Document:

EX-10.47

 

EXHIBIT
10.47

 

$1,300,000,000

AMENDED AND RESTATED COMPETITIVE ADVANCE AND

REVOLVING CREDIT AGREEMENT,

Dated as of January 6, 2006,

among

PHH CORPORATION,

as Borrower,

PHH VEHICLE MANAGEMENT SERVICES INC.,

as Canadian Subsidiary Borrower,

THE LENDERS REFERRED TO HEREIN,

CITICORP USA, INC.,

as Syndication Agent,

THE BANK OF NOVA SCOTIA

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 

J.P. MORGAN SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arrangers and Joint Bookrunners

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	THE LOANS
	 	 	17	 
	 

	 	SECTION 2.1. Commitments
	 	 	17	 
	 

	 	SECTION 2.2. Loans
	 	 	18	 
	 

	 	SECTION 2.3. Use of Proceeds
	 	 	19	 
	 

	 	SECTION 2.4. Competitive Bid Procedure
	 	 	19	 
	 

	 	SECTION 2.5. Revolving Credit Borrowing Procedure
	 	 	22	 
	 

	 	SECTION 2.6. Canadian Revolving Borrowing Procedure
	 	 	22	 
	 

	 	SECTION 2.7. Refinancings
	 	 	23	 
	 

	 	SECTION 2.8. Fees
	 	 	23	 
	 

	 	SECTION 2.9. Repayment of Loans; Evidence of Debt
	 	 	24	 
	 

	 	SECTION 2.10. Interest on Loans
	 	 	25	 
	 

	 	SECTION 2.11. Interest on Overdue Amounts
	 	 	26	 
	 

	 	SECTION 2.12. Alternate Rate of Interest
	 	 	26	 
	 

	 	SECTION 2.13. Termination and Reduction of Commitments; Increase of Revolving
Commitments; Reallocation of       
Commitments

	 	 	27	 
	 

	 	SECTION 2.14. Prepayment of Loans
	 	 	29	 
	 

	 	SECTION 2.15. Eurocurrency Reserve Costs
	 	 	30	 
	 

	 	SECTION 2.16. Reserve Requirements; Change in Circumstances
	 	 	30	 
	 

	 	SECTION 2.17. Change in Legality
	 	 	32	 
	 

	 	SECTION 2.18. Reimbursement of Lenders
	 	 	32	 
	 

	 	SECTION 2.19. Pro Rata Treatment
	 	 	33	 
	 

	 	SECTION 2.20. Right of Setoff
	 	 	34	 
	 

	 	SECTION 2.21. Manner of Payments
	 	 	34	 
	 

	 	SECTION 2.22. Withholding Taxes
	 	 	34	 
	 

	 	SECTION 2.23. Certain Pricing Adjustments
	 	 	36	 
	 

	 	SECTION 2.24. Revolving Letters of Credit
	 	 	37	 
	 

	 	SECTION 2.25. Canadian Letters of Credit
	 	 	41	 
	 

	 	SECTION 2.26. Canadian Bankers’ Acceptances
	 	 	45	 
	 
	 	 	 	 	 	 
	3.

	 	REPRESENTATIONS AND WARRANTIES OF BORROWER
	 	 	47	 
	 

	 	SECTION 3.1. Corporate Existence and Power
	 	 	47	 
	 

	 	SECTION 3.2. Corporate Authority and No Violation
	 	 	47	 
	 

	 	SECTION 3.3. Governmental and Other Approval and Consents
	 	 	47	 
	 

	 	SECTION 3.4. Financial Statements of Borrower
	 	 	48	 
	 

	 	SECTION 3.5. No Material Adverse Change
	 	 	48	 
	 

	 	SECTION 3.6. Copyrights, Patents and Other Rights
	 	 	48	 
	 

	 	SECTION 3.7. Title to Properties
	 	 	48	 
	 

	 	SECTION 3.8. Litigation
	 	 	48	 
	 

	 	SECTION 3.9. Federal Reserve Regulations
	 	 	48	 
	 

	 	SECTION 3.10. Investment Company Act, Public Utility Company Act
	 	 	49	 
	 

	 	SECTION 3.11. Enforceability
	 	 	49	 
	 

	 	SECTION 3.12. Taxes
	 	 	49	 
	 

	 	SECTION 3.13. Compliance with ERISA
	 	 	49	 
	 

	 	SECTION 3.14. Disclosure
	 	 	49	 
	 

	 	SECTION 3.15. Environmental Liabilities
	 	 	50	 

- i - 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	4.

	 	CONDITIONS OF LENDING
	 	 	50	 
	 

	 	SECTION 4.1. Conditions Precedent to Effectiveness
	 	 	50	 
	 

	 	SECTION 4.2. Conditions Precedent to Each Loan and Letter of Credit
	 	 	51	 
	 
	 	 	 	 	 	 
	5.

	 	AFFIRMATIVE COVENANTS
	 	 	52	 
	 

	 	SECTION 5.1. Financial Statements, Reports, etc
	 	 	52	 
	 

	 	SECTION 5.2. Corporate Existence; Compliance with Statutes
	 	 	53	 
	 

	 	SECTION 5.3. Insurance
	 	 	53	 
	 

	 	SECTION 5.4. Taxes and Charges
	 	 	53	 
	 

	 	SECTION 5.5. ERISA Compliance and Reports
	 	 	54	 
	 

	 	SECTION 5.6. Maintenance of and Access to Books and Records; Examinations
	 	 	54	 
	 

	 	SECTION 5.7. Maintenance of Properties
	 	 	55	 
	 
	 	 	 	 	 	 
	6.

	 	NEGATIVE COVENANTS
	 	 	55	 
	 

	 	SECTION 6.1. Limitation on Material Subsidiary Indebtedness
	 	 	55	 
	 

	 	SECTION 6.2. Limitation on Transactions with Affiliates
	 	 	56	 
	 

	 	SECTION 6.3. Consolidation, Merger, Sale of Assets
	 	 	56	 
	 

	 	SECTION 6.4. Limitations on Liens
	 	 	56	 
	 

	 	SECTION 6.5. Sale and Leaseback
	 	 	58	 
	 

	 	SECTION 6.6. Consolidated Net Worth
	 	 	58	 
	 

	 	SECTION 6.7. Ratio of Indebtedness To Tangible Net Worth
	 	 	58	 
	 

	 	SECTION 6.8. Accounting Practices
	 	 	58	 
	 

	 	SECTION 6.9. Restrictions Affecting Subsidiaries
	 	 	58	 
	 
	 	 	 	 	 	 
	7.

	 	EVENTS OF DEFAULT
	 	 	59	 
	 
	 	 	 	 	 	 
	8.

	 	THE ADMINISTRATIVE AGENT AND EACH REVOLVING ISSUING LENDER
	 	 	61	 
	 

	 	SECTION 8.1. Administration by Administrative Agent
	 	 	61	 
	 

	 	SECTION 8.2. Advances and Payments
	 	 	61	 
	 

	 	SECTION 8.3. Sharing of Setoffs and Cash Collateral
	 	 	62	 
	 

	 	SECTION 8.4. Notice to the Lenders
	 	 	62	 
	 

	 	SECTION 8.5. Liability of the Administrative Agent and Each Revolving Issuing Lender
	 	 	62	 
	 

	 	SECTION 8.6. Reimbursement and Indemnification
	 	 	63	 
	 

	 	SECTION 8.7. Rights of Administrative Agent
	 	 	63	 
	 

	 	SECTION 8.8. Independent Investigation by Lenders
	 	 	64	 
	 

	 	SECTION 8.9. Notice of Transfer
	 	 	64	 
	 

	 	SECTION 8.10. Successor Administrative Agent
	 	 	64	 
	 

	 	SECTION 8.11. Resignation of a Revolving Issuing Lender
	 	 	64	 
	 

	 	SECTION 8.12. Syndication Agent and Co-Documentation Agents
	 	 	64	 
	 
	 	 	 	 	 	 
	9.

	 	PARENT GUARANTY OF SUBSIDIARY BORROWER OBLIGATIONS
	 	 	65	 
	 

	 	SECTION 9.1. Guaranty
	 	 	65	 
	 

	 	SECTION 9.2. No Subrogation
	 	 	65	 
	 

	 	SECTION 9.3. Amendments, etc.
with respect to the Obligations; Waiver of Rights
	 	 	66	 
	 

	 	SECTION 9.4. Parent Guaranty Absolute and Unconditional
	 	 	66	 
	 

	 	SECTION 9.5. Reinstatement
	 	 	67	 
	 
	 	 	 	 	 	 
	10.

	 	MISCELLANEOUS
	 	 	67	 
	 

	 	SECTION 10.1. Notices
	 	 	67	 
	 

	 	SECTION 10.2. Survival of Agreement, Representations and Warranties, etc.
	 	 	68	 
	 

	 	SECTION 10.3. Successors and Assigns; Syndications; Loan Sales; Participations
	 	 	68	 
	 

	 	SECTION 10.4. Expenses; Documentary Taxes
	 	 	71	 

- ii -

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	SECTION 10.5. Indemnity
	 	 	71	 
	 

	 	SECTION 10.6. CHOICE OF LAW
	 	 	71	 
	 

	 	SECTION 10.7. No Waiver
	 	 	72	 
	 

	 	SECTION 10.8. Extension of Maturity
	 	 	72	 
	 

	 	SECTION 10.9. Amendments, etc.
	 	 	72	 
	 

	 	SECTION 10.10. Severability
	 	 	74	 
	 

	 	SECTION 10.11. SERVICE OF PROCESS; WAIVER OF JURY TRIAL
	 	 	74	 
	 

	 	SECTION 10.12. Headings
	 	 	75	 
	 

	 	SECTION 10.13. Execution in Counterparts
	 	 	75	 
	 

	 	SECTION 10.14. Entire Agreement
	 	 	75	 
	 

	 	SECTION 10.15. Foreign Currency Judgments
	 	 	75	 
	 

	 	SECTION 10.16. Language
	 	 	76	 
	 

	 	SECTION 10.17. Confidentiality
	 	 	76	 
	 

	 	SECTION 10.18. USA PATRIOT Act
	 	 	76	 

- iii -

 

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	1.1A
	 	Revolving Commitments
	1.1B
	 	Available Foreign Currencies
	2.24(l)
	 	Existing Revolving Letters of Credit
	2.25(l)
	 	Existing Canadian Letters of Credit
	6.1
	 	Existing Material Subsidiary Indebtedness
	6.4
	 	Existing Liens
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	A-1
	 	Opinion of In-house Counsel
	A-2
	 	Opinion of Thacher, Proffitt & Wood LLP
	A-3
	 	Opinion of Blake, Cassells & Graydon LLP
	B
	 	Form of Assignment and Acceptance
	C
	 	Form of Compliance Certificate
	D-1
	 	Form of Competitive Bid Request
	D-2
	 	Form of Competitive Bid Invitation
	D-3
	 	Form of Competitive Bid
	D-4
	 	Form of Competitive Bid Accept/Reject Letter
	E-1
	 	Form of Revolving Credit Borrowing Request
	E-2
	 	Form of Canadian Revolving Borrowing Request
	F
	 	Form of New Lender Supplement
	G
	 	Form of Revolving Commitment Increase Supplement
	H
	 	Form of Joinder Agreement

- iv -

 

 

          AMENDED AND RESTATED COMPETITIVE ADVANCE AND REVOLVING CREDIT AGREEMENT (the
“Agreement”), dated as of January 6, 2006, among PHH CORPORATION, a Maryland corporation
(the “Borrower”), PHH VEHICLE MANAGEMENT SERVICES INC., a Canadian corporation (the
“Canadian Subsidiary Borrower”), the Lenders referred to herein, CITICORP USA, INC., as
syndication agent, THE BANK OF NOVA SCOTIA and WACHOVIA BANK, NATIONAL ASSOCIATION, as
co-documentation agents, and JPMORGAN CHASE BANK, N.A., as administrative agent (the
“Administrative Agent”) for the Lenders.

INTRODUCTORY STATEMENT

          The Borrower, certain of the Lenders and the Administrative Agent are parties to a Three Year
Competitive Advance and Revolving Credit Agreement, dated as of December 21, 2004 (the
“Existing Revolving Credit Agreement”), pursuant to which the Lenders party thereto
established a $1,250,000,000 committed revolving credit facility under which Revolving Credit Loans
(as defined below) may be made to the Borrower.

          The Borrower has requested that the Termination Date (as defined below) be extended to January
6, 2011, the aggregate Commitments (as defined below) be increased to $1,300,000,000, a committed
revolving credit facility under which Canadian Revolving Loans (as defined below) be made to the
Canadian Subsidiary Borrower and certain other amendments to the Existing Revolving Credit
Agreement be made, including to effect the foregoing.

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

1. DEFINITIONS

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

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

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

     “Acceptance Fee” shall mean a fee payable in Canadian Dollars by the Canadian
Subsidiary Borrower to the Canadian Revolving Lender with respect to the acceptance of a
Canadian B/A, calculated on the face amount of the Canadian B/A at a rate per annum equal to
the LIBOR Spread then in effect on the basis of the number of days in the applicable
Contract Period (inclusive of the first day and exclusive of the last day) and a year of 365
days.

     “Act” shall have the meaning assigned to such term in Section 10.18.

     “Affiliate” shall mean as to any Person, any Person which, directly or
indirectly, is in control of, is controlled by, or is under common control with, such
Person. 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

 

2

direction of the management and policies of such controlled Person whether by contract
or otherwise.

     “Agents” shall mean the collective reference to the Administrative Agent, the
Syndication Agent and the Co-Documentation Agents.

     “Alternate Base Rate” shall mean for any day, a rate per annum (rounded upwards
to the nearest 1/16 of 1% if not already an integral multiple of 1/16 of 1%) equal to the
greater of (a) the Prime Rate in effect for such day and (b) the Federal Funds Effective
Rate in effect for such day plus 1/2 of 1%.

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

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

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

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

     “Available Foreign Currencies” shall mean the currencies set forth on Schedule
1.1B (including, in any event in the case of Canadian Revolving Loans, Canadian Dollars),
and any other available and other freely-convertible non-Dollar currency selected by the
Borrower or any Subsidiary Borrower and approved (which approval shall not be unreasonably
withheld) in writing by the Administrative Agent.

     “Basis Point” shall mean 1/100th of 1%.

     “Board” shall mean the Board of Governors of the Federal Reserve System.

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

     “Business Day” shall mean, with respect to any Loan, any day other than a
Saturday, Sunday or other day on which banks in New York City are permitted or required by
law to close; provided that when used in connection (i) with a LIBOR Loan, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in
deposits in Dollars or the applicable Available Foreign Currency on the London Interbank
Market (or such other interbank

 

3

eurocurrency market where the foreign currency and exchange operations in respect of
Dollars or the applicable Available Foreign Currency, as the case may be, are then being
conducted for delivery on the first day of such Interest Period) and (ii) a Canadian
Revolving Loan, the term “Business Day” shall also exclude any day on which banks in Toronto
are permitted or required by law to close.

     “Canadian ABR Loan” shall mean Loans the rate of interest applicable to which
is based upon the Canadian Alternate Base Rate.

     “Canadian Alternate Base Rate” shall mean, on any day, the greater of (a) the
Canadian Base Rate in effect for such day and (b) the Federal Funds Effective Rate in effect
for such day plus 1/2 of 1% per annum.

     “Canadian Bankers’ Acceptance” and “Canadian B/A” shall mean a bill of
exchange subject to the Depository Bills and Notes Act (Canada) denominated in Canadian
Dollars, drawn by the Canadian Subsidiary Borrower and accepted by the Canadian Revolving
Lender in accordance with this Agreement.

     “Canadian Base Rate” shall mean the rate per annum determined by the Canadian
Revolving Lender from time to time as its base rate for Dollar-denominated commercial loans
in Canada. For purposes of this Agreement, any change in the Canadian Alternate Base Rate
due to a change in the Canadian Base Rate shall be effective on the date such change in the
Canadian Base Rate is announced as effective.

     “Canadian Cash Collateral Account” shall mean a collateral account established
with the Canadian Revolving Lender, in the name of the Canadian Revolving Lender and under
its sole dominion and control, into which the Canadian Subsidiary Borrower shall from time
to time deposit cash or Cash Equivalents pursuant to the express provisions of this
Agreement requiring such deposit.

     “Canadian Dollars” and “C$” shall mean dollars in lawful currency of
Canada.

     “Canadian L/C Exposure” shall mean, at any time, the Dollar Equivalent Amount
of the aggregate face amount of all drafts which may then or thereafter be presented by
beneficiaries under all Canadian Letters of Credit then outstanding plus (without
duplication) the face amount of all drafts which have been presented under Canadian Letters
of Credit but have not yet been paid or have been paid but not reimbursed.

     “Canadian Letters of Credit” shall mean the letters of credit issued pursuant
to Section 2.25.

     “Canadian Prime Rate” shall mean, on any day, the annual rate of interest equal
to the greater of (i) the annual rate of interest announced by The Bank of Nova Scotia in
effect as its prime rate at its principal office in Toronto on such day for determining
interest rates on Canadian Dollar-denominated commercial loans in Canada, and (ii) the
annual rate of interest equal to the sum of (A) the one-month CDOR Rate in effect on such
day, plus (B) 1.00%.

     “Canadian Prime Rate Loan” shall mean Loans the rate of interest applicable to
which is based upon the Canadian Prime Rate.

     “Canadian Revolving Borrowing Request” shall mean a request made pursuant to
Section 2.6 substantially in the form of Exhibit E-2.

 

4

     “Canadian Revolving Commitment” shall mean the obligation of the Canadian
Revolving Lender to make Canadian Revolving Loans pursuant to Section 2.1 in an aggregate
principal Dollar Equivalent Amount at any one time outstanding not to exceed $50,000,000, as
the same may be changed from time to time pursuant to the terms hereof.

     “Canadian Revolving Lender” shall mean The Bank of Nova Scotia, in its capacity
as a Canadian Revolving Lender hereunder and any other successor thereto in such capacity.

     “Canadian Revolving Loan” shall mean the Loans made by the Canadian Revolving
Lender to the Canadian Subsidiary Borrower pursuant to a notice given by the Canadian
Subsidiary Borrower under Section 2.6. Each Canadian Revolving Loan shall be a Canadian
B/A, a Canadian Prime Rate Loan, a LIBOR Canadian Revolving Loan or a Canadian ABR Loan.

     “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 Collateral Account” shall mean a collateral account established with the
Administrative Agent, in the name of the Administrative Agent and under its sole dominion
and control, into which the Borrower or any Subsidiary Borrower (other than the Canadian
Subsidiary Borrower) shall from time to time deposit Dollars pursuant to the express
provisions of this Agreement requiring such deposit.

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

     “CDOR Rate” shall mean, at any date of determination, the annual rate of
interest which is the rate based on an average rate applicable to Canadian Dollar banker’s
acceptances for the applicable period appearing on the “Reuters Screen CDOR Page”, rounded
to the nearest 1/100th of 1% (with .005% being rounded up), at approximately 10:00 a.m.,
Toronto time, on such date, or if such date is not a Business Day, then on the immediately
preceding Business Day, provided that if such rate does not appear on the Reuters Screen
CDOR Page on such date as contemplated, then the CDOR Rate on such date shall be calculated
as the arithmetic mean of the rates for the term referred to above applicable to Canadian
Dollar banker’s acceptances quoted by the banks

 

5

listed in Schedule I of the Bank Act
(Canada) as of 10:00 a.m., Toronto time, on such date or, if such date is not a Business
Day, then on the immediately preceding Business Day.

     “Change in Control” shall mean (i) the acquisition by any Person or group
(within the meaning of the Securities Exchange Act of 1934, as amended, and the rules of the
Securities and Exchange Commission thereunder as in effect on the Closing Date), directly or
indirectly, beneficially or of record, of ownership or control of in excess of 50% of the
voting common stock of 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 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 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 date is January 6, 2005.

     “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.

     “Co-Documentation Agents” shall mean the collective reference to The Bank of
Nova Scotia and Wachovia Bank, National Association.

     “Commitments” shall mean the aggregate Revolving Commitments and the Canadian
Revolving Commitment.

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

     “Commitment Utilization Percentage” shall mean on any day the percentage
equivalent of a fraction (a) the numerator of which is the sum of (i) the outstanding
aggregate principal Dollar Equivalent Amount of Loans and (ii) the then current L/C Exposure
and (b) the denominator of which is the Total Revolving Commitment (or, on any day after
termination of the Commitments, the Total Revolving Commitment in effect immediately
preceding such termination).

     “Competitive Bid” shall mean an offer by a Lender to make a Competitive Loan
pursuant to Section 2.4 substantially in the form of Exhibit D-3.

     “Competitive Bid Accept/Reject Letter” shall mean a notification made by the
Borrower or any Subsidiary Borrower pursuant to Section 2.4(d) substantially in the form of
Exhibit D-4.

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

     “Competitive Bid Request” shall mean a request made pursuant to Section 2.4
substantially in the form of Exhibit D-1.

 

6

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

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

     “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum dated November 2005 and which was made available to each of the Lenders party to
this Agreement as of such date.

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

     “Consolidated Net Income” shall mean, for any period for which such amount is
being determined, the net income (loss) of the Borrower and its Consolidated Subsidiaries
during such period determined on a consolidated basis for such period taken as a single
accounting period in accordance with GAAP, provided that there shall be excluded (i)
income (or loss) of any Person (other than a Consolidated Subsidiary) in which the Borrower
or any of its Consolidated Subsidiaries has an equity investment or comparable interest,
except to the extent of the amount of dividends or other distributions actually paid to the
Borrower or its Consolidated Subsidiaries by such Person during such period, (ii) the income
(or loss) of any Person accrued prior to the date it becomes a Consolidated Subsidiary or is
merged into or consolidated with the Borrower or any of its Consolidated Subsidiaries or the
Person’s assets are acquired by the Borrower or any of its Consolidated Subsidiaries, (iii)
the income of any Consolidated Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by that Consolidated Subsidiary of the income is not at
the time permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to that
Consolidated Subsidiary, (iv) any extraordinary after-tax gains and (v) any extraordinary
pretax losses but only to the extent attributable to a write-down of financing costs
relating to any existing and future indebtedness.

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

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

     “Contract Period” shall mean the term of a Canadian B/A selected by the
Canadian Subsidiary Borrower in accordance with Section 2.26 commencing on the borrowing
date, or the date of refinancing of such Canadian B/A in accordance with Section 2.9, as the
case may be, of such Canadian B/A and expiring on a Working Day which shall be either 30
days, 60 days, 90 days or 180 days thereafter, in all cases subject to availability;
provided that the Contract Period may be for a period of less than 30 days as agreed
by the Canadian Subsidiary Borrower and the Canadian Revolving Lender; provided
further that no Contract Period shall extend beyond the Termination Date.

 

7

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

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

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

     “Disclosed Matters” shall mean the information disclosed on the Borrower’s Form
8-K, dated September 7, 2005.

     “Discount Proceeds” shall mean for any Canadian B/A, an amount (rounded to the
nearest C$0.01, and with C$0.005 being rounded up) calculated on the applicable borrowing
date, rollover date or conversion date, as the case may be, by multiplying:

	 	(a)	 	the face amount of the Canadian B/A; by
	 
	 	(b)	 	the quotient of one divided by the sum of one plus the product of:

     1. the Discount Rate (expressed as a decimal) applicable to
such Canadian B/A, and

     2. a fraction, the numerator of which is the number of days
in the Contract Period of the Canadian B/A (inclusive of the first
day and exclusive of the last day) and the denominator of which is
365.

     with such quotient being rounded up or down to the fifth decimal place and
0.000005 being rounded up.

     “Discount Rate” shall mean for any day, the average CDOR Rate for the Contract
Period applicable to any Canadian B/A to be issued by the Canadian Revolving Lender on such
day or if no such rate is available, the rate (expressed to two decimal places and rounded
upward, if necessary, to the nearest 0.01%) quoted by the Canadian Revolving Lender as the
discount rate at which the Canadian Revolving Lender would, in accordance with its normal
practices, at or about 10:00 a.m., Toronto time, on such day, be prepared to purchase
bankers’ acceptances accepted by it having a face amount and term comparable to the face
amount and Contract Period of such Canadian B/A.

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

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

     “Eligible Canadian Revolving Lender” shall mean any Schedule I Bank, Schedule
II Bank or Schedule III Bank, in each case, within the meaning of the Bank Act (Canada).

     “Environmental Laws” shall mean any and all federal, provincial, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees or requirements of

 

 

8

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

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

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

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

     “euro unit” shall mean the currency unit of the euro.

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

     “Excess Utilization Day” shall mean each day on which the Commitment
Utilization Percentage exceeds 50%.

     “Exchange Rate” shall mean on any date (i) with respect to any Available
Foreign Currency other than Canadian Dollars, the rate at which such Available Foreign
Currency may be exchanged into Dollars, as set forth on such date on the relevant Reuters
currency page at or about 11:00 A.M. New York City time on such date and (ii) with respect
to Canadian Dollars, the spot rate at which Canadian Dollars may be exchanged into U.S.
Dollars, as quoted by The Bank of Canada at approximately 12:00 noon, Toronto time on such
date, as set forth on the Reuters “BOFC” page. In the event that such rate does not appear
on any such Reuters page, the “Exchange Rate” with respect to such Available Foreign
Currency shall be determined by reference to such other publicly available service for
displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrower
or, in the absence of such agreement, such “Exchange Rate” shall instead be the
Administrative Agent’s spot rate of exchange in the interbank market where its foreign
currency exchange operations in respect of such Available Foreign Currency are then being
conducted, at or about 10:00 A.M., local time, at such date for the purchase of Dollars with
such Available Foreign Currency, for delivery two Business Days later; provided that
if at the time of any such determination, no such spot rate can reasonably be

 

9

quoted, the
Administrative Agent may use any reasonable method (including obtaining quotes from three or
more market makers for such Available Foreign Currency) as it deems applicable to
determine such rate, and such determination shall be conclusive absent manifest error
(without prejudice to the determination of the reasonableness of such method).

     “Existing Canadian Credit Agreement” shall mean the Letter Loan Agreement
between PHH Vehicle Management Services Inc. (formerly known as PHH Canada Inc.) and The
Bank of Nova Scotia, dated August 14, 1990, as amended.

     “Existing Canadian Letters of Credit” shall mean all letters of credit
outstanding under the Existing Canadian Credit Agreement immediately prior to the Closing
Date.

     “Existing Revolving Letters of Credit” shall mean all letters of credit
outstanding under the Existing Revolving Credit Agreement immediately prior to the Closing
Date.

     “Existing Revolving Credit Agreement” shall have the meaning provided in the
Introductory Statement to this Agreement.

     “Facility Fee” shall have the meaning given such term in Section 2.8.

     “Federal Funds Effective Rate” shall mean, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for the day of such transactions received by
the Administrative Agent from three Federal funds brokers of recognized standing selected by
it. If for any reason the Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds
Effective Rate, for any reason, including, without limitation, the inability or failure of
the Administrative Agent to obtain sufficient bids or publications in accordance with the
terms hereof, the Alternate Base Rate shall be determined without regard to clause (b) of
such defined term until the circumstances giving rise to such inability no longer exist.
Any change in the Alternate Base Rate or the Federal Funds 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.

     “Federal Funds 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
Federal Funds Effective Rate in effect for such day plus 3/16 of 1%.

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

     “FFR Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Federal Funds Rate in accordance with the provisions of Article 2.

     “FFR Spread” shall mean, at any date or any period of determination, the FFR
Spread that would be in effect on such date pursuant to the chart set forth in Section 2.23
based on the rating of the Borrower’s senior unsecured non-credit enhanced long-term debt.

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

     “Fixed Rate Borrowing” shall mean a Borrowing comprised of Fixed Rate Loans.

 

10

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

     “Fundamental Documents” shall mean this Agreement, any Joinder Agreement and
any other ancillary documentation which is required to be, or is otherwise, executed by the
Borrower or any Subsidiary Borrower and delivered to the Administrative Agent in connection
with this Agreement.

     “Funding Office” shall mean the office of the Administrative Agent (or, in the
case of any Loan denominated in any Available Foreign Currency, an Affiliate of the
Administrative Agent) specified in Section 10.1 or such other office as may be specified
from time to time by the Administrative Agent or the respective Affiliate of the
Administrative Agent as its funding office by written notice to the Borrower and the
Lenders; provided that, in the case of Loans made under the Canadian Revolving
Commitment, “Funding Office” shall mean the office of the Canadian Revolving Lender
specified in Section 10.1.

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

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

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

 

11

assets of such Person as a general partner or joint venturer (other than assets
comprising the capital of such general partnership or joint venture).

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

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

     “Interest Payment Date” shall mean, with respect to any Borrowing, the last day
of the Interest Period applicable thereto and, in the case of a LIBOR Borrowing with an
Interest Period of more than three months’ duration or a Fixed Rate Borrowing with an
Interest Period of more than 90 days’ duration, each day that would have been an Interest
Payment Date had successive Interest Periods of three months’ duration or 90 days’ duration,
as the case may be, been applicable to 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, (i) the period
commencing on the date of such Borrowing, and ending one week after the date of such
Borrowing or (ii) the period commencing on the date of such Borrowing, and ending on the
numerically corresponding day (or, if there is no numerically corresponding day, on the last
day) in the calendar month that is 1, 2, 3, 6 or, subject to each Lender’s approval, 12
months thereafter, as the Borrower or any relevant Subsidiary Borrower may elect, (b) as to
any ABR Borrowing, FFR Borrowing, Canadian Prime Rate Loan or Canadian ABR Loan, the period
commencing on the date of such Borrowing and ending on the earliest of (i) the next
succeeding March 31, June 30, September 30 or December 31, (ii) the Termination Date and
(iii) the date such Borrowing is refinanced with a Borrowing of a different Interest Rate
Type in accordance with Section 2.7 or is prepaid in accordance with Section 2.14, and (c)
as to any Fixed Rate Borrowing, the period commencing on the date of such Borrowing and
ending on the date specified in the Competitive Bids in which the offer to make the Fixed
Rate Loans comprising such Borrowing were extended, which shall not be earlier than seven
days after the date of such Borrowing or later than 360 days after the date of such
Borrowing; provided that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day
unless, in the case of LIBOR Loans only, such next succeeding Business Day would fall in the
next calendar month, in which case such Interest Period shall end on the next preceding
Business Day and (ii) no Interest Period with respect to any LIBOR Borrowing or Fixed Rate
Borrowing may be selected which would result in the aggregate amount of LIBOR Loans and
Fixed Rate Loans

 

12

having Interest Periods ending after any day on which a Commitment reduction is
scheduled to occur being in excess of the Total Commitment scheduled to be in effect after
such date. Interest shall accrue from, and including, the first day of an Interest Period
to, but excluding, the last day of such Interest Period.

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

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

     “Joinder Agreement” shall have the meaning assigned to such term in Section
10.9(b)(i).

     “Joint Lead Arrangers” shall mean the collective reference to J.P. Morgan
Securities Inc. and Citigroup Global Markets Inc.

     “JPMorgan Chase Bank” shall mean JPMorgan Chase Bank, N.A.

     “L/C Exposure” shall mean, at any time, the aggregate amount of the Canadian
L/C Exposure plus the Revolving L/C Exposure.

     “LEAF Trust Transaction” shall mean the financing of motor vehicles and other
equipment or personal property pursuant to that certain Amended and Restated Purchase
Agreement, dated as of March 1, 2001, among LEAF Trust, a trust established under the laws
of the Province of Ontario, the Canadian Imperial Bank of Commerce, as Administrative Agent
and the Canadian Subsidiary Borrower (the “Purchase Agreement”), including any
amendments, supplements, modifications, extensions, renewals, restatements or refundings
thereof and any facilities or agreements that replace, refund or refinance, in whole or in
part, the Purchase Agreement.

     “Lenders” shall mean the Canadian Revolving Lender and the Revolving Lenders.

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

     “Letters of Credit” shall mean Canadian Letters of Credit and Revolving Letters
of Credit.

     “LIBOR” shall mean, with respect to each day during each Interest Period
pertaining to a LIBOR Borrowing, the rate per annum determined on the basis of the rate for
deposits in Dollars or the applicable Available Foreign Currency, as the case may be, for a
period equal to such Interest Period commencing on the first day of such Interest Period
appearing on Page 3750 of the Telerate screen (or any successor page thereto) as of 11:00
A.M., London time, two Business Days prior to the beginning of such Interest Period. In the
event that such rate does not appear on Page 3750 of the Telerate screen (or otherwise on
such screen), the “LIBOR” shall be determined
by reference to such other comparable publicly available service for displaying
eurodollar rates as

 

13

may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits or deposits in the applicable Available Foreign Currency, as the case may be, at or
about 11:00 A.M., New York City time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where its eurodollar and foreign currency
and exchange operations are then being conducted for delivery on the first day of such
Interest Period for the number of days comprised therein.

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

     “LIBOR Canadian Revolving Loan” shall mean any Canadian Revolving Loan
denominated in Dollars bearing interest at a rate determined by reference to LIBOR in
accordance with the provisions of Article 2.

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

     “LIBOR Loan” shall mean any LIBOR Canadian Revolving Loan, LIBOR Competitive
Loan or LIBOR Revolving Credit Loan.

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

     “LIBOR Spread” shall mean, at any date or any period of determination, the
LIBOR Spread that would be in effect on such date or during such period pursuant to the
chart set forth in Section 2.23 based on the rating of the Borrower’s senior unsecured
non-credit enhanced long-term debt.

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

     “Loan” shall mean a Competitive Loan, a Revolving Credit Loan or a Canadian
Revolving Loan, whether made as a LIBOR Loan, an ABR Loan, an FFR Loan, a Canadian B/A, a
Canadian Prime Rate Loan, a Canadian ABR Loan or a Fixed Rate Loan, as permitted hereby.

     “Local Time” shall mean (i) in the case of any extension of credit under the
Revolving Commitments, New York City time, and (ii) in the case of any extension of credit
under the Canadian Revolving Commitment, Toronto time.

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

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

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

 

14

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

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

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

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

     “New Lender” shall have the meaning assigned to such term in Section 2.13(e).

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

     “Offered Increase Amount” shall have the meaning assigned to such term in
Section 2.13(d).

     “Parent Guaranty” shall mean the guaranty of the Subsidiary Borrower
Obligations provided by the Borrower pursuant to Article 9.

     “Participant” shall have the meaning assigned to such term in Section 10.3(g).

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

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

     “Permitted Encumbrances” shall mean Liens permitted under Section 6.4.

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

     “PHH Home Loans Credit Agreement” shall mean the Revolving Credit Agreement,
dated as of September 30, 2005, among PHH Home Loans, LLC, as borrower, the lenders referred
to therein, Barclays Bank PLC, as syndication agent, and Bank of Montreal, as administrative
agent, as modified, supplemented, amended or restated from time to time.

     “Plan” shall mean an employee pension benefit plan described in Section 3(2) of
ERISA, other than a Multiemployer Plan which is sponsored by the Borrower or one of its
Subsidiaries.

     “Prime Rate” shall mean the rate per annum publicly announced by the entity
which is the Administrative Agent from time to time as its prime rate in effect at its
principal office in

 

15

New York City. For purposes of this Agreement, any change in the
Alternate Base Rate due to a change in the Prime Rate shall be effective on the date such
change in the Prime Rate is announced as effective.

     “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.

     “Protesting Lender” shall have the meaning assigned to such term in Section
10.9(b)(iii).

     “Reallocation Notice” shall have the meaning assigned to such term in Section
2.13(g).

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

     “Required Lenders” shall mean Lenders holding Commitments representing more
than 50% of the aggregate Commitments, except that for purposes of determining the Lenders
entitled to declare the principal of and the interest on the Loans and all other amounts
payable hereunder or thereunder to be forthwith due and payable pursuant to Article 7,
“Required Lenders” shall mean Lenders holding more than 50% of the aggregate principal
amount of the Loans and L/C Exposure at the time.

     “Revolving Commitment” shall mean, with respect to each Lender, its commitment
to make Revolving Credit Loans to the Borrower or any Subsidiary Borrower hereunder (other
than the Canadian Subsidiary Borrower), in an aggregate principal Dollar Equivalent amount
not to exceed at any time the amount set forth opposite such Lender’s name under the heading
“Revolving Commitment” on Schedule 1.1A, as the same may be changed from time to time
pursuant to the terms hereof.

     “Revolving Commitment Increase Notice” shall have the meaning assigned to such
term in Section 2.13(d).

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

     “Revolving Credit Borrowing Request” shall mean a request made pursuant to
Section 2.5 substantially in the form of Exhibit E-1.

     “Revolving Credit Loans” shall mean the Loans made by the Lenders to the
Borrower or any Subsidiary Borrower (other than the Canadian Subsidiary Borrower) pursuant
to a notice given by the Borrower or such Subsidiary Borrower under Section 2.5. Each
Revolving Credit Loan shall be a LIBOR Revolving Credit Loan, an ABR Loan or an FFR Loan.

     “Revolving Credit Percentage” shall mean, with respect to each Lender, the
percentage which such Lender’s Revolving Commitment then constitutes of the Total Revolving

 

16

Commitment, or at any time after the Revolving Commitments have expired or terminated, the
percentage which such Lender’s Revolving Commitment constituted of the Total Revolving
Commitment immediately prior to the time the Revolving Commitments expired or terminated.

     “Revolving Issuing Lender” shall mean JPMorgan Chase Bank and/or such other of
the Revolving Lenders as may be designated in writing by the Borrower and which agrees in
writing to act as such in accordance with the terms hereof.

     “Revolving L/C Exposure” shall mean, at any time, the amount expressed in
Dollars of the aggregate face amount of all drafts which may then or thereafter be presented
by beneficiaries under all Revolving Letters of Credit then outstanding plus (without
duplication) the face amount of all drafts which have been presented under Revolving Letters
of Credit but have not yet been paid or have been paid but not reimbursed.

     “Revolving Lender” shall mean each financial institutions whose name appears on
Schedule 1.1A under the heading “Revolving Lenders” and any assignee of a Revolving Lender
pursuant to Section 10.3(b).

     “Revolving Letters of Credit” shall mean the letters of credit issued pursuant
to Section 2.24.

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

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

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

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

     “Statutory Reserves” shall mean a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number one minus
the aggregate of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board and any other
banking authority to which the Administrative Agent or any Lender is subject, for Eurocurrency Liabilities
(as defined in Regulation D of the Board) (or, at any time when such Lender may be required
by the Board or by any other Governmental Authority, whether within the United States or in
another relevant jurisdiction, to maintain reserves against any other category of
liabilities which includes deposits by reference to which LIBOR is determined as provided in
this Agreement or against any category of extensions of credit or other assets of such
Lender which includes any such LIBOR Loans). Such reserve percentages shall include those
imposed under Regulation D of the Board.

 

17

LIBOR Loans shall be deemed to constitute
Eurocurrency Liabilities and as such shall be deemed to be subject to such reserve
requirements without benefit of or credit for proration, exceptions or offsets which may be
available from time to time to any Lender under Regulation D of the Board. Statutory
Reserves shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

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

     “Subsidiary Borrower” shall mean the Canadian Subsidiary Borrower and any
Subsidiary of the Borrower that becomes a party hereto pursuant to Section 10.9(b)(i) until
such time as such Subsidiary Borrower is removed as a party hereto pursuant to Section
10.9(b)(ii).

     “Subsidiary Borrower Obligations” shall mean the Obligations of any Subsidiary
Borrower.

     “Supermajority Lenders” shall mean Lenders which have Commitments representing
at least 75% of the aggregate Dollar Equivalent Amount of the aggregate Commitments.

     “Syndication Agent” shall mean Citicorp USA, Inc.

     “Tangible Net Worth” shall mean, at any date of determination, Consolidated Net
Worth minus the aggregate book value of all intangible assets of the Borrower and its
Consolidated Subsidiaries as of such date in accordance with GAAP.

     “Termination Date” shall mean January 6, 2011.

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

     “United States” shall mean the United States of America.

     “Utilization Fee” shall have the meaning given such term in Section 2.8.

     “Utilization Fee Percentage” shall mean, at any date or any period of
determination, the Utilization Fee Percentage that would be in effect on such date pursuant
to the chart set forth in Section 2.23 based on the rating of the Borrower’s senior
unsecured non-credit enhanced long-term debt.

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

2. THE LOANS

     SECTION 2.1.    Commitments.

 

18

          (a) Subject to the terms and conditions hereof and relying upon the representations
and warranties herein set forth, each Revolving Lender agrees, severally and not jointly, to make
Revolving Credit Loans to the Borrower and any Subsidiary Borrower (other than the Canadian
Subsidiary Borrower) in Dollars and any Available Foreign Currency, at any time and from time to
time on and after the Closing Date and until the earlier of the Termination Date and the
termination of the Revolving Commitment of such Lender, in an aggregate principal amount at any
time outstanding not to exceed such Lender’s Revolving Commitment minus the sum of such Lender’s
Revolving Credit Percentage of the current Revolving L/C Exposure plus the outstanding Dollar
Equivalent Amount by which the Competitive Loans outstanding at such time shall be deemed to have
used such Lender’s Revolving Commitment pursuant to Section 2.19, subject, however, to the
condition that at no time shall (i) the sum of (A) the outstanding aggregate principal Dollar
Equivalent Amount of all Loans (other than Canadian Revolving Loans) plus (B) the then current
Revolving L/C Exposure exceed (ii) the Total Revolving Commitment. During the Commitment Period,
the Borrower and any Subsidiary Borrower (other than the Canadian Subsidiary Borrower) may use the
Revolving Commitments of the Lenders by borrowing, prepaying the Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof.

          (b) The Revolving Commitments of the Lenders may be terminated or reduced from time
to time pursuant to Section 2.13 or Article 7.

          (c) Subject to the terms and conditions hereof and relying upon the representations
and warranties herein set forth, the Canadian Revolving Lender agrees to make Canadian Revolving
Loans to the Canadian Subsidiary Borrower in Dollars and Canadian Dollars, at any time and from
time to time on and after the Closing Date and until the earlier of the Termination Date and the
termination of the Canadian Revolving Commitment, in an aggregate principal amount at any time
outstanding not to exceed the Dollar Equivalent Amount of the Canadian Revolving Commitment,
subject, however, to the condition that at no time shall (i) the sum of (A) the outstanding
aggregate principal Dollar Equivalent Amount of all Canadian Revolving Loans plus (B) the then
current Canadian L/C Exposure exceed (ii) the Canadian Revolving Commitment. During the Commitment
Period, the Canadian Subsidiary Borrower may use the Canadian Revolving Commitment by borrowing,
prepaying the Canadian Revolving Loans in whole or in part, and reborrowing, all in accordance with
the terms and conditions hereof.

          (d) The Canadian Revolving Commitment may be terminated or reduced from time to time
pursuant to Section 2.13 or Article 7.

     SECTION 2.2.    Loans.

          (a) Each Revolving Credit Loan shall be made as part of a Borrowing consisting of
Revolving Credit Loans made by the Revolving Lenders ratably in accordance with their respective
Revolving Commitments in accordance with the procedures set forth in Section 2.5. Each
Competitive Loan shall be made in accordance with the procedures set forth in Section 2.4. Each
Canadian Revolving Loan shall be made in accordance with the procedures set forth in Section 2.6.
The failure of any Lender to make any Loan required to be made by it shall not in itself relieve
any other Lender of its obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan required to be made by
such other Lender). The Loans comprising any Borrowing shall be (i) in the case of Competitive
Loans and LIBOR Loans (other than LIBOR Canadian Revolving Loans), in an aggregate principal Dollar
Equivalent Amount that is an integral multiple of $5,000,000 and not less than $10,000,000 and (ii)
in the case of ABR Loans or FFR Loans, in an aggregate principal amount that is an integral
multiple of $500,000 and not less than $5,000,000 (or if less, an aggregate principal amount equal
to the remaining balance of the available Total Commitment).

 

19

Canadian Revolving Loans (x) denominated in Canadian Dollars shall be in a principal amount that is an integral multiple of
C$500,000 and not less than C$1,000,000 and (y) denominated in Dollars shall be in a principal
amount that is an integral multiple of $500,000 and not less than $1,000,000.

          (b) Each Competitive Borrowing shall be comprised entirely of LIBOR Competitive
Loans or Fixed Rate Loans as the Borrower or any Subsidiary Borrower may request pursuant to
Section 2.4. Each Revolving Credit Borrowing shall be comprised entirely of LIBOR Loans, ABR Loans
or FFR Loans, as the Borrower or any Subsidiary Borrower may request pursuant to Section 2.5;
provided that Revolving Credit Loans denominated in any Available Foreign Currency shall be
LIBOR Loans. Each Canadian Revolving Loan denominated in Canadian Dollars shall be a Canadian B/A
or a Canadian Prime Rate Loan. Each Canadian Revolving Loan denominated in Dollars shall be a
LIBOR Loan or a Canadian ABR Loan. 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 or such Subsidiary
Borrower to repay such Loan in accordance with the terms of this Agreement. Borrowings of more
than one Interest Rate Type may be outstanding at the same time; provided that neither the
Borrower, nor any Subsidiary Borrower shall be entitled to request any Borrowing that, if made,
would result in an aggregate of more than 23 separate Loans (other than Competitive Loans) of any
Lender being outstanding hereunder at any one time. For purposes of the calculation required by
the immediately preceding sentence, LIBOR Loans (other than LIBOR Competitive Loans) having
different Interest Periods or having been made in different Currencies, regardless of whether they
commence on the same date, shall be considered separate Loans and all Loans of a single Interest
Rate Type made on a single date shall be considered a single Loan if such Loans have a common
Interest Period.

          (c) Subject to Section 2.7, each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by making funds available at the Funding Office no later
than 1:00 P.M. Local Time in the case of Loans other than ABR Loans, FFR Loans, Canadian Prime Rate
Loans or Canadian ABR Loans and 4:00 P.M. Local Time in the case of ABR Loans, FFR Loans, Canadian
Prime Rate Loans and Canadian ABR Loans, in each case, in immediately available funds. Upon
receipt of the funds to be made available by the Lenders to fund any Borrowing hereunder, the
Administrative Agent shall disburse such funds by depositing them into an account of the Borrower
or the applicable Subsidiary Borrower maintained with the Administrative Agent. Competitive Loans
shall be made by the Lender or Lenders whose Competitive Bids therefor are accepted pursuant to
Section 2.4 in the amounts so accepted and Loans shall be made by all the Lenders pro rata in
accordance with Section 2.1 and this Section 2.2. Canadian Revolving Loans shall be made by the
Canadian Revolving Lender in accordance with Section 2.1 and this Section 2.2 and, in the case of
Canadian B/As, with the provisions of Section 2.26.

          (d) All ABR Loans and Canadian ABR Loans shall be denominated in Dollars. All
Canadian B/As and Canadian Prime Rate Loans shall be denominated in Canadian Dollars.

          (e) Notwithstanding any other provision of this Agreement, neither the Borrower, nor
any Subsidiary Borrower shall be entitled to request any Borrowing if the Interest Period requested
with respect thereto would end after the Termination Date.

     SECTION 2.3.    Use of Proceeds.

          The proceeds of the Loans shall be used for working capital and general corporate purposes and
to backstop commercial paper issuances.

     SECTION 2.4.    Competitive Bid Procedure.

 

20

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

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

          (c) The Administrative Agent shall promptly notify the Borrower or the applicable
Subsidiary Borrower by telecopier of all the Competitive Bids made, the Competitive Bid Rate or
Rates and the principal amount of each Competitive Loan in respect of which a Competitive Bid was
made and the identity of the Lender that made each Competitive Bid. The Administrative Agent shall
send a copy

 

21

of all Competitive Bids to the Borrower or the applicable Subsidiary Borrower for its
records as soon as practicable after completion of the bidding process set forth in this Section
2.4.

          (d) The Borrower or the applicable Subsidiary Borrower may in its sole and absolute
discretion, subject only to the provisions of this paragraph (d), accept or reject any Competitive
Bid referred to in paragraph (c) above. The Borrower or the applicable Subsidiary Borrower shall
notify the Administrative Agent by telephone, promptly confirmed by telecopier in the form of a
Competitive Bid Accept/Reject Letter whether and to what extent it has decided to accept or reject
any or all of the Competitive Bids referred to in paragraph (c) above, (i) in the case of a LIBOR
Competitive Borrowing, not later than 10:30 a.m., New York City time, three Working Days before a
proposed Competitive Borrowing and (ii) in the case of a Fixed Rate Borrowing, not later than 10:30
a.m., New York City time, on the day of a proposed Competitive Borrowing; provided that (A)
the failure by the Borrower or the applicable Subsidiary Borrower to give such notice shall be
deemed to be a rejection of all the Competitive Bids referred to in paragraph (c) above, (B)
neither the Borrower, nor any Subsidiary Borrower shall accept a Competitive Bid made at a
particular Competitive Bid Rate if the Borrower or such Subsidiary Borrower has decided to reject a
Competitive Bid made at a lower Competitive Bid Rate, (C) the aggregate amount of the Competitive
Bids accepted by the Borrower or the applicable Subsidiary Borrower shall not exceed the principal
amount specified in the Competitive Bid Request, (D) if the Borrower or any Subsidiary Borrower
shall accept a Competitive Bid or Competitive Bids made at a particular Competitive Bid Rate but
the amount of such Competitive Bid or Competitive Bids shall cause the total amount of Competitive
Bids to be accepted by the Borrower or the applicable Subsidiary Borrower to exceed the amount
specified in the Competitive Bid Request, then the Borrower or the applicable Subsidiary Borrower
shall accept a portion of such Competitive Bid or Competitive Bids in an amount equal to the amount
specified in the Competitive Bid Request less the amount of all other Competitive Bids accepted at
lower Competitive Bid Rates with respect to such Competitive Bid Request (it being understood that
acceptance in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro
rata in accordance with the amount of each such Competitive Bid at such Competitive Bid Rate), (E)
except pursuant to clause (D) above, no Competitive Bid shall be accepted for a Competitive Loan
unless such Competitive Loan is in a minimum principal Dollar Equivalent Amount of $10,000,000 and
an integral multiple of $5,000,000 and (F) neither the Borrower, nor any Subsidiary Borrower may
accept Competitive Bids for Competitive Loans in any currency other than the currency specified in
the related Competitive Bid Request; and provided, further, that if a Competitive
Loan must be in an amount less than the Dollar Equivalent Amount of $10,000,000 because of the
provisions of clause (D) above, such Competitive Loan shall be in a minimum principal Dollar
Equivalent Amount of $1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid
Rate pursuant to clause (D), the amounts shall be rounded to the Dollar Equivalent Amount of
integral multiples of $1,000,000 in a manner that shall be in the discretion of the Borrower or the applicable Subsidiary Borrower.
A notice given by the Borrower or any Subsidiary Borrower pursuant to this paragraph (d) shall be
irrevocable.

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

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

 

22

          (g) All notices required by this Section 2.4 shall be given in accordance with
Section 10.1.

     SECTION 2.5.    Revolving Credit Borrowing Procedure.

          In order to effect a Revolving Credit Borrowing, the Borrower or the applicable Subsidiary
Borrower shall hand deliver or telecopy to the Administrative Agent a Borrowing notice
substantially in the form of Exhibit E-1 (a) in the case of a Borrowing of LIBOR Revolving Credit
Loans, not later than 2:00 p.m., New York City time, (i) four Working Days before a proposed
Borrowing denominated in any Available Foreign Currency and (ii) three Working Days before a
proposed Borrowing denominated in Dollars, and (b) in the case of an ABR Borrowing or an FFR
Borrowing, not later than 2:00 p.m., New York City time, on the day of a proposed Borrowing. No
Fixed Rate Loan or LIBOR Competitive Loan shall be requested or made pursuant to a Revolving Credit
Borrowing Request. Such notice shall be irrevocable and shall in each case specify (A) whether the
Borrowing then being requested is to be a Borrowing of LIBOR Revolving Credit Loans, an ABR
Borrowing or an FFR Borrowing, (B) the date of such Revolving Credit Borrowing (which shall be a
Working Day) and the amount thereof and (C) if such Borrowing is to be a Borrowing of LIBOR
Revolving Credit Loans, the Interest Period and Currency with respect thereto. If no election as
to the Interest Rate Type of a Revolving Credit Borrowing is specified in any such notice, then the
requested Revolving Credit Borrowing shall be an ABR Borrowing. If no Interest Period with respect
to any Borrowing of LIBOR Revolving Credit Loans is specified in any such notice, then the Borrower
or such Subsidiary Borrower shall be deemed to have selected an Interest Period of one month’s
duration. If no Currency with respect to any Borrowing of LIBOR Revolving Credit Loans is
specified in any such notice, then the Borrower or such Subsidiary Borrower shall be deemed to have
selected Dollars. If the Borrower or the applicable Subsidiary Borrower shall not have given
notice in accordance with this Section 2.5 of its election to refinance a Revolving Credit
Borrowing prior to the end of the Interest Period in effect for such Borrowing, then the Borrower
or such Subsidiary 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 Revolving Lenders of any notice
given pursuant to this Section 2.5 and of each such Lender’s portion of the requested Revolving
Credit Borrowing.

     SECTION 2.6.    Canadian Revolving Borrowing Procedure.

          In order to request a Canadian Revolving Loan, the Canadian Subsidiary Borrower shall hand
deliver or telecopy to the Canadian Revolving Lender a Borrowing notice substantially in the form
of Exhibit E-2 (a) in the case of a LIBOR Loan, not later than 2:00 p.m., Toronto time, three
Working Days before a proposed Loan, (b) in the case of a Canadian B/A, not later than 2:00 p.m.,
Toronto time, two Working Days before a proposed Loan, and (c) in the case of a Canadian Prime Rate
Loan or Canadian ABR Loan, not later than 2:00 p.m., Toronto time, on the day of a proposed Loan.
No Fixed Rate Loan or LIBOR Competitive Loan shall be requested or made pursuant to a Canadian
Revolving Borrowing Request. Such notice shall be irrevocable and shall in each case specify (A)
whether the Loan then being requested is to be a Canadian B/A, a Canadian Prime Rate Loan, a
Canadian ABR Loan or a LIBOR Loan, (B) the date of such Loan (which shall be a Working Day) and the
amount thereof, (C) the Currency with respect thereto, (D) if such Loan is to be a Canadian B/A,
the Contract Period with respect thereto and (E) if such Loan is to be a LIBOR Loan, the Interest
Period with respect thereto. If no election as to the Interest Rate Type is specified in any such
notice for Loans denominated in Canadian Dollars, then the requested Loan shall be a Canadian Prime
Rate Loan. If no election as to the Interest Rate Type is specified in any such notice for Loans
denominated in Dollars, then the requested Loan shall be a Canadian ABR Loan. If no Contract
Period with respect to any Canadian B/A is specified in any such notice, then the Canadian
Subsidiary Borrower shall be deemed to have selected a Contract Period of

 

23

one month’s duration. If no Interest Period with respect to any LIBOR Loan is specified in any such notice, then the
Canadian Subsidiary Borrower shall be deemed to have selected an Interest Period of one month’s
duration. If no Currency with respect to any Canadian Revolving Loan is specified in any such
notice, then the Canadian Subsidiary Borrower shall be deemed to have selected Canadian Dollars.
If the Canadian Subsidiary Borrower shall not have given notice in accordance with this Section 2.6
of its election to refinance a Canadian Revolving Loan prior to the end of the Contract Period or
Interest Period, as the case may be, in effect for such Loan, then the Canadian Subsidiary Borrower
shall (unless such Loan is repaid at the end of such Contract Period or Interest Period) be deemed
to have given notice of an election to refinance such Borrowing with a Canadian Prime Rate Loan, in
the case of a Canadian Dollar-denominated Loan, or Canadian ABR Loan, in the case of a
Dollar-denominated Loan. The Canadian Revolving Lender shall promptly advise the Administrative
Agent of any notice given pursuant to this Section 2.6.

     SECTION 2.7.    Refinancings.

          The Borrower and any Subsidiary Borrower may refinance all or any part of any Borrowing made
by it with a Borrowing of the same or a different Interest Rate Type made pursuant to Section 2.4
or pursuant to a notice under Section 2.5 or 2.6, subject to the conditions and limitations set
forth herein and elsewhere in this Agreement, including refinancings of Competitive Borrowings with
Revolving Credit Borrowings in Dollars and Revolving Credit Borrowings in Dollars with Competitive
Borrowings; provided that at any time after the occurrence, and during the continuation, of
a Default or an Event of Default, (a) a Revolving Credit Borrowing of Dollars or portion thereof
may only be refinanced with an ABR Borrowing, (b) a Revolving Credit Borrowing of any Available
Foreign Currency shall be repaid in full at the end of the Interest Period in effect for such
Borrower, (c) a Canadian B/A may only be refinanced with a Canadian Prime Rate Loan and (d) a LIBOR
Canadian Revolving Loan may only be refinanced with a Canadian ABR Loan. Any Borrowing or part
thereof so refinanced shall be deemed to be repaid in accordance with Section 2.9 with the proceeds
of a new Borrowing or Canadian Revolving Loan, as the case may be, hereunder and the proceeds of
the new Borrowing or Canadian Revolving Loan, as the case may be, to the extent they do not exceed
the principal amount of the Borrowing or Loan being refinanced, shall not be paid by the applicable
Lenders to the Administrative Agent or by the Administrative Agent or the Canadian Revolving
Lender, as the case may be, to the Borrower or the applicable Subsidiary Borrower pursuant to
Section 2.2(c); provided that (A) if the principal amount
extended by a Lender in a refinancing of a Revolving Credit Borrowing is greater than the
principal amount extended by such Lender in the Revolving Credit Borrowing being refinanced, then
such Lender shall pay such difference to the Administrative Agent for distribution to the Lenders
described in clause (B) below, (B) if the principal amount extended by a Lender in the Revolving
Credit Borrowing being refinanced is greater than the principal amount being extended by such
Lender in the refinancing, the Administrative Agent shall return the difference to such Lender out
of amounts received pursuant to clause (A) above, and (C) to the extent any Lender fails to pay the
Administrative Agent amounts due from it pursuant to clause (A) above, any Loan or portion thereof
being refinanced with such amounts shall not be deemed repaid in accordance with Section 2.9 and,
to the extent of such failure, the Borrower or the applicable Subsidiary Borrower shall pay such
amount to the Administrative Agent as required by Section 2.11; and (D) to the extent the Borrower
or the applicable Subsidiary Borrower fails to pay to the Administrative Agent any amounts due in
accordance with Section 2.9 as a result of the failure of a Lender to pay the Administrative Agent
any amounts due as described in clause (C) above, the portion of any refinanced Loan deemed not
repaid shall be deemed to be outstanding solely to the Lender which has failed to pay the
Administrative Agent amounts due from it pursuant to clause (A) above to the full extent of such
Lender’s portion of such Loan.

     SECTION 2.8.    Fees.

 

24

          (a) The Borrower agrees to pay to each Lender, through the Administrative Agent, on
each March 31, June 30, September 30 and December 31, and on the date on which the Commitment of
such Lender shall be terminated as provided herein, a facility fee (a “Facility Fee”) at
the rate per annum from time to time in effect in accordance with Section 2.23, on the amount of
the Commitment of such Lender, whether used or unused, during the preceding quarter (or shorter
period commencing with the Closing Date, or ending with the Termination Date or any date on which
the Commitment of such Lender shall be terminated). All Facility Fees shall be computed on the
basis of the actual number of days elapsed in a year of 360 days. The Facility Fee due to each
Lender shall commence to accrue on the Closing Date, shall be payable in arrears and shall cease to
accrue on the earlier of the Termination Date and the termination of the Commitment of such Lender
as provided herein; provided, that if any Lender continues to have any outstanding Loans
after its Commitment terminates, then such Facility Fee shall continue to accrue on the daily
aggregate principal amount of such Lender’s Loans for each day from and including the date on which
its Commitment terminates to but excluding the date on which such Lender ceases to have any
outstanding Loans.

          (b) The Borrower agrees to pay to each Lender, through the Administrative Agent, on
each March 31, June 30, September 30 and December 31, and on the date on which the Commitment of
such Lender shall be terminated as provided herein, a utilization fee (a “Utilization Fee”)
at a rate per annum equal to the Utilization Fee Percentage for each Excess Utilization Day, which
fee shall accrue on the daily amount of the Commitment of such Lender (whether used or unused) for
each Excess Utilization Day during the period from and including the Closing Date to but excluding
the date on which such Commitment terminates; provided that, if such Lender continues to
have any outstanding Loans after its Commitment terminates, then such Utilization Fee shall
continue to accrue on the daily aggregate principal amount of such Lender’s Loans for each Excess
Utilization Day from and including the date on which its Commitment terminates to but excluding the
date on which such Lender ceases to have any outstanding Loans. All Utilization Fees shall be
computed on the basis of the actual number of days elapsed in a year of 360 days and shall be
payable in arrears.

          (c) The Borrower agrees to pay to the Administrative Agent the fees in the amounts
and on the dates as set forth in any fee agreements with the Administrative Agent and to perform
any other obligations contained therein.

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

     SECTION
2.9.    Repayment of Loans; Evidence of Debt.

          (a) The Borrower and each Subsidiary Borrower hereby unconditionally promises to pay
to the Administrative Agent, for the account of each Revolving Lender, the then unpaid principal
amount of each Revolving Credit Loan made to it on the Termination Date. The Borrower and each
Subsidiary Borrower hereby further agrees to pay to the Administrative Agent, for the account of
each Revolving Lender, interest on the unpaid principal amount of the Revolving Credit Loans made
to it from time to time outstanding from the date hereof until payment in full thereof at the rates
per annum, and on the dates, set forth in Section 2.10.

          (b) The Borrower and each Subsidiary Borrower unconditionally promises to pay to the
Administrative Agent, for the account of each Lender that makes a Competitive Loan to it, on the
last day of the Interest Period applicable to such Competitive Loan, the principal amount of such
Competitive Loan. The Borrower and each Subsidiary Borrower further unconditionally promises to
pay to the Administrative Agent, for the account of each Lender that makes a Competitive Loan to
it, interest on

 

25

each such Competitive Loan made to it for the period from and including the date of
Borrowing of such Competitive Loan on the unpaid principal amount thereof from time to time
outstanding at the applicable rate per annum determined as provided in, and payable as specified
in, Section 2.10.

          (c) The Canadian Subsidiary Borrower unconditionally promises to pay to the Canadian
Revolving Lender the then unpaid principal amount of each Canadian Revolving Loan made to it on the
Termination Date. The Canadian Subsidiary Borrower hereby further agrees to pay to the Canadian
Revolving Lender interest on the unpaid principal amount of the Canadian Revolving Loans made to it
from time to time outstanding from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in Section 2.10.

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

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

          (f) The entries made in the Register and the accounts of each Lender maintained
pursuant to Section 2.9(d) shall, to the extent permitted by applicable law, be prima
facie evidence of the
existence and amounts of the obligations of the Borrower or Subsidiary Borrower therein
recorded; provided that the failure of any Lender or the Administrative Agent to maintain
the Register or any such account, or any error therein, shall not in any manner affect the
obligation of the Borrower or any Subsidiary Borrower to repay (with applicable interest) the Loans
made to the Borrower or such Subsidiary Borrower by such Lender in accordance with the terms of
this Agreement.

     SECTION 2.10.    Interest on Loans.

          (a) Subject to the provisions of Section 2.11, the Loans comprising each LIBOR
Borrowing shall bear interest at a rate per annum equal to (i) in the case of each LIBOR Canadian
Revolving Loan or LIBOR Revolving Credit Loan, LIBOR for the Interest Period in effect for such
Borrowing plus the applicable LIBOR Spread from time to time in effect and (ii) in the case of each
LIBOR Competitive Loan, LIBOR for the Interest Period in effect for such Borrowing plus or minus
the Margin offered by the Lender making such Loan and accepted by the Borrower or the applicable
Subsidiary Borrower pursuant to Section 2.4.

          (b) Subject to the provisions of Section 2.11, 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.

          (c) Subject to the provisions of Section 2.11, the Loans comprising each FFR
Borrowing shall bear interest 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 the case may be) equal to the Federal Funds Rate
plus the applicable FFR Spread from time to time in effect.

 

26

          (d) Subject to the provisions of Section 2.11, each Canadian Prime Rate Loan shall
bear interest at a rate per annum (computed on the basis of the actual number of days elapsed over
a year of 365 or 366 days, as the case may be) equal to the Canadian Prime Rate.

          (e) Subject to the provisions of Section 2.11, each Canadian ABR Loan shall bear
interest 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 the case may be) equal to the Canadian Alternate Base Rate.

          (f) Subject to the provisions of Section 2.11, each Canadian B/A shall be subject to
an Acceptance Fee (computed on a per annum basis the basis on the actual number of days elapsed
over a year of 360 days) in accordance with the provisions of Section 2.26.

          (g) Subject to the provisions of Section 2.11, each Fixed Rate Loan shall bear
interest at a rate per annum (computed on the basis of the actual number of days elapsed over a
year of 360 days) equal to the fixed rate of interest offered by the Lender making such Loan and
accepted by the Borrower or the applicable Subsidiary Borrower pursuant to Section 2.4.

          (h) Interest on each Loan (other than Canadian B/As) shall be payable in arrears on
each Interest Payment Date applicable to such Loan. The LIBOR, Federal Funds Rate, Alternate Base
Rate, Canadian Prime Rate or Canadian 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. The Acceptance Fee and Discount Rate applicable to Canadian B/As
shall be determined by the Canadian Revolving Lender and such determination shall be conclusive absent
manifest error.

          (i) For the purposes of disclosure under the Interest Act (Canada) and for this
Agreement, whenever interest to be paid hereunder is to be calculated on the basis of 360 days or
any other period of time that is less than a calendar year, the yearly rate of interest to which
the rate determined pursuant to such calculation is equivalent is the rate so determined multiplied
by the actual number of days in the calendar year in which the same is to be ascertained and
divided by 360 or such other number of days in such period, as the case may be.

     SECTION 2.11.    Interest on Overdue Amounts.

          If the Borrower or any Subsidiary Borrower shall default in the payment of the principal of,
or interest on, any Loan or any other amount becoming due hereunder, the Borrower or such
Subsidiary 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 or the Canadian 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, Fixed Rate Loan, the rate applicable to such Loan under Section 2.10
plus 2% per annum and (b) in the case of any ABR Loan, FFR Loan, Canadian B/A, Canadian Prime Rate
Loan or Canadian ABR Loan, the rate applicable to such Loan under Section 2.10 plus 2% per annum.

     SECTION 2.12.    Alternate Rate of Interest.

          In the event the Administrative Agent shall have determined that deposits in Dollars or the
applicable Available Foreign Currency in the amount of the requested principal amount of any LIBOR
Loan are not generally available in the London Interbank Market (or such other interbank
eurocurrency

 

27

market where the foreign currency and exchange operations in respect of Dollars or
such applicable Available Foreign Currency, as the case may be, are then being conducted for
delivery on the first day of such Interest Period), or, in the case of LIBOR Loans, that the rate
at which such deposits are being offered will not adequately and fairly reflect the cost to any
Lender of making or maintaining its portion of such LIBOR Loans during such Interest Period, or
that reasonable means do not exist for ascertaining LIBOR, the Administrative Agent shall, as soon
as practicable thereafter, give written or telecopier notice of such determination to the Borrower
and the Lenders. In the event of any such determination, until the Administrative Agent shall have
determined that circumstances giving rise to such notice no longer exist, (a) any request by the
Borrower or any Subsidiary Borrower for a LIBOR Competitive Borrowing pursuant to Section 2.4 shall
be of no force and effect and shall be denied by the Administrative Agent and (b) any request by
the Borrower or any Subsidiary Borrower for a LIBOR Borrowing pursuant to Section 2.5 shall be
deemed to be a request for an ABR Loan. Each determination by the Administrative Agent hereunder
shall be conclusive absent manifest error.

     SECTION 2.13.    Termination and Reduction of Commitments; Increase of Revolving
Commitments; Reallocation of Commitments.

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

          (b) Subject to Sections 2.14(b) and (c), upon at least three Business Days’ prior
irrevocable written or telecopy notice to the Administrative Agent (which shall promptly notify
each Lender), the Borrower may at any time in whole permanently terminate, or from time to time in
part permanently reduce, the Total Revolving Commitment or the Canadian Revolving Commitment, or
both; provided that (i) each partial reduction shall be in an integral multiple of
$1,000,000 and in a minimum principal amount of $10,000,000 and (ii) the Borrower shall not be
entitled to make any such termination or reduction that would reduce (A) the Total Revolving
Commitment to an amount less than the sum of the aggregate outstanding principal Dollar Equivalent
Amount of the Loans (other than Canadian Revolving Loans) plus the then current Revolving L/C
Exposure or (B) the Canadian Revolving Commitment to an amount less than the sum of the aggregate
outstanding principal Dollar Equivalent Amount of the Canadian Revolving Loans plus the then
current Canadian L/C Exposure.

          (c) Each reduction in the Total Revolving Commitment hereunder shall be made ratably
among the Lenders in accordance with their respective Revolving 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 Revolving Commitment, the Facility Fees and the Utilization Fees on the
amount of the Revolving Commitments so terminated or reduced accrued to the date of such
termination or reduction.

          (d) In the event that the Borrower wishes to increase the Total Revolving Commitment 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 “Revolving Commitment Increase Notice”), and the
Administrative Agent shall notify each Revolving Lender of such proposed increase and provide such
additional information regarding such proposed increase as any Revolving Lender may reasonably
request. The Borrower may, at its election and with the consent of the Administrative Agent and
the Revolving Issuing Lenders (which consents shall not be unreasonably withheld), (i) offer one or
more of the Revolving Lenders the opportunity to participate in all or a portion of the Offered
Increase Amount pursuant to paragraph (f) below and/or (ii) 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 Revolving Commitment Increase Notice
shall specify which Revolving Lenders and/or banks, financial institutions or other entities the
Borrower desires to participate in such Revolving Commitment increase.

 

28

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 Revolving Commitments and which elects to become a
party to this Agreement and provide a Revolving Commitment in an amount so offered and accepted by
it pursuant to Section 2.13(d)(ii) shall execute a New Lender Supplement with the Borrower and the
Administrative Agent, substantially in the form of Exhibit F, whereupon such bank, financial
institution or other entity (herein called a “New Lender”) shall become a Revolving 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 1.1A shall be deemed to be amended to add
the name and Revolving Commitment of such New Lender, provided that the Revolving
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
Revolving Commitment pursuant to Section 2.13(d)(i) shall, in each case, execute a Revolving
Commitment Increase Supplement with the Borrower and the Administrative Agent, substantially in the
form of Exhibit G, whereupon such Lender shall be bound by and entitled to the benefits of this
Agreement with respect to the full amount of its Revolving Commitment as so increased, and Schedule
1.1A shall be deemed to be amended to so increase the Revolving Commitment of such Lender.

          (g) The Borrower and the Canadian Subsidiary Borrower may, from time to time, but
not more than once per calendar quarter, from and after the Closing Date until the earlier of the
Termination Date and the termination of the Canadian Revolving Commitment, upon giving an
irrevocable joint written notice (each, a “Reallocation Notice”) to the Canadian Revolving
Lender and the Administrative Agent at least ten Working Days prior to the beginning of the next
following calendar quarter,
temporarily reduce, in whole or in part, or increase, the Canadian Revolving Commitment. Any
reductions or increases in the Canadian Revolving Commitment shall take effect on the first day of
the next following calendar quarter. Each reduction or increase in the Canadian Revolving
Commitment shall result in an automatic corresponding increase or reduction in the Canadian
Revolving Lender’s Revolving Commitment; provided that the amount of the Canadian Revolving
Commitment shall not, at any time, (i) be reduced to an amount that is less than the sum of (A) the
outstanding aggregate principal Dollar Equivalent Amount of all Canadian Revolving Loans plus (B)
the then current Canadian L/C Exposure or (ii) exceed $80,000,000.

          (h) The ability of the Borrower and the Canadian Subsidiary Borrower to reallocate
the Revolving Commitments and the Canadian Revolving Commitment in accordance with this Section
2.13 shall be subject to (i) the prior written consent of the Canadian Revolving Lender to each
such reallocation, (ii) the representations and warranties set forth in (A) Article 3 (other than
those set forth in Section 3.5), in the case of the Borrower and (B) Sections 3.1, 3.2 and 3.3 as
to the Canadian Subsidiary Borrower, in the case of the Canadian Subsidiary Borrower, being true
and correct in all material respects on and as of the date of such reallocation with the same
effect as though made on and as of such date and (iii) at the time of and immediately following
such reduction or increase, no Event of Default or Default shall have occurred and be continuing.
Each Reallocation Notice shall specify the amount (expressed in Dollars) of any reduction or
increase in the Canadian Revolving Commitment and the corresponding increase or reduction in the
Revolving Credit Commitments. Each reallocation requested under this Section 2.13 shall be in a
minimum aggregate principal amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 (or, if less, (x) the remaining amount of the Canadian Revolving Commitment then in
effect or (y) an amount which would result in the Canadian Revolving Commitment exceeding
$80,000,000).

 

29

          (i) Notwithstanding anything to the contrary in this Section 2.13, (i) in no event
shall any transaction effected pursuant to this Section 2.13 cause the Total Revolving Commitment
to exceed $1,500,000,000 and (ii) no Lender shall have any obligation to increase its Revolving
Commitment unless it agrees to do so in its sole discretion.

     SECTION 2.14.    Prepayment of Loans.

          (a) Prior to the Termination Date, the Borrower or any applicable Subsidiary
Borrower shall have the right at any time, and from time to time, to prepay any Revolving Credit
Borrowing or Canadian Revolving Loan, in whole or in part (other than in the case of a Canadian
B/A), subject to the requirements of Section 2.18 but otherwise without premium or penalty, upon
prior written or telecopy notice to the Administrative Agent (which shall promptly notify each
Revolving Lender) (or to the Canadian Revolving Lender, in the case of any prepayment of Canadian
Revolving Loans) before 2:00 p.m. Local Time of at least one Business Day in the case of an ABR
Loan, FFR Loan, Canadian Prime Rate Loan or Canadian ABR Loan, and of at least three Working Days
in the case of a LIBOR Loan; provided that each such partial prepayment shall be in a
minimum aggregate principal Dollar Equivalent Amount of (i) $1,000,000 or a whole multiple in
excess thereof, in the case of Revolving Credit Loans and (ii) $500,000 or a whole multiple in
excess thereof, in the case of Canadian Revolving Loans. Neither the Borrower, nor any Subsidiary
Borrower shall have the right to prepay any Competitive Borrowing without the consent of the
relevant Lender. Any prepayment of a Canadian B/A shall be for the full face amount thereof, which
prepayment shall be made in full satisfaction of the Canadian Subsidiary Borrower’s reimbursement
obligation in respect of such Canadian B/A.

          (b) On any date when the sum of the Dollar Equivalent Amount of the aggregate
outstanding Loans (other than Canadian Revolving Loans) (after giving effect to any Borrowings
effected on such date) plus the then current Revolving L/C Exposure exceeds the Total Revolving
Commitment, the Borrower and/or any applicable Subsidiary Borrower shall make a mandatory
prepayment of the Loans in such amount as may be necessary so that the Dollar Equivalent Amount of
the aggregate amount of outstanding Loans (other than Canadian Revolving Loans) plus the then
current Revolving L/C Exposure after giving effect to such prepayment does not exceed the Total
Revolving Commitment then in effect. Any prepayments required by this paragraph shall be applied
first to outstanding ABR Loans and second to FFR Loans, in each case, up to the
full amount thereof before they are applied to outstanding LIBOR Loans.

          (c) On any date when the sum of the Dollar Equivalent Amount of the aggregate
outstanding Canadian Revolving Loans (after giving effect to any Loans effected on such date) plus
the then current Canadian L/C Exposure exceeds the Canadian Revolving Commitment, the Canadian
Subsidiary Borrower shall make a mandatory prepayment of the Loans in such amount as may be
necessary so that the Dollar Equivalent Amount of the aggregate amount of outstanding Canadian
Revolving Loans plus the then current Canadian L/C Exposure after giving effect to such prepayment
does not exceed the Canadian Revolving Commitment then in effect. Any prepayments required by this
paragraph shall be applied first to outstanding Canadian Prime Rate Loans and
second to outstanding Canadian ABR Loans, up to the full amount thereof before they are
applied to outstanding Canadian B/As and LIBOR Loans; provided that, in lieu of applying
prepaid amounts to outstanding Canadian B/As, the Canadian Subsidiary Borrower may deposit cash or
Cash Equivalents in a Canadian Cash Collateral Account in an amount equal to the amount by which
the principal Dollar Equivalent Amount of any outstanding Canadian B/As exceeds the Canadian
Revolving Commitment then in effect after giving effect to such other prepayments.

          (d) On any date the Borrower shall cease to own, directly or through wholly-owned
Subsidiaries, all of the capital stock of any Subsidiary Borrower, free and clear of any direct or
indirect

 

30

Liens, such Subsidiary Borrower shall (i) make a mandatory prepayment of all outstanding
Loans made to it and (ii) deposit cash in a Cash Collateral Account in an amount equal at all times
to the full amount of the Revolving L/C Exposure from Revolving Letters of Credit issued for its
account or Canadian L/C Exposure from Canadian Letters of Credit issued for its account.

          (e) Each notice of prepayment pursuant to this Section 2.14 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 or the applicable Subsidiary
Borrower to prepay such Borrowing(s) by the amount stated therein. All prepayments under this
Section 2.14 shall be accompanied by accrued interest on the principal amount being prepaid to the
date of prepayment and any amounts due pursuant to Section 2.18.

     SECTION 2.15.    Eurocurrency Reserve Costs.

          The Borrower and any applicable Subsidiary Borrower shall pay to the Administrative Agent for
the account of each Lender (or to the Canadian Revolving Lender, in the case of LIBOR Canadian
Revolving Loans), so long as such Lender shall be required under regulations of the Board to
maintain reserves with respect to liabilities or assets consisting of, or including, Eurocurrency
Liabilities (as defined in Regulation D of the Board) (or, at any time when such Lender may be
required by the Board or by any other Governmental Authority, whether within the United States or
in another relevant jurisdiction, to maintain reserves against any other category of liabilities
which includes deposits by
reference to which LIBOR is determined as provided in this Agreement or against any category
of extensions of credit or other assets of such Lender which includes any such LIBOR Loans),
additional interest on the unpaid principal amount of each LIBOR Loan made to the Borrower or such
Subsidiary 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
or the applicable Subsidiary Borrower by any Lender shall be payable to the Administrative Agent
for the account of such Lender (or to the Canadian Revolving Lender, in the case of LIBOR Canadian
Revolving Loans) on each Interest Payment Date for such Loan.

     SECTION 2.16.    Reserve Requirements; Change in Circumstances.

          (a) Notwithstanding any other provision herein, if after the date of this Agreement
any change in Applicable Law or regulation or in the interpretation or administration thereof by
any Governmental Authority charged with the interpretation or administration thereof (whether or
not having the force of law) (i) shall subject any Lender to, or increase the net amount of, any
tax, levy, impost, duty, charge, fee, deduction or withholding with respect to any Loan, or shall
change the basis of taxation of payments to any Lender of the principal of or interest on any Loan
made by such Lender or any other fees or amounts payable hereunder (other than (x) taxes imposed on
the overall net income of such Lender by the jurisdiction in which such Lender has its principal
office or its applicable Lending Office or by any political subdivision or taxing authority therein
(or any tax which is enacted or adopted by such jurisdiction, political subdivision or taxing
authority as a direct substitute for any such taxes) or (y) any tax, assessment, or other
governmental charge that would not have been imposed but for the failure of any Lender to comply
with any certification, information, documentation or other reporting requirement), (ii) shall
impose, modify or deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of, or credit extended by, any Lender, or (iii) shall impose on any

 

31

Lender or eurocurrency market any other condition affecting this Agreement or any
Loan made by such Lender, and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Loan or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or otherwise) in respect
thereof by an amount deemed in good faith by such Lender to be material, then the Borrower or the
applicable Subsidiary Borrower shall pay such additional amount or amounts as will compensate such
Lender for such increase or reduction to such Lender upon demand by such Lender.

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

          (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 or the applicable Subsidiary 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 2.16 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 2.16, Section 2.17, Section 2.22 or Section 2.24(g) or (ii) would
require the Borrower or any Subsidiary Borrower to pay an increased amount under this Section 2.16,
Section 2.17, Section 2.22 or Section 2.24(g), it will use reasonable efforts to notify the
Borrower of such event or condition and, to the extent not inconsistent with such Lender’s internal
policies, will use its reasonable efforts to make, fund or maintain the affected Loans of such
Lender, or, if applicable to participate in Letters of Credit, 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 or
Letters of Credit 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 or
Letters of Credit pursuant to this Section 2.16, Section 2.17, Section 2.22 or Section

 

32

2.24(g)
would be materially reduced or the taxes or other amounts otherwise payable under this Section
2.16, Section 2.17 or Section 2.22 would be materially reduced, and if, as determined by such
Lender, in its sole reasonable discretion, the making, funding or maintaining of such Loans or
Letters of Credit through such other Lending Office would not otherwise materially adversely affect
such Loans or Letters of Credit.

          (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 2.17, that amounts are due to
such Lender pursuant to paragraph (c) above, that any of the events designated in paragraph (e)
above have occurred or that such Lender shall not be rated at least BBB by S&P and Baa2 by Moody’s,
the Borrower may (but subject in any such case to the payments required by Section 2.18),
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
Revolving Commitment, the amount of outstanding Loans and any participations in Letters of Credit
from the Lender providing such notice and such Lender shall thereupon assign its Revolving
Commitment, any Loans owing to such Lender and any participations in Letters of Credit held by such
Lender to such replacement lending institution pursuant to Section 10.3. Such notice shall specify
an effective date for such assignment and at the time thereof, the Borrower
and/or the applicable Subsidiary Borrower shall pay all accrued interest, Facility Fees,
Utilization Fees and all other amounts (including without limitation all amounts payable under this
Section and Sections 2.22, 2.24(g), 10.4 and 10.5) owing hereunder to such Lender as at such
effective date for such assignment.

     SECTION 2.17.    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 such Lender shall not submit a Competitive Bid in response to a
request for LIBOR Competitive Loans and the Borrower shall otherwise be prohibited
from requesting LIBOR Loans from such Lender hereunder unless such declaration is
subsequently withdrawn; and

     (ii) require that all outstanding LIBOR Loans (in Dollars) made by it be
converted to ABR Loans (or to Canadian ABR Loans, in the case of the Canadian
Revolving Lender) in which event (A) all such LIBOR Loans shall be automatically
converted to ABR Loans or Canadian ABR Loans, as the case may be, as of the
effective date of such notice as provided in Section 2.17(b) and (B) all payments
and prepayments of principal which would otherwise have been applied to repay the
converted LIBOR Loans shall instead be applied to repay the ABR Loan resulting from
the conversion of such LIBOR Loans.

          (b) For purposes of this Section 2.17, a notice to the Borrower by any Lender
pursuant to Section 2.17(a) shall be effective on the date of receipt thereof by the Borrower.

 

33

     SECTION 2.18.    Reimbursement of Lenders.

          (a) The Borrower shall reimburse each Lender on demand for any loss incurred or to
be incurred by it in the reemployment of the funds released (i) by any prepayment (for any reason,
including any refinancing) of any LIBOR or Fixed Rate Loan if such Loan is repaid other than on the
last day of the applicable Interest Period for such Loan or (ii) in the event that after the
Borrower or any Subsidiary Borrower delivers a notice of borrowing under Section 2.5 in respect of
LIBOR Revolving Credit Loans or a Competitive Bid Accept/Reject Letter under Section 2.4(d),
pursuant to which it has accepted Competitive Bids of one or more of the Lenders, the applicable
Loan is not made on the first day of the Interest Period specified by the Borrower or the
applicable Subsidiary Borrower for any reason other than (I) a suspension or limitation under
Section 2.17 of the right of the Borrower or any Subsidiary Borrower to select a LIBOR Loan or (II)
a breach by such 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 2.10, for the
period from the date of such failure to borrow to the last day of the Interest Period for such Loan
which
would have commenced on the date of such failure to borrow, over (B) the amount realized by
such Lender in reemploying the funds not advanced during the period referred to above. In the case
of a payment other than on the last day of the Interest Period for a Loan, such loss shall be the
amount of the excess, if any, of (A) the amount of interest which would have accrued on the amount
so paid at a rate of interest equal to the interest rate applicable to such Loan pursuant to
Section 2.10, for the period from the date of such payment to the last day of the then current
Interest Period for such Loan, over (B) an amount equal to the product of (x) the amount of the
Loan so paid times (y) the current daily yield on U.S. Treasury Securities (at such date of
determination) with maturities approximately equal to the remaining Interest Period for such Loan
times (z) the number of days remaining in the Interest Period for such Loan. Each Lender
shall deliver to the Borrower from time to time one or more certificates setting forth the amount
of such loss (and in reasonable detail the manner of computation thereof) as determined by such
Lender, which certificates shall be conclusive absent manifest error. The Borrower shall pay to
the Administrative Agent for the account of each Lender the amount shown as due on any certificate
within thirty (30) days after its receipt of the same.

          (b) In the event the Borrower or any Subsidiary Borrower fails to prepay any Loan on
the date specified in any prepayment notice delivered pursuant to Section 2.14(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.

     SECTION 2.19.    Pro Rata Treatment.

          Except as permitted under Sections 2.15, 2.16(c), 2.16(f), 2.17, 2.18 and 4.1(g), each
Borrowing under the Revolving Commitments and each reduction of the Total Revolving Commitment
shall be allocated pro rata among the Lenders in accordance with their respective Revolving
Commitments (or, if such Revolving Commitments shall have expired or been terminated, in accordance
with the respective principal amount of their Revolving Credit Loans) and each payment or
prepayment of principal of any Borrowing and each payment of interest on the Revolving Credit Loans
shall be allocated pro rata in accordance with the respective principal amount of the Revolving
Credit Loans then held by the Lenders. Each payment of principal of any Competitive Borrowing
shall be allocated pro rata among the Lenders participating in such Borrowing in accordance with
the respective principal amounts of their outstanding Competitive Loans comprising such Borrowing.
Each payment of interest on any

 

34

Competitive Borrowing shall be allocated pro rata among the Lenders
participating in such Borrowing in accordance with the respective amounts of accrued and unpaid
interest on their outstanding Competitive Loans comprising such Borrowing. For purposes of
determining the available Revolving Commitments of the Lenders at any time, each outstanding
Competitive Borrowing shall be deemed to have utilized the Revolving Commitments of the Lenders
(including those Lenders that shall not have made Loans as part of such Competitive Borrowing) pro
rata in accordance with such respective Revolving Commitments. Each Lender agrees that in
computing such Lender’s portion of any Borrowing under the Revolving Commitments 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 2.20.    Right of Setoff.

          If any Event of Default shall have occurred and be continuing and any Lender shall have
requested the Administrative Agent to declare the Loans immediately due and payable pursuant to
Article 7, each Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by Applicable Law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held by such Lender and any other indebtedness at
any time owing by such Lender to, or for the credit or the account of, the Borrower or any
Subsidiary Borrower (limited, in the case of any Subsidiary Borrower, to the extent of the
Obligations owed by such Subsidiary Borrower under this Agreement), against any of and all the
Obligations now or hereafter existing under this Agreement and the Loans and participations in
Letters of Credit 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 2.20 are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have and are subject to the
provisions of Section 8.2.

     SECTION 2.21.    Manner of Payments.

          All payments by the Borrower or any Subsidiary Borrower hereunder shall be made in immediately
available funds, without setoffs, deductions or counterclaims, at the Funding Office no later than
4:30 p.m., Local 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. All interest
and principal payments in respect of any Loan shall be made in the Currency in which such Loan is
denominated. All other payments shall be made in Dollars.

     SECTION 2.22.    Withholding Taxes.

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

 

35

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

          (c) Each Lender agrees (i) that as between it and the Borrower, any Subsidiary
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 10.3 and (ii) to
indemnify the Borrower, any applicable Subsidiary Borrower and the Administrative Agent and any of
their officers, directors, agents, or employees against, and to hold them harmless from, any tax,
interest, additions to tax, penalties, reasonable counsel and accountants’ fees, disbursements or
payments arising from the assertion by any appropriate taxing authority of any claim against them
relating to a failure to withhold taxes as required by Applicable Law with respect to amounts
described in clause (i) of this paragraph (c).

          (d) Each assignee of a Lender’s interest in this Agreement in conformity with
Section 10.3 shall be bound by this Section 2.22, 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 2.22.

          (e) In the event that any (a) withholding taxes imposed by any jurisdiction outside
the United States shall become payable for any reason (other than an assignment of any portion of
the Canadian Revolving Commitment or Canadian Revolving Loans by the Canadian Lenders to any Person
who is not an Eligible Canadian Revolving Lender) or (b) United States withholding taxes shall
become payable as a result of any change in any statute, treaty, ruling, determination or
regulation occurring after the Initial Date (as defined below), in respect of any sum payable
hereunder or under any other Fundamental Document to any Lender or the Administrative Agent (i) the
sum payable by the Borrower or any Subsidiary Borrower shall be increased as may be necessary so
that after making all required deductions (including deductions applicable to additional sums
payable under this Section 2.22) such Lender or the Administrative Agent (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
the Borrower, any Subsidiary Borrower, the Lender

 

36

or the Administrative Agent (as the case may be)
shall make such deductions and (iii) the Borrower, any applicable Subsidiary Borrower, the Lender
or the Administrative Agent (as the case may be) shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with Applicable Law. For purposes of this
Section 2.22, the term “Initial Date” shall mean (i) in the case of the Administrative Agent, the
date hereof, (ii) in the case of each Lender as of the date hereof, the date hereof and (iii) in
the case of any other Lender, the effective date of the Assignment and Acceptance pursuant to which
it became a Lender.

     SECTION 2.23.    Certain Pricing Adjustments.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&P/Moody’s/Fitch	 	 	 	 	 	 	 	 	 	 
	Rating Equivalent	 	 	 	 	 	 	 	 	 	 
	of the Borrower's	 	 	 	 	 	Applicable	 	Applicable	 	Utilization Fee
	senior unsecured	 	Facility Fee	 	LIBOR Spread	 	FFR Spread	 	Percentage
	long-term debt	 	(in Basis Points)	 	(in Basis Points)	 	(in Basis Points)	 	(in Basis Points)
	A/A2/A or better

	 	 	7.0	 	 	 	18.0	 	 	 	18.0	 	 	 	10.0	 
	A-/A3/A-

	 	 	8.0	 	 	 	22.0	 	 	 	22.0	 	 	 	10.0	 
	BBB+/Baa1/BBB+

	 	 	10.0	 	 	 	30.0	 	 	 	30.0	 	 	 	10.0	 
	BBB/Baa2/BBB

	 	 	12.0	 	 	 	38.0	 	 	 	38.0	 	 	 	10.0	 
	BBB-/Baa3/BBB-

	 	 	15.0	 	 	 	47.5	 	 	 	47.5	 	 	 	12.5	 
	BB+/Ba1/BB+ or worse

	 	 	17.5	 	 	 	70.0	 	 	 	70.0	 	 	 	12.5	 

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

 

37

publication by any of such rating
agencies of an increase in rating or in the absence of announcement or publication on the effective
date of such increase in rating.

     SECTION 2.24.    Revolving Letters of Credit.

          (a) (i) Upon the terms and subject to the conditions hereof, each Revolving Issuing
Lender agrees to issue Revolving Letters of Credit payable in Dollars from time to time after the
Closing Date and prior to the earlier of the Termination Date and the termination of the Revolving
Commitments, upon the request of the Borrower or any Subsidiary Borrower (other than the Canadian
Subsidiary Borrower), provided that (A) the Borrower or applicable Subsidiary Borrower
shall not request that any Revolving Letter of Credit be issued if, after giving effect thereto,
the sum of the then current Revolving L/C Exposure plus the aggregate principal Dollar Equivalent
Amount of the Loans then outstanding (other than Canadian Revolving Loans) would exceed the Total
Revolving Commitment, (B) in no event shall any Revolving Issuing Lender issue (x) any Revolving
Letter of Credit having an expiration date later than five Business Days before the Termination
Date or (y) any Revolving Letter of Credit having an expiration date more than one year after its
date of issuance, provided, further, that any Revolving Letter of Credit with a
365-day duration may provide for the renewal thereof for additional one-year periods (which shall
in no event extend beyond the date referred to in clause (x) above), (C) neither the Borrower, nor
any Subsidiary Borrower shall request that a Revolving Issuing Lender issue any Revolving Letter of
Credit if, after giving effect to such issuance, the Revolving L/C Exposure would exceed
$200,000,000, and (D) a Revolving Issuing Lender shall be prohibited from issuing or renewing
Revolving Letters of Credit hereunder upon the occurrence and during the continuance of a Default
or an Event of Default.

     (ii) Immediately upon the issuance of each Revolving Letter of Credit, each
Revolving Lender shall be deemed to, and hereby agrees to, have irrevocably
purchased from the applicable Revolving Issuing Lender, a participation in such
Revolving Letter of Credit in accordance with the percentage which its Revolving
Commitment represents of the Total Revolving Commitment.

     (iii) Each Revolving Letter of Credit may, at the option of the applicable
Revolving Issuing Lender, provide that such Revolving Issuing Lender may (but shall
not be required to) pay all or any part of the maximum amount which may at any time
be available for drawing thereunder to the beneficiary thereof upon the occurrence
of an Event of Default and the acceleration of the maturity of the Revolving Credit
Loans, provided that, if payment is not then due to such beneficiary, such
Revolving Issuing Lender shall deposit the funds in question in an account with such
Revolving Issuing Lender to secure payment to such beneficiary and any funds so
deposited shall be paid to such beneficiary of such Revolving Letter of Credit if
conditions to such payment are satisfied or returned to the Administrative Agent for
distribution to the Revolving Lenders (or, if all Obligations shall have been paid
in full in cash, to the Borrower or the applicable Subsidiary Borrower) if no
payment to such beneficiary has been made and the final date available for drawings
under such Revolving Letter of Credit has passed. Each payment or deposit of funds
by a Revolving Issuing Lender as provided in this paragraph shall be treated for all
purposes of this Agreement as a drawing duly honored by such Revolving Issuing
Lender under the related Revolving Letter of Credit.

             (b) Whenever the Borrower or any Subsidiary Borrower desires the issuance of a
Revolving Letter of Credit, it shall deliver to the Administrative Agent and the applicable
Revolving Issuing Lender a written notice no later than 1:00 p.m. (New York City time) at least
five Business Days prior to the proposed date of issuance provided, however, that
the Borrower or such Subsidiary Borrower and the Administrative Agent and such Revolving Issuing
Lender may agree to a shorter time period.

 

38

That notice shall specify (i) the Revolving Issuing
Lender for such Revolving Letter of Credit, (ii) the proposed date of issuance (which shall be a
Business Day), (iii) the face amount of such Revolving Letter of Credit, (iv) the expiration date
of such Revolving Letter of Credit and (v) the name and address of the beneficiary. Such notice
shall be accompanied by a brief description of the underlying transaction and upon the request of
the applicable Revolving Issuing Lender, the Borrower or the applicable Subsidiary
Borrower shall provide additional details regarding the underlying transaction. Concurrently
with the giving of written notice of a request for the issuance of a Revolving Letter of Credit,
the Borrower or the applicable Subsidiary Borrower shall specify a precise description of the
documents and the verbatim text of any certificate to be presented by the beneficiary of such
Revolving Letter of Credit which, if presented by such beneficiary prior to the expiration date of
such Revolving Letter of Credit, would require the applicable Revolving Issuing Lender to make
payment under such Revolving Letter of Credit; provided that the applicable Revolving
Issuing Lender, in its reasonable discretion, may require customary changes in any such documents
and certificates. Upon issuance of any Revolving Letter of Credit, the applicable Revolving
Issuing Lender shall notify the Administrative Agent of the issuance of such Revolving Letter of
Credit. Promptly after receipt of such notice, the Administrative Agent shall notify each
Revolving Lender of the issuance and the amount of each such Lender’s respective participation
therein.

          (c) The payment of drafts under any Revolving Letter of Credit shall be made in
accordance with the terms of such Revolving Letter of Credit and, in that connection, any Revolving
Issuing Lender shall be entitled to honor any drafts and accept any documents presented to it by
the beneficiary of such Revolving Letter of Credit in accordance with the terms of such Revolving
Letter of Credit and believed by such Revolving Issuing Lender in good faith, and in the absence of
gross negligence or willful misconduct, to be genuine. No Revolving Issuing Lender shall have any
duty to inquire as to the accuracy or authenticity of any draft or other drawing documents which
may be presented to it, but shall be responsible only to determine in accordance with customary
commercial practices, and in the absence of gross negligence or willful misconduct, that the
documents which are required to be presented before payment or acceptance of a draft under any
Revolving Letter of Credit have been delivered and that they comply on their face with the
requirements of that Revolving Letter of Credit. The obligations of the Borrower and any
Subsidiary Borrower under this Section 2.24 shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrower
or any Subsidiary Borrower may have or have had against any Revolving Issuing Lender, any
beneficiary of a Revolving Letter of Credit or any other Person.

          (d) If any Revolving Issuing Lender shall make payment on any draft presented under
a Revolving Letter of Credit, such Revolving Issuing Lender shall give notice of such payment to
the Administrative Agent and the Revolving Lenders and each Revolving Lender hereby authorizes and
requests such Revolving Issuing Lender to advance for its account pursuant to the terms hereof its
share of such payment based upon its participation in such Revolving Letter of Credit and agrees
promptly to reimburse such Revolving Issuing Lender in immediately available funds for the Dollar
amount so advanced on its behalf. If such reimbursement is not made by any Revolving Lender in
immediately available funds on the same day on which such Revolving Issuing Lender shall have made
payment on any such draft, such Lender shall pay interest thereon to such Revolving Issuing Lender
at a rate per annum equal to the Revolving Issuing Lender’s cost of obtaining overnight funds in
the New York Federal Funds Market.

          (e) In the case of any draft presented under a Revolving Letter of Credit which is
required to be paid at any time on or before the Termination Date and provided that the conditions
specified in Section 4.2 are then satisfied, such payment shall constitute an ABR Loan hereunder,
and interest shall accrue from the date the applicable Revolving Issuing Lender makes payment of a
draft under the Revolving Letter of Credit. If any draft is presented under a Revolving Letter of
Credit and (i) the conditions specified in Section 4.2 are not satisfied or (ii) if the Revolving
Commitments have been

 

39

terminated, then the Borrower or the applicable Subsidiary Borrower will,
upon demand by the Administrative Agent, pay to the applicable Revolving Issuing Lender, in
immediately available funds, the full amount of such draft.

          (f) (i) The Borrower agrees to pay the following amount to each Revolving Issuing
Lender with respect to Revolving Letters of Credit issued by it hereunder:

     (A) with respect to drawings made under any Revolving Letter of
Credit, interest, payable on demand, on the amount paid by such Revolving
Issuing Lender in respect of each such drawing from the date of the drawing
to, but excluding, the date such amount is reimbursed by the Borrower at a
rate which is at all times equal to 2% per annum in excess of the Alternate
Base Rate; provided that no such default interest shall be payable
if such reimbursement is made from the proceeds of Revolving Credit Loans
pursuant to Section 2.24(e);

     (B) with respect to the issuance, amendment or transfer of each
Revolving Letter of Credit and each drawing made thereunder, documentary and
processing charges in accordance with such Revolving Issuing Lender’s
standard schedule for such charges in effect at the time of such issuance,
amendment, transfer or drawing, as the case may be; and

     (C) a fronting fee computed at the rate agreed to by the Borrower and
the applicable Revolving Issuing Lender, on the daily average face amount of
each outstanding Revolving Letter of Credit issued by such Revolving Issuing
Lender, such fee to be due and payable in arrears on and through the last
day of each fiscal quarter of the Borrower, on the Termination Date and on
the expiration of the last outstanding Revolving Letter of Credit.

     (ii) The Borrower agrees to pay to the Administrative Agent for distribution to
each Revolving Lender in respect of all Revolving Letters of Credit outstanding,
such Lender’s pro rata share of a commission on the maximum amount available from
time to time to be drawn under such outstanding Revolving Letters of Credit
calculated at a rate per annum equal to the applicable LIBOR Spread from time to
time in effect hereunder. Such commission shall be payable in arrears on and
through the last day of each fiscal quarter of the Borrower and on the later of the
Termination Date and the expiration of the last outstanding Revolving Letter of
Credit.

     (iii) Promptly upon receipt by any Revolving Issuing Lender or the
Administrative Agent (as applicable) of any amount described in clause (i)(A) or
(ii) of this Section 2.24(f), or any amount described in Section 2.24(e) previously
reimbursed to the applicable Revolving Issuing Lender by the Revolving Lenders, such
Revolving Issuing Lender or the Administrative Agent (as applicable) shall
distribute to each Revolving Lender its pro rata share of such amount. Amounts
payable under clauses (i)(B) and (i)(C) of this Section 2.24(f) shall be paid
directly to the Revolving Issuing Lender and shall be for its exclusive use.

             (g) If by reason of (i) any change after the date hereof in Applicable Law, or in
the interpretation or administration thereof (including, without limitation, any request, guideline
or policy not having the force of law) by any Governmental Authority charged with the
administration or interpretation thereof, or (ii) compliance by any Revolving Issuing Lender or any
Revolving Lender with any direction, request or requirement (whether or not having the force of
law) issued after the date hereof by any

 

40

Governmental Authority or monetary authority (including
any change whether or not proposed or published prior to the date hereof), including, without
limitation, Regulation D of the Board:

     (A) any Revolving Issuing Lender or any Revolving Lender shall be
subject to any tax, levy, charge or withholding of any nature (other than
withholding tax imposed by the United States or any political subdivision or
taxing authority thereof or therein or any other tax, levy, charge or
withholding (i) that is measured with respect to the overall net income of
such Revolving Issuing Lender or such Lender (or is imposed in lieu of a tax
on net income) or of a Lending Office of such Revolving Issuing Lender or
such Lender, and that is imposed by the United States, or by the
jurisdiction in which such Revolving Issuing Lender or such Lender is
incorporated, or in which such Lending Office is located, managed or
controlled or in which such Revolving Issuing Lender or such Lender has its
principal office (or any political subdivision or taxing authority thereof
or therein) or (ii) that is imposed solely by reason of such Revolving
Issuing Lender or such Lender failing to make a declaration of, or otherwise
to establish, non-residence, or to make any other claim for exemption, or
otherwise to comply with any certification, identification, information,
documentation or reporting requirements prescribed under the laws of the
relevant jurisdiction, in those cases where such Revolving Issuing Lender or
such Lender may properly make the declaration or claim or so establish
non-residence or otherwise comply) or to any variation thereof or to any
penalty with respect to the maintenance or fulfillment of its obligations
under this Section 2.24, whether directly or by such being imposed on or
suffered by any Revolving Issuing Lender or any Lender;

     (B) any reserve, deposit or similar requirement is or shall be
applicable, imposed or modified in respect of any Revolving Letter of Credit
issued by any Revolving Issuing Lender or participations therein purchased
by any Revolving Lender; or

     (C) there shall be imposed on any Revolving Issuing Lender or any
Revolving Lender any other condition regarding this Section 2.24, any
Revolving Letter of Credit or any participation therein;

and the result of the foregoing is directly or indirectly to increase the cost to any Revolving
Issuing Lender or any Revolving Lender of issuing, making or maintaining any Revolving Letter of
Credit or of purchasing or maintaining any participation therein, or to reduce the amount
receivable in respect thereof by any Revolving Issuing Lender or any Revolving Lender, then and in
any such case such Revolving Issuing Lender or such Lender may, at any time, notify the Borrower,
and the Borrower or the applicable Subsidiary Borrower shall pay on demand such amounts as such
Revolving Issuing Lender or such Lender may specify to be necessary to compensate such Revolving
Issuing Lender or such Lender for such additional cost or reduced receipt. The determination by
any Revolving Issuing Lender or any Revolving Lender, as the case may be, of any amount due
pursuant to this Section 2.24 as set forth in a certificate setting forth the calculation thereof
in reasonable detail shall, in the absence of manifest error, be final, conclusive and binding on
all of the parties hereto.

          (h) If at any time when an Event of Default shall have occurred and be continuing,
any Revolving Letters of Credit shall remain outstanding, then either the applicable Revolving
Issuing Lender(s) or the Required Lenders may, at their option, require the Borrower or any
applicable Subsidiary Borrower to deposit cash or Cash Equivalents in a Cash Collateral Account in
an amount equal to the full

 

41

amount of the Revolving L/C Exposure or to furnish other security
acceptable to the Administrative Agent and the applicable Revolving Issuing Lender(s). Any amounts
so delivered pursuant to the preceding sentence shall be applied to reimburse the applicable
Revolving Issuing Lender(s) for the
amount of any drawings honored under Revolving Letters of Credit issued by it;
provided, however, that if prior to the Termination Date, no Event of Default is
then continuing, the Administrative Agent shall return all of such collateral relating to such
deposit to the Borrower or such Subsidiary Borrower if requested by it.

          (i) If, at any time, the Revolving L/C Exposure exceeds the Total Revolving
Commitment, then the Required Lenders may, at their option, require the Borrower or any applicable
Subsidiary Borrower to deposit cash or Cash Equivalents in a Cash Collateral Account in an amount
sufficient to eliminate such excess or to furnish other security for such excess acceptable to the
Administrative Agent and the Revolving Issuing Lender(s). Any amounts so delivered pursuant to the
preceding sentence shall be applied to reimburse the applicable Revolving Issuing Lender(s) for the
amount of any drawings honored under Revolving Letters of Credit and to repay all funded
participations therein of Revolving Lenders; provided that if subsequent to any such
deposit such excess is reduced to an amount less than the portion of such deposited amounts and no
Default or Event of Default is then continuing, the Borrower or such Subsidiary Borrower shall be
entitled to receive such excess collateral if requested by it.

          (j) Upon the request of the Administrative Agent, each Revolving Issuing Lender
shall furnish to the Administrative Agent copies of any Revolving Letter of Credit issued by such
Revolving Issuing Lender and such related documentation as may be reasonably requested by the
Administrative Agent.

          (k) Upon the Closing Date, all Existing Revolving Letters of Credit shall be deemed
to have ceased to be outstanding under the Existing Revolving Credit Agreement and shall be deemed
instead to have been issued under this Agreement on the Closing Date and to be outstanding under
this Agreement; provided, however, that the foregoing shall not relieve the
Borrower of any liability it may have under or in respect of the Existing Revolving Letters of
Credit or modify or impair any rights of any other person under or in respect of the Existing
Revolving Letters of Credit.

          (l) The Borrower represents and warrants to the Administrative Agent, the Revolving
Issuing Lender(s) and the Lenders that Schedule 2.24(l) to this Agreement sets forth a true and
complete listing of all Existing Revolving Letters of Credit.

          Notwithstanding the termination of the Commitments and the payment of the Loans, the
obligations of the Borrower under this Section 2.24 shall remain in full force and effect until the
Administrative Agent, each Revolving Issuing Lender and the Revolving Lenders shall have been
irrevocably released from their obligations with regard to any and all Revolving Letters of Credit.

     SECTION 2.25.    Canadian Letters of Credit.

          (a) (i) Upon the terms and subject to the conditions hereof, the Canadian Revolving
Lender agrees to issue Canadian Letters of Credit payable in Canadian Dollars or Dollars from time
to time after the Closing Date and prior to the earlier of the Termination Date and the termination
of the Canadian Revolving Commitment, upon the request of the Canadian Subsidiary Borrower,
provided that (A) the Canadian Subsidiary Borrower shall not request that any Canadian
Letter of Credit be issued if, after giving effect thereto, the sum of the then current Canadian
L/C Exposure plus the aggregate principal Dollar Equivalent Amount of the Canadian Revolving Loans
then outstanding would exceed the Canadian Revolving Commitment, (B) in no event shall the Canadian
Revolving Lender issue (x) any

 

42

Canadian Letter of Credit having an expiration date later than five
Business Days before the Termination
Date or (y) any Canadian Letter of Credit having an expiration date more than one year after
its date of issuance, provided, further, that any Canadian Letter of Credit with a
365-day duration may provide for the renewal thereof for additional one-year periods (which shall
in no event extend beyond the date referred to in clause (x) above), and (C) the Canadian Revolving
Lender shall be prohibited from issuing or renewing Canadian Letters of Credit hereunder upon the
occurrence and during the continuance of a Default or an Event of Default.

     (ii) Each Canadian Letter of Credit may, at the option of the Canadian Revolving
Lender, provide that the Canadian Revolving Lender may (but shall not be required
to) pay all or any part of the maximum amount which may at any time be available for
drawing thereunder to the beneficiary thereof upon the occurrence of an Event of
Default and the acceleration of the maturity of the Canadian Revolving Loans,
provided that, if payment is not then due to such beneficiary, the Canadian
Revolving Lender shall deposit the funds in question in an account with the Canadian
Revolving Lender to secure payment to such beneficiary and any funds so deposited
shall be paid to such beneficiary of such Canadian Letter of Credit if conditions to
such payment are satisfied (or, if all Obligations shall have been paid in full in
cash, to the Canadian Subsidiary Borrower) if no payment to such beneficiary has
been made and the final date available for drawings under such Canadian Letter of
Credit has passed. Each payment or deposit of funds by the Canadian Revolving
Lender as provided in this paragraph shall be treated for all purposes of this
Agreement as a drawing duly honored by the Canadian Revolving Lender under the
related Canadian Letter of Credit.

             (b) Whenever the Canadian Subsidiary Borrower desires the issuance of a Canadian
Letter of Credit, it shall deliver to the Canadian Revolving Lender and the Administrative Agent a
written notice no later than 1:00 p.m. (Toronto time) at least five Business Days prior to the
proposed date of issuance provided, however, that the Canadian Subsidiary Borrower
and the Canadian Revolving Lender may agree to a shorter time period. That notice shall specify
(i) the proposed date of issuance (which shall be a Business Day), (ii) the face amount of such
Canadian Letter of Credit, (iii) the expiration date of such Canadian Letter of Credit and (iv) the
name and address of the beneficiary. Such notice shall be accompanied by a brief description of
the underlying transaction and upon the request of the Canadian Revolving Lender, the Canadian
Subsidiary Borrower shall provide additional details regarding the underlying transaction.
Concurrently with the giving of written notice of a request for the issuance of a Canadian Letter
of Credit, the Canadian Subsidiary Borrower shall specify a precise description of the documents
and the verbatim text of any certificate to be presented by the beneficiary of such Canadian Letter
of Credit which, if presented by such beneficiary prior to the expiration date of such Canadian
Letter of Credit, would require the Canadian Revolving Lender to make payment under such Canadian
Letter of Credit; provided that the Canadian Revolving Lender, in its reasonable
discretion, may require customary changes in any such documents and certificates. Upon issuance of
any Canadian Letter of Credit, the Canadian Revolving Lender shall notify the Administrative Agent
of the issuance of such Canadian Letter of Credit.

             (c) The payment of drafts under any Canadian Letter of Credit shall be made in
accordance with the terms of such Canadian Letter of Credit and, in that connection, the Canadian
Revolving Lender shall be entitled to honor any drafts and accept any documents presented to it by
the beneficiary of such Canadian Letter of Credit in accordance with the terms of such Canadian
Letter of Credit and believed by the Canadian Revolving Lender in good faith, and in the absence of
gross negligence or willful misconduct, to be genuine. The Canadian Revolving Lender shall have no
duty to inquire as to the accuracy or authenticity of any draft or other drawing documents which
may be presented to it, but shall be responsible only to determine in accordance with customary
commercial

 

43

practices, and in the absence of gross negligence or willful misconduct, that the
documents which are
required to be presented before payment or acceptance of a draft under any Canadian Letter of
Credit have been delivered and that they comply on their face with the requirements of that
Canadian Letter of Credit. The obligations of the Canadian Subsidiary Borrower under this Section
2.25 shall be absolute and unconditional under any and all circumstances and irrespective of any
setoff, counterclaim or defense to payment which the Canadian Subsidiary Borrower may have or have
had against the Canadian Revolving Lender, any beneficiary of a Canadian Letter of Credit or any
other Person.

          (d) If the Canadian Revolving Lender shall make payment on any draft presented under
a Canadian Letter of Credit, the Canadian Revolving Lender shall give notice of such payment to the
Administrative Agent.

          (e) In the case of any draft presented under a Canadian Letter of Credit which is
required to be paid at any time on or before the Termination Date and provided that the conditions
specified in Section 4.2 are then satisfied, such payment shall constitute a Canadian Prime Rate
Loan or Canadian ABR Loan hereunder, and interest shall accrue from the date the Canadian Revolving
Lender makes payment of a draft under the Canadian Letter of Credit. If any draft is presented
under a Canadian Letter of Credit and (i) the conditions specified in Section 4.2 are not satisfied
or (ii) if the Revolving Commitments have been terminated, then the Canadian Subsidiary Borrower
will, upon demand by the Canadian Revolving Lender, pay to it, in immediately available funds, the
full amount of such draft.

          (f) (i) The Canadian Subsidiary Borrower agrees to pay the following amount to the
Canadian Revolving Lender with respect to Canadian Letters of Credit issued by it hereunder:

     (A) with respect to drawings made under any Canadian Letter of Credit,
interest, payable on demand, on the amount paid by the Canadian Revolving
Lender in respect of each such drawing from the date of the drawing to, but
excluding, the date such amount is reimbursed by the Borrower at a rate
which is at all times equal to 2% per annum in excess of the Canadian Prime
Rate or Canadian Alternate Base Rate, as applicable; provided that
no such default interest shall be payable if such reimbursement is made from
the proceeds of Canadian Revolving Loans pursuant to Section 2.25(e);

     (B) with respect to the issuance, amendment or transfer of each
Canadian Letter of Credit and each drawing made thereunder, documentary and
processing charges in accordance with the Canadian Revolving Lender’s
standard schedule for such charges in effect at the time of such issuance,
amendment, transfer or drawing, as the case may be; and

     (C) a fronting fee computed at the rate agreed to by the Borrower and
the Canadian Revolving Lender, on the daily average face amount of each
outstanding Canadian Letter of Credit issued by the Canadian Revolving
Lender, such fee to be due and payable in arrears on and through the last
day of each fiscal quarter of the Borrower, on the Termination Date and on
the expiration of the last outstanding Canadian Letter of Credit.

     (ii) The Canadian Subsidiary Borrower agrees to pay to the Canadian Revolving
Lender in respect of all Canadian Letters of Credit outstanding, a commission on the
maximum amount available from time to time to be drawn under such outstanding
Canadian Letters of Credit calculated at a rate per annum equal to the applicable
LIBOR Spread from time to time in effect hereunder on each Canadian Letter of
Credit. Such

 

44

commission shall be payable in arrears on and through the last day of
each fiscal quarter
of the Borrower and on the later of the Termination Date and the expiration of
the last outstanding Canadian Letter of Credit.

          (g) If by reason of (i) any change after the date hereof in Applicable Law, or in
the interpretation or administration thereof (including, without limitation, any request, guideline
or policy not having the force of law) by any Governmental Authority charged with the
administration or interpretation thereof, or (ii) compliance by the Canadian Revolving Lender with
any direction, request or requirement (whether or not having the force of law) issued after the
date hereof by any Governmental Authority or monetary authority (including any change whether or
not proposed or published prior to the date hereof):

     (A) the Canadian Revolving Lender shall be subject to any tax, levy,
charge or withholding of any nature (other than withholding tax imposed by
Canada or any political subdivision or taxing authority thereof or therein
or any other tax, levy, charge or withholding (i) that is measured with
respect to the overall net income of the Canadian Revolving Lender (or is
imposed in lieu of a tax on net income) or of a Lending Office of the
Canadian Revolving Lender, and that is imposed by the jurisdiction in which
the Canadian Revolving Lender is incorporated, or in which such Lending
Office is located, managed or controlled or in which the Canadian Revolving
Lender has its principal office (or any political subdivision or taxing
authority thereof or therein) or (ii) that is imposed solely by reason of
the Canadian Revolving Lender failing to make a declaration of, or otherwise
to establish, non-residence, or to make any other claim for exemption, or
otherwise to comply with any certification, identification, information,
documentation or reporting requirements prescribed under the laws of the
relevant jurisdiction, in those cases where the Canadian Revolving Lender
may properly make the declaration or claim or so establish non-residence or
otherwise comply) or to any variation thereof or to any penalty with respect
to the maintenance or fulfillment of its obligations under this Section
2.25, whether directly or by such being imposed on or suffered by the
Canadian Revolving Lender;

     (B) any reserve, deposit or similar requirement is or shall be
applicable, imposed or modified in respect of any Canadian Letter of Credit
issued by the Canadian Revolving Lender; or

     (C) there shall be imposed on the Canadian Revolving Lender any other
condition regarding this Section 2.25, any Canadian Letter of Credit or any
participation therein;

and the result of the foregoing is directly or indirectly to increase the cost to any Canadian
Revolving Lender of issuing, making or maintaining any Canadian Letter of Credit, or to reduce the
amount receivable in respect thereof by the Canadian Revolving Lender, then and in any such case
the Canadian Revolving Lender may, at any time, notify the Canadian Subsidiary Borrower, and the
Canadian Subsidiary Borrower shall pay on demand such amounts as the Canadian Revolving Lender may
specify to be necessary to compensate the Canadian Revolving Lender for such additional cost or
reduced receipt. The determination by the Canadian Revolving Lender of any amount due pursuant to
this Section 2.25 as set forth in a certificate setting forth the calculation thereof in reasonable
detail shall, in the absence of manifest error, be final, conclusive and binding on all of the
parties hereto.

 

45

          (h) If at any time when an Event of Default shall have occurred and be continuing,
any Canadian Letters of Credit shall remain outstanding, then the Canadian Revolving Lender may, at
its sole
option, require the Canadian Subsidiary Borrower to deposit cash or Cash Equivalents in a
Canadian Cash Collateral Account in an amount equal to the full amount of the Canadian L/C Exposure
or to furnish other security acceptable to the Canadian Revolving Lender. Any amounts so delivered
pursuant to the preceding sentence shall be applied to reimburse the Canadian Revolving Lender for
the amount of any drawings honored under Canadian Letters of Credit issued by it; provided,
however, that if prior to the Termination Date, no Event of Default is then continuing, the
Canadian Revolving Lender shall return all of such collateral relating to such deposit to the
Canadian Subsidiary Borrower if requested by it.

          (i) If, at any time, the Dollar Equivalent Amount of the Canadian L/C Exposure
exceeds the Canadian Revolving Commitment, then the Canadian Revolving Lender may, at its option,
require the Canadian Subsidiary Borrower to deposit cash or Cash Equivalents in a Canadian Cash
Collateral Account in an amount sufficient to eliminate such excess or to furnish other security
for such excess acceptable to the Canadian Revolving Lender. Any amounts so delivered pursuant to
the preceding sentence shall be applied to reimburse the Canadian Revolving Lender for the amount
of any drawings honored under Canadian Letters of Credit; provided that if subsequent to
any such deposit such excess is reduced to an amount less than the portion of such deposited
amounts and no Default or Event of Default is then continuing, the Canadian Subsidiary Borrower
shall be entitled to receive such excess collateral if requested by it.

          (j) Upon the request of the Administrative Agent, the Canadian Revolving Lender
shall furnish to the Administrative Agent copies of any Canadian Letter of Credit issued by the
Canadian Revolving Lender and such related documentation as may be reasonably requested by the
Administrative Agent.

          (k) Upon the Closing Date, all Existing Canadian Letters of Credit shall be deemed
to have ceased to be outstanding under the Existing Canadian Credit Agreement and shall be deemed
instead to have been issued under this Agreement on the Closing Date and to be outstanding under
this Agreement; provided, however, that the foregoing shall not relieve the
Canadian Subsidiary Borrower of any liability it may have under or in respect of the Existing
Canadian Letters of Credit or modify or impair any rights of any other person under or in respect
of the Existing Canadian Letters of Credit.

          (l) The Borrower represents and warrants to the Administrative Agent and the
Canadian Revolving Lender that Schedule 2.25(l) to this Agreement sets forth a true and complete
listing of all Existing Canadian Letters of Credit.

          Notwithstanding the termination of the Commitments and the payment of the Loans, the
obligations of the Borrower under this Section 2.25 shall remain in full force and effect until the
Canadian Revolving Lender shall have been irrevocably released from its obligations with regard to
any and all Canadian Letters of Credit.

          SECTION 2.26.    Canadian Bankers’ Acceptances.

          (a) Subject to the terms and conditions of this Agreement, the Canadian Subsidiary
Borrower may present drafts for acceptance and purchase as Canadian B/As by the Canadian Revolving
Lender.

          (b) No Contract Period with respect to a Canadian B/A shall extend beyond the
Termination Date.

 

46

          (c) To facilitate extensions of credit under the Canadian Revolving Commitment by
way of Canadian B/As, the Canadian Subsidiary Borrower hereby appoints the Canadian Revolving
Lender as its attorney to sign and endorse on its behalf, in writing or by facsimile or mechanical
signature as and when deemed necessary by the Canadian Revolving Lender, blank forms of Canadian
B/As. In this respect, it is the Canadian Revolving Lender’s responsibility to maintain an
adequate supply of blank forms of Canadian B/As for acceptance under this Agreement. The Canadian
Subsidiary Borrower recognizes and agrees that all Canadian B/As signed and/or endorsed on their
behalf by the Canadian Revolving Lender shall bind the Canadian Subsidiary Borrower as fully and
effectually as if signed in the handwriting of and duly issued by the proper signing officers of
the Canadian Subsidiary Borrower. The Canadian Revolving Lender is hereby authorized to issue such
Canadian B/As endorsed in blank in such face amounts as may be determined by the Canadian Revolving
Lender; provided that the aggregate amount thereof is equal to the aggregate amount of
Canadian B/As required to be accepted and purchased by the Canadian Revolving Lender. The Canadian
Revolving Lender shall not be liable for any damage, loss or other claim arising by reason of any
loss or improper use of any such instrument except the gross negligence or willful misconduct of
the Canadian Revolving Lender or its officers, employees, agents or representatives. The Canadian
Revolving Lender shall maintain a record with respect to Canadian B/As (a) voided by it for any
reason, (b) accepted and purchased by it hereunder and (c) cancelled at their respective
maturities. The Canadian Revolving Lender further agrees to retain such records in the manner and
for the statutory periods provided in the various provincial or federal statutes and regulations
which apply to the Canadian Revolving Lender. The Canadian Revolving Lender agrees to provide such
records to the Canadian Subsidiary Borrower at the Canadian Subsidiary Borrower’s expense upon
request. On request by or on behalf of the Canadian Subsidiary Borrower, the Canadian Revolving
Lender shall cancel all forms of Canadian B/A which have been pre-signed or pre-endorsed on behalf
of the Canadian Subsidiary Borrower and which are held by the Canadian Revolving Lender and are not
required to be issued in accordance with the Canadian Subsidiary Borrower’s irrevocable notice.

          (d) Drafts of the Canadian Subsidiary Borrower to be accepted as Canadian B/As
hereunder shall be signed as set forth in this Section 2.26. Notwithstanding that any person whose
signature appears on any Canadian B/A may no longer be an authorized signatory for the Canadian
Revolving Lender or the Canadian Subsidiary Borrower at the date of issuance of a Canadian B/A,
such signature shall nevertheless be valid and sufficient for all purposes as if such authority had
remained in force at the time of such issuance and any such Canadian B/A so signed shall be binding
on the Canadian Subsidiary Borrower.

          (e) Any refinancing by way of a Canadian B/As shall be made in accordance with
Section 2.6 and Section 2.7.

          (f) Upon acceptance of a Canadian B/A by the Canadian Revolving Lender, the Canadian
Revolving Lender shall purchase, or arrange the purchase of, such Canadian B/A from the Canadian
Subsidiary Borrower at the Discount Rate applicable to such Canadian B/A and provide the Discount
Proceeds to the Canadian Subsidiary Borrower. The Acceptance Fee payable by the Canadian
Subsidiary Borrower to the Canadian Revolving Lender under Section 2.10 in respect of each Canadian
B/A accepted by the Canadian Revolving Lender shall be set off against the Discount Proceeds
payable by the Canadian Revolving Lender under this Section 2.26.

          (g) The Canadian Revolving Lender may at any time and from time to time hold, sell,
rediscount or otherwise dispose of any or all Canadian B/As accepted and purchased by it.

          (h) The Canadian Subsidiary Borrower waives presentment for payment and any other
defense to payment of any amounts due to the Canadian Revolving Lender in respect of a Canadian B/A
accepted and purchased by it pursuant to this Agreement which might exist solely by reason of such

 

47

Canadian B/A being held, at the maturity thereof, by the Canadian Revolving Lender in its own
right and the Canadian Subsidiary Borrower agrees not to claim any days of grace if the Canadian
Revolving Lender as holder sues the Canadian Subsidiary Borrower on the Canadian B/A for payment of
the amount payable by the Canadian Subsidiary Borrower thereunder. On the specified maturity date
of a Canadian B/A, or such earlier date as may be required or permitted pursuant to the provisions
of this Agreement, the Canadian Subsidiary Borrower shall pay the Canadian Revolving Lender the
full face amount of such Canadian B/A and after such payment, the Canadian Subsidiary Borrower
shall have no further liability in respect of such Canadian B/A and the Canadian Revolving Lender
shall be entitled to all benefits of, and be responsible for all payments due to third parties
under, such Canadian B/A.

          (i) If at any time when an Event of Default shall have occurred and be continuing,
any Canadian B/As shall remain outstanding, then the Canadian Revolving Lender may, at its sole
option, require the Canadian Subsidiary Borrower to deposit cash or Cash Equivalents in a Canadian
Cash Collateral Account in an amount equal to the aggregate amount of the full face amount of all
outstanding Canadian B/As; provided, however, that if prior to the Termination
Date, no Event of Default is then continuing, the Canadian Revolving Lender shall return all of
such collateral relating to such deposit to the Canadian Subsidiary Borrower if requested by it.

3. REPRESENTATIONS AND WARRANTIES OF BORROWER

          In order to induce the Lenders to enter into this Agreement and to make the Loans and
participate in the Letters of Credit 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 and the making of the Loans and issuance of
the Letters of Credit:

     SECTION 3.1.    Corporate Existence and Power.

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

     SECTION 3.2.    Corporate Authority and No Violation.

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

 

48

     SECTION 3.3.    Governmental and Other Approval and Consents.

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

     SECTION 3.4.    Financial Statements of Borrower.

          The (a) audited consolidated financial statements of the Borrower and its Consolidated
Subsidiaries as of December 31, 2003 and December 31, 2004, and (b) unaudited consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries as of September, 30 2005, in each case,
together with the related unaudited statements of income, shareholders’ equity and cash flows for
the nine-month period then ended fairly present the financial position of the Borrower and its
Consolidated Subsidiaries as at the dates indicated and the results of operations and cash flows
for the periods indicated in conformity with GAAP subject to normal year-end adjustments in the
case of such quarterly financial statements.

     SECTION 3.5.    No Material Adverse Change.

          Except for the Disclosed Matters, since December 31, 2004 there has been no material adverse
change in the business, assets, operations or condition, financial or otherwise, of the Borrower
and its Consolidated Subsidiaries taken as a whole; provided that the foregoing
representation is made solely as of the Closing Date.

     SECTION 3.6.    Copyrights, Patents and Other Rights.

          Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, service marks, copyrights, patents and other intellectual property material to its
business, and the use 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 (other than properties or assets owned by Bishop’s Gate Residential
Mortgage Trust), except for minor defects in title that do not interfere with its ability to
conduct its business as currently conducted or to utilize such properties for their intended
purposes, and all such properties and assets will be free and clear of Liens, except Permitted
Encumbrances.

     SECTION 3.8.    Litigation.

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

 

49

     SECTION 3.9.    Federal Reserve Regulations.

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

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

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

     SECTION 3.11.    Enforceability.

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

     SECTION 3.12.    Taxes.

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

     SECTION 3.13.    Compliance with ERISA.

          Each of the Borrower and its Subsidiaries is in compliance in all material respects with the
provisions of ERISA and the Code applicable to Plans, and the regulations and published
interpretations thereunder, if any, which are applicable to it and the applicable laws, rules and
regulations of any jurisdiction applicable to Plans. Neither the Borrower nor any of its
Subsidiaries has, with respect to any Plan, 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. No liability to the PBGC that is material to the Borrower and its Subsidiaries taken as a
whole has been, or to the Borrower’s best knowledge is reasonably expected to be, incurred with
respect to the Plans and there has been no Reportable Event and no other event or condition that
presents a material risk of termination of a Plan by the PBGC. Neither the Borrower nor any of its
Subsidiaries has engaged in a transaction which would result in the incurrence of a material
liability under Section 4069 of ERISA. As of the Closing Date, neither the Borrower nor any of its
Subsidiaries contributes to a Multiemployer Plan, and has not incurred any liability that would be
material to the Borrower and its Subsidiaries taken as a whole on account of a partial or complete
withdrawal (as defined in Sections 4203 and 4205 of ERISA, respectively) with respect to any
Multiemployer Plan.

     SECTION 3.14.    Disclosure.

     As of the Closing Date, neither this Agreement nor the Confidential Information Memorandum, 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. The Confidential Information Memorandum

 

50

contains certain projections relating to the Borrower and its Consolidated Subsidiaries. Such
projections are based on good faith estimates and assumptions believed to be reasonable at the time
made, provided, however, that the Borrower makes no representation or warranty that such
assumptions will prove in the future to be accurate or that the Borrower and its Consolidated
Subsidiaries will achieve the financial results reflected in such projections. At the Closing
Date, there is no fact known to the Borrower which, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.

     SECTION 3.15.    Environmental Liabilities.

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

4. CONDITIONS OF LENDING

     SECTION 4.1.    Conditions Precedent to Effectiveness.

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

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

          (b) Corporate Documents for the Borrower and the Canadian Subsidiary
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 and the Canadian Subsidiary
Borrower dated the date hereof and certifying (A) that attached thereto is a true and complete copy
of its certificate of incorporation and by-laws as in effect on the date of such certification; (B)
that attached thereto is a true and complete copy of resolutions adopted by its Board of Directors
authorizing the borrowings and other extensions of credit 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 of
its officers executing this Agreement or any other document delivered by it in connection herewith
(such certificate to contain a certification by another of its officers as to the incumbency and
signature of the officer signing the certificate referred to in this paragraph (b)).

          (c) Financial Statements. The Lenders shall have received the (i) audited
consolidated financial statements of the Borrower and its Consolidated Subsidiaries as of and for
the fiscal years ended December 31, 2003 and December 31, 2004 (as modified and updated by the
Disclosed Matters) and (ii) unaudited consolidated financial statements of the Borrower and its
Consolidated Subsidiaries for the nine-month period ended September 30, 2005.

          (d) Opinions of Counsel. The Administrative Agent shall have received the
favorable written opinions, dated as of the date hereof and addressed to the Administrative Agent
and the Lenders, of (i) internal counsel of PHH Corporation, (ii) Thacher, Proffitt & Wood LLP and
Blake, Cassells & Graydon LLP, substantially in the form of Exhibits A-1, A-2 and A-3 hereto
respectively.

 

51

          (e) Termination of Existing Revolving Credit Agreement. The commitments of
the lenders under the Existing Revolving Credit Agreement shall have been terminated, no extensions
of credit or interest thereon shall be outstanding or other amounts be due and owing thereunder,
and there shall not be outstanding any Existing Revolving Letters of Credit except for those shown
on Schedule 2.24(l) hereto.

          (f) Termination of Existing Canadian Credit Agreement. The commitments of
the lenders under the Existing Canadian Credit Agreement shall have been terminated, no extensions
of credit or interest thereon shall be outstanding or other amounts be due and owing thereunder,
and there shall not be outstanding any Existing Canadian Letters of Credit except for those shown
on Schedule 2.25(l) hereto.

          (g) No Material Adverse Change. The Administrative Agent shall be satisfied
that, except for the Disclosed Matters, no material adverse change shall have occurred with respect
to the business, assets, operations or condition, financial or otherwise, of the Borrower and its
Consolidated Subsidiaries, taken as a whole, since December 31, 2004.

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

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

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

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

     SECTION 4.2.    Conditions Precedent to Each Loan and Letter of Credit. The
obligation of the Lenders to make each Loan and of any Revolving Issuing Lender or the Canadian
Revolving Lender to issue or amend a Letter of Credit, including the initial Loan hereunder, is
subject to the following conditions precedent:

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

          (b) Representations and Warranties. The representations and warranties set
forth in Article 3 (other than those set forth in Section 3.5, which shall be deemed made only on
the Closing Date) and in the other Fundamental Documents shall be true and correct in all material
respects on and as of the date of each Borrowing or the issuance of a Letter of Credit 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

 

52

as of such date; provided that this condition shall
not apply to a Revolving Credit Borrowing which is solely refinancing outstanding Revolving Credit
Loans and which, after giving effect thereto, has not increased the aggregate amount of outstanding
Revolving Credit Loans.

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

          (d) Each Loan and Letter of Credit for a Subsidiary Borrower. The
representations and warranties contained in Section 3.1, 3.2 and 3.3 as to any Subsidiary Borrower
to which a Loan is to be made or for whose account a Letter of Credit is to be issued shall be true
and correct in all material respects on and as of the date of such Borrowing or issuance of a
Letter of Credit hereunder; 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.

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

5. AFFIRMATIVE COVENANTS

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

     SECTION 5.1.    Financial Statements, Reports, etc.

          Deliver to each Lender:

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

          (b) As soon as is practicable, but in any event within 60 days after the end of each
of the first three fiscal quarters of each fiscal year, either (i) the Form 10-Q filed by the
Borrower with the Securities and Exchange Commission or (ii) the unaudited consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries, as at the end of such fiscal quarter, and
the related unaudited statements of income and cash flows for such quarter and for the period from
the beginning of the then current fiscal

 

53

year to the end of such fiscal quarter and the
corresponding figures as of the end of the preceding fiscal year, and for the corresponding period
in the preceding fiscal year, in each case, together with a certificate (substantially in the form
of Exhibit C) signed by the chief financial officer, the chief accounting officer or a vice
president responsible for financial administration of the Borrower to the effect that such
financial statements, while not examined by independent public accountants, reflect, in his opinion
and in the opinion of the Borrower, all adjustments necessary to present fairly the financial
position of the Borrower and its Consolidated Subsidiaries, as the case may be, as at the end of
the fiscal quarter and the results of their operations for the quarter then ended in conformity
with GAAP consistently applied, subject only to year-end and audit adjustments and to the absence
of footnote disclosure;

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

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

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

     SECTION 5.2. Corporate Existence; Compliance with Statutes.

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

     SECTION 5.3. Insurance.

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

     SECTION 5.4. Taxes and Charges.

 

54

          Duly pay and discharge, or cause to be paid and discharged, before the same shall become
delinquent, all federal, state or local taxes, assessments, levies and other governmental charges,
imposed upon the Borrower or any of its Subsidiaries or their respective properties, sales and
activities, or any part thereof, or upon the income or profits therefrom, as well as all claims for
labor, materials, or supplies which if unpaid could reasonably be expected to result in a Material
Adverse Effect; provided that any such tax, assessment, charge, levy or claim need not be
paid if the validity or amount thereof shall currently be contested in good faith by appropriate
proceedings and if the Borrower shall have set aside on its books reserves (the presentation of
which is segregated to the extent required by GAAP) adequate with respect thereto if reserves shall
be deemed necessary by the Borrower in accordance with GAAP; and provided, further,
that the Borrower will pay all such taxes, assessments, levies or other
governmental charges forthwith upon the commencement of proceedings to foreclose any Lien
which may have attached as security therefor (unless the same is fully bonded or otherwise
effectively stayed).

     SECTION 5.5. ERISA Compliance and Reports.

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

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

          Maintain or cause to be maintained at all times true and complete books and records of its
financial operations (in accordance with GAAP) and 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

 

55

the Administrative Agent may deem appropriate for the purpose of
verifying the various reports delivered pursuant to this Agreement or for otherwise ascertaining
compliance with this Agreement.

     SECTION 5.7. Maintenance of Properties.

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

6. NEGATIVE COVENANTS

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

     SECTION 6.1. Limitation on Material Subsidiary Indebtedness.

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

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

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

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

          (d) Indebtedness of any Material Subsidiary of the Borrower issued and outstanding
prior to the date on which such Subsidiary became a Subsidiary of the Borrower (other than
Indebtedness issued in connection with, or in anticipation of, such Subsidiary becoming a
Subsidiary of the Borrower); provided that immediately prior and on a Pro Forma Basis after
giving effect to, such Person becoming a Subsidiary of the Borrower, no Default or Event of Default
shall occur or then be continuing and the aggregate principal amount of such Indebtedness, when
added to the aggregate outstanding principal amount of Indebtedness permitted by paragraphs (e) and
(f) below, shall not exceed $150,000,000;

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

          (f) other Indebtedness of any Material Subsidiary in an aggregate principal amount
which, when added to the aggregate outstanding principal amount of Indebtedness permitted by
paragraphs (d) and (e) above, does not exceed $150,000,000;

          (g) Indebtedness of Special Purpose Vehicle Subsidiaries incurred to finance
investment in lease agreements and vehicles by such Subsidiaries, so long as the lender (and any
other party) in

 

56

respect of such Indebtedness has recourse, if any, solely to the assets of such
Special Purpose Vehicle Subsidiary;

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

          (i) Indebtedness (other than Indebtedness of Asset Securitization Subsidiaries
incurred to finance asset securitization transactions permitted by this Agreement) consisting of
the obligation to repurchase mortgages and related assets or secured by mortgages and related
assets in connection with other mortgage warehouse financing arrangements, if the aggregate
principal amount of all such Indebtedness does not exceed $1,150,000,000;

          (j) Indebtedness incurred under the PHH Home Loans Credit Agreement, in an aggregate
principal amount not to exceed $300,000,000; and

          (k) Indebtedness of any Subsidiary Borrower incurred under this Agreement.

     SECTION 6.2. Limitation on Transactions with Affiliates.

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

     SECTION 6.3. Consolidation, Merger, Sale of Assets.

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

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

     SECTION 6.4. Limitations on Liens.

 

57

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

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

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

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

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

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

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

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

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

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

          (j) Liens securing indebtedness in respect of one or more asset securitization
transactions, which indebtedness is not reported on a consolidated balance sheet of the Borrower
and its
Subsidiaries, covering only the assets securitized in the asset securitization transaction
financed by such

 

58

indebtedness and the capital stock of any special purpose vehicle the sole purpose
of which is to effectuate such asset securitization transaction;

          (k) other Liens securing obligations having an aggregate principal amount not to
exceed $150,000,000;

          (l) Liens securing Indebtedness permitted by Section 6.1(j);

          (m) Liens on cash of Atrium Insurance Corporation in connection with its reinsurance
business;

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

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

     SECTION 6.5. Sale and Leaseback.

          Enter into any arrangement with any Person or Persons, whereby in contemporaneous transactions
the Borrower or any of its Subsidiaries sells essentially all of its right, title and interest in a
material asset and the Borrower or any of its Subsidiaries acquires or leases back the right to use
such property except that the Borrower or any of its Subsidiaries may enter into sale-leaseback
transactions relating to assets not in excess of $100,000,000 in the aggregate on a cumulative
basis, and except (a) the LEAF Trust Transaction; and (b) without limiting the foregoing clause
(a), any sale-leaseback transaction entered into in connection with an asset securitization
transaction the indebtedness or Indebtedness relating to which is permitted to be secured pursuant
to Section 6.4(k) or 6.4(n).

     SECTION 6.6. Consolidated Net Worth.

          Permit Consolidated Net Worth on the last day of any fiscal quarter to be less than the sum of
(i) $1,000,000,000 plus (ii) 25% of Consolidated Net Income, if positive, for each fiscal
quarter ended after December 31, 2004.

     SECTION 6.7. Ratio of Indebtedness To Tangible Net Worth.

          Permit, at any time, the ratio of Indebtedness of the Borrower and its Subsidiaries to
Tangible Net Worth to exceed 10.0 to 1.0.

     SECTION 6.8.    Accounting Practices.

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

     SECTION 6.9.    Restrictions Affecting Subsidiaries.

 

59

          Enter into, or suffer to exist, any Contractual Obligation with any Person, which prohibits or
limits the ability of any Material Subsidiary (other than Special Purpose Vehicle Subsidiaries and
Asset Securitization Subsidiaries) to (a) pay dividends or make other distributions or pay any
Indebtedness owed to the Borrower or any other Subsidiary, (b) make loans or advances to the
Borrower or any other Subsidiary or (c) transfer any of its properties or assets to the Borrower or
any other Subsidiary; provided, however, that this Section 6.9 shall not apply to
(A) any tangible net worth requirements and/or restrictions applicable to PHH Home Loans, LLC,
pursuant to the PHH Home Loans Credit Agreement or (B) any restrictions imposed by Applicable Law,
including, without limitation, any Applicable Law restricting payment of dividends or other
distributions by Atrium Insurance Corporation.

7. EVENTS OF DEFAULT

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

          (a) any representation or warranty made or deemed made by the Borrower or any
Subsidiary Borrower in this Agreement or any other Fundamental Document or in connection with this
Agreement or the Borrowings (or other extensions of credit) 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 Letter of Credit
reimbursement obligations) or interest on any Loan or of any fees or other amounts payable by the
Borrower or any Subsidiary Borrower hereunder, when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration
thereof or otherwise, and in the case of payments of interest, such default shall continue
unremedied for five Business Days, and in the case of payments other than of any principal amount
of or interest on any Loan, such default shall continue unremedied for five Business Days after
receipt by the Borrower or any Subsidiary 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(c) (with respect to notice of Default or Events of
Default) or Article 6;

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

          (e) (i) default in payment shall be made with respect to any Indebtedness or
Interest Rate Protection Agreements of the Borrower or any of its Subsidiaries (other than
Securitization Indebtedness) where the amount or amounts of such Indebtedness exceeds $25,000,000
(or its equivalent thereof in any other currency) in the aggregate; or (ii) default in payment or
performance shall be made with respect to any Indebtedness or Interest Rate Protection Agreements
of the Borrower or any of its Subsidiaries (other than Securitization Indebtedness) where the
amount or amounts of such Indebtedness or Interest Rate Protection Agreements exceeds $25,000,000
(or its equivalent thereof in any other currency) in the aggregate, if the effect of such default
is to result in the acceleration of the maturity of such Indebtedness or Interest Rate Protection
Agreement; or (iii) any other circumstance shall arise (other than the mere passage of time) by
reason of which the Borrower or any Subsidiary of the Borrower is required to

 

60

redeem or repurchase,
or offer to holders the opportunity to have redeemed or repurchased, any such Indebtedness or
Interest Rate Protection Agreement (other than Securitization Indebtedness) where the amount or
amounts of such Indebtedness or Interest Rate Protection Agreement exceeds $25,000,000 (or its
equivalent thereof in any other currency) in the aggregate; provided that clause (iii)
shall not apply to secured Indebtedness or Interest Rate Protection Agreement that becomes due as a
result of a voluntary sale of the property or assets securing such Indebtedness or Interest Rate
Protection Agreement or Indebtedness that is redeemed or repurchased at the option of the Borrower
or any of its Subsidiaries and provided, further, that clauses (ii) and (iii) shall
not apply to any Indebtedness or Interest Rate Protection Agreement of any Subsidiary issued and
outstanding prior to the date such Subsidiary became a Subsidiary of the Borrower (other than
Indebtedness or Interest Rate Protection Agreement issued in connection with, or in anticipation
of, such Subsidiary becoming a Subsidiary of the Borrower) if such default or circumstance arises
solely as a result of a “change of control” provision applicable to such Indebtedness or Interest
Rate Protection Agreement which becomes operative as a result of the acquisition of such Subsidiary
by the Borrower or any of its Subsidiaries;

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

          (g) any involuntary case, proceeding or other action against the Borrower or any of
its Material Subsidiaries shall be commenced seeking to have an order for relief entered against it
as debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, liquidation, dissolution or composition of it or its debts under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver,
trustee, custodian or other similar official for it or for all or any substantial part of its
property, and such case, proceeding or other action (i) results in the entry of any order for
relief against it or (ii) shall remain undismissed for a period of sixty (60) days;

          (h) the occurrence of a Change in Control;

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

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

 

61

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

8. THE ADMINISTRATIVE AGENT AND EACH REVOLVING ISSUING LENDER

     SECTION 8.1. Administration by Administrative Agent.

          The general administration of the Fundamental Documents and any other documents contemplated
by this Agreement shall be by the Administrative Agent or its designees as provided for herein.
Each of the Lenders hereby irrevocably authorizes the Administrative Agent, at its discretion, to
take or refrain from taking such actions as agent on its behalf and to exercise or refrain from
exercising such powers under the Fundamental Documents 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.

     SECTION 8.2.  Advances and Payments.

          (a) On the date of each Loan, the Administrative Agent shall be authorized (but not
obligated) to advance, for the account of each of the applicable Lenders, the amount of the Loan to
be made by it in accordance with this Agreement. Each of the Lenders hereby authorizes and
requests the 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 (or such other equivalent source of funds, as determined by the
Administrative Agent, in respect of Loans denominated in a currency other than Dollars) for the
period until such Lender makes such amount immediately available to the Administrative Agent.
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

 

62

unreimbursed advance amount (plus any
accrued, but unpaid interest at the rate per annum equal to the interest rate applicable to such
Loan) to the Administrative Agent.

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

     SECTION 8.3. Sharing of Setoffs and Cash Collateral.

          Each of the Revolving Lenders agrees that if it shall, through the operation of Section 2.20,
Section 2.24(h) or Section 2.24(i) or the exercise of a right of banker’s lien, setoff or
counterclaim against the Borrower, including, but not limited to, a secured claim under Section 506
of Title 11 of the United States Code or other security or interest arising from, or in lieu of,
such secured claim and received by such Revolving Lender under any applicable bankruptcy,
insolvency or other similar law, or otherwise (other than pursuant to Section 2.16(f)), obtain
payment in respect of its Revolving Credit Loans or participations in Revolving Letters of Credit
as a result of which the unpaid portion of its Revolving Credit Loans or Revolving L/C Exposure is
proportionately less than the unpaid portion of any of the other Revolving Lenders (a) it shall
promptly purchase at par (and shall be deemed to have thereupon purchased) from such other
Revolving Lenders a participation in the Revolving Credit Loans or Revolving L/C Exposure of such
other Revolving Lenders, so that the aggregate unpaid principal amount of each of the Revolving
Lenders’ Revolving Credit Loans and Revolving L/C Exposure and its participation in Revolving
Credit Loans and Revolving L/C Exposure of the other Revolving Lenders shall be in the same
proportion to the aggregate unpaid principal amount of all Revolving Credit Loans and Revolving L/C
Exposure then outstanding as the principal amount of its Revolving Credit Loans and Revolving L/C
Exposure prior to the obtaining of such payment was to the principal amount of all Revolving Credit
Loans and Revolving L/C Exposure 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
Revolving 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.

     SECTION 8.5.  Liability of the Administrative Agent and Each Revolving Issuing
Lender.

          (a) The Administrative Agent or any Revolving Issuing Lender, 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, the Revolving Issuing Lenders 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

 

63

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

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

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

     SECTION 8.6. Reimbursement and Indemnification.

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

     SECTION 8.7. Rights of Administrative Agent.

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

 

64

     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 and participate in the Letters of Credit hereunder based on its own analysis of the
transactions contemplated hereby and of the creditworthiness of the Borrower and agrees that
neither the Administrative Agent nor any Revolving Issuing Lender shall bear responsibility
therefor.

     SECTION 8.9.  Notice of Transfer.

          The Administrative Agent and the Revolving Issuing Lenders 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 and
Letter of Credit reimbursement rights 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 10.3.

     SECTION 8.10. Successor Administrative Agent.

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

     SECTION 8.11.  Resignation of a Revolving Issuing Lender.

          Any Revolving Issuing Lender may resign at any time by giving written notice thereof to the
Lenders and the Borrower. Upon any such resignation, such Revolving Issuing Lender shall be
discharged from any duties and obligations under this Agreement in its capacity as a Revolving
Issuing Lender with regard to Revolving Letters of Credit not yet issued. After any retiring
Revolving Issuing Lender’s resignation hereunder as a Revolving Issuing Lender, the provisions of
this Agreement shall continue to inure to its benefit as to any outstanding Revolving Letters of
Credit or otherwise with regard to outstanding Revolving L/C Exposure and any actions taken or
omitted to be taken by it while it was a Revolving Issuing Lender under this Agreement.

     SECTION 8.12.  Syndication Agent and Co-Documentation Agents.

          The Syndication Agent and the Co-Documentation Agents shall not have any duties or
responsibility hereunder in their capacity as such.

 

65

9. PARENT GUARANTY OF SUBSIDIARY BORROWER OBLIGATIONS

     SECTION 9.1.  Guaranty.

          (a) The Borrower hereby unconditionally and irrevocably guaranties to the
Administrative Agent, for the ratable benefit of the Lenders and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and performance by any
Subsidiary Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the
Subsidiary Borrower Obligations.

          (b) The Borrower further agrees to pay any and all expenses (including, without
limitation, all fees and disbursements of counsel) which may be paid or incurred by the
Administrative Agent, any Revolving Issuing Lender or any Lender in enforcing, or obtaining advice
of counsel in respect of, any rights with respect to, or collecting, any or all of the Subsidiary
Borrower Obligations and/or enforcing any rights with respect to, or collecting against, any
Subsidiary Borrower under this Parent Guaranty; provided, however, that the
Borrower shall not be liable for the fees and expenses of more than one separate firm for the
Lenders or any Revolving Issuing Lender (unless there shall exist an
actual conflict of interest among such Persons, and in such case, not more than two separate
firms) 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 or proceeding
effected without the Borrower’s written consent. This Parent Guaranty shall remain in full force
and effect until the Subsidiary Borrower Obligations are paid in full and the Commitments are
terminated.

          (c) No payment or payments made by any Subsidiary Borrower or any other Person or
received or collected by the Administrative Agent or any Lender from any Subsidiary Borrower or any
other Person by virtue of any action or proceeding or any set-off or appropriation or application,
at any time or from time to time, in reduction of or in payment of the Subsidiary Borrower
Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the
Borrower hereunder which shall, notwithstanding any such payment or payments (other than payments
made by the Borrower in respect of the Subsidiary Borrower Obligations or payments received or
collected from the Borrower in respect of the Subsidiary Borrower Obligations), remain liable for
the Subsidiary Borrower Obligations until the Subsidiary Borrower Obligations are paid in full and
the Commitments are terminated.

          (d) The Borrower agrees that whenever, at any time, or from time to time, it shall
make any payment to the Administrative Agent or any Lender on account of its liability hereunder,
it will notify the Administrative Agent and such Lender in writing that such payment is made under
this Parent Guaranty for such purpose.

     SECTION 9.2.  No Subrogation.

          Notwithstanding any payment or payments made by the Borrower under this Parent Guaranty, or
any set-off or application of funds of the Borrower by the Administrative Agent or any Lender, the
Borrower shall not be entitled to be subrogated to any of the rights of the Administrative Agent or
any Lender against any Subsidiary Borrower or against any collateral security or guaranty or right
of offset held by the Administrative Agent or any Lender for the payment of the Subsidiary Borrower
Obligations, nor shall the Borrower seek or be entitled to seek any contribution or reimbursement
from any Subsidiary Borrower in respect of payments made by the Borrower under this Parent
Guaranty, until all amounts owing to the Administrative Agent and the Lenders by the Subsidiary
Borrowers on account of the Subsidiary Borrower Obligations are paid in full and the Commitments
are terminated. If any amount shall be paid to the Borrower on account of such subrogation rights
at any time when all of the Subsidiary Borrower Obligations shall not have been paid in full, such
amount shall be

 

66

held by the Borrower in trust for the Administrative Agent and the Lenders,
segregated from other funds of the Borrower, and shall, forthwith upon receipt by the Borrower, be
turned over to the Administrative Agent in the exact form received by the Borrower (duly indorsed
by the Borrower to the Administrative Agent, if required), to be applied against the Subsidiary
Borrower Obligations, whether matured or unmatured, in such order as the Administrative Agent may
determine.

     SECTION 9.3. Amendments, etc. with respect to the Obligations; Waiver of
Rights.

          The Borrower shall remain obligated hereunder notwithstanding that, without any reservation of
rights against the Borrower, and without notice to or further assent by the Borrower, any demand
for payment of any of the Subsidiary Borrower Obligations made by the Administrative Agent or any
Lender may be rescinded by the Administrative Agent or such Lender, and any of the Subsidiary
Borrower Obligations continued, and the Subsidiary Borrower Obligations, or the liability of any
other
party upon or for any part thereof, or any collateral security or guaranty therefor or right
of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative
Agent or any Lender, and this Agreement and any other documents executed and delivered in
connection herewith may be amended, modified, supplemented or terminated, in whole or in part, as
the Administrative Agent (or the requisite Lenders, as the case may be) may deem advisable from
time to time, and any collateral security, guaranty or right of offset at any time held by the
Administrative Agent or any Lender for the payment of the Subsidiary Borrower Obligations may be
sold, exchanged, waived, surrendered or released. Neither the Administrative Agent nor any Lender
shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as
security for the Subsidiary Borrower Obligations or for the Parent Guaranty under this Article 9 or
any property subject thereto. When making any demand hereunder against the Borrower, the
Administrative Agent or any Lender may, but shall be under no obligation to, make a similar demand
on any Subsidiary Borrower, and any failure by the Administrative Agent or any Lender to make any
such demand or to collect any payments from any Subsidiary Borrower or any release of any
Subsidiary Borrower shall not relieve the Borrower of its obligations or liabilities hereunder, and
shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of
the Administrative Agent or any Lender against the Borrower. For the purposes hereof “demand”
shall include the commencement and continuance of any legal proceedings.

     SECTION 9.4. Parent Guaranty Absolute and Unconditional.

          The Borrower waives any and all notice of the creation, renewal, extension or accrual of any
of the Subsidiary Borrower Obligations and notice of or proof of reliance by the Administrative
Agent or any Lender upon this Parent Guaranty or acceptance of the Parent Guaranty under this
Article 9; the Subsidiary Borrower Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the Parent Guaranty under this Article 9; and all dealings between any Subsidiary Borrower and
the Borrower, on the one hand, and the Administrative Agent and the Lenders, on the other, shall
likewise be conclusively presumed to have been had or consummated in reliance upon the Parent
Guaranty under this Article 9. The Borrower waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon any Subsidiary Borrower or the Borrower with
respect to the Subsidiary Borrower Obligations. The Parent Guaranty under this Article 9 shall be
construed as a continuing, absolute and unconditional guaranty of payment without regard to (a) the
validity or enforceability of this Agreement, any of the Subsidiary Borrower Obligations or any
other collateral security therefor or guaranty or right of offset with respect thereto at any time
or from time to time held by the Administrative Agent or any Lender, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any time be available to
or be asserted by any Subsidiary Borrower against the Administrative Agent or any Lender, or (c)
any other circumstance whatsoever (with or without notice to or knowledge

 

67

of such Subsidiary
Borrower or the Borrower) which constitutes, or might be construed to constitute, an equitable or
legal discharge of a Subsidiary Borrower for its Subsidiary Borrower Obligations, or of the
Borrower under the Parent Guaranty under this Article 9, in bankruptcy or in any other instance.
When pursuing its rights and remedies hereunder against the Borrower, the Administrative Agent and
any Lender may, but shall be under no obligation to, pursue such rights and remedies as it may have
against any Subsidiary Borrower or any other Person or against any collateral security or guaranty
for the Subsidiary Borrower Obligations or any right of offset with respect thereto, and any
failure by the Administrative Agent or any Lender to pursue such other rights or remedies or to
collect any payments from any Subsidiary Borrower or any such other Person or to realize upon any
such collateral security or guaranty or to exercise any such right of offset, or any release of any
Subsidiary Borrower or any such other Person or of any such collateral security, guaranty or right
of offset, shall not relieve the Borrower
of any liability under this Parent Guaranty, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the Administrative Agent or
any Lender against the Borrower. The Parent Guaranty under this Article 9 shall remain in full
force and effect and be binding in accordance with and to the extent of its terms upon the Borrower
and its successors and assigns, and shall inure to the benefit of the Administrative Agent and the
Lenders, and their respective successors, indorsees, transferees and assigns, until all the
Subsidiary Borrower Obligations and the obligations of the Borrower under the Parent Guaranty under
this Article 9 shall have been satisfied by payment in full and the Commitments shall be
terminated, notwithstanding that from time to time during the term of this Agreement any Subsidiary
Borrower may be free from any Subsidiary Borrower Obligations.

     SECTION 9.5.  Reinstatement.

          The Parent Guaranty under this Article 9 shall continue to be effective, or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any of the Subsidiary Borrower
Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or
any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Subsidiary Borrower or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, any Subsidiary Borrower or any substantial part
of its property, or otherwise, all as though such payments had not been made.

10. MISCELLANEOUS

     SECTION 10.1. 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, (i) if to the
Administrative Agent or JPMorgan Chase Bank, N.A. to it at 1111 Fannin, 10th floor,
Houston, Texas 77002 (Telephone: (713) 750-2885; Telecopy: (713) 750-2932), Attention: Leah Hughes,
with a copy to Dakisha Allen, at 1111 Fannin, 10th floor, Houston, Texas 77002
(Telephone: (713) 750-3541; Telecopy: (713) 750-2932), (ii) if to the Canadian Revolving Lender, to
it at Attention: John Hall, The Bank of Nova Scotia, WBO Loan Operations, 720 King Street West,
2nd floor, Toronto, Ontario M5V 2T3 (Telecopy: (416) 866-5991), with a copy to the
Administrative Agent, (iii) if to the Borrower or any Subsidiary Borrower, to it at 3000 Leadenhall
Road, Mount Laurel, New Jersey 08054, Attention: Assistant Treasurer, with a copy to the General
Counsel, or (iv) if to a Lender, to it at its address set forth on Schedule 1.1A (or in its
Assignment and Acceptance or other agreement pursuant to which it became a Lender hereunder), or
such other address as such party may from time to time designate by giving written notice to the
Borrower, the Administrative Agent and the Revolving Issuing Lender. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall

 

68

be deemed to have been given on the fifth Business Day after the date when sent by registered or
certified mail, postage prepaid, return receipt requested, if by mail, or when delivered to the
telegraph company, charges prepaid, if by telegram, or when receipt is acknowledged, if by any
telecopier or telegraphic communications equipment of the sender, in each case addressed to such
party as provided in this Section 10.1 or in accordance with the latest unrevoked written direction
from such party. Information required to be delivered hereunder may also be delivered by
electronic communication pursuant to procedures approved by the Borrower and the Administrative
Agent.

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

     SECTION 10.2. Survival of Agreement, Representations and Warranties, etc.

          All warranties, representations and covenants made by the Borrower or any Subsidiary 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 and the issuance of Letters of Credit herein
contemplated regardless of any investigation made by the Administrative Agent or the Lenders or on
their behalf and shall continue in full force and effect so long as any amount due or to become due
hereunder is outstanding and unpaid and so long as the Commitments have not been terminated. All
statements in any such certificate or other instrument shall constitute representations and
warranties by the Borrower or any Subsidiary Borrower making any such statement hereunder.

     SECTION 10.3. Successors and Assigns; Syndications; Loan Sales;
Participations.

          (a) Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and assigns of such party (provided
that neither the Borrower, nor any Subsidiary Borrower may assign its respective rights hereunder
without the prior written consent of all the Lenders), and all covenants, promises and agreements
by, or on behalf of, the Borrower and any Subsidiary 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, the Revolving Issuing Lenders (in respect of the Revolving Commitments), the
Canadian Issuing Lender (in respect of the Canadian Revolving Commitment) and the Borrower, which
consents shall not be unreasonably withheld or delayed) assign to one or more banks or other
financial institutions either (i) all or a portion of its interests, rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitments and the same
portion of the Loans at the time owing to it and the interests in Letters of Credit held by it) (a
“Ratable Assignment”) or (ii) all or a portion of its rights and obligations under and in
respect of (A) its Commitments under this Agreement and the same portion of the Loans (other than
Competitive Loans) at the time owing to it or (B) the Competitive Loans at the time owing to it (a
“Non-Ratable Assignment”); provided that (1) each Non-Ratable Assignment shall be
of a constant, and not a varying, percentage of all of the assigning Lender’s rights and
obligations in respect of the Loans and the Revolving Commitment (if applicable) which are the
subject of such assignment, (2) each Ratable Assignment shall be of a constant, and not a varying,
percentage of the assigning Lender’s rights and obligations under this Agreement, (3) the amount

 

69

of
the Revolving Commitment or Competitive Loans, as the case may be, of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance with respect to
such assignment is delivered to the Lender) shall be in a minimum Dollar Equivalent Amount of
$5,000,000 unless such assignment is an assignment of all of the assigning Lender’s rights and
obligations under this
Agreement or unless otherwise agreed by the Borrower and the Administrative Agent, (4) any
assignee or all or a portion of the Canadian Commitment or of Canadian Revolving Loans shall be an
Eligible Canadian Revolving Bank and (5) 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 and a processing and recordation fee of $3,500. Upon such
execution, delivery, acceptance and recording, and from and after the effective date specified in
each Assignment and Acceptance, which effective date shall be not earlier than five Business Days
after the date of acceptance and recording by the Administrative Agent, (x) the assignee thereunder
shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder and (y) the assigning Lender thereunder shall, to the
extent provided in such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion
of the assigning Lender’s rights and obligations under this Agreement, such assigning Lender shall
cease to be a party hereto, but shall continue to be entitled to the indemnity and expense
reimbursement provisions for the period prior to such Assignment and Acceptance).

          (c) Notwithstanding the other provisions of this Section 10.3, each Lender may at
any time without the consent of the Borrower make an assignment of all or any part of its
interests, rights and obligations under this Agreement to any Lender or Affiliate of a Lender or,
if an Event of Default has occurred and is continuing, any other assignee.

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

 

70

          (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 10.1, 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, and participations in
Letters of Credit of, 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, any Subsidiary Borrower, the Administrative
Agent, the Revolving Issuing Lenders and the Lenders may 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. 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 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 B 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.

          (g) Each of the Lenders may without the consent of the Borrower, any Subsidiary
Borrower, the Administrative Agent or any Revolving Issuing Lender sell participations to one or
more banks or other financial institutions (a “Participant”) in all or a portion of its
rights and obligations under this Agreement (including, without limitation, all or a portion of its
Revolving Commitment and the Loans owing to it and the participations in Letters of Credit held by
it); provided that (i) any such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such participant shall not be granted any voting rights under this Agreement,
except with respect to matters requiring the consent of each of the Lenders hereunder, (iii) any
such Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations, (iv) the participating banks or other entities shall be entitled to the cost
protection provisions contained in Sections 2.15, 2.16 and 2.18 hereof but a participant shall not
be entitled to receive pursuant to such provisions an amount larger than its share of the amount to
which the Lender granting such participation would have been entitled to receive, and (v) the
Borrower, any applicable Subsidiary 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 10.3, disclose to the assignee or participant
or proposed assignee or participant, any information relating to the Borrower or any Subsidiary
Borrower furnished to the Administrative Agent or the Lenders by or on behalf of the Borrower and
such Subsidiary Borrower.

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

          (j) The Borrower and each Subsidiary Borrower, upon receipt of written notice from
the relevant Lender, agrees to issue promissory notes evidencing Loans made hereunder to any Lender
requiring promissory notes to facilitate transactions of the type described in paragraph (i) above.

 

71

     SECTION 10.4.  Expenses; Documentary Taxes.

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

     SECTION 10.5.  Indemnity.

          Further, by the execution hereof, the Borrower and each Subsidiary Borrower agrees to
indemnify and hold harmless the Agents, the Joint Lead Arrangers, the Revolving Issuing Lenders and
the Lenders and their respective directors, officers, employees and agents (each, an
“Indemnified Party”) from and against any and all expenses (including reasonable fees and
disbursements of counsel), losses, claims, damages and liabilities arising out of any claim,
litigation, investigation or proceeding (regardless of whether any such Indemnified Party is a
party thereto) in any way relating to the transactions contemplated hereby, but excluding therefrom
all expenses, losses, claims, damages, and liabilities to the extent arising out of or resulting
from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification,
provided that neither the Borrower nor any Subsidiary Borrower shall be liable for the fees
and expenses of more than one separate firm for all such Indemnified Parties (unless there shall
exist an actual conflict of interest among such Persons, and in such case, not more than two
separate firms) in connection with any one such action or any separate but substantially similar or
related actions in the same jurisdiction, nor shall the Borrower or any Subsidiary Borrower be
liable for any settlement of any proceeding effected without the Borrower’s written consent, and
provided, further, that this Section 10.5 shall not be construed to expand the
scope of the reimbursement obligations specified in Section 10.4. The obligations of the Borrower
and any Subsidiary Borrower under this Section 10.5 shall be joint and several obligations and
shall survive the termination of this Agreement and/or payment of the Loans and/or the expiration
of the Letters of Credit.

     SECTION 10.6.  CHOICE OF LAW.

          THIS AGREEMENT HAS 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

 

72

BE PERFORMED WHOLLY
WITHIN SUCH STATE AND, IN THE CASE OF PROVISIONS RELATING TO INTEREST RATES, ANY APPLICABLE LAWS OF
THE UNITED STATES.

     SECTION 10.7.  No Waiver.

          No failure on the part of the Administrative Agent, any Revolving Issuing Lender or any Lender
to exercise, and no delay in exercising, any right, power or remedy hereunder or with regard to the
Letters of Credit 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 10.8. Extension of Maturity.

          Except as otherwise specifically provided in Article 7, should any payment of principal of or
interest on the Loans made hereunder 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 10.9.  Amendments, etc.

          (a) Except as set forth in Section 10.9(b), no modification, amendment or waiver of
any provision of this Agreement or any other Fundamental Document, and no consent to any departure
by the Borrower or any Subsidiary Borrower herefrom or therefrom, shall in any event be effective
unless the same shall be in writing and signed or consented to in writing by the Required Lenders,
and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given; provided that no such modification or amendment shall without the
written consent of each Lender affected thereby (x) increase or extend the expiration date of the
Revolving Commitment of a Lender or postpone or waive any scheduled reduction in the Revolving
Commitments, (y) alter the stated maturity or principal amount of any installment of any Loan, or
due date of any Letter of Credit reimbursement obligation or decrease the rate of interest payable
thereon, or the rate at which the Facility Fees the Utilization Fees or letter of credit fees are
paid or (z) waive a default under Section 7(b) with respect to a scheduled principal installment of
any Loan or payment of a Letter of Credit reimbursement obligation or scheduled payment of interest
or fees; provided further, that no such modification or amendment shall without the
written consent of all of the Lenders (i) amend or modify any provision of this Agreement which
provides for the unanimous consent or approval of the Lenders, (ii) amend this Section 10.9 (except
as provided in Section 10.9(b)) or the definition of Required Lenders or Supermajority Lenders or
(iii) release the Borrower from its obligations under the Parent Guaranty. No such amendment or
modification may adversely affect the rights and obligations of the Administrative Agent or any
Revolving Issuing Lender hereunder without its prior written consent. No such amendment or
modification of the provisions relating solely to the Canadian Revolving Commitment and the
extensions of credit thereunder shall be permitted without the prior written consent of the
Canadian Revolving Lender; provided that any such amendment or modification shall be
permitted upon the written consent of
the Canadian Revolving Lender, the Administrative Agent, the Borrower and the Canadian
Subsidiary Borrower; provided further, that any amendment or modification of this
Agreement not directly affecting the Canadian Revolving Lender, the Canadian Revolving Commitment
or the extensions or credit made thereunder shall be permitted without regard to the percentage of
the aggregate Commitments constituting the Canadian Revolving Commitment or the extensions of
credit outstanding thereunder. No notice to or demand on the Borrower or any Subsidiary Borrower
shall entitle the Borrower or such Subsidiary Borrower to any other or further notice or demand in
the same, similar or other circumstances.

 

73

          (b) This Agreement may be amended without consent of the Lenders, so long as no
Default or Event of Default shall have occurred and be continuing, as follows:

     (i) This Agreement will be amended to designate any Subsidiary of the Borrower
as a Subsidiary Borrower upon (w) ten Business Days prior notice to the Lenders
(such notice to contain the name, primary business address and taxpayer
identification number of such Subsidiary), (x) the execution and delivery by the
Borrower, such Subsidiary and the Administrative Agent of a Joinder Agreement,
substantially in the form of Exhibit H (a “Joinder Agreement”), providing
for such Subsidiary to become a Subsidiary Borrower, (y) the agreement and
acknowledgment by the Borrower and each other Subsidiary Borrower that the Parent
Guaranty contained in Article 9 covers the Obligations of such Subsidiary and (z)
the delivery to the Administrative Agent of (1) corporate or other applicable
resolutions, other corporate or other applicable documents, certificates and legal
opinions in respect of such Subsidiary substantially equivalent to comparable
documents delivered on the Closing Date and (2) such other documents with respect
thereto as the Administrative Agent shall reasonably request.

     (ii) This Agreement will be amended to remove any Subsidiary as a Subsidiary
Borrower upon execution and delivery by the Borrower to the Administrative Agent of
a written notification to such effect and repayment in full of all Loans made to
such Subsidiary Borrower, cash collateralization of all reimbursement obligations in
respect of any Letters of Credit issued for the account of such Subsidiary Borrower
and repayment in full of all other amounts owing by such Subsidiary Borrower under
this Agreement (it being agreed that any such repayment shall be in accordance with
the other terms of this Agreement); provided, however, that no such
amendment shall affect or limit the Borrower’s obligations under the Parent
Guaranty.

     (iii) As soon as practicable and in any event within five Business Days after
notice is given pursuant to Section 10(b)(i) designating a Subsidiary as a
Subsidiary Borrower hereunder that is organized under the laws of a jurisdiction
other than of the United States or a political subdivision thereof, any Lender that
is prohibited by Applicable Law to make extensions of credit to such Subsidiary
Borrower (any such Lender, a “Protesting Lender”) shall so notify the
Administrative Agent and the Borrower. Upon receipt of such notice and prior to the
date that extensions of credit hereunder may be made to such Subsidiary, the
Borrower shall (A) arrange for an assignment of such Protesting Lender’s Commitments
and its interest in any extensions of credit outstanding thereunder or (B) terminate
the Commitments of such Protesting Lender; provided that (1) at the request
of the Borrower and at the Borrower’s sole expense, such Protesting Lender shall use
its commercially reasonable efforts to facilitate an assignment pursuant to
subparagraph (A) above and (2) in the event that such Protesting Lender’s
Commitments are assigned or terminated pursuant to this Section 10.9(b)(iii), the
Borrower shall pay, or shall cause any applicable Subsidiary Borrower to
pay, to such Protesting Lender on demand in immediately available funds an
amount equal to the principal amount of Loans and/or Letter of Credit reimbursement
obligations, accrued interest thereon, accrued fees and all other amounts owed to it
by the Borrower or any Subsidiary Borrower hereunder; provided that in the
case of an assignment pursuant to subparagraph (A) above, the Borrower and any
Subsidiary Borrower shall not be obligated to pay to the Protesting Lender amounts
in respect of the principal amount of Loans or any Letter of Credit reimbursement
obligations.

 

74

     SECTION 10.10.  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 10.11.  SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

          (a) THE BORROWER AND EACH SUBSIDIARY 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, A REVOLVING ISSUING LENDER OR A LENDER.
THE BORROWER AND EACH SUBSIDIARY 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 AND EACH SUBSIDIARY BORROWER HEREBY
CONSENTS TO SERVICE OF PROCESS BY MAIL AT ITS ADDRESS TO WHICH NOTICES ARE TO BE GIVEN PURSUANT TO
SECTION 10.1. THE BORROWER AND EACH SUBSIDIARY 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, EACH REVOLVING ISSUING LENDER AND THE LENDERS. FINAL JUDGMENT AGAINST THE BORROWER AND EACH
SUBSIDIARY BORROWER IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN ANY OTHER JURISDICTION (A) BY SUIT, ACTION OR PROCEEDING ON THE JUDGMENT, A CERTIFIED OR TRUE
COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND THE AMOUNT OF INDEBTEDNESS OR LIABILITY
OF THE SUBMITTING PARTY THEREIN DESCRIBED OR (B) IN ANY OTHER MANNER PROVIDED BY, OR
PURSUANT TO, THE LAWS OF SUCH OTHER JURISDICTION, PROVIDED THAT THE ADMINISTRATIVE
AGENT OR A REVOLVING ISSUING LENDER OR A LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER
JUDICIAL PROCEEDINGS AGAINST THE BORROWER AND EACH SUBSIDIARY BORROWER OR ANY OF THEIR RESPECTIVE
ASSETS IN ANY STATE OR FEDERAL COURT OF THE UNITED STATES OR OF ANY COUNTRY OR PLACE WHERE THE
BORROWER, ANY SUBSIDIARY 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,

 

75

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 10.11(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 10.11(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 10.12.  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 10.13.  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 10.14.  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 Canadian Subsidiary Borrower, the Administrative Agent or any Lender (other than the provisions
of the letter agreements dated November 30, 2005, among the Borrower, the Agents and the Joint Lead
Arrangers, relating to fees and expenses and syndication issues) prior to the execution of this
Agreement which relate to Loans to be made or the Letters of Credit to be issued hereunder shall be
replaced by the terms of this Agreement.

     SECTION 10.15.  Foreign Currency Judgments.

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

          (b) The obligations of the Borrower in respect of any sum due hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with this Agreement (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by any Lender (or
agent acting on its behalf) (the “Applicable Creditor”) of any sum adjudged to be so due in
the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in
the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount
of the Agreement Currency so purchased is less than the sum originally due to the Applicable
Creditor in the Agreement Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss,
provided, that if the amount of the Agreement Currency so purchased exceeds the sum
originally due to the Applicable Creditor, the Applicable Creditor agrees to remit such excess to
the Borrower. The obligations of the Borrower contained in this Section 10.15 shall survive the

 

76

termination of this Agreement and the payment of all amounts owing hereunder. Each Borrower shall
repay each Loan made to it, and interest thereon, in the Currency in which such Loan is
denominated.

     SECTION 10.16.  Language.

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

     SECTION 10.17.  Confidentiality.

          Each of the Administrative Agent and the Lenders agrees to keep confidential all non-public
information provided to it by the Borrower and its Subsidiaries pursuant to this Agreement that is
designated by the Borrower as confidential; provided that nothing herein shall prevent the
Administrative Agent or any Lender from disclosing any such information (a) to the Administrative
Agent, any other Lender or any affiliate of any Lender, (b) to any participant or assignee (each, a
“Transferee”) of such Lender or prospective Transferee which agrees to comply with the provisions
of this Section, (c) to any of its employees, directors, agents, attorneys, accountants and other
professional advisors, (d) upon the request or demand of any governmental or regulatory authority
having jurisdiction over it or its Affiliates, (e) in response to any order of any court or other
governmental authority or as may otherwise be required pursuant to any requirement of law, (f) if
requested or required to do so in connection with any litigation or similar proceeding, (g) which
has been publicly disclosed other than in breach of this Section 10.17, (h) to the National
Association of Insurance Commissioners or any similar organization or any nationally recognized
rating agency that requires access to information about a Lender’s investment portfolio in
connection with ratings issued with respect to such Lender or (i) in connection with the exercise
of any remedy hereunder or under any other Fundamental Document.

     SECTION 10.18.  USA PATRIOT Act.

          Each Lender hereby notifies the Borrower and each Subsidiary Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
the Borrower and any Subsidiary Borrower which information includes the name and address of the
Borrower and other information that will allow such Lender to identify the Borrower and/or such
Subsidiary Borrower in accordance with the Act. The Borrower and each Subsidiary Borrower shall
promptly provide such information upon request by any Lender. In connection therewith, each Lender
hereby agrees that the confidentiality provisions set forth in Section 10.17 shall apply to any
non-public information provided to it by the Borrower and its Subsidiaries pursuant to this Section
10.18.

 

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

	 	 	 	 	 	 	 
	 	 	PHH CORPORATION  
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	Taxpayer ID:
	 
	 	 	 	 	 	 
	 	 	PHH VEHICLE MANAGEMENT SERVICES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	Taxpayer ID:
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Name:	 	 
	 
	 	 	 	 	 	 
	 	 	CITICORP USA, Inc.,

as Syndication Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Name:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA,

as a Co- Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as a Co- Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Name:	 	 

 

 

Signature Page to 2006

PHH Corporation Amended and Restated

Competitive Advance and Revolving Credit Agreement

	 	 	 	 	 
	 	[INSERT LENDER NAME]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:EX-10.66

 

Exhibit 10.66

 

 

TRADEMARK LICENSE AGREEMENT

Between

TM
ACQUISITION CORP.

COLDWELL BANKER REAL ESTATE CORPORATION

ERA FRANCHISE SYSTEMS, INC.

And

PHH HOME LOANS, LLC

Dated as of January 31, 2005

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE I DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	1.01
	 	Defined Terms	 	 	1	 
	 
	 	 	 	 	 	 
	1.02
	 	Interpretation.	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II LICENSE TO LICENSEE OF THE MARKS	 	 	 	 
	 
	 	 	 	 	 	 
	2.01
	 	Scope of License to Licensee.	 	 	5	 
	 
	 	 	 	 	 	 
	2.02
	 	Rights Reserved.	 	 	6	 
	 
	 	 	 	 	 	 
	2.03
	 	Appearance of the Marks.	 	 	6	 
	 
	 	 	 	 	 	 
	2.04
	 	Domain Names.	 	 	6	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III OWNERSHIP OF THE MARKS	 	 	 	 
	 
	 	 	 	 	 	 
	3.01
	 	Acknowledgments and Covenants of Licensee.	 	 	6	 
	 
	 	 	 	 	 	 
	3.02
	 	Avoidance of Adverse Actions by Licensee	 	 	6	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV MAINTENANCE OF QUALITY	 	 	 	 
	 
	 	 	 	 	 	 
	4.01
	 	Quality of Licensee’s Services.	 	 	7	 
	 
	 	 	 	 	 	 
	4.02
	 	Compliance and Performance Reviews.	 	 	7	 
	 
	 	 	 	 	 	 
	4.03
	 	Quality of NRT Mortgage Business Offices	 	 	7	 
	 
	 	 	 	 	 	 
	4.04
	 	Promotion and Goodwill.	 	 	8	 
	 
	 	 	 	 	 	 
	4.05
	 	Notification of Breach of Quality Standards	 	 	8	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V RECORDS; AUDITS AND INSPECTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	5.01
	 	Maintenance of Records.	 	 	8	 
	 
	 	 	 	 	 	 
	5.02
	 	Right of Inspection and Audit.	 	 	9	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI COMPLIANCE WITH LAW	 	 	 	 
	 
	 	 	 	 	 	 
	6.01
	 	Compliance with Law.	 	 	9	 
	 
	 	 	 	 	 	 
	6.02
	 	Government Licenses, Permits, and Approvals	 	 	9	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VII INTELLECTUAL PROPERTY PROTECTION	 	 	 	 
	 
	 	 	 	 	 	 
	7.01
	 	Protection of the Marks.	 	 	9	 
	 
	 	 	 	 	 	 
	7.02
	 	Domain Names.	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VIII DISCLAIMER OF REPRESENTATIONS AND WARRANTIES	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IX DEFENSE AND INDEMNIFICATION	 	 	 	 
	 
	 	 	 	 	 	 
	9.01
	 	Indemnification by Licensee	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE X REMEDIES FOR BREACH	 	 	 	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	10.01
	 	Equitable Relief	 	 	11	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE XI TERM AND TERMINATION	 	 	 	 
	 
	 	 	 	 	 	 
	11.01
	 	Term.	 	 	11	 
	 
	 	 	 	 	 	 
	11.02
	 	Licensors’ Right to Terminate Agreement.	 	 	11	 
	 
	 	 	 	 	 	 
	11.03
	 	Termination for Material Breach	 	 	11	 
	 
	 	 	 	 	 	 
	11.04
	 	Effect of Termination.	 	 	11	 
	 
	 	 	 	 	 	 
	11.05
	 	Post-Transitional Period Use.	 	 	12	 
	 
	 	 	 	 	 	 
	11.06
	 	Survival.	 	 	13	 
	 
	 	ARTICLE XII MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	12.01
	 	Counterparts.	 	 	13	 
	 
	 	 	 	 	 	 
	12.02
	 	Entire Agreement.	 	 	13	 
	 
	 	 	 	 	 	 
	12.03
	 	Invalidity.	 	 	13	 
	 
	 	 	 	 	 	 
	12.04
	 	Amendment.	 	 	13	 
	 
	 	 	 	 	 	 
	12.05
	 	Binding Effect.	 	 	13	 
	 
	 	 	 	 	 	 
	12.06
	 	Governing Law.	 	 	13	 
	 
	 	 	 	 	 	 
	12.07
	 	Effect of Waiver or Consent.	 	 	14	 
	 
	 	 	 	 	 	 
	12.08
	 	Notices	 	 	14	 
	 
	 	 	 	 	 	 
	12.09
	 	Headings.	 	 	15	 
	 
	 	 	 	 	 	 
	12.10
	 	No Assignment.	 	 	15	 
	 
	 	 	 	 	 	 
	12.11
	 	Remedies Cumulative.	 	 	15	 
	 
	 	 	 	 	 	 
	12.12
	 	No Third-Party Beneficiaries.	 	 	15	 
	 
	 	 	 	 	 	 
	12.13
	 	Further Assurances and Cooperation.	 	 	15	 
	 
	 	 	 	 	 	 
	12.14
	 	No Strict Construction.	 	 	16	 

SCHEDULE A (Marks)

ii

 

          THIS TRADEMARK LICENSE AGREEMENT (this “Agreement”), effective as of January 31, 2005
(the “Effective Date”), by and between TM ACQUISITION CORP., a Delaware corporation located
at 10750 W. Charleston Blvd., Suite 130, Las Vegas, NV 89135 (“TM Corp.”) COLDWELL BANKER
REAL ESTATE CORPORATION, (“Coldwell Banker”) and ERA FRANCHISE SYSTEMS, INC.
(“ERA”) both located at 1 Campus Drive, Parsippany, New Jersey 07054 (ERA, Coldwell Banker
and TM Corp. are collectively the “Licensors”), and PHH HOME LOANS, LLC, a Delaware limited
liability company located at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054
(“Licensee”). Licensors and Licensee are hereinafter referred to collectively as the
“Parties” or individually as a “Party”.

WITNESSETH:

          WHEREAS, PHH Member and Cendant Member formed Licensee on November 3, 2004, for the principal
purpose of originating and selling mortgage loans sourced through Cendant’s residential real estate
brokerage and corporate relocations businesses and from employees of Cendant and its Subsidiaries,
in accordance with the terms and provisions of the Operating Agreement and the SRA, as each
agreement is amended from time to time;

          WHEREAS, TM Corp. owns the Marks set forth on Schedule A;

          WHEREAS, TM Corp. has previously entered into exclusive licensing arrangements with Coldwell
Banker and ERA whereby TM Corp. granted (i) Coldwell Banker exclusive rights to use the Coldwell
Banker Marks and (ii) ERA exclusive rights to use the ERA Marks, in connection with the operation
of real estate franchisor businesses;

          WHEREAS, Licensee desires a license to use the Marks to conduct the NRT Mortgage Business and
Licensors desires to grant such license to Licensee, on the terms and subject to the conditions
contained herein.

          NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants,
promises, and agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

DEFINITIONS

          1.01 Defined Terms. As used in this Agreement, the following capitalized terms shall
have the meanings set forth below:

          “Affiliate” means, when used with reference to a specific Person, any Person that,
directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with such specific Person. For the avoidance of doubt, Licensee and its
Subsidiaries shall not be deemed to be an Affiliate of Cendant or any of Cendant’s Affiliates.

          “Agreement” has the meaning set forth in the preamble of this Agreement.

1

 

          “Business Day” means any day other than a Saturday, Sunday, or a holiday on which
commercial banks in the State of New York are closed.

          “Calendar Quarter” means the three-month quarters from January 1st through
March 31st, April 1st through June 30th, July 1st through
September 30th, and October 1st through December 31st of each
calendar year.

          “Cendant” means Cendant Corporation, a Delaware corporation.

          “Cendant Member” means Cendant Real Estate Services Venture Partner, Inc., a Delaware
corporation.

          “Cendant Put” has the meaning set forth in Section 8.2 of the Operating Agreement.

          “Cendant Real Estate” means Cendant Real Estate Services Group, LLC, a Delaware
limited liability company.

          “Cendant Real Estate Services Division” means (i) the residential and commercial real
estate brokerage business owned and operated by NRT Incorporated and its Subsidiaries; (ii) the
relocation business owned and operated by Cendant Mobility Services Corporation and its
Subsidiaries; and (iii) the Settlement Services business owned and operated by Cendant Settlement
Services Group LLC and its Subsidiaries (it being understood that for all purposes of this
Agreement, the Cendant Real Estate Services Division shall not include Century 21 Real Estate LLC,
Coldwell Banker, ERA, and Sotheby’s International Realty Affiliates, Inc.).

          “Cendant Termination Event” has the meaning set forth in Section 8.1 of the Operating
Agreement.

          “Cessation Date” has the meaning set forth in Section 11.04(b).

          “Coldwell Banker” has the meaning set forth in the preamble of this Agreement.

          “Coldwell Banker Marks” means the marks identified as “Coldwell Banker Marks”
on Schedule A.

          “Control” shall mean, with regard to any Person, the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract, or otherwise; and the terms “controlling” and “controlled”
have meanings correlative with the foregoing.

          “Covered Books and Records” has the meaning set forth in Section 5.01(a).

          “Customer” means any Person who is referred to Licensee by the Cendant Real Estate
Division and contacts Licensee whether in person or by mail, phone, via the Internet (including by
electronic mail), or otherwise, or who is so contacted by Licensee, about the possibility of
obtaining a Mortgage Loan through Licensee, or who otherwise obtains a Mortgage Loan from or
through Licensee.

2

 

          “Damages” shall mean any and all damages, disbursements, suits, claims, liabilities,
obligations, judgments, fines, penalties, charges, amounts paid in settlement, costs, and expenses
(including reasonable attorneys’ fees and expenses) arising out of or related to this Agreement,
and any interest charged by third parties on any of the foregoing.

          “Domain Names” means the Internet domain names identified on Schedule A or such other
Internet domain name containing a Mark approved in writing by Licensors from time to time pursuant
to this Agreement.

          “Effective Date” has the meaning set forth in the preamble of this Agreement.

          “ERA” has the meaning set forth in the preamble of this Agreement.

          “ERA Marks” means the marks identified as “ERA Marks” on Schedule A.

          “Governmental Entity” means any court, administrative agency or commission, or other
governmental authority or instrumentality.

          “Law” means any order, writ, injunction, decree, judgment, ruling, law, decision,
opinion, statute, rule, or regulation of any Governmental Entity, including, any federal, state, or
local fair lending laws.

          “License” has the meaning set forth in Section 2.01.

          “Licensee” has the meaning set forth in the preamble of this Agreement.

          “Licensor” means (i) TM Corp. with respect to all Marks, (ii) Coldwell Banker with
respect to the Coldwell Banker Marks, and (iii) ERA with respect to the ERA Marks.

          “Marks” means the service marks, trademarks, trade names, and real estate brand names
(and corresponding applications and registrations) identified on Schedule A.

          “Mortgage Lending Laws” means any Law applicable to the (i) communication with, and
marketing directed toward, Customers, (ii) application process for Mortgage Loans, (iii) Mortgage
Pre-Approval Decision process described in the Operating Agreement, (iv) processing of Mortgage
Loan applications, (v) communication to the Customer of a Mortgage Loan underwriting decision, and
(vi) closing and funding of a Mortgage Loan as well as the preparation, execution, and delivery of
Mortgage Loan Documents and Mortgage Loan Disclosures (as respectively defined in the Operating
Agreement). Mortgage Lending Laws include the following: (i) the record keeping and reporting
requirements of the Home Mortgage Disclosure Act (“HMDA”), (ii) the Real Estate Settlement
Procedures Act and Regulation X (24 C.F.R. Part 3500), (iii) the Fair Housing Act, (iv) the Fair
Credit Reporting Act, (v) the Flood Disaster Protection Act, (vi) the Truth-in-Lending Act and
(Regulation Z), (vii) the National Housing Act, (viii) the Servicemen’s Readjustment Act, (ix) the
Equal Credit Opportunity Act and (Regulation B), (x) any usury laws or regulations, and (xi) the
Homeowner’s Protection Act.

3

 

          “Mortgage Loan” means a mortgage loan (including a home equity line of credit)
evidenced by one or more promissory notes and secured by a mortgage or deed of trust on one or more
residential real estate properties.

          “Non-Renewal Put” has the meaning set forth in Section 8.4 of the Operating Agreement.

          “Non-Renewal PHH Sale” has the meaning set forth in Section 8.4 of the Operating
Agreement.

          “NRT Mortgage Business” means providing mortgage services to the Customer that include
counseling, efficient processing, origination, and servicing of Mortgage Loans on homes located in
the Territory, which Mortgage Loans are sourced solely through the Cendant Real Estate Services
Division.

          “Offices” has the meaning set forth in Section 4.02.

          “Operating Agreement” means the Amended and Restated Limited Liability Company
Operating Agreement of Licensee dated as of January 31, 2005, as it may be amended from time to
time.

          “Party” or “Parties” has the meaning set forth in the preamble of this
Agreement.

          “Person” means any individual, general partnership, limited partnership, corporation,
limited liability company, joint venture, trust, business trust, governmental agency, cooperative,
association, or other entity, and the heirs, executors, administrators, legal representatives,
successors, and assigns of such person, as the context may require.

          “PHH Member” means PHH Broker Partner Corporation, a Maryland corporation.

          “Pipeline Loans” shall mean all potential Mortgage Loans which are in one of various
stages of loan origination, approval and processing at Licensee, but which, as of the time of
consummation of a Cendant Put or Two Year Put, shall not have closed and funded.

          “PHH Sale” has the meaning set forth in Section 8.2 of the Operating Agreement.

          “PHH Termination Event” has the meaning set forth in Section 8.3 of the Operating
Agreement.

          “Prime Rate” means, at any given time, the prime rate most recently reported by J.P.
Morgan Chase, New York, New York (or any successor entity).

          “Purchase Right” has the meaning set forth in Section 8.3 of the Operating Agreement.

          “Settlement Services” means the provision of settlement services for residential real
estate transactions, including the issuance of title insurance policies (including title search
procedures), loan certification, property tax tracking services and closing escrow services, but

4

 

shall not include credit review services, appraisal review services or flood zone
determinations for properties.

          “Special Termination Put” has the meaning set forth in Section 8.4 of the Operating
Agreement.

          “SRA” means the Strategic Relationship Agreement by and among Cendant Real Estate, PHH
Corporation, Licensor, Cendant Mortgage Corporation (now known as “PHH Mortgage Corporation”), the
PHH Member, and Licensee, as it may be amended from time to time.

          “Subsidiary” means, when used with respect to any party, any corporation, partnership,
limited liability company or other organization, whether incorporated or unincorporated, which is
consolidated with such party for financial reporting purposes under generally accepted accounting
principles in the United States, and when used with respect to Licensee, shall include the Small
Corps (as defined in the Operating Agreement).

          “Term” has the meaning set forth in Section 11.01.

          “Territory” means the United States and its territories and possessions.

          “Transitional Period” has the meaning set forth in Section 11.04(b).

          “Two Year PHH Sale” has the meaning set forth in Section 8.4 of the Operating
Agreement.

          “Two Year Put” has the meaning set forth in Section 8.4 of the Operating Agreement.

          1.02 Interpretation. Each definition in this Agreement includes the singular and the
plural. The words “include” or “including” when used in this Agreement shall mean “including,
without limitation”. The word “or” shall not be exclusive. Except as otherwise stated, reference
to Articles, Sections, and Schedules means the Articles, Sections, and Schedules of this Agreement.
The Schedules are hereby incorporated by reference into and shall be deemed a part of this
Agreement.

ARTICLE II

LICENSE TO LICENSEE OF THE MARKS

          2.01 Scope of License to Licensee. During the Term and subject to the terms and
conditions of this Agreement, Licensors hereby grants to Licensee a royalty-free, non-exclusive,
non-assignable, non-transferable, non-sublicenseable right and license to use in the Territory the:

                         (i) Marks as trademarks and service marks and in its trade or assumed name (but
not corporate name), and

                         (ii) Domain Names,

5

 

in connection solely with the offering of products and services (and the advertisement, promotion,
and marketing of such products and services) in the NRT Mortgage Business (the “License”).

          2.02 Rights Reserved. Subject to the exclusivity provisions set forth in Article II
of the SRA, for the avoidance of doubt, Licensors hereby reserve the right to use and grant others
the right to use the Marks alone or in association with any other trademark, service mark, domain
name, or name, as trademarks, service marks, domain names, and/or names for any purpose whatsoever.

          2.03 Appearance of the Marks. The Marks may only be used under the License in the
same manner, including in the same style, typeface, and graphic appearance, depicted on Schedule A.
Notwithstanding any other provision of this Agreement, Licensee may not combine the Marks with any
other trademark or service mark (including any logo, design, or symbol), domain name (except for
the Domain Names), name, prefix or suffix, or any other modifying word or term or matter without
Licensors’ prior written approval.

          2.04 Domain Names. Licensee acknowledges and agrees that any use of the Domain Names,
including in connection with any website or other advertising or promotional materials (including
electronic mail sent from an electronic mail address associated with the Domain Names) or other
content available through the Domain Names, must comply with all restrictions in this Agreement
relating to the Marks, to the extent applicable.

ARTICLE III

OWNERSHIP OF THE MARKS

          3.01 Acknowledgments and Covenants of Licensee.

                  (a) Licensee acknowledges that (i) TM Corp. is the owner of the Marks in the Territory, (ii)
other than the rights granted to Licensee under this License, (x) Coldwell Banker is the exclusive
licensee of the Coldwell Banker Marks in the Territory and (y) ERA is the exclusive licensee of the
ERA Marks in the Territory, and (iii) the rights of Licensors in the Marks are valid and
enforceable. Licensee covenants and agrees not to challenge Licensors’ ownership of the Marks
anywhere, including as part of a Domain Name.

                  (b) Licensee shall not acquire any ownership rights in the Marks or Domain Names or any other
right adverse to Licensors’ interests in the Marks or Domain Names. Nothing herein shall be
deemed, intended, or implied to constitute a sale or assignment of the Marks or Domain Names to
Licensee. Licensee agrees that its use of the Marks or Domain Names under this Agreement shall
inure to the benefit of Licensors, and this Agreement does not confer on Licensee any goodwill or
ownership interest in the Marks.

                  (c) Licensee shall include the following written notice in connection with its use of the
Marks (or such other written ownership notice as requested by Licensors from time to time):
“[insert service mark] is a service mark of a subsidiary of Cendant Corporation and used under
license by [insert Licensee].”

          3.02 Avoidance of Adverse Actions by Licensee. Licensee hereby covenants that it
shall not: (i) use the Marks in any way that may tend to impair their validity as proprietary

6

 

trademarks or service marks; (ii) take any action that would jeopardize or impair TM Corp.’s
ownership of the Marks or the legality and/or enforceability of the Marks, or Coldwell Banker’s
right to use the Coldwell Marks and ERA’s right to use the ERA Marks; (iii) either directly or
indirectly, apply for the registration or renewal of registration of the Marks or any variation
thereon, or any trademark, service mark, domain name (except for the Domain Names with respect to
renewal as set forth herein), name or other matter which contains or is similar to, the Marks,
without the prior written consent of Licensors; (iv) use (except for the Marks and Domain Names as
set forth herein) or attempt to register in any jurisdiction, directly or indirectly, any
trademark, service mark, domain name, name, or other matter containing or similar to any trademark,
service mark, domain name, or name as to which Licensors or any of their Affiliates have any
registration or proprietary rights; or (v) sublicense any of the Marks.

ARTICLE IV

MAINTENANCE OF QUALITY

          4.01 Quality of Licensee’s Services.

                  (a) Licensee shall use the Marks and conduct its business under the Marks in a manner designed
to enhance the reputation and integrity of the Marks and the goodwill associated therewith.
Licensee hereby covenants that in the course of conducting the NRT Mortgage Business, the quality
of products and services provided by Licensee under the Marks will be at least equal to (i) the
quality of products and services provided by Cendant, Coldwell Banker, ERA or their respective
Affiliates under the Marks as of the Effective Date and (ii) generally accepted good industry
practice, which includes the origination, processing, underwriting, approval, closing, shipping,
and other origination services on all Mortgage Loans by Licensee in accordance with all Mortgage
Lending Laws and with no less degree of care than Cendant or its Affiliates exercised when they
originated Mortgage Loans prior to the Effective Date.

                  (b) Licensee shall not take any action that in any way might tend to diminish or disparage the
value, goodwill, or reputation of the Marks, Cendant, or Licensors.

          4.02 Compliance and Performance Reviews. Licensors shall have the right to review the
manner in which Licensee uses the Marks, including the right at Licensors’ written request to
receive and review samples of materials on which Licensee uses the Marks, including letterhead,
business cards, advertising, signage, and other promotional materials, and other business materials
used in connection with the Marks, to ensure that Licensee is complying with the provisions hereof,
and Licensors reserves its right to require written approval of such materials prior to Licensee’s
use of the same. If Licensors determines, in its discretion, that Licensee has failed to comply
with the quality provisions set forth in this Agreement, such failure shall be deemed a default
under this Agreement, and Licensors shall have the right to terminate this Agreement as provided
for in Section 11.03.

          4.03 Quality of NRT Mortgage Business Offices. Licensee shall:

                    (i) maintain a high moral and ethical standard of operation at each office
servicing the NRT Mortgage Business (the “Offices”);

7

 

                    (ii) maintain each of its Offices in a clean, attractive, and orderly
condition;

                    (iii) provide efficient, courteous, and high-quality services to the Customers
at each Office or via any telecommunication process such as telephone or the
Internet;

                    (iv) comply with Licensors’ reasonable requirements so as to maintain the high
quality of each Office and telecommunication processes; and

                    (v) conduct the NRT Mortgage Business in the manner set forth under the
Operating Agreement and the SRA.

          4.04 Promotion and Goodwill.

                  (a) Licensee shall:

                    (i) advertise and promote the NRT Mortgage Business subject to Licensors’
reasonable requirements as to form and content of all advertising and promotional
material;

                    (ii) not make or publish any statement or advertisement which would reasonably
be expected to be construed to demean the image, value, identity, reputation, or
goodwill associated with Cendant, Licensors, or any Mark; and

                    (iii) advertise only in a manner that is professional, dignified, and not
intentionally misleading.

                  (b) Licensee acknowledges that its compliance with the quality provisions of this Agreement is
essential to preserve the goodwill of the Marks and the integrity of the NRT Mortgage Business.

          4.05 Notification of Breach of Quality Standards. Licensors shall promptly deliver to
Licensee written notice of any material breach by Licensee with respect to the quality standards
contained herein.

ARTICLE V

RECORDS; AUDITS AND INSPECTIONS

          5.01 Maintenance of Records. Licensee shall maintain accurate books, records, and
accounts, including financial and accounting records, relating to the NRT Mortgage Business (and
shall use commercially reasonable efforts to cause its independent accountants to retain their
working papers), including with respect to the determination of compliance with the quality
provisions set forth in Article IV (such books, records, and accounts, collectively, the “Covered
Books and Records”).

8

 

          5.02 Right of Inspection and Audit.

                  (a) Licensors and their Affiliates, and their officers, employees, and agents, including
third-party attorneys and accountants and auditors, and regulatory officials with regulatory
authority over Licensors, may, during the Term and for a period of three (3) years following any
termination of this Agreement (or longer to the extent of any applicable statute of limitations or
any dispute hereunder), perform reviews, including onsite visits and an audit of the Covered Books
and Records to ensure that Licensee is conducting its activities and performing its obligations
under this Agreement in accordance with all Mortgage Lending Laws and the provisions of this
Agreement. In connection therewith, Licensee shall provide to such Person, during normal business
hours and with reasonable advance notice, access to such Covered Books and Records as Licensors may
reasonably request for the purpose of carrying out such reviews. Licensors shall have the right to
make copies or extracts of the Covered Books and Records.

                  (b) Licensors shall be permitted, during the Term and for a period of three (3) years
following the Term (or longer to the extent of any applicable statute of limitations or any dispute
hereunder), during normal business hours and with reasonable advance notice, to meet with
Licensee’s officers, employees, and applicable agents and representatives for the purpose of
reviewing Licensee’s compliance with the quality provisions of this Agreement.

                  (c) The expenses of any inspection and audit conducted pursuant to Section 5.02 shall be borne
by Licensors.

ARTICLE VI

COMPLIANCE WITH LAW

          6.01 Compliance with Law. Licensee shall comply in all material respect with all
applicable Laws now and hereinafter enacted in connection with the NRT Mortgage Business, its use
of the Marks, and the performance of its other obligations under this Agreement.

          6.02 Government Licenses, Permits, and Approvals. Licensee, at its sole expense,
shall be responsible for obtaining and maintaining all licenses, permits, and regulatory approvals
which are required by any Governmental Entity with respect to this Agreement and/or the Mortgage
Lending Laws with respect to the NRT Mortgage Business, and to comply in all material respect with
any requirements of such Governmental Entity or Mortgage Lending Law. Licensee shall furnish
Licensors with written evidence from such regulatory authorities of any such licenses, permits,
clearances, authorizations, or regulatory approvals at Licensors’ request.

ARTICLE VII

INTELLECTUAL PROPERTY PROTECTION

          7.01 Protection of the Marks.

                  (a) Licensee shall, at its own expense, notify Licensors, within ten (10) Business Days after
it becomes aware thereof, of (i) any use, application to register, or registration of any word,
name, phrase, term, logo, or design, or any combination of any of the foregoing, that might
constitute infringement or other violation of the Marks; or (ii) any claim of any rights in a Mark,
or in any confusingly similar mark, adverse to Licensors’ interests in and to

9

 

such Mark, or any claim that Licensee’s use of a Mark infringes or otherwise violates the
rights of any other Person.

                  (b) Licensee agrees, at its own expense and as Licensors may reasonably request, to (i)
cooperate fully with Licensors in the prosecution and elimination of any infringement or other
violation of the Marks, including, but not limited to, joining in a suit or proceeding against a
Person making such infringing or other violating use; and (ii) execute any further agreements or
documents as may become necessary or useful in connection therewith.

          7.02 Domain Names.

                  (a) Licensee shall not register any Domain Names or domain names incorporating the Marks, or
any name or mark similar to the Marks, with any domain name registrar. Licensors agree that they
will appoint Licensee as the administrative and technical contact for the Domain Names with the
appropriate domain name registrar.

                  (b) Licensee shall pay all fees (including renewal fees) associated with the Domain Names to
the appropriate domain name registrar and shall not let any Domain Name lapse by failing to pay
such renewal fees. Licensee shall promptly notify Licensors in writing and promptly provide
Licensors with copies of all correspondence from any domain name registrar with respect to the
registration or renewal of the Domain Names.

ARTICLE VIII

DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

          8.01 EXCEPT AS EXPRESSLY SET FORTH IN AND SUBJECT TO THE OPERATING AGREEMENT, LICENSORS HEREBY
SPECIFICALLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED (INCLUDING
ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY,
REGISTRABILITY, OR NON-INFRINGEMENT AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE
OF PERFORMANCE), REGARDING THE MARKS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, LICENSEE
ACKNOWLEDGES THAT THE LICENSE GRANTED IN THIS AGREEMENT AND THE MARKS ARE PROVIDED “AS IS.”

ARTICLE IX

DEFENSE AND INDEMNIFICATION

          9.01 Indemnification by Licensee. Licensee, at its expense, hereby agrees to
indemnify and hold harmless Licensors and their Affiliates, and their respective directors,
officers, employees, and agents with respect to any Damages incurred, arising from, or based on a
claim by any third party arising, directly or indirectly, from any use by Licensee of the Marks;
provided that Licensors notifies Licensee promptly in writing after Licensors becomes aware of such
a claim. Licensors and Licensee shall reasonably cooperate with each other with respect to
such a claim.

10

 

ARTICLE X

REMEDIES FOR BREACH

          10.01 Equitable Relief. Licensee acknowledges and agrees that (i) the Marks
constitute valuable property of Licensors and have acquired a valuable reputation and goodwill;
(ii) violation by Licensee or its directors, officers, employees, agents, or subcontractors of any
provision of this Agreement may cause Licensors irreparable injury not compensable by money damages
for which Licensors may not have an adequate remedy at law; and (iii) if Licensors institute an
action or proceeding to enforce the provisions of this Agreement and seek injunctive or other
equitable relief as may be necessary to enjoin, prevent, or curtail any breach thereof, threatened
or actual, then Licensors shall not be required to prove irreparable injury, and shall be entitled
to such relief without the posting of any bond or other security.

ARTICLE XI

TERM AND TERMINATION

          11.01 Term. This Agreement shall become effective on the Effective Date and shall
continue in perpetuity unless and until terminated pursuant to Section 11.02 or 11.03 (the “Term”).

          11.02 Licensors’ Right to Terminate Agreement. Licensors may terminate this Agreement
upon written notice to Licensee in the event of the occurrence of (i) any Cendant Termination
Event, which termination will be effective upon the consummation of a Cendant Put or a PHH Sale in
accordance with Section 8.2 of the Operating Agreement, (ii) any PHH Termination Event, which
termination will be effective upon the consummation of a Purchase Right transaction in accordance
with Section 8.3 of the Operating Agreement, (iii) the consummation of a Two Year Put in accordance
with Section 8.4 of the Operating Agreement, (iv) the consummation of a Two Year PHH Sale in
accordance with Section 8.4 of the Operating Agreement, (v) the consummation of a Special
Termination Put, a Non-Renewal Put or a Non-Renewal PHH Sale, in each case in accordance with
Section 8.4 of the Operating Agreement, or (vi) the dissolution of Licensee, which termination will
be effective upon the distribution of assets in accordance with Article IX of the Operating
Agreement.

          11.03 Termination for Material Breach. If any Licensor, on the one hand, or Licensee,
on the other, fails to discharge a material obligation or to correct a material default hereunder,
Licensee or Licensors, respectively, may give written notice to the other Party specifying the
material obligation or material default and indicating an intent to terminate this Agreement if the
material obligation is not discharged or the material default is not cured. The Party receiving
such notice shall have sixty (60) days from the date of receipt of such notice to discharge such
material obligation or cure such material default. If such material obligation is not discharged
or such material default is not cured by the end of such sixty (60) day period, the non-defaulting
Party may terminate this Agreement immediately by written notice given at any time after the end of
such period; provided that the material obligation has not been discharged or the material default
is continuing on the date of such termination notice.

          11.04 Effect of Termination.

11

 

                   (a) Upon the expiration or termination of this Agreement for any reason:

                     (i) Subject to Sections 11.04(b) and 11.05, Licensee’s License immediately and
automatically shall terminate, and all rights in the Marks granted to Licensee under
this Agreement shall revert to Licensors; and

                     (ii) Licensee shall, within sixty (60) days from the termination of this
Agreement (such period, the “Transitional Period”), discontinue using the
Marks and remove the Marks from all promotional and advertisement materials,
stationery, computer and electronic systems (including all Internet websites), and
any and all documents (whether in written, electronic, optical, or other form) in
the possession or control of Licensee, and during the Transitional Period (the last
day of such period being the “Cessation Date”) all of the obligations of
Licensee hereunder shall remain in force; provided, however, that
Licensee shall not be required to remove the Marks from internal business records.

                   (b) Subject to Section 11.05, upon expiration of the Transitional Period, Licensee shall:

                     (i) destroy all materials utilizing the Marks and provide confirmation of same
to Licensors;

                     (ii) not use any trademark, service mark, domain name, or name that is
confusingly similar to or dilutive of the Marks, and at Licensors’ request Licensee
will assign any rights to the Marks to one or more of the Licensors or an Affiliate
of one of them, as requested by Licensors;

                     (iii) remove all content from any Internet website corresponding to the Domain
Names, and shall (x) post, at the request of Licensors and subject to the prior
written approval of Licensors, a notice or legend which shall state that the license
granted hereunder has been terminated and any other information reasonably requested
by Licensors, including hypertext links to one or more of Licensors’, or its
Affiliates’, other Internet websites; or (y) redirect the Domain Names to a websites
of Licensors’ choosing;

                     (iv) take all steps necessary, and fully cooperate with Licensors and/or their
Affiliates, to remove the Marks from Licensee’s trade and assumed names and cancel
any recordation of such names with any Governmental Entity; and

                     (v) change any corporate, trade, and assumed name that uses the Marks to a name
that does not include the Marks or any variation, derivation, or colorable imitation
thereof.

          11.05 Post-Transitional Period Use. Notwithstanding Section 11.04, Licensee shall
have the right to continue to use the Marks after the expiration of the Transitional Period

12

 

solely to the extent necessary in connection with and until the closing of any outstanding
Pipeline Loans.

          11.06 Survival. Notwithstanding any provisions of this Article stating otherwise,
Sections 7.02, 11.04, 11.05, 11.06 , and Articles III, V, VIII through X, and XII shall survive any
termination of this Agreement.

ARTICLE XII

MISCELLANEOUS

          12.01 Counterparts. This Agreement may be executed in several counterparts, each of
which will be deemed an original but all of which will constitute one and the same instrument.

          12.02 Entire Agreement. This Agreement constitutes the entire agreement between the
Parties and contains all of the agreements between the Parties with respect to the subject matter
hereof. This Agreement supersedes any and all other agreements, either oral or written, between
the Parties with respect to the subject matter hereof.

          12.03 Invalidity. Wherever possible, each provision hereof shall be interpreted in
such manner as to be effective and valid under applicable law, but in case any one or more of the
provisions contained herein shall, for any reason, be held to be invalid, illegal, or unenforceable
in any respect, such provision shall be ineffective only to the extent of such invalidity,
illegality, or unenforceability without invalidating the remainder of such invalid, illegal, or
unenforceable provision or provisions or any other provisions hereof, unless such a construction
would be unreasonable.

          12.04 Amendment. Except as expressly provided herein, this Agreement may be amended
only by a written agreement executed by both of the Parties. Following such amendment, this
Agreement, as amended, shall be binding upon the Parties.

          12.05 Binding Effect. Subject to the provisions of this Agreement relating to
transferability, this Agreement will be binding upon and shall inure to the benefit of the Parties,
and their respective permitted successors and assigns.

          12.06 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAWS RULES THEREOF, AND THE OBLIGATIONS,
RIGHTS, AND REMEDIES OF THE PARTIES SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. Any legal
suit, action, or proceeding against any of the Parties arising out of or relating to this Agreement
shall only be instituted in any federal or state court in New York, New York, pursuant to Section
5-1402 of the New York General Obligations Law, and each Party hereby irrevocably submits to the
exclusive jurisdiction of any such court in any such suit, action, or proceeding. The Parties
hereby agree to venue in such courts and hereby waive, to the fullest extent permitted by law, any
claim that any such action or proceeding was brought in an inconvenient forum. Each of the Parties
hereby irrevocably waives all right to trial by jury in any suit, action, or proceeding arising out
of or relating to this Agreement.

13

 

          12.07 Effect of Waiver or Consent. No provision of this Agreement shall be deemed to
have been waived unless such waiver is contained in a written notice given to the Party claiming
such waiver has occurred. A waiver or consent, express or implied, of or to any breach or default
by any Person in the performance by that Person of its obligations with respect to this Agreement
is not a consent or waiver to or of any other breach or default in the performance by that Person
of the same or any other obligations of that Person with respect to this Agreement. Failure on the
part of a Person to complain of any act of any Person or to declare any Person in default with
respect to this Agreement, irrespective of how long that failure continues, does not constitute a
waiver by that Person of its rights with respect to that default until the applicable
statute-of-limitations period has run.

          12.08 Notices. To be effective, unless otherwise specified in this Agreement, all
notices and demands, consents, and other communications under this Agreement must be in writing and
must be given by (a) depositing the same in the United States mail, postage prepaid, certified or
registered, return receipt requested, (b) delivering the same in person and receiving a signed
receipt therefore, (c) sending the same by a nationally recognized overnight delivery service, or
(d) telecopy (promptly confirmed by telephone and followed by personal or nationally recognized
overnight delivery). For purposes of notices, demands, consents, and other communications under
this Agreement, the addresses of the Parties (and their respective counsel, if applicable) shall be
as follows:

          If to Licensors, addressed to:

	 	 	 	 	 	 	 
	 	 	Cendant Corporation  
	 	 	9 West 57th Street
	 	 	New York, New York 10021
	 	 	Facsimile: (212) 413-1922
	 

	 	Attention:
	 	Eric J. Bock,	 	 
	 

	 	 	 	Executive Vice President-Law	 	 
	 

	 	 	 	and Corporate Secretary	 	 

          If to Licensee, addressed to:

	 	 	 	 	 	 	 
	 	 	PHH Home Loans, LLC  
	 	 	3000 Leadenhall Road
	 	 	Mail Stop ACC
	 	 	Mt. Laurel, NJ 08054
	 	 	Facsimile: (856) 917-0950
	 

	 	Attention:
	 	William F. Brown,	 	 
	 

	 	 	 	Senior Vice President	 	 
	 

	 	 	 	and General Counsel	 	 

14

 

          Copies of all notices hereunder shall be delivered to:

	 	 	 	 	 
	 

	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 	 
	 

	 	Four Times Square	 	 
	 

	 	New York, New York 10036	 	 
	 

	 	Facsimile: (212) 735-2000	 	 
	 

	 	Attention: Fred B. White III, Esq.	 	 

Notices, demands, consents, and other communications mailed in accordance with the foregoing clause
(a) shall be deemed to have been given, made, and received three (3) Business Days following the
date so mailed. Notices, demands, consents, and other communications given in accordance with the
foregoing clauses (b) and (d) shall be deemed to have been given, made, and received when sent on a
Business Day or, if not a Business Day, then the next succeeding Business Day. Notices, demands,
consents, and other communications given in accordance with the foregoing clause (c) shall be
deemed to have been given, made, and received when delivered or refused on a Business Day or, if
not a Business Day, then the next succeeding Business Day. Any Party may designate a different
address to which notices or demands shall thereafter be directed and such designation shall be made
by written notice given in the manner hereinabove required, provided that at all times each
Party shall be required to maintain a notice address in the continental United States.

          12.09 Headings. The headings of the Articles and Sections herein are inserted for
convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

          12.10 No Assignment. Licensee may not assign or otherwise transfer (including by
operation of law) its rights or obligations under this Agreement to any Person. Any assignment or
other transfer in violation of the foregoing sentence shall be void and of no force and effect.
This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
permitted successors and assigns.

          12.11 Remedies Cumulative. All remedies in this Agreement are cumulative, in addition
to, and not in lieu of, any other remedies available to a Party under this Agreement at law or in
equity.

          12.12 No Third-Party Beneficiaries. Unless otherwise expressly provided hereunder,
this Agreement shall be binding upon and inure solely to the benefit of each Party, and nothing in
this Agreement, express or implied, is intended to or shall confer upon any other Person any right,
benefit, or remedy of any nature whatsoever under or by reason of this Agreement.

          12.13 Further Assurances and Cooperation. Each Party agrees to execute and deliver
such other documents and to take all such other actions as the other Party may reasonably request
to effect the terms of this Agreement.

15

 

          12.14 No Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the Parties hereto to express their mutual intent and no rule of strict
construction against any Party shall apply to any term or condition of this Agreement.

[SIGNATURES APPEAR ON NEXT PAGE]

16

 

          IN WITNESS WHEREOF, this Agreement has been duly executed on the day and year first above
written.

	 	 	 	 	 
	 	TM ACQUISITION CORP.

 	 
	 	By:  	/s/ Eric J. Bock
 	 
	 	 	Name:  	Eric. J. Bock 	 
	 	 	Title:  	Executive Vice President and 

Secretary 	 
	 

	 	 	 	 	 
	 	COLDWELL BANKER REAL ESTATE CORPORATION

 	 
	 	By:  	/s/ Eric J. Bock
 	 
	 	 	Name:  	Eric. J. Bock 	 
	 	 	Title:  	Executive Vice President and 

Secretary 	 
	 

	 	 	 	 	 
	 	ERA FRANCHISE SYSTEMS, INC.

 	 
	 	By:  	/s/ Eric J. Bock
 	 
	 	 	Name:  	Eric. J. Bock 	 
	 	 	Title:  	Executive Vice President and 

Secretary 	 
	 

	 	 	 	 	 
	 	PHH HOME LOANS, LLC

 	 
	 	By:  	/s/ Terence W. Edwards
 	 
	 	 	Name:  	Terence W. Edwards 	 
	 	 	Title:  	President and Chief Executive 

Officer 	 
	 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]