Document:

<PAGE>

                                                                     Exhibit 4.1

NUMBER
EU
                                  COMMON STOCK
                                PAR VALUE $00.01
   SEE REVERSE FOR STATEMENTS RELATING TO RIGHTS, PREFERENCES, PRIVILEGES AND
                             RESTRICTIONS, IF ANY.
                                     [LOGO]
         INCORPORATED UNDER THE LAWS OF THE COMMONWEALTH OF PUERTO RICO
                                     SHARES
                               CUSIP 298716 10 1
                      SEE REVERSE FOR CERTAIN DEFINITIONS
THIS IS TO CERTIFY that
is the owner of
FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, OF THE PAR VALUE OF $00.01
EACH, OF EUROBANCSHARES, INC., transferable on the books of the Corporation in
person or by duly authorized attorney upon surrender of this certificate
properly endorsed. This certificate is not valid until countersigned and
registered by the Transfer Agent and Registrar.

WITNESS the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers.
Dated:
                                                                       /s/
                                                                       Secretary
                                                                          [SEAL]
                                                                       /s/
                                                                       PRESIDENT

COUNTERSIGNED AND REGISTERED: AMERICAN STOCK TRANSFER & TRUST COMPANY (NEW YORK,
NY) TRANSFER AGENT AND REGISTRAR

                                                              BY
                                                              AUTHORIZED OFFICER

<PAGE>
                              EUROBANCSHARES, INC.

The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in
common
UNIF GIFT MIN ACT - (Cust) Custodian (Minor) under Uniform Gifts to Minors Act
(State)

Additional abbreviations may also be used though not in the above list.
For Value Received hereby sell assign and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)
Shares of the Common Stock represented by the within certificate, and do hereby
irrevocably constitute and appoint Attorney to transfer the said shares on the
books of the within named Corporation with full power of substitution in the
premises.
Dated

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
OR ENLARGEMENT OR ANY CHANGE WHATEVER.

Signature(s) Guaranteed:
THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN
AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE
17Ad-15.

The Certificate of Incorporation of the Corporation authorizes it to issue more
than one class of stock which may be issued in one or more series. The
Corporation will furnish to any stockholder upon request and without charge a
full statement of the powers, designation, preferences and relative
participating, optional or other special rights of the Common Stock evidenced by
this certificate and of each other class of stock or shares which the
Corporation is authorized to issue and the qualifications, limitations or
restrictions of such preferences and rights. Any request should be made to the
Secretary of the Corporation.3 YEAR ASSET-LINKED REVOLVING CREDIT AGREEMENT

 

Exhibit 10.1

CONFORMED COPY

$440,000,000

THREE YEAR SENIOR ASSET-LINKED REVOLVING CREDIT AGREEMENT

Dated as of June 17, 2004

among

CENDANT CORPORATION,

as Borrower

THE LENDERS REFERRED TO HEREIN

BANK OF AMERICA, N.A.,

as Administrative Agent

and

CITICORP USA, INC.,

as Syndication Agent

BANC OF AMERICA SECURITIES LLC and

CITIGROUP GLOBAL MARKETS INC.,

as Co-Lead Arrangers and Co-Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	THE LOANS
	 	 	20	 
	 
	 	 	 	 	 	 
	

	 	SECTION 2.1. Commitments.
	 	 	20	 
	

	 	SECTION 2.2. Loans.
	 	 	21	 
	

	 	SECTION 2.3. Use of Proceeds.
	 	 	22	 
	

	 	SECTION 2.4. Revolving Credit Borrowing Procedure.
	 	 	22	 
	

	 	SECTION 2.5. Refinancings.
	 	 	22	 
	

	 	SECTION 2.6. Fees.
	 	 	23	 
	

	 	SECTION 2.7. Repayment of Loans; Evidence of Debt.
	 	 	23	 
	

	 	SECTION 2.8. Interest on Loans.
	 	 	24	 
	

	 	SECTION 2.9. Interest on Overdue Amounts.
	 	 	24	 
	

	 	SECTION 2.10. Alternate Rate of Interest.
	 	 	24	 
	

	 	SECTION 2.11. Termination and Reduction of Commitments; Increase of
Commitments.
	 	 	25	 
	

	 	SECTION 2.12. Prepayment of Loans.
	 	 	26	 
	

	 	SECTION 2.13. Eurodollar Reserve Costs.
	 	 	27	 
	

	 	SECTION 2.14. Reserve Requirements; Change in Circumstances.
	 	 	27	 
	

	 	SECTION 2.15. Change in Legality.
	 	 	29	 
	

	 	SECTION 2.16. Reimbursement of Lenders.
	 	 	30	 
	

	 	SECTION 2.17. Pro Rata Treatment.
	 	 	31	 
	

	 	SECTION 2.18. Right of Setoff.
	 	 	31	 
	

	 	SECTION 2.19. Manner of Payments.
	 	 	31	 
	

	 	SECTION 2.20. Taxes.
	 	 	31	 
	

	 	SECTION 2.21. Certain Pricing Adjustments.
	 	 	33	 
	 
	 	 	 	 	 	 
	3.

	 	REPRESENTATIONS AND WARRANTIES OF BORROWER
	 	 	34	 
	 
	 	 	 	 	 	 
	

	 	SECTION 3.1. Corporate Existence and Power.
	 	 	34	 
	

	 	SECTION 3.2. Corporate Authority, No Violation and Compliance with Law.
	 	 	35	 
	

	 	SECTION 3.3. Governmental and Other Approval and Consents.
	 	 	35	 
	

	 	SECTION 3.4. Financial Statements of Borrower.
	 	 	35	 
	

	 	SECTION 3.5. No Material Adverse Change.
	 	 	35	 
	

	 	SECTION 3.6. Copyrights, Patents and Other Rights.
	 	 	36	 
	

	 	SECTION 3.7. Title to Properties.
	 	 	36	 
	

	 	SECTION 3.8. Litigation.
	 	 	36	 
	

	 	SECTION 3.9. Federal Reserve Regulations.
	 	 	36	 
	

	 	SECTION 3.10. Investment Company Act.
	 	 	36	 
	

	 	SECTION 3.11. Enforceability.
	 	 	37	 
	

	 	SECTION 3.12. Taxes.
	 	 	37	 
	

	 	SECTION 3.13. Compliance with ERISA.
	 	 	37	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	

	 	SECTION 3.14. Disclosure.
	 	 	37	 
	

	 	SECTION 3.15. Environmental Liabilities.
	 	 	38	 
	 
	 	 	 	 	 	 
	4.

	 	CONDITIONS OF LENDING
	 	 	38	 
	 
	 	 	 	 	 	 
	

	 	SECTION 4.1. Conditions Precedent to Closing.
	 	 	38	 
	

	 	SECTION 4.2. Conditions Precedent to Each Extension of Credit.
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	 	AFFIRMATIVE COVENANTS
	 	 	40	 
	 
	 	 	 	 	 	 
	

	 	SECTION 5.1. Financial Statements, Reports, etc.
	 	 	40	 
	

	 	SECTION 5.2. Corporate Existence; Compliance with Statutes.
	 	 	42	 
	

	 	SECTION 5.3. Insurance.
	 	 	42	 
	

	 	SECTION 5.4. Taxes and Charges.
	 	 	42	 
	

	 	SECTION 5.5. ERISA Compliance and Reports.
	 	 	42	 
	

	 	SECTION 5.6. Maintenance of and Access to Books and Records; Examinations.
	 	 	43	 
	

	 	SECTION 5.7. Maintenance of Properties.
	 	 	43	 
	

	 	SECTION 5.8. Changes in Character of Business.
	 	 	43	 
	

	 	SECTION 5.9. Collateral Coverage.
	 	 	43	 
	 
	 	 	 	 	 	 
	6.

	 	NEGATIVE COVENANTS
	 	 	43	 
	 
	 	 	 	 	 	 
	

	 	SECTION 6.1. Limitation on Indebtedness.
	 	 	44	 
	

	 	SECTION 6.2. Consolidation, Merger, Sale of Assets.
	 	 	45	 
	

	 	SECTION 6.3. Limitations on Liens.
	 	 	46	 
	

	 	SECTION 6.4. Sale and Leaseback.
	 	 	47	 
	

	 	SECTION 6.5. Debt to Capitalization Ratio.
	 	 	47	 
	

	 	SECTION 6.6. Interest Coverage Ratio.
	 	 	47	 
	

	 	SECTION 6.7. Accounting Practices.
	 	 	47	 
	 
	 	 	 	 	 	 
	7.

	 	EVENTS OF DEFAULT
	 	 	48	 
	 
	 	 	 	 	 	 
	8.

	 	THE ADMINISTRATIVE AGENT
	 	 	50	 
	 
	 	 	 	 	 	 
	

	 	SECTION 8.1. Administration by Administrative Agent.
	 	 	50	 
	

	 	SECTION 8.2. Advances and Payments.
	 	 	51	 
	

	 	SECTION 8.3. Sharing of Setoffs.
	 	 	52	 
	

	 	SECTION 8.4. Notice to the Lenders.
	 	 	52	 
	

	 	SECTION 8.5. Liability of Administrative Agent.
	 	 	53	 
	

	 	SECTION 8.6. Reimbursement and Indemnification.
	 	 	53	 
	

	 	SECTION 8.7. Rights of Administrative Agent.
	 	 	54	 
	

	 	SECTION 8.8. Independent Investigation by Lenders.
	 	 	54	 
	

	 	SECTION 8.9. Notice of Transfer.
	 	 	55	 
	

	 	SECTION 8.10. Successor Administrative Agent.
	 	 	55	 
	

	 	SECTION 8.11. Collateral Matters.
	 	 	55	 
	

	 	SECTION 8.12. Agents Generally.
	 	 	56	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	9.

	 	MISCELLANEOUS
	 	 	56	 
	 
	 	 	 	 	 	 
	

	 	SECTION 9.1. Notices.
	 	 	56	 
	

	 	SECTION 9.2. Survival of Agreement, Representations and Warranties, etc.
	 	 	57	 
	

	 	SECTION 9.3. Successors and Assigns; Syndications; Loan Sales; Participations.
	 	 	57	 
	

	 	SECTION 9.4. Expenses; Documentary Taxes.
	 	 	61	 
	

	 	SECTION 9.5. Indemnity.
	 	 	61	 
	

	 	SECTION 9.6. CHOICE OF LAW.
	 	 	62	 
	

	 	SECTION 9.7. No Waiver.
	 	 	62	 
	

	 	SECTION 9.8. Extension of Maturity.
	 	 	62	 
	

	 	SECTION 9.9. Amendments, etc.
	 	 	62	 
	

	 	SECTION 9.10. Severability.
	 	 	63	 
	

	 	SECTION 9.11. SERVICE OF PROCESS; WAIVER OF JURY TRIAL.
	 	 	63	 
	

	 	SECTION 9.12. Headings.
	 	 	64	 
	

	 	SECTION 9.13. Execution in Counterparts.
	 	 	64	 
	

	 	SECTION 9.14. Entire Agreement.
	 	 	64	 
	

	 	SECTION 9.15. Confidentiality.
	 	 	64	 
	

	 	SECTION 9.16. Delivery of Addenda.
	 	 	65	 

iii

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SCHEDULES	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	2.1 
	 	Commitments	 	 
	

	 	6.1 
	 	Existing Indebtedness	 	 
	 
	 	 	 	 	 	 
	EXHIBITS	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	A
	 	Form of Note	 	 
	

	 	B-1
	 	Opinion of Skadden, Arps, Slate, Meagher & Flom LLP	 	 
	

	 	B-2
	 	Cendant In-House Opinion	 	 
	

	 	C
	 	Form of Assignment and Acceptance	 	 
	

	 	D
	 	Form of Compliance Certificate	 	 
	

	 	E
	 	Form of Revolving Credit Borrowing Request	 	 
	

	 	F
	 	Form of Addendum	 	 
	

	 	G
	 	Form of New Lender Supplement	 	 
	

	 	H
	 	Form of Commitment Increase Supplement	 	 
	

	 	I
	 	Form of Mortgage, Pledge and Security Agreement	 	 

iv

 

 

THREE YEAR SENIOR ASSET-LINKED REVOLVING CREDIT AGREEMENT (this
“Agreement”), dated as of June 17, 2004, among CENDANT CORPORATION, a
Delaware corporation (the “Borrower”), the lenders referred to herein
(the “Lenders”), CITICORP USA, INC., as syndication agent (the
“Syndication Agent”), and BANK OF AMERICA, N.A., as administrative agent
(the “Administrative Agent”; together with the Syndication Agent, the
“Agents”) for the Lenders.

INTRODUCTORY STATEMENT

The Borrower has requested that the Lenders establish a $440,000,000
committed revolving credit facility pursuant to which Revolving Credit Loans
may be made to the Borrower.

Subject to the terms and conditions set forth herein, the Administrative
Agent is willing to act as agent for the Lenders, and each Lender is willing to
make Loans to the Borrower.

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 Revolving Credit Loan bearing
interest at a rate determined by reference to the Alternate Base Rate in
accordance with the provisions of Section 2.

“Addendum” shall mean an instrument, substantially in the
form of Exhibit F hereto, by which a Lender becomes a party to this
Agreement.

“AESOP Financing Program” means the transactions
contemplated by that certain Amended and Restated Base Indenture, dated
as of July 30, 1997, between AESOP Funding II L.L.C., as issuer, and the
Bank of New York, as Trustee, as it may be from time to time further
amended, supplemented or modified, and the instruments and agreements
referenced therein and otherwise executed in connection therewith.

“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 greatest of (a) the Prime
Rate in effect for such day, (b) the Federal Funds Effective Rate in
effect for such day plus 1/2 of 1% or (c) the Base CD Rate in effect
for such day plus 1%. For purposes hereof, “Prime Rate” shall
mean the rate per annum publicly announced by the Administrative Agent
from time to time as its prime rate. 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 publicly
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 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. “Base CD Rate” shall mean the sum of
(a) the product of (i) the Average Weekly Three-Month Secondary CD Rate
times (ii) a fraction of which the numerator is 100% and the denominator
is 100% minus the aggregate rates of (A) basic and supplemental reserve
requirements in effect on the date of effectiveness of such Average
Weekly Three-Month Secondary CD Rate, as set forth below, under
Regulation D of the Board applicable to certificates of deposit in units
of $100,000 or more issued by a “member bank” located in a “reserve city”
(as such terms are used in Regulation D) and (B) marginal reserve
requirements in effect on such date of effectiveness under Regulation D
applicable to time deposits of a “member bank” and (b) the Assessment
Rate. “Average Weekly Three-Month Secondary CD Rate” shall mean
the three-month secondary certificate of deposit (“CD”) rate for
the most recent weekly period covered therein in the Federal Reserve
Statistical release entitled “Weekly Summary of Lending and Credit
Measures (Averages of daily figures)” released in the week during which
occurs the day for which the CD rate is being determined. The CD rate so
reported shall be in effect, for the purposes of this definition, for
each day of the week in which the release date of such publication
occurs. If such publication or a substitute containing the foregoing
rate information is not published by the Federal Reserve for any week,
such average rate shall be determined by the Administrative Agent on the
basis of quotations received by it from three New York City negotiable
certificate of deposit dealers of recognized standing on the first
Business Day of the week succeeding such week for which such rate
information is not published. 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 Base CD Rate or
Federal Funds Effective Rate, or both, 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) or (c), or both, until the circumstances giving rise to such
inability no longer exist. Any change in the Alternate Base Rate due to
a change in the Average Weekly Three-Month Secondary CD Rate shall be
effective on the effective date of such change in the CD Rate. Any
change

2

 

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, with respect to any Person,
all provisions of statutes, rules, regulations and orders of governmental
bodies or regulatory agencies applicable to such Person, and all orders
and decrees of all courts and arbitrators in proceedings or actions in
which the Person in question is a party or is subject.

“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 estimated by the Administrative Agent for
determining the then current annual assessment payable by 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 the Administrative Agent’s domestic offices.

“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.

“Avis” shall mean Avis Group Holdings, Inc., a Delaware
corporation.

“Avis Debt Documents” shall mean the instruments and
agreements pursuant to which any indebtedness of Avis or any of its
Subsidiaries has been issued, is outstanding or permitted to exist.

“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, the Borrower, PHH and Avis
Acquisition Corp., a Delaware corporation and an indirect 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 perfected 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 the Lenders on a single date and as to which a
single Interest Period is in effect.

“Business Day” shall mean any day other than a Saturday,
Sunday or other day on which banks in the State of New York or the State
of North Carolina are permitted to close; provided,
however, 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 Dollar deposits on the London Interbank Market.

3

 

“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 any of the following, to the
extent acquired for investment and not with a view to achieving trading
profits: (i) obligations fully backed by the full faith and credit of the
United States of America maturing not in excess of twelve months from the
date of acquisition, (ii) commercial paper maturing not in excess of
twelve months from the date of acquisition and rated “P-1” by Moody’s or
“A-1” by S&P on the date of such acquisition, (iii) the following
obligations of any Lender or any domestic commercial bank having capital
and surplus in excess of $500,000,000, which has, or the holding company
of which has, a commercial paper rating meeting the requirements
specified in clause (ii) above: (a) time deposits, certificates of
deposit and acceptances maturing not in excess of twelve months from the
date of acquisition, or (b) repurchase obligations with a term of not
more than thirty (30) days for underlying securities of the type referred
to in clause (i) above, (iv) money market funds that invest exclusively
in interest bearing, short-term money market instruments: (a) having an
average remaining maturity of not more than twelve months and (b)(1)
rated at least “P-1” by Moody’s or “A-1” by S&P or (2) which are issued
or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof, and (v) municipal
securities: (a) for which the pricing period in effect is not more than
twelve months long and (b) rated at least “P-1” by Moody’s or “A-1” by
S&P.

“Cendant Timeshare Resort Group” shall mean collectively
Fairfield, Trendwest Resorts and their respective Subsidiaries.

“Change in Control” shall mean (i) the acquisition by any
Person or group (within the meaning of the Securities Exchange Act of
1934 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 30% of the voting
common stock of the Borrower 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 the Borrower (together with any new directors whose
election by such Board of Directors or whose nomination for election by
the shareholders of the Borrower, 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 a nomination
for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors of the Borrower then in
office.

“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
June 17, 2004.

“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.

4

 

“Collateral” means all “Collateral” referred to in the
Collateral Documents, and all property that is or is intended to be
subject to any Lien in favor of the Administrative Agent for the benefit
of the Secured Parties under the Collateral Documents (including the
Eligible Collateral).

“Collateral Documents” means the Mortgage, Pledge and
Security Agreement and each other agreement that creates or purports to
create a Lien in favor of the Administrative Agent for the benefit of the
Secured Parties.

“Commitment” shall mean, with respect to each Lender, the
commitment of such Lender as set forth (i) on Schedule 2.1 hereto and/or
(ii) any applicable Assignment and Acceptance to which it may be a party,
as the case may be, as such Lender’s Commitment may be permanently
terminated, reduced or increased from time to time pursuant to Section
2.11 or Section 7. The Commitments shall automatically and permanently
terminate on the earlier of (a) the Maturity Date or (b) the date of
termination in whole pursuant to Section 2.11 or Section 7.

“Commitment Increase Notice” shall have the meaning
assigned to such term in Section 2.11(d).

“Commitment Percentage” shall mean, as to any Lender at any
time, the percentage which such Lender’s Commitment then constitutes of
the Total Commitment or, at any time after the Commitments shall have
expired or terminated, the percentage which the aggregate principal
amount of such Lender’s Loans then outstanding constitutes of the
aggregate principal amount of the Loans then outstanding.

“Confidential Information” shall have the meaning assigned
to such term in Section 9.15.

“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 EBITDA” shall mean, without duplication, for
any period for which such amount is being determined, the sum of the
amounts for such period of (i) Consolidated Net Income, (ii) provision
for taxes based on income, (iii) depreciation expense (excluding any such
expense attributable to depreciation of Eligible Vehicles which are
included in a Qualified Securitization Transaction), (iv) Consolidated
Interest Expense, (v) amortization expense, (vi) other non-cash items
reducing Consolidated Net Income, plus (vii) any cash contributions by
the Borrower and its Subsidiaries during such period into the Settlement
Trust minus (viii) any cash expenditures during such period to the extent
such cash expenditures (x) did not reduce Consolidated Net Income for
such period and (y) were applied against reserves that constituted
non-cash items which reduced Consolidated Net Income during prior
periods, all as determined on a consolidated basis for the Borrower and
its Consolidated Subsidiaries in accordance with GAAP. Notwithstanding
the foregoing, in calculating Consolidated EBITDA pro forma effect shall
be given to each acquisition of a Subsidiary or any entity acquired in a
merger

5

 

in any relevant period for which the covenants set forth in Sections
6.5 and 6.6 are being calculated as if such acquisition had been made on
the first day of such period.

“Consolidated Interest Expense” shall mean for any period
for which such amount is being determined, total interest expense paid or
payable in cash (including that properly attributable to Capital Leases
in accordance with GAAP but excluding in any event all capitalized
interest and amortization of debt discount and debt issuance costs) of
the Borrower and its Consolidated Subsidiaries on a consolidated basis
including, without limitation, all commissions, discounts and other fees
and charges owed with respect to letters of credit and bankers’
acceptance financing and net cash costs (or minus net profits) under
Interest Rate Protection Agreements minus, without duplication,
any interest income of the Borrower and its Consolidated Subsidiaries on
a consolidated basis during such period. Notwithstanding the foregoing,
interest expense on any Rental Vehicle Securitization Indebtedness or any
Timeshare Loan Indebtedness shall be deemed not to be included in
Consolidated Interest Expense.

“Consolidated Net Income” shall mean, for any period for
which such amount is being determined, the net income (or 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 (loss) of any Person (other than a Consolidated
Subsidiary of the Borrower) in which the Borrower or any of its
Consolidated Subsidiaries has any 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 of any
Consolidated Subsidiary of the Borrower 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 Consolidated Subsidiary, (iii) any extraordinary
after-tax gains and (iv) any extraordinary or unusual pretax losses.

“Consolidated Net Worth” shall mean, as of any date of
determination, all items which in conformity with GAAP would be included
under shareholders’ equity on a consolidated balance sheet of the
Borrower and its Subsidiaries at such date plus mandatorily redeemable
preferred securities issued by Subsidiaries of the Borrower (other than
PHH and its Subsidiaries) plus 80% of the aggregate amount outstanding
under the Upper DECS which is, at the date as of which Consolidated Net
Worth is to be determined, includable as a liability on a consolidated
balance sheet of the Borrower and its Subsidiaries. Consolidated Net
Worth shall include the Borrower’s equity interest in PHH.

“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.

“Consolidated Total Indebtedness” shall mean (i) the total
amount of Indebtedness of the Borrower and its Consolidated Subsidiaries
determined on a

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consolidated basis using GAAP principles of consolidation, which is,
at the dates as of which Consolidated Total Indebtedness is to be
determined, includable as liabilities on a consolidated balance sheet of
the Borrower and its Subsidiaries, plus (ii) without duplication of any
items included in Indebtedness pursuant to the foregoing clause (i),
Indebtedness of others which the Borrower or any of its Consolidated
Subsidiaries has directly or indirectly assumed or guaranteed (but only
to the extent so assumed or guaranteed) or otherwise provided credit
support therefor, including without limitation, Guaranties;
provided that, for purposes of this definition, (a) any Rental Vehicle
Securitization Indebtedness shall not be deemed Indebtedness, (b) any
Timeshare Loan Indebtedness shall not be deemed Indebtedness and (c) only
20% of the aggregate amount outstanding under the Upper DECS which is, at
the dates as of which Consolidated Total Indebtedness is to be
determined, includable as a liability on a consolidated balance sheet of
the Borrower and its Subsidiaries, shall be deemed Indebtedness. In
addition, for purposes of this definition, the amount of Indebtedness at
any time shall be reduced (but not to less than zero) by the amount of
Excess Cash.

“Debt to Capitalization Ratio” shall mean at any time the
ratio of (x) Consolidated Total Indebtedness to (y) the sum of (i)
Consolidated Total Indebtedness plus (ii) Consolidated Net Worth.

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

“Disclosed Matters” shall mean public filings with the
Securities and Exchange Commission made by the Borrower or any of its
Subsidiaries on Form S-4, Form 8-K, Form 10-Q or Form 10-K, as filed on
or prior to the Closing Date.

“Dollars” and “$” shall mean lawful money of the
United States of America.

“Eligible Collateral” shall mean Collateral consisting of
Timeshare Property, airport service vehicles, and such other assets under
management and mortgage programs that are not subject to any Liens other
than (i) Liens in favor of the Administrative Agent for the benefit of
the Secured Parties under the Collateral Documents and (ii) Permitted
Encumbrances of the type described in clauses (a) through (d) of Section
6.3.

“Eligible Leases” shall mean open-end and closed-end
automobile fleet leases originated by or on behalf of the Borrower or any
of its Subsidiaries, which are of a type customarily eligible for
inclusion in a Qualified Securitization Transaction.

“Eligible Vehicles” shall mean the motor vehicle inventory
of the Borrower or any of its Subsidiaries, in each case, whether held
for sale, lease or rental purposes, which are of a type customarily
eligible for inclusion in a Qualified Securitization Transaction.

“Environmental Law” shall mean all laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, judgments,
injunctions, notices or requirements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, release
or threatened release of any Hazardous Material or to health and safety
matters, including

7

 

without limitation, the Clean Water Act also known as the Federal
Water Pollution Control Act (“FWPCA”) 33 U.S.C. § 1251 et
seq., the Clean Air Act (“CAA”), 42 U.S.C. §§ 7401
et seq., the Federal Insecticide, Fungicide and
Rodenticide Act (“FIFRA”), 7 U.S.C. §§ 136 et seq.,
the Surface Mining Control and Reclamation Act (“SMCRA”),
30 U.S.C. §§ 1201 et seq., the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”),
42 U.S.C. § 9601 et seq., the Superfund
Amendment and Reauthorization Act of 1986 (“SARA”), Public Law
99-499, 100 Stat. 1613, the Emergency Planning and Community Right to
Know Act (“ECPCRKA”), 42 U.S.C. § 11001 et seq.,
the Resource Conservation and Recovery Act (“RCRA”), 42
U.S.C. § 6901 et seq., the Occupational Safety and
Health Act as amended (“OSHA”), 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.

“ERISA” shall mean the Employee Retirement Income Security
Act of 1974, as such Act may be amended from time to time, and the
regulations promulgated thereunder.

“ERISA Affiliate” shall mean any trade or business (whether
or not incorporated) that, together with the Borrower, is treated as a
single employer under Section 414(b) or (c) of the Code or, solely for
purposes of Section 302 of ERISA and Section 412 of the Code, is treated
as a single employer under Section 414 of the Code.

“ERISA Event” shall mean (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued thereunder
with respect to a Plan (other than an event for which the 30-day notice
period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code
or Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to
any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Borrower or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by the Borrower or any of its
ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal

8

 

Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

“Event of Default” shall have the meaning given such term
in Section 7 hereof.

“Excess Cash” shall mean all cash and Cash Equivalents of
the Borrower and its Consolidated Subsidiaries at such time determined on
a consolidated basis in accordance with GAAP in excess of $25,000,000.

“Excluded Taxes” shall mean, with respect to any Lender, or
any other recipient of payments to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income or net profits by the United
States of America, or by the jurisdiction under the laws of which such
recipient is organized, in which its principal office is located or in
which it is otherwise doing business or in which its applicable Lending
Office is located, (b) any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction in
which the Borrower is located, (c) any withholding tax that is imposed on
amounts payable to such Lender, or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder, at
the time such Lender becomes a party to this Agreement (or designates a
new Lending Office), except to the extent that the Lender effecting such
assignment or designating such new Lending Office, as the case may be,
was entitled, immediately prior to such assignment or designation of such
new Lending Office, to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 2.20(a), (d) Taxes
attributable to such Lender’s failure to comply with Section 2.20(e), and
(e) any Taxes imposed as a result of such Lender’s gross negligence or
willful misconduct.

“Extension of Credit” shall mean the making of a Loan.

“Facility Fee” shall have the meaning given such term in
Section 2.6 hereof.

“Fairfield” shall mean Fairfield Resorts, Inc., a Delaware
corporation (formerly Fairfield Communities, Inc.).

“Fairfield Debt Documents” shall mean the instruments and
agreements pursuant to which any indebtedness of Fairfield or any of its
Subsidiaries has been issued, is outstanding or permitted to exist.

“Fairfield Merger” shall mean the transaction pursuant to
the Agreement and Plan of Merger, dated as of November 1, 2000, by and
among the Borrower, Fairfield and Grand Slam Acquisition Corp., a
Delaware corporation and subsidiary of the Borrower.

“Fleet Receivables” means all receivables generated by the
Borrower or any of its Subsidiaries from obligors under fleet maintenance
contracts, fleet management contracts and fuel card contracts and any
other service contracts billed together with Eligible Leases, which are
of a type customarily eligible for inclusion in a Qualified
Securitization Transaction.

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“Foreign Lender” means any Lender that is organized under
the laws of a jurisdiction other than that in which the Borrower is
located. For purposes of this definition, the United States of America,
each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

“Fundamental Documents” shall mean this Agreement, the
Notes, the Collateral Documents and any Compliance Certificate which is
required to be executed by the Borrower pursuant to Section 5.1(c) 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 6.5 and 6.6
and the related definitions shall have been computed based on such
generally accepted accounting principles as are in effect on the Closing
Date.

“Governmental Authority” shall mean any federal, 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.

“Granting Lender” shall have the meaning assigned to such
term in Section 9.3(k).

“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, however, 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

10

 

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 all explosive or
radioactive substances or wastes and all hazardous or toxic substances,
wastes or other pollutants, including petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls,
radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

“Increase Effective Date” shall have the meaning assigned
to such term in Section 2.11(g).

“Indebtedness” shall mean (without double counting), at any
time and with respect to any Person, (i) indebtedness of such Person for
borrowed money (whether by loan or the issuance and sale of debt
securities) or for the deferred purchase price of property or services
purchased (other than amounts constituting trade payables arising in the
ordinary course and payable within 180 days); (ii) indebtedness of others
which such Person has directly or indirectly assumed or guaranteed (but
only to the extent so assumed or guaranteed) or otherwise provided credit
support therefor, including without limitation, Guaranties; (iii)
indebtedness of others secured by a Lien on assets of such Person,
whether or not such Person shall have assumed such indebtedness (but only
to the extent of the fair market value of such assets); (iv) obligations
of such Person in respect of letters of credit, acceptance facilities, or
drafts or similar instruments issued or accepted by banks and other
financial institutions for the account of such Person (other than trade
payables arising in the ordinary course and payable within 180 days); or
(v) obligations of such Person under Capital Leases.

“Indemnified Party” shall have the meaning assigned to such
term in Section 9.5.

“Indemnified Taxes” shall mean Taxes other than Excluded
Taxes.

“Interest Coverage Ratio” shall mean, for each period for
which it is to be determined, the ratio of (i) Consolidated EBITDA to
(ii) Consolidated Interest Expense.

“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, each day that would have been an Interest Payment Date
had successive Interest Periods of three months duration been applicable
to 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 or if the date of the LIBOR Borrowing is the last day
of any month, 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, and (b) as to any ABR Borrowing, the period
commencing on the

11

 

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
Maturity Date and (iii) the date such Borrowing is refinanced with a
Borrowing of a different Interest Rate Type in accordance with Section
2.5 or is prepaid in accordance with Section 2.12; provided,
however, 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 may be selected which would extend beyond
the Maturity 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. For
purposes hereof, “Rate” shall include LIBOR and the Alternate Base Rate.

“Lender and “Lenders” shall mean the financial
institutions whose names appear at the foot hereof and any assignee of a
Lender permitted 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 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 or ABR Loans are made, as
notified to the Administrative Agent from time to time.

“LIBOR” shall mean, with respect to any LIBOR Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next Basis Point) equal to the rate at which Dollar
deposits approximately equal in principal amount to Bank of America,
N.A.’s portion of such LIBOR Borrowing, and for a maturity comparable to
such Interest Period, are offered to the principal London office of Bank
of America, N.A. in immediately available funds in the London Interbank
Market at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period.

“LIBOR Borrowing” shall mean a Borrowing comprised of LIBOR
Loans.

“LIBOR Loan” shall mean any Revolving Credit Loan bearing
interest at a rate determined by reference to LIBOR in accordance with
the provisions of Section 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 2.21 based
on the rating of the Borrower’s senior non-credit enhanced unsecured
long-term debt.

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“Lien” means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset and (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or
title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset.

“Loan” shall mean a Revolving Credit Loan, whether made as
a LIBOR Loan or an ABR Loan, as permitted hereby.

“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 (it is
understood that, for purposes of this definition, the accounting
irregularities and errors disclosed in the Borrower’s report on Form 10-K
for the period ending December 31, 2001 filed with the Securities and
Exchange Commission and the class action lawsuits disclosed therein and
other class action lawsuits arising as a result of the accounting
irregularities and errors disclosed therein do not constitute a Material
Adverse Effect).

“Material Subsidiary” shall mean any Subsidiary of the
Borrower which, together with its Subsidiaries at the time of
determination hold, or, solely with respect to Sections 7(f) and 7(g),
any group of Subsidiaries which, if merged into each other at the time of
determination would hold, assets constituting 10% or more of Consolidated
Assets or accounts for 10% or more of Consolidated EBITDA for the Rolling
Period immediately preceding the date of determination.

“Maturity Date” shall mean June 17, 2007, or the
immediately preceding Business Day.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“Mortgage, Pledge and Security Agreement” has the meaning
assigned to such term in Section 4.1(a).

“Multiemployer Plan” shall mean a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

“Notes” shall have the meaning assigned to such term in
Section 2.7.

“Obligations” shall mean the obligation of the Borrower to
make due and punctual payment of principal of, and interest on, the
Loans, the Facility 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.

“Offered Increase Amount” shall have the meaning assigned
to such term in Section 2.11(d).

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“Other Taxes” shall mean any and all 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
Fundamental Document.

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

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

“Permitted Encumbrances” shall mean Liens permitted under
Section 6.3 hereof.

“Permitted Timeshare Collateral” means, as of any date of
determination:

(1) the collateral securing Timeshare Loan Indebtedness and
consisting of Timeshare Loans or a beneficial interest therein and
the proceeds thereof;

(2) Timeshare Loans or a beneficial interest therein,
transferred to a Securitization Entity in connection with a
Qualified Securitization Transaction and the proceeds thereof;

(3) any related assets which are customarily transferred, or
in respect of which security interests are customarily granted, in
connection with asset securitizations involving Timeshare Loans;
and

(4) any proceeds of any of the foregoing.

“Permitted Vehicle Collateral” means, as of any date of
determination:

(1) the collateral securing Rental Vehicle Securitization
Indebtedness and consisting of Eligible Vehicles and receivables,
or a beneficial interest therein, arising from the disposition of
Eligible Vehicles and the proceeds thereof;

(2) Eligible Leases and Fleet Receivables, or a beneficial
interest therein, transferred to a Securitization Entity in
connection with a Qualified Securitization Transaction and the
proceeds thereof;

(3) any related assets which are customarily transferred, or
in respect of which security interests are customarily granted, in
connection with asset securitizations involving Eligible Vehicles
or Eligible Leases; and

(4) any proceeds of any of the foregoing.

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

14

 

“PHH” shall mean PHH Corporation, a Maryland corporation.

“Plan” shall mean any employee pension benefit plan (other
than a Multiemployer Plan) subject to the provisions of Title IV of ERISA
or Section 412 of the Code or Section 302 of ERISA, and in respect of
which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA.

“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.

“Purchase Money Note” means a promissory note of a
Securitization Entity evidencing a line of credit, which may be
irrevocable, from the Borrower or any of its Subsidiaries or a Timeshare
Subsidiary to a Securitization Entity or representing the deferred
purchase price for the purchase of assets by such Securitization Entity
from the Borrower or any of its Subsidiaries or Timeshare Subsidiary, as
the case may be, in each case in connection with a Qualified
Securitization Transaction, which note is repayable from cash available
to the Securitization Entity, other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors
in respect of interest, principal and other amounts owing to such
investors and amounts paid in connection with the purchase of Eligible
Vehicles, Eligible Leases, Fleet Receivables or a beneficial interest
therein, in the case of an Rental Vehicle Securitization Entity, or a
Timeshare Loan, in the case of a Timeshare Securitization Entity.

“Qualified Securitization Transaction” means (x) any
transaction or series of transactions that may be entered into by the
Borrower or any of its Subsidiaries pursuant to which the Borrower or any
of its Subsidiaries may sell, convey or otherwise transfer to (1) a
Securitization Entity (in the case of a transfer by the Borrower or any
of its Subsidiaries) or (2) any other Person (in the case of a transfer
by a Securitization Entity), or may grant a security interest in, any
Permitted Vehicle Collateral (whether now existing or arising in the
future) of the Borrower or any of its Subsidiaries, and any assets
related thereto including, without limitation, the proceeds of such
Permitted Vehicle Collateral or (y) any transaction or series of
transactions that may be entered into by any Timeshare Subsidiary
pursuant to which any Timeshare Subsidiary may sell, convey or otherwise
transfer to (1) a Securitization Entity (in the case of a transfer by any
Timeshare Subsidiary) or (2) any other Person (in the case of a transfer
by a Securitization Entity), or may grant a security interest in, any
Permitted Timeshare Collateral (whether now existing or arising in the
future) of any Timeshare Subsidiary, and any assets related thereto
including, without limitation, the proceeds of such Permitted Timeshare
Collateral.

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“Ratable Assignment” shall have the meaning assigned to
such term in Section 9.3(b).

“Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers,
employees, agents and advisors of such Person and such Person’s
Affiliates.

“Rental Vehicle Securitization Entity” means a Subsidiary
of the Borrower (or another Person in which the Borrower or any of its
Subsidiaries makes an investment or to which the Borrower or any of its
Subsidiaries transfers Permitted Vehicle Collateral or an interest in
Permitted Vehicle Collateral) which engages in no activities other than
in connection with the ownership, leasing, operation and financing of
Eligible Vehicles and other Permitted Vehicle Collateral and which is
designated by the Person controlling such Subsidiary (or Person) as a
Securitization Entity and as to which:

(1) no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which:

          (a) is guaranteed by the Borrower or any of its Subsidiaries
(excluding guarantees of obligations (other than the principal of,
and interest on, Indebtedness) pursuant to Standard Securitization
Undertakings);

          (b) is recourse to or obligates the Borrower or any of its
Subsidiaries in any way other than pursuant to Standard
Securitization Undertakings; or

          (c) subjects any property or asset of the Borrower or any of
its Subsidiaries (other than a Securitization Entity), directly or
indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings;

(2) neither the Borrower nor any of its Subsidiaries has any
material contract, agreement, arrangement or understanding (except
in connection with a Purchase Money Note or Qualified
Securitization Transaction) other than on terms no less favorable
to the Borrower or such Subsidiary of the Borrower than those that
might be obtained at the time from Persons that are not Affiliates
of the Borrower, other than fees payable in the ordinary course of
business in connection with servicing Permitted Vehicle Collateral;
and

(3) neither the Borrower nor any of its Subsidiaries has any
obligation to maintain or preserve such entity’s financial
condition or cause such entity to achieve certain levels of
operating results.

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 more that 50% 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 or contract or otherwise.

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“Rental Vehicle Securitization Indebtedness” means (i)
Indebtedness that finances or refinances Eligible Vehicles (but only to
the extent actually used to finance or refinance Eligible Vehicles) and
(ii) Indebtedness secured by Permitted Vehicle Collateral.

“Required Lenders” shall mean at any time, Lenders holding
Commitments representing a majority of the Total Commitment, except that
(i) 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 Section 7 and (ii) at all times after the termination of the
Total Commitment in its entirety, “Required Lenders” shall mean Lenders
holding a majority of the aggregate principal amount of the Loans at the
time outstanding.

“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 2.4 in the form of Exhibit E.

“Revolving Credit Loans” shall mean the Loans made by the
Lenders to the Borrower pursuant to a notice given by the Borrower under
Section 2.4. Each Revolving Credit Loan shall be a LIBOR Loan or an ABR
Loan.

“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.

“Secured Obligations” means all “Secured Obligations”
referred to in the Collateral Documents, now or hereafter existing under
the Fundamental Documents, whether direct or indirect, absolute or
contingent, or whether for principal, reimbursement obligations,
interest, fees, premiums, penalties, indemnifications, contract causes of
action, costs, expenses or otherwise.

“Secured Parties” means the Agents, the Lenders and any
other Person identified as a “Secured Party” in any Fundamental Document.

“Securitization Entity” means a Rental Vehicle
Securitization Entity or a Timeshare Securitization Entity.

“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).

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“Settlement” shall mean the settlement of a consolidated
class action lawsuit pending against the Borrower styled In re Cendant
Corporation Litigation, No. 98-CV-1664 (WHW)(D.N.J.).

“Settlement Agreement” shall mean the Stipulation of
Settlement with the Borrower and Certain Other Defendants, executed March
17, 2000.

“Settlement Trust” shall mean the escrow account
established pursuant to the Settlement Agreement.

“S&P” shall mean Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc.

“SPC” shall have the meaning assigned to such term in
Section 9.3(k).

“Standard Securitization Undertakings” means
representations, warranties, guaranties, covenants and indemnities
entered into by the Borrower or any of its Subsidiaries or any Timeshare
Subsidiary, which are reasonably customary in securitizations.

“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). Such
reserve percentages shall include those imposed under Regulation D.
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. 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; provided that for
purposes of Sections 6.1, 6.3, 6.4, 6.5 and 6.6 hereof, PHH and its
Subsidiaries shall be deemed not to be Subsidiaries of the Borrower
except that (a) Consolidated Net Worth shall be calculated in accordance
with the definition thereof and (b) in calculating Consolidated EBITDA
for any fiscal quarter the amount of any cash dividends or any other cash
distributions actually paid by PHH or any Subsidiary of PHH to the
Borrower and its Subsidiaries (excluding the Subsidiaries of PHH) (i)
during such period and (ii) up to the time of the delivery of the
certificate pursuant to Section 5.1(c) hereof related to such period
shall be included in such

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calculation. Any such cash dividends and distributions received
from PHH and its Subsidiaries in one period and included in calculating
Consolidated EBITDA for any prior period shall not be included in
calculating Consolidated EBITDA for any fiscal quarter ending on or after
the first anniversary of the date such dividends and distributions are
received.

“Taxes” shall mean any and all present or future taxes,
levies, imposts, duties, deductions, charges or withholdings imposed by
any Governmental Authority.

“Timeshare Debt Documents” shall mean the instruments and
agreements pursuant to which any indebtedness of any Timeshare Subsidiary
has been issued, is outstanding or is permitted to exist.

“Timeshare Loan” shall mean any loan made to finance the
acquisition of a Timeshare Property, including a Timeshare Property that
has not yet been completed, any installment contract for the purchase of
a Timeshare Property, or any other arrangement in the nature of a
financing of the purchase of a Timeshare Property, and all security
therefor and proceeds thereof.

“Timeshare Loan Indebtedness” shall mean any Indebtedness
secured by or payable from Permitted Timeshare Collateral or Timeshare
Property and the Indebtedness under this Agreement.

“Timeshare Property” shall mean any property used or
intended to be used for development, in whole or in part, of a timeshare
regime, including but not limited to real property, improvements thereon,
any condominium, any portion of such a development, any unit or units
subjected to a timeshare regime, any fixed week intervals, any undivided
interests, any notional “points” afforded to owners of timeshares, any
common areas, and any other form of ownership of, or entitlement to
occupy real estate that forms a part of, or is subject to, a timeshare
regime under applicable state law.

“Timeshare Securitization Entity” shall mean in the case of
a Subsidiary of a Timeshare Subsidiary (or another Person in which a
Timeshare Subsidiary makes an investment or to which any Timeshare
Subsidiary transfers Permitted Timeshare Collateral or an interest in
Permitted Timeshare Collateral) which engages in no activities other than
in connection with the ownership, leasing, operation and financing of
Timeshare Properties and other Permitted Timeshare Collateral and which
is designated by the board of directors of a Timeshare Subsidiary as a
Securitization Entity and as to which:

(1) no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which:

          (a) is guaranteed by the Borrower or any of its Subsidiaries
(excluding guarantees of obligations (other than the principal of,
and interest on, Indebtedness) pursuant to Standard Securitization
Undertakings);

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          (b) is recourse to or obligates the Borrower in any way other
than pursuant to Standard Securitization Undertakings; or

          (c) subjects any property or asset of the Borrower or any of
its Subsidiaries (other than a Securitization Entity), directly or
indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings;

(2) neither the Borrower nor any of its Subsidiaries has any
material contract, agreement, arrangement or understanding (except
in connection with a Purchase Money Note or Qualified
Securitization Transaction) other than on terms no less favorable
to the Borrower or such Subsidiary of the Borrower than those that
might be obtained at the time from Persons that are not Affiliates
of the Borrower, other than fees payable in the ordinary course of
business in connection with servicing Permitted Timeshare
Collateral; and

(3) neither the Borrower nor any of its Subsidiaries has any
obligation to maintain or preserve such entity’s financial
condition or cause such entity to achieve certain levels of
operating results.

“Timeshare Subsidiary” shall mean Fairfield, its
Subsidiaries, Trendwest Resorts, or any other direct or indirect
Subsidiary of the Borrower that is in the business of developing, owning,
selling, managing or financing Timeshare Properties.

“Total Commitment” shall mean, at any time, the aggregate
amount of the Lenders’ Commitments as in effect at such time.

“Trendwest Resorts” shall mean Trendwest Resorts, Inc., a
Delaware corporation.

“Upper DECS” shall mean the securities, consisting of 6.75%
senior notes of the Borrower due 2006 and forward purchase contracts to
purchase the Borrower’s common stock in August 2004, issued on July 27,
2001 pursuant to the Prospectus Supplement, dated as of July 20, 2001.

“Withdrawal Liability” means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of
Title IV of ERISA.

	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, at any time
and from time to time on and after the Closing Date and until the earlier of
the Maturity 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, subject, however, to the conditions that (i) at no time shall

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the outstanding aggregate principal amount of all Revolving Credit Loans
made by all Lenders exceed the Total Commitment and (ii) at all times the
outstanding aggregate principal amount of all Revolving Credit Loans made by
each Lender shall equal the product of (x) the percentage that its Commitment
represents of the Total Commitment times (y) the outstanding aggregate
principal amount of all Revolving Credit Loans made pursuant to a notice given
by the Borrower under Section 2.4. The Commitments of the Lenders may be
terminated or reduced from time to time pursuant to Section 2.11 or Section 7.

(b) Within the foregoing limits, the Borrower may borrow, pay or repay and
reborrow hereunder, on and after the Closing Date and prior to the Maturity
Date, upon the terms and subject to the conditions and limitations set forth
herein.

SECTION 2.2. Loans.

(a) Each Revolving Credit Loan shall be made as part of a Borrowing
consisting of Loans made by the Lenders ratably in accordance with their
Commitments; provided, however, that the failure of any
Lender to make any Revolving Credit Loan 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 Revolving Credit Loans
comprising any Borrowing shall be (i) in the case of LIBOR Loans, in an
aggregate principal 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, in the case of clause (i) and clause (ii) above, if less, an
aggregate principal amount equal to the remaining balance of the available
Total Commitment).

(b) 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 of more than one Interest Rate
Type may be outstanding at the same time; provided, however,
that the Borrower shall not be entitled to request any Borrowing that, if made,
would result in an aggregate of more than 9 separate Revolving Credit Loans of
any Lender being outstanding hereunder at any one time. For purposes of the
calculation required by the immediately preceding sentence, LIBOR Loans having
different Interest Periods, 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 2.5, each Lender shall make each Loan to be made by
it hereunder on the proposed date thereof by making funds available at the
offices of the Administrative Agent’s Credit Services Department, Bank of
America, N.A., 101 North Tryon Street, Charlotte, NC 28255, Attention: Merci
Owens, for credit to Corporate Credit Support, Account No. 1366212250600,
(Reference: Cendant Corporation Credit Agreement dated as of June 17, 2004) no
later than 1:00 P.M. New York City time (2:00 P.M. New York City time, in the
case of an ABR Borrowing) in Federal or other immediately available funds.
Upon receipt of the funds to be made available by the Lenders to fund any
Borrowing hereunder, the

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Administrative Agent shall disburse such funds by depositing them into an
account of the Borrower maintained with the Administrative Agent. Revolving
Credit 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 Maturity Date.

SECTION 2.3. Use of Proceeds.

The proceeds of the Loans shall be used (a) to refinance existing
indebtedness of the Cendant Timeshare Resort Group, (b) to finance Eligible
Collateral and (c) for working capital and general corporate purposes of the
Borrower and its Subsidiaries, including, without limitation, for acquisitions.
No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations T, U and X of the Board.

SECTION 2.4. 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 E (a) in the case of a LIBOR Borrowing, not later than 12:00
(noon), New York City time, three Business Days before a proposed Borrowing,
and (b) in the case of an ABR Borrowing, not later than 12:00 (noon), New York
City time, on the day of a proposed Borrowing. Such notice shall be
irrevocable and shall in each case specify (a) whether the Borrowing then being
requested is to be a LIBOR Borrowing or an ABR Borrowing, (b) the date of such
Revolving Credit Borrowing (which shall be a Business Day) and the amount
thereof and (c) if such Borrowing is to be a LIBOR Borrowing, 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 LIBOR Borrowing 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 2.4 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 2.4 and of each Lender’s portion of
the requested Borrowing.

SECTION 2.5. Refinancings.

The Borrower may refinance all or any part of any Borrowing with a
Borrowing of the same or a different Interest Rate Type made pursuant to a
notice under Section 2.4, subject to the conditions and limitations set forth
herein and elsewhere in this Agreement; provided, however,
that at any time after the occurrence, and during the continuation, of a
Default or an Event of Default, a Revolving Credit Borrowing or portion thereof
may only be refinanced with an ABR Borrowing.

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SECTION 2.6. 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,
commencing September 30, 2004, 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 2.21, on the average daily 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 (i) the Maturity Date or (ii)
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 Maturity Date and the termination of the
Commitment of such Lender as provided herein.

(b) 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 May 27, 2004 among the Borrower, Bank of America, N.A. and Banc
of America Securities LLC.

(c) 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 2.7. 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 of such Lender on the Maturity Date (or
such earlier date on which the Revolving Credit Loans become due and payable
pursuant to Section 7). The Borrower hereby further agrees to pay interest on
the unpaid principal amount of the Revolving Credit Loans from time to time
outstanding from the Closing Date until payment in full thereof at the rates
per annum, and on the dates, set forth in Section 2.8.

(b) 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 Revolving Credit 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.

(c) 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 Revolving Credit Loan made hereunder, the
Interest Rate Type thereof and each Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and
payable from the 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.

(d) The entries made in the Register and the accounts of each Lender
maintained pursuant to this Section 2.7 shall, to the extent permitted by
applicable law, be prima

23

 

facie evidence of the existence and amounts of the obligations of
the Borrower therein recorded; provided, however, 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 Revolving
Credit Loans made to the Borrower by such Lender in accordance with the terms
of this Agreement.

(e) 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 Revolving Credit Loans of such
Lender, substantially in the form of Exhibit A with appropriate insertions as
to date and principal amount (a “Note”).

SECTION 2.8. Interest on Loans.

(a) Subject to the provisions of Section 2.9, the Loans comprising
each LIBOR Borrowing shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to
LIBOR for the Interest Period in effect for such Borrowing plus the applicable
LIBOR Spread from time to time in effect. Interest on each LIBOR Borrowing
shall be payable on each applicable Interest Payment Date.

(b) Subject to the provisions of Section 2.9, 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, if any, for ABR Loans from time to time in effect pursuant
to Section 2.21.

(c) 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 2.9. 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, the rate applicable to such Loan under Section 2.8 plus 2% per
annum and (b) in the case of any other Loan or amount, the rate that would at
the time be applicable to an ABR Loan under Section 2.8 plus 2% per annum.

SECTION 2.10. Alternate Rate of Interest.

In the event, and on each occasion, that on the day two Business Days
prior to the commencement of any Interest Period for a LIBOR Loan, the
Administrative Agent shall have

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determined that Dollar deposits in the amount of the requested principal
amount of such LIBOR Loan are not generally available in the London Interbank
Market, or that the rate at which such Dollar 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, any request by
the Borrower for a LIBOR Borrowing pursuant to Section 2.4 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 2.11. Termination and Reduction of Commitments; Increase of
Commitments.

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

(b) Subject to Section 2.12(b), upon at least three Business Days, prior
irrevocable written or telecopy notice to the Administrative Agent, the
Borrower may at any time in whole permanently terminate, or from time to time
in part permanently reduce, the Total Commitment; provided, however,
that (i) each partial reduction of the Total Commitment shall be
in an integral multiple of $5,000,000 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 the Total Commitment to an amount
less than the sum of the aggregate outstanding principal amount of the Loans.

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

(d) In the event that the Borrower wishes to increase the aggregate
Commitments at any time when no Default or Event of Default has occurred and is
continuing, it shall notify the Administrative Agent in writing of the amount
(the “Offered Increase Amount”) of such proposed increase (such
notice, a “Commitment Increase Notice”), and the Administrative Agent
shall notify each Lender of such proposed increase and provide such additional
information regarding such proposed increase as any Lender may reasonably
request. The Borrower may, at its election, (i) offer one or more of the
Lenders the opportunity to participate in all or a portion of the Offered
Increase Amount pursuant to paragraph (f) below and/or (ii) with the consent of
the Administrative Agent (which consent shall not be unreasonably withheld),
offer one or more additional banks, financial institutions or other entities
the opportunity to participate in all or a portion of the Offered Increase
Amount pursuant to paragraph (e) below. Each Commitment Increase Notice shall
specify which Lenders and/or banks, financial institutions or other entities
the Borrower desires to participate in such

25

 

Commitment increase. The Borrower or, if requested by the Borrower, the
Administrative Agent, will notify such Lenders and/or banks, financial
institutions or other entities of such offer.

(e) Any additional bank, financial institution or other entity which the
Borrower selects to offer participation in the increased Commitments and which
elects to become a party to this Agreement and provide a Commitment in an
amount so offered and accepted by it pursuant to Section 2.11(d)(ii) shall
execute a New Lender Supplement with the Borrower and the Administrative Agent,
substantially in the form of Exhibit G, whereupon such bank, financial
institution or other entity (herein called a “New Lender”) shall
become a Lender for all purposes and to the same extent as if originally a
party hereto and shall be bound by and entitled to the benefits of this
Agreement, and Schedule 2.1 shall be deemed to be amended to add the name and
Commitment of such New Lender, provided that the Commitment of any
such new Lender shall be in an amount not less than $5,000,000.

(f) Any Lender which accepts an offer to it by the Borrower to increase
its Commitment pursuant to Section 2.11(d)(i) shall, in each case, execute a
Commitment Increase Supplement with the Borrower and the Administrative Agent,
substantially in the form of Exhibit H, whereupon such Lender shall be bound by
and entitled to the benefits of this Agreement with respect to the full amount
of its Commitment as so increased, and Schedule 2.1 shall be deemed to be
amended to so increase the Commitment of such Lender.

(g) The Administrative Agent and the Borrower shall determine the
effective date of any increase of the Commitments under this Section 2.11 (the
“Increase Effective Date”) and the final allocation of such increase. The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Increase Effective Date. Upon the
Increase Effective Date, all outstanding Borrowings shall be reallocated among
the Lenders in a manner such that each Lender’s portion of the Borrowings then
outstanding shall be equal to such Lender’s ratable portion of such Borrowings
based on its Commitment as a percentage of the aggregate Commitments
outstanding after giving effect to the relevant Commitment increase. The
Borrower shall reimburse each Lender in accordance with Section 2.16 to the
extent such Lender incurs any loss as a result of the Increase Effective Date
being on a date other than the last day of the applicable Interest Period.

(h) Notwithstanding anything to the contrary in this Section 2.11, (i) in
no event shall any transaction effected pursuant to this Section 2.11 cause the
aggregate Commitments hereunder to exceed $600,000,000 and (ii) no Lender shall
have any obligation to increase its Commitment unless it agrees to do so in its
sole discretion.

SECTION 2.12. Prepayment of Loans.

(a) Prior to the Maturity 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 2.16 but otherwise without premium or penalty,
upon prior written or telecopy notice to the Administrative Agent before 12:00
noon New York City time at least one Business Day in the case of an ABR Loan
and at least three Business Days in the case of a LIBOR Loan; provided,
however, that each such partial prepayment shall be in an
integral multiple of $5,000,000 and in a minimum aggregate principal amount of
$10,000,000.

26

 

(b) On any date when the sum 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 Revolving
Credit Loans in such amount as may be necessary so that 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 Section 2.12(a) 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 2.12 shall be accompanied by accrued interest on
the principal amount being prepaid, to the date of prepayment. All prepayments
under this Section 2.12 shall be made without premium or penalty, except as
otherwise required under Section 2.16.

SECTION 2.13. Eurodollar 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), 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 2.14. Reserve Requirements; Change in Circumstances.

(a) Except with respect to Indemnified Taxes and Other Taxes, which
shall be governed solely and exclusively by Section 2.20, if after the Closing
Date 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
LIBOR Loan, or shall change the basis of taxation of payments to any Lender of
the principal of or interest on any LIBOR Loan made by such Lender or any other
fees or amounts payable hereunder (other than Excluded Taxes), (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 the London
Interbank Market any other condition affecting this Agreement or any LIBOR Loan
made by such Lender, and the result of

27

 

any of the foregoing shall be to increase the cost (other than the amount
of Taxes, if any) to such Lender of making or maintaining any LIBOR Loan or to
reduce the amount (other than the amount of Taxes, if any) 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 Closing Date, any Lender shall have determined in good
faith that the adoption after the Closing Date of any applicable law, rule,
regulation or guideline regarding capital adequacy, or any change therein, 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 the 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 such additional amount or amounts as will
compensate such Lender for such reduction upon demand by such Lender.

(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 2.14 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 2.14, Section
2.15 or Section 2.20 or (ii) would require the Borrower to pay an increased
amount under this Section 2.14, Section 2.15 or Section 2.20, it will use
reasonable efforts to notify the Borrower of such event or condition and, to
the extent

28

 

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 2.14, Section 2.15 or Section 2.20 would be
materially reduced or the taxes or other amounts otherwise payable under this
Section 2.14, Section 2.15 or Section 2.20 would be materially reduced, and if,
as determined by such Lender, in its sole discretion, the making, funding or
maintaining of such Loans through such other Lending Office would not otherwise
materially adversely affect such Loans or such Lender.

(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
2.15, that amounts are due to such Lender pursuant to paragraph (c) hereof or
that any of the events designated in paragraph (e) hereof have occurred, the
Borrower may (but subject in any such case to the payments required by Section
2.16), 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 and 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, accrued Facility Fees and all other
amounts (including without limitation all amounts payable under this Section)
owing hereunder to such Lender as at such effective date for such assignment.

SECTION 2.15. 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 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 the Borrower shall be prohibited from
requesting LIBOR Loans from such Lender hereunder unless such declaration
is subsequently withdrawn; and

          (ii) require that all outstanding LIBOR Loans 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 2.15(b) and (B) all payments and
prepayments of principal which would otherwise have

29

 

been applied to repay the converted LIBOR Loans shall instead be
applied to repay the ABR Loans resulting from the conversion of such
LIBOR Loans.

(b) For purposes of this Section 2.15, a notice to the Borrower by any
Lender pursuant to Section 2.15(a) shall be effective on the date of receipt
thereof by the Borrower.

SECTION 2.16. 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) of any LIBOR 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 2.4 in respect of LIBOR Loans, 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 2.15 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 2.8, 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 as reasonably determined by
the Administrative Agent as 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 2.8, for the
period from the date of such payment to the last day of the then current daily
Interest Period for such Loan, over (B) the 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 actual 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 2.12(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 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.

30

 

SECTION 2.17. Pro Rata Treatment.

Except as permitted under Sections 2.13, 2.14(c), 2.15 and 2.16 each
Revolving Credit Borrowing, each payment or prepayment of principal of any
Revolving Credit Borrowing, each payment of interest on the Revolving Credit
Loans, each payment of the Facility Fees, each reduction of the Total
Commitment and each refinancing of any Borrowing with, or conversion of any
Borrowing to, a Revolving Credit Borrowing, or continuation of any Borrowing as
a Revolving Credit Borrowing, 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 outstanding Revolving Credit Loans). 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 2.18. Right of Setoff.

If any Event of Default shall have occurred and be continuing and any
Lender shall have directed the Administrative Agent to declare the Loans
immediately due and payable pursuant to Section 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, the 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 2.18 are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

SECTION 2.19. Manner of Payments.

All payments by the Borrower hereunder and under the Notes shall be
made in Dollars in Federal or other immediately available funds without
deduction, setoff or counterclaim at the office of the Administrative Agent’s
Credit Services Department, Bank of America, N.A., 101 North Tryon Street,
Charlotte, NC 28255, Attention: Merci Owens, for credit to Corporate Credit
Support, Account No. 1366212250600, (Reference: Cendant Corporation Credit
Agreement dated June 17, 2004) no later than 12:00 noon, New York City time, on
the date on which such payment shall be due. Interest in respect of any Loan
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 2.20. Taxes.

(a) Any and all payments by or on account of any obligation of the
Borrower hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or

31

 

Other Taxes; provided that if the Borrower shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.20) the Administrative Agent or Lender (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 shall make such deductions and (iii)
the Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with Applicable Law.

(b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.

(c) The Borrower shall indemnify the Administrative Agent and each Lender,
within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent or such
Lender, as the case may be, on or with respect to any payment by or on account
of any obligation of the Borrower hereunder (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under
this Section 2.20) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority (other that those resulting from the Administrative
Agent or Lender’s gross negligence or willful misconduct). A certificate as to
the amount of such payment or liability and setting forth in reasonable detail
the calculation and basis for such payment or liability delivered to the
Borrower by a Lender or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

(d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver
to the Administrative Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(e) Any Lender that is entitled to an exemption from or reduction of
withholding with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time such Lender
becomes a party to this Agreement and at any other time or times reasonably
requested by the Borrower, such properly completed and executed documentation
prescribed by Applicable Law or reasonably requested by the Borrower as will
permit such payments to be made without withholding or at a reduced rate. Each
Lender and Administrative Agent that is a United States Person, as defined in
Section 7701(a)(30) of the Code (other than Persons that are corporations or
otherwise exempt from United States backup withholding Tax), shall deliver at
the time(s) and in the manner(s) prescribed by Applicable Law, to the Borrower
and the Administrative Agent (as applicable), a properly completed and duly
executed United States Internal Revenue Form W-9 or any successor form,
certifying that such Person is exempt from United States backup withholding Tax
on payments made hereunder.

(f) If the Administrative Agent or a Lender determines, in its sole
good-faith discretion, that it has received a refund of any Taxes or Other
Taxes as to which it has been

32

 

indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.20, it shall pay over such refund
to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.20 with respect
to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided, that the Borrower, upon the request of
the Administrative Agent or such Lender, agrees to repay the amount paid over
to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in
the event the Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority. This Section 2.20 shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its Taxes which it deems
confidential) to the Borrower or any other Person.

(g) 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 officers, directors, agents, or employees of
the Borrower or the Administrative Agent 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).

(h) Each assignee of a Lender’s interest in this Agreement in conformity
with Section 9.3 shall be bound by this Section 2.20, 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 2.20.

SECTION 2.21. 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:

33

 

	 	 	 	 	 	 	 	 	 
	S&P/Moody's Rating Equivalent	 	 	 	 
	Of The Borrower's Senior	 	 	 	 
	Non-Credit Enhanced	 	Facility Fee	 	Applicable LIBOR
	Unsecured Long-Term Debt	 	(In Basis Points)	 	Spread (In Basis Points)
	 
	 	 	 	 	 	 	 	 
	A-/A3 or better
	 	 	10.00	 	 	 	45.00	 
	BBB+/Baa1
	 	 	12.50	 	 	 	62.50	 
	BBB/Baa2
	 	 	15.00	 	 	 	80.00	 
	BBB-/Baa3
	 	 	20.00	 	 	 	105.00	 
	BB+/Bal or lower
	 	 	35.00	 	 	 	140.00	 

In the event the S&P rating on the Borrower’s senior non-credit enhanced
unsecured long-term debt is not equivalent to the Moody’s rating on such debt,
the higher rating will determine the Facility Fee and applicable LIBOR Spread;
provided, however, that if such ratings differ by more than
one level, the Facility Fee and applicable LIBOR Spread will be determined by
reference to the level that is one level higher than the lower rating. In the
event that the Borrower’s senior non-credit enhanced unsecured long-term debt
is rated by only one of S&P and Moody’s, then that single rating shall be
determinative. In the event that the Borrower’s senior unsecured long-term
debt is not rated by either S&P or Moody’s, 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 either such 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 either of
such rating agencies not to rate its senior unsecured long-term debt or on the
date either 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 either 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%).

	3.	 	REPRESENTATIONS AND WARRANTIES OF BORROWER

In order to induce the Lenders to enter into this Agreement and to make
the Loans provided for herein, 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

34

 

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, No Violation and Compliance with Law.

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 (including any laws
related to franchising) 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, (d) will not violate or 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, bond, note, instrument or any other material
agreement to which the Borrower or any of its Subsidiaries is a party or by
which the Borrower or any of its Subsidiaries or any of their respective
properties or assets are bound 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 (a) the execution, delivery and performance by the
Borrower of this Agreement or the other Fundamental Documents or (b) except as
set forth in the Collateral Documents, the grant by the Borrower and its
applicable Subsidiaries of the Liens granted by it pursuant to the Collateral
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, 2003 and (b) unaudited
consolidated balance sheets of the Borrower and its Consolidated Subsidiaries
as of March 31, 2004, together with the related unaudited statements of income,
shareholders’ equity and cash flows for such periods, fairly present the
financial condition 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 the March 31, 2004 financial statements.

SECTION 3.5. No Material Adverse Change.

There has been no material adverse change in the business, assets,
operations, or condition, financial or otherwise, of the Borrower and its
Subsidiaries taken as a whole from that

35

 

disclosed in the audited consolidated financial statements (including the
footnotes thereto) of the Borrower referred to in Section 3.4 for its 2003
fiscal year.

SECTION 3.6. Copyrights, Patents and Other Rights.

Each of the Borrower and its Subsidiaries owns, or is licensed to use,
all trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use 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. Certain Subsidiaries of the Borrower are
the legal or beneficial owners of the Collateral.

SECTION 3.8. Litigation.

Except for the Disclosed Matters, there are no lawsuits or other
proceedings pending (including, but not limited to, matters relating to
Environmental Law and 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.

The Borrower is not, and will not during the term of this Agreement
be, (x) an “investment company” subject to regulation under 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.

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SECTION 3.11. Enforceability.

This Agreement and the other Fundamental Documents when executed by
all parties hereto will constitute legal, valid and binding obligations (as
applicable) of the Borrower (enforceable in accordance with its terms subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law).

SECTION 3.12. Taxes.

The Borrower and each of its Subsidiaries has filed or caused to be
filed all federal, state and local tax returns which are required to be filed,
and has paid or has 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 hereof 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.

No ERISA Event has occurred or is reasonably expected to occur that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. 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. 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 a material
tax or penalty on prohibited transactions imposed by ERISA or Section 4975 of
the Code. 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. The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of
the most recent financial statements reflecting such amounts, exceed by more
than $300,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $300,000,000
the fair market value of the assets of all such underfunded Plans.

SECTION 3.14. Disclosure.

As of the Closing Date, neither this Agreement nor the Confidential
Information Memorandum dated May 2004, 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.

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SECTION 3.15. Environmental Liabilities.

Except for the Disclosed Matters and 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 Closing.

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

(a) Fundamental Documents. The Administrative Agent shall have
received this Agreement and each of the other Fundamental Documents, including,
without limitation, a mortgage, pledge and security agreement, in substantially
the form of Exhibit I hereto (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Mortgage, Pledge and Security
Agreement”), each duly executed and delivered by the Borrower and, in the
case of the Collateral Documents, the applicable Subsidiaries 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 of the
initial Loans 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) Opinions of Counsel. The Administrative Agent shall have
received the favorable written opinions, dated the date of the initial
Extension of Credit and addressed to the Administrative Agent and the Lenders,
of (i) Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Borrower,
substantially in the form of Exhibit B-1 hereto, and (ii) Eric J. Bock,
Executive Vice President and Corporate Secretary for the Borrower,
substantially in the form of Exhibit B-2 hereto.

(d) No Material Adverse Change. The Administrative Agent shall
be satisfied that since December 31, 2003 no events and conditions have
occurred that have had, or could reasonably be expected to have, a Material
Adverse Effect.

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

(f) Litigation. No litigation shall be pending or 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 its obligations hereunder or to otherwise materially impair
the interests of the Lenders.

(g) Existing Credit Agreement. Terminate the commitments and
arrange for the contemporaneous payment in full with the proceeds of the
initial Extension of Credit hereunder of all obligations outstanding under the
$275,000,000 Amended and Restated Revolving Credit Facility and Term Loan
Agreement dated March 21, 2003 among Fairfield, FFD Development Company LLC and
Trendwest Resorts, the lenders parties thereto and Fleet National Bank, as
agent for such lenders.

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

(i) Other Documents. The Administrative Agent shall have
received such other documents and certificates as the Administrative Agent may
reasonably require.

SECTION 4.2. Conditions Precedent to Each Extension of Credit.

The obligation of the Lenders to make each Loan, including the initial
Extension of Credit 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 this Agreement.

(b) Representations and Warranties. The representations and
warranties set forth in Section 3 hereof (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, however,
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. No Event of Default or Default shall
have occurred and be continuing or would occur immediately after giving effect
to the making of such Loan; provided, however, 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.

39

 

(d) Eligible Collateral. The aggregate amount of all outstanding
Loans does not exceed 93% of the GAAP carrying value of the Eligible Collateral
after giving effect to such Loan.

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

	5.	 	AFFIRMATIVE COVENANTS

From the date of the initial Loan and 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.

The Borrower will furnish to the Administrative Agent and
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, the audited consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries as at the end of, and the
related consolidated statements of income, shareholders’ equity and cash flows
for such year, and the corresponding figures as at the end of, and for, the
preceding fiscal year, accompanied by an opinion of Deloitte & Touche LLP or
such other independent certified public accountants of recognized standing as
shall be retained by the Borrower and satisfactory to the Administrative Agent,
which report and opinion shall be prepared in accordance with generally
accepted auditing standards relating to reporting and which report and opinion
shall (A) be unqualified as to going concern and scope of audit and shall state
that such financial statements fairly present the financial condition of the
Borrower and its Consolidated Subsidiaries, as at the dates indicated and the
results of the operations and cash flows for the periods indicated and (B)
contain no material exceptions or qualifications except for qualifications
relating to accounting changes (with which such independent public accountants
concur) in response to FASB releases or other authoritative pronouncements;

(b) As soon as is practicable, but in any event within 55 days after the
end of each of the first three fiscal quarters of each fiscal year, the
unaudited consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, as at the end of, and the related unaudited statements of income
(or changes in financial position) 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 at the end of, and for, the corresponding period
in the preceding fiscal year, together with a certificate signed by the chief
financial 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 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;

40

 

(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
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, the
nature thereof and any action which the Borrower has taken, is taking, or
proposes to take with respect to each such condition or event and (ii)
demonstrating in reasonable detail compliance with the provisions of Sections
5.9, 6.5 and 6.6 hereof;

(d) With reasonable promptness, copies of such financial statements and
reports that the Borrower may make to, or file with, the SEC and such other
information, certificates and data with respect to the Borrower and its
Subsidiaries as from time to time may be reasonably requested by the
Administrative Agent or any of the Lenders (the reports required to be
delivered pursuant to this clause (d) shall be deemed furnished on the date on
which the same have been posted on the Securities and Exchange Commission’s
website at www.sec.gov; provided that the Borrower shall promptly
thereafter furnish paper copies of any such report to the Administrative Agent
or any Lender who makes a specific request for such reports in paper form);

(e) 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 or chief financial 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;

(f) 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, the Borrower shall promptly give notice thereof to the
Lenders and provide 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; and

(g) Together with each set of financial statements required by paragraph
(a) above, a certificate of the independent certified public accountants
rendering the report and opinion thereon (which certificate may be limited to
the extent required by accounting rules or otherwise) (i) stating whether, in
connection with their audit, any Default or Event of Default has come to their
attention, and if such a Default or Event of Default has come to their
attention, specifying the nature and period of existence thereof, and (ii)
stating that based on their audit nothing has come to their attention which
causes them to believe that the matters specified in paragraph (c)(ii) above
for the applicable fiscal year are not stated in accordance with the terms of
this Agreement.

41

 

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, material 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, including
without limitation, the Federal Trade Commission’s “Disclosure Requirements and
Prohibitions Concerning Franchising and Business Opportunity Ventures” as
amended from time to time (16 C.F.R. §§ 436.1 et seq.) and
all state laws and regulations of similar import; provided,
however, that mergers, dissolutions and liquidations permitted under
Section 6.2 shall be permitted.

SECTION 5.3. Insurance.

Maintain with financially sound 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 with
normal industry practices.

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, however, 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 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) of the Borrower knows that any ERISA Event
with respect to any Plan has occurred, a statement of the chief financial
officer of the Borrower, setting forth details as to such ERISA 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 ERISA Event with the PBGC, (b) promptly upon the
reasonable request of the Administrative Agent,

42

 

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 Adverse Effect on the Borrower and its
Subsidiaries taken as a whole.

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
provide the Administrative Agent and its representatives reasonable access to
all such books and records and to any of their properties or assets during
regular business hours (provided that reasonable access to such books
and records and to any of the Borrower’s properties or assets shall be made
available to the Lenders if an Event of Default has occurred and is
continuing), 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 industry practice.

SECTION 5.8. Changes in Character of Business.

Cause the Borrower and its Subsidiaries taken as a whole to be
primarily engaged in the franchising and services businesses.

SECTION 5.9. Collateral Coverage.

At the end of each fiscal quarter of the Borrower, cause the aggregate
amount of outstanding Loans not to exceed 93% of the GAAP carrying value of the
Eligible Collateral as of the end of such fiscal quarter.

	6.	 	NEGATIVE COVENANTS

From the date of the initial Loan and 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:

43

 

SECTION 6.1. Limitation on Indebtedness.

Incur, assume or suffer to exist any Indebtedness of any Material
Subsidiary except:

(a) Indebtedness in existence on the Closing Date, or required to be
incurred pursuant to a contractual obligation in existence on the Closing Date,
which, in either case, 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 6.3(b);

(c) Guaranties;

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

(e) 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 (f) and (g) below, shall not
exceed $400,000,000;

(f) any renewal, extension or modification of Indebtedness under paragraph
(e) above so long as (i) 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;

(g) other Indebtedness of any Material Subsidiary in an aggregate
principal amounts, which, when added to the aggregate outstanding principal
amount of Indebtedness permitted by paragraphs (e) and (f) above, does not
exceed $400,000,000; and

(h) any Indebtedness (other than Rental Vehicle Securitization
Indebtedness) of Avis or its Subsidiaries issued, outstanding or permitted to
exist pursuant to the terms of the Avis Debt Documents as of the date of the
Avis Merger and any renewal, extension or modification of such Indebtedness so
long as (i) 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
issued, outstanding or permitted to exist pursuant to the terms of the Avis
Debt Documents is not increased directly or indirectly;

(i) any Rental Vehicle Securitization Indebtedness;

44

 

(j) any Indebtedness (other than Timeshare Loan Indebtedness) of any
Timeshare Subsidiary, to the extent issued, outstanding or permitted to exist
pursuant to the terms of any Fairfield Debt Documents as of the date of the
Fairfield Merger, or to the extent issued, outstanding or permitted to exist
pursuant to the terms of any other Timeshare Debt Documents as of the date of
the acquisition of the related Timeshare Subsidiary; and, in each case, any
renewal, extension or modification of such Indebtedness so long as (i) 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 issued, outstanding or permitted
to exist pursuant to the terms of the Fairfield Debt Documents or Timeshare
Debt Documents, as applicable, is not increased directly or indirectly;

(k) any Timeshare Loan Indebtedness;

(l) without limiting any of the foregoing, Indebtedness incurred in
connection with the acquisition by the Borrower or any of its Subsidiaries of
vehicles directly from a manufacturer pursuant to such manufacturer’s
repurchase program, provided that (i) such Indebtedness is not greater
than the net book value of such vehicles and (ii) such vehicles could not be
financed under the AESOP Financing Program; and

(m) in addition to the Indebtedness permitted by paragraphs (a) — (l)
above, Indebtedness of PHH and its Subsidiaries so long as, after giving effect
to the incurrence of such Indebtedness and the use of the proceeds thereof, the
ratio of Indebtedness (other than Rental Vehicle Securitization Indebtedness
and Timeshare Loan Indebtedness) of PHH and its Subsidiaries to consolidated
shareholders’ equity of PHH is less than 8 to 1.

SECTION 6.2. 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 or the successor to the Borrower has
unconditionally assumed in writing all of the payment and performance
obligations of the Borrower under this Agreement and the other Fundamental
Documents, (ii) in which the surviving entity becomes a Subsidiary of the
Borrower immediately upon the effectiveness of such merger, consolidation,
dissolution or liquidation, or (iii) involving a Subsidiary in connection with
a transaction permitted by Section 6.2(b); provided, however,
that immediately prior to and on a Pro Forma Basis after giving effect to any
such transaction described in any of the preceding clauses (i), (ii) and (iii)
no Default or Event of Default has occurred and is continuing.

(b) The Borrower and its Subsidiaries (either individually or collectively
and whether in one transaction or series of related transactions) will not sell
or otherwise dispose of all or substantially all of the assets of the Borrower
and its Subsidiaries, taken as a whole.

45

 

SECTION 6.3. Limitations on Liens.

Suffer any Lien on the property of the Borrower or any of the Material
Subsidiaries, 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 material
men 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 the 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 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, however, that no such Lien shall extend to
or cover any 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;

(f) Liens existing on the Closing Date and any extensions or renewals
thereof;

(g) any Liens arising on Timeshare Properties securing obligations which
finance the acquisition, construction or creation of such Timeshare Properties;

(h) other Liens securing obligations having an aggregate principal amount
not to exceed 15% of Consolidated Net Worth;

46

 

(i) any Liens securing Indebtedness and related obligations of the
Borrower or any of its Material Subsidiaries to the extent such Indebtedness
and related obligations are permitted under Section 6.1(h) hereof;

(j) any Liens securing Indebtedness and related obligations of the
Borrower or any of its Material Subsidiaries to the extent such Indebtedness
and related obligations are permitted under Section 6.1(i) hereof;

(k) any Liens securing Indebtedness and related obligations of the
Borrower or any of its Material Subsidiaries to the extent such Indebtedness
and related obligations are permitted under Section 6.1(j) hereof; and

(l) any Liens securing Indebtedness and related obligations of the
Borrower or any of its Material Subsidiaries to the extent such Indebtedness
and related obligations are permitted under Section 6.1(k) hereof.

SECTION 6.4. 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 and its Subsidiaries may enter into
sale-leaseback transactions relating to assets not in excess of $350,000,000 in
the aggregate on a cumulative basis, and except (a) any arrangements of
Fairfield or any of its Subsidiaries existing as of the date of the Fairfield
Merger and any renewals, extensions or modifications thereof, or replacements
or substitutions therefor, 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,
(b) in connection with the issuance of Rental Vehicle Securitization
Indebtedness and (c) in connection with Permitted Timeshare Collateral.

SECTION 6.5. Debt to Capitalization Ratio.

Permit the Debt to Capitalization Ratio on the last day of any fiscal
quarter to be greater than 0.5 to 1.0.

SECTION 6.6. Interest Coverage Ratio.

Permit the Interest Coverage Ratio for any Rolling Period to be less
than 3.0 to 1.0.

SECTION 6.7. Accounting Practices.

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

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	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 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, the Notes 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 days, and in the case of payments other than
of any principal amount of or interest on any Loan or the Notes, such default
shall continue unremedied for five days after receipt by the Borrower of an
invoice therefor;

(c) default shall be made in the due observance or performance of any
covenant, condition or agreement contained in Section 5.1(e) (with respect to
notice of Default or Events of Default), Section 5.8 or Section 6 of this
Agreement;

(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
of the Borrower or any of its Subsidiaries (other than Securitization
Indebtedness) where the amount or amounts of such Indebtedness exceed
$50,000,000 in the aggregate; or (ii) default in payment or performance shall
be made with respect to any Indebtedness of the Borrower or any of its
Subsidiaries (other than Securitization Indebtedness) where the amount or
amounts of such Indebtedness exceed $50,000,000 in the aggregate, if the effect
of such default is to result in the acceleration of the maturity of such
Indebtedness; 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 (other than
Securitization Indebtedness) where the amount or amounts of such Indebtedness
exceed $50,000,000 in the aggregate, provided that clause (iii) shall
not apply to secured Indebtedness that becomes due as a result of a voluntary
sale of the property or assets securing such Indebtedness and provided,
further that clauses (ii) and (iii) shall not apply to any
Indebtedness of any Subsidiary issued and outstanding prior to the date 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) if

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such default or circumstance arises solely as a result of a “change of
control” provision applicable to such Indebtedness 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, 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 $50,000,000
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) an ERISA Event shall have occurred that, when taken together with all
other ERISA Events that have occurred, could reasonably be expected to result
in 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 shall, if directed by the Required
Lenders, take either or both of the following actions, at the same or different
times (and will deliver notice thereof to the Borrower pursuant to Section 9.1
other than with respect of an Event of Default specified in paragraph (f) or
(g) above): 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 any further requirement
of presentment, demand, protest, notice of acceleration, notice of intent to
accelerate or other notice of any kind, all of which are hereby expressly
waived,

49

 

anything in this Agreement or in the Notes to the contrary notwithstanding. 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.

(a) The general administration of the Fundamental Documents and any
other documents contemplated by this Agreement shall be by the Administrative
Agent or its designees. 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. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default or Event of Default
has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.9), and (c) except
as expressly set forth herein, the Administrative Agent shall not have any duty
to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Subsidiaries or Affiliates
that is communicated to or obtained by the bank serving as Administrative Agent
or any of its Affiliates in any capacity. The Administrative Agent shall not
be liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
9.9) or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by
the Borrower or a Lender, and the Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with this Agreement, (ii) the
contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Section 4 or elsewhere herein. Any Lender which is not
the Administrative Agent (regardless of whether such Lender bears the title of
any other Agent or any similar title, as indicated on the signature pages
hereto) for the credit facility hereunder shall not have any duties or
responsibilities except as a Lender hereunder.

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(b) The Administrative Agent shall also act as the “collateral agent”
under the Fundamental Documents, and each of the Lenders hereby irrevocably
appoints and authorizes the Administrative Agent to act as the agent of such
Lender for purposes of acquiring, holding and enforcing any and all Liens on
Collateral granted by the Borrower to secure any of the Secured Obligations,
together with such powers and discretion as are reasonably incidental thereto.
In this connection, the Administrative Agent, as “collateral agent” (and any
co-agents, sub-agents and attorneys-in-fact appointed by the Administrative
Agent pursuant to Section 8.7 for purposes of holding or enforcing any Lien on
the Collateral (or any portion thereof) granted under the Collateral Documents,
or for exercising any rights and remedies thereunder at the direction of the
Administrative Agent), shall be entitled to the benefits of all provisions of
this Article 8 (including, without limitation, Section 8.6, as though such
co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under
the Fundamental Documents) as if set forth in full herein with respect thereto.
Notwithstanding the foregoing, all rights of the Administrative Agent under
this Section 8.1(b) shall be subject to the rights of (i) the Collateral Agent
under the Collateral Agency Agreement (as defined in the Mortgage, Pledge and
Security Agreement) and (ii) the Custodian under the Custodial Agreements (as
defined in the Mortgage, Pledge and Security Agreement).

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
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
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 applicable to ABR Loans) to
the Administrative Agent.

(b) Any amounts received by the Administrative Agent in connection with
this Agreement or the Notes 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, second, to pay accrued
but unpaid interest on the Notes, third, the principal balance outstanding on
the Notes 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 Lenders, promptly after
collection by the Administrative Agent, in

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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.

(c) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that the Borrower will not make
such payment, the Administrative Agent may assume that the Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender, in immediately available funds with interest
thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate (as defined in the definition of
Alternative Base Rate) and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

SECTION 8.3. Sharing of Setoffs.

Each of the Lenders agrees that if it shall, through the operation of
Section 2.18 hereof or the exercise of a right of bank’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, obtain payment in respect of its Revolving Credit Loans as a
result of which the unpaid portion of its Revolving Credit 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 Revolving Credit
Loans of such other Lenders, so that the aggregate unpaid principal amount of
each of the Lenders’ Revolving Credit Loans and its participation in Revolving
Credit Loans of the other Lenders shall be in the same proportion to the
aggregate unpaid principal amount of all Revolving Credit Loans then
outstanding as the principal amount of its Revolving Credit Loans prior to the
obtaining of such payment was to the principal amount of all Revolving Credit
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.

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SECTION 8.5. Liability of Administrative Agent.

(a) The Administrative Agent or any Affiliate thereof, 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, any Affiliate thereof nor their 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. The Administrative Agent, its Affiliates and their respective
directors, officers, agents, and employees shall in no 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, its Affiliates nor any of their
respective directors, officers, employees, or agents shall be responsible to
any of the Lenders for the due execution, validity, genuineness, effectiveness,
sufficiency, or enforceability of, or for any statement, warranty, or
representation in, or for the perfection or creation of any security interest
contemplated by, this Agreement or any related agreement, document or order, or
for the designation or failure to designate this transaction as a “Highly
Leveraged Transaction” for regulatory purposes, 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 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 capacity 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. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon; provided, that the
foregoing shall not include any such oral or telephonic statements made by the
Borrower or any of its Affiliates. In determining compliance with any
condition hereunder to the making of a Loan, that by its terms must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan.

SECTION 8.6. Reimbursement and Indemnification.

Each of the Lenders severally and not jointly agrees (to the extent
not reimbursed or otherwise paid by the Borrower (pursuant to Section 9.5
hereof)) (i) to reimburse the Administrative Agent, in the amount of its
proportionate share of the Total Commitment in effect

53

 

on the date on which such reimbursement is sought (or, if reimbursement is
sought after the date upon which the Total Commitment shall have been
terminated in its entirety, in the amount of its proportionate share of the
Total Commitment immediately prior to such date), for any expenses and fees
incurred for the benefit of the Lenders under the Fundamental Documents,
including, without limitation, counsel fees and compensation of agents and
employees paid for services rendered on behalf of the Lenders, and any other
expense incurred in connection with the administration or enforcement thereof
and (ii) to indemnify and hold harmless the Administrative Agent and any of its
directors, officers, employees, or agents, on demand, in the amount of its
proportionate share of the Total Commitment in effect on the date on which such
indemnification is sought (or, if indemnification is sought after the date upon
which the Total Commitment shall have been terminated in its entirety, in the
amount of its proportionate share of the Total Commitment immediately prior to
such date), 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 Bank of America, N.A. 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 or
any Subsidiary or other Affiliate thereof as though it were not the
Administrative Agent on behalf of the Lenders under this Agreement.

The Administrative Agent may perform any and all of its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent (including for purposes of holding or
enforcing any Lien on the Collateral (or any portion thereof) granted under the
Collateral Documents or of exercising any rights and remedies thereunder at the
direction of the Administrative Agent); provided that no such
delegation shall limit or reduce in any way the Administrative Agent’s duties
and obligations to the Borrower under this Agreement. The Administrative Agent
and any such sub-agent, and any Affiliate of the Administrative Agent or any
such sub-agent, may perform any and all of its duties and exercise its rights
and powers through their respective directors, officers, employees, agents and
advisors. The exculpatory provisions of Section 8.5 shall apply to any such
sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with
the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent.

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, and will continue to make such
decisions, based on its own

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analysis of the transactions contemplated hereby, based on such documents
and other information as it has deemed appropriate and on 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. 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 of America or of
any State thereof and having a combined capital and surplus of at least
$500,000,000; provided that if the Administrative Agent shall notify
the Borrower and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other
Fundamental Documents (except that in the case of any collateral security held
by the Administrative Agent on behalf of the Lenders under any of the
Fundamental Documents, the retiring Administrative Agent shall continue to hold
such collateral security until such time as a successor Administrative Agent is
appointed) and (2) all payments, communications and determinations provided to
be made by, to or through the Administrative Agent shall instead be made by or
to each Lender directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. 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 Section 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.

SECTION 8.11. Collateral Matters.

The Lenders irrevocably authorize the Administrative Agent to release any
Lien on any property granted to or held by the Administrative Agent under any
Fundamental Document (i) upon termination of the aggregate Commitments and
payment in full of all

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Obligations (other than contingent indemnification obligations not yet
accrued and payable), (ii) that is sold or to be sold as part of or in
connection with any sale permitted hereunder or under any other Fundamental
Document, (iii) subject to Section 9.9, if approved, authorized or ratified in
writing by the Required Lenders, or (iv) as such releases are required or
authorized under the Mortgage, Pledge and Security Agreement.

Upon request by the Administrative Agent at any time, the Required Lenders
will confirm in writing the Administrative Agent’s authority to release its
interest in particular types or items of property pursuant to this Section
8.11. As specified in this Section 8.11, the Administrative Agent will, at the
Borrower’s expense, execute and deliver to the Borrower such documents as the
Borrower may reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted under the
Collateral Documents, in accordance with the terms of the Fundamental Documents
and this Section 9.11.

SECTION 8.12. Agents Generally.

Except as expressly set forth herein, no Agent shall have any duties or
responsibilities hereunder in its capacity as such; and shall incur no
liability under this Agreement and the other Fundamental Documents.

	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 as follows:

          (i) if to the Administrative Agent, to it at 101 North Tryon Street,
Charlotte, NC 28255, Attention of Merci Owens (Facsimile No.
704-409-0002) for notice of fees, borrowings, payments and Attention of
Steven Gazzillo (Facsimile No. 646-366-4507) for notice of financings and
other notices;

          (ii) if to the Borrower, to it at 9 West 57th Street, New York, NY
10019, Attention of Ronald L. Nelson, Chief Financial Officer (Facsimile
No. 212-413-1931), Eric J. Bock, Senior Vice President and Corporate
Secretary (Facsimile No. 212-413-1922) and David B. Wyshner, Executive
Vice-President and Treasurer (Facsimile No. 973-496-0690), with a copy to
Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY
10036, Attention: James Douglas (Facsimile No. 917-777-2868); and

          (iii) if to a Lender, to it at its address notified to the
Administrative Agent (or set forth in its Assignment and Acceptance or
other agreement pursuant to which it became a Lender hereunder);

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or such other address as such party may from time to time designate by
giving written notice to the other parties hereunder.

(b) Any party hereto may change its address or telecopy number and other
communications hereunder for notices and other communications hereunder by
notice to the other parties hereto. 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 date of receipt.

(c) 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 Commitment has 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, however, that the Borrower may not
assign its 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, provided that the consent of the
Borrower shall not be required if a Default has occurred and is continuing)
assign to one or more banks or other entities 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
Revolving Credit Loans at the time owing to it and the Notes held by it) (a
“Ratable Assignment”); provided, however, that (1)
each Ratable Assignment shall be of a constant, and not a varying, percentage
of the assigning Lender’s rights

57

 

and obligations under this Agreement, (2) the amount of the Commitment 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 principal amount of $1,000,000 (or, if less,
the remaining portion of the assigning Lender’s rights and obligations under
this Agreement) unless otherwise agreed by the Borrower and the Administrative
Agent and (3) 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 (or such shorter period approved by the Administrative Agent) after the
date of 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).

(c) Notwithstanding the other provisions of this Section 9.3, each Lender
may at any time make a Ratable Assignment 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 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 hereof) 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

58

 

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 Commitments 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 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
substantially 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 the
Commitment has been assigned by an assigning Lender, then such Lender shall
deliver its 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, a new Note to
the order of such assignee in an amount equal to the Commitment assumed by it
pursuant to such Assignment and Acceptance and a new Note to the order of the
assigning Lender in an amount equal to the Commitment 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 as of the Closing Date and shall otherwise be in substantially
the forms of Exhibit A hereto. No assignment shall be effective for purpose of
the Agreement unless it has been recorded in the Register as provided in this
paragraph.

(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
entities (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, however, 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

59

 

the cost protection provisions contained in Sections 2.13, 2.14, 2.16 and
2.20 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; provided
that a Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 2.20 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.20(e) as
though it were a Lender, 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, including confidential information, relating to the Borrower
furnished to the Administrative Agent by or on behalf of the Borrower;
provided that prior to any such disclosure, each such assignee or
Participant or proposed assignee or Participant agrees in writing to be bound
by the confidentiality provisions of Section 9.15.

(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, however, that, subject to
preceding clauses (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, with respect to any Lender which is a fund,
to the fund’s trustee in support of its obligations to such trustee, 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.

(k) Notwithstanding anything to the contrary contained herein, any Lender
(a “Granting Lender”) may grant to a special purpose funding vehicle
(an “SPC”), identified as such in writing from time to time by the
Granting Lender to the Administrative Agent and the Borrower, the option to
provide to the Borrower all or any part of any Revolving Credit Loan that such
Granting Lender would otherwise be obligated to make to the Borrower pursuant
to Section 2.1 or 2.5, provided that (i) nothing herein shall
constitute a commitment to make any Revolving Credit Loan by any SPC and (ii)
if an SPC elects not to exercise such option or otherwise fails to provide all
or any part of such Revolving Credit Loan or fund any other obligation required
to be funded by it hereunder, the Granting Lender shall be obligated to make
such Revolving Credit Loan or fund such obligation pursuant to the terms
hereof. The making of a Revolving Credit Loan by an SPC hereunder shall
satisfy the obligation of the Granting Lenders to make Revolving Credit Loans
to the same extent, and as if, such Loan were made by the Granting Lender.
Each party hereto hereby agrees that no SPC shall be liable for any payment
under this Agreement for which a Lender would otherwise be liable, for so long
as, and to the extent, the related Granting Lender makes such payment. In
furtherance of the foregoing,

60

 

each party hereto hereby agrees that, prior to the date that is one year
and one day after the payment in full of all outstanding senior indebtedness of
any SPC, it will not institute against or join any other person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or similar proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the
contrary contained in this Section 9.3 any SPC may (i) with notice to, but
without the prior written consent of, the Borrower or the Administrative Agent
and without paying any processing fee therefor, assign all or a portion of its
interests in any Revolving Credit Loan to its Granting Lender or to any
financial institutions providing liquidity and/or credit facilities to or for
the account of such SPC to fund the Revolving Credit Loans made by SPC or to
support the securities (if any) issued by such SPC to fund such Revolving
Credit Loans and (ii) disclose on a confidential basis any non-public
information relating to its Revolving Credit Loans to any rating agency,
commercial paper dealer or provider of a surety, guarantee or credit or
liquidity enhancement to such SPC.

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 Agents in connection with the syndication, preparation,
execution, delivery and administration of this Agreement, the Notes, the making
of the Loans, the reasonable fees and disbursements of Shearman & Sterling LLP,
counsel to the Administrative Agent, as well as all reasonable out-of-pocket
expenses incurred by the Lenders 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 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 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 Closing Date and
thereafter on demand. The obligations of the Borrower under this Section shall
survive the termination of this Agreement and the payment of the Loans.

SECTION 9.5. Indemnity.

Further, by the execution hereof, the Borrower agrees to indemnify and
hold harmless the Agents and the Lenders and their respective directors,
officers, employees, agents and advisors (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, however, 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,
however, that this Section 9.5 shall

61

 

not be construed to expand the scope of the Borrower’s 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 the
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 PROVISIONS RELATING TO
INTEREST RATES, ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

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 Section 1 or 8 hereof,
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, 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, however, 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, or
(y) alter the stated maturity or principal amount of any installment of any
Loan or decrease the rate of interest payable thereon or extend the scheduled
date of any payment thereof, or the rate at which the Facility Fees accrue or
the scheduled date of payment thereof or (z) waive a default under Section 7(b)
hereof with respect to a scheduled principal installment of any Loan; and 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 (iii) release all or substantially all of the Collateral
in any transaction or series of related transactions; and provided,
further that no such

62

 

modification or amendment shall decrease the Commitment of any Lender
without the written consent of such Lender. 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 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 HEREOF. 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

63

 

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,
HOWEVER, 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.

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, the
Syndication Agent or any Lender (other than the provisions of the letter
agreement dated May 27, 2004, among the Borrower, Bank of America, N.A. and
Banc of America Securities LLC, relating to fees and expenses and syndication
issues) prior to the execution of this Agreement which relate to Loans to be
made hereunder shall be replaced by the terms of this Agreement.

64

 

SECTION 9.15. Confidentiality.

The Administrative Agent and each Lender agrees that it will not
disclose without the consent of the Borrower any information with respect to
the Borrower or any of its Subsidiaries which is furnished pursuant to this
Agreement or any other Fundamental Document or any document contemplated by or
referred to herein or therein and which is designated by the Borrower or any
Subsidiary in writing as confidential (such information, “Confidential
Information”), except (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other
professional advisors who need to know the Confidential Information for
purposes related to this Agreement or any other Fundamental Document or any
transactions contemplated thereby or reasonably incidental to the
administration of this Agreement or the other Fundamental Documents (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Confidential Information and agree to keep such
Confidential Information confidential in accordance with the provisions of this
Section 9.15), (b) to the extent requested by any regulatory authority, (c) to
the extent required by Applicable Law, regulations or by any subpoena or
similar legal process, provided that the Administrative Agent or such
Lender, as the case may be, shall request confidential treatment of such
Confidential Information to the extent permitted by Applicable Law and the
Administrative Agent or such Lender, as the case may be, shall, to the extent
permitted by Applicable Law, promptly inform the Borrower with respect thereto
so that the Borrower may seek appropriate protective relief to the extent
permitted by Applicable Law, provided further that in the
event that such protective remedy or other remedy is not obtained, the
Administrative Agent or such Lender, as the case may be, shall furnish only
that portion of the Confidential Information that is legally required and shall
disclose the Confidential Information in a manner reasonably designed to
preserve its confidential nature, (d) to any other Lender party to this
Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (g) with the consent of the Borrower or
(h) to the extent such Information (i) becomes publicly available other than as
a result of a breach of this Section 9.15 or (ii) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower after the Closing Date.

SECTION 9.16. Delivery of Addenda.

Each initial Lender shall become a party to this Agreement by
delivering to the Administrative Agent an Addendum duly executed by such
Lender.

65

 

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

	 	 	 	 	 
	 	 	CENDANT CORPORATION,
	 	 	as Borrower
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ronald L. Nelson
	

	 	Title:
	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
	 	 	as Administrative Agent and Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John W. Pocalyko
	

	 	Title:
	 	Managing Director
	 
	 	 	 	 
	 	 	CITICORP USA, INC.,
	 	 	as Syndication Agent and Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Diane L. Pockaj
	

	 	Title:
	 	Director

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower
”), the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	BANK OF AMERICA N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ John W. Pocalyko
	

	 	Title:
	 	Managing Director
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower”),
the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	CITICORP USA, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Diane L. Pockaj
	

	 	Title:
	 	Director
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower”),
the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI, LTD.,

NEW YORK BRANCH
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ro Toyoshima
	

	 	Title:
	 	Authorized Signatory
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower”),
the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH
	 
	 	 	 	 
	

	 	By:
	 	/s/ Rod Hurst
	

	 	Title:
	 	Director
	 
	 	 	 	 
	

	 	By:
	 	/s/ James Gibson
	

	 	Title:
	 	Managing Director
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower
”), the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Ballagher
	

	 	Title:
	 	Senior Vice President & Team Leader
	 
	 	 	 	 
	 	 	Account Officer:
	 
	 	 	 	 
	

	 	By:
	 	/s/ Masamichi Iwase
	

	 	Title:
	 	Vice President
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower”),
the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Steve Barlow
	

	 	Title:
	 	Senior Director
	 
	 	 	 	 
	Dated as of June 17, 2004
	 	 	 	 

 

 

LENDER ADDENDUM

The undersigned Lender (i) agrees to all of the provisions of the Three
Year Senior Asset-Linked Revolving Credit Agreement, dated as of June 17, 2004
(the “Credit Agreement”), among CENDANT CORPORATION (the “Borrower”),
the Lenders referred to therein and BANK OF AMERICA, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Commitment, as set
forth opposite the undersigned Lender’s name in Schedule 2.1 to the Credit
Agreement, as such amount may be changed from time to time as provided in the
Credit Agreement. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert H. Riley III
	

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	Dated as of June 17, 2004

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