Document:

2006 Equity Incentive Plan

 Exhibit 10.1 
 ANTARES PHARMA, INC. 
 2006 EQUITY INCENTIVE PLAN 
 SECTION 1. Purpose; Definitions. The purposes of the Antares Pharma, Inc. 2006 Equity Incentive Plan (the “Plan”) are to:
(a) enable Antares Pharma, Inc. (the “Company”) and its Affiliates to recruit and retain highly qualified personnel; (b) provide those employees, directors and consultants with an incentive for productivity; and
(c) provide those employees, directors and consultants with an opportunity to share in the growth and value of the Company. 
 For
purposes of the Plan, the following terms will have the meanings defined below, unless the context clearly requires a different meaning: 
 (a) “Affiliate” means, with respect to a Person, a Person that directly or indirectly controls, is controlled by, or is under common control with such Person. 
 (b) “Award” means an award of Options, Restricted Stock, Restricted Stock Units, or Performance Awards made under this Plan. 

(c) “Award Agreement” means, with respect to any particular Award, the written document that sets forth the terms of that particular
Award. 
 (d) “Board” means the Board of Directors of the Company, as constituted from time to time; provided,
however, that if the Board appoints a Committee to perform some or all of the Board’s administrative functions hereunder pursuant to Section 2, references in the Plan to the “Board” will be deemed to also refer to that
Committee in connection with administrative matters to be performed by that Committee. 
 (e) “Cause” means
(i) conviction of, or the entry of a plea of guilty or no contest to, a felony or any other crime that causes the Company or its Affiliates public disgrace or disrepute, or adversely affects the Company’s or its Affiliates’ operations
or financial performance or the relationship the Company has with its Affiliates, (ii) gross negligence or willful misconduct with respect to the Company or any of its Affiliates, including, without limitation fraud, embezzlement, theft or
proven dishonesty in the course of his employment; (iii) alcohol abuse or use of controlled drugs other than in accordance with a physician’s prescription; (iv) refusal, failure or inability to perform any material obligation or
fulfill any duty (other than any duty or obligation of the type described in clause (vi) below) to the Company or any of its Affiliates (other than due to a Disability), which failure, refusal or inability is not cured within 10 days after
delivery of notice thereof; (v) material breach of any agreement with or duty owed to the Company or any of its Affiliates; or (vi) any breach of any obligation or duty to the Company or any of its Affiliates (whether arising by statute,
common law, contract or otherwise) relating to confidentiality, noncompetition, nonsolicitation or proprietary rights. Notwithstanding the foregoing, if a Participant and the Company (or any of its Affiliates) have entered into an employment
agreement, consulting agreement or other similar agreement that 

  

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specifically defines “cause,” then with respect to such Participant, “Cause” shall have the meaning defined in that employment agreement,
consulting agreement or other agreement. 
 (f) “Change in Control” means the occurrence of any of the following, in one
transaction or a series of related transactions: 
 (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becoming a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the Company’s then
outstanding securities, and such person owns more aggregate voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors than any other person; provided that a Change in Control shall not be
deemed to occur as a result of (A) a change in ownership resulting from the death of a shareholder, (B) a transaction or a series of related transactions in which the Company is the seller of securities of the Company to the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), or (C) a transaction or a series of related transactions in which the purchaser of the securities of the Company is an employee benefit plan maintained by the
Company; or 
 (ii) the consummation of (x) the merger or consolidation of the Company with another corporation where the
shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such shareholders to 50% or more of all votes to which all shareholders of the
surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote), (y) the sale or other disposition of all or substantially all of the
assets of the Company, or (z) a liquidation or dissolution of the Company; 
 (g) “Code” means the Internal Revenue
Code of 1986, as amended from time to time, and any successor thereto. 
 (h) “Committee” means a committee appointed by the
Board in accordance with Section 2 of the Plan. 
 (i) “Covered Employee” means any employee of the Company if
(i) as of the close of the taxable year, such employee is the chief executive officer of the Company or is an individual acting in such capacity, or (ii) the total compensation of such employee for the taxable year is required to be
reported to shareholders under the Exchange Act by reason of such employee being among the 4 highest compensated officers for the taxable year (other than the chief executive officer). 
 (j) “Director” means a member of the Board. 
 (k) “Disability” means a condition rendering a Participant Disabled. 
 (l)
“Disabled” will have the same meaning as set forth in Section 22(e)(3) of the Code. 
  

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 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (n) “Fair Market Value” means, as of any date: (i) if the Shares are not then publicly traded, the value of such Shares on that
date, as determined by the Board in its sole and absolute discretion; or (ii) if the Shares are publicly traded, the closing price for a Share on the principal national securities exchange on which the Shares are listed or admitted to trading
or, if the Shares are not listed or admitted to trading on any national securities exchange, but are traded in the over-the-counter market, the closing sale price of a Share or, if no sale is publicly reported, the average of the closing bid and
asked quotations for a Share, as reported by The Nasdaq Stock Market, Inc. (“Nasdaq”) or any comparable system or, if the Common Stock is not listed on Nasdaq or a comparable system, the closing sale price of a Share or, if no sale
is publicly reported, the average of the closing bid and asked prices, as furnished by two members of the National Association of Securities Dealers, Inc. who make a market in the Common Stock selected from time to time by the Company for that
purpose. 
 (o) “Incentive Stock Option” means any Option intended to be an “Incentive Stock Option” within the
meaning of Section 422 of the Code. 
 (p) “Non-Employee Director” will have the meaning set forth in
Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission; provided, however, that the Board or the Committee may, to
the extent that it deems necessary to comply with Section 162(m) of the Code or regulations thereunder, require that each “Non-Employee Director” also be an “outside director” as that term is defined in regulations under
Section 162(m) of the Code. 
 (q) “Non-Qualified Stock Option” means any Option that is not an Incentive Stock Option.

 (r) “Option” means any option to purchase Shares (including Restricted Stock, if the Board so determines) granted
pursuant to Section 5 hereof. 
 (s) “Parent” means, in respect of the Company, a “parent corporation”
as defined in Sections 424(e) of the Code 
 (t) “Participant” means an employee, consultant, Director, or other
service provider of or to the Company or any of its respective Affiliates to whom an Award is granted. 
 (u) “Performance
Award” means any award granted pursuant to Section 9 hereof. 
 (v) “Performance Factors” means the factors
selected by the Board from time to time, including, but not limited to, the following measures to determine whether the performance goals established by the Plan Administrator and applicable to Performance Awards have been satisfied: revenue; net
revenue; revenue growth; net revenue growth; earnings before interest, taxes, depreciation and amortization (“EBITDA”); funds from operations; funds from 

  

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operations per share; operating income (loss); operating income growth; operating cash flow; net income; net income growth; pre- or after-tax income (loss);
cash available for distribution; cash available for distribution per share; cash and/or cash equivalents available for operations; net earnings (loss); earnings (loss) per share; earnings per share growth; return on equity; return on assets; share
price performance; total shareholder return; total shareholder return growth; economic value added; improvement in cash-flow; and confidential business unit objectives. 
 (w) “Person” means an individual, partnership, corporation, limited liability company, trust, joint venture, unincorporated association, or other entity or association. 
 (x) “Restricted Stock” means Shares that are subject to restrictions pursuant to Section 7 hereof. 
 (y) “Restricted Stock Unit” means a right granted under and subject to restrictions pursuant to Section 9 hereof.

 (z) “Shares” means shares of the Company’s common stock, par value $.01, subject to substitution or adjustment as
provided in Section 3(c) hereof. 
 (aa) “Subsidiary” means, in respect of the Company, a subsidiary company as
defined in Sections 424(f) and (g) of the Code. 
 SECTION 2. Administration. The Plan will be administered by
the Board; provided, however, that the Board may at any time appoint a Committee to perform some or all of the Board’s administrative functions hereunder; and provided further, that the authority of any Committee appointed
pursuant to this Section 2 will be subject to such terms and conditions as the Board may prescribe and will be coextensive with, and not in lieu of, the authority of the Board hereunder. 
 Subject to the requirements of the Company’s by-laws and certificate of incorporation any other agreement that governs the appointment of Board
committees, any Committee established under this Section 2 will be composed of not fewer than two members, each of whom will serve for such period of time as the Board determines; provided, however, that if the Company has a class
of securities required to be registered under Section 12 of the Exchange Act, all members of any Committee established pursuant to this Section 2 will be Non-Employee Directors. From time to time the Board may increase the size of
the Committee and appoint additional members thereto, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however caused, or remove all members of the Committee and thereafter directly administer
the Plan. 
 Directors who are eligible for Awards or have received Awards may vote on any matters affecting the administration of the Plan
or the grant of Awards, except that no such member will act upon the grant of an Award to himself or herself, but any such member may be counted in determining the existence of a quorum at any meeting of the Board during which action is taken with
respect to the grant of Awards to himself or herself. 
  

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 The Board will have full authority to grant Awards under this Plan and determine the terms of such
Awards. Such authority will include the right to: 
 (a) select the persons to whom Awards are granted (consistent with the eligibility
conditions set forth in Section 4); 
 (b) determine the type of Award to be granted; 
 (c) determine the number of Shares, if any, to be covered by each Award; 
 (d) establish the terms and conditions of each Award Agreement; 
 (e) determine whether and under what
circumstances an Option may be exercised without a payment of cash under Section 5(d); 
 (f) select the Performance Factors used
to determine whether the performance goals established by the Board and applicable to Performance Awards have been satisfied; and 
 (g)
determine whether, to what extent and under what circumstances Shares and other amounts payable with respect to an Award may be deferred either automatically or at the election of the Participant. 
 The Board will have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it, from time to
time, deems advisable; to establish the terms and form of each Award Agreement; to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement); and to otherwise supervise the administration of the
Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it deems necessary to carry out the intent of the Plan. 
 All decisions made by the Board pursuant to the provisions of the Plan will be final and binding on all persons, including the Company and Participants.
No Director will be liable for any good faith determination, act or omission in connection with the Plan or any Award. 
 SECTION 3.
Shares Subject to the Plan. 
 (a) Shares Subject to the Plan. The Shares to be subject to or related to Awards under the
Plan will be authorized and unissued Shares of the Company, whether or not previously issued and subsequently acquired by the Company. The maximum number of Shares that may be issued in respect of Awards under the Plan is 2,500,000. The Company will
reserve for the purposes of the Plan, out of its authorized and unissued Shares, such number of Shares. Notwithstanding the foregoing, no individual may granted Options with respect to more than 500,000 Shares in any calendar year. In addition,
notwithstanding the foregoing, no more than 500,000 Shares from the maximum number of Shares that may be issued in respect of Awards under the Plan may be issued pursuant Sections 7, 8 and 9 of the Plan. 
  

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 (b) Effect of the Expiration or Termination of Awards. If and to the extent that an Option
expires, terminates or is canceled or forfeited for any reason without having been exercised in full, the Shares associated with that Option will again become available for grant under the Plan. Similarly, if and to the extent an Award of Restricted
Stock, Restricted Stock Unit or any Performance Award is canceled, forfeited or repurchased for any reason, the Shares subject to that Award will again become available for grant under the Plan. In addition, if any Share is withheld pursuant to
Section 11(e) in settlement of a tax withholding obligation associated with an Award, that Share will again become available for grant under the Plan. Finally, if any Share is received in satisfaction of the exercise price payable upon
exercise of an Option, that Share will become available for grant under the Plan. 
 (c) Other Adjustment. In the event of any
recapitalization, stock split or combination, stock dividend or other similar event or transaction affecting the Shares, equitable substitutions or adjustments may be made by the Board, in its sole and absolute discretion: (i) to the aggregate
number, class and/or issuer of the securities reserved for issuance under the Plan; (ii) to the number, class and/or issuer of Shares subject to outstanding Options; (iii) to the exercise price of outstanding Options; (iv) to the
number, class and/or issuer of Restricted Stock and the number of Restricted Stock Units outstanding under the Plan; and (v) to the number, class and/or issuer of Shares subject to outstanding Performance Awards. 
 (d) Change in Control. Notwithstanding anything to the contrary set forth in the Plan, upon or in anticipation of any Change in Control of the
Company or any of its Affiliates, the Board may, in its sole and absolute discretion and without the need for the consent of any Participant, take one or more of the following actions contingent upon the occurrence of that Change in Control:
(i) cause any or all outstanding Options to become vested and/or immediately exercisable, in whole or in part; (ii) accelerate the expiration date of any option, provided that the Participant is given notice of such acceleration and a
period in which to exercise any vested and exercisable Option prior to the accelerated expiration date; (iii) cause any or all outstanding Restricted Stock, Restricted Stock Units or Performance Awards to become non-forfeitable, in whole or in
part; (iv) cancel any Option in exchange for a substitute option in a manner consistent with the requirements of Treas. Reg. §1.424-1(a) or any successor regulation adopted by the Treasury Department (notwithstanding the fact
that the original Option may never have been intended to satisfy the requirements for treatment as an Incentive Stock Option); (v) cancel any Restricted Stock, Restricted Stock Units or Performance Award in exchange for restricted stock,
restricted stock units or performance award in respect of the capital stock of any successor corporation or its parent; (vi) cancel any Option in exchange for cash and/or other substitute consideration with a value equal to (A) the number
of Shares subject to that Option , multiplied by (B) the amount, if any, by which the Fair Market Value per Share on the date of the Change in Control exceeds the exercise price of that Option; provided, that if the Fair Market Value per
Share on the date of the Change in Control does not exceed the exercise price of any such Option, the Board may cancel that Option without any payment of consideration therefor; or (vii) cancel any Restricted Stock Unit in exchange for cash
and/or other substitute consideration with a value equal to the Fair Market Value per Share on the date of the Change in Control. In the discretion of the Board, any cash or substitute consideration payable upon cancellation of an Award may be
subjected to vesting terms substantially identical to those that applied to the cancelled Award immediately prior to the Change in Control. 
  

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 SECTION 4. Eligibility. Employees, Directors, consultants, and other individuals who
provide services to the Company or its Affiliates are eligible to be granted Awards under the Plan; provided, however, that only employees of the Company, its Parent or a Subsidiary are eligible to be granted Incentive Stock Options.

 SECTION 5. Options. Options granted under the Plan may be of two types: (i) Incentive Stock Options or
(ii) Non-Qualified Stock Options. Any Option granted under the Plan will be in such form as the Board may at the time of such grant approve. Without limiting the generality of 0 3(a), any or all of the Shares reserved for issuance under
Section 3(a) may be issued in respect of Incentive Stock Options. 
 The Award Agreement evidencing any Option will incorporate
the following terms and conditions and will contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion: 
 (a) Option Price. The exercise price per Share purchasable under any Option will be determined by the Board and will not be less than 100% of the
Fair Market Value per Share on the date of the grant. However, any Incentive Stock Option granted to any Participant who, at the time the Option is granted, owns more than 10% of the voting power of all classes of shares of the Company, its Parent
or a Subsidiary will have an exercise price per Share of not less than 110% of Fair Market Value per Share on the date of the grant. Notwithstanding any provision in the Plan to the contrary, no Option may be re-priced without shareholder approval.

 (b) Option Term. The term of each Option will be fixed by the Board, but no Option will be exercisable more than 10 years after the
date the Option is granted; provided that an Option granted to any Participant whose principal place of employment is outside the United States of America may be exercisable for more than 10 years after the date the Option is granted, as determined
by the Board. However, any Incentive Stock Option granted to any Participant who, at the time such Option is granted, owns more than 10% of the voting power of all classes of shares of the Company, its Parent or a Subsidiary may not have a term of
more than five years. No Option may be exercised by any person after expiration of the term of the Option. 
 (c) Exercisability.
Options will vest and be exercisable at such time or times and subject to such terms and conditions as determined by the Board at the time of grant. Notwithstanding anything in the Plan to the contrary, the grant of any Option to a Covered Employee
under the Plan shall be established in conformity with Section 162(m) of the Code and Treas. Reg. 1-162.27(e)(2)(vi) or any successor regulation adopted by the Treasury Department. 
 (d) Method of Exercise. Subject to the exercisability provisions of Section 5(c) and the termination provisions set forth in
Section 6 and the applicable Award Agreement, Options may be exercised in whole or in part at any time and from time to time during the term of the Option, by the delivery of written notice of exercise by the Participant to the Company
specifying the number of Shares to be purchased. Such notice will be accompanied by payment in full of the purchase price, either by certified or bank check, or such other means as the Board may accept. As determined by the Board, in its sole
discretion, at or after grant, payment in full or in part of the exercise price of an Option may be made in the form of previously acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised; 

  

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provided, however, that, in the case of an Incentive Stock Option, the right to make a payment in the form of previously acquired Shares may be
authorized only at the time the Option is granted. 
 No Shares will be issued upon exercise of an Option until full payment therefor has
been made, including, without limitation, the amount of any applicable withholding tax. A Participant will not have the right to distributions or dividends or any other rights of a stockholder with respect to Shares subject to the Option until the
Participant has given written notice of exercise, has paid in full for such Shares, if requested, has given the representation described in Section 11(a) hereof and fulfills such other conditions as may be set forth in the applicable
Award Agreement. 
 (e) Incentive Stock Option Limitations. In the case of an Incentive Stock Option, the aggregate Fair Market Value
(determined as of the time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year under the Plan and/or any other plan of the Company, its Parent or any
Subsidiary will not exceed $100,000. For purposes of applying the foregoing limitation, Incentive Stock Options will be taken into account in the order granted. To the extent any Option does not meet such limitation, that Option will be treated for
all purposes as a Non-Qualified Stock Option. 
 (f) Termination of Service. Unless otherwise specified in the applicable Award
Agreement, Options will be subject to the terms of Section 6 with respect to exercise upon or following termination of employment or other service. 
 (g) Transferability of Options. Except as may otherwise be specifically determined by the Board with respect to a particular Option: (i) no Option will be transferable by the Participant other than by will
or by the laws of descent and distribution, and (ii) during the Participant’s lifetime, an Option will be exercisable only by the Participant (or, in the event of the Participant’s Disability, by his personal representative).

 SECTION 6. Termination of Service. Unless otherwise specified with respect to a particular Option in the applicable Award
Agreement, all Options granted hereunder will remain exercisable after termination of service only to the extent specified in this Section 6. 
 (a) Termination by Reason of Death. If a Participant’s service with the Company or any Affiliate terminates by reason of death, any Option held by such Participant may thereafter be exercised, to the
extent then exercisable or on such accelerated basis as the Board may determine at or after grant, by the legal representative of the estate or by the legatee of the Participant under the will of the Participant, for a period expiring (i) at
such time as may be specified by the Board at or after grant, or (ii) if not specified by the Board, then 12 months from the date of death, or (iii) if sooner than the applicable period specified under (i) or (ii) above, upon the
expiration of the stated term of such Option. 
 (b) Termination by Reason of Disability. If a Participant’s service with the
Company or any Affiliate terminates by reason of Disability, any Option held by such Participant may thereafter be exercised by the Participant or his personal representative, to the extent it was exercisable at the time of termination, or on such
accelerated basis as the Board may determine 

  

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at or after grant, for a period expiring (i) at such time as may be specified by the Board at or after grant, or (ii) if not specified by the
Board, then 12 months from the date of termination of service, or (iii) if sooner than the applicable period specified under (i) or (ii) above, upon the expiration of the stated term of such Option. 
 (c) Cause. If a Participant’s service with the Company or any Affiliate is terminated for Cause: (i) any Option not already exercised
will be immediately and automatically forfeited as of the date of such termination, and (ii) any Shares for which the Company has not yet delivered share certificates will be immediately and automatically forfeited and the Company will refund
to the Participant the Option exercise price paid for such Shares, if any. 
 (d) Other Termination. If a Participant’s service
with the Company or any Affiliate terminates for any reason other than death, Disability or Cause, any Option held by such Participant may thereafter be exercised by the Participant, to the extent it was exercisable at the time of such termination,
or on such accelerated basis as the Board may determine at or after grant, for a period expiring (i) at such time as may be specified by the Board at or after grant, or (ii) if not specified by the Board, then 90 days from the date of
termination of service, or (iii) if sooner than the applicable period specified under (i) or (ii) above, upon the expiration of the stated term of such Option. 
 SECTION 7. Restricted Stock. 
 (a) Issuance. Restricted Stock may be issued either alone or in conjunction with other Awards. The Board will determine the time or times within which Restricted Stock may be subject to forfeiture, and all other conditions of such
Awards. 
 (b) Awards. The Award Agreement evidencing the grant of any Restricted Stock will contain such terms and conditions, not
inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion. The prospective recipient of an Award of Restricted Stock will not have any rights with respect to such Award, unless and until such
recipient has delivered to the Company an executed Award Agreement and has otherwise complied with the applicable terms and conditions of such Award. The purchase price for Restricted Stock may, but need not, be zero. 
 (c) Certificates. A share certificate will be issued in connection with each Award of Restricted Stock. Such certificate will be registered in the
name of the Participant receiving the Award, and will bear the following legend and/or any other legend required by this Plan, the Award Agreement or by applicable law: 
  

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 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
CONDITIONS OF THE ANTARES PHARMA, INC. 2006 EQUITY INCENTIVE PLAN AND AN AWARD AGREEMENT ENTERED INTO BETWEEN [THE PARTICIPANT] AND ANTARES PHARMA, INC. (WHICH TERMS AND CONDITIONS MAY INCLUDE, WITHOUT LIMITATION, CERTAIN TRANSFER RESTRICTIONS,
REPURCHASE RIGHTS AND FORFEITURE CONDITIONS). COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES OF ANTARES PHARMA, INC. AND WILL BE MADE AVAILABLE TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF
THE COMPANY. 
 Share certificates evidencing Restricted Stock will be held in custody by the Company or in escrow by an escrow agent until the
restrictions thereon have lapsed. As a condition to any Award of Restricted Stock, the Participant may be required to deliver to the Company a share power, endorsed in blank, relating to the Shares covered by such Award. 
 (d) Restrictions and Conditions. The Award Agreement evidencing the grant of any Restricted Stock will incorporate the following terms and
conditions and such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion: 
 (i) During a period commencing with the date of an Award of Restricted Stock and ending at such time or times as specified by the Board
(the “Restriction Period”), the Participant will not be permitted to sell, transfer, pledge, assign or otherwise encumber Restricted Stock awarded under the Plan. The Board may condition the lapse of restrictions on Restricted Stock
upon the continued employment or service of the recipient, the attainment of specified individual or corporate performance goals, or such other factors as the Board may determine, in its sole and absolute discretion. 
 (ii) Except as provided in this paragraph (ii) or the applicable Award Agreement, once the Participant has been issued a certificate
or certificates for Restricted Stock, the Participant will have, with respect to the Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the Shares, and the right to receive any cash distributions or
dividends. The Board, in its sole discretion, may require cash distributions or dividends to be subjected to the same Restriction Period as is applicable to the Restricted Stock with respect to which such amounts are paid, or, if the Board so
determines, reinvested in additional Restricted Stock to the extent Shares are available under Section 3(a) of the Plan. Any distributions or dividends paid in the form of securities with respect to Restricted Stock will be subject to
the same terms and conditions as the Restricted Stock with respect to which they were paid, including, without limitation, the same Restriction Period. 
  

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 (iii) Subject to the provisions of the applicable Award Agreement, if a
Participant’s service with the Company and it Affiliates terminates prior to the expiration of the applicable Restriction Period, the Participant’s Restricted Stock that then remains subject to forfeiture will then be forfeited
automatically. 
 (iv) If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject
to such Restriction Period (or if and when the restrictions applicable to Restricted Stock are removed pursuant to Section 3(d) or otherwise), the certificates for such Shares will be replaced with new certificates, without the
restrictive legends described in Section 7(c) applicable to such lapsed restrictions, and such new certificates will be delivered to the Participant, the Participant’s representative (if the Participant has suffered a Disability),
or the Participant’s estate or heir (if the Participant has died). 
 SECTION 8. Restricted Stock Units. Subject to the
other terms of the Plan, the Board may grant Restricted Stock Units to eligible individuals and may impose conditions on such units as it may deem appropriate. Each Restricted Stock Unit shall be evidenced by an Award Agreement in the form that is
approved by the Board and that is not inconsistent with the terms and conditions of the Plan. Each Restricted Stock Unit will represent a right to receive from the Company, upon fulfillment of any applicable conditions, an amount equal to the Fair
Market Value (at the time of the distribution) of one Share. Distributions may be made in cash and/or Shares. All other terms governing Restricted Stock Units, such as vesting, time and form of payment and termination of units shall be set forth in
the applicable Award Agreement. 
 SECTION 9. Performance Awards.  
 (a) Awards and Award Periods. The Board may grant Awards to any person eligible to participate in the Plan in accordance with Section 4,
representing the right to receive a payment contingent upon the extent to which certain predetermined performance targets have been met during an Award Period (a “Performance Award”). Each Performance Award shall have an Award Period that
is a minimum of 1 year from the date of grant; provided, however, that (i) the award may become non-forfeitable according to the terms of the applicable Award Agreement during the 1-year (or longer) Award Period in installments as a result of
the Participant’s continued employment with the Company or other basis and (ii) the Board may set forth in the applicable Award Agreement provisions that allow for payment of some or all of the Award prior to the end of the applicable
Award Period in circumstances that, to the extent necessary, comply with the conditions in Section 409A of the Code to avoid the tax and related interest for non-compliance set forth in such Section. For purposes of this Section 9, an
“Award Period” means the period during which all or a portion of an Award shall be forfeitable by the Participant, as set forth in the applicable Award Agreement. The Board, in its discretion and under such terms as it deems appropriate,
may permit newly eligible individuals, such as those who are promoted or newly hired, to receive Performance Awards after an Award Period has commenced. 
 (b) Performance Targets. The performance targets may include such goals related to the performance of the Company or, where relevant, any parent or subsidiary and/or the performance of the Participant, as may
be established by the Board in its discretion. In the 

  

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case of Performance Awards to “covered employees” (as defined in Section 162(m) of the Code), the Board shall cause to be set forth in the
applicable Award Agreement one or more of the Performance Factors (defined in Section 1(u), above) that will be used to measure performance, and the specific performance goals applicable to each Performance Factor so selected. The performance
targets established by the Board may vary for different Award Periods and need not be the same for each Participant receiving a Performance Award in an Award Period. Except to the extent inconsistent with the performance-based compensation exception
under Section 162(m) of the Code, in the case of Performance Awards granted to employees to whom such section is applicable, the Board in its discretion but only under extraordinary circumstances as determined by the Board, may change any prior
determination of performance targets for any Award Period at any time prior to the final determination of the Award when events or transactions occur to cause the performance targets to be an inappropriate measure of achievement. 
 (c) Earning Performance Awards. The Board, at or as soon as practicable after the date of grant, shall prescribe, and set forth in the applicable
Award Agreement, a formula to determine the percentage of the Performance Award to be earned based upon the degree of attainment of the applicable performance targets. 
 (d) Payment of Earned Performance Awards. Payments of earned Performance Awards shall be made in cash, Shares, or a combination of cash and Shares, in the discretion of the Board. The Board, in its sole
discretion, may define and set forth in the applicable Award agreement such terms and conditions with respect to the payment of earned Performance Awards as it may deem desirable. 
 (e) Termination of Employment or Other Relationship With Company. In the event of a termination of the Participant’s employment with or
performance of services for the Company or its Affiliates, the Participant’s Performance Awards shall be forfeited; provided, however, that the Board may set forth in the applicable Award Agreement provisions that allow for payment of some or
all of the Performance Award prior to the end of the applicable performance period in circumstances that, to the extent necessary, comply with the conditions in Section 409A of the Code to avoid the tax and related interest for non-compliance
set forth in such Section. 
 SECTION 10. Amendments and Termination. The Board may amend, alter or discontinue the Plan at any
time. However, except as otherwise provided in Section 3, no amendment, alteration or discontinuation will be made which would impair the rights of a Participant with respect to an Award without that Participant’s consent or which,
without the approval of such amendment within 365 days of its adoption by the Board by the Company’s stockholders in a manner consistent with Treas. Reg. § 1.422-3, would: (i) increase the total number of Shares reserved for issuance
hereunder, or (ii) change the persons or class of persons eligible to receive Awards. 
 SECTION 11. General Provisions.

 (a) The Board may require each Participant to represent to and agree with the Company in writing that the Participant is acquiring
securities of the Company for investment 

  

 12 

 
purposes and without a view to distribution thereof and as to such other matters as the Board believes are appropriate. The certificate evidencing any Award
and any securities issued pursuant thereto may include any legend which the Board deems appropriate to reflect any restrictions on transfer and compliance with applicable securities laws. 
 (b) All certificates for Shares or other securities delivered under the Plan will be subject to such share-transfer orders and other restrictions as the
Board may deem advisable under the rules, regulations and other requirements of the Securities Act of 1933, as amended, the Exchange Act, any stock exchange upon which the Shares are then listed, and any other applicable federal or state securities
law, and the Board may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 (c) Nothing contained in the Plan will prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required. 
 (d) Neither the adoption of the Plan nor the execution of any document in connection with the Plan will: (i) confer upon any employee of the Company
or an Affiliate any right to continued employment or engagement with the Company or such Affiliate, or (ii) interfere in any way with the right of the Company or such Affiliate to terminate the employment of any of its employees at any time.

 (e) No later than the date as of which an amount first becomes includible in the gross income of the Participant for federal income tax
purposes with respect to any Award under the Plan, the Participant will pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any federal, state or local taxes of any kind required by law to be withheld with
respect to such amount. Unless otherwise determined by the Board, the minimum required withholding obligations may be settled with Shares, including Shares that are part of the Award that gives rise to the withholding requirement. The obligations of
the Company under the Plan will be conditioned on such payment or arrangements and the Company will have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. 
 SECTION 12. Effective Date of Plan. Subject to the approval of the Plan by the Company’s stockholders within 12 months of the
Plan’s adoption by the Board, the Plan will become effective on the date that it is adopted by the Board. 
 SECTION 13. Term of
Plan. The Plan will continue in effect until terminated in accordance with Section 8; provided, however, that no Incentive Stock Option will be granted hereunder on or after the 10th anniversary of the date of stockholder
approval of the Plan (or, if the stockholders approve an amendment that increases the number of shares subject to the Plan, the 10th anniversary of the date of such approval); but provided further, that Incentive Stock Options granted prior to such 10th anniversary may extend beyond that date. 
 SECTION 14. Invalid Provisions. In
the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as 

  

 13 

 
invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable
provision was not contained herein. 
 SECTION 15. Governing Law. The Plan and all Awards granted hereunder will be governed by
and construed in accordance with the laws and judicial decisions of the State of Delaware, without regard to the application of the principles of conflicts of laws. 
 SECTION 16. Board Action. Notwithstanding anything to the contrary set forth in the Plan, any and all actions of the Board or Committee, as the case may be, taken under or in connection with the Plan and
any agreements, instruments, documents, certificates or other writings entered into, executed, granted, issued and/or delivered pursuant to the terms hereof, will be subject to and limited by any and all votes, consents, approvals, waivers or other
actions of all or certain stockholders of the Company or other persons required by: 
 (a) the Company’s Certificate of Incorporation
(as the same may be amended and/or restated from time to time); 
 (b) the Company’s Bylaws (as the same may be amended and/or restated
from time to time); and 
 (c) any other agreement, instrument, document or writing now or hereafter existing, between or among the Company
and its stockholders or other persons (as the same may be amended from time to time). 
 SECTION 17. Notices. Any notice to be
given to the Company pursuant to the provisions of this Plan must be given in writing and addressed, if to the Company, to its principal executive office to the attention of its Chief Financial Officer (or such other person as the Company may
designate in writing from time to time), and, if to a Participant, to the address contained in the Company’s personnel files, or at such other address as that Participant may hereafter designate in writing to the Company. Any such notice will
be deemed duly given: if delivered personally or via recognized overnight delivery service, on the date and at the time so delivered; if sent via telecopier or email, on the date and at the time telecopied or emailed with confirmation of delivery;
or, if mailed, five (5) days after the date of mailing by registered or certified mail. 
 ADOPTION AND APPROVAL OF PLAN

 Date Plan adopted by Board: January 25, 2006 
 Date Plan approved by Stockholders: May 4, 2006 
 Effective Date of Plan: January 25, 2006

  

 14CMGFSC Purchase Agreement dated as of March 7, 2002

 Exhibit 10.25 
 EXECUTION COPY 
 CMGFSC PURCHASE AGREEMENT 
 Dated as of March 7, 2002 
 by and between 
 CENDANT MOBILITY SERVICES CORPORATION 
 as Originator 
 and 
 CENDANT MOBILITY GOVERNMENT FINANCIAL SERVICES CORPORATION 
 as Buyer 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	 Page

	 ARTICLE I
 DEFINITIONS

	
	 ARTICLE II
 SALE AND PURCHASE OF ASSETS

			
	 Section 2.1
	  	Sale and Purchase	  	2
			
	 Section 2.2
	  	Purchases	  	3
			
	 Section 2.3
	  	No Assumption	  	3
			
	 Section 2.4
	  	No Recourse	  	4
			
	 Section 2.5
	  	True Sales	  	4
			
	 Section 2.6
	  	Servicing of CMSC Purchased Assets	  	4
			
	 Section 2.7
	  	Financing Statements	  	4
	
	 ARTICLE III
 CALCULATION OF CMGFSC PURCHASE PRICE

			
	 Section 3.1
	  	Calculation of the CMGFSC Purchase Price	  	5
	
	 ARTICLE IV
 PAYMENT OF CMGFSC PURCHASE PRICE

			
	 Section 4.1
	  	CMGFSC Purchase Price Payments.	  	5
			
	 Section 4.2
	  	Payments and Computations, Etc.	  	6
	
	 ARTICLE V
 CONDITIONS PRECEDENT

			
	 Section 5.1
	  	Conditions Precedent to Sales and Purchases	  	6
	
	 ARTICLE VI
 REPRESENTATIONS AND WARRANTIES

			
	 Section 6.1
	  	Representations and Warranties of the Originator	  	6
			
	 Section 6.2
	  	Representations and Warranties of the Buyer	  	12
	
	 ARTICLE VII
 GENERAL COVENANTS

			
	 Section 7.1
	  	Affirmative Covenants of the Originator	  	12
			
	 Section 7.2
	  	Reporting Requirements	  	16
			
	 Section 7.3
	  	Negative Covenants of the Originator	  	18
			
	 Section 7.4
	  	Affirmative Covenants of the Buyer	  	19

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 ARTICLE VIII
 ADDITIONAL RIGHTS AND OBLIGATIONS IN
 RESPECT OF THE CMSC PURCHASED ASSETS

			
	 Section 8.1
	  	Rights of the Buyer	  	21
			
	 Section 8.2
	  	Responsibilities of the Originator	  	21
			
	 Section 8.3
	  	Further Action Evidencing Purchases	  	22
			
	 Section 8.4
	  	CMSC Collections; Rights of the Buyer and its Assignees	  	23
	
	 ARTICLE IX
 TERMINATION

			
	 Section 9.1
	  	CMGFSC Purchase Termination Events	  	23
			
	 Section 9.2
	  	Purchase Termination	  	24
	
	 ARTICLE X
 INDEMNIFICATION; SECURITY INTEREST

			
	 Section 10.1
	  	Indemnities by the Originator	  	25
			
	 Section 10.2
	  	Security Interest	  	27
	
	 ARTICLE XI
 MISCELLANEOUS

			
	 Section 11.1
	  	Amendments; Waivers, Etc.	  	27
			
	 Section 11.2
	  	Notices, Etc.	  	27
			
	 Section 11.3
	  	Cumulative Remedies	  	28
			
	 Section 11.4
	  	Binding Effect; Assignability; Survival of Provisions	  	28
			
	 Section 11.5
	  	Governing Law	  	28
			
	 Section 11.6
	  	Costs, Expenses and Taxes	  	28
			
	 Section 11.7
	  	Submission to Jurisdiction	  	28
			
	 Section 11.8
	  	Waiver of Jury Trial	  	29
			
	 Section 11.9
	  	Integration	  	29
			
	 Section 11.10
	  	Captions and Cross References	  	30
			
	 Section 11.11
	  	Execution in Counterparts	  	30
			
	 Section 11.12
	  	Acknowledgment and Consent	  	30
			
	 Section 11.13
	  	No Partnership or Joint Venture	  	31
			
	 Section 11.14
	  	No Proceedings	  	31

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 Section 11.15
	  	Severability of Provisions	  	31
			
	 Section 11.16
	  	Recourse to the Buyer	  	31
			
	 Section 11.17
	  	Confidentiality	  	31

  

 -iii- 

			
	APPENDIX
		
	 APPENDIX A
	  	 Definitions

	
	SCHEDULES
		
	 SCHEDULE 2.1
	  	 List of Pool Relocation Management Agreements

		
	 SCHEDULE 6.1(n)
	  	 Principal Place of Business and Chief Executive Office of the Originator and List of Offices Where the Originator Keeps CMSC
Records

		
	 SCHEDULE 6.1(s)
	  	 List of Legal Names for Cendant Mobility Services Corporation

		
	 SCHEDULE 11.2
	  	 Notice Addresses

	
	EXHIBITS
		
	 EXHIBIT 2.1
	  	 Form of Notice of Additional Pool Relocation Management Agreements

		
	 EXHIBIT 6.1(u)
	  	 Credit and Collection Policy

  

 -iv- 

 CMGFSC PURCHASE AGREEMENT 
 THIS CMGFSC PURCHASE AGREEMENT (this “Agreement”) dated as of March 7, 2002 made by and between CENDANT MOBILITY SERVICES CORPORATION, a Delaware corporation, as originator (the
“Originator”) and CENDANT MOBILITY GOVERNMENT FINANCIAL SERVICES CORPORATION, a Delaware corporation, as buyer (the “Buyer”). 
 WHEREAS, the Originator wishes to sell CMSC Receivables and CMSC Related Assets that it now owns and CMSC Receivables and CMSC Related Assets that it from time to time hereafter will own to the Buyer, and the Buyer is
willing to purchase such CMSC Receivables and CMSC Related Assets from the Originator from time to time, on the terms and subject to the conditions contained in this Agreement; and 
 WHEREAS, the Buyer intends to transfer the CMSC Purchased Assets, together with additional CMSC Receivables and CMSC Related Assets that the Buyer from
time to time hereafter will own, to Kenosia Funding, LLC (the “Issuer”) from and after the Closing Date pursuant to the terms of the Receivables Purchase Agreement; and 
 WHEREAS, the Issuer will pledge the same, together with all its other assets and properties now owned or hereafter acquired, to The Bank of New York (the
“Trustee”) as security for the timely payment as and when due or to become due to any Series 2002-1 Noteholder, including Gotham Funding Corporation and certain liquidity providers to Gotham Funding Corporation, of all principal and
interest due on the Series 2002-1 Notes and of all other amounts due pursuant to the Transaction Documents; 
 NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Capitalized terms used and not otherwise defined in this Agreement have the meanings specified in Part A of Appendix A. In addition, this Agreement shall be interpreted in accordance with the conventions set forth in
Parts B, C and D of Appendix A. 

 ARTICLE II 
 SALE AND PURCHASE OF ASSETS 
 Section 2.1 Sale and Purchase. 
 (a) Agreement. Upon the terms and subject to the conditions hereof, the Buyer agrees to buy, and the Originator agrees to sell, all of the
Originator’s right, title and interest in and to the following: 
 (i) all Receivables other than KF Receivables owned by
the Originator at the close of business on the Business Day preceding the Closing Date or thereafter created and arising (collectively, the “Equity Receivables”); 
 (ii) all Related Property with respect to the Equity Receivables (collectively, the “Equity Related Property”);

 (iii) all CMSC Collections; 
 (iv) all proceeds of and earnings on any of the foregoing; and 
 (v) all of the right, title
and interest, if any, CMSC has in, to or under the CMGFSC Designated Receivables, including all Related Property with respect thereto, rights, if any, to reimbursement of, or interest on, such CMGFSC Designated Receivables and all proceeds thereof;

 it being understood and agreed that the Originator does not hereby sell, transfer or convey any of its right, title or interest in any CMGFSC
Excluded Assets or CMGFSC Excluded Contracts. 
 The items listed above in clauses (ii), (iii) and (iv), whenever and wherever arising,
are collectively referred to herein as the “Equity Related Assets.” The Equity Receivables and the Equity Related Assets are sometimes collectively referred to herein as the “Equity Assets.” 
 It is the intent of the parties hereto that CMSC not have any right, title, or interest in, to, or under the CMGFSC Designated Receivables or the other
property listed in clause (v) above, and such CMGFSC Designated Receivables and other property is included in the property being sold hereunder solely in case it should be determined, contrary to the intent of the parties hereto, that CMSC does
have any right, title, or interest in the CMGFSC Designated Receivables or the other property listed in clause (v) above. 
 As used
herein, “CMSC Receivables” means Equity Receivables that are being Purchased or have been Purchased by the Buyer hereunder; “CMSC Related Property” means Equity Related Property that is being Purchased or has been
Purchased by the Buyer hereunder; “CMSC Related Assets” means Equity Related Assets that are being Purchased or have been Purchased by the Buyer hereunder; and “CMSC Purchased Assets” means Equity Assets that are
being Purchased or have been Purchased by the Buyer hereunder. 
  

 2 

 Schedule 2.1 sets forth a list of all Relocation Management Agreements subject to this Agreement (each, a
“Pool Relocation Management Agreement”) as of the Closing Date. Each new Relocation Management Agreement that is not a CMGFSC Excluded Contract and that is entered into by the Originator during any month shall be added to the Pool
Relocation Management Agreements on or after the last day of such month by delivering a written notice in the form of Exhibit 2.1 to the Buyer or its designee, whereupon Schedule 2.1 shall be amended by the Originator to add such new Relocation
Management Agreement to the list of Pool Relocation Management Agreements set forth therein. A copy of such Exhibit 2.1 appended to the Monthly Originator Report for such month, upon delivery to the Trustee, shall be sufficient evidence of
inclusion. On or prior to the date of the delivery of any such notice, the Originator shall indicate, or cause to be indicated, in its computer files, books and records that the CMSC Receivables and other CMSC Purchased Assets then existing and
thereafter created pursuant to or in connection with each such Pool Relocation Management Agreement are being transferred to the Buyer pursuant to this Agreement. 
 (b) Treatment of Certain Receivables and Related Assets. It is expressly understood that (i) each CMSC Receivable sold to the Buyer hereunder, together with all CMSC Related Assets then existing or
thereafter created and arising with respect thereto, will thereafter be the property of the Buyer (or its assignees), without the necessity of any further purchase or other action by the Buyer (other than satisfaction of the conditions set forth
herein) and (ii) the change of a Receivable’s status from that of Unsold Home Receivable to Unbilled Receivable or from Unbilled Receivable to Billed Receivable shall not be deemed the creation of a new Receivable for any purpose.

 Section 2.2 Purchases. On the Closing Date, the Buyer shall purchase all of the Originator’s right, title and interest in
and to all Equity Assets and any property described in clause (v) of Section 2.1(a) existing as of the close of business on the immediately preceding Business Day. On each Business Day thereafter until the Termination Date, the Buyer
shall purchase all of the Originator’s right, title and interest in and to all Equity Assets and any property described in clause (v) of Section 2.1(a) existing as of the close of business on the immediately preceding Business
Day that were not previously purchased by the Buyer hereunder. Notwithstanding the foregoing, if an Insolvency Proceeding is pending with respect to either the Originator or the Buyer prior to the Termination Date, the Originator shall not sell, and
the Buyer shall not buy, any Equity Assets hereunder unless and until such Insolvency Proceeding is dismissed or otherwise terminated. 
 Section 2.3 No Assumption. The sales and Purchases of CMSC Purchased Assets do not constitute and are not intended to result in a creation or an assumption by the Buyer or its successors and assigns of any obligation of the
Originator or any other Person in connection with the CMSC Purchased Assets (other than any such obligations as may arise solely from the ownership of CMSC Receivables) or under the related Contracts or any other agreement or instrument relating
thereto, including without limitation any obligation to any Obligors or Transferred Employees. None of the Servicer, the Buyer or the Buyer’s assignees 
  

 3 

 shall have any obligation or liability to any Obligor, Transferred Employee or other customer or client of the Originator
(including without limitation any obligation to perform any of the obligations of the Originator under any Relocation Management Agreement, CMSC Home Purchase Contract, CMSC Related Property, CMSC Fee Related Property or any other agreement), except
such obligations as may arise from the ownership of the CMSC Receivables. Except as expressly provided in Section 3.05(k) of the Servicing Agreement, no such obligation or liability to any Obligor, Transferred Employee or other customer or
client of the Originator is intended to be assumed by the Servicer or its successors and assigns hereunder or under the Servicing Agreement, and any such assumption is expressly disclaimed. 
 Section 2.4 No Recourse. Except as specifically provided in this Agreement, the sale and Purchase of the CMSC Purchased Assets and any
interest of CMSC in and to the CMGFSC Designated Receivables and other property described in clause (v) of Section 2.1(a) under this Agreement shall be without recourse to the Origination; provided, however, that the
Originator shall be liable to the Buyer and the Buyer’s assignees pursuant to the Transaction Documents for all representations, warranties, covenants and indemnities made by it pursuant to the terms of this Agreement or any other Transaction
Document (it being understood that such obligations of the Originator will not arise solely on account of the credit-related inability of an Obligor to pay a Receivable). 
 Section 2.5 True Sales. The Originator and the Buyer intend the transfers of CMSC Purchased Assets hereunder to be true sales by the
Originator to the Buyer that are absolute and irrevocable and to provide the Buyer with the full benefits of ownership of the CMSC Purchased Assets, and neither the Originator nor the Buyer intends the transactions contemplated hereunder to be, or
for any purpose to be characterized as, loans from the Buyer to the Originator, secured by the CMSC Purchased Assets. 
 Section 2.6
Servicing of CMSC Purchased Assets. Consistent with the Buyer’s ownership of all CMSC Purchased Assets and subject to the terms of the Pool Relocation Management Agreements, as between the parties to this Agreement, the Buyer shall have
the sole right to service, administer and collect all CMSC Purchased Assets, to assign such right and to delegate such right to others. In consideration of the Buyer’s purchase of the CMSC Purchased Assets and as more fully set forth in
Section 11.12, the Originator hereby acknowledges and agrees that the Buyer intends to assign for the benefit of the Issuer and its successors and assigns the rights and interests granted by the Originator to the Buyer hereunder, and agrees to
cooperate fully with the Issuer and its successors and assigns in the exercise of such rights. 
 Section 2.7 Financing
Statements. In connection with the transfer described above, the Originator agrees, at its expense, to record and file financing statements (and continuation statements when applicable) with respect to the CMSC Purchased Assets conveyed by the
Originator meeting the requirements of applicable law in such manner and in such jurisdictions as are necessary to perfect and maintain the perfection of the transfer and assignment of its interest in the CMSC Purchased Assets to the Buyer, and to
deliver a file stamped copy of each such financing statement or other evidence of such filing to the Buyer as soon as practicable after the Closing Date; provided, however, that prior to recordation pursuant 
  

 4 

 to Section 8.3 or the sale of a CMSC Home to an Ultimate Buyer, record title to such CMSC Home may remain in the
name of the related Transferred Employee and no recordation in real estate records of the conveyance pursuant to the related CMSC Home Purchase Contract or CMSC Home Sale Contract shall be made except as otherwise required or permitted under
Section 2.01(d)(i) of the Servicing Agreement. 
 ARTICLE III 
 CALCULATION OF CMGFSC PURCHASE PRICE 
 Section 3.1 Calculation of the CMGFSC
Purchase Price. 
 (a) The Originator shall maintain accurate records with respect to (i) the Purchases of CMSC Purchased Assets to
be made and (ii) the CMGFSC Purchase Price to be paid on account of the foregoing as calculated in accordance with this Section 3.1. On the twelfth calendar day of each month (or, if such twelfth day is not a Business Day, the preceding
Business Day) from the Closing Date to the Termination Date, the Originator shall deliver to the Buyer, the Servicer, the Trustee and the Administrative Agent the portion of the Monthly Originator Report that relates to such Purchases and CMGFSC
Purchase Prices for the previous calendar month. 
 (b) With respect to the Purchase of any CMSC Purchased Assets by the Buyer from the
Originator pursuant to Article II, (i) on the Closing Date, the Buyer shall pay to the Originator a purchase price equal to $49,901,207 and (ii) thereafter, the Buyer shall pay to the Originator a purchase price equal to the fair market
value of each CMSC Purchased Asset purchased by the Buyer (each such purchase price, the “CMGFSC Purchase Price”), which will be a purchase price reflecting such factors as the Originator and the Buyer mutually agree will result in
a CMGFSC Purchase Price determined to be the fair market value of such CMSC Purchased Assets. The sale of the property described in clause (v) of Section 2. l(a) is in consideration of CMGFSC funding the CMGFSC Designated Receivables or
the obligation of the Issuer to reimburse the Servicer for advances in respect of such CMGFSC Designated Receivables. 
 ARTICLE IV

 PAYMENT OF CMGFSC PURCHASE PRICE 
 Section 4.1 CMGFSC Purchase Price Payments. On the terms and subject to the conditions of this Agreement, the Buyer shall pay to the Originator on the Closing Date the CMGFSC Purchase Price for the CMSC Purchased Assets
sold on such date. On the terms and subject to the conditions of this Agreement, the Buyer shall pay to the Originator, on each other Business Day on which any CMSC Purchased Assets are purchased from the Originator by the Buyer pursuant to Article
II, the CMGFSC Purchase Price for such CMSC Purchased Assets. 
  

 5 

 Section 4.2 Payments and Computations. Etc. All amounts to be paid by the Originator to the
Buyer hereunder shall be paid in accordance with the terms hereof no later than close of business on the day when due in United States dollars in immediately available funds to an account specified in writing from time to time by the Buyer or its
designee. Payments received by the Buyer after such time shall be deemed to have been received on the next Business Day. If any payment becomes due on a day that is not a Business Day, then such payment shall be made on the next succeeding Business
Day. The Originator shall pay to the Buyer, on demand, interest on all amounts not paid when due hereunder at a rate equal to the Prime Rate plus 2% per annum; provided, however, that such interest rate shall not at any time
exceed the maximum rate permitted by applicable law. All computations of interest payable hereunder shall be made on the basis of a year of 360 days for the actual number of days elapsed (including the first day but excluding the last day). All
payments made under this Agreement shall be made without set-off or counterclaim. 
 ARTICLE V 
 CONDITIONS PRECEDENT 
 Section 5.1
Conditions Precedent to Sales and Purchases. No Purchase of CMSC Purchased Assets shall be made hereunder on any date on which the Buyer does not have sufficient funds available to pay the CMGFSC Purchase Price. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES

 Section 6.1 Representations and Warranties of the Originator. In order to induce the Buyer to enter into this Agreement and to make
Purchases hereunder, the Originator hereby makes the representations and warranties set forth in this Section 6.1, in each case as of the date hereof, as of the Closing Date, as of the date of each Purchase hereunder and as of any other date
specified in such representation and warranty. 
 (a) Organization and Good Standing. The Originator is a corporation duly organized
and validly existing in good standing under the laws of the State of Delaware and has full power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted. The
Originator had at all relevant times, and now has, all necessary power, authority and legal right to own and sell the CMSC Purchased Assets. 
 (b) Due Qualification. The Originator is duly qualified to do business, is in good standing as a foreign corporation, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of
property or the conduct of its business requires such qualification, licenses or approvals and in which the failure so to qualify or to obtain such licenses and approvals or to preserve and maintain such qualification, licenses or approvals could
reasonably be expected to give rise to a Material Adverse Effect. 
  

 6 

 (c) Power and Authority: Due Authorization. The Originator (i) has all necessary corporate
power and authority (A) to execute and deliver this Agreement, the Contracts and the other Transaction Documents to which it is a party, (B) to perform its obligations under this Agreement, the Contracts and the other Transaction Documents
to which it is a party and (C) to sell and assign the CMSC Purchased Assets transferred hereunder on and after such date, on the terms and subject to the conditions herein and therein provided and (ii) has duly authorized by all necessary
corporate action such sale and assignment and the execution, delivery and performance of, and the consummation of the transactions provided for in, this Agreement, the Contracts and the other Transaction Documents to which it is a party. 

(d) Valid Sale: Binding Obligations. This Agreement constitutes a valid sale, transfer, set-over and conveyance to the Buyer of all of the
Originator’s right, title and interest in, to and under the CMSC Purchased Assets transferred hereunder on such date; the Buyer’s interest in the CMSC Receivables is perfected and of first priority (subject to Permitted Liens and Permitted
Exceptions) under the UCC and other applicable law, enforceable against creditors of, and purchasers from, the Originator, free and clear of any Lien (other than Permitted Liens); and this Agreement constitutes, and each other Transaction Document
to which the Originator is a party when duly executed and delivered will constitute, a legal, valid and binding obligation of the Originator, enforceable against the Originator in accordance with its terms, except (i) as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) as such enforceability may be limited by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in equity or at law. The Originator has no right, title or interest in or to any CMGFSC Home, CMGFSC Home Purchase Contract or any Receivable created or arising under any CMGFSC
Home Purchase Contract. 
 (c) No Conflict or Violation. The execution, delivery and performance of, and the consummation of the
transactions contemplated by, this Agreement and the other Transaction Documents to be signed by the Originator, and the fulfillment of the terms hereof and thereof, will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a default under (A) the certificate of incorporation or the by-laws of the Originator or (B) any material indenture, loan agreement, mortgage, deed of trust or
other material agreement or instrument to which the Originator is a party or by which it or any of its properties is bound, (ii) result in the creation or imposition of any Lien on any of the CMSC Purchased Assets pursuant to the terms of any
such material indenture, loan agreement, mortgage, deed of trust or other material agreement or instrument other than this Agreement and the other Transaction Documents or (iii) conflict with or violate any federal, state, local or foreign law
or any decision, decree, order, rule or regulation applicable to the Originator or of any federal, state, local or foreign regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Originator.

  

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 (f) Litigation and Other Proceedings. (i) There is no action, suit, proceeding or
investigation pending, or to the best knowledge of the Originator threatened, against the Originator before any court, arbitrator, regulatory body, administrative agency or other tribunal or governmental instrumentality and (ii) the Originator
is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any court or other government authority that, in the case of either of the foregoing clauses (i) or (ii), (A) asserts the invalidity of this
Agreement or any other Transaction Document, (B) seeks to prevent the sale of any CMSC Purchased Asset by the Originator to the Buyer, the creation of a material amount of CMSC Receivables or the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document, (C) seeks any determination or ruling that, in the reasonable judgment of the Originator, would materially and adversely affect the performance by the Originator of its
obligations under this Agreement or any other Transaction Document to which it is a party or the validity or enforceability of this Agreement or any other Transaction Document to which it is a party or (D) individually or in the aggregate for
all such actions, suits, proceedings and investigations could reasonably be expected to have a Material Adverse Effect. 
 (g)
Governmental Approvals. Except where the failure to obtain or make such authorization, consent, order, approval or action could not reasonably be expected to have a Material Adverse Effect, (i) all authorizations, consents, orders and
approvals of, or other actions by, any Governmental Authority that are required to be obtained by the Originator or Issuer in connection with the conveyance of the CMSC Purchased Assets transferred hereunder on and after such date, including
approval by the United States Government of the assignments of the Originator’s government contracts and approval by other non-governmental or quasi-governmental entities of assignments of Originator’s contracts with such non-governmental
or quasi-governmental entities (to the extent such contracts are included as Pool Relocation Management Contracts hereunder), or the due execution, delivery and performance by the Originator of this Agreement or any other Transaction Document to
which it is a party and the consummation of the transactions contemplated by this Agreement or any other Transaction Documents to which it is a party have been obtained or made and are in full force and effect and (ii) all filings with any
Governmental Authority that are required to be obtained in connection with such conveyance and the execution and delivery by the Originator of this Agreement have been made; provided, however, that prior to recordation pursuant to
Section 8.3 or the sale of a Home to an Ultimate Buyer, record title to such Home may remain in the name of the related Transferred Employee and no recordation in real estate records of the conveyance pursuant to the related Home Purchase
Contract or Home Sale Contract shall be made except as otherwise required or permitted under Section 2.01(d)(i) of the Servicing Agreement. 
 (h) Margin Regulations. The Originator is not engaged, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meanings of Regulations
T, U and X of the Board of Governors of the Federal Reserve System). The proceeds of the sales hereunder will not be used, directly or indirectly, to purchase or carry margin stock or to extend credit to others for such purposes. 
 (i) Taxes. The Originator has filed (or there have been filed on its behalf as a member of a consolidated group) all tax returns and reports
required by law to have been filed by 
  

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 it and has paid all taxes, assessments and governmental charges thereby shown to be owing by it, other than any such
taxes, assessments or charges that are being diligently contested in good faith by appropriate proceedings, for which adequate reserves in accordance with GAAP have been set aside on its books and that have not given rise to any Liens (other than
Permitted Liens). 
 (j) Solvency. After giving effect to the conveyance of CMSC Purchased Assets hereunder on such date, the
Originator is Solvent and able to pay its debts as they come due and has adequate capital to conduct its business as presently conducted. 
 (k) Quality of Title/Valid Transfers. 
 (i) Immediately before the Purchase to be made by the Buyer hereunder
on such date, each CMSC Purchased Asset to be sold to the Buyer shall be owned by the Originator free and clear of any Lien (other than any Permitted Lien), and the Originator shall have made all filings and shall have taken all other action under
applicable law in each relevant jurisdiction in order to protect and perfect the ownership interest of the Buyer and its successors and assigns in such CMSC Purchased Assets against all creditors of, and purchasers from, the Originator (subject to
Permitted Exceptions). 
 (ii) With respect to each CMSC Receivable transferred hereunder on such date, the Buyer shall
acquire a valid and (subject to Permitted Exceptions) perfected ownership interest in such CMSC Receivable and any identifiable proceeds thereof, free and clear of any Lien (other than any Permitted Liens). 
 (iii) Immediately prior to the sale of a CMSC Purchased Asset hereunder on such date, no effective financing statement or other instrument
similar in effect that covers all or part of any CMSC Purchased Asset or any interest therein is on file in any recording office except such as may be filed (A) in favor of the Originator in accordance with the Pool Relocation Management
Agreements, (B) in favor of the Buyer pursuant to this Agreement, (C) in favor of the Buyer’s successors and assigns pursuant to the Receivables Purchase Agreement or the Indenture or otherwise filed by or at the direction of the
Buyer’s successors and assigns or (D) to evidence any Mortgage on a CMSC Home created by a Transferred Employee. 
 (iv) The CMGFSC Purchase Price constitutes reasonably equivalent value for the CMSC Purchased Assets conveyed in consideration therefor on such date, and no purchase of an interest in such CMSC Purchased Assets by the Buyer from the
Originator constitutes a fraudulent transfer or fraudulent conveyance under the United States Bankruptcy Code or applicable state bankruptcy or insolvency laws or is otherwise void or voidable or subject to subordination under similar laws or
principles or for any other reason. 
 (l) Eligible Receivables. Each CMSC Receivable included in the CMSC Purchased Assets
transferred hereunder on such date, unless otherwise identified to the Buyer and its assignees by the Originator in the related Monthly Originator Report, is an Eligible Receivable on such date. 
  

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 (m) Accuracy of Information. All written information furnished by the Originator to the Buyer or
its successors and assigns pursuant to or in connection with any Transaction Document or any transaction contemplated herein or therein with respect to the CMSC Purchased Assets transferred hereunder on such date is true and correct in all material
respects on such date. 
 (n) Offices. The principal place of business and chief executive office of the Originator is located, and
the offices where the Originator keeps all CMSC Records (and all original documents relating thereto) are located, at the addresses specified in Schedule 6.1(n), except that (i) Home Deeds and related documents necessary to close CMSC Home sale
transactions, including powers of attorney, may be held by local attorneys or escrow agents acting on behalf of the Originator in connection with the sale of CMSC Homes to Ultimate Buyers, so long as such local attorneys are notified of the interest
of the Buyer and the Buyer’s assignees therein and (ii) CMSC Records relating to any Pool Relocation Management Agreement and the Receivables arising thereunder or in connection therewith may be maintained at the offices of the related
Employer. 
 (o) Payment Instructions to Obligors. The Originator has instructed (i) all Obligors to remit all payments on the
CMSC Purchased Assets directly to one of the Lockboxes or Lockbox Accounts, (ii) all Lockbox Banks to deposit all CMSC Collections remitted to a Lockbox directly to the related Lockbox Account and (iii) all Persons receiving CMSC Home Sale
Proceeds to deposit such CMSC Home Sale Proceeds in one of the Lockboxes or Lockbox Accounts within two Business Days after receipt, except in the States of New Mexico and Virginia where a longer escrow period of up to one week is required under
applicable law, in which case such CMSC Home Sale Proceeds shall be deposited into one of the Lockboxes or Lockbox Accounts within one Business Day after the expiration of such period. 
 (p) Investment Company Act. The Originator is not, and is not controlled by, (and by reason of the execution and delivery and performance of the
Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby will not be, and will not become) an “investment company” registered or required to be registered under the Investment Company Act.

 (q) [Reserved]. 
 (r)
ERISA. The Originator and each ERISA Affiliate are in compliance with the minimum funding requirements of ERISA. Each Plan is in compliance with all applicable material provisions of ERISA, and the Originator or the relevant ERISA Affiliate
has received a favorable determination letter from the Internal Revenue Service that each Plan intended to be qualified under Section 401(a) of the Code is so qualified. No Plan has incurred an “accumulated funding deficiency” (within
the meaning of Section 302 of ERISA or Section 412 of the Code), whether or not waived. Neither the Originator nor any ERISA Affiliate (i) has incurred or expects to incur any liability under Title IV of ERISA with respect to any Plan
that could give 
  

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 rise to a lien in favor of the PBGC other than liability for the payment of premiums, all of which have been timely paid
when due in accordance with Section 4007 of ERISA, (ii) has incurred or expects to incur any withdrawal liability within the meaning of Section 4201 of ERISA, (iii) is subject to any lien under Section 412(n) of the Code or
Sections 302(f) or 4068 of ERISA or arising out of any action brought under Sections 4070 or 4301 of ERISA or (iv) is required to provide security to a Plan under Section 401(a)(29) of the Code. The PBGC has not instituted proceedings to
terminate any Plan or to appoint a trustee or administrator of any such Plan, and no circumstances exist that constitute grounds under Section 4042 of ERISA to commence any such proceedings. Neither the Originator nor any ERISA Affiliate that
is a subsidiary of PHH is, or at any time during the past five years was, a member of, or makes, or has at any time during the past five years made, contributions to, any Multiemployer Plan. No ERISA Affiliate that is not a subsidiary of PHH is, or
at any time during the past five years was, a member of, or makes, or has at any time during the past five years made, contributions to, any Multiemployer Plan, in each case where any such action could reasonably be expected to have a Material
Adverse Effect. 
 (s) Legal Names. Except as described in Schedule 6.1(s), since January 1, 1995, the Originator (i) has
not been known by any legal name other than its corporate name as of the date hereof, except as otherwise permitted pursuant to Section 7.3(d), (ii) has not been the subject of any merger or other corporate reorganization that resulted in
a change of name, identity or corporate structure and (iii) has not used any trade names other than its actual corporate name. 
 (t)
Compliance with Applicable Laws. The Originator is in compliance with the requirements of all applicable Requirements of Law a violation of any of which, individually or in the aggregate for all such violations, is reasonably likely to have a
Material Adverse Effect. 
 (u) Credit and Collection Policy; No Material Adverse Change. The copy of the Credit and Collection Policy
of the Originator attached as Exhibit 6.1(u) to this Agreement is a true and complete copy thereof. As of the date each CMSC Purchased Asset is transferred hereunder, the Originator has complied in all applicable material respects with the Credit
and Collection Policy with respect to such CMSC Purchased Asset transferred on such date and the related Contract. There has been no material change to the Credit and Collection Policy and since January 31, 2002 there has been no material
adverse change in the financial condition, results of operations or operating condition of the Originator, in either case that would be reasonably likely to adversely affect the collectibility of any material portion of the CMSC Receivables or other
CMSC Purchased Assets or to decrease the credit quality of any newly created CMSC Receivables or other CMSC Purchased Assets. Since January 31, 2002 there has been no material adverse change in the collectibility of any material portion of the
CMSC Receivables or other CMSC Purchased Assets. 
 (v) Environmental. On such date, to the best knowledge of the Originator,
(i) there are no (A) pending or threatened claims, complaints, notices or requests for information received by the Originator with respect to any alleged violation of any Environmental Law in connection with any CMSC Home relating to any
CMSC Receivable transferred hereunder on such date or (B) pending or threatened claims, complaints, notices or requests for information 
  

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 received by the Originator regarding potential liability under any Environmental Law in connection with any CMSC Home
relating to any CMSC Receivable transferred hereunder on such date and (ii) the Originator is in material compliance with all permits, certificates, approvals, licenses and other authorizations relating to environmental matters, if any, that
are required to be held by it under any applicable Requirement of Law in connection with any CMSC Homes relating to any CMSC Receivable transferred hereunder on such date, other than those that, in the case of either clause (i) or (ii), singly
or in the aggregate, are not reasonably likely to have a Material Adverse Effect. 
 Section 6.2 Representations and Warranties of
the Buyer. The Buyer hereby represents and warrants, on and as of the date hereof and on and as of the Closing Date, that (a) this Agreement has been duly authorized, executed and delivered by the Buyer and constitutes the Buyer’s
valid, binding and legally enforceable obligation, except (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and
(ii) as such enforceability may be limited by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law, (b) the execution, delivery and performance of this Agreement does not
violate any federal, state, local or foreign law applicable to the Buyer or any agreement to which the Buyer is a party and (c) all of the outstanding capital stock of the Buyer is directly or indirectly owned by the Originator, and all such
capital stock is fully paid and nonassessable. 
 ARTICLE VII 
 GENERAL COVENANTS 
 Section 7.1 Affirmative Covenants of the Originator. From the Closing Date
until the termination of this Agreement in accordance with Section 11.4, the Originator hereby agrees that it will perform the covenants and agreements set forth in this Section 7.1. 
 (a) Compliance with Laws, Etc. The Originator will comply in all material respects with all applicable Requirements of Law (including without
limitation those relating to the CMSC Receivables, CMSC Home Purchase Contracts, CMSC Related Assets and all Environmental Laws affecting any CMSC Home), in each case to the extent that any such failure to comply, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect. 
 (b) Preservation of Corporate Existence. The Originator
(i) will preserve and maintain its corporate existence, rights, franchises and privileges in the jurisdiction of its incorporation (other than any change in corporate status by reason of a merger or consolidation permitted by
Section 7.3(c)) and (ii) will qualify and remain qualified in good standing as a foreign corporation in each jurisdiction in which the failure to preserve and maintain such qualification as a foreign corporation could reasonably be
expected to have a Material Adverse Effect. 
  

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 (c) Keeping of Records and Books of Account. The Originator will maintain and implement
administrative and operating procedures (including without limitation an ability to recreate records evidencing the CMSC Purchased Assets in the event of the destruction of the originals thereof) and will keep and maintain all documents, books,
records and other information that are necessary or advisable, in the reasonable determination of the Buyer, for the collection of all amounts due under any or all CMSC Purchased Assets. Upon the reasonable request of the Buyer or its assignees made
at any time after the occurrence and continuance of an Unmatured Servicer Default or a Servicer Default, the Originator will deliver copies of all CMSC Records maintained pursuant to this Section 7.1(c) to the Buyer or its designee. The
Originator will maintain at all times accurate and complete books, records and accounts relating to the CMSC Purchased Assets and all CMSC Collections, in which timely entries will be made. The Originator’s master data processing records will
be marked to indicate the sales of all CMSC Purchased Assets to the Buyer hereunder and will include without limitation all payments received and all credits and extensions granted with respect to the CMSC Purchased Assets. 
 (d) Location of Records and Offices. The Originator will keep its principal place of business and chief executive office and the offices where it
keeps all CMSC Records (and all original documents relating thereto other than those CMSC Records that are maintained with local attorneys or escrow agents or at the offices of the relevant Employer as described in Section 6.1(n)) at the
addresses specified in Schedule 6.l(n) or, upon not less than 30 days’ prior written notice given by the Originator to the Buyer and its assignees, at such other locations in jurisdictions in the United States of America where all action
required by Section 8.3 has been taken and completed. 
 (e) Separate Corporate Existence of the Buyer. The Originator hereby
acknowledges that the parties to the Transaction Documents are entering into the transactions contemplated by the Transaction Documents in reliance on the Buyer’s identity as a legal entity separate from the Originator and the other CMS
Persons. From and after the date hereof until the Final Payout Date, the Originator will, and will cause each other CMS Person to observe the applicable legal requirements for the recognition of Buyer as a legal entity separate and apart from the
Originator and each CMS Person, including without limitation taking such actions on the part of the Originator or such CMS Person as shall be required in order that: 
 (i) The Buyer’s operating expenses will not be paid by any CMS Person, except that certain organizational expenses of the Buyer and
expenses relating to creation and initial implementation of the Transaction Documents have been or will be paid by the Originator; 
 (ii) Any financial statements of any CMS Person that are consolidated to include the Buyer will contain appropriate footnotes clearly stating that (A) all of the Buyer’s assets are owned by the Buyer and (B) the Buyer is a
separate corporate entity with its own separate creditors that will be entitled to be satisfied out of the Buyer’s assets prior to any value in the Buyer becoming available to the Buyer’s equity holders; 
 (iii) Any transaction between the Buyer and a CMS Person will be fair and equitable to the Buyer, will be the type of transaction that
would be entered into by a prudent Person in the position of the Buyer with a CMS Person and will be on terms that are at least as favorable as may be obtained from a Person that is not a CMS Person; and 
  

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 (iv) No CMS Person will be, or will hold itself out to be, responsible for the debts of
the Buyer. 
 (f) Payment Instruction to Obligors. The Originator will (i) instruct all Obligors to submit all payments on the
CMSC Purchased Assets either (A) to one of the Lockboxes maintained at the Lockbox Banks for deposit in a Lockbox Account or (B) directly to one of the Lockbox Accounts and (ii) instruct all Persons receiving Home Sale Proceeds to
deposit such Home Sale Proceeds in one of the Lockboxes or Lockbox Accounts within two Business Days after such receipt (except to the extent a longer escrow period is required under applicable law, in which case such Home Sale Proceeds will be
deposited into one of the Lockboxes or Lockbox Accounts within one Business Day after the expiration of such period). The Originator will direct all Obligors with respect to receivables and related assets that are not CMSC Receivables or CMGFSC
Receivables to deposit all collections in respect of such receivables and related assets in an account that is not a Lockbox or Lockbox Account and will take such other steps as the Buyer reasonably may request to ensure that all collections on such
receivables and related assets will be segregated from CMSC Collections and CMGFSC Collections. 
 (g) Segregation of Collections. The
Originator will use reasonable efforts to minimize the deposit of any funds other than CMSC Collections or CMGFSC Collections into any of the Lockbox Accounts and, to the extent that any such funds are deposited into any of such Lockbox Accounts,
promptly will identify any such funds or will cause such funds to be so identified to the Servicer, it being understood and agreed that the Originator does not hereby assume any affirmative duty to re-direct Obligors to remit funds to
alternate locations. 
 (h) Identification of Eligible Receivables. The Originator will (i) establish and maintain necessary
procedures for determining, no less frequently than each date on which a Monthly Originator Report is required to be delivered pursuant to Section 3.1(a), whether each CMSC Receivable qualifies as an Eligible Receivable, and for identifying on
any such date all CMSC Receivables to be sold to the Buyer on that date that are not Eligible Receivables and (ii) will provide to the Servicer in a timely manner information that shows whether, and to what extent, the CMSC Receivables
described in such Monthly Originator Report are Eligible Receivables. 
 (i) Payment of Taxes. The Originator will file (or there will
be filed on its behalf as a member of a consolidated group) all tax returns and reports required by law to be filed by it and will pay all taxes, assessments and governmental charges thereby shown to be owing by it, except for any such taxes,
assessments or charges that are being diligently contested in good faith by appropriate proceedings, for which adequate reserves in accordance with GAAP have been set aside on its books and that have not given rise to any Liens (other than Permitted
Liens). 
  

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 (j) Accounting for Certain Assets. To the extent permitted by applicable law and GAAP, the
Originator will maintain and prepare its financial statements and records in accordance with GAAP. 
 (k) Receivables Reviews. Upon
reasonable prior notice, the Originator will permit the Buyer or its assignees (or other Persons designated by the Buyer from time to time) or their agents or representatives (including without limitation certified public accountants or other
auditors), at the expense of the Originator and during regular business hours, (i) to examine and make copies of and abstracts from, and to conduct accounting reviews of, all CMSC Records in the possession or under the control of the
Originator, including without limitation the related Contracts, invoices and other documents related thereto and (ii) to visit the offices and properties of the Originator for the purpose of examining any materials described in the preceding
clause (i) and to discuss matters relating to the CMSC Receivables or the other CMSC Purchased Assets or the performance by the Originator of its obligations under any Transaction Document to which it is a party with any Authorized Officers of
the Originator having knowledge of such matters or with the Originator’s certified public accountants or other auditors; provided, however, that all such reviews will occur no more frequently than twice per year (with only the
first such review in any year being at the Originator’s expense) unless (i) CMSC is the Servicer and a Servicer Default has occurred and is continuing or (ii) the Buyer or its successor or assignee has given advance written notice to
the Originator that it believes the composition and/or performance of the CMSC Purchased Assets have deteriorated in a manner materially adverse to the interests of the Buyer or its assignees. 
 (l) Computer Software, Hardware and Services. The Originator will provide the Buyer and its assignees with such licenses, sublicenses and/or
assignments of contracts as the Servicer, the Buyer or the Buyer’s assignees require with respect to all services and computer hardware or software that relate to the servicing of the CMSC Receivables or the other CMSC Purchased Assets;
provided, however, that with respect to any computer software licensed from a third party, the Originator will be required to provide such licenses, sublicenses and/or assignments of such software only to the extent that provision of
the same would not violate the terms of any contracts of the Originator with such third party (the Originator hereby representing that no such provision would violate the terms of any current such contract). 
 (m) Environmental Claims. The Originator will promptly cure and have dismissed with prejudice to the satisfaction of the Buyer and each of
Buyer’s assignees any actions and any proceedings relating to compliance with Environmental Laws relating to any CMSC Home. 
 (n)
Turnover of Collections. If the Originator or any of its agents or representatives at any time receives any cash, checks or other instruments constituting CMSC Collections or CMGFSC Collections, such recipient will segregate and hold such
payments in trust for, and in a manner acceptable to, the Servicer and will, promptly upon receipt (and in any event within one Business Day following receipt) remit all such cash, checks and instruments, duly endorsed or with duly executed
instruments of transfer, to a Lockbox Account. 
  

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 (o) Performance and Compliance by Originator with Relocation Management Agreements. The Originator
will timely and fully perform and comply with all provisions, covenants and other promises required to be observed by it under the Pool Relocation Management Agreements, the CMSC Home Purchase Contracts and other Contracts related to the CMSC
Purchased Assets. 
 (p) Compliance with Credit and Collection Policy. The Originator will comply in all material respects with the
Credit and Collection Policy with respect to each CMSC Purchased Asset and will not take any action in violation of the Credit and Collection Policy with respect to any other KF Purchased Asset. 
 (q) Compliance with Orrick Opinion. The Originator will take all actions necessary on its part to be taken in order to ensure that the facts and
assumptions relating to the Buyer set forth in the opinion of Orrick, Herrington & Sutcliffe LLP of even date herewith relating to security interest matters with respect to the Purchase of the CMSC Purchased Assets hereunder will be true
and correct at all times. 
 Section 7.2 Reporting Requirements. From the Closing Date until the termination of this Agreement in
accordance with Section 11.4, the Originator agrees that it will furnish to the Buyer or its assignees: 
 (a) Financial
Statements. (I) As soon as available and in any event within 50 days after the end of each of the first three fiscal quarters of each fiscal year of the Performance Guarantor, copies of the unaudited consolidated balance sheets of the
Performance Guarantor and its consolidated subsidiaries, the related unaudited statements of cash flow for the Performance Guarantor and the related unaudited statements of earnings and stockholders’ equity of the Performance Guarantor, in each
case for such fiscal quarter and for the period from the beginning of such fiscal year through the end of such fiscal quarter and certified by the chief financial officer or chief accounting officer of the Performance Guarantor, all of the foregoing
to be prepared in accordance with GAAP applied consistently throughout the periods reflected therein (subject to normal year-end adjustments and with footnote disclosures); and (II) as soon as available and in any event within 95 days after the end
of each fiscal year of the Performance Guarantor and the Originator, as applicable, beginning with the fiscal year ending on December 31, 2002, copies of (i) the consolidated balance sheet of the Performance Guarantor and its consolidated
subsidiaries as at the end of such fiscal year and the related statements of earnings and cash flows and stockholders’ equity of the Performance Guarantor and its consolidated subsidiaries for such fiscal year, setting forth in each case in
comparative form the corresponding figures for the preceding fiscal year and prepared in accordance with GAAP applied consistently throughout the periods reflected therein, certified by Deloitte & Touche (or such other independent certified
public accountants of nationally recognized standing in the United States of America as shall be selected by the Performance Guarantor) and (ii) copies of the statements of earnings of the Originator on a consolidated basis for such fiscal
year, setting forth in each case in comparative form the corresponding figures for the preceding fiscal year and certified by the chief financial officer, chief accounting officer or controller of the Originator (it being understood and agreed that
such statements of earnings will be prepared in accordance with the Originator’s customary management accounting practices as in effect on the date hereof and need not be prepared in accordance with GAAP); 
  

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 (b) Material Adverse Effect. Promptly and in any event within two Business Days after the
president, chief financial officer, controller or treasurer of the Originator has actual knowledge thereof, written notice that describes in reasonable detail any event or occurrence with respect to CMSC that, individually or in the aggregate for
all such events or occurrences, has had, or that such Authorized Officer in its reasonable good faith judgment determines could reasonably be expected to have, a Material Adverse Effect (as defined in the Indenture); 
 (c) Proceedings. Promptly and in any event within five Business Days after an Authorized Officer of the Originator has knowledge thereof, written
notice of (i) any litigation, investigation or proceeding of the type described in Section 6.1(f) not previously disclosed to the Buyer, (ii) any material adverse development that has occurred with respect to any such previously
disclosed litigation, investigation or proceeding or (iii) any CMGFSC Purchase Termination Event or event which, with the giving of notice or passage of time or both, would constitute a CMGFSC Purchase Termination Event; 
 (d) ERISA Event. (i) As soon as possible and in any event within 30 days after the Originator or any ERISA Affiliate knows or has reason to
know that a “reportable event” (as defined in Section 4043 of ERISA) has occurred with respect to any Plan, a statement of an Authorized Officer of the Originator setting forth details as to such reportable event and the action that
the Originator or an ERISA Affiliate proposes to take with respect thereto, together with a copy of the notice of such reportable event, if any, given to the PBGC, the Internal Revenue Service or the Department of Labor; (ii) promptly and in
any event within 10 Business Days after receipt thereof, a copy of any notice the Originator or any ERISA Affiliate receives from the PBGC relating to the intention of the PBGC to terminate any Plan or to appoint a trustee to administer any such
Plan; (iii) promptly and in any event within 10 Business Days after a filing with the PBGC pursuant to Section 412(n) of the Code of a notice of failure to make a required installment or other payment with respect to a Plan, a statement of
the chief financial officer of the Originator setting forth details as to such failure and the action that the Originator or an ERISA Affiliate proposes to take with respect thereto, together with a copy of such notice given to the PBGC; and
(iv) promptly and in any event within 30 Business Days after receipt thereof by the Originator or any ERISA Affiliate from the sponsor of a multiemployer plan (as defined in Section 3(37) of ERISA), a copy of each notice received by the
Originator or any ERISA Affiliate concerning the imposition of withdrawal liability or a determination that a multiemployer plan is, or is expected to be, terminated or reorganized; 
 (e) Environmental Claims. Promptly and in any event within five Business Days after receipt thereof, notice and copies of all written claims,
complaints, notices, actions, proceedings, requests for information or inquiries relating to the condition of any CMSC Homes or compliance with Environmental Laws relating to the CMSC Homes, other than those received in the ordinary course of
business and that, singly or in the aggregate, do not represent events or conditions that would cause the representation set forth in Section 6. l(v) to be incorrect; and 
  

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 (f) Other. Promptly, from time to time, such other information, documents, records or reports with
respect to the CMSC Purchased Assets or the condition or operations, financial or otherwise, of the Originator as the Buyer or its assignees may from time to time reasonably request in order to protect the interests of the Buyer or such assignees
under or as contemplated by this Agreement and the other Transaction Documents, including timely delivery of all such information required under any Enhancement Agreement. 
 Section 7.3 Negative Covenants of the Originator. From the Closing Date until the termination of this Agreement in accordance with
Section 11.4, the Originator agrees that it will not: 
 (a) Sales, Liens, Etc. Sell, assign (by operation of law
or otherwise) or otherwise dispose of, or create or suffer to exist any Lien (other than Permitted Liens) of anyone on or with respect to, any KF Purchased Asset or any interest therein or any Lockbox or Lockbox Account, other than (i) sales of
CMSC Purchased Assets pursuant to this Agreement and (ii) sales of CMSC Homes in accordance with the applicable Contracts; 
 (b) Change in Business or Credit and Collection Policy. (i) Make any material change in the Credit and Collection Policy or (ii) make any material change in the character of its employee relocation business or engage in any
business unrelated to such business as currently conducted that, in either case, individually or in the aggregate with all other such changes, would be reasonably likely to have a material adverse effect on the composition or performance of the CMSC
Purchased Assets; 
 (c) No Mergers, Etc. (i) Consolidate with or merge with or into any other Person unless:

 (A) the Originator is the surviving entity thereof; 
 (B) all actions necessary to maintain the perfection of the security interests or ownership interests of the Buyer and the Buyer’s
assignees in the CMSC Purchased Assets in connection with such consolidation, merger, conveyance or transfer have been taken, as evidenced by an Opinion of Independent Counsel reasonably satisfactory in form and substance to the Buyer and its
assignees; and 
 (C) so long as the Originator is the Servicer, no Servicer Default or Unmatured Servicer Default is then
occurring or would result from such merger, consolidation, conveyance or transfer; or 
 (ii) Convey, transfer or sell more
than 25% of its properties and assets to any Person; 
 (d) Change in Name. Change its corporate name or the name under
or by which it conducts its core relocation business or the jurisdiction in which it is incorporated unless the Originator has given the Buyer and its assignees at least 30 days’ prior written notice thereof and unless, prior to any such change
in name or jurisdiction of incorporation, the Originator has taken and completed all action required by Section 8.3; 
  

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 (e) Home Deeds. Record any Home Deeds with respect to any Homes except at the
direction of the Buyer or the Buyer’s assignees or as permitted by Section 8.3 hereof or by Section 2.01(d)(i) of the Servicing Agreement; 
 (f) Termination of Relocation Management Agreements. Terminate any Pool Relocation Management Agreement, CMSC Home Purchase Contract, CMSC Home Sale Contract, CMSC Equity Loan Note or CMSC Equity Loan Agreement
except in accordance with the Credit and Collection Policy; 
 (g) Extension or Amendment. Extend, amend or otherwise
modify the terms of any Receivable included in the KF Purchased Assets, or amend, modify or waive any material term or condition related thereto, except in accordance with Section 3.10 of the Servicing Agreement; 
 (h) Change in Payment Instruction to Obligors. Make any change in its instructions to Obligors or other Persons regarding payments
to be made to the Originator or payments to be made to any Lockbox Account (except for a change in instructions solely for the purpose of directing such Obligors or other Persons to make such payments to another existing Lockbox Account), unless
(i) the Trustee has received copies of a Lockbox Agreement with each new Lockbox Bank duly executed by the Originator, the Buyer, the Issuer, the Trustee and such Lockbox Bank and (ii) in the case of any termination, the Buyer or its
successors and assigns have received evidence to their satisfaction that the Obligors that were making payments into a terminated Lockbox Account have been instructed in writing, and have irrevocably agreed, to make payments into another Lockbox
Account then in use; or 
 (i) Home Purchase Contracts. Purchase any Home or make any Equity Payments, Mortgage
Payoffs, or Mortgage Payments on or after the Closing Date other than Equity Payments, Mortgage Payoffs and Mortgage Payments with respect to CMSC Homes. 
 Section 7.4 Affirmative Covenants of the Buyer. From the Closing Date until the termination of this Agreement in accordance with Section 11.4, the Buyer hereby agrees that it will perform the
covenants and agreements set forth in this Section 7.4. 
 (a) The Buyer hereby acknowledges that the parties to the Transaction
Documents are entering into the transactions contemplated by the Transaction Documents in reliance upon the Buyer’s identity as a legal entity separate from the Originator and the other CMS Persons. From and after the date hereof until one year
and one day after the Final Payout Date, the Buyer will take such actions as shall be required in order that: 
 (i) The Buyer
will conduct its business in office space allocated to it and for which it pays an appropriate rent and overhead allocation; 
  

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 (ii) [Reserved] 
 (iii) The Buyer’s assets will be maintained in a manner that facilitates their identification and segregation from those of any CMS
Person; 
 (iv) The Buyer will strictly observe corporate formalities in its dealings with the public and with each CMS
Person, and funds or other assets of the Buyer will not be commingled with those of any CMS Person, except as expressly permitted by the Transaction Documents. The Buyer will at all times, in its dealings with the public and with each CMS Person,
hold itself out and conduct itself as a legal entity separate and distinct from each CMS Person. The Buyer will not maintain joint bank accounts or other depository accounts to which any CMS Person (other than the Originator in its capacity as
Servicer under the Servicing Agreement) has independent access; 
 (v) The duly elected board of directors of the Buyer and
duly appointed officers of the Buyer will at all times have sole authority to control decisions and actions with respect to the daily business affairs of the Buyer; 
 (vi) Not less than one member of the Buyer’s board of directors will be Independent. The Buyer will observe those provisions in its
certificate of incorporation that provide that the Buyer’s board of directors will not approve, or take any other action to cause the filing of, a voluntary bankruptcy petition with respect to the Buyer unless the Independent Director and all
other members of the Buyer’s board of directors unanimously approve the taking of such action in writing prior to the taking of such action; 
 (vii) The Buyer will compensate each of its employees, consultants and agents from the Buyer’s own funds for services provided to the Buyer; 
 (viii) The Buyer will not hold itself out to be responsible for the debts of any CMS Person; and 
 (ix) The Buyer will take all actions necessary on its part to be taken in order to ensure that the facts and assumptions relating to the
Buyer set forth in the opinion of Orrick, Herrington & Sutcliffe LLP of even date herewith relating to security interest matters with respect to the Purchase of the CMSC Purchased Assets hereunder will be true and correct at all times.

 (b) The Buyer assumes no obligations of the Originator under the Pool Relocation Management Agreements with respect to any CMSC Home
Purchase Contracts, including without limitation the obligations of the Originator to make Equity Payments, Mortgage Payoffs and Mortgage Payments with respect to CMSC Homes. The Buyer will enter into all Home Purchase Contracts under the Pool
Relocation Management Agreements in its own name and will make all Equity Payments, Mortgage Payoffs and Mortgage Payments from and after the Closing Date other than Equity Payments, Mortgage Payoffs and Mortgage Payments with respect to CMSC Homes.

  

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 ARTICLE VIII 
 ADDITIONAL RIGHTS AND OBLIGATIONS IN 
 RESPECT OF THE CMSC PURCHASED ASSETS 
 Section 8.1 Rights of the Buyer. 
 (a) Subject to Section 8.4(b), the Originator hereby authorizes the Buyer and its assignees and designees to take any and all steps in the Originator’s name and on behalf of the Originator that the Buyer, the Servicer and/or their
respective designees determine are reasonably necessary or appropriate to collect all amounts due under any and all CMSC Purchased Assets, including without limitation endorsing the name of the Originator on checks and other instruments representing
CMSC Collections and enforcing such CMSC Purchased Assets. 
 (b) The Buyer and its assignees shall have no obligation to account for, to
replace, to substitute or to return any CMSC Purchased Asset to the Originator. 
 (c) The Buyer and its assignees shall have the unrestricted
right to further assign, transfer, deliver, hypothecate, subdivide or otherwise deal with the CMSC Purchased Assets and all of the right, title and interest of the Buyer and its assignees in, to and under this Agreement on whatever terms the Buyer
and its assignees determine, pursuant to the Receivables Purchase Agreement or otherwise. 
 (d) As between the Originator and the Buyer, the
Buyer shall have the sole right to retain any gains or profits created by buying, selling or holding the CMSC Purchased Assets. 
 Section 8.2 Responsibilities of the Originator. Anything herein to the contrary notwithstanding: 
 (a) The Originator
agrees to deliver directly to the Servicer (for the Buyer’s account), within one Business Day after receipt thereof, any CMSC Collections or CMGFSC Collections that it receives, in the form so received, and agrees that all such CMSC Collections
and CMGFSC Collections will be deemed to be received in trust for the Buyer and its assignees and will be maintained and segregated separate and apart from all other funds and moneys of the Originator until delivery of such CMSC Collections and
CMGFSC Collections to the Servicer; and 
 (b) The Originator hereby grants to the Buyer an irrevocable power of attorney, with full power of
substitution, coupled with an interest, to take in the name of the Originator all steps necessary or advisable to endorse, negotiate or otherwise realize on any 
  

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 writing or other right of any kind held or transmitted by the Originator or transmitted or received by the Buyer (whether
or not from the Originator) in connection with any CMSC Purchased Asset (which power of attorney may be exercised by the Buyer’s successors and assigns in accordance with Section 8.4 and Section 11.12(b)). 
 (c) The Originator shall perform all of its obligations hereunder and under the Pool Relocation Management Agreements and other Contracts related to the
CMSC Purchased Assets to which it is a party (other than those obligations undertaken by the Buyer as provided in Section 7.4(b)) to the same extent as if such CMSC Purchased Assets had not been sold hereunder, and the exercise by the Buyer or
its designee or assignee of the Buyer’s rights hereunder or in connection herewith shall not relieve the Originator from any of its obligations under any such Pool Relocation Management Agreements or Contracts related to the CMSC Purchased
Assets to which it is a party. Notwithstanding the foregoing, the Originator acknowledges that the Buyer or its designees are entitled to perform such obligations to the extent permitted under the Transaction Documents. 
 Section 8.3 Further Action Evidencing Purchases. The Originator agrees that from time to time, at its expense and upon reasonable request, it
will promptly execute and deliver all further instruments and documents and take all further action as is reasonably necessary to perfect, protect or more fully evidence the Purchase of the CMSC Purchased Assets by the Buyer and its assignees
hereunder, or to enable the Buyer or its assignees to exercise or enforce any of its rights hereunder or under any other Transaction Document to which the Originator is a party; provided, however, that the Originator will not file or
record any Home Deeds except (i) in its capacity as the Servicer pursuant to the Servicing Agreement and in accordance with the terms thereof and (ii) at any time, to the extent such recordation is required by local law, regulation or
custom. No Home Deeds or Home Purchase Contracts may be recorded in the name of the Originator other than Home Deeds relating to CMSC Homes and CMSC Home Purchase Contracts. Without limiting the generality of the foregoing, the Originator shall:

 (a) upon the request of the Buyer or its assignees, execute and file such financing or continuation statements or
amendments thereto or assignments thereof and such other instruments or notices as the Buyer or its assignees may reasonably determine to be necessary or appropriate; and 
 (b) mark the master data processing records evidencing the CMSC Purchased Assets and, if requested by the Buyer or its assignees, legend
the related Pool Relocation Management Agreements and CMSC Home Purchase Contracts to reflect the sale of the CMSC Purchased Assets to the Buyer pursuant to this Agreement. 
 The Originator hereby authorizes the Buyer and its assignees to file one or more financing or continuation statements and amendments thereto and
assignments thereof with respect to all or any of the CMSC Purchased Assets, in each case whether now existing or hereafter generated by the Originator. If (i) the Originator fails to perform any of its agreements or obligations under this
Agreement and does not remedy such failure within the applicable cure period, if any, and (ii) the Buyer or its assignees in good faith reasonably believes that the 
  

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 performance of such agreements and obligations is necessary or appropriate to protect the interests of the Buyer or its
assignees under this Agreement, then the Buyer or its assignees may (but shall not be required to) perform or cause performance of such agreement or obligation, and the reasonable expenses of the Buyer or its assignees incurred in connection with
such performance shall be payable by the Originator as provided in Section 10.1. 
 Section 8.4 CMSC Collections; Rights of the
Buyer and its Assignees. 
 At any time following the designation of a Servicer other than the Originator pursuant to the Servicing
Agreement: 
 (a) The Buyer or its assignees may direct the Obligors of CMSC Receivables, or any of them, to pay all amounts
payable under any CMSC Receivable directly to the Buyer or its assignees; 
 (b) At the request of the Buyer or its assignees
and at the Originator’s expense, the Originator shall give notice of such ownership to each said Obligor and direct that payments be made directly to the Buyer or its assignees; 
 (c) At the request of the Buyer or its assignees and at the Originator’s expense, the Originator shall (A) assemble all of the
CMSC Records, to the extent such CMSC Records are in its possession, and make the same available at a place selected by the Buyer or its successors and assigns, or instruct any escrow agents holding any such documents, instruments and other records
on its behalf to make the same available and (B) segregate all cash, checks and other instruments received by it from time to time constituting CMSC Collections or CMGFSC Collections in a manner reasonably acceptable to the Buyer or its
assignees and, promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the Buyer or its assignees; and 
 (d) The Originator hereby authorizes the Buyer or its assignees to take any and all steps in the Originator’s name and on behalf of
the Originator that are necessary or desirable, in the reasonable determination of the Buyer or its assignees, to collect all amounts due under any and all CMSC Purchased Assets, including without limitation endorsing the Originator’s name on
checks and other instruments representing CMSC Collections and enforcing the CMSC Purchased Assets. 
 ARTICLE IX 
 TERMINATION 
 Section 9.1 CMGFSC
Purchase Termination Events. The following events shall be “CMGFSC Purchase Termination Events”: 
 (a) The occurrence of
an Event of Default or an Amortization Event; or 
  

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 (b) (i) Any of the representations and warranties made by the Originator in Section 6.1(d) or
6.1(e) proves to have been incorrect in any material respect when made, or (ii) any other representation or warranty made by the Originator under any of the Transaction Documents, any Monthly Originator Report or other information or report
delivered by the Originator (including in its capacity as Servicer) with respect to the Originator or the CMSC Purchased Assets shall prove to have been untrue or incorrect in any material respect when made or deemed to have been made, and such
failure could be reasonably expected to have a Material Adverse Effect and such occurrence remains unremedied for 30 days, in each case, after the date on which an Authorized Officer of any CMS Person knew or with reasonable diligence would have
known of such failure; or 
 (c) (i) The Originator shall fail to perform or observe the covenants and agreements set forth in
Section 7.1(a), as and when required, or shall fail to perform or observe any other covenants and agreements contained in this Agreement or any of the other Transaction Documents to which it is a party or any Contract required on its part to be
performed or observed, and such failure shall remain unremedied for: (A) in the case of a failure to deliver any Monthly Originator Report pursuant to Section 3.l(a), ten calendar days (provided, however, that such ten day
period may be extended for an additional ten days if such failure to deliver a Monthly Originator Report is due to computer failure) or (B) in the case of any other failure to perform or observe, as and when required, any term, covenant or
agreement, which failure could be reasonably expected to have a Material Adverse Effect, 60 days; or 
 (d) An Event of Bankruptcy shall have
occurred with respect to the Originator or the Performance Guarantor; or 
 (e) The representation and warranty in Section 6.1(k) shall
not be true at any time with respect to a substantial portion of the CMSC Purchased Assets; or 
 (f) Either (i) the Internal Revenue
Service shall file notice of a Lien pursuant to Section 6323 of the Internal Revenue Code with respect to any of the CMSC Receivables or the CMSC Related Assets and such Lien shall not have been released within five days or (ii) the PBGC
shall file, or shall indicate its intention to file, notice of a Lien pursuant to Section 4068 of the Employee Retirement Income Security Act of 1974 with respect to any of the CMSC Receivables or the CMSC Related Assets; or 
 (g) This Agreement or the PHH Guarantee shall cease to be in full force and effect for any reason other than in accordance with its terms; or 

(h) A KF Purchase Termination Event or event giving rise to a Funding Termination Date shall have occurred. 
 If a CMGFSC Purchase Termination Event occurs, the Originator shall promptly give notice to the Buyer and its assignees of such CMGFSC Purchase Termination Event.

 Section 9.2 Purchase Termination. (a) On the Termination Date, the Originator shall cease transferring CMSC Purchased
Assets to the Buyer, provided that any right, 
  

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 title and interest of the Originator in and to any CMGFSC Designated Receivables arising from any Servicer Advances made
thereafter, including any Related Property relating thereto and proceeds thereof, shall continue to be transferred. Notwithstanding any cessation of the transfer to the Buyer of additional CMSC Purchased Assets, CMSC Purchased Assets transferred to
the Buyer prior to the Termination Date and CMSC Collections in respect of such CMSC Purchased Assets and the related Finance Charges, whenever accrued in respect of such CMSC Receivables, shall continue to be property of the Buyer available for
transfer by the Buyer pursuant to the Receivables Purchase Agreement. Nothing in this Section 9.2 shall be deemed to prohibit the Buyer from funding CMGFSC Designated Receivables from and after the Termination Date. 
 (b) Upon the occurrence of a CMGFSC Purchase Termination Event, the Buyer and its assignees shall have, in addition to all other rights and remedies
under this Agreement or otherwise, all other rights and remedies provided under the UCC of each applicable jurisdiction and other applicable laws, which rights shall be cumulative. Without limiting the foregoing, the occurrence of a CMGFSC Purchase
Termination Event shall not deny to the Buyer or its assignees any remedy in addition to termination of its obligation to make Purchases hereunder to which the Buyer or its assignees may be otherwise appropriately entitled, whether by statute or
applicable law, at law or in equity. 
 ARTICLE X 
 INDEMNIFICATION; SECURITY INTEREST 
 Section 10.1 Indemnities by the Originator. Without
limiting any other rights that any CMSC Indemnified Party may have hereunder or under applicable law, the Originator agrees to indemnify the Buyer and each of its successors, permitted transferees and assigns, and all officers, directors,
shareholders, controlling Persons, employees and agents of any of the foregoing (each of the foregoing Persons, a “CMSC Indemnified Party”), from and against any and all damages, losses, claims (whether on account of settlements or
otherwise), actions, suits, demands, judgments, liabilities (including penalties), obligations or disbursements of any kind or nature and related costs and expenses (including reasonable attorneys’ fees and disbursements) awarded against or
incurred by any of them, arising out of or as a result of any of the following (all of the foregoing, collectively, “CMSC Indemnified Losses”): 
 (a) any representation or warranty made by the Originator under any of the Transaction Documents to which it is a party, any Monthly
Originator Report or any other information or report delivered by the Originator (including in its capacity as Servicer) with respect to the Originator or the CMSC Purchased Assets, having been untrue or incorrect in any respect when made or deemed
to have been made; 
 (b) the failure by the Originator to comply with any material applicable Requirement of Law with respect
to any CMSC Purchased Asset or any failure of a CMSC Purchased Asset to comply with any material Requirement of Law as of the date of sale of such CMSC Purchased Asset hereunder; 
  

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 (c) the failure to vest and maintain in the Buyer a valid ownership interest in the CMSC
Purchased Assets, free and clear of any Lien (including without limitation any such failure arising from a circumstance described in the definition of Permitted Exceptions); 
 (d) any failure of the Originator to perform its duties or obligations in accordance with the provisions of the Transaction Documents or
any Contract, in each case to which it is a party; 
 (e) the failure to file, or any delay in filing, financing statements or
other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to the transfer of any CMSC Purchased Assets to the Buyer, whether at the time of any sale or at any subsequent time;

 (f) the failure by the Originator to pay when due any taxes owing by it (including without limitation sales, excise or
property taxes) payable in connection with the CMSC Purchased Assets, other than any such taxes, assessments or charges that are being diligently contested in good faith by appropriate proceedings, for which adequate reserves in accordance with GAAP
have been set aside on its books and that have not given rise to any Liens (other than Permitted Liens); 
 (g) any reduction
in the Unpaid Balance of any Receivable included in the KF Purchased Assets as a result of any Concession; 
 (h) any product
liability, strict liability or personal injury claim in connection with the service that is the subject of any CMSC Purchased Asset; and 
 (i) any investigation, litigation or proceeding related to any use by CMSC of the proceeds of any Purchase made hereunder. 
 Notwithstanding the foregoing (and with respect to clause (ii) below, without prejudice to the rights that the Buyer may have pursuant to the other provisions of this Agreement or the provisions of any of the
other Transaction Documents), in no event shall any CMSC Indemnified Party be indemnified for any CMSC Indemnified Losses (i) resulting from negligence or willful misconduct on the part of such CMSC Indemnified Party, (ii) to the extent
the same includes losses in respect of CMSC Purchased Assets and reimbursement therefor that would constitute credit recourse to the Originator for the amount of any CMSC Receivable not paid by the related Obligor or (iii) resulting from the
action or omission of the Servicer (unless the Servicer is the Originator or an Affiliate thereof (other than the Buyer or the Issuer)). 
 If for any reason the indemnification provided in this Section 10.1 is unavailable to an CMSC Indemnified Party or is insufficient to hold a CMSC Indemnified Party harmless, then the Originator shall contribute to the maximum amount
payable or paid to such CMSC Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such CMSC Indemnified Party on the one hand and the
Originator on the other hand, but also the relative fault of such CMSC Indemnified Party and the Originator, and any other relevant equitable considerations. 
  

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 Section 10.2 Security Interest. Without prejudice to the provisions of Section 2.1
providing for the absolute transfer of the Originator’s interest in the CMSC Purchased Assets and the proceeds thereof and any interest of the Originator in the other property described in clause (v) of Section 2.1(a) to the Buyer, in
order to secure the prompt payment and performance of all obligations of the Originator to the Buyer and the Buyer’s assignees arising in connection with this Agreement and the other Transaction Documents, whether now or hereafter existing, due
or to become due, direct or indirect, or absolute or contingent, the Originator hereby assigns and grants to the Buyer a first priority security interest in the Originator’s right, title and interest, whether now owned or hereafter acquired, if
any, in, to and under all of the CMSC Purchased Assets and the proceeds thereof and any interest of the Originator in the other property described in clause (v) of Section 2.1(a). 
 ARTICLE XI 
 MISCELLANEOUS 
 Section 11.1 Amendments; Waivers, Etc. 
 (a) The provisions of this Agreement may be amended, modified or waived from time to time if such amendment, modification or waiver is in writing and signed by the Originator and the Buyer and its assignees. Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given. 
 (b) No failure or delay on the part of the Buyer or
its assignees, or any CMSC Indemnified Party, or any other third party beneficiary referred to in Section 11.12(a) in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to, or demand on, the Originator shall entitle it in any case to any notice or demand in similar or other circumstances. No
waiver or approval by the Buyer or its assignees under this Agreement shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval under this Agreement shall require any similar
or dissimilar waiver or approval thereafter to be granted hereunder. 
 Section 11.2 Notices, Etc. Unless otherwise stated
herein, all notices, demands, consents, approvals and other communications provided for hereunder shall be in writing (including via telecopier) and shall be personally delivered or sent by certified mail, return receipt requested, postage prepaid,
by telecopier or by overnight courier to the intended party at the address or telecopier number of such party set forth on Schedule 11.2 hereof, or at such other address or telecopier number as shall be designated by such party in a written notice
to the other party hereto given in accordance with this Section 11.2. Copies of all notices and other communications provided for hereunder shall be delivered to the Trustee, the Administrative Agent and the Issuer at their respective addresses
for notices set forth in the Servicing Agreement. All notices and communications provided for hereunder shall be effective when received. 
  

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 Section 11.3 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. 
 Section 11.4 Binding Effect; Assignability; Survival of Provisions. This Agreement
shall be binding upon, and inure to the benefit of, the Buyer and the Originator and their respective successors and assigns. Except as permitted pursuant to Section 7.3(c), the Originator may not assign any of its rights hereunder or any
interest herein without the prior written consent of the Buyer and its assignees. This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms and shall remain in full force and effect
until terminated pursuant hereto. Such termination shall not occur prior to the Final Payout Date. The rights and remedies with respect to any breach of any representation and warranty made by the Originator pursuant to Article VI and the
indemnification and payment provisions of Article X and Section 11.6 and the provisions of Section 11.14 and Section 11.16 shall be continuing and shall survive any termination of this Agreement. 
 Section 11.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK,
INCLUDING §5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. 
 Section 11.6 Costs; Expenses and Taxes. In addition to the obligations of the Originator under Article X, the Originator agrees to pay on demand: 
 (a) all reasonable costs and expenses incurred by the Buyer and its assignees in connection with the negotiation, preparation, execution
and delivery of, the administration (including periodic auditing), the preservation of any rights under, or the enforcement of, or any breach of, this Agreement (including any amendment, supplement or modification hereto), including without
limitation (i) the reasonable fees, expenses and disbursements of counsel to any such Persons incurred in connection with any of the foregoing or in advising such Persons as to their respective rights and remedies under this Agreement and
(ii) all reasonable out-of-pocket expenses (including reasonable fees and expenses of independent accountants) incurred in connection with any review of the Originator’s books and records either prior to the execution and delivery hereof
or pursuant to Section 7.1(k), and 
 (b) all stamp and other taxes and fees payable or determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement or any amendment, supplement or modification thereto, and agrees to indemnify each CMSC Indemnified Party against any liabilities with respect to, or resulting from, any
delay in paying or omission to pay such taxes and fees. 
 Section 11.7 Submission to Jurisdiction. EACH PARTY HERETO HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW 
  

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 YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK, OVER ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND HEREBY (a) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT; (b) IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING; AND (c) IRREVOCABLY APPOINTS CT CORPORATION SYSTEM (THE “PROCESS AGENT”), WITH AN OFFICE ON THE DATE
HEREOF AT 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011, UNITED STATES OF AMERICA, AS ITS AGENT TO RECEIVE ON BEHALF OF IT AND ITS PROPERTY SERVICE OF COPIES OF THE SUMMONS AND COMPLAINT AND ANY OTHER PROCESS THAT MAY BE SERVED IN ANY SUCH ACTION OR
PROCEEDING. SUCH SERVICE MAY BE MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS IN CARE OF THE PROCESS AGENT AT THE PROCESS AGENT’S ABOVE ADDRESS, AND EACH PARTY HERETO HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE PROCESS AGENT TO ACCEPT
SUCH SERVICE ON ITS BEHALF. EACH PARTY HERETO AGREES TO ENTER INTO ANY AGREEMENT RELATING TO SUCH APPOINTMENT THAT THE PROCESS AGENT MAY CUSTOMARILY REQUIRE AND TO PAY THE PROCESS AGENT’S CUSTOMARY FEES UPON DEMAND. AS AN ALTERNATIVE METHOD OF
SERVICE, EACH PARTY HERETO ALSO IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH PARTY AT ITS ADDRESS SPECIFIED PURSUANT TO SECTION 11.2. NOTHING IN THIS
SECTION 11.7 SHALL AFFECT THE RIGHT OF EITHER PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF EITHER PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST THE OTHER PARTY HERETO OR ANY OF ITS
PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. 
 Section 11.8 Waiver of Jury Trial. EACH PARTY HERETO WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR
ARISING FROM ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF EITHER OF THE PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 
 Section 11.9 Integration. This Agreement contains a final and
complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof, superseding all prior oral
or written understandings. 
  

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 Section 11.10 Captions and Cross References. The various captions (including without
limitation the table of contents) in this Agreement are provided solely for convenience of reference and shall not affect the meaning or interpretation of any provision of this Agreement. 
 Section 11.11 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart hereof by telecopier or other electronic
means shall be equally effective as delivery of an originally executed counterpart hereof. 
 Section 11.12 Acknowledgment and
Consent. 
 (a) The Originator acknowledges that, from time to time prior to the Termination Date, the Buyer intends to sell all of the
Buyer’s right, title and interest in, to and under the CMSC Purchased Assets, this Agreement and all of the other Transaction Documents pursuant to the Receivables Purchase Agreement, and that the interests of the Buyer hereunder will be
further assigned pursuant to the Indenture. The Originator acknowledges and agrees to each such sale by the Buyer and consents to the sale and assignment by the Buyer of all or any portion of its right, title and interest in, to and under the CMSC
Purchased Assets, this Agreement and the other Transaction Documents and all of the Buyer’s rights, remedies, powers and privileges and all claims of the Buyer against the Originator under or with respect to this Agreement and the other
Transaction Documents (whether arising pursuant to the terms of this Agreement or otherwise available at law or in equity), including without limitation (whether or not an Unmatured Servicer Default or a Servicer Default has occurred and is
continuing) (i) the right of the Buyer at any time to enforce this Agreement against the Originator and the obligations of the Originator hereunder and (ii) the right at any time to give or withhold any and all consents, requests, notices,
directions, approvals, demands, extensions or waivers under or with respect to this Agreement, any other Transaction Document or the obligations in respect of the Originator thereunder, all of which rights, remedies, powers, privileges and claims
may be exercised and/or enforced by the Buyer’s successors and assigns to the same extent as the Buyer may do. Each of the parties hereto acknowledges and agrees that the Buyer’s successors and assigns are third party beneficiaries of this
Agreement, including without limitation the rights of the Buyer arising hereunder, and may rely on the Originator’s representations and warranties made herein as if made directly to them. The Originator hereby acknowledges and agrees that,
except with respect to its rights under Section 4.3, it has no claim to or interest in any of the Lockbox Accounts. 
 (b) The
Originator hereby agrees to execute all agreements, instruments and documents and to take all other actions that the Buyer or its assignees determines are necessary or appropriate to evidence its consent described in Section 11.12(a). The
Originator hereby acknowledges and agrees that the Buyer in all of its capacities may assign to the Buyer’s successors and assigns such powers of attorney and other rights and interests granted by the Originator to the Buyer hereunder and
agrees to cooperate fully with the Buyer’s successors and assigns in the exercise of such rights. 
  

 30 

 (c) The Originator hereby acknowledges that the Buyer’s successors and assigns are entering into the
Transaction Documents in reliance on the Buyer’s identity as a legal entity separate from the Originator. 
 Section 11.13 No
Partnership or Joint Venture. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third person to create the relationship of principal and agent or of partnership or of joint venture. 
 Section 11.14 No Proceedings. The Originator hereby agrees that it will not institute against the Buyer or its successors or join any other
Person in instituting against the Buyer or its successors any Insolvency Proceeding so long as there shall not have elapsed one year plus one day since the Final Payout Date. The foregoing shall not limit the right of the Originator to file any
claim in or otherwise take any action with respect to any Insolvency Proceeding that was instituted against the Buyer or its successors by any Person other than the Originator or any other CMS Person. 
 Section 11.15 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement are for any
reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability
of the other provisions of this Agreement. 
 Section 11.16 Recourse to the Buyer. Except to the extent expressly provided
otherwise in the Transaction Documents, the obligations of the Buyer under the Transaction Documents to which it is a party are solely the obligations of the Buyer, and no recourse shall be had for payment of any fee payable by or other obligation
of or claim against the Buyer that arises out of any Transaction Document to which the Buyer is a party against any director, officer or employee of the Buyer. The provisions of this Section 11.16 shall survive the termination of this
Agreement. 
 Section 11.17 Confidentiality. The Buyer agrees to maintain the confidentiality of any information regarding the
Originator, Cendant Corporation and PHH obtained in accordance with the terms of this Agreement that is not publicly available; provided, however, that the Buyer may reveal such information (a) as necessary or appropriate in
connection with the administration or enforcement of this Agreement or its funding of Purchases under this Agreement or (b) as required by law, government regulation, court proceeding or subpoena. Notwithstanding anything herein to the
contrary, none of the Originator, Cendant Corporation nor PHH shall have any obligation to disclose to the Buyer or its assignees any personal and confidential information relating to a Transferred Employee. The requirements of this
Section 11.17 shall cease to apply to any information that is publicly disclosed by the Originator, Cendant Corporation or PHH. 
  

 31 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers
thereunto duly authorized as of the date first above written. 
  

			
	CENDANT MOBILITY SERVICES CORPORATION
		
	By:	 	 /s/ Eric J. Barnes

	Name:	 	Eric J. Barnes
	Title:	 	Sr. Vice President & CFO
	
	 CENDANT MOBILITY GOVERNMENT FINANCIAL SERVICES CORPORATION

		
	By:	 	 /s/ Eric J. Barnes

	Name:	 	Eric J. Barnes
	Title:	 	Sr. Vice President & CFO

 [Signature Page to CMGFSC Purchase Agreement] 

 APPENDIX A 
 DEFINITIONS 
 A. Defined Terms. As used in this Agreement, the following terms have the following
meanings (such meanings to be equally applicable to the singular and plural forms thereof): 
 “Affiliate” shall mean, when
used with respect to a Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person. As used in this definition of Affiliate, the term “control” means the power, directly or
indirectly, to direct or cause the direction of the management and policies of a Person, whether through the ownership of such Person’s voting securities, by contract or otherwise, and the terms “affiliated,” “controlling”
and “controlled” have correlative meanings. 
 “Amortization Event” shall have the meaning set forth in the
Indenture. 
 “Authorized Officer” shall mean, with respect to any Transaction Party, the President, the Chief Financial
Officer, the Controller, the Treasurer, any Assistant Treasurer, any Senior Vice President, any Vice President, the Secretary or any Assistant Secretary of such Transaction Party. 
 “Average Days Outstanding” shall have the meaning set forth in the Indenture. 
 “Bankruptcy Code” shall mean the United States Bankruptcy Code, as amended from time to time (Title 11 of the United States Code).

 “Billed Receivable” shall mean any CMSC Receivable or CMGFSC Receivable that has been billed to an Obligor. 

“Business Day” shall mean a day (other than a Saturday or Sunday) on which commercial banks in New York, New York are not authorized
or required to be closed. 
 “Buyer” shall mean Cendant Mobility Government Financial Services Corporation, in its capacity
as the buyer under this Agreement. 
 “Buyer’s assignees,” “Buyer or its assignees,”
“Buyer’s successors and assigns,” “Buyer’s assignees” and terms of like import shall include each of the following: (i) the Buyer; (ii) the Issuer; (iii) the Trustee; (iv) each Series
2002-1 Noteholder; (v) each Liquidity Party and (vi) each of their respective successors and assigns under any of the Transaction Documents. 
 “CERCLA” shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
 “Closing Date” shall mean March 7, 2002. 
 “CMGFSC” shall mean
Cendant Mobility Government Financial Services Corporation a Delaware corporation. 
  

 A-1 

 “CMGFSC Collections” shall have the meaning set forth in the Receivables Purchase
Agreement. 
 “CMGFSC Designated Receivable” shall mean any Receivable arising from an amount advanced by CMGFSC or the
Servicer on behalf of CMGFSC in respect of Equity Payments, Mortgage Payoffs, Direct Expenses, Mortgage Payments or Other Reimbursable Expenses, notwithstanding such amounts may be advanced after the Termination Date. 
 “CMGFSC Excluded Asset” shall mean (a) any receivable or related asset that arises under or relates to a CMGFSC Excluded Contract
or (b) any receivable arising under a Guaranteed Government Contract with respect to which the representations and warranties set forth in Section 6.1(g) have not been satisfied. 
 “CMGFSC Excluded Contract” shall mean (a) any of the following, to the extent that the same have not been identified as Pool
Relocation Management Agreements: (i) any agreement for relocation management services that is not an Eligible Contract or (ii) any agreement for relocation management services the receivables arising under which would not be Eligible
Receivables because the homes relating to such agreement would be located solely outside of the United States and (b) any home purchase contract, home sale contract, equity loan note, equity loan agreement or similar agreement entered into
pursuant to any agreement referred to in clause (a) above. 
 “CMGFSC Home” shall have the meaning set forth in the
Receivables Purchase Agreement. 
 “CMGFSC Home Purchase Contract” shall have the meaning set forth in the Receivables
Purchase Agreement. 
 “CMGFSC Home Sale Contract” shall have the meaning set forth in the Receivables Purchase Agreement.

 “CMGFSC Purchase Price” shall have the meaning set forth in Section 3.1(b). 
 “CMGFSC Purchase Termination Event” shall have the meaning set forth in Section 9.1. 
 “CMGFSC Receivable” shall have the meaning set forth in the Receivables Purchase Agreement. 
 “CMSC” shall mean Cendant Mobility Services Corporation, a Delaware corporation. 
 “CMSC Collections” shall mean all funds that are received on account of or otherwise in connection with any CMSC Purchased Asset,
including without limitation all funds received (a) from or on behalf of any Obligor in payment of or otherwise in respect of any CMSC Receivable included in the CMSC Purchased Assets, (b) from or on behalf of any Ultimate Buyer or any
other Person in respect of CMSC Home Sale Proceeds, (c) from any other Person to the extent such funds were applied, or should have been applied, pursuant to any 
  

 A-2 

 Contract to repay or discharge any CMSC Receivable or CMSC Related Asset included in the CMSC Purchased Assets (including
without limitation insurance payments that any Transaction Party applies in the ordinary course of its business to amounts owed in respect of such CMSC Purchased Assets and the amount of any Equity Payments applied to repayment of Equity Loans),
(d) from the Originator in respect of any obligation of the Originator hereunder and (e) from PHH in respect of any payments made by PHH as guarantor of the obligations of CMSC under the PHH Guarantee. 
 “CMSC Equity Loan” shall mean an Equity Loan made by the Originator. 
 “CMSC Equity Loan Agreement” shall mean a loan agreement entered into by the Originator and a Transferred Employee in connection with a
CMSC Equity Loan. 
 “CMSC Equity Loan Note” shall mean a promissory note executed to evidence a CMSC Equity Loan.

 “CMSC Fee Related Property” shall have the meaning set forth in the Fee Receivables Purchase Agreement. 
 “CMSC Home” shall mean any Home subject to a CMSC Home Purchase Contract. 
 “CMSC Home Purchase Contract” shall mean any Home Purchase Contract that was executed, and pursuant to which CMSC purchased a Home,
prior to the Closing Date and that relates to a Receivable included in the CMSC Purchased Assets. 
 “CMSC Home Sale
Contract” shall mean any Home Sale Contract with respect to a CMSC Home. 
 “CMSC Home Sale Proceeds” shall mean
any Home Sale Proceeds arising under a CMSC Home Sale Contract. 
 “CMSC Indemnified Losses” shall have the meaning set
forth in Section 10.1. 
 “CMSC Indemnified Party” shall have the meaning set forth in Section 10.1. 

“CMSC Purchased Assets” shall have the meaning set forth in Section 2.1(a). 
 “CMSC Receivable” shall have the meaning set forth in Section 2.1(a). 
 “CMSC Records” shall mean all Records maintained by the Originator with respect to the CMSC Purchased Assets and/or the related
Obligors. 
 “CMSC Related Assets” shall have the meaning set forth in Section 2.1(a). 
 “CMSC Related Property” shall have the meaning set forth in Section 2.1(a). 
 “CMS Person” shall mean the Originator and each of its Subsidiaries and Affiliates other than CMGFSC or the Issuer. 
  

 A-3 

 “Code” shall mean the Internal Revenue Code of 1986, as amended, together with the rules
and regulations promulgated thereunder. 
 “Concession” shall have the meaning set forth in the Note Purchase Agreement.

 “Contract” shall mean a Pool Relocation Management Agreement and any other related contract entered into pursuant thereto
or in connection therewith, pursuant to or under which any Person (other than a Transaction Party) is obligated to make payments from time to time, including as the context may require any Equity Loan Note, Equity Loan Agreement, Home Purchase
Contract or Home Sale Contract. 
 “Contractual Obligation” shall have the meaning set forth in the Note Purchase Agreement.

 “Credit and Collection Policy” shall mean those credit and collection policies and practices of the Originator relating
to the Contracts and Receivables described in Exhibit 6.1(u), as such credit and collection policies may be modified from time to time in accordance with Section 7.3(b). 
 “Defaulted Receivable” shall mean any Receivable that: 
 (a) has been or should have been written off as uncollectible in conformity with the Credit and Collection Policy; or 
 (b) is owed by an Obligor who is in Insolvency Proceedings or with respect to which an Event of Bankruptcy has occurred; or 
 (c) has been billed and remains unpaid more than 120 days after the original due date thereof. 
 “Direct Expenses” shall mean, with respect to any Home, any costs attributable to the provision of services to a Transferred Employee, including without limitation appraisals, broker’s market analyses and inspections,
brokerage commissions, title and title search fees, transfer taxes, mortgage payments, mortgage interest (or interest on the mortgage payments at the mortgage interest rate), insurance premiums, property taxes, cost of establishment and maintenance
of appropriate files, overnight delivery charges, wire transfer fees, cost of interest in the manner specified in the related Contract, cost of improvements, cost of removal and mitigation of Hazardous Materials or gases (such as removal of
asbestos, lead paint, radon gas or urea formaldehyde insulation) and reinsulation with suitable replacement materials, repair and maintenance costs, utilities, sales loss on resale, buyer incentive costs and real estate closing costs. 
  

 A-4 

 “Eligible Contract” shall mean: 
 (a) a Relocation Management Agreement (i) that has been duly executed and delivered by an Employer that is an Eligible Obligor, is in
full force and effect, and the obligations of the Employer under which are full faith and credit obligations of the United States of America, (ii) (A) the rights to payment under which are assignable without the consent of the Employer
party thereto or any other Person (other than the Originator), other than any such consent that has been obtained and remains in effect, or (B) which, in the case of any Equity Loan Note, Equity Loan Agreement, Home Purchase Contract or Home
Sale Contract, if subject to any restriction on assignment of rights to payment, is in effect on the date of this Agreement and all of the Receivables under such Contract that are subject to such restriction constitute rights to payment for services
rendered not evidenced by an instrument or chattel paper, (iii) that was originated in accordance with the Credit and Collection Policy and (iv) that is substantially in the form of the Relocation Management Agreement referenced in
Schedule 2.1, with such Permitted Changes to such form as may be made by the Originator in the ordinary course of its business (or such other form as has been approved in writing by the Buyer and its successors and assigns); 
 (b) an Equity Loan Agreement or Equity Loan Note (i) that has been duly executed and delivered by a Transferred Employee that is an
Eligible Obligor and that is an employee of an Employer that is a party to a Pool Relocation Management Agreement (which Pool Relocation Management Agreement is then an Eligible Contract) and (ii) that is substantially in the form of Equity
Loan Agreement referenced in the Pool Relocation Management Agreements listed in Schedule 2.1 or the form of Equity Loan Note referenced in the Pool Relocation Management Agreements listed in Schedule 2.1, as applicable, with such Permitted Changes
to such forms as may be made by the Originator in the ordinary course of its business (or, in either case, such other form as has been approved in writing by the Buyer and its successors and assigns); 
 (c) a Home Purchase Contract that (i) has been duly executed and delivered by a Transferred Employee of an Employer that is a party
to a Pool Relocation Management Agreement (which Pool Relocation Management Agreement is then an Eligible Contract) and (ii) is substantially in the form of Home Purchase Contract referenced in the Pool Relocation Management Agreements listed
in Schedule 2.1, with such Permitted Changes to such form as may be made by the Originator in the ordinary course of its business (or such other form as has been approved in writing by the Buyer and its successors and assigns); or 
 (d) a Home Sale Contract that (i) was entered into under or in connection with a Pool Relocation Management Agreement (which Pool
Relocation Management Agreement is then an Eligible Contract), (ii) has been duly executed and delivered by the applicable Ultimate Buyer and is in full force and effect and (iii) is substantially in the form of the contract of purchase
and sale used in the area where the property is located, or on a form prescribed by the Originator for that area, with such amendments and additions as may be reasonably negotiated to efficiently sell the Home (or such other form as has been
approved in writing by the Buyer and its assignees and assigns). 
  

 A-5 

 “Eligible Home” shall mean a Home (a) that is located within the United States,
(b) was purchased by the Originator no more than 180 days prior to the sale of the related CMSC Receivable hereunder (or more than 360 days prior to the sale of the related CMSC Receivable hereunder for Homes purchased under a Guaranteed
Government Contract) and (c) that satisfies the requirements specified in the definition of “Home” in the applicable Pool Relocation Management Agreement or, if such term is not defined therein, in the applicable Home Sale Service
Supplement; provided, however, that a Home that does not satisfy the requirements specified in clause (c) may nonetheless constitute an Eligible Home if and to the extent that (i) the applicable Employer has acknowledged in
writing that such property constitutes a “Special Home Transaction” within the meaning of the applicable Home Sale Service Supplement and (ii) the Originator and its Affiliates followed all necessary procedures and obtained all
necessary approvals with respect to such Home (including without limitation approvals of the applicable Employer) as may be required by the Credit and Collection Policy and the customary practices of the Originator with respect to such Homes; and
provided, further, that houseboats covered as “Special Home Transactions” pursuant to the Home Sale Services Supplements with the Federal Bureau of Investigation and the Drug Enforcement Agency shall not be Eligible Homes.

 “Eligible Obligor” shall mean an Obligor that: 
 (a) is a United States resident (which term includes a Transferred Employee residing outside the United States pursuant to the job
requirements of the related Employer); 
 (b) is the United States of America or any agency or instrumentality thereof or is a
Transferred Employee of any of the foregoing; 
 (c) is not an Affiliate of the Originator or the Buyer; 
 (d) is not the subject of an Insolvency Proceeding; and 
 (e) has been instructed by the Originator to remit all payments on the CMSC Purchased Assets directly to one of the Lockboxes or Lockbox
Accounts. 
 “Eligible Receivable” shall mean any Receivable: 
 (a) the Obligor of which is an Eligible Obligor; 
 (b) that is denominated and payable only in U.S. dollars; 
 (c) that was generated in the ordinary course of the Originator’s business; 
 (d) either (1) with respect to which all of the Originator’s right, title and interest has been (or will be, at the time such
Receivable becomes included in the CMSC Purchased Assets) validly transferred to the Buyer under and in accordance with the terms of this Agreement; or (2) with respect to any CMGFSC Receivable only, that arose out of or with respect to an
Equity Payment, Mortgage Payment or Mortgage Payoff made by the Buyer in respect of a CMGFSC Home Purchase Contract; 
  

 A-6 

 (e) that arises under or in connection with a Pool Relocation Management Agreement that
is then an Eligible Contract, and with respect to which any Home Sale Contract, Home Purchase Contract, Equity Loan Agreement or Equity Loan Note relating to such Receivable is also an Eligible Contract; 
 (f) that is not a Defaulted Receivable or a Concession; 
 (g) the purchase of which with the proceeds of the issuance of commercial paper constitutes a “current transaction” within the
meaning of Section 3(a)(3) of the Securities Act of 1933, as amended; 
 (h) that constitutes an “account” or a
“general intangible” or “chattel paper” and not an “instrument” (except in the case of an Equity Loan, to the extent the same is evidenced by an Equity Loan Note), in each case within the meaning of the New York UCC;

 (i) the transfer of which (including without limitation the sale by the Originator to the Buyer or by the Buyer to the
Issuer) and the pledge of which by the issuer to the Trustee) does not contravene or conflict with any Requirement of Law, or any Contractual Obligation or other restriction, limitation or encumbrance that applies to the Originator (or, with respect
to any CMGFSC Receivable only, the Buyer) (including without limitation the related Contract), and the sale, assignment or transfer of which, and the granting of a security interest in which, does not require the consent of the Obligor thereof or
any other Person other than any such consent that has been previously obtained and is in effect; provided, however, that a Receivable arising out of a Relocation Management Agreement that is subject to a restriction on assignment may
nonetheless be an Eligible Receivable hereunder if such Receivable constitutes a right to payment for services rendered not evidenced by an instrument or chattel paper; 
 (j) that has not been compromised, adjusted, amended or otherwise modified (including by extension of time for payment or the granting of
any discounts, allowances or credits) except in a manner that is expressly permitted under Section 3.10(b) of the Servicing Agreement; 
 (k) that, together with the Contracts related thereto, conforms in all material respects with all applicable Requirements of Law, rules, regulations, orders, judgments, decrees and determinations of all courts and
other Governmental Authorities (whether federal, state, local or foreign and including without limitation usury laws and consumer protection laws); 
 (l) with respect to which the representations and warranties of the Originator in Section 6.1(k) of this Agreement (or with respect to any CMGFSC Receivable only, of the Buyer in Section 6.1(k) of the
Receivables Purchase Agreement) are true and correct; 
  

 A-7 

 (m) that represents a bona fide obligation arising under a Contract that has been
duly authorized and that, together with such Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of the Obligor of such Receivable, enforceable against such Obligor in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and general principles of equity; 
 (n) that, in the case of a Receivable arising on account of any Equity Payment, Mortgage Payoff, Mortgage Payment, Direct Expenses or any
Service Fee or Finance Charge arising in connection with any of the foregoing, relates to an Eligible Home as to which (i) a Home Purchase Contract has been executed and delivered by the related Homeowner and the Originator or the Buyer, as
applicable and, to the best knowledge of the Originator (or the Buyer, with respect to CMGFSC Homes only), constitutes the legal, valid and binding obligation of such Homeowner, (ii) a Home Deed has been executed and delivered by the related
Homeowner naming the Originator or the Buyer, as applicable, as transferee, (iii) such Home Purchase Contract and Home Deed have been delivered to and are then in the possession of the agent of CMSC (with respect to CMSC Homes) or the agent of
CMGFSC (with respect to CMGFSC Homes) and (iv) either no Mortgage is outstanding or, if a Mortgage is outstanding, no more than one monthly payment on such Mortgage is past due; 
 (o) that, in the case of a Receivable that arises from an Equity Loan, arose under an Equity Loan Agreement and an Equity Loan Note, each
of which are Eligible Contracts and are then in the possession of the Servicer; 
 (p) that, in the case of an Unbilled
Receivable, represents the right to payment for services rendered; 
 (q) that, in the case of a Billed Receivable, has been
fully earned by performance; and 
 (r) that, in the case of a Receivable arising on account of any Direct Expenses or any
Service Fee or Finance Charge arising in connection with any of the foregoing, is payable no more than 60 days after the invoice date. 
 “Eligible Unsold Home Receivable” shall mean an Unsold Home Receivable that is an Eligible Receivable. 
 “Employer” shall mean a customer of the Originator that has executed a Relocation Management Agreement with the Originator. 
 “Environmental Laws” shall mean all applicable Requirements of Law relating to public health and safety and protection of the environment. 
 “Equity Assets” shall have the meaning set forth in Section 2.1(a). 
  

 A-8 

 “Equity Loan” shall mean an advance of all or a portion of the Equity Payment to be made
to a Homeowner prior to the execution of the Home Purchase Contract by such Homeowner. 
 “Equity Loan Agreement” shall mean
a loan agreement entered into by a Transferred Employee in connection with an Equity Loan or a proposed Equity Loan. 
 “Equity Loan
Note” shall mean a promissory note made by a Transferred Employee to evidence the Transferred Employee’s obligations in respect of an Equity Loan, which may be included in the same document as an Equity Loan Agreement. 
 “Equity Payment” shall mean, with respect to any Homeowner, a payment or credit (other than an Equity Loan) made to such Homeowner at
the time of, or following the execution of the related Home Purchase Contract by such Homeowner in respect of its equity interest in a Home as determined pursuant to the applicable Home Purchase Contract. 
 “Equity Receivables” shall have the meaning set forth in Section 2.1(a). 
 “Equity Related Assets” shall have the meaning set forth in Section 2.1(a). 
 “Equity Related Property” shall have the meaning set forth in Section 2.1(a). 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974 and the rules and regulations thereunder, each as amended from
time to time. 
 “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that is treated as a
single employer with the Originator under Section 414 of the Code. 
 “Event of Bankruptcy” shall be deemed to have
occurred with respect to a Person if either: 
 (a) a case or other proceeding has been commenced in any court without the
application or consent of such Person, seeking the liquidation, reorganization, debt arrangement, dissolution, winding up or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator,
assignee, sequestrator or the like for such Person or any substantial part of its assets, or any similar action with respect to such Person under any law (foreign or domestic) relating to bankruptcy, insolvency, reorganization, winding up or
composition or adjustment of debts and such case or proceeding continues undismissed or unstayed and in effect for a period of 60 days; or an order for relief with respect to such Person has been entered in an involuntary case under the Bankruptcy
Code or other similar laws (foreign or domestic) now or hereafter in effect; or 
 (b) such Person has commenced a voluntary
case or other proceeding under any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect or shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar official) for, such Person or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall admit in writing its
inability to, pay its debts generally as they become due. 
  

 A-9 

 “Event of Default” shall have the meaning set forth in the Indenture. 
 “Fee Receivables Purchase Agreement” shall mean the purchase agreement dated March 7, 2002 by and between the Originator and the
Issuer. 
 “Final Payout Date” shall mean the earlier of the date after the satisfaction and discharge of the
Indenture pursuant to Article IV thereof on which either (i) all of the Notes have been paid in full or (ii) the Unpaid Balance of all outstanding CMSC Receivables has been reduced to zero; provided that for purposes of this
definition of Final Payout Date, the Unpaid Balance of a Defaulted Receivable shall be deemed to be outstanding until all Homes related thereto have been sold and such Receivable has been written off as uncollectible. 
 “Finance Charge” shall mean any interest, late payment fee or other finance charge with respect to a Receivable or other Related
Property, including without limitation any interest accrued or to accrue on an Equity Loan, Equity Payment, Mortgage Payoff or Mortgage Payment under the terms of the applicable Contract or Contracts. 
 “Funding Termination Date” shall have the meaning set forth in the Note Purchase Agreement. 
 “GAAP” shall mean generally accepted accounting principles, including the opinions, statements and pronouncements of the American
Institute of Certified Public Accountants, the Financial Accounting Standards Board and the Securities and Exchange Commission, as in effect from time to time. 
 “Governmental Authority” shall have the meaning set forth in the Note Purchase Agreement. 
 “Guaranteed Government Contract” shall mean any Relocation Management Agreement that provides for the payment in full by the Employer of all Direct Expenses, Service Fees and Other Reimbursable Expenses and any loss sustained with respect to a Home covered thereby following the sale of such Home (and after giving effect to
the application of the Home Sale Proceeds with respect to such Home). 
 “Hazardous Material” shall mean (a) any
“hazardous substance” as defined under CERCLA, (b) any “hazardous waste” as defined under the Resource Conservation and Recovery Act, 42 U.S.C. Section 690, et seq., as amended, (c) any petroleum product or
(d) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material or substance within the meaning of any Environmental Laws. 
 “Home” shall mean a family residence or other improved real estate that is the subject of any services provided under a Pool Relocation Management Agreement, including without limitation any Home or
property subject to a “Special Home Transaction” within the meaning of the applicable Home Sale Service Supplement. 
  

 A-10 

 “Home Deed” shall mean, with respect to any Home, a deed or other instrument of
conveyance executed by the related Homeowner that effects the conveyance of such Home pursuant to the related Home Purchase Contract. 
 “Home Purchase Contract” shall mean the contract by which a Home is purchased from a Homeowner pursuant to, or in connection with, a Pool Relocation Management Agreement. 
 “Home Sale Contract” shall mean, with respect to any Home, the contract by which such Home is sold to an Ultimate Buyer. 
 “Home Sale Proceeds” shall mean, with respect to any Home, the cash sale proceeds received upon the sale of such Home to an Ultimate
Buyer, net of any unpaid mortgage loan amounts, closing costs, brokerage costs, commissions owed to third parties and any other amounts payment of which are necessary to clear title to such Home. 
 “Home Sale Service Supplement” shall mean a supplement to a Pool Relocation Management Agreement substantially in the form referenced in
the Pool Relocation Management Agreements listed in Schedule 2.1. 
 “Homeowner” shall mean, with respect to any Home, the
Transferred Employee and any other homeowner of record with respect to such Home. 
 “Indenture” shall mean the Indenture
dated as of March 7, 2002 by and between the Issuer and the Trustee. 
 “Independent” shall mean, when used with
respect to any specified Person at any time, that the Person (a) is in fact independent of such Person and any and any other Person a party to, or obligated in respect of, any of the Transaction Documents or with an ownership interest in any of
the assets of any such Person and of any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in any such Person, and (c) is not, and has not at any time in
the preceding five years been connected with such Person as an officer, employee, promoter, underwriter, trustee, partner, director, accountant, attorney, consultant, adviser or person performing similar functions. 
 “Insolvency Proceeding” shall mean, with respect to any Person, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any Federal or state bankruptcy or similar law or any other proceeding of the type described in the definition of Event of Bankruptcy, whether voluntary or involuntary. 
 “Issuer” shall mean Kenosia Funding LLC, a Delaware limited liability company. 
 “KF Purchased Assets” shall have the meaning set forth in the Receivables Purchase Agreement. 
 “KF Receivable” shall mean any Receivable owed by an Employer pursuant to a Pool Relocation Management Agreement that is not a
Guaranteed Government Contract. 
  

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 “Lien” shall mean, when used with respect to any Person, any interest in any real or
personal property, asset or other right held, owned or being purchased or acquired by such Person for its own use, consumption or enjoyment in its business that secures payment or performance of any obligation, and includes any mortgage, lien,
pledge, encumbrance, charge, retained security title of a conditional vendor or lessor or other security interest of any kind, whether arising under a security agreement, mortgage, deed of trust, chattel mortgage, assignment, pledge, retention of
security title, financing or similar statement or notice or arising as a matter of law, judicial process or otherwise. 
 “Liquidity
Party” shall have the meaning set forth in the Note Purchase Agreement. 
 “Lockbox” shall mean any post office box
to which the Obligors remit CMSC Collections established pursuant to the Servicing Agreement. 
 “Lockbox Account” shall
mean any lockbox account, concentration account, depositary account or similar account (including any associated demand deposit account) established pursuant to the Servicing Agreement, in which any CMSC Collections or CMGFSC Collections are
collected or deposited. 
 “Lockbox Agreement” shall have the meaning provided in the Servicing Agreement. 
 “Lockbox Bank” shall mean any institution at which a Lockbox or Lockbox Account is maintained. 
 “Material Adverse Effect” shall mean, with respect to any event or circumstance, a material adverse effect on (a) the business,
financial condition, operations or assets of the Originator, (b) the ability of the Originator to perform its obligations under any Transaction Document or all or any substantial portion of the Contracts, (c) the validity or enforceability
of, or collectibility of, amounts payable by the Originator under any Transaction Document, (d) the status, existence, perfection or priority of the interest of the Buyer (and its assignees) in the CMSC Purchased Assets, taken as a whole, in
each case free and clear of any Lien (other than Permitted Liens) or (e) the validity, enforceability or collectibility of all or any substantial portion of the KF Purchased Assets. 
 “Monthly Originator Report” shall have the meaning set forth in the Servicing Agreement. 
 “Mortgage” shall mean, with respect to a Home, either or both of (a) any indebtedness of the relevant Homeowner secured by a
mortgage, deed of trust or other Lien on such Home and (b) such mortgage, deed of trust or other Lien, as the context may require. 
 “Mortgage Payment” shall mean, with respect to any Home, any payment actually made under any Mortgage on such Home (other than a Mortgage Payoff), including without limitation payments of principal and interest and for
taxes and insurance. 
  

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 “Mortgage Payoff” shall mean, with respect to any Home, the amount, if any, paid to
retire the entire remaining principal balance of any Mortgage on such Home, together with interest accrued thereon to the date of payment. 
 “Multiemployer Plan” shall mean at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any ERISA Affiliate is then making or accruing an obligation to make contributions
or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Affiliate during such five year period. 
 “Note Purchase Agreement” shall mean the Note Purchase Agreement dated as of the date hereof, among the Originator, the Buyer, the
Issuer, Gotham and the Administrative Agent, as from time to time amended, supplemented or modified. 
 “Notes” shall have
the meaning set forth in the Indenture. 
 “Obligor” shall mean, with respect to any Contract, the Person or Persons
obligated to make payments in respect of Receivables arising thereunder, including without limitation (i) with respect to any Service Fees, the related Employer, (ii) with respect to any Guaranteed Government Contract, Equity Payment,
Mortgage Payoff or Mortgage Payment, the related Employer and (iii) with respect to any Equity Loan, the Transferred Employee or, in the case of any Guaranteed Government Contract, both the Transferred Employee and the related Employer.

 “Originator” shall mean CMSC and its successors and permitted assigns. 
 “Other Reimbursable Expense” shall mean a cost or expense that is incurred and paid in connection with services under a Pool Relocation
Management Agreement or reimbursable by the Obligor under the applicable Pool Relocation Management Agreement, and that is not included in the calculation of Direct Expenses thereunder. 
 “PBGC” shall mean the Pension Benefit Guaranty Corporation and any successor thereto. 
 “Performance Guarantor” shall mean PHH. 
 “Permitted Change” shall mean, with respect to any Contract the form of which is referenced in the Pool Relocation Management Agreements listed in Schedule 2.1, any revisions or modifications to such
form that (i) are made by the Originator in the ordinary course of its business consistent with the Credit and Collection Policy, (ii) do not, individually or in the aggregate, materially adversely affect the collectibility of the CMSC
Receivables or any Receivables arising under or in connection with any CMGFSC Home Purchase Contract, (iii) do not, individually or in the aggregate, materially alter (in a manner adverse to the Originator or any of its assigns) the
reimbursement or indemnification obligations of such Obligor thereunder or the composition of the losses, costs or expenses to which such reimbursement or indemnification obligations pertain, (iv) would not cause such Contract to cease to be an
Eligible Contract or the Receivables arising thereunder to cease to be Eligible Receivables and (v) do not violate any of the terms and provisions of this Agreement. 
  

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 “Permitted Exception” shall mean that, with respect to any representation, warranty or
covenant with respect to the interest of the Buyer and its assignees in the KF Purchased Assets or any Servicer Default, that (i) prior to recordation (A) pursuant to Section 8.3 of this Agreement and/or Section 2.01(d)(i) of the
Servicing Agreement or (B) upon the sale of a Home to an Ultimate Buyer, record title to such Home may remain in the name of the related Transferred Employee, and no recordation in real estate records of any mortgage or any conveyance pursuant
to the related Home Purchase Contract or Home Sale Contract in favor of any Transaction Party or any of the Buyer’s assignees and assigns pursuant to the Receivables Purchase Agreement will be made except as otherwise permitted under
Section 2.01(d)(i) of the Servicing Agreement and (ii) no delivery of any Home Purchase Contracts, Home Deeds and Equity Loan Notes to any custodian will be required. 
 “Permitted Lien” shall mean: 
 (a) with respect to any Home, the related Receivables or Related Property with respect thereto, (i) an inchoate Lien on the Home for real estate taxes not yet due and payable, (ii) a Mortgage on the Home
created by the related Transferred Employee and (iii) any Lien that is fully covered by the terms of the indemnity provisions of the applicable Pool Relocation Management Agreement and that arises in the ordinary course of the Originator’s
business; 
 (b) with respect to any CMSC Purchased Asset, any Lien in favor of the Buyer pursuant to this Agreement; and

 (c) with respect to any KF Purchased Asset, any Lien in favor of Buyer or its assignees created pursuant to the Transaction
Documents. 
 “Person” shall mean an individual, partnership, corporation (including a business trust), joint stock company,
trust, limited liability company, unincorporated association, joint venture, government or any agency or political subdivision thereof or any other entity. 
 “PHH” shall mean PHH Corporation, a Maryland corporation, and any successor thereto. 
 “PHH Guarantee” shall mean the performance guarantee dated as of the Closing Date, executed by the Performance Guarantor in favor of the Buyer, the Issuer, the Trustee and the Purchaser and the Administrative Agent under
the Note Purchase Agreement. 
 “Plan” shall mean each employee benefit plan (as defined in Section 3(3) of ER1SA)
currently sponsored, maintained or contributed to by the Originator or any ERISA Affiliate or with respect to which the Originator or any ERISA Affiliate has any liability. 
 “Pool Relocation Management Agreement” shall have the meaning set forth in Section 2.1(a). 
 “Prime Rate” shall mean the rate of interest announced from time to time by Bank of Tokyo-Mitsubishi Trust Company in New York City as
its Prime Rate. 
  

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 “Purchase” shall mean each purchase of CMSC Receivables and other CMSC Purchased Assets
by the Buyer from the Originator hereunder. 
 “Receivable” shall mean any right arising under a Contract to receive any
payment or any funds from or on behalf of an Obligor, whether or not earned by performance and whether constituting an account, chattel paper, instrument, general intangible or otherwise. The term “Receivable” includes without limitation
rights to payment (whether matured or unmatured and whether absolute or contingent) arising out of or with respect to Equity Loans, Equity Payments, Direct Expenses, Mortgage Payments, Mortgage Payoffs, Service Fees and Other Reimbursable Expenses
and the right to payment of any and all Finance Charges with respect to any of the foregoing, whether such amounts are owed by an Employer, a Transferred Employee, an Ultimate Buyer or any other Obligor. The change of a Receivable’s status from
that of Unbilled Receivable to Billed Receivable shall not be deemed the creation of a new Receivable for any purpose hereunder. 
 “Receivables Purchase Agreement” shall mean the receivables purchase agreement dated as of March 7, 2002 by and between the Buyer and the Issuer. 
 “Records” shall mean all Contracts, purchase orders, invoices, customer lists, credit files and other agreements, documents, books,
records and other media for the storage of information (including without limitation tapes, disks, punch cards, computer software and databases and related property) with respect to the Receivables, the Related Property and/or the related Obligors.

 “Related Property” shall mean, with respect to any Receivable, (i) all security interests or liens and property
subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the related Relocation Management Agreement or any other Contract related to such Receivable or otherwise; (ii) all guarantees and other
agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable, (iii) all rights under warranties, indemnities or insurance with respect to such Receivable, related Contracts, CMSC Related Assets
(with respect to CMSC Receivables) or CMGFSC Related Assets (with respect to CMGFSC Receivables), (iv) all rights to the CMSC Home Sale Proceeds arising out of or with respect to any CMSC Homes and CMGFSC Home Sale Proceeds arising out of or
with respect to any CMGFSC Homes under the related Relocation Management Agreement and (v) all Records. 
 “Relocation
Management Agreement” shall mean an agreement pursuant to which the Originator agrees to provide employee relocation, asset management or other services, as the same may be amended, restated or otherwise modified from time to time,
including any and all supplements thereto, and any similar agreement, howsoever denominated, and any agreement for intercultural services. 
 “Requirements of Law” shall have the meaning set forth in the Note Purchase Agreement. 
 “Restricted
Payment” shall mean, with respect to any Person, (i) any dividend or other distribution on any shares of capital stock of, or other Security issued by, such Person or 
  

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 (ii) any payment on account of the purchase, redemption, retirement or acquisition of (a) any shares of capital
stock of, or other Security issued by, such Person or (b) any option, warrant or other right to acquire shares of the capital stock of, or other Security issued by, such Person or (iii) any loan, advance or other direct or indirect provision of
funds or credit by such Person to any holder of any shares of its capital stock or of any other Security issued by it. 
 “Security” shall have the meaning set forth in the Note Purchase Agreement. 
 “Service Fee” shall
mean any fee payable by an Employer under a Pool Relocation Management Agreement, including without limitation any fee payable with respect to the marketing and sale of a particular Home or otherwise in connection with any employee relocation
services or asset management services performed under or in connection with such Pool Relocation Management Agreement. 
 “Servicer” shall mean the Originator, in its capacity as the Servicer under the Servicing Agreement, and any successor thereto in such capacity appointed pursuant to Article IX of the Servicing Agreement. 
 “Servicer Default” shall have the meaning set forth in the Servicing Agreement. 
 “Servicing Agreement” shall mean the servicing agreement dated as of March 7, 2002 by and between the Originator, the Buyer, the
Servicer, the Issuer and the Trustee. 
 “Solvent” shall have the meaning set forth in the Note Purchase Agreement.

 “Subsidiary” shall mean, with respect to any Person, any corporation or other entity of which more than 50% of the
outstanding capital stock or other ownership interests having ordinary voting power to elect a majority of the board of directors of such corporation (notwithstanding that at the time capital stock of any other class or classes of such corporation
shall or might have voting power upon the occurrence of any contingency) or other persons performing similar functions is at the time directly or indirectly owned by such Person. 
 “Surviving Entity” shall have the meaning provided in Section 7.3(c)(i). 
 “Termination Date” shall mean the earlier of (i) the occurrence of a Funding Termination Date or (ii) the date
specified by the Trustee following the occurrence of a CMGFSC Purchase Termination Event; provided, however, that if an Event of Bankruptcy has occurred with respect to either the Originator or the Buyer, the Termination Date shall be
deemed to have occurred automatically without any such notice. 
 “Transaction Documents” shall mean, collectively, this
Agreement, the Receivables Purchase Agreement, the Servicing Agreement, the PHH Guarantee, the Lockbox Agreements and all agreements, instruments, certificates, reports and documents (other than any of the Contracts) executed and delivered or to be
executed and delivered under or in connection with any of the foregoing, as any of the foregoing may be amended, supplemented, restated or otherwise modified from time to time. 
  

 A-16 

 “Transaction Party” shall mean the Buyer, the Originator, the Issuer or the Servicer (so
long as the Servicer is the Originator or an Affiliate thereof). 
 ‘Transferred Employee” shall mean an
individual designated by an authorized representative of an Employer pursuant to the applicable Relocation Management Agreement as a person entitled to the benefits of such Relocation Management Agreement. 
 “Trustee” shall mean The Bank of New York, as trustee under the Indenture, and any successor thereto. 
 “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions. 

“Ultimate Buyer” shall mean the buyer of a Home from the Originator (or from the Buyer or its assignee, as the case may be).

 “Unbilled Receivable” shall mean any CMSC Receivable or CMGFSC Receivable (other than any Unsold Home Receivable) that
has not yet been billed to the related Obligor. 
 “Unmatured Servicer Default” shall have the meaning set forth in the
Servicing Agreement. 
 “Unpaid Balance” of any Receivable shall mean at any time the unpaid amount thereof at such time;
provided, however, that the Unpaid Balance of Unsold Home Receivables with respect to any Home shall be the aggregate amount (without duplication) of Receivables arising from Equity Payments, Mortgage Payoffs, Mortgage Payments and
Equity Loans in respect of such Home. 
 “Unsold Home Receivable” shall mean any CMSC Receivable or CMGFSC Receivable,
including any Finance Charges in respect thereof, incurred in respect of an Equity Loan, Equity Payment, Mortgage Payoff or Direct Expenses on a Home that has not yet been sold to an Ultimate Buyer (or the sale of which has not been closed or the
Home Sale Proceeds of which have not been received). 
 B. Other Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP or with United States generally accepted regulatory principles, as applicable. To the extent that the definitions of accounting terms in this Agreement are inconsistent with the meanings of such terms under GAAP or
regulatory accounting principles, the definitions contained in this Agreement shall control. All terms used in Article 9 of the UCC in the State of New York and not specifically defined herein are used herein as defined in such Article 9.

 C. Computation of Time Periods. Unless otherwise stated in this Agreement with respect to computation of a period of time from a
specified date to a later specified date, the word “from” means “from and including” and each of the words “to” and “until” means “to but excluding”. 
  

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 D. Reference. The words “hereof”, “herein” and “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and references to “Section”, “subsection”, “Appendix”,
“Schedule” and “Exhibit” in this Agreement are references to Sections, subsections, Appendices, Schedules and Exhibits in or to this Agreement unless otherwise specified in this Agreement. 
  

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