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Exhibit 10.1    
    

CONFORMED COPY 

AMENDED AND RESTATED COMPETITIVE ADVANCE AND

REVOLVING CREDIT AGREEMENT

  

Dated
as of March 4, 1997, as amended

and restated through July 3, 2003 

among

PHH
CORPORATION 

as
Borrower 

and 

THE
LENDERS REFERRED TO HEREIN 

and

JPMORGAN
CHASE BANK, as Administrative Agent 

J.P.
MORGAN SECURITIES INC., 

as
Lead Arranger and Bookrunner 

 

 
 

Table of Contents    
    

	 
	 
	 
	 	Page

	1.	DEFINITIONS	 	1
	

2.	

THE LOANS	
 	

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

3.	

REPRESENTATIONS AND WARRANTIES OF BORROWER	
 	

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

4.	

CONDITIONS OF LENDING	
 	

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

5.	

AFFIRMATIVE COVENANTS	
 	

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

i

 

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

6.	

NEGATIVE COVENANTS	
 	

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

7.	

EVENTS OF DEFAULT	
 	

36
	

8.	

THE ADMINISTRATIVE AGENT	
 	

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

9.	

MISCELLANEOUS	
 	

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

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	SCHEDULES	 
	 	

1.1A	

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

EXHIBITS	

 
	 	

A-1	

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

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

INTRODUCTORY STATEMENT  

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

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

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

Accordingly,
the parties hereto hereby agree as follows: 

1.     DEFINITIONS  

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

2

 

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

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

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

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

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

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

3

 

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

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

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

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

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

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

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

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

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

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

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

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

4

 

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

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

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

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

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

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

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

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

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

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

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

5

 

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

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

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

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

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

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

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

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

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

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

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

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

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

6

 

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

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

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

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

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

7

 

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

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

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

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

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

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

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

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

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

8

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10

  

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

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

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

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

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

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

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

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

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

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

11

 

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

        "Termination Date" means February 28, 2005. 

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

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

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

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

2.     THE LOANS  

        SECTION
2.1.    Commitments.    

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

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

        SECTION
2.2.    Loans.    

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

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

12

 

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

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

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

        SECTION
2.3.    Use of Proceeds.    

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

        SECTION
2.4.    Competitive Bid Procedure.    

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

13

 

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

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

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

14

 

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

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

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

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

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

        SECTION
2.6.    Refinancings.    

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

15

 

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

        SECTION
2.7.    Fees.    

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

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

16

 

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

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

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

        SECTION
2.8.    Repayment of Loans; Evidence of Debt.    

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

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

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

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

        (e)   The
entries made in the Register and the accounts of each Lender maintained pursuant to Section 2.8(c) shall, to the extent permitted by applicable law, be  prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded;  provided that the failure of any Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall
not in any
manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in accordance with the terms of this Agreement. 

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

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

17

 

        SECTION
2.9.    Interest on Loans.    

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

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

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

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

        SECTION
2.10.    Interest on Overdue Amounts.    

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

        SECTION
2.11.    Alternate Rate of Interest.    

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

18

 

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

        SECTION
2.12.    Termination and Reduction of Commitments.    

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

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

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

        SECTION
2.13.    Prepayment of Loans.    

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

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

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

        SECTION
2.14.    Eurocurrency Reserve Costs.    

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

19

 

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

        SECTION
2.15.    Reserve Requirements; Change in Circumstances.    

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

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

20

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

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

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

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

        SECTION
2.16.    Change in Legality.    

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

21

 

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

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

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

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

        SECTION
2.17.    Reimbursement of Lenders.    

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

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

22

 

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

        SECTION
2.18.    Pro Rata Treatment.    

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

        SECTION
2.19.    Right of Setoff.    

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

        SECTION
2.20.    Manner of Payments.    

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

23

 

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

        SECTION
2.21.    Withholding Taxes.    

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

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

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

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

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

24

 

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

        SECTION
2.22.    Certain Pricing Adjustments.    

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

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

Spread (in Basis Points)

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

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

25

 

3.     REPRESENTATIONS AND WARRANTIES OF BORROWER  

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

        SECTION
3.1.    Corporate Existence and Power.    

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

        SECTION
3.2.    Corporate Authority and No Violation.    

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

        SECTION
3.3.    Governmental and Other Approval and Consents.    

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

        SECTION
3.4.    Financial Statements of Borrower.    

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

        SECTION
3.5.    No Material Adverse Change.    

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

        SECTION
3.6.    Copyrights, Patents and Other Rights.    

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

26

 

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

        SECTION
3.7.    Title to Properties.    

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

        SECTION
3.8.    Litigation.    

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

        SECTION
3.9.    Federal Reserve Regulations.    

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

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

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

        SECTION
3.11.    Enforceability.    

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

        SECTION
3.12.    Taxes.    

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

        SECTION
3.13.    Compliance with ERISA.    

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

27

 

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

        SECTION
3.14.    Disclosure.    

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

        SECTION
3.15.    Environmental Liabilities.    

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

4.     CONDITIONS OF LENDING  

        SECTION
4.1.    Conditions Precedent to Effectiveness.    

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

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

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

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

28

 

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

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

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

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

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

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

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

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

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

29

  

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

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

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

5.     AFFIRMATIVE COVENANTS  

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

        SECTION
5.1.    Financial Statements, Reports, etc.    

Deliver
to each Lender: 

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

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

30

 

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

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

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

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

        SECTION
5.2.    Corporate Existence; Compliance with Statutes.    

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

        SECTION
5.3.    Insurance.    

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

        SECTION
5.4.    Taxes and Charges.    

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

31

 

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

        SECTION
5.5.    ERISA Compliance and Reports.    

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

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

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

        SECTION
5.7.    Maintenance of Properties.    

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

32

 

6.     NEGATIVE COVENANTS  

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

        SECTION
6.1.    Limitation on Material Subsidiary Indebtedness.    

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

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

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

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

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

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

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

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

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

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

33

 

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

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

        SECTION
6.3.    Consolidation, Merger, Sale of Assets.    

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

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

        SECTION
6.4.    Limitations on Liens.    

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

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

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

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

34

 

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

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

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

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

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

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

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

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

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

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

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

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

        SECTION
6.5.    Sale and Leaseback.    

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

35

 

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

        SECTION
6.6.    Consolidated Net Worth.    

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

        SECTION
6.7.    Ratio of Indebtedness To Consolidated Net Worth.    

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

        SECTION
6.8.    Accounting Practices.    

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

        SECTION
6.9.    Restrictions Affecting Subsidiaries.    

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

7.     EVENTS OF DEFAULT  

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

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

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

36

 

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

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

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

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

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

37

 

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

        (h)   the
occurrence of a Change in Control; 

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

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

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

8.     THE ADMINISTRATIVE AGENT  

        SECTION
8.1.    Administration by Administrative Agent.    

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

        SECTION
8.2.    Advances and Payments.    

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

38

 

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

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

        SECTION
8.3.    Sharing of Setoffs and Cash Collateral.    

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

        SECTION
8.4.    Notice to the Lenders.    

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

39

   
        SECTION 8.5.    Liability of the Administrative Agent.    

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

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

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

        SECTION
8.6.    Reimbursement and Indemnification.    

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

        SECTION
8.7.    Rights of Administrative Agent.    

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

40

 

        SECTION
8.8.    Independent Investigation by Lenders.    

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

        SECTION
8.9.    Notice of Transfer.    

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

        SECTION
8.10.    Successor Administrative Agent.    

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

9.     MISCELLANEOUS  

        SECTION
9.1.    Notices.    

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

41

 

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

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

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

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

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

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

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

42

 

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

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

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

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

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

43

 

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

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

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

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

44

 

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

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

        SECTION
9.4.    Expenses; Documentary Taxes.    

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

        SECTION
9.5.    Indemnity.    

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

        SECTION
9.6.    CHOICE OF LAW.    

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

45

 

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

        SECTION
9.7.    No Waiver.    

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

        SECTION
9.8.    Extension of Maturity.    

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

        SECTION
9.9.    Amendments, etc..    

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

        SECTION
9.10.    Severability.    

Any
provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

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

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

46

 

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

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

        SECTION
9.12.    Headings.    

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

        SECTION
9.13.    Execution in Counterparts.    

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

47

 

        SECTION
9.14.    Entire Agreement.    

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

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

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

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

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

48

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

	 	 	PHH CORPORATION
	

 	
 	

By:	
 	

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

Title: Executive Vice President and Chief Financial Officer
	

 	
 	

JPMORGAN CHASE BANK
	

 	
 	

By:	
 	

/s/  RANDOLPH CATES      
 Title: Randolph Cates

Name: Vice President
	

 	
 	

MANUFACTURERS AND TRADERS TRUST COMPANY
	

 	
 	

By:	
 	

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

Title: Assistant Vice President
	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  IGOR SUICIA      
 Name: Igor Suicia

Title: Vice President
	

 	
 	

BMO NESBITT BURNS FINANCING, INC.
	

 	
 	

By:	
 	

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

Title: Managing Director
	

 	
 	

UBS AG, Cayman Islands Branch
	

 	
 	

By:	
 	

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

Title: Director
	

 	
 	

By:	
 	

/s/  LUKE GOLDSWORTHY      
 Name: Luke Goldsworthy

Title: Associate Director Banking Products Services, US
	

 	
 	

THE BANK OF NOVA SCOTIA
	

 	
 	

By:	
 	

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

Title: Managing Director
	 	 	 	 	 

49

 

	

 	
 	

DANSKE BANK A/S
	

 	
 	

By:	
 	

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

Title: Vice President
	

 	
 	

By:	
 	

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

Title: Assistant General Manager
	

 	
 	

BANK ONE, NA
	

 	
 	

By:	
 	

/s/  NELSON ALBRECHT      
 Name: Nelson Albrecht

Title: Director
	

 	
 	

BARCLAYS BANK PLC
	

 	
 	

By:	
 	

/s/  JOHN GIANNONE      
 Name: John Giannone

Title: Director
	

 	
 	

CIBC INC.
	

 	
 	

By:	
 	

/s/  DOMINIC SORRESSO      
 Name: Dominic Sorresso

Title: Executive Director

CIBC World Markets Corp., as Agent
	

 	
 	

CITIBANK N.A.
	

 	
 	

By:	
 	

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

Title: Vice President
	

 	
 	

CREDIT LYONNAIS NEW YORK BRANCH
	

 	
 	

By:	
 	

/s/  ROD HURST      
 Name: Rod Hurst

Title: Vice President
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

Cayman Islands Branch
	

 	
 	

By:	
 	

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

Title: Director
	

 	
 	

By:	
 	

/s/  CASSANDRA DROOGAN      
 Name: Cassandra Droogan

Title: Associate
	 	 	 	 	 

50

 

	

 	
 	

WACHOVIA BANK, NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

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

Title: Managing Director
	

 	
 	

MELLON BANK, N.A.
	

 	
 	

By:	
 	

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

Title: Vice President
	

 	
 	

THE ROYAL BANK OF SCOTLAND PLC
	

 	
 	

By:	
 	

/s/  STEVE BARLOW      
 Name: Steve Barlow

Title: Corporate Director
	

 	
 	

WELLS FARGO BANK
	

 	
 	

By:	
 	

/s/  LAUREN DOWNUM      
 Name: Lauren Downum

Title: Vice President
	

 	
 	

By:	
 	

/s/  KATRINA FLOWERS      
 Name: Katrina Flowers

Title: Vice President
	

 	
 	

WESTLB AG, NEW YORK BRANCH
	

 	
 	

By:	
 	

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

Title: Executive Director
	

 	
 	

By:	
 	

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

Title: Executive Director

51

 
 

Schedule 1.1A    
    

 
 

Commitments    
    

	Lender
 
	 	Commitment

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

Bank of America, N.A.	
 	
 	

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

Allfirst Bank	
 	
 	

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

TOTAL	
 	
$	

500,000,000

 
 

Schedule 1.1B    
    

 
 

Available Foreign Currencies    
    

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

Australian
Dollars

Canadian Dollars

British Pounds Sterling

euros

Japanese Yens

Swiss Francs 

 
 

Schedule 6.1    
    

 
 

Existing Material Subsidiary Indebtedness    
    

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

 
 

Schedule 6.4    
    

 
 

Existing Liens    
    

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

QuickLinks

Exhibit 10.1

Table of Contents

Schedule 1.1A

Commitments

Schedule 1.1B

Available Foreign Currencies

Schedule 6.1

Existing Material Subsidiary Indebtedness

Schedule 6.4

Existing LiensQuickLinks
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Exhibit 10.2  

 
 

SELLING AGENT AGREEMENT
  by and among
  PHH Corporation
  and the
  Agents named herein
  June 9, 2003  
  

 
 

PHH CORPORATION
  (a Maryland corporation)    
    

 
 

SELLING AGENT AGREEMENT    
    

June 9, 2003 

To
the Agents listed on the signature page hereto: 

PHH
Corporation, a Maryland corporation (the "Company") proposes to issue and sell up to $500,000,000 aggregate principal amount of its PHH InterNotes® due nine months or more from date of
issue (the "Notes"). The Notes will be issued pursuant to an indenture dated as of November 6, 2000, (the "Base Indenture," such Base Indenture as supplemented by Supplemental Indenture
No. 1, dated as of November 6, 2000, and Supplemental Indenture No. 3, dated as of May 30, 2002, being referred to herein as the "Indenture"), between the Company and Bank
One Trust Company, N.A. (the "Trustee"). 

Subject
to the terms and conditions contained in this Agreement, the Company hereby (1) appoints each of you as agent of the Company ("Agent") for the purpose of soliciting offers to purchase
the Notes and each of you hereby agree to use your reasonable best efforts to solicit offers to purchase Notes upon terms acceptable to the Company at such times and in such amounts as the Company
shall from time to time specify and in accordance with the terms hereof, and after consultation with Incapital LLC (the "Purchasing Agent") and (2) agrees that whenever the Company determines
to sell Notes pursuant to this Agreement to the Purchasing Agent purchasing such Notes as principal for resale to other Agents or dealers (the "Selected Dealers"), each of whom will purchase as
principal, such Notes shall be sold pursuant to a terms agreement (a "Terms Agreement") between the Company and the Purchasing Agent relating to such sale in accordance with the provisions of
Section V hereof.
The Company reserves the right to enter into agreements substantially identical hereto with other agents. 

I. 

The
Company has filed with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-3 (Registration No. 333-46434) (the
"Initial Registration Statement") covering up to $3,000,000,000 aggregate principal amount of the Company's debt securities and the offering thereof from time to time in accordance with
Rule 415 under the Securities Act of 1933, as amended (the "1933 Act"). The Initial Registration Statement was declared effective by the Commission on November 3, 2000 and the Indenture
has been qualified under the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act"). A prospectus supplement (the "Prospectus Supplement"), in the form first filed after the date hereof
pursuant to Rule 424 of the 1933 Act, will reflect certain terms of the Notes, certain terms of the offering thereof and other matters set forth therein. The Initial Registration Statement, as
amended at the date hereof, together with any registration statements filed by the Company pursuant to Rule 462(b) under the 1933 Act, including the exhibits thereto and the documents
incorporated by reference therein, is herein called the "Registration Statement," and the base prospectus (the "Base Prospectus") included therein relating to all offerings of debt securities under
the Registration Statement, as supplemented by the Prospectus Supplement and any applicable Pricing Supplement (as defined herein), is herein called the "Prospectus," except that, if such Base
Prospectus is amended or supplemented on or prior to the date on which the Prospectus Supplement is first filed pursuant to Rule 424, the term "Prospectus" shall refer to the Base Prospectus,
as so amended or supplemented and as supplemented by the Prospectus Supplement and any applicable Pricing Supplement, in either case including the documents filed by the Company with the Commission
pursuant to the Securities Exchange Act of 1934, as amended (the "1934 Act"), that are incorporated by reference therein. 

 

II. 

The
Agents' obligations hereunder are subject to the following conditions: 

        (a)   On
the date hereof, the Agents shall have received a signed opinion of Piper Rudnick LLP, special Maryland counsel to the Company, a signed opinion of Eric J. Bock,
Executive Vice President, Law and Corporate Secretary of the Company, and a signed opinion of Skadden, Arps, Slate, Meagher &
Flom LLP, special counsel for the Company in form and substance reasonably satisfactory to the Agents as set forth on Exhibits A, B and C attached hereto, respectively. 

        (b)   On
the date hereof, the Agents shall have received a certificate of any Senior Vice President or Treasurer or any other authorized officer of the Company reasonably
satisfactory to the Agents, dated as of the date hereof, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Prospectus and this Agreement and
that to the best of their knowledge (i) since the respective dates as of which information is given in the Registration Statement and the Prospectus, there has not been any material adverse
change in the condition, financial or otherwise, earnings or business affairs of the Company and its Significant Subsidiaries (as defined herein) considered as one enterprise, whether or not arising
in the ordinary course of business, except as set forth or contemplated in the Prospectus, as supplemented or amended, (ii) the other representations and warranties of the Company contained in
this Agreement are true and correct in all material respects with the same force and effect as though expressly made at and as of the date of such certificate, (iii) the Company has performed
or complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the date of such certificate, (iv) no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for that purpose have been instituted or threatened by the Commission and (v) no litigation or proceeding shall be
pending or, to the knowledge of the Company, threatened to restrain or enjoin the issuance or delivery of the Notes, or which in any way affects the validity of the Notes, except that the foregoing
does not apply to (i) statements or omissions in the Registration Statement or Prospectus based upon written information furnished to the Company by any of you or the Trustee expressly for use
therein or (ii) that part of the Registration Statement that constitutes the Statement of Eligibility under the Trust Indenture Act on Form T-1 of the Trustee, except
statements or omissions in such Statement made in reliance upon information furnished in writing to the Trustee by or on behalf of the Company for use therein. The term "Significant Subsidiary" has
the meaning assigned to it in clauses (1) and (2) of Rule 1-02(w) of Regulation S-X promulgated under the 1933 Act. 

        (c)   On
the date hereof and at the times specified herein, the Agents shall have received a letter from Deloitte & Touche LLP ("Deloitte & Touche") dated as of
the date hereof (or such other date as specified herein), signed by Deloitte & Touche, substantially identical to the proposed form of such letter heretofore delivered to each of you. 

        (d)   On
the date hereof and on each Settlement Date (as defined herein) with respect to any purchase of Notes by the Purchasing Agent, counsel to the Agents shall have been
furnished with such documents and opinions as such counsel may reasonably require for the purpose of enabling such counsel to pass upon the issuance and sale of Notes as herein contemplated, or in
order to evidence the accuracy and completeness of any of the representations and warranties, or the fulfillment of any of the conditions, contained herein; and all proceedings taken by the Company in
connection with the issuance and sale of Notes as herein contemplated shall be satisfactory in form and substance to the Purchasing Agent and to counsel to the Agents. 

        (e)   On
the date hereof, you shall have received the favorable opinion of Shearman & Sterling, counsel for the Agents, dated as of the date hereof. 

2

 

The
obligations of the Purchasing Agent to purchase Notes as principal, both under this Agreement and under any Terms Agreement, are subject to the conditions that (i) no litigation or
proceeding shall be pending or, to the knowledge of the Company, threatened to restrain or enjoin the issuance or delivery of the Notes, or which in any way questions or affects the validity of the
Notes, (ii) no stop order suspending the effectiveness of the Registration Statement shall be in effect, and no proceedings for such purpose shall be pending before or threatened by the
Commission and (iii) there shall have been no material adverse change in the financial condition of the Company and its Significant Subsidiaries, taken as a whole, from that set forth in the
Registration Statement and the Prospectus (exclusive of any supplement thereto since the date of the Terms Agreement), each of which conditions shall be met on the date of the Terms Agreement and on
the corresponding Settlement Date. Further, if specifically called for by any written agreement by the Purchasing Agent, including a Terms Agreement, to purchase Notes as principal, the Purchasing
Agent's obligations hereunder and under such agreement, shall be subject to such additional conditions, including those set forth in clauses (a), (b) and (c) above, as agreed to by the
parties, each of which such agreed conditions shall be met on the corresponding Settlement Date. 

III. 

In
further consideration of your agreements herein contained, the Company covenants as follows: 

        (a)   The
Company will notify the Agents immediately of (i) the effectiveness of any post-effective amendment to the Registration Statement, (ii) 
the filing of any supplement to the Prospectus (other than a Pricing Supplement) or any document to be filed pursuant to the 1934 Act which will be incorporated by reference in the Prospectus (other
than with respect to the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q), (iii) the receipt of any comments from the
Commission with respect to the Registration Statement or the Prospectus (other than with respect to a document filed with the Commission pursuant to the 1934 Act which will be incorporated by
reference in the Registration Statement and the Prospectus), (iv) any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus
or for additional information relating thereto or to any document incorporated by reference in the Prospectus, (v) the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceedings for that purpose, and (vi) (x) any change in the rating assigned by any nationally recognized statistical rating
organization to the debt securities of the Company or to the InterNotes Program under which the Notes are issued (the "Program"), (y) the public announcement by any nationally recognized
statistical rating organization that it has under surveillance or review, with possible negative implications, its rating of any such debt securities, following such time as the Company shall have
been notified of such a change or public announcement
by such nationally recognized statistical rating organization; provided, that, for purposes of clause (ii) of this paragraph (a), the
Company may notify the Agents of any filing through automated electronic mail sent to electronic mail addresses of the Agents, which addresses shall be provided by the Agents to the Company in Annex A
hereto. The Company will make every reasonable effort to prevent the issuance of any stop order and, if any stop order is issued, to promptly obtain the lifting thereof. 

        (b)   The
Company will give the Agents notice of its intention to file or prepare any additional registration statements with respect to the registration of additional Notes
or any amendment to the Registration Statement or any amendment or supplement to the Prospectus with respect to the issuance of additional Notes (other than (i) a Pricing Supplement,
(ii) an amendment, or supplement providing solely for a change in the interest rates or maturity dates of Notes or similar changes, or (iii) an amendment or supplement effected by the
filing of a document with the Commission pursuant to the 1934 Act) and, upon request, will furnish the Agents with copies of 

3

 

any
such registration statement or amendment or supplement proposed to be filed or prepared a reasonable time in advance of such proposed filing or preparation, as the case may be, and will not file
any such registration statement or amendment or supplement in a form as to which the Agents or your counsel reasonably object. 

        (c)   The
Company will deliver to the Agents without charge, a copy of (i) the Indenture, (ii) the Registration Statement (as originally filed) and of each
amendment thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated by reference in the Prospectus other than exhibits to the Company's Annual Report
on Form 10-K and the Company's Quarterly Reports on Form 10-Q) and (iii) a certified copy of the corporate authorization of the issuance and sale of the
Notes. The Company will furnish to the Agents as many copies of the Prospectus (as amended or supplemented) as the Agents shall reasonably request so long as the Agents are required to deliver a
Prospectus in connection with sales or solicitations of offers to purchase the Notes under the Act. 

        (d)   With
respect to any Notes to be sold through or to the Agents pursuant to this Agreement, a pricing supplement with respect to such Notes in substantially the form
attached as Exhibit G (a "Pricing Supplement") will be provided to the Company by the Purchasing Agent, and will be filed by the Company with the Commission pursuant to Rule 424(b) under
the 1933 Act not later than the close of business on the fifth business day after the date on which such Pricing Supplement is first used. 

        (e)   Except
as otherwise provided in subsection (i) of this Section, if at any time during the term of this Agreement any event shall occur or condition exist as a
result of which it is necessary, in the reasonable opinion of your counsel or counsel for the Company, to further amend or supplement the Prospectus in order that the Prospectus will not include an
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading in light of the circumstances existing at the time the
Prospectus is delivered to a purchaser, or if it shall be necessary, in the reasonable opinion of either such counsel, to amend or supplement the Registration
Statement or the Prospectus in order to comply with the requirements of the 1933 Act or the regulations of the Commission thereunder (the "1933 Act Regulations"), immediate notice shall be given, and
confirmed in writing, to the Agents to cease the solicitation of offers to purchase the Notes and to cease sales of any Notes by the Purchasing Agent, and the Company will promptly prepare and file
with the Commission such amendment or supplement, whether by filing documents pursuant to the 1934 Act, the 1933 Act or otherwise, as may be necessary to correct such untrue statement or omission or
to make the Registration Statement and Prospectus comply with such requirements. 

        (f)    As
soon as practicable, the Company will make generally available to its security holders an earnings statement or statements that will satisfy the provisions of
Section 11(a) of the 1933 Act and Rule 158 thereunder. 

        (g)   The
Company will endeavor to qualify the Notes for offering and sale under the applicable securities laws of such states and other jurisdictions of the United States as
the Agents may designate and will maintain such qualifications in effect for as long as may be required for the distribution of the Notes; provided,
however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise subject. The Company will file such
statements and reports as may be required by the laws of each jurisdiction in which the Notes have been qualified as above provided. The Company will promptly advise the Agents of the receipt by the
Company of any notification with respect to the suspension of the qualification of 

4

 

the
Notes for sale in any such state or jurisdiction or the initiating or threatening of any proceeding for such purpose. 

        (h)   The
Company, during the period when the Prospectus is required to be delivered under the 1933 Act, will file within the prescribed time all documents required to be
filed with the Commission pursuant to Sections 13(a), 13(c) or 15(d) of the 1934 Act. 

        (i)    The
Company shall not be required to comply with the provisions of subsection(e) of this Section or the provisions of Sections VII(b), (c) and (d) during
any period from the time (i) the Agents have suspended solicitation of purchases of the Notes pursuant to a direction from the Company and (ii) the Agents shall not then hold any Notes
as principal as part of a distribution of the Notes purchased from the Purchasing Agent to the time the Company shall determine that solicitation of purchases of the Notes should be resumed or shall
subsequently agree for the Purchasing Agent to purchase Notes as principal. 

IV. 

        (a)   The
Agents propose to solicit offers to purchase the Notes upon the terms and conditions set forth herein and in the Prospectus and upon the terms communicated to the
Agents from time to time by the Company or the Purchasing Agent, as the case may be. For the purpose of such solicitation the Agents will use the Prospectus as then amended or supplemented which has
been most recently distributed to the Agents by the Company, and the Agents will solicit offers to purchase only as permitted or contemplated thereby and herein and will solicit offers to purchase the
Notes only as permitted by the 1933 Act and the applicable securities laws or regulations of any jurisdiction. The Company reserves the right, in its sole discretion, to suspend solicitation of offers
to purchase the Notes commencing at any time for any period of time or permanently. Upon receipt of instructions (which may be given orally) from the Company, the Agents will suspend promptly
solicitation of offers to purchase until such time as the Company has advised the Agents that such solicitation may be resumed. 

Unless
otherwise instructed by the Company, the Agents are authorized to solicit offers to purchase the Notes only in denominations of $1,000 or more (in multiples of $1,000). The Agents are not
authorized to appoint subagents or to engage the services of any other broker or dealer in connection with the offer or sale of the Notes without the consent of the Company. Unless otherwise
instructed by the Company, the Purchasing Agent shall communicate to the Company, orally or in writing, each offer to purchase Notes. The Company shall have the sole right to accept offers to purchase
Notes and may reject any proposed offers to purchase Notes as a whole or in part. Each Agent shall have the right, in its discretion reasonably exercised, to reject any proposed purchase of Notes, as
a whole or in part, and any such rejection shall not be deemed a breach of its agreements contained herein. The Company agrees to pay the Purchasing Agent, as consideration for soliciting offers to
purchase Notes pursuant to a Terms Agreement, a concession in the form of a discount equal to the percentages of the initial offering price of each Note actually sold as set forth in Exhibit D
hereto (the "Concession"); provided, however, that the Company and the Purchasing Agent may agree also to a Concession greater than or less than the percentages set forth on Exhibit D hereto.
The actual aggregate Concession with respect to each tranche of Notes will be set forth in the related Pricing Supplement. The Purchasing Agent and the other Agents (and Selected Dealers) will share
the above-mentioned Concession in such proportions as they may agree. 

Unless
otherwise authorized by the Company, all Notes shall be sold to the public at a purchase price not to exceed 100% of the principal amount thereof, plus accrued interest, if any. Such purchase
price shall be set forth in the confirmation statement of the Agent responsible for such sale and such confirmation statement shall contain the same substance as the Pricing Supplement and shall be 

5

 

delivered
by such Agent to the purchaser along with a copy of the Prospectus (if not previously delivered) and Pricing Supplement. 

        (b)   Procedural
details relating to the issue and delivery of, and the solicitation of purchases and payment for, the Notes are set forth in the Administrative Procedures
attached hereto as Exhibit E (the "Procedures"), as amended from time to time. Unless otherwise provided in a Terms Agreement, the provisions of the Procedures shall apply to all transactions
contemplated hereunder. The Agents and the Company each agree to perform the respective duties and obligations specifically provided to be performed by each in the Procedures as amended from time to
time. The Procedures may only be amended by written agreement of the Company and the Agents. 

        (c)   The
Company, the Purchasing Agent and each Agent acknowledges and agrees, and each Selected Dealer will be required by the Agents to acknowledge and agree, that the
Notes are being offered for sale in the United States only. 

V. 

Each
sale of Notes to the Purchasing Agent shall be made in accordance with the terms of this Agreement and an applicable Terms Agreement, which will provide for the sale of such Notes to, and the
purchase and reoffering thereof by, the Purchasing Agent as principal. A Terms Agreement may also specify certain provisions relating to the reoffering of such Notes by the Purchasing Agent. The
offering of Notes by the Company hereunder and the Purchasing Agent's agreement to purchase Notes pursuant to any Terms Agreement shall be deemed to have been made on the basis of the representations,
warranties and agreements of the Company herein contained and shall be subject to the terms and conditions herein set forth. Each Terms Agreement shall describe the Notes to be purchased pursuant
thereto by the Purchasing Agent as principal, and may specify, among other things, the principal amount of Notes to be purchased, the interest rate or formula and maturity date or dates of such Notes,
the interest payment dates, if any, the net proceeds to the Company, the initial public offering price at which the Notes are proposed to be reoffered, and the time and place of delivery of and
payment for such Notes (the "Settlement Date"), whether the Notes provide the representative of a beneficial owner of such Notes with the option to elect repayment or repurchase of such Note following
the death of the beneficial owner of such Note (a "Survivor's Option"), whether the Notes are redeemable or repayable and on what terms and conditions, and any other relevant terms. In connection with
the resale of the Notes purchased, without the consent of the Company, the Agents are not authorized to appoint subagents or to engage the service of any other broker or dealer, nor may the Agents
reallow any portion of the Concession paid to them. Terms Agreements, each of which shall be substantially in the form of Exhibit F hereto, or as otherwise agreed to between the Company and the
Purchasing Agent, may take the form of an exchange of any standard form of written telecommunication between the Purchasing Agent and the Company. 

VI. 

        (a)   The
Company represents and warrants to the Agents as of the date hereof, as of the date of each acceptance by the Company of an offer for the purchase of Notes
(including any purchase by the Purchasing Agent as principal, pursuant to a Terms Agreement or otherwise), as of each Settlement Date, and as of any time that the Registration Statement or the
Prospectus shall be amended or
supplemented or there is filed with the Commission any document incorporated by reference into the Prospectus (other than any Current Report on Form 8-K relating exclusively to the
issuance of debt securities under the Registration Statement or filed solely for the purpose of disclosure under Item 9 or 12 thereof) (each of the times referenced above being referred to herein as a
"Representation Date") as follows: 

6

  

          (i)  The
Company meets the requirements for use of Form S-3 (or any successor form) under the 1933 Act and has filed with the Commission the Registration
Statement, which has been declared effective. No stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for that purpose have been instituted or
threatened. 

         (ii)  The
Registration Statement and the Prospectus, on their respective dates of effectiveness and filing did, and as of the applicable Representation Date will, conform in
all material respects to the requirements of the 1933 Act, the Trust Indenture Act and the respective rules and regulations (the "Rules and Regulations") of the Commission; as of the respective dates
of their effectiveness and filing, neither the Registration Statement nor the Prospectus did, nor as of the applicable Representation Date will, include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading or, in the case of the Prospectus, in light of the circumstances under
which they were made, not misleading, except that the representations and warranties contained in this paragraph do not apply to (i) statements or omissions in the Registration Statement or the
Prospectus based upon written information furnished to the Company by any of you or the Trustee expressly for use therein or (ii) that part of the Registration Statement that constitutes the
Statement of Eligibility under the Trust Indenture Act on Form T-1 of the Trustee, except statements or omissions in such Statement made in reliance upon information furnished in
writing to the Trustee by or on behalf of the Company for use therein. 

        (iii)  The
documents incorporated by reference in the Prospectus, at the time they were filed with the Commission, complied in all material respects with the requirements of
the 1934 Act, and the rules and regulations of the Commission thereunder (the "1934 Act Regulations") and, when read together with the other information in the Prospectus, do not and will not, on the
date hereof, include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. 

        (iv)  The
accountants (individually an "Accountant" and together the "Accountants"), who have reported upon the audited financial statements and schedules included or
incorporated by reference in the Registration Statement, are each independent public accountants as required by the 1933 Act and the 1933 Act Regulations with respect to (i) the Company and
(ii) each corporation whose financial statements have been included in the Registration Statement for each of the years reported on by the Accountants. 

         (v)  The
Company is a corporation duly incorporated and existing under and by virtue of the laws of the State of Maryland and is in good standing with the State Department of
Assessments and Taxation of
Maryland and has the corporate power to conduct the businesses presently being conducted by it. The Company is qualified as a foreign corporation to transact business and is in good standing in each
other jurisdiction in which it owns or leases property of a nature, or transacts business of a type, that would make such qualification necessary, except to the extent that the failure to so qualify
or be in good standing would not have a material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and its consolidated
subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business (a "Material Adverse Effect"). 

        (vi)  The
execution and delivery of this Agreement, the Notes or the Indenture, the consummation of the transactions herein or therein contemplated, or compliance with the
terms, conditions or provisions of any such instruments, will not violate the charter or Bylaws 

7

 

of
the Company, nor contravene any of the terms and provisions of, or constitute (with due notice or lapse of time, or both) a default under, any indenture, mortgage, deed of trust or other agreement
or instrument to which the Company is a party or is bound or to which any of its assets or properties are subject, or any order, applicable law, rule or regulation applicable to the Company of any
court, regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over the Company or over its assets or result in the encumbrance upon the assets or properties of the
Company (except, no representation, warranty or agreement is being made in this paragraph as to the Blue Sky or securities laws of any State of the United States or the District of Columbia, the
Commonwealth of Puerto Rico or foreign jurisdictions). 

       (vii)  Each
significant subsidiary (as such term is defined in clauses (1) and (2) of Rule 1-02(w) of Regulation S-X
promulgated under the 1933 Act), if any, of the Company (each, a "Significant Subsidiary") is duly organized and is validly existing and in good standing under the laws of the jurisdiction of its
incorporation with corporate power and corporate authority under such laws to own, lease and operate its properties and conduct its business. Each Significant Subsidiary is duly qualified to transact
business as a foreign corporation and is in good standing in each other jurisdiction in which it owns or leases property of a nature, or transacts business of a type, that would make such
qualification necessary, except to the extent that the failure to so qualify or be in good standing would not have a Material Adverse Effect. Except as otherwise stated in the Registration Statement
and Prospectus, all of the outstanding shares of capital stock of each Significant Subsidiary have been duly authorized and validly issued and are fully paid and nonassessable and are owned by the
Company, directly or through one or more Significant Subsidiaries, free and clear of any pledge, lien, security interest, charge, claim, equity or encumbrance of any kind (each, a "Lien"), except for
such Liens as are not, individually or in the aggregate, material to the Company and its Significant Subsidiaries, considered as one enterprise. 

      (viii)  Neither
the Company nor any of its Significant Subsidiaries is in violation of its charter or Bylaws. None of the Company or any of its Significant Subsidiaries is in
default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, note, lease, loan or credit agreement or any other
agreement or instrument (the "Agreements and Instruments") to which the Company or any of its Significant Subsidiaries is a party
or by which any of them may be bound, or to which any of the property or assets of the Company or any Significant Subsidiary is subject, or in violation of any applicable law, rule or regulation or
any judgment, order or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Company or any of its Significant Subsidiaries or any of their
respective properties or assets, which violation or default would, singly or in the aggregate, have a Material Adverse Effect. 

        (ix)  This
Agreement has been duly authorized, executed and delivered on behalf of the Company and is a valid and binding agreement of the Company enforceable in accordance
with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or other similar laws affecting the rights of creditors
now or hereafter in effect, and to equitable principles that may limit the right to specific enforcement of remedies, and except insofar as the enforceability of the indemnity and contribution
provisions contained in this Agreement may be limited by federal and state securities laws); 

         (x)  The
sale and issuance of the Notes have been duly authorized and, when authenticated as contemplated by the Indenture and delivered and paid for in accordance with this
Agreement, will have been duly executed, authenticated, issued and delivered and will 

8

 

constitute
valid and binding obligations of the Company enforceable in accordance with their terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium, fraudulent conveyance or other similar laws affecting the rights of creditors now or hereafter in effect, and to equitable principles that may limit the right to specific enforcement of
remedies) and will be entitled to the benefits provided by the Indenture. 

        (xi)  The
Indenture has been duly authorized, executed and delivered by the Company, has been duly qualified under the Trust Indenture Act, as applicable, and constitutes a
valid and binding instrument of the Company enforceable against the Company in accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium, fraudulent conveyance or other similar laws affecting the rights of creditors now or hereafter in effect, and to equitable principles that may limit the right to specific enforcement of
remedies). 

       (xii)  There
is no consent, approval, authorization, order, registration or qualification of or with any court or any regulatory authority or other governmental body having
jurisdiction over the Company which is required for, or the absence of which would materially affect, the issue and sale of the Notes as contemplated by this Agreement or the execution, delivery or
performance of the Indenture, except such as have been obtained and made under the 1933 Act, the Trust Indenture Act and such as may be required under state securities laws. 

      (xiii)  All
consolidated financial statements of the Company provided to the Agents by the Company (including those incorporated by reference in the Registration Statement)
fairly present the consolidated financial condition of the Company and its consolidated subsidiaries in all material respects and have been prepared in conformity with U.S. generally accepted
accounting principles. 

      (xiv)  There
are no suits or claims threatened or pending against the Company in any court or before or by any governmental body which would have a materially adverse effect
on the business of the Company or its financial position on a consolidated basis, except as set forth or contemplated by the Registration Statement and the Prospectus. 

       (xv)  Since
the respective dates as of which information is given in the Registration Statement and the Prospectus and except as otherwise stated therein, (A) there
has been no material adverse change and no development with respect to the Company that would result in a Material Adverse Effect, (B) there have been no transactions entered into by the
Company or any of its subsidiaries, other than those arising in the ordinary course of business, that are material with respect to the Company and its subsidiaries, considered as one enterprise, and
(C) except for regular dividends on the common stock in amounts per share that are consistent with past practice or the applicable charter document or supplement thereto, respectively, there
has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. 

      (xvi)  The
Company is not an "investment company" within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act"). 

        (b)   Any
certificate signed by any director or officer of the Company and delivered to the Purchasing Agent or to counsel for the Purchasing Agent in connection with an
offering of Notes or the sale of Notes to the Purchasing Agent as principal shall be deemed a representation and warranty by the Company to the Agents as to the matters covered thereby on the date of
such certificate. 

        (c)   All
representations, warranties, covenants and agreements of the Company contained in this Agreement or in certificates of officers of the Company submitted pursuant
hereto shall 

9

 

remain
operative and in full force and effect, regardless of any investigation made by or on behalf of any Agent or any controlling person of any Agent, or by or on behalf of the Company, and shall
survive each delivery of and payment for any of the Notes. 

VII. 

        (a)   Each
acceptance by the Company of an offer for the purchase of Notes, and each delivery of Notes to the Purchasing Agent pursuant to a sale of Notes to the Purchasing
Agent, shall be deemed to be an affirmation that the representations and warranties of the Company made to the Agents in this Agreement and in any certificate theretofore delivered pursuant hereto are
true and correct at the time of such acceptance or sale, as the case may be, and an undertaking that such representations and warranties will be true and correct at the time of delivery to the
Purchasing Agent of the Note or Notes relating to such acceptance or sale, as the case may be, as though made at and as of each such time (and it is understood that such representations and warranties
shall relate to the Registration Statement and Prospectus as amended and supplemented to each such time). 

        (b)   Each
time: 

          (i)  the
Company accepts a Terms Agreement requiring such certificate; 

         (ii)  the
Company files an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q with the Commission that is incorporated by
reference into the Prospectus; 

        (iii)  the
Company files a Current Report on Form 8-K required by Item 2 of Form 8-K with the Commission that is incorporated by
reference into the Prospectus; or 

        (iv)  if
required by the Agents after the Registration Statement or Prospectus has been amended or supplemented in an instance other then set forth in (ii) or
(iii) above (other than by an amendment or supplement providing solely for interest rates, maturity dates or other terms of Notes or similar changes or an amendment or supplement which relates
exclusively to an offering of securities other than the Notes), 

the
Company shall furnish or cause to be furnished to the Agents a certificate of any Senior Vice President or Treasurer or any other authorized officer of the Company satisfactory to the Agents (an
"Authorized Officer") dated the date specified in the applicable Terms Agreement or dated the date of filing with the Commission of such supplement or document or the date of effectiveness of such
amendment, as the case may be, in form satisfactory to the Agents to the effect that the statements contained in the certificate referred to in Section II(b) hereof which was last furnished to
the Agents are true and correct as of the date specified in the applicable Terms Agreement or at the time of such filing, amendment or supplement, as the case may be, as though made at and as of such
time (except that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to such time) or, in lieu of such certificate, a certificate of
the same tenor
as the certificate referred to in said Section II(b), modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery of
such certificate. 

        (c)   Each
time: 

          (i)  the
Company accepts a Terms Agreement requiring such opinion; 

         (ii)  the
Company files an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q with the Commission that is incorporated by
reference into the Prospectus; or 

10

 

        (iii)  if
required by the Agents after: 

(A)    the
Company files a Current Report on Form 8-K required by Item 2 of Form 8-K with the Commission that is incorporated by reference into the
Prospectus; or 

(B)    the
Registration Statement or Prospectus has been amended or supplemented in an instance other than as set forth in (ii) above (other than by an amendment or supplement
providing solely for interest rates, maturity dates or other terms of the Notes or similar changes or an amendment or supplement which relates exclusively to an offering of securities other than the
Notes), 

the
Company shall furnish or cause to be furnished forthwith to the Agents and your counsel the written opinion of Eric J. Bock, Executive Vice President, Law and Corporate Secretary of the Company,
or other counsel satisfactory to the Agents, dated the date specified in the applicable Terms Agreement or dated the date of filing with the Commission of such supplement or document or the date of
effectiveness of such amendment, as the case may be, in form and substance satisfactory to the Agents, of the same tenor as the opinions referred to in Section II(a) hereof, but modified, as
necessary, to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery of such opinions; or, in lieu of such opinions, counsel last furnishing such
opinions to the Agents shall furnish the Agents with a letter substantially to the effect that the Agents may rely on such last opinion to the same extent as though it was dated the date of such
letter authorizing reliance (except that statements in such last opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery
of such letter authorizing reliance). 

        (d)   Each
time: 

          (i)  the
Company accepts a Terms Agreement requiring such comfort letter; 

         (ii)  the
Company files an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q with the Commission that is incorporated by
reference into the Prospectus; or 

        (iii)  if
required by the Agents after: 

(A)    the
Company files a Current Report on Form 8-K required by Item 2 of Form 8-K with the Commission that is incorporated by reference into the
Prospectus; or 

(B)    the
Registration Statement or Prospectus has been amended or supplemented to include additional financial information required to be set forth or incorporated by reference into the
Prospectus under the terms of Item 11 of Form S-3 under the 1933 Act, 

the
Company shall cause Deloitte & Touche to furnish the Agents a letter, dated the date specified in the applicable Terms Agreement or dated the date of effectiveness of such amendment,
supplement or document filed with the Commission, as the case may be, in form satisfactory to the Agents, of the same tenor as the letter referred to in Section II(c) hereof but modified to
relate to the Registration Statement and Prospectus, as amended and supplemented to the date of such letter and with such changes as may be necessary to reflect changes in the financial statements and
other information derived from the accounting records of the Company; provided, however, that if the Registration Statement or the Prospectus is amended
or supplemented solely to include financial information as of and for a fiscal quarter, Deloitte & Touche may limit the scope of such letter to the unaudited financial statements included in
such amendment or supplement. With regard to such letter issued pursuant to paragraph (ii) of this section in connection with the filing of the Company's Quarterly Report on
Form 10-Q, Deloitte & Touche need not include the 

11

 

certain
procedures on certain financial information as described in paragraph 8 of their letter dated June 9, 2003. If any other information included therein is of an accounting,
financial or statistical nature, the Agents may request procedures be performed with respect to such other information. If Deloitte & Touche is willing to perform and report on the requested
procedures, such letter should cover such other information. Any letter required to be provided by Deloitte & Touche hereunder shall be provided within 10 business days of the filing of the
Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, within a reasonable time of a request made pursuant to subparagraph
(iii) hereof or on the date specified in an applicable Terms Agreement. 

VIII. 

        (a)   The
Company agrees to indemnify and hold harmless each Agent and each person, if any, who controls any Agent within the meaning of Sections 15 of the 1933 Act or
Section 20 of the 1934 Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement as originally
filed or in any amendment thereof, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment or supplement thereof, or
arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and agrees to reimburse each such indemnified party for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided, however, that (i) the Company will not be liable in any
such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein
in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Agent specifically for use in connection with the preparation thereof, or arises out of or
is based upon statements in or omissions from that part of the Registration Statement which shall constitute the Statement of Eligibility and
Qualification of the Trustee (Form T-1) under the Trust Indenture Act, and (ii) such indemnity with respect to the Prospectus shall not inure to the benefit of any Agent (or
any person controlling such Agent) from whom the person asserting any such loss, claim, damage or liability purchased the Notes which are the subject thereof if the Agent failed to deliver a copy of
the Prospectus as amended or supplemented to such person in connection with the sale of such Notes excluding documents incorporated therein by reference at or prior to the written confirmation of the
sale of such Notes to such person in any case where such delivery is required by the 1933 Act and the untrue statement or omission of a material fact contained in the Prospectus was corrected in the
Prospectus as amended or supplemented. This indemnity agreement will be in addition to any liability which the Company may otherwise have. 

12

  

        (b)   Each
Agent severally and not jointly agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signed the Registration Statement
and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, to the same extent as the foregoing indemnity from the
Company to each Agent, but only with reference to written information relating to such Agent furnished to the Company by or on behalf of such Agent specifically for use in the preparation of the
documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which any Agent may otherwise have. Counsel shall be designated by the Agent with the
consent of the Company (which shall not be unreasonably withheld). The Company acknowledges that the name of such Agent appearing on the front cover of the Prospectus Supplement, the name of such
Agent appearing in the Summary section of the Prospectus Supplement on page S-6 and the entire first paragraph with the exception of the last sentence, the first and second sentence of the
second paragraph, the entire third and fourth paragraphs, the entire fifth paragraph with respect to the Agents, and the sixth paragraph, all under the Section "Plan of Distribution" in the Prospectus
constitute the only information furnished in writing by or on behalf of such Agent for inclusion in the documents referred to in the foregoing indemnity. 

        (c)   Promptly
after receipt by an indemnified party under this Section VIII of notice of the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party under this Section VIII, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the
indemnifying party will not relieve it from any liability which it may have to any indemnified party except to the extent, if any, that such failure materially prejudices the indemnifying party. In
case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein, and,
to the extent that it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with
counsel satisfactory to such indemnified party; provided, however, that if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of
such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense of such action and
approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section VIII for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence, (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of commencement of the action, or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party; and except that if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clause (i) or (iii). In no
event shall the indemnifying parties be liable for the fees and expenses of more than one counsel (other than local counsel) for all indemnified parties in connection with any one action or separate
but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. An indemnifying party shall not be liable for any settlement of any action or
claim effected without its consent (which shall not be unreasonably withheld). No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any
action or claim in respect of which any indemnified 

13

 

party
is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such action or claim. 

        (d)   To
provide for just and equitable contribution in circumstances in which the indemnification provided for in paragraph (a) of this Section VIII is due in
accordance with its terms but is for any reason held by a court to be unavailable from the Company on the grounds of policy or otherwise, the Company and the Agents shall contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) to which the Company and one or more of the Agents
may be subject in such proportion so that each Agent is responsible for that portion represented by the percentage that the total commissions and underwriting discounts received by such Agent bears to
the total sales price from the sale of Notes sold to or through the Agents to the date of such liability, and the Company is responsible for the balance. However, if the allocation provided by the
foregoing sentence is not permitted by applicable
law, the Company and the Agents shall contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or
defending same) to which the Company and one or more of the Agents may be subject in such proportion to reflect the relative fault of the Company on the one hand and the Agents on the other in
connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other
relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the Company or such Agent, the parties' relative intents, knowledge, access to information and opportunity to
correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances. The Company and the Agents agree that it would not be equitable if the amount of
such contribution were determined by pro rata or per capita allocation (even if the Agents were treated as one entity for such purpose) or by any other method of allocation that does not take into
account the equitable considerations referred to above in this paragraph (d). Notwithstanding anything to the contrary contained herein, (i) in no case shall an Agent be responsible for
any amount in excess of the commissions and underwriting discounts received by such Agent in connection with the Notes from which such losses, liabilities, claims, damages and expenses arise and
(ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section VIII, each person who controls any Agent within the meaning of the 1933 Act shall have the same rights to contribution as such Agent,
and each person who controls the Company within the meaning of either the 1933 Act or the 1934 Act, each officer of the Company who shall have signed the Registration Statement and each director of
the Company shall have the same rights to contribution as the Company, subject in each case to the provisions of this paragraph (d). Any party entitled to contribution will, promptly after
receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this
paragraph (d), notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this paragraph (d). 

IX. 

The
Company may elect to suspend or terminate the offering of Notes under this Agreement at any time; the Company also (as to any one or more of the Agents) or any Agent (as to itself) may terminate
the appointment and arrangements described in this Agreement. Upon receipt of instructions 

14

 

from
the Company, the Purchasing Agent shall suspend or terminate the participation of any Selected Dealer under the Master Selected Dealer Agreement attached hereto as Exhibit H. Such actions
may be taken, in the case of the Company, by giving prompt written notice of suspension to all of the Agents and by giving not less than 5 days' written notice of termination to the affected
party and the other parties to this Agreement, or in the case of an Agent, by giving not less than 5 days' written notice of termination to the Company and except that, if at the time of
termination an offer for the purchase of Notes shall have been accepted by the Company but the time of delivery to the purchaser or his agent of the Note or Notes relating thereto shall not yet have
occurred, the Company shall have the obligations provided herein with respect to such Note or Notes. The Company shall promptly notify the other parties in writing of any such termination. 

The
Purchasing Agent may, and, upon the request of an Agent with respect to any Notes being purchased by such Agent shall, terminate any agreement hereunder by the Purchasing Agent to purchase such
Notes, immediately upon notice to the Company at any time at or prior to the Settlement Date relating thereto, (i) if there has been, since the date of such agreement or since the respective
dates as of which information is given in the Registration Statement or Prospectus (exclusive of any amendment or supplement thereto since the date of such agreement), any material adverse change in
the condition, financial or otherwise, or in the earnings or business affairs of the Company and its subsidiaries considered as one enterprise, or (ii) if there shall have occurred, since the
date of such agreement, any outbreak or material escalation of hostilities or other national or international calamity or crisis, financial or otherwise, the effect of which is such as to make it, in
the sole judgment of the Purchasing Agent or such Agent, impracticable to market such Notes or enforce contracts for the sale of such Notes, or (iii) if, since the date of such agreement,
trading in any securities of the Company has been suspended by the Commission or a national securities exchange, or if trading generally on either the American Stock Exchange or the New York Stock
Exchange shall have been suspended, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices for securities have been required, by either of said exchanges or by order of
the Commission or any other governmental authority, or a material disruption has occurred in securities settlement or clearance services in the United States, (iv) if there shall have come to
the Purchasing Agent's or such Agent's attention any facts that would cause the Purchasing Agent or such Agent to believe that the Prospectus, at the time it was required to be delivered to a
purchaser of such Notes, included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances existing
at the time of such delivery, not misleading, or (v) if either (1) the rating assigned by any nationally recognized securities rating agency to any debt securities of the Company shall
have been lowered or (2) any such rating agency shall have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any debt securities of
the Company, unless, in either case, such lowering or public announcement shall have taken place prior to the date of such agreement, or (vi) if, since the date of such agreement, a banking
moratorium shall have been declared by either Federal or New York authorities. 

Any
Terms Agreement shall be subject to termination in your absolute discretion on the terms set forth or incorporated by reference therein. The termination of this Agreement shall not require
termination of any agreement by the Purchasing Agent to purchase Notes as principal, and the termination of any such agreement shall not require termination of this Agreement. 

If
this Agreement is terminated, Section III(f), Section VIII, Section XII and Section XIII hereof shall survive and shall remain in effect; provided that if at the time of
termination of this Agreement an offer to purchase Notes has been accepted by the Company but the time of delivery to the Purchasing Agent of such Notes has not occurred, the provisions of all of
Section III, Section IV(b) and Section V shall also survive until time of delivery. 

In
the event a proposed offering is not completed according to the terms of this Agreement, an Agent will be reimbursed by the Company only for out-of-pocket accountable
expenses actually incurred. 

15

 

X. 

Except
as otherwise specifically provided herein, all statements, requests, notices and advices hereunder shall be in writing, or by telephone if promptly confirmed in writing, and if to an Agent
shall be sufficient in all respects if delivered in person or sent by telex, facsimile transmission (confirmed in writing), electronic mail or registered mail to such Agent at its address, telex,
facsimile number or electronic mail address set forth on Annex A hereto and if to the Company shall be sufficient in all respects if delivered or sent by telex, facsimile transmission (confirmed in
writing), electronic mail or registered mail to the Company at the address specified below. All such notices shall be effective on receipt. 

If
to the Company: 

PHH
Corporation

1 Campus Drive

Parsippany, New Jersey 07054

Attention: Kevin Monaco, Vice President and Assistant Treasurer with a copy to the Treasurer

Telephone: 973-428-9700

E-mail: kevin.monaco@cendant.com 

With
a copy to: 

Skadden,
Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036-6522

Attention: Gregory A. Fernicola

Telephone: (212) 735-3000

E-mail: gfernico@skadden.com 

or
at such other address as such party may designate from time to time by notice duly given in accordance with the terms of this Section. 

XI. 

This
Agreement shall be binding upon the Agents and the Company, and inure solely to the benefit of the Agents and the Company and any other person expressly entitled to indemnification hereunder and
the respective personal representatives, successors and assigns of each, and no other person shall acquire or have any rights under or by virtue of this Agreement. 

XII. 

This
Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York. Each party to this Agreement irrevocably agrees that any legal action or proceeding
against it arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered against it in connection with this Agreement may be brought in any Federal or
New York State court sitting in the County of New York, New York, and, by execution and delivery of this Agreement, such party hereby irrevocably accepts and submits to the jurisdiction of each of the
aforesaid courts in person, generally and unconditionally with respect to any such action or proceeding for itself and in respect of its property, assets and revenues. Each party hereby also
irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding brought in any such court and any
claim that any such action or proceeding has been brought in an inconvenient forum. 

16

 

XIII. 

If
this Agreement is executed by or on behalf of any party, such person hereby states that at the time of the execution of this Agreement he has no notice of revocation of the power of attorney by
which he has executed this Agreement as such attorney. 

The
Company will pay the following expenses incident to the performance of its obligations under this Agreement, including: (i) the preparation and filing of the Registration Statement;
(ii) the preparation, issuance and delivery of the Notes; (iii) the fees and disbursements of Deloitte & Touche, of the Trustee and its counsel and of any paying or other agents
appointed by the Company; (iv) the printing and delivery to the Agents in quantities as hereinabove stated of copies of the Registration Statement and the Prospectus; (v) the reasonable
fees and disbursements of Shearman & Sterling, counsel for the Agents; (vi) if the Company lists Notes on a securities exchange, the costs and fees of such listing; (vii) the fees
and expenses, if any, including the reasonable fees and disbursements of Shearman & Sterling, incurred with respect to any filing with the National Association of Securities
Dealers, Inc.; (viii) the cost of providing CUSIP or other identification numbers for the Notes; (ix) all reasonable expenses (including fees and disbursements of
Shearman & Sterling) in connection with "Blue Sky" qualifications; and (x) any fees charged by rating agencies for the rating of the Notes. 

This
Agreement may be executed by each of the parties hereto in any number of counterparts, and by each of the parties hereto on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Facsimile signatures shall be deemed original signatures. 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

17

 

If
the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, and upon acceptance hereof by you, this letter and such acceptance hereof shall constitute
a binding agreement between the Company and you. 

	 	 	Very truly yours,
	

 	
 	

PHH CORPORATION
	

 	
 	

By:	

/s/  ERIC J. BOCK      

	 	 	Name:	Eric J. Bock
	 	 	Title:	Executive Vice President, Law and Corporate Secretary

18

 

Confirmed
and accepted as of the date first above written: 

	BANC OF AMERICA SECURITIES LLC	 
	

By:	

/s/  PETER J. CARBONE      
	

 

	Name:	Peter J. Carbone	 
	Title:	Vice President	 

	Name:	Thomas Ricketts	 
	Title:	President and Chief Executive Officer	 

	

INCAPITAL LLC	

 
	

By:	

/s/  THOMAS RICKETTS      
	

 

	Name:	Thomas Ricketts	 
	Title:	President and Chief Executive Officer	 

	

CHARLES SCHWAB & CO., INC.	

 
	

By:	

/s/  MARK F. MESINGER      
	

 

	Name:	Mark F. Mesinger	 
	Title:	Vice President—Fixed Income	 

	

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED	

 
	

By:	

/s/  SCOTT G. PRIMROSE      
	

 

	Name:	Scott G. Primrose	 
	Title:	 	 

19

 

	

PRUDENTIAL SECURITIES INCORPORATED	

 
	

By:	

/s/  FRANCESCO P. SINATRA      
	

 

	Name:	Francesco P. Sinatra	 
	Title:	Managing Director	 

	

CITIGROUP CAPITAL MARKETS INC.	

 
	

By:	

/s/  MARTHA BAILEY      
	

 

	Name:	Martha Bailey	 
	Title:	Senior Vice President	 

	

UBS FINANCIAL SERVICES INC.	

 
	

By:	

/s/  JAMES LEBLANC      
	

 

	Name:	James LeBlanc	 
	Title:	Senior Vice President	 

	

WACHOVIA SECURITIES, INC.	

 
	

By:	

/s/  GEORGE J. CURCI      
	

 

	Name:	George J. Curci	 
	Title:	Senior Vice President	 

20

  

 
 

ANNEX A
  AGENT CONTACT INFORMATION    
    

Banc
of America Securities LLC

Bank of America Corporate Center

100 North Tryon Street

NC1-007-08-20

Charlotte, North Carolina 28255-0001

Attention: Doug Fink

Fax: (704) 388-9982

E-mail: doug.j.fink@bankofamerica.com 

Incapital
LLC

One North LaSalle Street

Suite 3500

Chicago, Illinois 60602

Fax: (312) 379-3701

E-mail: brian.walker@incapital.com 

Charles
Schwab & Co., Inc.

101 Montgomery Street

San Francisco, California 94104

Attention: John Cu

Fax: (415) 667-5090

E-mail: john.cu@schwab.com 

Merrill
Lynch, Pierce, Fenner & Smith Incorporated

Global Transaction Management Group

4 World Financial Center Floor 15

New York, New York 10080

Attention: Scott G. Primrose

Fax: (212) 449-2234

E-mail: sprimrose@exchange.ml.com 

Prudential
Securities Incorporated

One New York Plaza

New York, New York 10292

Attention: Frederick J. Tate/Frank P. Sinatra

Fax: (212) 778-4456/4556

E-mail: jack.tate@prusec.com 

Citigroup
Capital Markets Inc.

Medium-Term Note Department

388 Greenwich Street

New York, New York 10013

Fax: (212) 816-2007

E-mail: wade.canter@citigroup.com 

UBS
Financial Services Inc.

Taxable Fixed Income Department

Attention: Corporate Desk

800 Harbor Boulevard

Weehawken, New Jersey 07087

Fax: (201) 352-6900 

21

 

With
a copy to:

UBS Financial Services, Inc.

Transaction Management Group

299 Park Avenue

New York, New York 10171

Fax: (212) 821-5536

Attention: Karen Rockey

E-mail: krockey@ubspw.com 

Wachovia
Securities, Inc.

301 S. College

NC0602

Charlotte, NC 28288

Attention: Kent Phillips

E-mail: kent.phillips@wachovia.com 

22

  

 
 

EXHIBIT A    
    

 
 

FORM OF OPINION OF PIPER RUDNICK LLP,
  SPECIAL COUNSEL TO THE COMPANY    
    

Based upon and subject to the limitations, qualification, exceptions and assumptions set forth above, we are of the opinion that 

        (1)   The
Company is a corporation duly incorporated and existing under and by virtue of the laws of the State of Maryland and is in good standing with the State Department of
Assessments and Taxation of Maryland; 

        (2)   The
Company has the corporate power to conduct its business substantially as described in the Prospectus under the caption "Business"; 

        (3)   The
execution, delivery and performance by the Company of the Selling Agent Agreement and the Indenture have been duly authorized by the Company; 

        (4)   The
sale and issuance of the Notes have been duly authorized by the Company; and 

        (5)   Neither
the sale and issuance of the Notes, the consummation of any other of the transactions contemplated by the Selling Agent Agreement nor the compliance with the
terms thereof will violate any provision of the charter or the Bylaws of the Company, each as amended to date. 

A-1

  

 
 

EXHIBIT B    
    

 
 

FORM OF OPINION OF ERIC J. BOCK, EXECUTIVE PRESIDENT, LAW AND CORPORATE SECRETARY OF THE COMPANY    
    

B-1

  

EXHIBIT C  

 
 

FORM OF OPINION OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP    
    

C-1

  

 
 

EXHIBIT D    
    

 
 

DEALER AGENT PROGRAM    
    

The following Concessions are payable as a percentage of the non-discounted Price to Public of each Note sold through the Purchasing Agent. 

	9 months to less than 23 months	 	0.200	%
	23 months to less than 35 months	 	0.400	%
	35 months to less than 47 months	 	0.625	%
	47 months to less than 59 months	 	0.750	%
	59 months to less than 71 months	 	1.000	%
	71 months to less than 83 months	 	1.100	%
	83 months to less than 95 months	 	1.200	%
	95 months to less than 107 months	 	1.300	%
	107 months to less than 119 months	 	1.400	%
	119 months to less than 131 months	 	1.500	%
	131 months to less than 143 months	 	1.600	%
	143 months to less than 179 months	 	1.750	%
	179 months to less than 239 months	 	2.000	%
	239 months to less than 360 months	 	2.500	%
	360 months or greater	 	3.000	%

D-1

  

 
 

EXHIBIT E    
    

 
  PHH Corporation
  
  $500,000,000
  
  PHH INTERNOTES®
  
  DUE FROM NINE MONTHS OR MORE FROM DATE OF ISSUE
  
  ADMINISTRATIVE PROCEDURES  
  

PHH InterNotes®, Due from nine months or more from date of issue are offered on a continuing basis by PHH Corporation (the "Company"). The Notes
will be offered through Incapital LLC (the "Purchasing Agent"), Banc of America Securities LLC, Charles Schwab & Co., Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Prudential Securities Incorporated, Salomon Smith Barney, Inc., UBS PaineWebber Inc. and Wachovia Securities, Inc., (collectively, the "Agents") pursuant to a Selling Agent
Agreement among the Company and the Agents dated as of the date hereof (the "Selling Agent Agreement") and one or more terms agreements substantially in the form attached to the Selling Agent
Agreement as Exhibit F (each a "Terms Agreement"). The Agents have agreed, pursuant to the Selling Agent Agreement, to use their reasonable best efforts to solicit purchases of the Notes. The
Notes may be purchased by the Purchasing Agent as principal and resold by the Purchasing Agent (and by any Agent that purchases them from the Purchasing Agent) (i) directly to customers of the
Agents or (ii) to selected broker-dealers (the "Selected Dealers") for distribution to their customers pursuant to a Master Selected Dealer Agreement (a "Dealers Agreement") attached to the
Selling Agent Agreement as Exhibit H. The Notes will rank equally with each other series of debt securities of the Company issued in accordance with the Indenture and with all our other present
and future unsecured and unsubordinated indebtedness and have been registered with the Securities and Exchange Commission (the "Commission"). The Bank One Trust Company is the trustee (the "Trustee")
under the Indenture dated as of November 6, 2000, (the "Base Indenture," such Base Indenture as supplemented by Supplemental Indenture No. 1, dated as of November 6, 2000 and
Supplemental Indenture No. 3, dated as of May 30, 2002, being referred to herein as the "Indenture") between the
Company and the Trustee, covering the Notes. Pursuant to the terms of the Indenture, Bank One Trust Company also will serve as authenticating agent and paying agent. 

Each
tranche of Notes will be issued in book-entry only form ("Notes") and represented by one or more fully registered global notes without coupons (each, a "Global Note") held by the
Trustee, as agent for The Depository Trust Corporation ("DTC") and recorded in the book-entry system maintained by DTC. Each Global Note will have the annual interest rate, maturity and
other terms set forth in the relevant Pricing Supplement (as defined in the Selling Agent Agreement). Owners of beneficial interests in a Global Note will be entitled to physical delivery of Notes
issued in certificated form equal in principal amount to their respective beneficial interests only upon certain limited circumstances described in the Indenture. 

Administrative
procedures and specific terms of the offering are explained below. Administrative and record-keeping responsibilities will be handled for the Company by its Treasury Department. The
Company will advise the Agents and the Trustee in writing of those persons handling administrative responsibilities with whom the Agents and the Trustee are to communicate regarding offers to purchase
Notes and the details of their delivery. 

Notes
will be issued in accordance with the administrative procedures set forth herein. To the extent the procedures set forth below conflict with or omit certain of the provisions of the Notes, the
Indenture, the Selling Agent Agreement or the Prospectus and the Pricing Supplement (together, the 

E-1

 

"Prospectus"),
the relevant provisions of the Notes, the Indenture, the Selling Agent Agreement and the Prospectus shall control. Capitalized terms used herein that are not otherwise defined shall
have the meanings ascribed thereto in the Selling Agent Agreement, the Prospectus or in the Indenture. 

Administrative Procedures for Notes  

In connection with the qualification of Notes for eligibility in the book-entry system maintained by DTC, the Trustee will perform the custodial, document control
and administrative functions described below, in accordance with its obligations under a Letter of Representations from the Company and the Trustee to DTC, dated June 9, 2003 and a
Medium-Term Note Certificate Agreement between the Trustee and DTC (the "Certificate Agreement") dated May 29, 1989 and its obligations as a participant in DTC, including DTC's
Same-Day Funds Settlement System ("SDFS"). The procedures set forth below may be modified in compliance with DTC's then-applicable procedures and upon agreement by the Company,
the Trustee and the Purchasing Agent. 

	Maturities:	 	Each Note will mature on a date (the "Maturity Date") not less than nine months after the date of delivery by the Company of such Note. Notes will mature on any date selected by the initial purchaser and agreed to by the
Company. "Maturity" when used with respect to any Note, means the date on which the outstanding principal amount of such Note becomes due and payable in full in accordance with its terms, whether at its Maturity Date or by declaration of acceleration,
 call for redemption, repayment or otherwise.
	

Issuance:	
 	

All Notes having the same terms will be represented initially by a single Global Note. Each Global Note will be dated and issued as of the date of its authentication by the Trustee.
	

 	
 	

Each Global Note will bear an original issue date (the "Original Issue Date"). The Original Issue Date shall remain the same for all Notes subsequently issued upon transfer, exchange or substitution of an original Note regardless of their dates of
authentication.
	

Identification

Numbers:	
 	

The Company has received from the CUSIP Service Bureau (the "CUSIP Service Bureau") of Standard & Poor's Corporation ("Standard & Poor's") one series of CUSIP numbers consisting of approximately 900 CUSIP numbers for future assignment to
Global Notes. The Company will provide the Purchasing Agent, DTC and the Trustee with a list of such CUSIP numbers. On behalf of the Company, the Purchasing Agent will assign CUSIP numbers as described below under Settlement Procedure "B". DTC will
notify the CUSIP Service Bureau periodically of the CUSIP numbers that the Company has assigned to Global Notes. The Company will reserve additional CUSIP numbers when necessary for assignment to Global Notes and will provide the Purchasing Agent,
the Trustee and DTC with the list of additional CUSIP numbers so obtained.
	 	 	 

E-2

 

	

Registration:	
 	

Unless otherwise specified by DTC, Global Notes will be issued only in fully registered form without coupons. Each Global Note will be registered in the name of Cede & Co., as nominee for DTC, on the Note Register maintained under the Indenture
by the Trustee. The beneficial owner of a Note (or one or more indirect participants in DTC designated by such owner) will designate one or more participants in DTC (with respect to such Note, the "Participants") to act as agent or agents for such
owner in connection with the book-entry system maintained by DTC, and DTC will record in book-entry form, in accordance with instructions provided by such Participants, a credit balance with respect to such beneficial owner of such Note in the
account of such Participants. The ownership interest of such beneficial owner in such Note will be recorded through the records of such Participants or through the separate records of such Participants and one or more indirect participants in
DTC.
	

Transfers:	
 	

Transfers of interests in a Global Note will be accomplished by book entries made by DTC and, in turn, by Participants (and in certain cases, one or more indirect participants in DTC) acting on behalf of beneficial transferors and transferees of such
interests.
	 	 	 

E-3

 

	

Exchanges:	
 	

The Trustee, at the Company's request, may deliver to DTC and the CUSIP Service Bureau at any time a written notice of consolidation specifying (a) the CUSIP numbers of two or more Global Notes outstanding on such date that represent Notes having the
same terms or (except that Issue Dates need not be the same) and for which interest, if any, has been paid to the same date and which otherwise constitute Notes of the same series and tenor under the Indenture, (b) a date, occurring at least 30 days
after such written notice is delivered and at least 30 days before the next Interest Payment Date, if any, for the related Notes, on which such Global Notes shall be exchanged for a single replacement Global Note; and (c) a new CUSIP number, obtained
from the Company, to be assigned to Such replacement Global Note. Upon receipt of such a notice, DTC will send to its participants (including the Issuing Agent) and the Trustee a written reorganization notice to the effect that such exchange will
occur on such date. Prior to the specified exchange date, the Trustee will deliver to the CUSIP Service Bureau written notice setting forth such exchange date and the new CUSIP number and stating that, as of such exchange date, the CUSIP numbers of
the Global Notes to be exchanged will no longer be valid. On the specified exchange date, the Trustee will exchange such Global Notes for a single Global Note bearing the new CUSIP number and the CUSIP numbers of the exchanged Global Notes will, in
accordance with CUSIP Service Bureau procedures, be cancelled and not immediately reassigned. Notwithstanding the foregoing, if the Global Notes to be exchanged exceed $500,000,000 in aggregate principal or face amount, one replacement Global Note
will be authenticated and issued to represent each $500,000,000 of principal or face amount of the exchanged Global Notes and an additional Global Note will be authenticated and issued to represent any remaining principal amount of such Global Notes
(See "Denominations" below).
	 	 	 

E-4

 

	

Denominations:	
 	

Unless otherwise agreed by the Company, Notes will be issued in denominations of $1,000 or more (in multiples of $1,000). Global Notes will be denominated in principal or face amounts not in excess of $500,000,000 or any other limit set by the DTC
(the "Permitted Amount"). If one or more Notes having an aggregate principal or face amount in excess of the Permitted Amount would, but for the preceding sentence, be represented by a single Global Note, then one Global Note will be issued to
represent each Permitted Amount of principal or face amount of such Note or Notes and an additional Global Note will be Issued to represent any remaining principal amount of such Note or Notes. In such case, each of the Global Notes representing such
Note or Notes shall be assigned the same CUSIP number.
	

Issue Price:	
 	

Unless otherwise specified in an applicable Pricing Supplement, each Note will be issued at the percentage of principal amount specified in the Prospectus Supplement relating to such Note.
	

Interest:	
 	
General.    Each Note will bear interest at a fixed rate. Interest on each Note will accrue from the Issue Date of such Note for the first interest period and from the
most recent Interest Payment Date to which interest has been paid for all subsequent interest periods. Except as set forth hereafter, each payment of interest on a Note will include interest accrued to, but excluding, as the case may be, the Interest
Payment Date or the date of Maturity (other than a Maturity Date of a Note occurring on the 31st day of a month in which case such payment of interest will include interest accrued to but excluding the 30th day of such month). Any payment of
principal, premium or interest required to be made on a day that is not a Business Day (as defined below) may be made on the next succeeding Business Day and no interest shall accrue as a result of any such delayed payment.
	

 	
 	

Each pending deposit message described under Settlement Procedure "C" below will be routed to Standard & Poor's Corporation, which will use the message to include certain information regarding the related Notes in the appropriate daily bond
report published by Standard & Poor's Corporation.
	 	 	 

E-5

 

	

 	
 	

Each Note will bear interest from, and including, its Issue Date at the rate per annum set forth thereon and in the applicable Pricing Supplement until the principal amount thereof is paid, or made available for payment, in full. Unless otherwise
specified in the applicable Pricing Supplement, interest on each Note will be payable either monthly, quarterly, semi-annually or annually on each Interest Payment Date and at Maturity (or on the date of redemption or repayment if a Note is
repurchased by the Company prior to maturity pursuant to mandatory or optional redemption or repayment provisions or the Survivor's Option). Interest will be payable to the person in whose name a Note is registered at the close of business on the
Regular Record Date next preceding each Interest Payment Date; provided, however, interest payable at Maturity, on a date of redemption or repayment or in connection with the exercise of the Survivor's Option will be payable to the person to whom
principal shall be payable.
	

 	
 	

Any payment of principal, and premium, if any, or interest required to be made on a Note on a day which is not a Business Day need not be made on such day, but may be made on the next succeeding Business Day with the same force and effect as if made
on such day, and no additional interest shall accrue as a result of such delayed payment. Unless otherwise specified in the applicable Pricing Supplement, any interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day
months. The interest rates the Company will agree to pay on newly-issued Notes are subject to change without notice by the Company from time to time, but no such change will affect any Notes already issued or as to which an offer to purchase has been
accepted by the Company.
	 	 	 

E-6

 

	

 	
 	

The Interest Payment Dates for a Note that provides for monthly interest payments shall be the fifteenth day of each calendar month (or the next Business Day), commencing in the calendar month that next succeeds the month in which the Note is issued.
In the case of a Note that provides for quarterly interest payments, the Interest Payment Dates shall be the fifteenth day of each third month (or the next Business Day), commencing in the third succeeding calendar month following the month in which
the Note is issued. In the case of a Note that provides for semi-annual interest payments, the Interest Payment dates shall be the fifteenth day of each sixth month (or the next Business Day), commencing in the sixth succeeding calendar month
following the month in which the Note is issued. In the case of a Note that provides for annual interest payments, the Interest Payment Date shall be the fifteenth day of every twelfth month (or the next Business Day), commencing in the twelfth
succeeding calendar month following the month in which the Note is issued. The Regular Record Date with respect to any Interest Payment Date shall be the first day of the calendar month in which such Interest Payment Date occurred, except that the
Regular Record Date with respect to the final Interest Payment Date shall be the final Interest Payment Date.
	

 	
 	

Each payment of interest on a Note shall include accrued interest from and including the Issue Date or from and including the last day in respect of which interest has been paid (or duly provided for), as the case may be, to, but excluding, the
Interest Payment Date or Maturity Date, as the case may be.
	

Calculation of Interest:	
 	

Interest on the Notes (including interest for partial periods) will be calculated on the basis of a 360-day year of twelve 30-day months. (Examples of interest calculations are as follows: October 1, 1998 to April 1, 1999 equals 6 months and 0 days,
or 180 days; the interest paid equals 180/360 times the annual rate of interest times the principal amount of the Note. The period from December 3, 1998 to April 1, 1999 equals 3 months and 28 days, or 118 days; the interest payable equals 118/360
times the annual rate of interest times the principal amount of the Note.)
	

Business Day:	
 	

"Business Day" means, unless otherwise specified in the applicable Pricing Supplement, any weekday that is (1) not a legal holiday in New York, New York and (2) not a day on which banking institutions in New York, New York are authorized or required
by law or regulation to be closed.
	 	 	 

E-7

 

	

Payments of Principal and Interest:	
 	
Payments of Principal and Interest.    Promptly after each Regular Record Date, the Trustee will deliver to the Company and DTC a written notice specifying by CUSIP
number the amount of interest, if any, to be paid on each Global Note on the following Interest Payment Date (other than an Interest Payment Date coinciding with a Maturity Date) and the total of such amounts. DTC will confirm the amount payable on
each Global Note on such Interest Payment Date by reference to the daily bond reports published by Standard & Poor's. On such Interest Payment Date, the Company will pay to the Trustee, and the Trustee in turn will pay to DTC, such total amount
of interest due (other than on the Maturity Date), at the times and in the manner set forth below under "Manner of Payment." If any Interest Payment Date for any Note is not a Business Day, the payment due on such day shall be made on the next
succeeding Business Day and no interest shall accrue on such payment for the period from and after such Interest Payment Date.
	

 	
 	
Payments on the Maturity Date.    On or about the first Business Day of each month, the Trustee will deliver to the Company and DTC a written list of principal, premium,
if any, and interest to be paid on each Global Note representing Notes maturing or subject to redemption (pursuant to a sinking fund or otherwise) or repayment ("Maturity") in the following month. The Trustee, the Company and DTC will confirm the
amounts of such principal, premium, if any, and interest payments with respect to each Global Note on or about the fifth Business Day preceding the Maturity Date of such Global Note. On the Maturity Date, the Company will pay to the Trustee, and the
Trustee in turn will pay to DTC, the principal amount of such Global Note, together with interest and premium, if any, due on such Maturity Date, at the times and in the manner set forth below under "Manner of Payment." If the Maturity Date of any
Global Note is not a Business Day, the payment due on such day shall be made on the next succeeding Business Day and no interest shall accrue on such payment for the period from and after such Maturity Date. Promptly after payment to DTC of the
principal and interest due on the Maturity Date of such Global Note and all other Notes represented by such Global Note, the Trustee will cancel and destroy such Global Note in accordance with the Indenture and so advise the Company.
	 	 	 

E-8

 

	

 	
 	
Manner of Payment.    The total amount of any principal, premium, if any, and interest due on Global Notes on any Interest Payment Date or at Maturity shall be paid by
the Company to the Trustee in immediately available funds on such date. The Company will make such payment on such Global Notes to an account specified by the Trustee. Prior to 10:00 a.m., New York City time, on the date of Maturity or as soon as
possible thereafter, the Trustee will make payment to DTC in accordance with existing arrangements between DTC and the Trustee, in funds available for immediate use by DTC, each payment of interest, principal and premium, if any, due on a Global Note
on such date. On each Interest Payment Date (other than on the Maturity Date) the Trustee will pay DTC such interest payments in same-day funds in accordance with existing arrangements between the Trustee and DTC. Thereafter, on each such date, DTC
will pay, in accordance with its SDFS operating procedures then in effect, such amounts in funds available for immediate use to the respective Participants with payments in amounts proportionate to their respective holdings in principal amount of
beneficial interest in such Global Note as are recorded in the book-entry system maintained by DTC. Neither the Company nor the Trustee shall have any direct responsibility or liability for the payment by DTC of the principal of, or premium, if any,
or interest on, the Notes to such Participants.
	

 	
 	
Withholding Taxes.    The amount of any taxes required under applicable law to be withheld from any interest payment on a Note will be determined and withheld by the
Participant, indirect participant in DTC or other person responsible for forwarding payments and materials directly to the beneficial owner of such Note.
	

Procedure for Rate Setting and Posting:	
 	

The Company and the Agents will discuss, from time to time, the aggregate principal amounts of, the Maturities, the Issue Price and the interest rates to be borne by Notes that may be sold as a result of the solicitation of orders by the Agents. If
the Company decides to set interest rates borne by any Notes in respect of which the Agents are to solicit orders (the setting of such interest rates to be referred to herein as "Posting") or if the Company decides to change interest rates previously
posted by it, it will promptly advise the Agents of the prices and interest rates to be posted.
	 	 	 

E-9

 

	

 	
 	

The Purchasing Agent will assign a separate CUSIP number for each tranche of Notes to be posted, and will so advise and notify the Company and the Trustee of said assignment by telephone and/or by telecopier or other form of electronic transmission.
The Purchasing Agent will include the assigned CUSIP number on all Posting notices communicated to the Agents and Selected Dealers.
	

Offering of Notes:	
 	

In the event that there is a Posting, the Purchasing Agent will communicate to each of the Agents and Selected Dealers the aggregate principal amount and Maturities of, along with the interest rates to be borne by, each tranche of Notes that is the
subject of the Posting. Thereafter, the Purchasing Agent, along with the other Agents and the Selected Dealers, will solicit offers to purchase the Notes accordingly.
	

Purchase of Notes by the Purchasing Agent:	
 	

The Purchasing Agent will, no later than 12:00 noon (New York City time) on the seventh day subsequent to the day on which such Posting occurs, or, if such seventh day is not a Business Day on the preceding Business Day, or on such other Business Day
and time as shall be mutually agreed upon by the Company and the Agents (any such day, a "Trade Day"), (i) complete, execute and deliver to the Company a Terms Agreement that sets forth, among other things, the amount of each tranche that the
Purchasing Agent is offering to purchase or (ii) inform the Company that none of the Notes of a particular tranche will be purchased by the Purchasing Agent.
	

Acceptance and Rejection of Orders:	
 	

Unless otherwise agreed by the Company and the Agents, the Company has the sole right to accept orders to purchase Notes and may reject any such order in whole or in part. Unless otherwise instructed by the Company, the Purchasing Agent will promptly
advise the Company by telephone of all offers to purchase Notes received by it, other than those rejected by it in whole or in part in the reasonable exercise of its discretion. No order for less than $1,000 principal amount of Notes will be
accepted.
	

 	
 	

Upon receipt of a completed and executed Terms Agreement from the Purchasing Agent, the Company will (i) promptly execute and return such Terms Agreement to the Purchasing Agent or (ii) inform the Purchasing Agent that its offer to purchase the Notes
of a particular tranche has been rejected, in whole or in part. The Purchasing Agent will thereafter promptly inform the other Agents and participating Selected Dealers of the action taken by the Company.
	 	 	 

E-10

 

	

Preparation of Pricing Supplement:	
 	

If any offer to purchase a Note is accepted by or on behalf of the Company, the Purchasing Agent will provide a Pricing Supplement (substantially in the form attached to the Selling Agent Agreement as Exhibit G) to the Company reflecting the terms of
such Note and the Company will have filed such Pricing Supplement with the Commission in accordance with the applicable paragraph of Rule 424(b) under the 1933 Act. The Company shall use its reasonable best efforts to send such Pricing Supplement by
e-mail or telecopy to the Trustee by 3:00 p.m. (New York City time) on the applicable Trade Day. The Purchasing Agent shall use its reasonable best efforts to send such Pricing Supplement and the Prospectus by e-mail or telecopy or overnight express
(for delivery by the close of business on the applicable Trade Day, but in no event later than 11:00 a.m. New York City time, on the Business Day following the applicable Trade Day) to each Agent (or other Selected Dealer) which made or presented the
offer to purchase the applicable Note and the Trustee at the following applicable address:
	

 	
 	
if to Banc of America Securities LLC, to:
	

 	
 	

100 North Tryon Street

NC-007-08-20

Charlotte, North Carolina 28255-0001

Attention: Doug Fink

Telephone: (704) 387-4601

Telecopier: (704) 388-9982

E-mail: doug.j.fink@bankofamerica.com
	

 	
 	
if to Incapital LLC, to:
	

 	
 	

One North LaSalle Street

Suite 3500

Chicago, Illinois 60646-7488

Telephone: (312) 379-3700

Telecopier: (312) 379-3701

E-mail: brian.walker@incapital.com

E-11

  

	 	 	if to Charles Schwab & Co., Inc., to:
	

 	
 	

Charles Schwab & Co., Inc.

101 Montgomery Street

San Francisco, California 94101

Attention: John Cu

Telephone: (415) 667-[        ]

Telecopier: (415) 667-5090

E-mail: john.cu@schwab.com
	

 	
 	
if to Merrill Lynch, Pierce, Fenner & Smith Incorporated, to:
	

 	
 	

Merrill Lynch Production Technologies

44B Colonial Drive

Piscataway, New Jersey 08854

Attention: Prospectus Operations/Nachman Kimerling

Telephone: (732) 885-2768

Telecopier: (732) 885-2774/5/6

E-mail: mtnsuppl@na2.us.ml.com
	

 	
 	
if to Prudential Securities Incorporated, to:
	

 	
 	

111 8th Avenue

New York, New York 10011-0804

Attention: Thomas Sloan

E-mail: thomas_sloan@prusec.com
	

 	
 	
if to Citigroup Capital Markets Inc., to:
	

 	
 	

Attention: Annabelle Avila

Brooklyn Army Terminal

140 58th Street

8th Floor

Brooklyn, New York 11220

Telephone: (718) 765-6725

Telecopier: (718) 765-6734

E-mail: annabelle.avila@citigroup.com
	

 	
 	
if to UBS Financial Services Inc., to:
	

 	
 	

Taxable Financial Income Department

Attention: Corporate Desk

800 Harbor Blvd.

Weehawken, New Jersey 07087

Telephone: (201) 352-7150

Telecopier: (201) 352-6900
	

 	
 	
if to Wachovia Securities, Inc. to:
	

 	
 	

Wachovia Securities, Inc.

301 S. College

NC0602

Charlotte, NC 28288

Attention: Neal Smith

E-mail: kent.phillips@wachovia.com
	 	 	 

E-12

 

	

 	
 	
and if to the Trustee, to:
	

 	
 	

Bank One Trust Company, N.A.

1 Bank One Plaza

Suite IL1-0126

Chicago, Illinois 60670-0126

Attention: Corporate Trust Department

E-mail: brenda_a_cosey@bankone.com
	

 	
 	

For record keeping purposes, one copy of each Pricing Supplement, as so filed, shall also be mailed or telecopied to:
	

 	
 	

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036-6522

Attention: Gregory A. Fernicola

Telephone: (212) 735-3000

Telecopier: (212) 735-2000

E-mail: gfernico@skadden.com
	

 	
 	
and to:
	

 	
 	

Banc of America Securities LLC

Bank of America Corporate Center

100 North Tryon Street

NC1-007-08-20

Charlotte, North Carolina 28255-0001

Attention: Doug Fink

Telephone: (704) 387-4601

Telecopier: (704) 388-9982

E-mail: doug.j.fink@bankofamerica.com
	

 	
 	

Each such Agent, pursuant to the terms of the Selling Agent Agreement, will cause to be delivered a copy of the Prospectus and the applicable Pricing Supplement to each purchaser of Notes from such Agent.
	

 	
 	

Outdated Pricing Supplements and the Prospectuses to which they are attached (other than those retained for files) will be destroyed.
	

Delivery of Confirmation and Prospectus to Purchaser by Purchasing Agent:	
 	

Subject to "Suspension of Solicitation; Amendment or Supplement" below, the Agents will deliver a Prospectus and Pricing Supplement as herein described with respect to each Note sold by it.
	

 	
 	

For each offer to purchase a Note accepted by or on behalf of the Company, the Purchasing Agent will confirm in writing with each Agent or Selected Dealer purchasing such Notes from such Agent, the terms of such Note, the amount being purchased by
such Agent or Selected Dealer purchasing such Notes from such Agent and other applicable details described above and delivery and payment instructions, with a copy to the Company.
	 	 	 

E-13

 

	

 	
 	

In addition, the Purchasing Agent or other Agent, as the case may be, will deliver to investors purchasing the Notes the Prospectus (including the Pricing Supplement) in relation to such Notes prior to or simultaneously with delivery of the
confirmation of sale or delivery of the Note.
	

Settlement:	
 	

The receipt of immediately available funds by the Company in payment for Notes and the authentication and issuance of the Global Note representing such Notes shall constitute "Settlement" with respect to such Note. All orders accepted by the Company
will be settled within one to three Business Days pursuant to the timetable for Settlement set forth below, unless the Company and the purchaser agree to Settlement on a later date, and shall be specified upon acceptance of such offer; provided,
however, in all cases the Company will notify the Trustee on the date issuance instructions are given.
	

Settlement Procedures:	
 	

In the event of a purchase of Notes by any Agent, as principal, appropriate Settlement details, if different from those set forth below, will be set forth in the applicable Terms Agreement to be entered into between such Agent and the Company
pursuant to the Selling Agent Agreement.
	

 	
 	

Settlement Procedures with regard to each Note sold by an Agent, as agent for the Company, or purchased by an Agent, as principal, shall be as follows:

	

 	
 	

A.	
 	

After the acceptance of an offer by the Company with respect to a Note, the Purchasing Agent will communicate the following details of the terms of such offer (the "Note Sale Information") to the Company by telephone confirmed in writing or by
facsimile transmission or other acceptable written means:
	

 	
 	

 	
 	

1.	
 	

Principal amount of the purchase;
	

 	
 	

 	
 	

2.	
 	

Interest Rate per annum;
	

 	
 	

 	
 	

3.	
 	

Interest Payment Frequency;
	

 	
 	

 	
 	

4.	
 	

Settlement Date;
	

 	
 	

 	
 	

5.	
 	

Maturity Date;
	

 	
 	

 	
 	

6.	
 	

Price to Public;
	

 	
 	

 	
 	

7.	
 	

Purchasing Agent's commission determined pursuant to Section IV(a) of the Selling Agent Agreement;
	 	 	 	 	 	 	 	 	 

E-14

 

	

 	
 	

 	
 	

8.	
 	

Net proceeds to the Company;
	

 	
 	

 	
 	

9.	
 	

Trade Date;
	

 	
 	

 	
 	

10.	
 	

If a Note is redeemable by the Company or repayable by the Noteholder, such of the following as are applicable:
	

 	
 	

 	
 	

 	
 	

(i)	
 	

The date on and after which such Note may be redeemed/repaid (the "Redemption/Repayment Commencement Date"),
	

 	
 	

 	
 	

 	
 	

(ii)	
 	

Initial redemption/repayment price (% of par), and
	

 	
 	

 	
 	

 	
 	

(iii)	
 	

Amount (% of par) that the initial redemption/repayment price shall decline (but not below par) on each anniversary of the Redemption/Repayment Commencement Date;
	

 	
 	

 	
 	

11.	
 	

Whether the Note has a Survivor's Option;
	

 	
 	

 	
 	

12.	
 	

If a Discount Note, the total amount of original issue discount, the yield to maturity and the initial accrual period of original issue discount;
	

 	
 	

 	
 	

13.	
 	

DTC Participant Number of the institution through which the customer will hold the beneficial interest in the Global Note; and
	

 	
 	

 	
 	

14.	
 	

Such other terms as are necessary to complete the applicable form of Note.
	 	 	 	 	 	 	 	 	 

E-15

 

	

 	
 	

B.	
 	

The Company will confirm the previously assigned CUSIP number to the Global Note representing such Note and then advise the Trustee and the Purchasing Agent by telephone (confirmed in writing at any time on the same date) or by telecopier or other
form of electronic transmission of the information received in accordance with Settlement Procedure "A" above, the assigned CUSIP number and the name of the Purchasing Agent. Each such communication by the Company will be deemed to constitute a
representation and warranty by the Company to the Trustee and the Agents that (i) such Note is then, and at the time of issuance and sale thereof will be, duly authorized for issuance and sale by the Company; (ii) such Note, and the Global Note
representing such Note, will conform with the terms of the Indenture; and (iii) upon authentication and delivery of the Global Note representing such Note, the aggregate principal amount of all Notes issued under the Indenture will not exceed the
aggregate principal amount of Notes authorized for issuance at such time by the Company.
	

 	
 	

C.	
 	

The Trustee will communicate to DTC and the Purchasing Agent through DTC's Participant Terminal System, a pending deposit message specifying the following Settlement information:
	

 	
 	

 	
 	

1.	
 	

The information received in accordance with Settlement Procedure "A".
	

 	
 	

 	
 	

2.	
 	

The numbers of the participant accounts maintained by DTC on behalf of the Trustee and the Purchasing Agent.
	

 	
 	

 	
 	

3.	
 	

The initial Interest Payment Date for such Note, number of days by which such date succeeds the related DTC record date (which term means the Regular Record Date), and if then calculated, the amount of interest payable on such Initial Interest
Payment Date (which amount shall have been confirmed by the Trustee).
	

 	
 	

 	
 	

4.	
 	

The CUSIP number of the Global Note representing such Notes.
	

 	
 	

 	
 	

5.	
 	

The frequency of interest.
	

 	
 	

 	
 	

6.	
 	

Whether such Global Note represents any other Notes issued or to be issued (to the extent then known).
	

 	
 	

D.	
 	

DTC will credit such Note to the participant account of the Trustee maintained by DTC.
	 	 	 	 	 	 	 	 	 

E-16

 

	

 	
 	

E.	
 	

The Trustee will complete and deliver a Global Note representing such Note in a form that has been approved by the Company, the Agents and the Trustee.
	

 	
 	

F.	
 	

The Trustee will authenticate the Global Note representing such Note and maintain possession of such Global Note.
	

 	
 	

G.	
 	

The Trustee will enter an SDFS deliver order through DTC's Participant Terminal System instructing DTC to (i) debit such Note to the Trustee's participant account and credit such Note to the participant account of the Purchasing Agent maintained by
DTC and (ii) debit the settlement account of the Purchasing Agent and credit the settlement account of the Trustee maintained by DTC, in an amount equal to the price of such Note less the Purchasing Agent's commission. The entry of such a deliver
order shall be deemed to constitute a representation and warranty by the Trustee to DTC that (a) the Global Note representing such Note has been issued and authenticated and (b) the Trustee is holding such Global Note pursuant to the Certificate
Agreement.
	

 	
 	

H.	
 	

The Purchasing Agent will enter an SDFS deliver order through DTC's Participant Terminal System instructing DTC to (i) debit such Note to the Purchasing Agent's participant account and credit such Note to the participant accounts of the Participants
to whom such Note is to be credited maintained by DTC and (ii) debit the settlement accounts of such Participants and credit the settlement account of the Purchasing Agent maintained by DTC, in an amount equal to the price of the Note less the agreed
upon commission so credited to their accounts.
	

 	
 	

I.	
 	

Transfers of funds in accordance with SDFS deliver orders described in Settlement Procedures "G" and "H" will be settled in accordance with SDFS operating procedures in effect on the Settlement Date.
	

 	
 	

J.	
 	

The Trustee will credit to an account of the Company maintained at Bank of America, N.A. funds available for immediate use in an amount equal to the amount credited to the Trustee's DTC participant account in accordance with Settlement Procedure
"G".
	

 	
 	

K.	
 	

The Trustee will send a copy of the Global Note representing such Note by first-class mail to the Company.
	 	 	 	 	 	 	 	 	 

E-17

 

	

 	
 	

L.	
 	

Each Agent (and, if applicable, Selected Dealer) will confirm the purchase of each Note to the ultimate purchaser thereof either by transmitting to the Participant to whose account such Note has been credited a confirmation order through DTC's
Participant Terminal System or by mailing a written confirmation to such purchaser. In all cases the Prospectus as most recently amended or supplemented must accompany or precede such confirmation.
	

 	
 	

M.	
 	

Each Business Day, the Trustee will send to the Company a statement setting forth the principal amount of Notes outstanding as of that date under the Indenture and setting forth the CUSIP number(s) assigned to, and a brief description of, any orders
which the Company has advised the Trustee but which have not yet been settled.

	

 	
 	

 
	Settlement Procedures Timetable:	 	In the event of a purchase of Notes by the Purchasing Agent, as principal, appropriate Settlement details, if different from those set forth below will be set forth in the applicable Terms Agreement to be entered into
between the Purchasing Agent and the Company pursuant to the Selling Agent Agreement.
	

 	
 	

Settlement Procedures "A" through "M" shall be completed as soon as possible but not later than the respective times (New York City time) set forth below:

	
 	
 	

 	
 	

 
	

Settlement	
 	

Procedure
	
 	

Time

	

 	
 	

A	
 	

4:00 p.m. on the Trade Day.
	

 	
 	

B	
 	

5:00 p.m. on the Trade Day.
	

 	
 	

C	
 	

2:00 p.m. on the Business Day before the Settlement Date.
	

 	
 	

D	
 	

10:00 a.m. on the Settlement Date.
	

 	
 	

E	
 	

12:00 p.m. on the Settlement Date.
	

 	
 	

F	
 	

12:30 a.m. on the Settlement Date.
	

 	
 	

G-H	
 	

2:00 p.m. on the Settlement Date.
	

 	
 	

I	
 	

4:45 p.m. on the Settlement Date.
	

 	
 	

J-L	
 	

5:00 p.m. on the Settlement Date.
	

 	
 	

M	
 	

Weekly or at the request of the Company.

	 	 	 

E-18

 

	

 	
 	
NOTE: The Prospectus as most recently amended or supplemented must accompany or precede any written confirmation given to the customer (Settlement Procedure "L"). Settlement Procedure "I" is
subject to extension in accordance with any extension Fedwire closing deadlines and in the other events specified in the SDFS operating procedures in effect on the Settlement Date.
	

 	
 	

If Settlement of a Note is rescheduled or cancelled, the Trustee will deliver to DTC, through DTC's Participant Terminal System, a cancellation message to such effect by no later than 2:00 p.m., New York City time, on the Business Day immediately
preceding the scheduled Settlement Date.
	

Failure to Settle:	
 	

If the Trustee fails to enter an SDFS deliver order with respect to a Note pursuant to Settlement Procedure "G", the Trustee may deliver to DTC, through DTC's Participant Terminal System, as soon as practicable a withdrawal message instructing DTC to
debit such Note to the participant account of the Trustee maintained at DTC. DTC will process the withdrawal message, provided that such participant account contains Notes having the same terms and having a principal amount that is at least equal to
the principal amount of such Note to be debited. If withdrawal messages are processed with respect to all the Notes issued or to be issued represented by a Global Note, the Trustee will cancel such Global Note in accordance with the Indenture, make
appropriate entries in its records and so advise the Company. The CUSIP number assigned to such Global Note shall, in accordance with CUSIP Service Bureau procedures, be cancelled and not immediately reassigned. If withdrawal messages are processed
with respect to one or more, but not all, of the Notes represented by a Global Note, the Trustee will exchange such Global Note for two Global Notes, one of which shall represent such Notes and shall be cancelled immediately after issuance, and the
other of which shall represent the remaining Notes previously represented by the surrendered Global Note and shall bear the CUSIP number of the surrendered Global Note.
	 	 	 

E-19

 

	

 	
 	

In the case of any Note sold through an Agent, if the purchase price for any Note is not timely paid to the Participants with respect to such Note by the beneficial purchaser thereof (or a person, including an indirect participant in DTC, acting on
behalf of such purchaser), such Participants and, in turn, the related Agent may enter SDFS deliver orders through DTC's participant Terminal System reversing the orders entered pursuant to Settlement Procedures "G" and "H", respectively. Thereafter,
the Trustee will deliver the withdrawal message and take the related actions described in the preceding paragraph. If such failure shall have occurred for any reason other than default by the Agent in the performance of its obligations hereunder or
under the Selling Agent Agreement, the Company will reimburse such Agent on an equitable basis for its reasonable out of pocket accountable expenses actually incurred and loss of the use of funds for the period the Company had use of such
funds.
	

 	
 	

Notwithstanding the foregoing, upon any failure to settle with respect to a Note, DTC may take any actions in accordance with its SDFS operating procedures then in effect. In the event of a failure to settle with respect to one or more, but not all,
of Notes that were to have been represented by a Global Note, the Trustee will provide, in accordance with Settlement Procedures "D" and "E", for the authentication and issuance of a Global Note representing the other Notes to have been represented
by such Global Note and will make appropriate entries in its records.
	

Procedure for Rate Changes:	
 	

Each time a decision has been reached to change rates, the Company will promptly advise the Agents of the new rates, who will forthwith suspend solicitation of purchases of Notes at the prior rates. The Agents may telephone the Company with
recommendations as to the changed interest rates.
	

Suspension of Solicitation Amendment or Supplement:	
 	

Subject to the Company's representations, warranties and covenants contained in the Selling Agent Agreement, the Company may instruct the Agents to suspend at any time for any period of time or permanently, the solicitation of orders to purchase
Notes. Upon receipt of such instructions (which may be given orally), each Agent will forthwith suspend solicitation until such time as the Company has advised it that solicitation of purchases may be resumed.
	 	 	 

E-20

 

	

 	
 	

In the event that at the time the Company suspends solicitation of purchases there shall be any orders outstanding for settlement, the Company will promptly advise the Agents and the Trustee whether such orders may be settled and whether copies of
the Prospectus as in effect at the time of the suspension may be delivered in connection with the settlement of such orders. The Company will have the sole responsibility for such decision and for any arrangements which may be made in the event that
the Company determines that such orders may not be settled or that copies of such Prospectus may not be so delivered.
	

 	
 	

If the Company decides to amend or supplement the Registration Statement or the Prospectus, it will promptly advise the Agents and furnish the Agents and the Trustee with the proposed amendment or supplement and with such certificates and opinions as
are required, all to the extent required by and in accordance with the terms of the Selling Agent Agreement. Subject to the provisions of the Selling Agent Agreement, the Company may file with the Commission any supplement to the Prospectus relating
to the Notes. The Company will provide the Agents and the Trustee with copies of any such supplement, and confirm to the Agents that such supplement has been filed with the Commission.
	

Trustee Not to Risk Funds:	
 	

Nothing herein shall be deemed to require the Trustee to risk or expend its own funds in connection with any payment to the Company, or the Agents or the purchasers, it being understood by all parties that payments made by the Trustee to either the
Company or the Agents shall be made only to the extent that funds are provided to the Trustee for such purpose.
	

Advertising Costs:	
 	

The Company shall have the sole right to approve the form and substance of any advertising an Agent may initiate in connection with such Agent's solicitation to purchase the Notes. The expense of such advertising will be solely the responsibility of
such Agent, unless otherwise agreed to by the Company.

E-21

  

 
 

EXHIBIT F    
    

 
 

TERMS AGREEMENT    
    

, 2003 

PHH
Corporation

1 Campus Drive

Parsippany, New Jersey 07054 

Attention:
Vice President and Assistant Treasurer 

The
undersigned agrees to purchase the following aggregate principal amount of PHH InterNotes®: 

$ 

The
terms of such PHH InterNotes® shall be as follows: 

CUSIP
Number: 

Interest
Rate:    % 

Maturity
Date: 

Price
to Public: 

Agent's
Concession:    % 

Net
Proceeds to Issuer: 

Settlement
Date, Time and Place: 

Survivor's
Option: 

Interest
Payment Frequency: 

Optional
Redemption/Repayment, if any: 

Initial
Redemption/Repayment Date[s]: 

Redemption/Repayment
Price: Initially    % of Principal Amount and declining by    % of the Principal Amount on each anniversary of the Initial Redemption/Repayment Date until
the Redemption/Repayment Price is 100% of the Principal Amount. 

Supplemental
Indenture No. 1 and Supplemental Indenture No. 3 shall apply to the PHH InterNotes® issued pursuant to this Terms Agreement. 

[Any
other terms and conditions agreed to by the Purchasing Agent and the Company] 

	 	 	INCAPITAL LLC
	

 	
 	

By:	

	

 	
 	

 	

 
	 	 	Title:	

ACCEPTED

PHH CORPORATION 

	

By:	
 	

	

 
	

 	
 	

 	

 
	Title:	 	
	 

F-1

  

Exhibit G  

 
 

Form of Pricing Supplement    
    

Filed
Under Rule 424(b)(3), Registration Statement No. 333-46434 

Pricing
Supplement No.            dated: 

To
Prospectus Dated November 1, 2000 and Prospectus Supplement Dated June     , 2003. 

	CUSIP

NUMBER
	 	PRINCIPAL AMOUNT OF NOTES OFFERED
	 	PRICE AT WHICH THE NOTES WILL BE ISSUED TO THE PUBLIC(1)
	 	AGGREGATE CONCESSION(2)
	 	NET PROCEEDS RECEIVED BY THE ISSUER
	 	INTEREST RATE
	 	INTEREST PAYMENT FREQUENCY

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

	MATURITY DATE
	 	1st INTEREST PAYMENT DATE
	 	1st INTEREST PAYMENT AMOUNT
	 	SURVIVOR'S OPTION
	 	RANKING

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

Redemption Information:  

Joint Lead Managers and Lead Agents:  

Supplemental Indenture No. 1 and Supplemental Indenture No. 3 shall apply to the PHH InterNotes® issued pursuant to this Pricing Supplement. 

	(1)
	Expressed
as a percentage of the aggregate initial public offering price of the Notes.

	(2)
	The
Concession is a discount equal to the percentages of the initial offering price of each Note actually sold that is paid to the Purchasing Agent and the other Agents as
consdieration for soliciting offers to purchase the Notes. The actual aggregate Concession will be shared by the Purchasing Agent and the other Agents in such proportions as they may agree. 

G-1

 

Other
Terms:

	PHH Corporation

1 Campus Drive

Parsippany, NJ 07054-0642	 	Trade Date:

Settlement Date:

Minimum Denominations/Increments:

Initial trades settle flat and clear SDFS:

DTC Book Entry only

DTC number:

Clearing Services, LLC	 	PHH Corporation

$500,000,000 PHH Corporation InterNotes®
	

 	
 	

If the maturity date or an interest payment date for any note is not a Business Day (as that term is defined in the Prospectus), principal, premium, if any, and interest for that note is paid on the next Business Day, and no interest will accrue from,
 and after, the maturity date or interest payment date.	
 	

 
	

 	
 	
InterNotes® is the service mark of

INCAPITAL, LLC. All rights reserved	
 	

 

G-2

  

EXHIBIT H  

 
 

Master Selected Dealer Agreement    
    

«FirstName»»

«Company»»

«Address1»»

«Address2»»

«City»», «State»» «Postal»» 

Dear
Selected Dealer: 

In
connection with public offerings of securities after the date hereof for which we are acting as manager of an underwriting syndicate or are otherwise responsible for the distribution of securities
to the public by means of an offering of securities for sale to selected dealers, you may be offered the right as such a selected dealer to purchase as principal a portion of such securities. This
will confirm our mutual agreement as to the general terms and conditions applicable to your participation in any such selected dealer group organized by us as follows. 

        1.    Applicability of this Agreement.    The terms and conditions of this Agreement shall be applicable to any public
offering of securities ("Securities"), pursuant to a registration statement filed under the Securities Act of 1933 (the "Securities Act"), or exempt from registration thereunder (other than a public
offering of Securities effected wholly outside the United States of America), wherein Incapital LLC clearing through BNY Clearing Services, LLC (the "Account") (acting for its own Account or for the
account of any underwriting or similar group or syndicate) is responsible for managing or otherwise
implementing the sale of the Securities to selected dealers ("Selected Dealers") and has expressly informed you that such terms and conditions shall be applicable. Any such offering of Securities to
you as a Selected Dealer is hereinafter called an "Offering". In the case of any Offering where we are acting for the account of any underwriting or similar group or syndicate ("Underwriters"), the
terms and conditions of this Agreement shall be for the benefit of, and binding upon, such Underwriters, including, in the case of any Offering where we are acting with others as representatives of
Underwriters, such other representatives. 

        2.    Conditions of Offering; Acceptance and Purchases.    Any Offering: (i) will be subject to delivery of the
Securities and their acceptance by us and any other Underwriters; (ii) may be subject to the approval of all legal matters by counsel and the satisfaction of other conditions, and
(iii) may be made on the basis of reservation of Securities or an allotment against subscription. We will advise you by electronic mail, facsimile or other form of written communication
("Written Communication", which term, in the case of any Offering described in Section 3(a) or 3(b) hereof, may include a prospectus or offering circular) of the particular method and
supplementary terms and conditions (including, without limitation, the information as to prices and offering date referred to in Section 3(c) hereof) of any Offering in which you are invited to
participate. To the extent such supplementary terms and conditions are inconsistent with any provision herein, such terms and conditions shall supersede any such provision. Unless otherwise indicated
in any such Written Communication, acceptances and other communications by you with respect to an Offering should be sent to Incapital LLC, One North LaSalle Street, Suite 3500, Chicago, IL 60602,
(Fax: (312) 379-3701). We reserve the right to reject any acceptance in whole or in part. Unless notified otherwise by us, Securities purchased by you shall be paid for on such date
as we shall determine, on one day's prior notice to you, by certified or official bank check, in an amount equal to the Public Offering Prices (as hereinafter defined) or, if we shall so advise you,
at such Public Offering Price less the Concession (as hereinafter defined), payable in New York Clearing House funds to the order of BNY Clearing Services, LLC clearing for the account of Incapital
LLC, against delivery of the Securities. If Securities are purchased and paid for at such Public 

H-1

 

Offering
Price, such Concession will be paid after the termination of the provisions of Section 3(c) hereof with respect to such Securities. Notwithstanding the foregoing, unless notified
otherwise by us, payment for and delivery of Securities purchased by you shall be made through the facilities of The Depository Trust Company, if you are a member, unless you have otherwise notified
us prior to the date specified in a Written Communication to you from us or, if you are not a member, settlement may be made through a correspondent who is a member pursuant to instructions which you
will send to us prior to such specified date. 

        3.    Representations, Warranties and Agreements.    

        (a)    Registered Offerings.    In the case of any Offering of Securities that are registered under the Securities Act
("Registered Offering"), we shall provide you with such number of copies of each preliminary prospectus and of the final prospectus relating thereto as you may reasonably request for the purposes
contemplated by the Securities Act and the Securities Exchange Act of 1934 (the "Exchange Act") and the applicable rules and regulations of the Securities and Exchange Commission thereunder. You
represent and warrant that you are familiar with Rule 15c2-8 under the Exchange Act
relating to the distribution of preliminary and final prospectuses and agree that you will comply therewith. You agree to make a record of your distribution of each preliminary prospectus and, when
furnished with copies of any revised preliminary prospectus, you will, upon our request, promptly forward copies thereof to each person to whom you have theretofore distributed a preliminary
prospectus. You agree that in purchasing Securities in a Registered Offering you will rely upon no statement whatsoever, written or oral, other than the statements in the final prospectus delivered to
you by us. You will not be authorized by the issuer or other seller of Securities offered pursuant to a prospectus or by any Underwriter to give any information or to make any representation not
contained in the prospectus in connection with the sale of such Securities. 

        (b)    Offerings Pursuant to Offering Circular.    In the case of any Offering of Securities, other than a Registered
Offering, which is made pursuant to an offering circular or other document comparable to a prospectus in a Registered Offering, we shall provide you with such number of copies of each preliminary
offering circular and of the final offering circular relating thereto as you may reasonably request. You agree that you will comply with the applicable Federal and state laws, and the applicable rules
and regulations of any regulatory body promulgated thereunder, governing the use and distribution of offering circulars by brokers or dealers. You agree that in purchasing Securities pursuant to an
offering circular you will rely upon no statements whatsoever, written or oral, other than the statements in the final offering circular delivered to you by us. You will not be authorized by the
issuer or other seller of Securities offered pursuant to an offering circular or by any Underwriter to give any information or to make any representation not contained in the offering circular in
connection with the sale of such Securities. 

        (c)    Offer and Sale to the Public.    With respect to any Offering of Securities, we will inform you by a Written
Communication of the public offering price, the selling concession, the reallowance (if any) to dealers and the time when you may commence selling Securities to the public. After such public offering
has commenced, we may change the public offering price, the selling concession and the reallowance to dealers. The offering price, selling concession and reallowance (if any) to dealers at any time in
effect with respect to an Offering are hereinafter referred to, respectively, as the "Public Offering Price", the "Concession" and the "Reallowance". With respect to each Offering of Securities, until
the provisions of this Section 3(c) shall be terminated pursuant to Section 4 hereof, you agree to offer Securities to the public at no more than the Public Offering Price. If so
notified by us, you may sell Securities to the public at a lesser negotiated price than the Public Offering Price, but in an amount not to exceed the "Concession." If a Reallowance is in effect, a
reallowance from the 

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Public
Offering Price not in excess of such Reallowance may be allowed as consideration for services rendered in distribution to dealers who are actually engaged in the investment banking or
securities business, who execute the written agreement prescribed by section 24(c) of Article III of the Rules of Fair Practice of the National Association of Securities
Dealers, Inc. (the "NASD") and who are either members in good standing of the NASD or foreign banks, dealers or institutions not eligible for membership in the NASD who represent to you that
they will promptly reoffer such Securities at the Public Offering Price and will abide by the conditions with respect to foreign banks, dealers and institutions set forth in Section 3(e)
hereof. 

        (d)    Over-allotment; Stabilization; Unsold Allotments.    We may, with respect to any Offering, be
authorized to over-allot in arranging sales to Selected Dealers, to purchase and sell Securities for long or short account and to stabilize or maintain the market price of the Securities.
You agree that, upon our request at any time and from time to time prior to the termination of the provisions of Section 3(c) hereof with respect to any Offering, you will report to us the
amount of Securities purchased by you pursuant to such Offering which then remain unsold by you and will, upon our request at any such time, sell to us for our account or the account of one or more
Underwriters such amount of such unsold Securities as we may designate at the Public Offering Price less an amount to be determined by us not in excess of the Concession. If, prior to the later of
(i) the termination of the provisions of Section 3(c) hereof with respect to any Offering or (ii) the covering by us of any short position created by us in connection with such
Offering for our account or the account of one or more Underwriters, we purchase or contract to purchase for our account or the account of one or more Underwriters in the open market or otherwise any
Securities purchased by you under this Agreement as part of such Offering, you agree to pay us on demand an amount equal to the Concession with respect to such Securities (unless you shall have
purchased such Securities pursuant to Section 2 hereof at the Public Offering Price in which case we shall not be obligated to pay such Concession to you pursuant to Section 2) plus
transfer taxes and broker's commissions or dealer's mark-up, if any, paid in connection with such purchase or contract to purchase. 

        (e)    NASD.    You represent and warrant that you are actually engaged in the investment banking or securities
business and either a member in good standing of the NASD or, if you are not such a member, you are a foreign bank, dealer or institution not eligible for membership in the NASD which agrees to make
no sales within the United States, its territories or its possessions or to persons who are citizens thereof or residents therein, and in making other sales to comply with the NASD's interpretation
with respect to free riding and withholding. You further represent, by your participation in an Offering, that you have provided to us all documents and other information required to be filed with
respect to you, any related person or any person associated with you or any such related person pursuant to the supplementary requirements of the NASD's interpretation with respect to review of
corporate financing as such requirements relate to such Offering. 

        You
agree that, in connection with any purchase or sale of the Securities wherein a Concession, discount or other allowance is received or granted, (1) you will comply with the
provisions of section 24 of Article III of the NASD's Rules of Fair Practice and (2) if you are a non-NASD member broker or dealer in a foreign country, you will also
comply (a), as though you were an NASD member, with the provisions of sections 8 and 36 thereof and (b) with section 25 thereof as that section applies to a non-NASD member
broker or dealer in a foreign country. 

        You
further agree that, in connection with any purchase of securities from us that is not otherwise covered by the terms of this Agreement (whether we are acting as manager, as a 

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member
of an underwriting syndicate or a selling group or otherwise), if a selling Concession, discount or other allowance is granted to you, clauses (1) and (2) of the preceding
paragraph will be applicable. 

        (f)    Relationship among Underwriters and Selected Dealers.    We may buy Securities from or sell Securities to any
Underwriter or Selected Dealer and, without consent, the Underwriters (if any) and the Selected Dealers may purchase Securities from and sell Securities to each other at the Public Offering Price less
all or any part of the Concession. Unless otherwise specified in a separate agreement between you and us, this agreement does not authorize you to act as agent for: (i) us; (ii) any
Underwriter; (iii) the issuer; or (iv) other seller of any Securities in offering Securities to the public or otherwise. Neither we nor any Underwriter shall be under any obligation to
you except for obligations assumed hereby or in any Written Communication from us in connection with any Offering. Nothing contained herein or in any Written Communication from us shall constitute the
Selected Dealers an association or partners with us or any Underwriter or with one another. If the Selected Dealers, among themselves or with the Underwriters, should be deemed to constitute a
partnership for Federal income tax purposes, then you elect to be excluded from the application of Subchapter K, Chapter 1, Subtitle A of the Internal Revenue Code of 1986 and agree not to take any
position inconsistent with that election. You authorize us, in our discretion, to execute and file on your behalf such evidence of that election as may be required by the Internal Revenue Service. In
connection with any Offering, you shall be liable for your proportionate amount of any tax, claim, demand or liability that may be asserted against you alone or against one or more Selected Dealers
participating in such Offering, or against us or the Underwriters, based upon the claim that the Selected Dealers, or any of them, constitute an association, an unincorporated business or other
entity, including, in each case, your proportionate amount of any expense incurred in defending against any such tax, claim, demand or liability. 

        (g)    Blue Sky Laws.    Upon application to us, we shall inform you as to any advice we have received from counsel
concerning the jurisdictions in which Securities have been qualified for sale or are exempt under the securities or blue sky laws of such jurisdictions, but we do not assume any obligation or
responsibility as to your right to sell Securities in any such jurisdiction. 

        (h)    Compliance with Law.    You agree that in selling Securities pursuant to any Offering (which agreement shall
also be for the benefit of the issuer or other seller of such Securities) you will comply with all applicable laws, rules and regulations, including the applicable provisions of the Securities Act and
the Exchange Act, the applicable rules and regulations of the Securities and Exchange Commission thereunder, the applicable rules and regulations of the NASD, the applicable rules and regulations of
any securities exchange having jurisdiction over the Offering and the applicable laws, rules and regulations specified in Section 3(b) hereof. 

Furthermore,
you acknowledge and agree that certain Offerings of Securities (i) may be made in the United States only and/or (ii) may be offerings of Securities of an affiliate of a
United States bank but are not savings accounts, deposits or other obligations of any such bank and would not be guaranteed by such bank or insured by the Federal Deposit Insurance Corporation or any
other governmental agency. 

        4.    Termination, Supplements and Amendments.    This Agreement shall continue in full force and effect until
terminated by a written instrument executed by each of the parties hereto. This Agreement may be supplemented or amended by us by written notice thereof to you, and any such supplement or amendment to
this Agreement shall be effective with respect to any Offering to which this Agreement 

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applies
after the date of such supplement or amendment. Each reference to "this Agreement" herein shall, as appropriate, be to this Agreement as so amended and supplemented. The terms and conditions
set forth in Section 3(c) hereof with regard to any Offering will terminate at the close of business on the 30th day after the commencement of the public offering of the Securities to which
such Offering relates, but in our discretion may be extended by us for a further period not exceeding 30 days and in our discretion, whether or not extended, may be terminated at any earlier
time. 

        5.    Successors and Assigns.    This Agreement shall be binding on, and inure to the benefit of, the parties hereto
and other persons specified in Section 1 hereof, and the respective successors and assigns of each of them. 

        6.    Governing Law.    This Agreement and the terms and conditions set forth herein with respect to any Offering
together with such supplementary terms and conditions with respect to such Offering as may be contained in any Written Communication from us to you in connection therewith shall be governed by, and
construed in accordance with, the laws of the State of Illinois. 

Please
confirm by signing and returning to us the enclosed copy of this Agreement that your subscription to, or your acceptance of any reservation of, any Securities pursuant to an Offering shall
constitute (i) acceptance of and agreement to the terms and conditions of this Agreement (as supplemented and amended pursuant to Section 4 hereof) together with and subject to any
supplementary terms and conditions contained in any Written Communication from us in connection with such Offering, all of which shall constitute a binding agreement between you and us, individually
or as representative of any Underwriters, (ii) confirmation that your representations and warranties set forth in Section 3 hereof are true and correct at that time,
(iii) confirmation that your agreements set forth in Sections 2 and 3 hereof have been and will be fully performed by you to the extent and at the times required thereby and (iv) in the
case of any Offering described in Section 3(a) and 3(b) hereof, acknowledgment that you will request and have received from us sufficient copies of the final prospectus or offering circular, as
the case may be, with respect to such Offering in order to comply with your undertakings in Section 3(a) or 3(b) hereof. 

	 	 	Very truly yours,
	

 	
 	

INCAPITAL LLC
	

 	
 	

By:	

 
	 	 	 	
 Thomas S. Ricketts

Managing Member

	CONFIRMED:	 	
	 	,  20	

«Company»»

	By:	
	 	 

	Name:	 	 	 
	 	
 (Print name)	 	 

	 	 	 	 
	Title:	
	 	 

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QuickLinks

SELLING AGENT AGREEMENT by and among PHH Corporation and the Agents named herein June 9, 2003

PHH CORPORATION (a Maryland corporation)

SELLING AGENT AGREEMENT

ANNEX A AGENT CONTACT INFORMATION

EXHIBIT A

FORM OF OPINION OF PIPER RUDNICK LLP, SPECIAL COUNSEL TO THE COMPANY

EXHIBIT B

FORM OF OPINION OF ERIC J. BOCK, EXECUTIVE PRESIDENT, LAW AND CORPORATE SECRETARY OF THE COMPANY

FORM OF OPINION OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

EXHIBIT D

DEALER AGENT PROGRAM

EXHIBIT E

PHH Corporation $500,000,000 PHH INTERNOTES® DUE FROM NINE MONTHS OR MORE FROM DATE OF ISSUE ADMINISTRATIVE PROCEDURES

EXHIBIT F

TERMS AGREEMENT

Form of Pricing Supplement

Master Selected Dealer Agreement

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