.         SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT...34

SECTION 17.         AMENDMENT AND WAIVER...........................................34

     Section 17.1.  Requirements...................................................34
     Section 17.2.  Solicitation of Holders of Notes...............................35
     Section 17.3.  Binding Effect, etc............................................35
     Section 17.4.  Notes Held by Company, etc.....................................35

SECTION 18.         NOTICES........................................................35

SECTION 19.         REPRODUCTION OF DOCUMENTS......................................36

SECTION 20.         CONFIDENTIAL INFORMATION.......................................36

SECTION 21.         SUBSTITUTION OF PURCHASER......................................37

SECTION 22.         MISCELLANEOUS..................................................38

     Section 22.1.  Successors and Assigns.........................................38
     Section 22.2.  Payments Due on Non-Business Days..............................38
     Section 22.3.  Severability...................................................38
     Section 22.4.  Construction...................................................38
     Section 22.5.  Counterparts...................................................38
     Section 22.6.  Governing Law..................................................38
     Section 22.7.  Waiver of Jury Trial...........................................38
     Section 22.8.  Consent to Jurisdiction........................................39
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Signature..........................................................................40
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SCHEDULE A          --  INFORMATION RELATING TO PURCHASERS

SCHEDULE B          --  DEFINED TERMS

SCHEDULE 5.4        --  Subsidiaries of the Company and Ownership of Subsidiary
                        Stock

SCHEDULE 5.5        --  Financial Statements

SCHEDULE 5.15       --  Existing Debt

EXHIBIT 1-A         --  Form of 6.99% Senior Note, Series A, due May 1, 2005

EXHIBIT 1-B         --  Form of 7.55% Senior Note, Series B, due May 1, 2007

EXHIBIT 1-C         --  Form of 8.05% Senior Note, Series C, due May 1, 2009

EXHIBIT 1-D         --  Form of 8.31% Senior Note, Series D, due May 1, 2012

EXHIBIT 1-E         --  Form of 6.82% Senior Note, Series E, due May 1, 2005

EXHIBIT 1-F         --  Form of 7.41% Senior Note, Series F, due May 1, 2007

EXHIBIT 1-G         --  Form of 7.93% Senior Note, Series G, due May 1, 2009

EXHIBIT 1-H         --  Form of 8.22% Senior Note, Series H, due May 1, 2012

EXHIBIT 4.4(a)(1)   --  Form of Opinion of Special Counsel for the Company

EXHIBIT 4.4(a)(2)   --  Form of Opinion of Executive Vice President and Counsel
                        of the Company

EXHIBIT 4.4(a)(3)   --  Form of Opinion of Senior Vice President, Legal and
                        Assistant Secretary of the Company

EXHIBIT 4.4(a)(4)   --  Form of Opinion of Corporate Counsel to Cendant Mortgage
                        Corporation

EXHIBIT 4.4(b)      --  Form of Opinion of Special Counsel for the Purchasers

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                                 PHH CORPORATION
                                 1 CAMPUS DRIVE
                        PARSIPPANY, NEW JERSEY 07054-0642

            $82,000,000 6.99% Senior Notes, Series A, due May 1, 2005
           $109,000,000 7.55% Senior Notes, Series B, due May 1, 2007
           $154,000,000 8.05% Senior Notes, Series C, due May 1, 2009
            $20,000,00 8.31% Senior Notes, Series D, due May 1, 2012
            $18,000,000 6.82% Senior Notes, Series E, due May 1, 2005
            $36,000,000 7.41% Senior Notes, Series F, due May 1, 2007
            $19,000,000 7.93% Senior Notes, Series G, due May 1, 2009
            $5,000,000 8.22% Senior Notes, Series H, due May 1, 2012

                                                                     May 3, 2002

TO EACH OF THE PURCHASERS LISTED IN
 THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

     PHH Corporation, a Maryland corporation (the "COMPANY"), agrees with you as
follows:

SECTION 1.  AUTHORIZATION OF NOTES.

     The Company will authorize the issue and sale of:

          (a)  $82,000,000 aggregate principal amount of its 6.99% Senior
     Notes, Series A, due May 1, 2005 (the "SERIES A NOTES"),

          (b)  $109,000,000 aggregate principal amount of its 7.55% Senior
     Notes, Series B, due May 1, 2007 (the "SERIES B NOTES"),

          (c)  $154,000,000 aggregate principal amount of its 8.05% Senior
     Notes, Series C, due May 1, 2009 (the "SERIES C NOTES"),

          (d)  $20,000,000 aggregate principal amount of its 8.31% Senior
     Notes, Series D, due May 1, 2012 (the "SERIES D NOTES"),

          (e)  $18,000,000 aggregate principal amounts of its 6.82% Senior
     Notes, Series E, due May 1, 2005 (the "SERIES E NOTES"),

          (f)  $36,000,000 aggregate principal amounts of its 7.41% Senior
     Notes, Series F, due May 1, 2007 (the "SERIES F NOTES"),

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          (g)  $19,000,000 aggregate principal amounts of its 7.93% Senior
     Notes, Series G, due May 1, 2009 (the "SERIES G NOTES"), and

          (h)  $5,000,000 aggregate principal amounts of its 8.22% Senior
     Notes, Series H, due May 1, 2012 (the "SERIES H NOTES").

     The Series A Notes, Series B Notes, Series C Notes, Series D Notes, Series
E Notes, Series F Notes, Series G Notes and Series H Notes, are hereinafter
collectively referred to as the "NOTES", and such term shall include any such
notes issued in substitution therefor pursuant to SECTION 13 of this Agreement
or the Other Agreements (as hereinafter defined)). The Notes shall be
substantially in the forms set out in EXHIBITS 1-A, 1-B, 1-C, 1-D, 1-E, 1-F, 1-G
and 1-H respectively, with such changes therefrom, if any, as may be approved by
you, the Other Purchasers (as hereinafter defined) and the Company. Certain
capitalized terms used in this Agreement are defined in SCHEDULE B; references
to a "SCHEDULE" or an "EXHIBIT" are, unless otherwise specified, to a Schedule
or an Exhibit attached to this Agreement.

SECTION 2.  SALE AND PURCHASE OF NOTES.

     Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and you will purchase from the Company, at the Closing
provided for in SECTION 3, Notes in the principal amount and of the Series
specified opposite your name in SCHEDULE A at the purchase price of 100% of the
principal amount thereof. Contemporaneously with entering into this Agreement,
the Company is entering into separate Note Purchase Agreements (the "OTHER
AGREEMENTS") identical with this Agreement with each of the other purchasers
named in SCHEDULE A (the "OTHER PURCHASERS"), providing for the sale at such
Closing to each of the Other Purchasers of Notes in the principal amount and of
the Series specified opposite its name in SCHEDULE A. Your obligation hereunder,
and the obligations of the Other Purchasers under the Other Agreements, are
several and not joint obligations, and you shall have no obligation under any
Other Agreement and no liability to any Person for the performance or
nonperformance by any Other Purchaser thereunder.

SECTION 3.  CLOSING.

     The sale and purchase of the Notes to be purchased by you and the Other
Purchasers shall occur at the offices of Chapman and Cutler, 111 West Monroe
Street, Chicago, Illinois 60603, at 10:00 a.m., Chicago time, at a closing (the
"CLOSING") on May 3, 2002 or on such other Business Day thereafter on or prior
to May 6, 2002 as may be agreed upon by the Company and you and the Other
Purchasers. At the Closing the Company will deliver to you the Notes to be
purchased by you in the form of a single Note (or such greater number of Notes
in denominations of at least $100,000 as you may request) dated the date of the
Closing and registered in your name (or in the name of your nominee), against
delivery by you to the Company or its order of immediately available funds in
the amount of the purchase price therefor by wire transfer of immediately
available funds for the account of the Company to account number 323018688 at
JP Morgan Chase, New York, New York, ABA #021000021. If at the Closing the
Company shall fail to tender such Notes to you as provided above in this SECTION
3, or any of the conditions specified in SECTION 4 shall not have been fulfilled
to your satisfaction, you shall, at your election, be

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relieved of all further obligations under this Agreement, without thereby
waiving any rights you may have by reason of such failure or such
nonfulfillment.

SECTION 4.  CONDITIONS TO CLOSING.

     Your obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the following conditions:

     SECTION 4.1.   REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company in this Agreement shall be correct in all material
respects when made and at the time of the Closing.

     SECTION 4.2.   PERFORMANCE; NO DEFAULT. The Company shall have performed
and complied with all agreements and conditions contained in this Agreement
required to be performed or complied with by it prior to or at the Closing and
after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by SECTION 5.14) no Default or Event of
Default shall have occurred and be continuing. Neither the Company nor any
Subsidiary shall have entered into any transaction since April 1, 2002 that
would have been prohibited by SECTION 10 hereof had such Section applied since
such date.

     SECTION 4.3.   COMPLIANCE CERTIFICATES.

     (a)  OFFICER'S CERTIFICATE. The Company shall have delivered to you an
Officer's Certificate, dated the date of the Closing, certifying that the
conditions specified in SECTIONS 4.1, 4.2 and 4.9 have been fulfilled.

     (b)  SECRETARY'S CERTIFICATE. The Company shall have delivered to you a
certificate certifying as to the resolutions attached thereto and other
corporate proceedings relating to the authorization, execution and delivery of
the Notes and the Agreements.

     SECTION 4.4.   OPINIONS OF COUNSEL. You shall have received opinions in
form and substance satisfactory to you, dated the date of the Closing (a) from
Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for the Company, Eric
J. Bock, Executive Vice President and Secretary and Counsel for the Company,
Joseph Weikel, Senior Vice President, Legal and Assistant Secretary of the
Company and John Hromy, corporate counsel to Cendant Mortgage Corporation,
covering the matters set forth in EXHIBITS 4.4(a)(1), 4.4(a)(2), 4.4(a)(3) and
4.4(a)(4), respectively and covering such other matters incident to the
transactions contemplated hereby as you or your counsel may reasonably request
(and the Company hereby instructs its counsel to deliver such opinion to you)
and (b) from Chapman and Cutler, your special counsel in connection with such
transactions, substantially in the form set forth in EXHIBITS 4.4(B) and
covering such other matters incident to such transactions as you may reasonably
request.

     SECTION 4.5.   PURCHASE PERMITTED BY APPLICABLE LAW, ETC. On the date of
the Closing your purchase of Notes shall (i) be permitted by the laws and
regulations of each jurisdiction to which you are subject, without recourse to
provisions (such as section 1405(a)(8) of the New

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York Insurance Law) permitting limited investments by insurance companies
without restriction as to the character of the particular investment, (ii) not
violate any applicable law or regulation (including, without limitation,
Regulation U, T or X of the Board of Governors of the Federal Reserve System)
and (iii) not subject you to any tax, penalty or liability under or pursuant to
any applicable law or regulation, which law or regulation was not in effect on
the date hereof. If requested by you, you shall have received an Officer's
Certificate certifying as to such matters of fact as you may reasonably specify
to enable you to determine whether such purchase is so permitted.

     SECTION 4.6.   SALE OF OTHER NOTES. Contemporaneously with the Closing, the
Company shall sell to the Other Purchasers, and the Other Purchasers shall
purchase the Notes to be purchased by them at the Closing as specified in
SCHEDULE A.

     SECTION 4.7.   PAYMENT OF SPECIAL COUNSEL FEES. Without limiting the
provisions of SECTION 15.1, the Company shall have paid on or before the Closing
the reasonable fees, charges and disbursements of one special counsel to the
Purchasers referred to in SECTION 4.4 to the extent reflected in a statement of
such counsel rendered to the Company at least one Business Day prior to the
Closing.

     SECTION 4.8.   PRIVATE PLACEMENT NUMBER. A Private Placement number issued
by Standard & Poor's CUSIP Service Bureau (in cooperation with the Securities
Valuation Office of the National Association of Insurance Commissioners) shall
have been obtained for each Series of Notes.

     SECTION 4.9.   CHANGES IN CORPORATE STRUCTURE. The Company shall not have
changed its jurisdiction of incorporation or been a party to any merger or
consolidation and shall not have succeeded to all or any substantial part of the
liabilities of any other entity if such liabilities would be Material, at any
time following the date of the most recent financial statements referred to in
SCHEDULE 5.5.

     SECTION 4.10.  PROCEEDINGS AND DOCUMENTS. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
reasonably satisfactory to you and your special counsel, and you and your
special counsel shall have received all such counterpart originals or certified
or other copies of such documents as you or they may reasonably request.

SECTION 5.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants to you that:

     SECTION 5.1.   ORGANIZATION; POWER AND AUTHORITY. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The Company
has the

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corporate power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver this Agreement and the Other
Agreements and the Notes and to perform the provisions hereof and thereof.

     SECTION 5.2.   AUTHORIZATION, ETC. This Agreement and the Other Agreements
and the Notes have been duly authorized by all necessary corporate action on the
part of the Company, and this Agreement constitutes, and upon execution and
delivery thereof each Note will constitute, a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

     SECTION 5.3.   DISCLOSURE. The Company, through its agent, Barclays
Capital, Inc. has delivered to you and each Other Purchaser a copy of a
Confidential Offering Memorandum, dated March 2002 (the "MEMORANDUM"), relating
to the transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Company and its Subsidiaries. As of the date of Closing, this Agreement,
the Memorandum, the documents, certificates or other writings delivered to you
by or on behalf of the Company in connection with the transactions contemplated
hereby and the financial statements listed in SCHEDULE 5.5 (with respect to the
periods covered thereby) including the Annual Report, taken as a whole, do not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading in light of the
circumstances under which they were made.

     From December 31, 2001 to the date hereof, there has been no change in the
financial condition, operations, business, or assets of the Company and its
Consolidated Subsidiaries, taken as a whole except changes that individually or
in the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that could reasonably be expected
to have a Material Adverse Effect that has not been set forth herein, in the
Memorandum, in the Annual Report or in the other documents, certificates and
other writings delivered to you by or on behalf of the Company specifically for
use in connection with the transactions contemplated hereby.

     SECTION 5.4.   ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES;
AFFILIATES. (a) SCHEDULE 5.4 contains (except as noted therein) complete and
correct lists (i) of the Company's Subsidiaries, showing, as to each Subsidiary,
the correct name thereof, the jurisdiction of its organization, and the
percentage of shares of each class of its Capital Stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, (ii) of
the Company's Affiliates, other than Subsidiaries, and (iii) of the Company's
directors and officers.

     (b)  All of the outstanding shares of Capital Stock or similar equity
interests of each Subsidiary shown in SCHEDULE 5.4 as being owned by the Company
and its Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Company or another

                                       -5-
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Subsidiary free and clear of any Lien other than as permitted pursuant to this
Agreement (except as otherwise disclosed in SCHEDULE 5.4).

     (c)  Each Subsidiary identified in SCHEDULE 5.4 is a corporation or other
legal entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each such Subsidiary has the corporate or other power and
authority to own or hold under lease the properties it purports to own or hold
under lease and to transact the business it transacts and proposes to transact.

     (d)  Other than in connection with a securitization transaction permitted
pursuant to this Agreement, no Material Subsidiary is a party to, or otherwise
subject to any legal restriction or any agreement (other than this Agreement,
the agreements listed on SCHEDULE 5.4 and customary limitations imposed by
corporate law statutes) restricting the ability of such Material Subsidiary to
pay dividends out of profits or make any other similar distributions of profits
to the Company or any of its Subsidiaries that owns outstanding shares of
Capital Stock or similar equity interests of such Material Subsidiary.

     SECTION 5.5.   FINANCIAL STATEMENTS. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its Consolidated
Subsidiaries listed on SCHEDULE 5.5. All of said financial statements (including
in each case the related schedules and notes) fairly present in all material
respects the consolidated financial position of the Company and its Consolidated
Subsidiaries as of the respective dates specified in such Schedule and the
consolidated results of their operations and cash flows for the respective
periods so specified and have been prepared in accordance with GAAP consistently
applied throughout the periods involved except as set forth in the notes thereto
(subject, in the case of any interim financial statements, to normal year-end
adjustments).

     SECTION 5.6.   COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC. The execution,
delivery and performance by the Company of this Agreement and the Notes will not
(i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of the Company or
any Subsidiary under, any Material indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other
Material agreement or instrument to which the Company or any Subsidiary is bound
or by which the Company or any Subsidiary or any of their respective properties
may be bound or affected, (ii) conflict with or result in a breach of any of the
terms, conditions or provisions of any order, judgment, decree, or ruling of any
court, arbitrator or Governmental Authority applicable to the Company or any
Subsidiary or (iii) violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to the Company or any
Subsidiary.

     SECTION 5.7.   GOVERNMENTAL AUTHORIZATIONS, ETC. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Company of this Agreement or the Notes.

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     SECTION 5.8.   LITIGATION; OBSERVANCE OF AGREEMENTS, STATUTES AND ORDERS.
(a) There are no actions, suits or proceedings pending or, to the knowledge of
the Company, threatened against or affecting the Company or any Subsidiary or
any property of the Company or any Subsidiary in any court or before any
arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     (b)  Neither the Company nor any Subsidiary is in default under any term of
any agreement or instrument to which it is a party or by which it is bound, or
any order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation Environmental Laws) of any Governmental
Authority, which default or violation, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

     SECTION 5.9.   TAXES. The Company and its Subsidiaries have filed all tax
returns that are required to have been filed in any jurisdiction, and have paid
all taxes shown on such returns and all other taxes and assessments levied upon
them or their properties, assets, income or franchises, to the extent such taxes
and assessments have become due and payable and before they have become
delinquent, except (a) as permitted by SECTION 9.4 and (b) to the extent that
the failure to do so could not reasonably be expected to result in a Material
Adverse Effect. The Company knows of no basis for any other tax or assessment
that could reasonably be expected to have a Material Adverse Effect. The
charges, accruals and reserves on the books of the Company and its Subsidiaries
in respect of federal, state or other taxes for all fiscal periods are adequate.
The federal income tax liabilities of the Company and its Subsidiaries have been
determined by the Internal Revenue Service and paid for all fiscal years up to
and including the fiscal year ended April 30, 1996.

     SECTION 5.10.  TITLE TO PROPERTY; LEASES. The Company and its Subsidiaries
have good and sufficient title to their respective properties that individually
or in the aggregate are Material, including all such properties reflected in the
most recent audited balance sheet referred to in SECTION 5.5 or purported to
have been acquired by the Company or any Subsidiary after said date (except as
sold or otherwise disposed of in the ordinary course of business), 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
prohibited by this Agreement. All leases that individually or in the aggregate
are Material are valid and subsisting and are in full force and effect in all
material respects.

     SECTION 5.11.  LICENSES, PERMITS, ETC. (a) The Company and its Subsidiaries
own or possess all licenses, permits, franchises, authorizations, patents,
copyrights, service marks, trademarks and trade names, or rights thereto, that
individually or in the aggregate are Material, without known conflict with the
rights of others, except such conflicts that could not reasonably be expected to
have a Material Adverse Effect;

     (b)  to the best knowledge of the Company, no product of the Company
infringes in any Material respect any license, permit, franchise, authorization,
patent, copyright, service mark, trademark, trade name or other right owned by
any other Person; and

                                       -7-
<Page>

     (c)  to the best knowledge of the Company, there is no Material violation
by any Person of any right of the Company or any of its Subsidiaries with
respect to any patent, copyright, service mark, trademark, trade name or other
right owned or used by the Company or any of its Subsidiaries.

     SECTION 5.12.  COMPLIANCE WITH ERISA. (a) The Company and each ERISA
Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any ERISA Affiliate has incurred any liability (other
than contributions) pursuant to Title I or IV of ERISA or the penalty or excise
tax provisions of the Code relating to employee benefit plans (as defined in
section 3 of ERISA), and no event, transaction or condition has occurred or
exists that could reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA Affiliate, or in the imposition of any
Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty
or excise tax provisions or to section 401(a)(29) or 412 of the Code, in each
case, other than such liabilities, penalties, excise taxes or Liens as would not
be individually or in the aggregate Material.

     (b)  The present value of the aggregate benefit liabilities under each of
the Plans (other than Multiemployer Plans), determined as of the end of such
Plan's most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan's most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities by more than $40,000,000 in the case of
any single Plan and by more than $80,000,000 in the aggregate for all Plans. The
terms "benefit liabilities" has the meaning specified in section 4001 of ERISA
and the terms "current value" and "present value" have the respective meanings
specified in section 3 of ERISA.

     (c)  The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

     (d)  The expected post-retirement benefit obligation (determined as of the
last day of the Company's most recently ended fiscal year in accordance with
Financial Accounting Standards Board Statement No. 106, without regard to
liabilities attributable to continuation coverage mandated by section 4980B of
the Code) of the Company and its Subsidiaries is not, individually or in the
aggregate, Material.

     (e)  The execution and delivery of this Agreement and the issuance and sale
of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of section 406 of ERISA or in connection with which a tax could be
imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by
the Company in the first sentence of this SECTION 5.12(e) is made in reliance
upon and subject to the accuracy of your representation in SECTION 6.2 as to the
sources of the funds used to pay the purchase price of the Notes to be purchased
by you.

                                       -8-
<Page>

     SECTION 5.13.  PRIVATE OFFERING BY THE COMPANY. Since November 1, 2001,
neither the Company nor anyone acting on its behalf has offered the Notes or any
similar securities for sale to, or solicited any offer to buy any of the same
from, or otherwise approached or negotiated in respect thereof with, any Person
other than you, the Other Purchasers and not more than 30 other Institutional
Investors, each of which has been offered the Notes at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or
will take, any action that would subject the issuance or sale of the Notes to
the registration requirements of section 5 of the Securities Act.

     SECTION 5.14.  USE OF PROCEEDS; MARGIN REGULATIONS. The Company will apply
the proceeds of the sale of the Notes to refinance existing debt and for general
corporate purposes. No part of the proceeds from the sale of the Notes hereunder
will be used, directly or indirectly, for the purpose of buying or carrying any
margin stock within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or
trading in any securities under such circumstances as to involve the Company in
a violation of Regulation X of said Board (12 CFR 224) or to involve any broker
or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin
stock does not constitute more than 10% of the value of the consolidated assets
of the Company and its Subsidiaries and the Company does not have any present
intention that margin stock will constitute more than 10% of the value of such
assets. As used in this Section, the terms "margin stock" and "purpose of buying
or carrying" shall have the meanings assigned to them in said Regulation U.

     SECTION 5.15.  EXISTING DEBT; FUTURE LIENS. (a) Except as described
therein, SCHEDULE 5.15 sets forth, in all material respects a complete and
correct list of all outstanding Debt of the Company and its Consolidated
Subsidiaries as of March 31, 2002, since which date there has been no Material
change in the amounts, interest rates, sinking funds, installment payments or
maturities of the Debt of the Company or its Subsidiaries. Neither the Company
nor any Subsidiary is in default and no waiver of default is currently in
effect, in the payment of any principal or interest on any Debt of the Company
or such Subsidiary and no event or condition exists with respect to any Debt
aggregating in excess of $25,000,000 of the Company or any Subsidiary that would
permit (or that with notice or the lapse of time, or both, would permit) one or
more Persons to cause such Debt to become due and payable before its stated
maturity or before its regularly scheduled dates of payment.

     (b)  Except as disclosed in SCHEDULE 5.15, neither the Company nor any
Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien not permitted by SECTION 10.3.

     SECTION 5.16.  FOREIGN ASSETS CONTROL REGULATIONS, ETC. Neither the sale of
the Notes by the Company hereunder nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto. Without limiting the foregoing, neither the Company nor any of
its Subsidiaries (a) is or will become a person whose property or interests in
property are blocked

                                       -9-
<Page>

pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages or will
engage in any dealings or transactions, or be otherwise associated, with any
such person.

     SECTION 5.17.  STATUS UNDER CERTAIN STATUTES. Neither the Company nor any
Subsidiary is subject to regulation under the Investment Company Act of 1940, as
amended, the Public Utility Holding Company Act of 1935, as amended, the
Transportation Acts (49 U.S.C.), as amended, or the Federal Power Act, as
amended.

     SECTION 5.18.  NOTES RANK PARI PASSU. The obligations of the Company under
this Agreement and the Notes rank at least PARI PASSU in right of payment with
all other senior unsecured Debt (actual or contingent) of the Company,
including, without limitation, all senior unsecured Debt of the Company
described in SCHEDULE 5.15 hereto.

     SECTION 5.19.  ENVIRONMENTAL MATTERS. Neither the Company nor any
Subsidiary has knowledge of any claim or has received any notice of any claim,
and no proceeding has been instituted raising any claim against the Company or
any of its Subsidiaries or any of their respective real properties now or
formerly owned, leased or operated by any of them or other assets, alleging any
damage to the environment or violation of any Environmental Laws, except, in
each case, such as could not reasonably be expected to result in a Material
Adverse Effect. Except as otherwise disclosed to you in writing:

          (a)  neither the Company nor any Subsidiary has knowledge of any facts
     which would give rise to any claim, public or private, of violation of
     Environmental Laws or damage to the environment emanating from, occurring
     on or in any way related to real properties now or formerly owned, leased
     or operated by any of them or to other assets or their use, except, in each
     case, such as could not reasonably be expected to result in a Material
     Adverse Effect;

          (b)  neither the Company nor any of its Subsidiaries has stored any
     Hazardous Materials on real properties now or formerly owned, leased or
     operated by any of them and has not disposed of any Hazardous Materials in
     a manner contrary to any Environmental Laws in each case in any manner that
     could reasonably be expected to result in a Material Adverse Effect; and

          (c)  all buildings on all real properties now owned, leased or
     operated by the Company or any of its Subsidiaries are in compliance with
     applicable Environmental Laws, except where failure to comply could not
     reasonably be expected to result in a Material Adverse Effect.

SECTION 6.  REPRESENTATIONS OF THE PURCHASER.

     SECTION 6.1.   PURCHASE FOR INVESTMENT. You represent that you are
purchasing the Notes for your own account or for one or more separate accounts
maintained by you or for the account of one or more pension or trust funds and
not with a view to the distribution thereof, PROVIDED

                                      -10-
<Page>

that the disposition of your or their property shall at all times be within your
or their control. You understand that the Notes have not been registered under
the Securities Act and may be resold only if registered pursuant to the
provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to
register the Notes.

     SECTION 6.2.   SOURCE OF FUNDS. You represent that at least one of the
following statements is an accurate representation as to each source of funds (a
"SOURCE") to be used by you to pay the purchase price of the Notes to be
purchased by you hereunder:

          (a)  the Source is an "insurance company general account" within the
     meaning of Department of Labor Prohibited Transaction Exemption ("PTE")
     95-60 (issued July 12, 1995) and there is no employee benefit plan,
     treating as a single plan, all plans maintained by the same employer or
     employee organization, with respect to which the amount of the general
     account reserves and liabilities for all contracts held by or on behalf of
     such plan, exceed ten percent (10%) of the total reserves and liabilities
     of such general account (exclusive of separate account liabilities) plus
     surplus, as set forth in the NAIC Annual Statement filed with your state of
     domicile; or

          (b)  the Source is either (i) an insurance company pooled separate
     account, within the meaning of PTE 90-1 (issued January 29, 1990), or (ii)
     a bank collective investment fund, within the meaning of the PTE 91-38
     (issued July 12, 1991) and, except as you have disclosed to the Company in
     writing pursuant to this paragraph (b), no employee benefit plan or group
     of plans maintained by the same employer or employee organization
     beneficially owns more than 10% of all assets allocated to such pooled
     separate account or collective investment fund; or

          (c)  the Source constitutes assets of an "investment fund" (within the
     meaning of Part V of the QPAM Exemption) managed by a "qualified
     professional asset manager" or "QPAM" (within the meaning of Part V of the
     QPAM Exemption), no employee benefit plan's assets that are included in
     such investment fund, when combined with the assets of all other employee
     benefit plans established or maintained by the same employer or by an
     affiliate (within the meaning of section V(c)(1) of the QPAM Exemption) of
     such employer or by the same employee organization and managed by such
     QPAM, exceed 20% of the total client assets managed by such QPAM, the
     conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,
     neither the QPAM nor a person controlling or controlled by the QPAM
     (applying the definition of "control" in Section V(e) of the QPAM
     Exemption) owns a 5% or more interest in the Company and (i) the identity
     of such QPAM and (ii) the names of all employee benefit plans whose assets
     are included in such investment fund have been disclosed to the Company in
     writing pursuant to this paragraph (c); or

          (d)  the Source is a governmental plan; or

                                      -11-
<Page>

          (e)  the Source is one or more employee benefit plans, or a separate
     account or trust fund comprised of one or more employee benefit plans, each
     of which has been identified to the Company in writing pursuant to this
     paragraph (e); or

          (f)  the Source does not include assets of any employee benefit plan,
     other than a plan exempt from the coverage of ERISA.

     If you or any subsequent transferee of the Notes indicates that you or such
transferee are relying on any representation contained in paragraph (b), (c) or
(e) above, the Company shall deliver on the date of Closing and on the date of
any applicable transfer a certificate, which shall either state that (i) it is
neither a party in interest nor a "disqualified person" (as defined in section
4975(e)(2) of the Code), with respect to any plan identified pursuant to
paragraphs (b) or (e) above, or (ii) with respect to any plan, identified
pursuant to paragraph (c) above, neither it nor any "affiliate" (as defined in
section V(c) of the QPAM Exemption) has at such time, and during the immediately
preceding one year, exercised the authority to appoint or terminate said QPAM as
manager of any plan identified in writing pursuant to paragraph (c) above or to
negotiate the terms of said QPAM's management agreement on behalf of any such
identified plan. As used in this SECTION 6.2, the terms "EMPLOYEE BENEFIT PLAN",
"GOVERNMENTAL PLAN", "PARTY IN INTEREST" and "SEPARATE ACCOUNT" shall have the
respective meanings assigned to such terms in section 3 of ERISA.

SECTION 7.  INFORMATION AS TO COMPANY.

     SECTION 7.1.   FINANCIAL AND BUSINESS INFORMATION. The Company shall
deliver to each holder of Notes that is an Institutional Investor:

          (a)  QUARTERLY STATEMENTS -- within 60 days after the end of each
     quarterly fiscal quarter of each fiscal year of the Company (other than the
     last fiscal quarter of each such fiscal year), duplicate copies of:

               (i)  the unaudited consolidated balance sheet of the Company and
          its Consolidated Subsidiaries as at the end of such quarter, and

               (ii) the related unaudited consolidated statements of income (or
          operations) and cash flows of the Company and its Consolidated
          Subsidiaries for such quarter and (in the case of the second and third
          quarters) for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding
periods in the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP applicable to quarterly financial statements generally, and
certified by a Senior Financial Officer as fairly presenting, in all material
respects, the financial position of the companies being reported on and their
results of operations and cash flows, subject to changes resulting from year-end
adjustments, PROVIDED that delivery within the time period specified above of
copies of the Company's Quarterly Report on Form 10-Q prepared in compliance
with the requirements

                                      -12-
<Page>

therefor and filed with the Securities and Exchange Commission shall be deemed
to satisfy the requirements of this SECTION 7.1(a);

          (b)  ANNUAL STATEMENTS -- within 100 days after the end of each fiscal
     year of the Company, duplicate copies of,

                (i) a consolidated balance sheet of the Company and its
          Consolidated Subsidiaries, as at the end of such year, and

               (ii) the related consolidated statements of income (or
          operations), changes in shareholders' equity and cash flows of the
          Company and its Subsidiaries, for such year,

     setting forth in each case in comparative form the figures for the previous
     fiscal year, all in reasonable detail, prepared in accordance with GAAP,
     and accompanied

                    (A)  by an opinion thereon of independent certified public
               accountants of recognized national standing, which opinion shall
               state that such financial statements present fairly, in all
               material respects, the financial position of the companies being
               reported upon and their results of operations and cash flows and
               have been prepared in conformity with GAAP, and that the
               examination of such accountants in connection with such financial
               statements has been made in accordance with generally accepted
               auditing standards, and that such audit provides a reasonable
               basis for such opinion in the circumstances, and

                    (B)  a certificate of such accountants stating that they
               have performed such audit and stating further whether, in
               performing such audit, anything came to their attention that
               caused them to believe that the Company failed to comply with
               terms, covenants, provisions or conditions of SECTIONS 10.3(p),
               10.4, 10.5, 10.6 or 10.7(j), insofar as said sections relate to
               accounting matters and, if they are aware that any such failure
               to comply then exists, specifying the nature and period of the
               existence thereof (it being understood that such accountants
               shall not be liable, directly or indirectly, for any failure to
               obtain knowledge of any Default or Event of Default unless such
               accountants should have obtained knowledge thereof in making an
               audit in accordance with generally accepted auditing standards or
               did not make such an audit),

     PROVIDED that the delivery within the time period specified above of the
     Company's Annual Report on Form 10-K for such fiscal year (together with
     the Company's annual report to shareholders, if any, prepared pursuant to
     Rule 14a-3 under the Exchange Act) prepared in accordance with the
     requirements therefor and filed with the Securities and Exchange
     Commission, together with the accountant's certificate described in clause
     (B) above, shall be deemed to satisfy the requirements of this SECTION
     7.1(b);

                                      -13-
<Page>

          (c)  SEC AND OTHER REPORTS -- promptly upon their becoming available,
     one copy of (i) each financial statement, report, notice or proxy statement
     sent by the Company or any Subsidiary to public securities holders
     generally, and (ii) each regular or periodic report, each registration
     statement (without exhibits except as expressly requested by such holder),
     and each prospectus and all amendments thereto filed by the Company or any
     Subsidiary with the Securities and Exchange Commission and of all press
     releases and other statements made available generally by the Company or
     any Subsidiary to the public concerning developments that are Material;
     PROVIDED, HOWEVER, that notwithstanding the foregoing, the Company shall
     not be required to provide copies of filings made by Asset Securitization
     Subsidiaries in respect of asset securitization transactions done in the
     ordinary course of business or copies of pricing supplements filed by the
     Company in the ordinary course of business in connection with the issuance
     of medium term notes by the Company, except, in each case, as requested by
     a holder;

          (d)  NOTICE OF DEFAULT OR EVENT OF DEFAULT -- promptly, and in any
     event within five days after a Responsible Officer obtains knowledge of any
     Default or Event of Default or that any Person has given any notice or
     taken any action with respect to a claimed default hereunder or that any
     Person has given any notice or taken any action with respect to a claimed
     default of the type referred to in SECTION 11(f), a written notice
     specifying the nature and period of existence thereof and what action the
     Company is taking or proposes to take with respect thereto;

          (e)  ERISA MATTERS -- promptly, and in any event within ten Business
     Days after a Responsible Officer obtains knowledge of any of the following,
     a written notice setting forth the nature thereof and the action, if any,
     that the Company or an ERISA Affiliate proposes to take with respect
     thereto:

                (i) with respect to any Plan, any reportable event, as defined
          in section 4043(c) of ERISA and the regulations thereunder, for which
          notice thereof has not been waived pursuant to such regulations as in
          effect on the date hereof; or

               (ii) the taking by the PBGC of steps to institute, or the
          threatening by the PBGC of the institution of, proceedings under
          section 4042 of ERISA for the termination of, or the appointment of a
          trustee to administer, any Plan, or the receipt by the Company or any
          ERISA Affiliate of a notice from a Multiemployer Plan that such action
          has been taken by the PBGC with respect to such Multiemployer Plan; or

              (iii) any event, transaction or condition that could result in
          the incurrence of any liability (other than contributions) by the
          Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
          the penalty or excise tax provisions of the Code relating to employee
          benefit plans, or in the imposition of any Lien on any of the rights,
          properties or assets of the Company or any ERISA Affiliate pursuant to
          Title I or IV of ERISA or such penalty or excise tax provisions, if
          such liability or Lien, taken together with any other such liabilities

                                      -14-
<Page>

          or Liens then existing, could reasonably be expected to have a
          Material Adverse Effect;

          (f)  NOTICES FROM GOVERNMENTAL AUTHORITY -- promptly, and in any event
     within 30 days of receipt thereof, copies of any notice to the Company or
     any Subsidiary from any federal or state Governmental Authority relating to
     any order, ruling, statute or other law or regulation that could reasonably
     be expected to have a Material Adverse Effect; and

          (g)  REQUESTED INFORMATION -- with reasonable promptness, such other
     data and information relating to the business, operations, affairs,
     financial condition, assets or properties of the Company or any of its
     Subsidiaries or relating to the ability of the Company to perform its
     obligations hereunder and under the Notes as from time to time may be
     reasonably requested by any such holder of Notes, including, without
     limitation, such information regarding the Company required to satisfy the
     requirements of 17 CFR Section 230.144A, as amended from time to time, in
     connection with any contemplated transfer of Notes.

     SECTION 7.2.   OFFICER'S CERTIFICATE. Each set of financial statements
delivered to a holder of Notes pursuant to SECTION 7.1(a) or SECTION 7.1(b)
hereof shall be accompanied by a certificate of a Senior Financial Officer
setting forth:

          (a)  COVENANT COMPLIANCE -- the information (including detailed
     calculations) required in order to establish whether the Company was in
     compliance with the requirements of SECTIONS 10.3(p), 10.4, 10.5, 10.6 and
     10.7(j) hereof, inclusive, during the quarterly or annual period covered by
     the statements then being furnished (including with respect to each such
     Section, where applicable, the calculations of the maximum or minimum
     amount, ratio or percentage, as the case may be, permissible under the
     terms of such Sections, and the calculation of the amount, ratio or
     percentage then in existence); and

          (b)  EVENT OF DEFAULT -- a statement that such officer has reviewed
     the relevant terms hereof and has made, or caused to be made, under his or
     her supervision, a review of the transactions and conditions of the Company
     and its Subsidiaries from the beginning of the quarterly or annual period
     covered by the statements then being furnished to the date of the
     certificate and that such review shall not have disclosed the existence
     during such period of any condition or event that constitutes a Default or
     an Event of Default or, if any such condition or event existed or exists
     (including, without limitation, any such event or condition resulting from
     the failure of the Company or any Subsidiary to comply with any
     Environmental Law), specifying the nature and period of existence thereof
     and what action the Company shall have taken or proposes to take with
     respect thereto.

                                      -15-
<Page>

     SECTION 7.3. INSPECTION. The Company shall permit the representatives of
each holder of Notes that is an Institutional Investor:

          (a)  NO DEFAULT -- if no Default or Event of Default then exists, at
     the expense of such holder and upon reasonable prior notice to the Company,
     to visit the principal executive office of the Company, to discuss the
     affairs, finances and accounts of the Company and its Subsidiaries with the
     Company's officers, and (with the consent of the Company, which consent
     will not be unreasonably withheld) its independent public accountants, and
     (with the consent of the Company, which consent will not be unreasonably
     withheld) to visit the other offices and properties of the Company and each
     Subsidiary, all at such reasonable times and as often as may be reasonably
     requested in writing; and

          (b)  DEFAULT -- if a Default or Event of Default then exists, at the
     expense of the Company, upon not less than one Business Day's prior notice
     to the Company to visit and inspect any of the offices or properties of the
     Company or any Subsidiary, to examine all their respective books of
     account, records, reports and other papers, to make copies and extracts
     therefrom, and to discuss their respective affairs, finances and accounts
     with their respective officers and independent public accountants (and by
     this provision the Company authorizes said accountants to discuss the
     affairs, finances and accounts of the Company and its Subsidiaries), all at
     such reasonable times (it being agreed that normal business hours shall be
     included as reasonable) and as often as may be reasonably requested.

SECTION 8.  PREPAYMENT OF THE NOTES.

     SECTION 8.1.   NO REQUIRED PREPAYMENTS. Except pursuant to SECTION 8.3 and
SECTION 12.1, t he Notes are not subject to required prepayments of principal.

     SECTION 8.2.   OPTIONAL PREPAYMENTS WITH MAKE-WHOLE AMOUNT. The Company
may, at its option, upon notice as provided below, prepay at any time all, or
from time to time any part of, the Notes, in an amount not less than 10% of the
aggregate principal amount of the Notes then outstanding in the case of a
partial prepayment, at 100% of the principal amount so prepaid, plus the
Make-Whole Amount determined for the prepayment date with respect to such
principal amount. The Company will give each holder of Notes written notice of
each optional prepayment under this SECTION 8.2 not less than 30 days and not
more than 60 days prior to the date fixed for such prepayment. Each such notice
shall specify such date, the aggregate principal amount of the Notes of each
Series to be prepaid on such date, the principal amount of each Note of each
Series held by such holder to be prepaid (determined in accordance with SECTION
8.4), and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid, and shall be accompanied by a certificate of a
Senior Financial Officer as to the estimated Make-Whole Amount due in connection
with such prepayment (calculated as if the date of such notice were the date of
the prepayment), setting forth the details of such computation. Two Business
Days prior to such prepayment, the Company shall deliver to each holder of Notes
a certificate of a Senior Financial Officer specifying the calculation of such
Make-Whole Amount as of the specified prepayment date.

                                      -16-
<Page>

     SECTION 8.3.   CHANGE OF CONTROL.

     (a)  NOTICE OF CHANGE OF CONTROL OR CONTROL EVENT. The Company will, within
five (5) Business Days after any Responsible Officer has knowledge of the
occurrence of any Restricted Change of Control, give written notice of such
Restricted Change of Control to each holder of Notes. Such notice shall contain
and constitute an offer to prepay Notes as described in subparagraph (b) of this
SECTION 8.3 and shall be accompanied by the certificate described in
subparagraph (e) of this SECTION 8.3.

     (b)  OFFER TO PREPAY NOTES. The offer to prepay Notes contemplated by
subparagraph (a) of this SECTION 8.3 shall be an offer to prepay, in accordance
with and subject to this SECTION 8.3, all, but not less than all, the Notes held
by each holder (in this case only, "HOLDER" in respect of any Note registered in
the name of a nominee for a disclosed beneficial owner shall mean such
beneficial owner) on a date specified in such offer (the "SECTION 8.3 PREPAYMENT
DATE"). Such date shall be not less than 30 days and not more than 45 days after
the date of such offer (if the Section 8.3 Prepayment Date shall not be
specified in such offer, the Section 8.3 Prepayment Date shall be the first
Business Day which is at least 30 days after the date of such offer).

     (c)  ACCEPTANCE. A holder of Notes may accept the offer to prepay made
pursuant to this SECTION 8.3 by causing a notice of such acceptance to be
delivered to the Company at least 10 days prior to the Section 8.3 Prepayment
Date. A failure by a holder of Notes to respond to an offer to prepay made
pursuant to this SECTION 8.3 shall be deemed to constitute an acceptance of such
offer by such holder.

     (d)  PREPAYMENT. Prepayment of the Notes to be prepaid pursuant to this
SECTION 8.3 shall be at 100% of the principal amount of such Notes, plus the
Modified Make-Whole Amount determined for the Section 8.3 Prepayment Date with
respect to such principal amount, together with interest on such Notes accrued
to the Section 8.3 Prepayment Date. Two Business Days preceding the Section 8.3
Prepayment Date, the Company shall deliver to each holder of Notes being prepaid
a statement showing the Modified Make-Whole Amount due in connection with such
prepayment and setting forth the details of the computation of such amount.

     (e)  OFFICER'S CERTIFICATE. Each offer to prepay the Notes pursuant to this
SECTION 8.3 shall be accompanied by a certificate, executed by a Senior
Financial Officer of the Company and dated the date of such offer, specifying:
(i) the Section 8.3 Prepayment Date; (ii) that such offer is made pursuant to
this SECTION 8.3; (iii) the principal amount of each Note offered to be prepaid
(which shall be 100% of the principal amount of each holder's Notes); (iv) the
estimated Modified Make-Whole Amount due in connection with such prepayment
(calculated as if the date of such notice were the date of the prepayment),
setting forth the details of such computation; (v) the interest that would be
due on each Note offered to be prepaid, accrued to the Section 8.3 Prepayment
Date; (vi) in reasonable detail, the nature and date of the Change of Control;
and (vii) in reasonable detail, evidence of the Ratings Decline and the facts
and circumstances in respect thereof.

                                      -17-
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     (f)  DEFINITIONS.

           (i) "CHANGE OF CONTROL" shall occur if at any time Cendant shall
     cease to own, directly or through wholly-owned subsidiaries of Cendant, 51%
     of the voting Capital Stock of the Company free and clear of any direct or
     indirect Liens.

          (ii) "SECTION 8.3 RATINGS DECLINE" means a decrease in the rating of
     any outstanding publicly traded senior, unsecured long-term debt of the
     Company by any Section 8.3 Rating Agency if, after giving effect to such
     downgrade, the long-term debt which is the subject of such rating has a
     rating less than "BBB-" by S&P, less than "Baa3" by Moody's or less than
     "BBB-" by Fitch Ratings, Inc.

         (iii) "RESTRICTED CHANGE OF CONTROL" means the occurrence of a Change
     of Control and concurrently therewith or within 30 days thereafter, the
     occurrence of a Section 8.3 Ratings Decline, PROVIDED, HOWEVER, that such
     30-day period shall be extended as long as the rating of the long-term debt
     is under publicly announced consideration by a Section 8.3 Rating Agency
     (i) for possible downgrading or (ii) where the rating is under publicly
     announced consideration, but where no direction of grading is initially
     indicated by the Section 8.3 Rating Agency, including classification such
     as "Credit Watch Developing" where such other similar classification used
     by the Section 8.3 Rating Agencies.

     SECTION 8.4.   ALLOCATION OF PARTIAL PREPAYMENTS. In the case of each
partial prepayment of Notes pursuant to SECTION 8.2, the principal amount of the
Notes to be prepaid shall be allocated among all of the Notes at the time
outstanding in proportion, as nearly as practicable, to the respective unpaid
principal amounts thereof not theretofore called for prepayment and without
distinction as to Series.

     SECTION 8.5.   MATURITY; SURRENDER, ETC. In the case of each prepayment of
Notes pursuant to this SECTION 8, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such date
and the applicable Make-Whole Amount or Modified Make-Whole Amount, if any. From
and after such date, unless the Company shall fail to pay such principal amount
when so due and payable, together with the interest and Make-Whole Amount or
Modified Make-Whole Amount, if any, as aforesaid, interest on such principal
amount shall cease to accrue. Any Note paid or prepaid in full shall be
surrendered to the Company and cancelled and shall not be reissued, and no Note
shall be issued in lieu of any prepaid principal amount of any Note.

     SECTION 8.6.   PURCHASE OF NOTES. The Company will not and will not permit
any of its Affiliates to purchase, redeem, prepay or otherwise acquire, directly
or indirectly, any of the outstanding Notes except upon the payment or
prepayment of the Notes in accordance with the terms of this Agreement and the
Notes. The Company will promptly cancel all Notes acquired by it or any of its
Affiliates pursuant to any payment, prepayment or purchase of Notes pursuant to
any provision of this Agreement and no Notes may be issued in substitution or
exchange for any such Notes.

                                      -18-
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     SECTION 8.7.   MAKE-WHOLE AMOUNT AND MODIFIED MAKE-WHOLE AMOUNT. The term
"MAKE-WHOLE AMOUNT" means, with respect to any Note, an amount equal to the
excess, if any, of the Discounted Value of the Remaining Scheduled Payments with
respect to the Called Principal of such Note over the amount of such Called
Principal, PROVIDED that the Make-Whole Amount may in no event be less than
zero. The "MODIFIED MAKE-WHOLE AMOUNT" shall be determined in the same manner as
the "MAKE-WHOLE AMOUNT" except the reference to "0.50%" contained in the
definition of "REINVESTMENT YIELD" shall be deemed to be "1.00%" in the case of
the determination of Modified Make-Whole Amount. The Modified Make-Whole Amount
shall only be used in connection with a prepayment under SECTION 8.3 and shall
in no event be less than zero. For the purposes of determining the Make-Whole
Amount and Modified Make-Whole Amount, the following terms have the following
meanings:

          "CALLED PRINCIPAL" means, with respect to any Note, the principal of
     such Note that is to be prepaid pursuant to SECTION 8.2 or 8.3 or has
     become or is declared to be immediately due and payable pursuant to SECTION
     12.1, as the context requires.

          "DISCOUNTED VALUE" means, with respect to the Called Principal of any
     Note, the amount obtained by discounting all Remaining Scheduled Payments
     with respect to such Called Principal from their respective scheduled due
     dates to the Settlement Date with respect to such Called Principal, in
     accordance with accepted financial practice and at a discount factor
     (applied on the same periodic basis as that on which interest on the Notes
     is payable) equal to the Reinvestment Yield with respect to such Called
     Principal.

          "REINVESTMENT YIELD" means, with respect to the Called Principal of
     any Note, 0.50% (or 1.00% in the case of any determination of the Modified
     Make-Whole Amount) over the yield to maturity implied by (a) the yields
     reported, as of 10:00 A.M. (New York City time) on the second Business Day
     preceding the Settlement Date with respect to such Called Principal, on the
     display designated as "Page PX1" of the Bloomberg Financial Markets
     Services Screen (or, if not available, any other national recognized
     trading screen reporting on-line intraday trading in the U.S. Treasury
     securities) for actively traded on-the-run U.S. Treasury securities having
     a maturity equal to the Remaining Average Life of such Called Principal as
     of such Settlement Date, or (b) if such yields are not reported as of such
     time or the yields reported as of such time are not ascertainable, the
     Treasury Constant Maturity Series Yields reported, for the latest day for
     which such yields have been so reported as of the second Business Day
     preceding the Settlement Date with respect to such Called Principal, in
     Federal Reserve Statistical Release H.15 (519) (or any comparable successor
     publication) for actively traded on-the-run U.S. Treasury securities having
     a constant maturity equal to the Remaining Average Life of such Called
     Principal as of such Settlement Date. Such implied yield will be
     determined, if necessary, by (i) converting U.S. Treasury bill quotations
     to bond-equivalent yields in accordance with accepted financial practice
     and (ii) interpolating linearly between (1) the actively traded on-the-run
     U.S. Treasury security with the maturity closest to and greater than the
     Remaining Average Life and (2) the actively traded on-the-run U.S. Treasury
     security with the maturity closest to and less than the Remaining Average
     Life.

                                      -19-
<Page>

          "REMAINING AVERAGE LIFE" means, with respect to any Called Principal,
     the number of years (calculated to the nearest one-twelfth year) obtained
     by dividing (i) such Called Principal into (ii) the sum of the products
     obtained by multiplying (a) the principal component of each Remaining
     Scheduled Payment with respect to such Called Principal by (b) the number
     of years (calculated to the nearest one-twelfth year) that will elapse
     between the Settlement Date with respect to such Called Principal and the
     scheduled due date of such Remaining Scheduled Payment.

          "REMAINING SCHEDULED PAYMENTS" means, with respect to the Called
     Principal of any Note, all payments of such Called Principal and interest
     thereon that would be due after the Settlement Date with respect to such
     Called Principal if no payment of such Called Principal were made prior to
     its scheduled due date, PROVIDED that if such Settlement Date is not a date
     on which interest payments are due to be made under the terms of the Notes,
     then the amount of the next succeeding scheduled interest payment will be
     reduced by the amount of interest accrued to such Settlement Date and
     required to be paid on such Settlement Date pursuant to SECTION 8.2,
     SECTION 8.3 or SECTION 12.1.

          "SETTLEMENT DATE" means, with respect to the Called Principal of any
     Note, the date on which such Called Principal is to be prepaid pursuant to
     SECTION 8.2 or SECTION 8.3 or has become or is declared to be immediately
     due and payable pursuant to SECTION 12.1, as the context requires.

SECTION 9.  AFFIRMATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

     SECTION 9.1.   COMPLIANCE WITH LAW. The Company will and will cause each of
its Subsidiaries to comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation,
Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that
non-compliance with such laws, ordinances or governmental rules or regulations
or failures to obtain or maintain in effect such licenses, certificates,
permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     SECTION 9.2.   INSURANCE. The Company will and will cause each of its
Subsidiaries to maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of
entities of established reputations engaged in the same or a similar business
and similarly situated.

     SECTION 9.3.   MAINTENANCE OF PROPERTIES. The Company will and will cause
each of its Subsidiaries to maintain and keep, or cause to be maintained and
kept, their respective properties

                                      -20-
<Page>

which are Material to its business in good repair, working order and condition
(other than ordinary wear and tear) consistent with companies of established
reputation and comparable size.

     SECTION 9.4.   PAYMENT OF TAXES AND CLAIMS. The Company will and will cause
each of its Subsidiaries to file all tax returns required to be filed in any
jurisdiction and to pay and discharge all taxes shown to be due and payable on
such returns and all other taxes, assessments, governmental charges, or levies
imposed on them or any of their properties, assets, income or franchises, to the
extent such taxes and assessments have become due and payable and before they
have become delinquent and all claims for which sums have become due and payable
that have or might become a Lien on properties or assets of the Company or any
Subsidiary, PROVIDED that neither the Company nor any Subsidiary need pay any
such tax or assessment or claims if (i) the amount, applicability or validity
thereof is contested by the Company or such Subsidiary on a timely basis in good
faith and in appropriate proceedings, and the Company or a Subsidiary has
established adequate reserves therefor in accordance with GAAP on the books of
the Company or such Subsidiary or (ii) the nonpayment of all such taxes and
assessments in the aggregate could not reasonably be expected to have a Material
Adverse Effect.

     SECTION 9.5.   CORPORATE EXISTENCE, ETC. The Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to
SECTION 10.2, the Company will at all times preserve and keep in full force and
effect the corporate existence of each of its Subsidiaries (unless merged into
the Company or a Subsidiary) and all rights and franchises of the Company and
its Subsidiaries unless, in the good faith judgment of the Company, the
termination of or failure to preserve and keep in full force and effect such
corporate existence, right or franchise could not, individually or in the
aggregate, have a Material Adverse Effect.

     SECTION 9.6.   NOTES TO RANK PARI PASSU. The Notes and all other
obligations under this Agreement of the Company are and at all times shall
remain direct obligations of the Company ranking PARI PASSU as against the
assets of the Company with all other Notes from time to time issued and
outstanding hereunder without any preference among themselves and PARI PASSU
with all other present and future unsecured Debt (actual or contingent) of the
Company which is not expressed to be subordinate or junior in rank to any other
unsecured Debt (actual or contingent) of the Company.

SECTION 10. NEGATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

     SECTION 10.1.  TRANSACTIONS WITH AFFILIATES. The Company will not and will
not permit any Subsidiary to enter into directly or indirectly any transaction
or Material group of related transactions (including without limitation the
purchase, lease, sale or exchange of properties of any kind or the rendering of
any service) with any Affiliate (other than the Company or another Subsidiary),
except upon fair and reasonable terms no less favorable to the Company or such
Subsidiary than would be obtainable in a comparable arm's-length transaction
with a Person not an Affiliate of the Company.

                                      -21-
<Page>

     SECTION 10.2.  MERGER, CONSOLIDATION, SALE OF ASSETS ETC. (a) The Company
shall not, and shall not permit any Material Subsidiary to, merge into or
consolidate with or merge with any other corporation or sell, convey, transfer
or lease substantially all of the assets of the Company and its Subsidiaries
taken as a whole in a single transaction or series of transactions to any Person
unless:

           (i) in the case of the Company, the successor formed by such
     consolidation or the survivor of such merger or the Person that acquires by
     sale, conveyance, transfer or lease substantially all of the assets of the
     Company as an entirety, as the case may be, shall be a solvent corporation
     organized and existing under the laws of the United States or any state
     thereof (including the District of Columbia), and, if the Company is not
     such corporation, (A) such corporation shall have executed and delivered to
     each holder of any Notes its assumption of the due and punctual performance
     and observance of each covenant and condition of this Agreement, the Other
     Agreements and the Notes and (B) shall have caused to be delivered to each
     holder of any Notes an opinion of nationally recognized independent
     counsel, or other independent counsel reasonably satisfactory to the
     Required Holders, to the effect that all agreements or instruments
     effecting such assumption are enforceable in accordance with their terms
     and comply with the terms hereof;

          (ii) in the case of any Material Subsidiary, the successor formed by
     such consolidation or the survivor of such merger or the Person that
     acquires by sale, conveyance, transfer or lease substantially all of the
     assets of the Subsidiary as an entirety, as the case may be, shall either
     be the Company (in which case, the remaining provisions of this SECTION
     10.2 shall be satisfied) or any one or more other Subsidiaries; and

         (iii) immediately after giving effect to such transaction, no Default
     or Event of Default shall have occurred and be continuing.

No such sale, conveyance, transfer or lease of substantially all of the assets
of the Company shall have the effect of releasing the Company or any successor
corporation that shall theretofore have become such in the manner prescribed in
this SECTION 10.2 from its liability under this Agreement or the Notes. It is
understood that, for the purposes of clarity, this SECTION 10.2 does not
prohibit or limit transactions in the ordinary course of business of the Company
or any Subsidiary including, but not limited to, asset securitization
transactions or similar transactions entered into in the ordinary course of
business.

     (b)  The Company shall not at any time prior to February 4, 2003 permit to
occur a Significant Asset Sale Triggering Event if the Company is subject to a
covenant restricting a Significant Asset Sale Triggering Event pursuant to any
agreement or instrument other than the Bank Agreement and the Medium Term Notes;
PROVIDED, HOWEVER, that on and subsequent to February 4, 2003, the provisions of
this SECTION 10.2(b) shall, without any further action by any Person, be deemed
to be terminated from and after the first date on or after February 4, 2003 on
which the Company is not subject (and has not agreed to become subject, at some
future date,

                                      -22-
<Page>

upon a contingency or otherwise) to one or more covenants restricting a
Significant Asset Sale Triggering Event.

     SECTION 10.3.  LIMITATIONS ON LIENS. The Company will not, and will not
permit any Material Subsidiary that principally transacts business in the United
States to, directly or indirectly create, incur, assume or permit to exist (upon
the happening of a contingency or otherwise) any Lien on or with respect to any
property or asset (including without limitation, any document or instrument in
respect of goods or accounts receivable) of the Company or any such Material
Subsidiary, whether now owned or held or hereafter acquired, or upon any income
or profits therefrom (unless it makes, or causes to be made, effective provision
whereby the Notes will be equally and ratably secured with any and all other
obligations thereby secured, such security to be pursuant to an agreement
reasonably satisfactory to the Required Holders and, in any such case, the Notes
shall have the benefit, to the fullest extent that, and with such priority as,
the holders of the Notes may be entitled under applicable law, of an equitable
Lien on such property), 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 and Revolving Liens upon real and/or personal property,
     which property was acquired after the date of this Agreement (by purchase,
     construction or otherwise) by the Company or any of its Material
     Subsidiaries, each of which Liens or Revolving Liens existed on such
     property before the time of its acquisition and was not created in
     anticipation thereof and any renewal, extension or modification of such
     Liens or Revolving Liens so long as the aggregate commitment secured is not
     increased and PROVIDED that no such Lien or Revolving Liens shall extend to
     or cover any property of the Company or a Material Subsidiary other than
     the respective property so acquired and improvements thereon;

          (d)  Liens and Revolving Liens upon real and/or personal property of a
     Person, who in connection with the acquisition by the Company or a Material
     Subsidiary of the

                                      -23-
<Page>

     stock or equity of such Person becomes a Material Subsidiary, each of which
     Liens or Revolving Liens existed before the time of the acquisition of such
     Person and was not created in anticipation thereof and any renewal,
     extension or modification of such Lien or Revolving Lien so long as the
     aggregate commitment secured is not increased and PROVIDED that no such
     Lien or Revolving Lien shall extend to or cover any property of the Company
     or a Material Subsidiary other than the Material Subsidiary and its
     acquired Affiliates so acquired;

          (e)  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);

          (f)  Liens securing Debt of any Material Subsidiary to the Company;

          (g)  Liens securing debt and related obligations, or securing
     interests in asset sale transactions which could alternatively be
     characterized as debt, or securing obligations to pay rent incurred in
     connection with asset securitization transactions, which debt or
     securitized assets are not reported on the Company's consolidated balance
     sheet or that of the Company's Material Subsidiaries, and which Liens cover
     only the assets securitized in the applicable asset securitization
     transaction or Related Assets and Liens on the stock or equity of any
     special purpose vehicle the sole purpose of which is to effectuate such
     asset securitization transaction;

          (h)  Liens securing Debt and related obligations of an Asset
     Securitization Subsidiary in respect of one or more asset securitization
     transactions, which Debt or securitized assets are reported on the
     Company's consolidated balance sheet or that of the Company's Material
     Subsidiaries, and which Liens cover only the assets securitized in the
     applicable asset securitization transaction or Related Assets, and, if such
     Asset Securitization Subsidiary is of the type described in clause (i) of
     the definition of "Asset Securitization Subsidiary", Liens on the stock or
     other equity interests of such Asset Securitization Subsidiary;

          (i)  Liens covering only the property or assets of any Special Purpose
     Vehicle Subsidiary and securing only such Debt of such Special Purpose
     Vehicle Subsidiary as is permitted under SECTION 10.7(e) hereof;

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

          (k)  other Liens incidental to the conduct of the business of the
     Company or its Subsidiaries or the ownership of their property and other
     assets, which do not secure any Debt 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

                                      -24-
<Page>

     from the value of its property or other assets of the Company or its
     Subsidiaries or materially impair the use thereof in the operation of their
     businesses;

          (l)  Liens existing on the Closing date and securing the Debt of the
     Company or any Material Subsidiary described in SCHEDULE 5.15 hereto and
     any extensions, renewals or replacements thereof, PROVIDED that any such
     extensions, renewals or replacements in respect of Liens which are not
     Revolving Liens shall not extend to any property previously unencumbered by
     the related Lien and any and all extensions, renewals or replacements
     including Debt secured by Revolving Liens shall be without increase in the
     aggregate commitment secured;

          (m)  Liens incurred in the ordinary course of business to secure Debt
     utilized to fund net investments in leases and leased vehicles and
     equipment, equity advances on homes and mortgages and other assets under
     management and mortgage programs;

          (n)  Liens incurred in the ordinary course of business on mortgages
     and related assets securing obligations to the extent such obligations are
     permitted by SECTION 10.7(g) and (h);

          (o)  Liens securing the obligations of the Company hereunder and under
     the Notes created under SECTION 10.3 of this Agreement and the Other
     Agreements; and

          (p)  Liens to secure Debt not otherwise permitted by any of the
     clauses (a) through (o), PROVIDED that (i) the aggregate amount of Debt
     secured by such Liens plus (but without duplication) (ii) the aggregate
     amount of Debt of Material Subsidiaries permitted pursuant to the
     provisions of SECTION 10.7(j) shall not at any time exceed 15% of
     Consolidated Net Worth.

     SECTION 10.4   CONSOLIDATED NET WORTH. The Company shall not permit
Consolidated Net Worth on the last day of any fiscal quarter to be less than the
sum of (i) $1,250,000,000 PLUS (ii) 25% of Consolidated Net Income, if positive,
for each fiscal quarter after December 31, 2001.

     SECTION 10.5   RATIO OF CONSOLIDATED TOTAL DEBT TO CONSOLIDATED NET WORTH.
The Company will not permit, at any time, Consolidated Total Debt less Cash
Equivalents (owned by the Company or any of its Subsidiaries and free of Liens
(other than Liens securing Debt)) to exceed eight (8) times Consolidated Net
Worth.

     SECTION 10.6.  LIMITATION ON RESTRICTED PAYMENTS. The Company will not make
any Restricted Payments, if at the time thereof and immediately after giving
effect to such Restricted Payment, (i) the Consolidated Total Debt exceeds six
and one-half (6.5) times Consolidated Adjusted Net Worth or (ii) any Default or
Event of Default exists.

     SECTION 10.7.  LIMITATION ON SUBSIDIARY DEBT. The Company will not permit
any Material Subsidiary that principally transacts business in the United States
to create, incur, assume, suffer to exist or otherwise become liable in respect
of any Debt (including, but without limitation,

                                      -25-
<Page>

Debt of the type described in clause (ii) of the definition of the term "DEBT"
contained in Schedule B) except:

          (a)  Debt owing by any Material Subsidiary to the Company or any other
     Subsidiary;

          (b)  Debt in existence on March 31, 2002, described on SCHEDULE 5.15
     hereto, together with any extensions, renewals or replacements thereof,
     but, in each such case, only to the extent there is no increase in the
     principal amount being extended, renewed or replaced;

          (c)  Debt of any Material Subsidiary of the Company issued and
     outstanding prior to the date on which such Subsidiary became a Subsidiary
     of the Company (other than Debt issued in connection with, or in
     anticipation of, such Subsidiary becoming a Subsidiary of the Company) and
     any extension, renewal or replacement of such debt up to the principal
     amount thereof at the time of such acquisition; PROVIDED that immediately
     after giving effect to such Person becoming a Subsidiary of the Company, no
     Default or Event of Default shall occur or then be continuing;

          (d)  purchase money Debt (including Capital Leases) to the extent
     permitted under SECTION 10.3(b);

          (e)  Debt 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 Debt has recourse,
     if any, solely to the assets of such Special Purpose Vehicle Subsidiary;

          (f)  Debt of any Asset Securitization Subsidiary incurred solely to
     finance asset securitization transactions as long as (i) such Debt is
     unsecured or is secured solely as permitted by SECTION 10.3(h), and (ii)
     the lender (and any other party) in respect of such Debt 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 Related Assets 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;

          (g)  Debt (other than Debt of Asset Securitization Subsidiaries
     incurred to finance asset securitization transactions permitted by this
     Agreement) consisting of the obligation 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 Debt does not exceed $900,000,000;

          (h)  any Debt of Material Subsidiaries engaged in mortgage servicing
     in an aggregate amount not to exceed the lesser of (i) $500,000,000 or (ii)
     25% of all unencumbered mortgage servicing assets of Material Subsidiaries,
     which Debt is secured

                                      -26-
<Page>

     by mortgage servicing assets; PROVIDED that the proceeds of any such Debt
     shall be used to repay Senior Debt;

          (i)  deposits raised in the ordinary course of the banking business of
     Wright Express Financial Services Corporation ("WRIGHT EXPRESS") that
     constitute Debt and any discount with, or borrowing from, any Federal
     Reserve Bank or Federal Home Loan Bank by Wright Express in the ordinary
     course of the banking business of Wright Express; and

          (j)  other Debt of Material Subsidiaries not otherwise permitted by
     any of the clauses (a) through (i), PROVIDED, that (i) the aggregate amount
     of Debt permitted by this SECTION 10.7(j) plus (but without duplication)
     (ii) the aggregate amount of Debt secured by Liens permitted by SECTION
     10.3(p) shall not at any time exceed 15% of Consolidated Net Worth.

SECTION 11. EVENTS OF DEFAULT.

     An "EVENT OF DEFAULT" shall exist if any of the following conditions or
events shall occur and be continuing:

          (a)  the Company defaults in the payment of any principal or
     Make-Whole Amount or Modified Make-Whole Amount, if any, on any Note when
     the same becomes due and payable, whether at maturity or at a date fixed
     for prepayment or by declaration or otherwise; or

          (b)  the Company defaults in the payment of any interest on any Note
     for more than five Business Days after the same becomes due and payable; or

          (c)  the Company defaults in the performance of or compliance with any
     term contained in SECTIONS 10.1 THROUGH 10.7, or

          (d)  the Company defaults in the performance of or compliance with any
     term contained herein (other than those referred to in paragraphs (a), (b)
     and (c) of this SECTION 11) and such default is not remedied within 30 days
     after the earlier of (i) a Responsible Officer obtaining actual knowledge
     of such default and (ii) the Company receiving written notice of such
     default from any holder of a Note (any such written notice to be identified
     as a "NOTICE OF DEFAULT" and to refer specifically to this paragraph (d) of
     SECTION 11); or

          (e)  any representation or warranty made in writing by or on behalf of
     the Company or by any officer of the Company in this Agreement or in any
     writing furnished in connection with the transactions contemplated hereby
     proves to have been false or incorrect in any material respect on the date
     as of which made; or

          (f)  (i) the Company or any Subsidiary is in default (as principal or
     as guarantor or other surety) in the payment of any principal of or premium
     or make-whole

                                      -27-
<Page>

     amount or interest on any Debt that is outstanding in an aggregate
     principal amount of at least $25,000,000 (or its equivalent in any other
     currency) beyond any period of grace provided with respect thereto, or (ii)
     the Company or any Subsidiary is in default in the performance of or
     compliance with any term of any evidence of any Debt in an aggregate
     outstanding principal amount of at least $25,000,000 (or its equivalent in
     any other currency) or of any mortgage, indenture or other agreement
     relating thereto or any other condition exists, and as a consequence of
     such default or condition such Debt has become, or has been declared, due
     and payable before its stated maturity or before its regularly scheduled
     dates of payment, or (iii) as a consequence of the occurrence or
     continuation of any event or condition (other than the passage of time or
     the right of the holder of Debt to convert such Debt into equity
     interests), the Company or any Subsidiary has become obligated to purchase
     or repay Debt before its regular maturity or before its regularly scheduled
     dates of payment in an aggregate outstanding principal amount of at least
     $25,000,000 (or its equivalent in any other currency); PROVIDED that clause
     (iii) shall not apply to secured Debt that becomes due as a result of a
     voluntary sale of the property or assets securing such Debt so long as such
     Debt is satisfied in full substantially concurrently with such sale (and,
     in any event, within 30 days after such sale) and PROVIDED, FURTHER, that
     clauses (ii) and (iii) shall not apply to any Debt of any Subsidiary issued
     and outstanding prior to the date such Subsidiary became a Subsidiary of
     the Company (other than Debt issued in connection with, or in anticipation
     of, such Subsidiary becoming a Subsidiary of the Company) if such default
     or circumstance arises solely as a result of a "change of control"
     provision applicable to such Debt which becomes operative as a result of
     the acquisition of such Subsidiary by the Company or any of its
     Subsidiaries so long as such Debt is satisfied in full substantially
     concurrently with such "change of control" (and, in any event, within 30
     days after such "change of control"); or

          (g)  the Company or any Material Subsidiary (i) is generally not
     paying, or admits in writing its inability to pay, its debts as they become
     due, (ii) files, or consents by answer or otherwise to the filing against
     it of, a petition for relief or reorganization or arrangement or any other
     petition in bankruptcy, for liquidation or to take advantage of any
     bankruptcy, insolvency, reorganization, moratorium or other similar law of
     any jurisdiction, (iii) makes an assignment for the benefit of its
     creditors, (iv) consents to the appointment of a custodian, receiver,
     trustee or other officer with similar powers with respect to it or with
     respect to any substantial part of its property, (v) is adjudicated as
     insolvent or to be liquidated, or (vi) takes corporate action for the
     purpose of any of the foregoing; or

          (h)  a Governmental Authority of competent jurisdiction enters an
     order appointing, without consent by the Company or any of its Material
     Subsidiaries, a custodian, receiver, trustee or other officer with similar
     powers with respect to it or with respect to any substantial part of its
     property, or constituting an order for relief or approving a petition for
     relief or reorganization or any other petition in bankruptcy or for
     liquidation or to take advantage of any bankruptcy or insolvency law of any
     jurisdiction, or ordering the dissolution, winding-up or liquidation of the
     Company or any of its Material Subsidiaries, or any such petition shall be
     filed against the Company or any of its

                                      -28-
<Page>

     Material Subsidiaries and such petition shall not be dismissed within 60
     days; or

          (i)  a final judgment or judgments for the payment of money
     aggregating in excess of $25,000,000 (or its equivalent in any other
     currency) are rendered against one or more of the Company and its
     Subsidiaries and which judgments are not, within 60 days after entry
     thereof, bonded, discharged or stayed pending appeal, or are not discharged
     within 60 days after the expiration of such stay; or

          (j)  if (i) any Plan shall fail to satisfy the minimum funding
     standards of ERISA or the Code for any plan year or part thereof or a
     waiver of such standards or extension of any amortization period is sought
     or granted under section 412 of the Code, (ii) a notice of intent to
     terminate any Plan shall have been or is reasonably expected to be filed
     with the PBGC or the PBGC shall have instituted proceedings under ERISA
     section 4042 to terminate or appoint a trustee to administer any Plan or
     the PBGC shall have notified the Company or any ERISA Affiliate that a Plan
     may become a subject of any such proceedings, (iii) the aggregate "amount
     of unfunded benefit liabilities" (within the meaning of section 4001(a)(18)
     of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
     shall exceed $90,000,000, (iv) the Company or any ERISA Affiliate shall
     have incurred or is reasonably expected to incur any liability pursuant to
     Title I or IV of ERISA or the penalty or excise tax provisions of the Code
     relating to employee benefit plans, (v) the Company or any ERISA Affiliate
     withdraws from any Multiemployer Plan, or (vi) the Company or any
     Subsidiary establishes or amends any employee welfare benefit plan that
     provides post-employment welfare benefits in a manner that would increase
     the liability of the Company or any Subsidiary thereunder; and any such
     event or events described in clauses (i) through (vi) above, either
     individually or together with any other such event or events, could
     reasonably be expected to have a Material Adverse Effect.

As used in SECTION 11(j), the terms "employee benefit plan" and "employee
welfare benefit plan" shall have the respective meanings assigned to such terms
in section 3 of ERISA.

SECTION 12. REMEDIES ON DEFAULT, ETC.

     SECTION 12.1.  ACCELERATION. (a) If an Event of Default with respect to the
Company described in paragraph (g) or (h) of SECTION 11 (other than an Event of
Default described in clause (i) of paragraph (g) or described in clause (vi) of
paragraph (g) by virtue of the fact that such clause encompasses clause (i) of
paragraph (g)) has occurred, all the Notes then outstanding shall automatically
become immediately due and payable.

     (b)  If any other Event of Default has occurred and is continuing, the
Required Holders may at any time at its or their option, by notice or notices to
the Company, declare all the Notes then outstanding to be immediately due and
payable.

     (c)  If any Event of Default described in paragraph (a) or (b) of SECTION
11 has occurred and is continuing, any holder or holders of Notes at the time
outstanding affected by such Event

                                      -29-
<Page>

of Default may at any time, at its or their option, by notice or notices to the
Company, declare all the Notes held by it or them to be immediately due and
payable.

     Upon any Notes becoming due and payable under this SECTION 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest
thereon and (y) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment, demand,
protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the Company
(except as herein specifically provided for), and that the provision for payment
of a Make-Whole Amount by the Company in the event that the Notes are prepaid or
are accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

     SECTION 12.2.  OTHER REMEDIES. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or
have been declared immediately due and payable under SECTION 12.1, the holder of
any Note at the time outstanding may proceed to protect and enforce the rights
of such holder by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained
herein or in any Note, or for an injunction against a violation of any of the
terms hereof or thereof, or in aid of the exercise of any power granted hereby
or thereby or by law or otherwise.

     SECTION 12.3.  RESCISSION. At any time after any Notes have been declared
due and payable pursuant to clause (b) or (c) of SECTION 12.1, the Required
Holders, by written notice to the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue
interest on the Notes, all principal of and Make-Whole Amount or Modified
Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid
other than by reason of such declaration, and all interest on such overdue
principal and Make-Whole Amount or Modified Make-Whole Amount, if any, and (to
the extent permitted by applicable law) any overdue interest in respect of the
Notes, at the Default Rate, (b) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to SECTION 17, and (c)
no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this SECTION
12.3 will extend to or affect any subsequent Event of Default or Default or
impair any right consequent thereon or will be permitted at any time more than
90 days after all such Events of Default and Defaults are cured.

     SECTION 12.4.  NO WAIVERS OR ELECTION OF REMEDIES, EXPENSES, ETC. No course
of dealing and no delay on the part of any holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice
such holder's rights, powers or remedies. No right, power or remedy conferred by
this Agreement or by any Note upon any holder thereof shall be exclusive of any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the
obligations of the Company under SECTION 15, the Company will pay to the holder
of each Note on demand such further amount as shall be sufficient to cover all
costs and expenses of such holder incurred

                                      -30-
<Page>

in any enforcement or collection under this SECTION 12, including, without
limitation, reasonable attorneys' fees, expenses and disbursements.

SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

     SECTION 13.1.  REGISTRATION OF NOTES. The Company shall keep at its
principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes,
each transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered
shall be deemed and treated as the owner and holder thereof for all purposes
hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct
copy of the names and addresses of all registered holders of Notes.

     SECTION 13.2.  TRANSFER AND EXCHANGE OF NOTES. Upon surrender of any Note
at the principal executive office of the Company for registration of transfer or
exchange (and in the case of a surrender for registration of transfer, duly
endorsed or accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or his attorney duly authorized in writing and
accompanied by the address for notices of each transferee of such Note or part
thereof), the Company, within five (5) Business Days, shall execute and deliver,
at the Company's expense (except as provided below), one or more new Notes (as
requested by the holder thereof) in exchange therefor, in an aggregate principal
amount equal to the unpaid principal amount of the surrendered Note. Each such
new Note shall be payable to such Person as such holder may request and shall be
substantially in the form of Exhibit 1. Each such new Note shall be dated and
bear interest from the date to which interest shall have been paid on the
surrendered Note or dated the date of the surrendered Note if no interest shall
have been paid thereon. The Company may require payment of a sum sufficient to
cover any stamp tax or governmental charge imposed in respect of any such
transfer of Notes. Notes shall not be transferred in denominations of less than
$250,000, PROVIDED that if necessary to enable the registration of transfer by a
holder of its entire holding of Notes, one Note may be in a denomination of less
than $250,000. Any transferee, by its acceptance of a Note registered in its
name (or the name of its nominee), shall be deemed to have made the
representation set forth in SECTION 6.2.

     SECTION 13.3.  REPLACEMENT OF NOTES. Upon receipt by the Company of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

          (a)  in the case of loss, theft or destruction, of indemnity
     reasonably satisfactory to it (PROVIDED that if the holder of such Note is,
     or is a nominee for, an original Purchaser or another holder of a Note with
     a minimum net worth of at least $25,000,000, such Person's own unsecured
     agreement of indemnity shall be deemed to be satisfactory), or

                                      -31-
<Page>

          (b)  in the case of mutilation, upon surrender and cancellation
     thereof,

the Company at its own expense, within ten (10) Business Days, shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date
to which interest shall have been paid on such lost, stolen, destroyed or
mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

SECTION 14. PAYMENTS ON NOTES.

     SECTION 14.1.  PLACE OF PAYMENT. Subject to SECTION 14.2, payments of
principal, Make-Whole Amount or Modified Make-Whole Amount, if any, and interest
becoming due and payable on the Notes shall be made in New York, New York at the
principal office of Citibank N.A. in such jurisdiction. The Company may at any
time, by notice to each holder of a Note, change the place of payment of the
Notes so long as such place of payment shall be either the principal office of
the Company in such jurisdiction or the principal office of a bank or trust
company in such jurisdiction.

     SECTION 14.2.  HOME OFFICE PAYMENT. So long as you or your nominee shall be
the holder of any Note, and notwithstanding anything contained in SECTION 14.1
or in such Note to the contrary, the Company will pay all sums becoming due on
such Note for principal, Make-Whole Amount, if any, and interest by the method
and at the address specified for such purpose below your name in SCHEDULE A, or
by such other method or at such other address as you shall have from time to
time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon,
except that upon written request of the Company made concurrently with or
reasonably promptly after payment or prepayment in full of any Note, you shall
surrender such Note for cancellation, reasonably promptly after any such
request, to the Company at its principal executive office or at the place of
payment most recently designated by the Company pursuant to SECTION 14.1. Prior
to any sale or other disposition of any Note held by you or your nominee you
will, at your election, either endorse thereon the amount of principal paid
thereon and the last date to which interest has been paid thereon or surrender
such Note to the Company in exchange for a new Note or Notes pursuant to SECTION
13.2. The Company will afford the benefits of this SECTION 14.2 to any
Institutional Investor that is the direct or indirect transferee of any Note
purchased by you under this Agreement and that has made the same agreement
relating to such Note as you have made in this SECTION 14.2.

SECTION 15. EXPENSES, ETC.

     SECTION 15.1.  TRANSACTION EXPENSES. Whether or not the transactions
contemplated hereby are consummated, the Company will pay all costs and expenses
(including reasonable attorneys' fees of one special counsel and, if reasonably
required, local or other counsel) incurred by you and each Other Purchaser or
holder of a Note in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement or the
Notes (whether or not such amendment, waiver or consent becomes effective),
including, without limitation: (a) the costs and expenses incurred in enforcing
or defending (or determining whether or how to enforce or defend) any rights
under this Agreement or the Notes or in

                                      -32-
<Page>

responding to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement or the Notes, or by reason of
being a holder of any Note, (b) the costs and expenses, including financial
advisors' fees, incurred in connection with the insolvency or bankruptcy of the
Company or any Subsidiary or in connection with any work-out or restructuring of
the transactions contemplated hereby and by the Notes, and (c) the fees and
expenses assessed by the Securities Valuation Office of the National Association
of Insurance Commissioners in respect of obtaining initially and from time to
time a rating on the Notes. The Company will pay, and will save you and each
other holder of a Note harmless from, all claims in respect of any fees, costs
or expenses, if any, of brokers and finders (other than those retained by you).
Notwithstanding the foregoing, the Company shall not be responsible for fees and
expenses of counsel to the Purchasers in connection with the issuance and sale
of the Notes on the day of the Closing, except for the reasonable fees and
expenses of Chapman and Cutler, as counsel to the Purchasers.

     SECTION 15.2.  SURVIVAL. The obligations of the Company under this SECTION
15 will survive the payment or transfer of any Note, the enforcement, amendment
or waiver of any provision of this Agreement or the Notes, and the termination
of this Agreement.

SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

     All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or transfer
by you of any Note or portion thereof or interest therein and the payment of any
Note, and may be relied upon by any subsequent holder of a Note, regardless of
any investigation made at any time by or on behalf of you or any other holder of
a Note. All statements contained in any certificate or other instrument
delivered by or on behalf of the Company pursuant to this Agreement shall be
deemed representations and warranties of the Company under this Agreement.
Subject to the preceding sentence, this Agreement and the Notes embody the
entire agreement and understanding between you and the Company and supersede all
prior agreements and understandings relating to the subject matter hereof.

SECTION 17. AMENDMENT AND WAIVER.

     SECTION 17.1.  REQUIREMENTS. This Agreement and the Notes may be amended,
and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the
Company and the Required Holders, except that (a) no amendment or waiver of any
of the provisions of SECTION 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term
(as it is used therein), will be effective as to you unless consented to by you
in writing, and (b) no such amendment or waiver may, without the written consent
of the holder of each Note at the time outstanding affected thereby, (i) subject
to the provisions of SECTION 12 relating to acceleration or rescission, change
the amount or time of any prepayment or payment of principal of, or reduce the
rate or change the time of payment or method of computation of interest or of
the Make-Whole Amount or Modified Make-Whole Amount on, the Notes, (ii) change
the percentage of the principal amount of the Notes the holders of which are
required to consent to any such amendment or waiver, or (iii) amend any of
SECTION 8, 11(a), 11(b), 12, 17 or 20.

                                      -33-
<Page>

     SECTION 17.2.  SOLICITATION OF HOLDERS OF NOTES.

          (a)  SOLICITATION. The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient
information as determined in good faith by the Company (together with such other
information as may be reasonably requested by any such holder), sufficiently far
in advance of the date a decision is required, to enable such holder to make an
informed and considered decision with respect to any proposed amendment, waiver
or consent in respect of any of the provisions hereof or of the Notes. The
Company will deliver executed or true and correct copies of each amendment,
waiver or consent effected pursuant to the provisions of this SECTION 17 to each
holder of outstanding Notes promptly following the date on which it is executed
and delivered by, or receives the consent or approval of, the requisite holders
of Notes.

          (b)  PAYMENT. The Company will not directly or indirectly pay or cause
to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of
Notes or any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each holder of Notes then outstanding
even if such holder did not consent to such waiver or amendment.

     SECTION 17.3.  BINDING EFFECT, ETC. Any amendment or waiver consented to as
provided in this SECTION 17 applies equally to all holders of Notes and is
binding upon them and upon each future holder of any Note and upon the Company
without regard to whether such Note has been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended or waived
or impair any right consequent thereon. No course of dealing between the Company
and the holder of any Note nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein, the term "THIS AGREEMENT" and references thereto shall
mean this Agreement as it may from time to time be amended or supplemented.

     SECTION 17.4.  NOTES HELD BY COMPANY, ETC. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or
have directed the taking of any action provided herein or in the Notes to be
taken upon the direction of the holders of a specified percentage of the
aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by the Company or any of its Affiliates shall be deemed not to
be outstanding.

SECTION 18. NOTICES.

     All notices and communications provided for hereunder shall be in writing
and sent (a) by telecopy if the sender on the same day sends a confirming copy
of such notice by a recognized overnight delivery service (charges prepaid), or
(b) by registered or certified mail

                                      -34-
<Page>

with return receipt requested (postage prepaid), or (c) by a recognized
overnight delivery service (with charges prepaid). Any such notice must be sent:

           (i) if to you or your nominee, to you or it at the address specified
     for such communications in SCHEDULE A, or at such other address as you or
     it shall have specified to the Company in writing,

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

         (iii) if to the Company, to the Company at its address set forth at
     the beginning hereof to the attention of Mark Johnson, Assistant Treasurer
     (with a copy to the same address to the attention of "Treasurer"), or at
     such other address as the Company shall have specified to the holder of
     each Note in writing.

Notices under this SECTION 18 will be deemed given only when actually received.

SECTION 19. REPRODUCTION OF DOCUMENTS.

     This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by you at the Closing (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to you, may be reproduced by you by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar process and you may destroy any original document so reproduced. The
Company agrees and stipulates that, to the extent permitted by applicable law,
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This SECTION 19
shall not prohibit the Company or any other holder of Notes from contesting any
such reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.

SECTION 20. CONFIDENTIAL INFORMATION.

     For the purposes of this SECTION 20, "CONFIDENTIAL INFORMATION" means
information delivered to you by or on behalf of the Company or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was marked as being
confidential information of the Company or such Subsidiary, PROVIDED that such
term does not include information that (a) was publicly known or otherwise known
to you prior to the time of such disclosure, in each case, other than pursuant
to a breach of this SECTION 20 of which you are aware, (b) subsequently becomes
publicly known through no act or omission by you or any Person acting on your
behalf and through no breach of this SECTION 20 of which you are aware, (c)
otherwise becomes known to you other than through disclosure by the Company or
any Subsidiary or (d) constitutes financial statements delivered to

                                      -35-
<Page>

you under SECTION 7.1 that are otherwise publicly available. You will maintain
the confidentiality of such Confidential Information in accordance with
procedures adopted by you in good faith to protect confidential information of
third parties delivered to you, PROVIDED that you may deliver or disclose
Confidential Information to (i) your directors, officers, employees, agents,
attorneys and Affiliates (to the extent such disclosure reasonably relates to
the administration of the investment represented by your Notes), (ii) your
financial advisors and other professional advisors who agree to hold
confidential the Confidential Information substantially in accordance with the
terms of this SECTION 20, (iii) any other holder of any Note, (iv) any
Institutional Investor to which you sell or offer to sell such Note or any part
thereof or any participation therein (if such Person has agreed in writing prior
to its receipt of such Confidential Information to be bound by the provisions of
this SECTION 20), (v) any Person from which you offer to purchase any security
of the Company (if such Person has agreed in writing prior to its receipt of
such Confidential Information to be bound by the provisions of this SECTION 20),
(vi) any federal or state regulatory authority having jurisdiction over you,
(vii) the National Association of Insurance Commissioners or any similar
organization, or any nationally recognized rating agency that requires access to
information about your investment portfolio or (viii) any other Person to which
such delivery or disclosure may be necessary or appropriate (w) to effect
compliance with any law, rule, regulation or order applicable to you, (x) in
response to any subpoena or other legal process, (y) in connection with any
litigation to which you are a party or (z) if an Event of Default has occurred
and is continuing, to the extent you may reasonably determine such delivery and
disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under your Notes and this Agreement. Each
holder of a Note, by its acceptance of a Note, will be deemed to have agreed to
be bound by and to be entitled to the benefits of this SECTION 20 as though it
were a party to this Agreement. On reasonable request by the Company in
connection with the delivery to any holder of a Note of information required to
be delivered to such holder under this Agreement or requested by such holder
(other than a holder that is a party to this Agreement or its nominee), such
holder will enter into an agreement with the Company embodying the provisions of
this SECTION 20.

SECTION 21. SUBSTITUTION OF PURCHASER.

     You shall have the right to substitute any one of your Affiliates as the
purchaser of the Notes that you have agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate's agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in SECTION 6. Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this SECTION 21), such word shall be deemed to refer to such Affiliate in lieu
of you. In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word "you" is used in this Agreement (other than in this SECTION
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

                                      -36-
<Page>

SECTION 22. MISCELLANEOUS.

     SECTION 22.1.  SUCCESSORS AND ASSIGNS. All covenants and other agreements
contained in this Agreement by or on behalf of any of the parties hereto bind
and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or
not.

     SECTION 22.2.  PAYMENTS DUE ON NON-BUSINESS DAYS. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or Make-Whole Amount or Modified Make-Whole Amount or interest on any Note
that is due on a date other than a Business Day shall be made on the next
succeeding Business Day without including the additional days elapsed in the
computation of the interest payable on such next succeeding Business Day.

     SECTION 22.3.  SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction.

     SECTION 22.4.  CONSTRUCTION. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

     SECTION 22.5.  COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be an original but all of which together
shall constitute one instrument. Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

     SECTION 22.6.  GOVERNING LAW. This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the law of the State of New York excluding choice-of-law principles of the law
of such State that would require the application of the laws of a jurisdiction
other than such State.

     SECTION 22.7.  WAIVER OF JURY TRIAL. IF AND TO THE EXTENT THEN PERMITTED BY
APPLICABLE LAW AT THE TIME OF THE COMMENCEMENT THEREOF, THE COMPANY, AND EACH
HOLDER OF NOTES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, OR ANY
DEALINGS BETWEEN OR AMONG THEM RELATING TO THE SUBJECT MATTER OF THIS
TRANSACTION AND THE RELATIONSHIP THAT IS BEING ESTABLISHED HEREUNDER. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND

                                      -37-
<Page>

STATUTORY CLAIMS. THE COMPANY AND EACH HOLDER OF NOTES ACKNOWLEDGE THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE
COMPANY AND EACH HOLDER OF NOTES FURTHER WARRANT AND REPRESENT THAT EACH HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR
AGREEMENTS RELATING TO THE NOTES. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     SECTION 22.8.  CONSENT TO JURISDICTION. THE COMPANY AND EACH HOLDER OF
NOTES HEREBY IRREVOCABLY CONSENTS TO THE PERSONAL JURISDICTION OF THE FEDERAL
COURTS LOCATED IN THE CITY OF NEW YORK, NEW YORK, IN ANY ACTION, CLAIM OR OTHER
PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, THE
NOTES, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF
SUCH RIGHTS AND OBLIGATIONS.

                                  *  *  *  *  *

                                      -38-
<Page>

     If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and the Company.

                                    Very truly yours,

                                    PHH CORPORATION

                                    By /s/ Duncan H. Cocroft
                                       Its Executive Vice President, Chief
                                         Financial Officer and Treasurer

                                      -39-
<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    ANCHOR NATIONAL LIFE INSURANCE COMPANY

                                    By: AIG Global Investment Corp., investment
                                        adviser

                                    By /s/ Lochlan O. McNew
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    FIRST SUNAMERICA LIFE INSURANCE COMPANY

                                    By /s/ Gregg Hammer
                                       Title: Authorized Agent

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    AIG LIFE INSURANCE COMPANY

                                    By: AIG Global Investment Corp., as
                                        investment adviser

                                        By /s/ Lochlan O. McNew
                                           Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    AIG ANNUITY INSURANCE COMPANY (formerly)
                                       American General Annuity Insurance
                                       Company

                                    By: AIG Global Investment Corp., investment
                                        adviser

                                    By /s/ Lochlan O. McNew
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                       COMPANY

                                    By /s/ Jeffrey J. Lueken
                                       Its Authorized Representative

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                       COMPANY for its Group Annuity Separate
                                       Account

                                    By /s/ Jeffrey J. Lueken
                                       Its Authorized Representative

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    METROPOLITAN LIFE INSURANCE COMPANY

                                    By /s/ A. Dennis White
                                       Title: Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY

                                    By /s/ Morian C. Mooers
                                       Title: Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    GE LIFE AND ANNUITY ASSURANCE COMPANY

                                    By /s/ Morian C. Mooers
                                       Title: Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    AMERICAN MAYFLOWER LIFE INSURANCE COMPANY
                                       OF NEW YORK

                                    By /s/ Morian C. Mooers
                                       Title: Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    PROFESSIONAL INSURANCE COMPANY

                                    By /s/ Morian C. Mooers
                                       Title: Assistant Vice
                                                President-Investments

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    GE EDISON LIFE INSURANCE COMPANY

                                    By /s/ Hiroyuki KIMOTO
                                       Title: General Manager / Securities

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    MONUMENTAL LIFE INSURANCE COMPANY

                                    By /s/ Bill Henricksen
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    TRANSAMERICA LIFE INSURANCE COMPANY

                                    By /s/ Bill Henricksen
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    TEACHERS INSURANCE AND ANNUITY
                                       ASSOCIATION OF AMERICA

                                    By /s/ Richard J. Tanner
                                       Title: Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE EQUITABLE LIFE ASSURANCE SOCIETY OF
                                       THE UNITED STATES

                                    By /s/ Nantha K. Suppiah
                                       Title: Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE BALTIMORE LIFE INSURANCE COMPANY

                                    By /s/ Matthew Minnetian
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    NY LD CORPORATE FUND COMPANY

                                    By /s/ Lawrence Shaw
                                       Title: Senior Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE TRAVELERS INSURANCE COMPANY

                                    By /s/ William M. Gardner
                                       Title: Assistant Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE TRAVELERS LIFE AND ANNUITY COMPANY

                                    By /s/ William M. Gardner
                                       Title: Assistant Investment Officer

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    CONNECTICUT GENERAL LIFE INSURANCE COMPANY

                                    By: CIGNA Investments, Inc.
                                        (authorized agent)

                                        By /s/ Debra J. Height
                                          Title: Managing Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    NATIONWIDE  LIFE INSURANCE COMPANY

                                    By /s/ Mark W. Poeppelman
                                       Title: Associate Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    NATIONWIDE LIFE AND ANNUITY INSURANCE
                                       COMPANY

                                    By /s/ Mark W. Poeppelman
                                       Title: Associate Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    FORT DEARBORN LIFE INSURANCE COMPANY

                                    By: Guardian Investor Services LLC

                                        By /s/ Thomas M. Donohue
                                           Title: Managing Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE GUARDIAN LIFE INSURANCE COMPANY OF
                                       AMERICA

                                    By /s/ Thomas M. Donohue
                                       Title: Managing Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE GUARDIAN INSURANCE & ANNUITY
                                       COMPANY, INC.

                                    By /s/ Thomas M. Donohue
                                       Title: Managing Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    BERKSHIRE LIFE INSURANCE COMPANY OF AMERICA

                                    By /s/ Thomas M. Donohue
                                       Title: Managing Director

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    AIB INTERNATIONAL FINANCE

                                    By /s/ Peter Nugent
                                       Title: Senior Vice President

                                    By /s/ Grace Gilligan
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    PHOENIX LIFE INSURANCE COMPANY

                                    By /s/ Christopher M. Wilkos
                                       Title: Senior Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    PHL VARIABLE INSURANCE COMPANY

                                    By /s/ Christopher M. Wilkos
                                       Title: Vice President

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    THE OHIO NATIONAL LIFE INSURANCE COMPANY

                                    By /s/ Michael A. Boedeker
                                       Title: Senior Vice President, Investments

<Page>

The foregoing is hereby agreed
to as of the date thereof.

                                    PACIFIC LIFE INSURANCE COMPANY

                                    By /s/ Bernard J. Dougherty
                                       Title: Assistant Vice President

                                    By /s/ Peter S. Fiek
                                       Title: Assistant Secretary

<Page>

                                  DEFINED TERMS

     As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term:

     "AFFILIATE" means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially owning or holding, directly
or indirectly, 10% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% or more of any class of voting or equity interests. As used in this
definition, "CONTROL" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.
Unless the context otherwise clearly requires, any reference to an "AFFILIATE"
is a reference to an Affiliate of the Company.

     "ANNUAL REPORT" means the Annual Report on Form 10K of the Company for the
year ending December 31, 2001.

     "ASSET SECURITIZATION SUBSIDIARY" means (i) any Subsidiary engaged solely
in the business of effecting asset securitization transactions permitted by the
terms herein 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.

     "BANK AGREEMENT" means the Two Year Competitive Advance and Revolving
Credit Agreement dated as of March 4, 1997, as amended and restated through
February 21, 2002, among the Company and its lending banks.

     "BUSINESS DAY" means any day other than a Saturday, a Sunday or a day on
which commercial banks in New York, New York are required or authorized to be
closed.

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

     "CAPITAL STOCK" means any and all shares, interests, participations, rights
or other equivalents (however designated) of corporate stock or similar
interests in any other form of entity, including, without limitation, with
respect to partnerships, partnership interests (whether general or limited) and
any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of,
such partnership.

     "CASH EQUIVALENTS" means (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

                                   SCHEDULE B
                          (to Note Purchase Agreement)

<Page>

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 under the Bank Agreement 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.

     "CENDANT" means Cendant Corporation, a Delaware corporation.

     "CENDANT SUBSIDIARY" means any Subsidiary of Cendant that is not the
Company or a Subsidiary of the Company.

     "CLOSING" is defined in SECTION 3.

     "CODE" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

     "COMPANY" means PHH Corporation, a Maryland corporation.

     "CONFIDENTIAL INFORMATION" is defined in SECTION 20.

     "CONSOLIDATED ADJUSTED NET WORTH" means the sum of stockholder's equity,
Preferred Stock of the Company and minority interests as set forth in the
Company's consolidated financial statements.

     "CONSOLIDATED NET INCOME" shall mean, for any period for which such amount
is being determined, the net income (loss) of the Company 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 will be excluded (i) income (or loss) of any Person (other than a
Consolidated Subsidiary) in which the Company 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
Company 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 Company or
any of its Consolidated Subsidiaries or the Person's assets are acquired by the
Company 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

                                       B-2
<Page>

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 the 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 Company and its
Consolidated Subsidiaries under stockholders' equity as of such date in
accordance with GAAP.

     "CONSOLIDATED SUBSIDIARY" means all Subsidiaries of the Company that are
required to be consolidated with the Company for financial reporting purposes in
accordance with GAAP.

     "CONSOLIDATED TOTAL ASSETS" means, at any date of determination, the total
assets of the Company and its Consolidated Subsidiaries in accordance with GAAP.

     "CONSOLIDATED TOTAL DEBT" means the total Debt of the Company and its
Subsidiaries, determined on a consolidated basis in accordance with GAAP.

     "DEBT" means (i) all indebtedness, obligations and other liabilities of the
Company and its Subsidiaries which are, at the date as of which Debt is to be
determined, includable as liabilities in a consolidated balance sheet of the
Company 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 Company and its Subsidiaries and
(z) current and deferred income taxes and other similar liabilities, plus (ii)
without duplicating any items included in Debt pursuant to the foregoing clause
(i), the maximum aggregate amount of all liabilities of the Company 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
Company or one of its Subsidiaries and (iii) all other obligations or
liabilities of the Company or any of its Subsidiaries in relation to the
discharge of the obligations of any Person other than the Company or one of its
Subsidiaries.

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

     "DEFAULT RATE" means that rate of interest that is the greater of (i) 2.00%
per annum above the rate of interest stated in clause (a) of the first paragraph
of the Notes or (ii) 2.00% over the rate of interest publicly announced by
Citibank N.A. in New York, New York as its "base" or "prime" rate.

     "ENVIRONMENTAL LAWS" means any and all federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but

                                       B-3
<Page>

not limited to those related to hazardous substances or wastes, air emissions
and discharges to waste or public systems.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

     "ERISA AFFILIATE" means any trade or business (whether or not incorporated)
that is treated as a single employer together with the Company as contemplated
under section 414 of the Code.

     "EVENT OF DEFAULT" is defined in SECTION 11.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

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

     "GOVERNMENTAL AUTHORITY" means

          (a)  the government of

               (i)  the United States of America or any state or other political
          subdivision thereof, or

               (ii) any jurisdiction in which the Company or any Subsidiary
          conducts all or any part of its business, or which asserts
          jurisdiction over any properties of the Company or any Subsidiary, or

          (b)  any entity exercising executive, legislative, judicial,
     regulatory or administrative functions of, or pertaining to, any such
     government.

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

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

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

                                       B-4
<Page>

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

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

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

     "HAZARDOUS MATERIAL" means any and all pollutants, toxic or hazardous
wastes or any other substances that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam insulation and
polychlorinated biphenyls).

     "HOLDER" means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to SECTION
13.1.

     "INSTITUTIONAL INVESTOR" means (a) any original purchaser of a Note, (b)
any holder of a Note holding more than 10% of the aggregate principal amount of
the Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

     "LIEN" means, with respect to any Person, any mortgage, lien, pledge,
charge (floating or otherwise), security interest or other encumbrance, or any
interest or title of any vendor, lessor, lender or other secured party to or of
such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person
(including in the case of stock, stockholder agreements, voting trust agreements
and all similar arrangements).

     "MAKE-WHOLE AMOUNT" is defined in SECTION 8.7.

     "MATERIAL" means material in relation to the business, operations,
financial condition or assets of the Company and its Subsidiaries taken as a
whole.

     "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
business, operations, financial condition or assets of the Company and its
Subsidiaries taken as a whole, or (b) the ability of the Company to perform its
obligations under this Agreement and the Notes, or (c) the validity or
enforceability of this Agreement or the Notes.

     "MATERIAL SUBSIDIARY" means any Subsidiary which together with its
Subsidiaries, at the time of determination, had assets constituting 10% or more
of Consolidated Total Assets,

                                       B-5
<Page>

accounts for 10% or more of Consolidated Net Worth, or accounts for 10% or more
of the revenues of the Company and its Consolidated Subsidiaries for the Rolling
Period immediately preceding the date of determination; PROVIDED, that so long
as any of Cendant Mobility Services Corporation, a Delaware corporation, Cendant
Mortgage Corporation, a New Jersey corporation, PHH Vehicle Management Services,
LLC, a Delaware limited liability company, Wright Express Financial Services
Corporation, a Utah corporation and Wright Express, LLC, a Delaware limited
liability company, and their respective successors and assigns, remains a
Subsidiary, such respective Subsidiary shall be deemed to be a Material
Subsidiary.

     "MEDIUM TERM NOTES" means the Notes issued by the Company pursuant to the
Indenture entered into by the Company dated as of November 6, 2000, as
supplemented.

     "MEMORANDUM" is defined in SECTION 5.3.

     "MODIFIED MAKE-WHOLE AMOUNT" is defined in SECTION 8.7.

     "MOODY'S" means Moody's Investors Service Inc.

     "MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer plan" (as such
term is defined in section 4001(a)(3) of ERISA).

     "NOTES" is defined in SECTION 1.

     "OFFICER'S CERTIFICATE" means a certificate of a Senior Financial Officer
or of any other officer of the Company whose responsibilities extend to the
subject matter of such certificate.

     "OTHER AGREEMENTS" is defined in SECTION 2.

     "OTHER PURCHASERS" is defined in SECTION 2.

     "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

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

     "PLAN" means an "employee benefit plan" (as defined in section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA Affiliate or
with respect to which the Company or any ERISA Affiliate may have any liability.

     "PREFERRED STOCK" means any class of Capital Stock of a corporation that is
preferred over any other class of Capital Stock of such corporation as to the
payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.

                                       B-6
<Page>

     "PROPERTY" or "PROPERTIES" means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.

     "QPAM EXEMPTION" means Prohibited Transaction Class Exemption 84-14 issued
by the United States Department of Labor.

     "RELATED ASSETS" means assets identified with reasonable specificity in
connection with an asset securitization transaction and related to the assets
securitized in such asset securitization transaction.

     "REQUIRED HOLDERS" means, at any time, the holders of at least 51% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates).

     "RESPONSIBLE OFFICER" means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this agreement.

     "RESTRICTED PAYMENT" means (i) the direct or indirect declaration or
payment of any dividend or the making of any distribution or redemption on
account of the Capital Stock of the Company by the Company or any Subsidiary, or
(ii) the making by the Company or any Subsidiary of any loan or advance to, or
investment in, Cendant or any Cendant Subsidiary. "RESTRICTED PAYMENT" shall not
include (a) any distribution in the form of stock or other equity interest, (b)
any redemption or acquisition of stock or other equity interest if such
redemption or acquisition is either (i) solely in exchange for such stock or
other equity interest by the Company or Subsidiary making such redemption or
acquisition or (ii) from the net proceeds of a sale of such stock or other
equity interest by the Company or Subsidiary making such redemption, which sale
shall be made concurrently with such redemption or acquisition and (c) any
distribution by any Subsidiary to the Company or a Wholly-owned Subsidiary and
any redemption of stock of any Subsidiary by the Company or another Subsidiary.

     "REVOLVING LIEN" means any Lien which extends to property in existence on
the date of creation of such Lien and also to any property of substantially the
same characteristics subsequently acquired in the ordinary course of business of
the Company or a Material Subsidiary.

     "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" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies.

     "SECTION 8.3 RATING AGENCY" shall mean S&P, Moody's or Fitch Ratings , Inc.
or if none of the foregoing agencies is rating publicly traded unsecured
long-term Debt of the Company, then another nationally recognized securities
rating agency which is then rating publicly traded long-term Debt of the
Company.

                                       B-7
<Page>

     "SECTION 10.2(b) RATING AGENCIES" means S&P and Moody's, or, if either S&P
or Moody's is not publicly rating the Medium-Term Notes, then another nationally
recognized securities rating agency selected by the Company and substituted for
whichever agency is not publicly rating the Medium-Term Notes.

     "SECTION 10.2(b) RATING DECLINE" means a decrease in the rating of the
Medium-Term Notes by either of the Rating Agencies by one or more gradations
(including gradations within rating categories as well as between rating
categories); PROVIDED that such reduction or decrease must occur upon or within
30 days after the occurrence of a Significant Asset Sale, PROVIDED, HOWEVER,
that such 30-day period shall be extended as long as the rating of the
Medium-Term Notes is under publicly announced consideration by either of the
Rating Agencies (i) where the rating of the Medium-Term Notes is under publicly
announced consideration for possible downgrading, or (ii) where the rating of
the Medium-Term Notes is under publicly announced consideration, but where no
direction of grading is initially indicated by the Rating Agency, including
classifications such as "Credit Watch Developing" or such other similar
classification used by the Rating Agencies, PROVIDED FURTHER, that a Rating
Decline shall not have occurred if, after a decrease in rating, the Medium-Term
Notes are rated at least Baa1 by Moody's AND A- by S&P.

     "SECURITIES ACT" means the Securities Act of 1933, as amended from time to
time.

     "SENIOR DEBT" shall mean Debt of the Company which is not expressed to be
junior or subordinate to any other Debt of the Company and which is held by a
Person which is not a Subsidiary or Affiliate of the Company (other than an
Affiliate of the Company which is an Institutional Investor which beneficially
owns or holds, directly or indirectly, 10% or more of any class of voting or
equity interest of Cendant).

     "SENIOR FINANCIAL OFFICER" means the chief financial officer, principal
accounting officer, treasurer or controller of the Company.

     "SERIES" means any of the Series A Notes, the Series B Notes, the Series C
Notes, the Series D Notes, the Series E Notes, the Series F Notes, the Series G
Notes or the Series H Notes issued hereunder.

     "SERIES A NOTES" is defined in SECTION 1.

     "SERIES B NOTES" is defined in SECTION 1.

     "SERIES C NOTES" is defined in SECTION 1.

     "SERIES D NOTES" is defined in SECTION 1.

     "SERIES E NOTES" is defined in SECTION 1.

     "SERIES F NOTES" is defined in SECTION 1.

                                       B-8
<Page>

     "SERIES G NOTES" is defined in SECTION 1.

     "SERIES H NOTES" is defined in SECTION 1.

     "SIGNIFICANT ASSET SALE" means (i) any sale by the Company or its
Subsidiaries of assets with a fair market value greater than $500,000,000, or
(ii) the sale of 33-1/3% or more of the assets or Capital Stock, as the case may
be, of any one of the fleet, relocation or mortgage business segments as
described in the Company's Annual Report on Form 10-K dated December 31, 2001,
PROVIDED, HOWEVER, that a Significant Asset Sale shall not include transactions
in the ordinary course of business of the Company or its Subsidiaries,
including, but not limited to, asset securitization and similar transactions.

     "SIGNIFICANT ASSET SALE TRIGGERING EVENT" means the occurrence of both a
Significant Asset Sale and a Section 10.2(b) Rating Decline.

     "SPECIAL PURPOSE VEHICLE SUBSIDIARY" means 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 Company if and to the extent that such
loans and/or advances by the Company are not prohibited hereby).

     "SUBSIDIARY" means, as to any Person, any corporation, association or other
business entity in which such Person or one or more of its Subsidiaries or such
Person and one or more of its Subsidiaries owns sufficient equity or voting
interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person or
one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a
"Subsidiary" is a reference to a Subsidiary of the Company.

                                       B-9
<Page>

                         SUBSIDIARIES OF THE COMPANY AND
                          OWNERSHIP OF SUBSIDIARY STOCK

     Set forth below is a list of the Subsidiaries of the Company except that
certain Subsidiaries that both (i) contributed in the aggregate for all
Subsidiaries less than $7,500,000 to the Company's pretax income for 2001 and
(ii) had assets in the aggregate for all such Subsidiaries of less than
$7,500,000 as of December 31, 2001, have been excluded.

<Table>
<Caption>
                                                          PERCENTAGE OF EQUITY
                                                           OWNED DIRECTLY OR
                                      JURISDICTION OF      INDIRECTLY BY PHH
         NAME OF SUBSIDIARY            INCORPORATION          CORPORATION
<S>                                    <C>                        <C>
Apple Ridge Funding LLC                   Delaware                100%

Apple Ridge Services                      Delaware                100%
Corporation

Cendant Mobility Financial                Delaware                100%
Corporation

Cendant Mobility Government               Delaware                100%
Financial Services Corporation

Cendant Mobility Services                 Delaware                100%
Corporation*

Cendant Relocation Holdings            United Kingdom             100%
Limited

Fairtide Insurance Ltd.                   Bermuda                  82%

Kenosia Funding LLC                       Delaware                100%

Apex Real Estate Information              Alabama                 100%
Services Alabama LLC

Apex Real Estate Information            Pennsylvania              100%
Services LLC

Apex Real Estate Information            Pennsylvania              100%
Services LLP

Apex Title Services, LLC                  Delaware                100%

Atrium Insurance Corporation              New York                100%

Axiom Financial, Inc.                       Utah                  100%

Cendant Mortgage Capital LLC              Delaware                100%

Cendant Mortgage Corporation*            New Jersey               100%
</Table>

                                  SCHEDULE 5.4
                          (to Note Purchase Agreement)

<Page>

<Table>
<Caption>
                                                         PERCENTAGE OF EQUITY
                                                          OWNED DIRECTLY OR
                                     JURISDICTION OF      INDIRECTLY BY PHH
         NAME OF SUBSIDIARY           INCORPORATION          CORPORATION
<S>                                     <C>                      <C>
Haddonfield Holding Corporation          Delaware                100%

Hamera Corporation                      California               100%

RMR Financial                           California               100%

Speedy Title & Appraisal Review          Maryland                100%
Services Corp.

PHH Auto Finance Corporation             Maryland                100%

Avis Fleet Leasing and                    Texas                  100%
Management Corporation*

PHH Holdings Corporation                  Texas                  100%

D.L. Peterson Trust*                     Delaware                 98%

Drivershield.com FS Corp.                New York                100%

Chesapeake Funding LLC                   Delaware                100%
(formerly known as Greyhound
Funding LLC)*

Hunt Valley LLC*                         Delaware                100%

AFL Management Services, Inc.*           Delaware                100%

PHH Financial Services, Inc.             Maryland                100%

PHH Solutions and Technologies,          Delaware                100%
LLC*

PHH Vehicle Management                    Canada                 100%
Services Inc.

PHH Vehicle Management                   Delaware                100%
Services LLC*

Raven Funding LLC*                       Delaware                100%

Shawan LLC                               Delaware                100%

Wright Express Financial                   Utah                  100%
Services Corporation*

Wright Express Solutions and             Delaware                100%
Technologies, LLC

Wright Express LLC*                      Delaware                100%
</Table>

* Material Subsidiary (pursuant to the definition contained in the Note Purchase
  Agreement)

                                      5.4-2
<Page>

                                AFFILIATES OF PHH

     Set forth below is a list of the Affiliates of the Company

               Cendant Corporation and its Subsidiaries
               FFD Development Company
               Trip Network, Inc.
               Trilegiant Corporation

                      DIRECTORS AND SENIOR OFFICERS OF PHH

                                    DIRECTORS

                                James E. Buckman
                                Duncan H. Cocroft
                                Stephen P. Holmes

                                    OFFICERS

<Table>
<S>                                 <C>
Richard A. Smith                    President
James E. Buckman                    Executive Vice President, General Counsel &
                                    Assistant Secretary
Thomas D. Christopoul               Executive Vice President
Duncan H. Cocroft                   Executive Vice President, Chief Financial Officer
                                    and Treasurer
Scott E. Forbes                     Executive Vice President
Stephen P. Holmes                   Executive Vice President
Samuel L. Katz                      Executive Vice President, Strategic Development
Kevin M. Sheehan                    Executive Vice President
Eric J. Bock                        Executive Vice President and Secretary
Tobia  Ippolito                     Senior Vice President, Special Projects and Strategic
                                    Initiatives
John T. McClain                     Senior Vice President and Corporate Controller
Vincent  Ventura                    Senior Vice President, Tax
Joseph Weikel                       Senior Vice President, Legal and Assistant Secretary
Joseph  Huber                       Vice President, Tax
Mark E. Johnson                     Vice President and Assistant Treasurer
Richard S. Meisner                  Vice President and Assistant Secretary
Kevin  Monaco                       Vice President
John M. Peterson                    Vice President and Assistant Treasurer
Jean Marie  Sera                    Assistant Secretary
William F. Brown                    Assistant Secretary
Lynn A. Feldman                     Assistant Secretary
</Table>

                                      5.4-3
<Page>

                     FINANCIAL STATEMENTS OF PHH CORPORATION

     -    Consolidated Statements of Income for years ended December 31, 2001,
          2000 and 1999.

     -    Consolidated Balance Sheets as of December 31, 2001 and 2000.

     -    Consolidated Statements of Cash Flows for the years ended December 31,
          2001, 2000 and 1999.

     -    Consolidated Statements of Stockholder's Equity for the years ended
          December 31, 2001, 2000 and 1999.

     -    Consolidated Condensed Statements of Income for the three and nine
          months ended September 30, 2001 and 2000.

     -    Consolidated Condensed Balance Sheets as of September 30, 2001 and
          December 31, 2000.

     -    Consolidated Condensed Statements of Cash Flows for the nine months
          ended September 30, 2001 and 2000.

     -    Consolidated Statements of Income for the years ended December 31,
          2000, 1999 and 1998.

     -    Consolidated Balance Sheets as of December 31, 2000 and 1999.

     -    Consolidated Statements of Cash Flows for the years ended December 31,
          2000, 1999 and 1998.

     -    Consolidated Statements of Stockholder's Equity for the years ended
          December 31, 2000, 1999 and 1998.

                                  SCHEDULE 5.5
                          (to Note Purchase Agreement)

<Page>

                              PHH CORPORATION DEBT
                   (AS DEFINED IN THE NOTE PURCHASE AGREEMENT)
                                 MARCH 31, 2002
                                   (USD 000'S)

<Table>
<Caption>
           DEBT                                                       TOTAL
                                                                  -------------
           <S>                                                      <C>
           CP                                                       1,116,906
           $750 5 year March 2005 Revolver Draw                       270,000
           Mobility - GBP 25 364 day UK Revolver Draw                  35,648
           MTN's                                                      662,649
           Bank Debt (non-revolver)                                         -
           Mobility - Kenosia Facility                                 67,901
           Sheffield Mortgage Warehouse (1 yr commitment)             408,399
           SSB Mortgage Warehouse (1 yr commitment)                    61,546
           Greyhound - VFN's ($1.4 billion max)                     1,312,217
           Greyhound - MTN's $550 10/06                               197,717
           Greyhound - MTN's $450 10/11                               450,000
           Greyhound - MTN's $425 9/06                                425,000
           Greyhound - MTN's $325 9/13                                325,000
           Greyhound - PMI's                                          169,396
           Greyhound - Other                                            9,268
           Greyhound - "Hunt Valley" - Chase Facility                 125,334
           WEX Savings Bank - CD's & Fed Funds Lines                   90,788
           Vehicle - Canada Bank Debt                                   8,286
           Vehicle - Other                                             29,838
           Other                                                          126
                                                                  -------------
           TOTAL DEBT                                               5,766,019
                                                                  =============
           Capital Leases                                               2,592
</Table>

                                  SCHEDULE 5.15
                          (to Note Purchase Agreement)

<Page>

                             [FORM OF SERIES A NOTE]

                                 PHH CORPORATION

                  6.99% SENIOR NOTE, SERIES A, DUE MAY 1, 2005

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 J@ 3

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2005, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 6.99% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 8.99% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 6.99% Senior Notes, Series A, due May 1, 2005 (the
"SERIES A NOTES") of the Company in the aggregate principal amount of
$82,000,000 which, together with the Company's (i) $109,000,000 aggregate
principal amount of 7.55% Senior Notes, Series B, due May 1, 2007 (the "SERIES B
NOTES"), (ii) $154,000,000 aggregate principal amount of 8.05% Senior Notes,
Series C, due May 1, 2009 (the "SERIES C NOTES"), (iii) $20,000,000 aggregate
principal amount of 8.31% Senior Notes, Series D, due May 1, 2012 (the "SERIES D
NOTES"), (iv) $18,000,000 aggregate principal amount of 6.82% Senior Notes,
Series E, due May 1, 2005 (the "SERIES E NOTES"), (v) $36,000,000 aggregate
principal amount of 7.41% Senior Notes, Series F, due May 1, 2007 (the "SERIES F
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-A
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-A-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-A-3
<Page>

                             [FORM OF SERIES B NOTE]

                                 PHH CORPORATION

                  7.55% SENIOR NOTE, SERIES B, DUE MAY 1, 2007

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 K* 3

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2007, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 7.55% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 9.55% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 7.55% Senior Notes, Series B, due May 1, 2007 (the
"SERIES B NOTES") of the Company in the aggregate principal amount of
$109,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES"), (ii) $154,000,000 aggregate principal amount of 8.05% Senior Notes,
Series C, due May 1, 2009 (the "SERIES C NOTES"), (iii) $20,000,000 aggregate
principal amount of 8.31% Senior Notes, Series D, due May 1, 2012 (the "SERIES D
NOTES"), (iv) $18,000,000 aggregate principal amount of 6.82% Senior Notes,
Series E, due May 1, 2005 (the "SERIES E NOTES"), (v) $36,000,000 aggregate
principal amount of 7.41% Senior Notes, Series F, due May 1, 2007 (the "SERIES F
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-B
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-B-2

<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-B-3
<Page>

                             [FORM OF SERIES C NOTE]

                                 PHH CORPORATION

                  8.05% SENIOR NOTE, SERIES C, DUE MAY 1, 2009

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 K@ 1

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2009, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 8.05% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.05% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 8.05% Senior Notes, Series C, due May 1, 2009 (the
"SERIES C NOTES") of the Company in the aggregate principal amount of
$154,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES"), (ii) $109,000,000 aggregate principal amount of 7.55% Senior Notes,
Series B, due May 1, 2007 (the "SERIES B NOTES"), (iii) $20,000,000 aggregate
principal amount of 8.31% Senior Notes, Series D, due May 1, 2012 (the "SERIES D
NOTES"), (iv) $18,000,000 aggregate principal amount of 6.82% Senior Notes,
Series E, due May 1, 2005 (the "SERIES E NOTES"), (v) $36,000,000 aggregate
principal amount of 7.41% Senior Notes, Series F, due May 1, 2007 (the "SERIES F
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-C
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-C-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-C-3
<Page>

                             [FORM OF SERIES D NOTE]

                                 PHH CORPORATION

                  8.31% SENIOR NOTE, SERIES D, DUE MAY 1, 2012

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 K# 9

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2012, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 8.31% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.31% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 8.31% Senior Notes, Series D, due May 1, 2012 (the
"SERIES D NOTES") of the Company in the aggregate principal amount of
$20,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES"), (ii) $109,000,000 aggregate principal amount of 7.55% Senior Notes,
Series B, due May 1, 2007 (the "SERIES B NOTES"), (iii) $154,000,000 aggregate
principal amount of 8.05% Senior Notes, Series C, due May 1, 2009 (the "SERIES C
NOTES"), (iv) $18,000,000 aggregate principal amount of 6.82% Senior Notes,
Series E, due May 1, 2005 (the "SERIES E NOTES"), (v) $36,000,000 aggregate
principal amount of 7.41% Senior Notes, Series F, due May 1, 2007 (the "SERIES F
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-D
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-D-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-D-3
<Page>

                             [FORM OF SERIES E NOTE]

                                 PHH CORPORATION

                  6.82% SENIOR NOTE, SERIES E, DUE MAY 1, 2005

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 L* 2

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2005, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 6.82% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 8.82% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 6.82% Senior Notes, Series E, due May 1, 2005 (the
"SERIES E NOTES") of the Company in the aggregate principal amount of
$18,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES"), (ii) $109,000,000 aggregate principal amount of 7.55% Senior Notes,
Series B, due May 1, 2007 (the "SERIES B NOTES"), (iii) $154,000,000 aggregate
principal amount of 8.05% Senior Notes, Series C, due May 1, 2009 (the "SERIES C
NOTES"), (iv) $20,000,000 aggregate principal amount of 8.31% Senior Notes,
Series D, due May 1, 2012 (the "SERIES D NOTES"), (v) $36,000,000 aggregate
principal amount of 7.41% Senior Notes, Series F, due May 1, 2007 (the "SERIES F
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-E
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-E-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-E-3
<Page>

                             [FORM OF SERIES F NOTE]

                                 PHH CORPORATION

                  7.41% SENIOR NOTE, SERIES F, DUE MAY 1, 2007

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 L@ 0

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2007, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 7.41% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 9.41% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 7.41% Senior Notes, Series F, due May 1, 2007 (the
"SERIES F NOTES") of the Company in the aggregate principal amount of
$36,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES"), (ii) $109,000,000 aggregate principal amount of 7.55% Senior Notes,
Series B, due May 1, 2007 (the "SERIES B NOTES"), (iii) $154,000,000 aggregate
principal amount of 8.05% Senior Notes, Series C, due May 1, 2009 (the "SERIES C
NOTES"), (iv) $20,000,000 aggregate principal amount of 8.31% Senior Notes,
Series D, due May 1, 2012 (the "SERIES D NOTES"), (v) $18,000,000 aggregate
principal amount of 6.82% Senior Notes, Series E, due May 1, 2005 (the "SERIES E
NOTES"), (vi) $19,000,000 aggregate principal amount of 7.93% Senior Notes,
Series G, due May 1, 2009 (the "SERIES G NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-F
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-F-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-F-3
<Page>

                             [FORM OF SERIES G NOTE]

                                 PHH CORPORATION

                  7.93% SENIOR NOTE, SERIES G, DUE MAY 1, 2009

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 L# 8

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2009, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 7.93% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 9.93% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 7.93% Senior Notes, Series G, due May 1, 2009 (the
"SERIES G NOTES") of the Company in the aggregate principal amount of
$19,000,000 which, together with the Company's (i) $82,000,000 aggregate
principal amount of 6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A
NOTES") (ii) $109,000,000 aggregate principal amount of 7.55% Senior Notes,
Series B, due May 1, 2007 (the "SERIES B NOTES"), (iii) $154,000,000 aggregate
principal amount of 8.05% Senior Notes, Series C, due May 1, 2009 (the "SERIES C
NOTES"), (iv) $20,000,000 aggregate principal amount of 8.31% Senior Notes,
Series D, due May 1, 2012 (the "SERIES D NOTES"), (v) $18,000,000 aggregate
principal amount of 6.82% Senior Notes, Series E, due May 1, 2005 (the "SERIES E
NOTES"), (vi) $36,000,000 aggregate principal amount of 7.41% Senior Notes,
Series F, due May 1, 2007 (the "SERIES F NOTES") and (vii) $5,000,000 aggregate
principal amount of 8.22% Senior Notes, Series H, due May 1, 2012 (the "SERIES H
NOTES"; the Series A Notes, the Series B Notes, the Series C Notes, the Series D
Notes, the Series E Notes, the Series F Notes, the Series G Notes and the Series
H Notes being hereinafter collectively referred to as the "NOTES") were issued
pursuant to separate Note Purchase

                                   EXHIBIT 1-G
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-G-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-G-3
<Page>

                             [FORM OF SERIES H NOTE]

                                 PHH CORPORATION

                  8.22% SENIOR NOTE, SERIES H, DUE MAY 1, 2012

No. [_________]                                                    May ___, 2002
$[____________]                                                  PPN 693320 M* 1

     FOR VALUE RECEIVED, the undersigned, PHH CORPORATION (herein called the
"COMPANY"), a corporation organized and existing under the laws of the State of
Maryland, hereby promises to pay to [________________], or registered assigns,
the principal sum of [________________] DOLLARS on May 1, 2012, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 8.22% per annum from the date hereof,
payable semiannually, on the 1st day of May and November in each year,
commencing with the May 1 or November 1 next succeeding the date hereof, until
the principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount or Modified Make-Whole Amount (each as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.22% or (ii) 2% over the rate of
interest publicly announced by Citibank N.A. from time to time in New York, New
York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount or Modified
Make-Whole Amount with respect to this Note are to be made in lawful money of
the United States of America at Citibank N.A. or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of the 8.22% Senior Notes, Series H, due May 1, 2012 (the
"SERIES H NOTES") of the Company in the aggregate principal amount of $5,000,000
which, together with the Company's (i) $82,000,000 aggregate principal amount of
6.99% Senior Notes, Series A, due May 1, 2005 (the "SERIES A NOTES") (ii)
$109,000,000 aggregate principal amount of 7.55% Senior Notes, Series B, due May
1, 2007 (the "SERIES B NOTES"), (iii) $154,000,000 aggregate principal amount of
8.05% Senior Notes, Series C, due May 1, 2009 (the "SERIES C NOTES"), (iv)
$20,000,000 aggregate principal amount of 8.31% Senior Notes, Series D, due May
1, 2012 (the "SERIES D NOTES"), (v) $18,000,000 aggregate principal amount of
6.82% Senior Notes, Series E, due May 1, 2005 (the "SERIES E NOTES"), (vi)
$36,000,000 aggregate principal amount of 7.41% Senior Notes, Series F, due May
1, 2007 (the "SERIES F NOTES") and (vii) $19,000,000 aggregate principal amount
of 7.93% Senior Notes, Series G, due May 1, 2009 (the "SERIES G NOTES"; the
Series A Notes, the Series B Notes, the Series C Notes, the Series D Notes, the
Series E Notes, the Series F Notes, the Series G Notes and the Series H Notes
being hereinafter collectively referred to as the "NOTES") were issued pursuant
to separate Note Purchase

                                   EXHIBIT 1-H
                          (to Note Purchase Agreement)

<Page>

Agreements, each dated as of May __, 2002 (as from time to time amended,
collectively, the "NOTE PURCHASE AGREEMENTS"), among the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in SECTION 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
SECTION 6.2 of the Note Purchase Agreements.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

                                     E-1-H-2
<Page>

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                 PHH CORPORATION

                                 By
                                    --------------------------------------------
                                    Executive Vice President, Chief Financial
                                    Officer and Treasurer

                                     E-1-H-3
<Page>

                       FORM OF OPINION OF SPECIAL COUNSEL
                                 TO THE COMPANY

                            Matters to Be Covered In
                    OPINION OF SPECIAL COUNSEL TO THE COMPANY

                                    [TO COME]

                                EXHIBIT 4.4(a)(1)
                          (to Note Purchase Agreement)<Page>

                             P & F INDUSTRIES, INC.

                                   EXHIBIT 4.9

                                 AMENDMENT NO. 6
                                       TO
                                CREDIT AGREEMENT

      THIS AMENDMENT NO. 6 TO CREDIT AGREEMENT, is entered into as of June 13,
2002 (the "Amendment"), by and among P&F INDUSTRIES, INC., a Delaware
corporation ("P&F"), FLORIDA PNEUMATIC MANUFACTURING CORPORATION, a Florida
corporation ("Florida Pneumatic"), EMBASSY INDUSTRIES, INC., a New York
corporation ("Embassy") and GREEN MANUFACTURING, INC., a Delaware corporation
("Green") (P&F, Florida Pneumatic, Embassy and Green, the "Co-Borrowers"), and
CITIBANK, N.A. (successor-in-interest to European American Bank), a New York
banking corporation (the "Bank").

                                   BACKGROUND

      The Co-Borrowers and the Bank are parties to a Credit Agreement, dated as
of July 23, 1998 (as same has been amended by Amendments Nos. 1, 2, 3, 4 and 5
thereto, the "Credit Agreement"), pursuant to which the Bank provides the
Co-Borrowers with certain financial accommodations.

      The Co-Borrowers have requested that the Bank revise Section 7.12(b) of
the Credit Agreement and the Bank is willing to do so on the terms and
conditions hereinafter set forth. Capitalized terms used herein and not defined
herein shall have the meanings given to them in the Credit Agreement.

      Accordingly, in consideration of the premises and of the mutual covenants
and agreements hereinafter set forth, the parties hereto agree as follows:

                                     ARTICLE
                         AMENDMENT TO CREDIT AGREEMENT.

      Section 1.1 Section 7.12(b) of the Credit Agreement is hereby amended in
its entirety to provide as follows:

            "(b) MINIMUM CAPITAL BASE. Maintain a Consolidated Capital Base at
            all times, of at least $16,000,000."

                                   ARTICLE II.
                          CONDITIONS OF EFFECTIVENESS.
<Page>

      Section 2.1. This Amendment shall become effective as of the date hereof,
upon receipt by the Bank of this Amendment, duly executed by each Co-Borrower
and each Corporate Guarantor.

                                  ARTICLE III .
           REPRESENTATIONS AND WARRANTIES; EFFECT ON CREDIT AGREEMENT.

      Section 3.1. Each Co-Borrower hereby represents and warrants as follows:

            a. This Amendment and the Credit Agreement, as amended hereby,
constitute legal, valid and binding obligations of the Co-Borrowers and are
enforceable against the Co-Borrowers in accordance with their respective terms.

            b. Upon the effectiveness of this Amendment, the Co-Borrowers hereby
reaffirm all covenants, representations and warranties made in the Credit
Agreement to the extent that the same are not amended hereby and each
Co-Borrower agrees that all such covenants, representations and warranties shall
be deemed to have been remade as of the Amendment No. 5 Effective Date.

            c. No Default or Event of Default has occurred and is continuing or
would exist after giving effect to this Amendment.

            d. No Co-Borrower has any defense, counterclaim or offset with
respect to the Credit Agreement.

      Section 3.2. EFFECT ON CREDIT AGREEMENT.

            a. Upon the effectiveness of this Amendment, each reference in the
Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words
of like import shall mean and be a reference to the Credit Agreement as amended
hereby.

            b. Except as specifically amended herein, the Credit Agreement, and
all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

            c. Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Bank, nor constitute a waiver of any provision of the
Credit Agreement, or any other documents, instruments or agreements executed
and/or delivered under or in connection therewith.

                                   ARTICLE IV.
                                 MISCELLANEOUS.

      Section 4.1. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.

                                       2
<Page>

      Section 4.2. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

      Section 4.3. This Amendment may be executed in one or more counterparts,
each of which shall constitute an original, and all of which, taken together,
shall be deemed to constitute one and the same agreement.

[next page is signature page]

                                       3
<Page>

      IN WITNESS WHEREOF, the Co-Borrowers and the Bank have caused this
Amendment to be duly executed by their duly authorized officers as of the day
and year first above written.

                              P&F INDUSTRIES, INC.

                              By:  _______________________
                              Name: Joseph A. Molino. Jr.
                              Title: Vice President

                              FLORIDA PNEUMATIC MANUFACTURING
                              CORPORATION

                              By:  _______________________
                              Name: Joseph A. Molino, Jr.
                              Title: Vice President

                              EMBASSY INDUSTRIES, INC.

                              By:  _______________________
                              Name: Joseph A. Molino, Jr.
                              Title: Vice President

                              GREEN MANUFACTURING, INC.

                              By:  _______________________
                              Name: Joseph A. Molino, Jr.
                              Title: Vice President

                              CITIBANK, N.A.

                              By:  _______________________
                              Name:
                              Title:

ACKNOWLEDGED AND ACCEPTED:

STATE BANK OF LONG ISLAND

By:________________________
Name:
Title:

                                       4
<Page>

The undersigned, not parties to the Credit Agreement but as Corporate Guarantors
under Corporate Guaranties, dated as of May 3, 2002, executed in favor of the
Bank, hereby accept and agree to the terms of the foregoing Amendment and
further acknowledge that their respective Corporate Guaranties are in full force
and effect and are hereby ratified and confirmed.

                              NATIONWIDE INDUSTRIES, INC.

                              By:  _______________________
                              Name: Joseph A. Molino. Jr.
                              Title: Vice President

                              COUNTRYWIDE HARDWARE, INC.

                              By:  _______________________
                              Name: Joseph A. Molino, Jr.
                              Title: Vice President

                                       5

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