Document:

EX-10.3

 

Exhibit 10.3

MASTER TERMS AND CONDITIONS FOR WARRANTS

ISSUED BY PHH CORPORATION

          The purpose of this Master Terms and Conditions for Warrants (this “Master
Confirmation”), dated as of March 27, 2008, is to set forth certain terms and conditions for
warrant transactions that PHH Corporation (“Issuer”) shall enter into with JPMorgan Chase
Bank, National Association (“JPMorgan”), as initial purchaser. Each such transaction (a
“Transaction”) entered into between JPMorgan and Issuer that is to be subject to this
Master Confirmation shall be evidenced by a written confirmation substantially in the form of
Exhibit A hereto, with such modifications thereto as to which Issuer and JPMorgan mutually agree (a
“Confirmation”). This Master Confirmation and each Confirmation together constitute a
“Confirmation” as referred to in the Agreement specified below.

          This Master Confirmation and a Confirmation evidence a complete binding agreement between you
and us as to the terms of the Transaction to which this Master Confirmation and such Confirmation
relates. This Master Confirmation and each Confirmation hereunder, shall supplement, form a part
of, and be subject to an agreement in the form of the 1992 ISDA Master Agreement
(Multicurrency-Cross Border) as if we had executed an agreement in such form on the Trade Date of
the first such Transaction (but without any Schedule except for the election of (i) the laws of the
State of New York as the governing law and (ii) United States dollars as the Termination Currency)
between you and us, and such agreement shall be considered the “Agreement” hereunder.

          The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Definitions”) as published by ISDA are incorporated into this Master Confirmation. For
the purposes of the Definitions, each reference herein or in any Confirmation hereunder to a
Warrant shall be deemed to be a reference to a Call Option or an Option, as context requires.

          THIS MASTER CONFIRMATION WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE. THE PARTIES HERETO IRREVOCABLY
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND
WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO,
THESE COURTS.

          The Transactions under this Master Confirmation shall be the sole Transactions under the
Agreement. If there exists any ISDA Master Agreement between JPMorgan and Issuer or any
confirmation or other agreement between JPMorgan and Issuer pursuant to which an ISDA Master
Agreement is deemed to exist between JPMorgan and Issuer, then notwithstanding anything to the
contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to
which JPMorgan and Issuer are parties, the Transactions under this Master Confirmation and the
Agreement shall not be considered Transactions under, or otherwise governed by, such existing or
deemed ISDA Master Agreement.

          1. In the event of any inconsistency between this Master Confirmation, on the one hand, and
the Definitions or the Agreement, on the other hand, this Master Confirmation will control for the
purpose of the Transaction to which a Confirmation relates. In the event of any inconsistency
between the Definitions, the Agreement and this Master Confirmation, on the one hand, and a
Confirmation, on the other hand, the Confirmation will govern. With respect to a Transaction,
capitalized terms used herein that are not otherwise defined shall have the meaning assigned to
them in the Confirmation relating to such Transaction.

          2. Each party will make each payment specified in this Master Confirmation or a Confirmation
as being payable by such party, not later than the due date for value on that date in the place of
the account specified

 

 

below or otherwise specified in writing, in freely transferable funds and in a manner
customary for payments in the required currency.

          3. Confirmations and General Terms:

          This Master Confirmation and the Agreement, together with the Confirmation relating to a
Transaction, shall constitute the written agreement between Issuer and JPMorgan with respect to
such Transaction. Each Transaction to which a Confirmation relates is a Warrant Transaction, which
shall be considered a Share Option Transaction for purposes of the Definitions, and shall have the
following terms:

	 	 	 
	Components:

	 	Each Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in the Confirmation for such Transaction. The payments and
deliveries to be made upon settlement of each Transaction will be determined separately
for each Component or such Transaction as if each Component were a separate Transaction
under the Agreement.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Warrant Type:

	 	Call
	 
	 	 
	Seller:

	 	Issuer
	 
	 	 
	Buyer:

	 	JPMorgan
	 
	 	 
	Shares:

	 	The common stock, USD 0.01 par value per share, of Issuer (Ticker Symbol: “PHH”).
	 
	 	 
	Trade Date:

	 	As set forth in the Confirmation for such Transaction
	 
	 	 
	Effective Date:

	 	As set forth in the Confirmation for such Transaction
	 
	 	 
	Number of Warrants:

	 	For each Component, as set forth in the Confirmation for such
Transaction.
	 
	 	 
	Multiple Exercise:

	 	Not Applicable
	 
	 	 
	Warrant Entitlement:

	 	One Share Per Warrant
	 
	 	 
	Minimum Number of
Warrants:

	 	0
	 
	 	 
	Maximum Number of Warrants:

	 	For any Transaction, the Number of Warrants for such
Transaction.
	 
	 	 
	Strike Price:

	 	As set forth in the Confirmation for such Transaction
	 
	 	 
	Premium:

	 	As set forth in the Confirmation for such Transaction
	 
	 	 
	Premium Payment Date:

	 	As set forth in the Confirmation for such Transaction

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	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchanges:

	 	All Exchanges
	 
	 	 
	Calculation Agent:

	 	Buyer.

          4. Procedure for Exercise and Valuation:

	 	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Dates:

	 	As set forth in the Confirmation for such Transaction (or, if such date is
not a Scheduled Trading Day, the next following Scheduled Trading Day that is not
already an Expiration Date for another Component); provided that if that date
is a Disrupted Day, the Expiration Date for such Component shall be the first
succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is not
deemed to be an Expiration Date in respect of any other Component of a Transaction
hereunder; and provided, further, that if the Expiration Date has not
occurred pursuant to the preceding proviso as of the Final Disruption Date, the Final
Disruption Date shall be the Expiration Date (irrespective of whether such date is an
Expiration Date in respect of any other Component for a Transaction).
Notwithstanding the foregoing and anything to the contrary in the Definitions, if a
Market Disruption Event occurs on any Expiration Date, the Calculation Agent may
determine that such Expiration Date is a Disrupted Day only in part, in which case the
Calculation Agent shall make adjustments to the number of Warrants for the relevant
Component for which such day shall be the Expiration Date and shall designate the
Scheduled Trading Day determined in the manner described in the immediately preceding
sentence as the Expiration Date for the remaining Warrants for such Component. Section
6.6 of the Definitions shall not apply to any Valuation Date occurring on an Expiration
Date.
	 
	 	 
	Automatic Exercise:

	 	Applicable. The Warrants for any Component shall be deemed
automatically exercised at the Expiration Time on the Expiration Date for such
Component if at such time the Warrants are In-the-Money; provided that all
references in Section 3.4(b) of the Equity Definitions to “Physical Settlement” shall
be read as references to “Net Share Settlement.” “In-the-Money” means, for any
Transaction, that the Reference Price is greater than the Strike Price for such
Transaction.
	 
	 	 
	Reference Price:

	 	For any Valuation Date, the per Share volume-weighted average price on the
Exchange as displayed under the heading “Bloomberg VWAP” on Bloomberg page PHH.N
<equity> AQR (or any successor thereto) in respect of the period from

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	 	the scheduled opening time to the Scheduled Closing
Time (New York City time) on such Valuation Date (or
if such volume-weighted average price is unavailable,
the market value of one Share on such Valuation Date,
as determined by the Calculation Agent).
Notwithstanding anything to the contrary in the
Definitions, if there is a Market Disruption Event on
any Valuation Date, then the Calculation Agent shall
determine the Reference Price for such Valuation Date
on the basis of its good faith estimate of the market
value for the relevant Shares on such Valuation Date.
	 
	 	 
	Valuation Time:

	 	As defined in Section 6.1 of the Definitions
	 
	 	 
	Valuation Date:

	 	Each Exercise Date
	 
	 	 
	Final Disruption
Date:

	 	For any Transaction, the eighth Scheduled Trading Day
immediately following the scheduled Expiration Date for the last Component of such
Transaction.
	 
	 	 
	Market Disruption
Event:

	 	The third and fourth lines of Section 6.3(a) of the Definitions are
hereby amended by deleting the words “during the one hour period that ends at the
relevant Valuation Time” and replacing them with “at any time prior to the relevant
Valuation Time”.

          5. Settlement Terms:

	 	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Net Share Settlement:

	 	On each Settlement Date, Issuer shall deliver to Buyer a
number of Shares equal to the Net Share Amount for such Settlement Date to the account
specified by Buyer and cash in lieu of any fractional shares valued at the Reference
Price for the Valuation Date corresponding to such Settlement Date. If Buyer
reasonably determines that, for any reason, the Shares deliverable upon Net Share
Settlement would not be immediately freely transferable by Buyer under Rule 144 under
the Securities Act of 1933, as amended (the “Securities Act”), then Buyer may
elect to either (x) accept delivery of such Shares notwithstanding any restriction on
transfer or (y) have the provisions set forth in Section 12(c) below apply.
	 
	 	 
	Net Share Amount:

	 	For any Settlement Date, a number of Shares, as calculated by the
Calculation Agent, equal to the product of (i) the number of Warrants being exercised
or deemed exercised on the Exercise Date corresponding to such Settlement Date, and
(ii) the excess, if any, of the Reference Price for the Valuation Date corresponding to
such Settlement Date over the Strike Price for the relevant Transaction (such product,
the “Net Share Settlement Amount”), divided by such Reference Price.
	 
	 	 
	Settlement Currency:

	 	USD

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	Failure to Deliver:

	 	Applicable
	 
	 	 
	Representation and Agreement:

	 	To the extent Seller is obligated to deliver Shares hereunder,
the provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 9.12 of the Definitions will be
applicable as if Physical Settlement were applicable to the Transaction;
provided that the Representation and Agreement contained in Section 9.11 of the
Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws
arising as a result of the fact that Seller is the Issuer of the Shares.
	 
	 	 
	Maximum Delivery Amount:

	 	As set forth in the Confirmation for such Transaction

          6. Dividends:

	 	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Dividend Adjustments:

	 	Issuer agrees to notify Buyer promptly of the announcement of an
ex-dividend date of any cash dividend by the Issuer. If an ex-dividend date with
respect to a cash dividend occurs at any time from but excluding the Trade Date for the
Transaction that includes such Component to and including the Expiration Date for such
Component, then in addition to any adjustments as provided under “Share Adjustments”
below, the Calculation Agent shall make such adjustments to the Strike Price, Number of
Warrants and/or Number of Warrants per Component for such Transaction as it deems
appropriate to preserve for the parties the intended economic benefits of such
Transaction.
	 
	 	 
	 

	 	The Calculation Agent shall provide prompt notice of
any such adjustments, including a schedule or other
reasonably detailed explanation of the basis for and
determination of each adjustment.

          7. Share Adjustments:

	 	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment.
	 
	 	 
	New Shares:

	 	In the definition of New Shares in Section 12.1(i) of the Definitions,
the text in clause (i) thereof shall be deleted in its entirety and replaced with
“issued by an entity or person organized under the laws of the United States, any State
thereof or the District of Columbia and publicly quoted, traded or listed on any of the
New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market
or the NASDAQ Global Market (or their respective successors)”.

          8. Extraordinary Events:

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	Consequences of Merger Events:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for Other:

	 	Cancellation and Payment (Calculation Agent Determination)
	 
	 	 
	(c) Share-for-Combined:

	 	Cancellation and Payment (Calculation Agent
Determination); provided that JPMorgan may elect, in its commercially
reasonable judgment, Component Adjustment (Calculation Agent Determination)
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	Consequences of Tender Offers:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(c) Share-for-Combined:

	 	Modified Calculation Agent Adjustment; provided,
however, that if an event occurs that constitutes both a Tender Offer under
Section 12.1(d) of the Equity Definitions and an Additional Termination Event under
Section 12(f) of this Master Confirmation, JPMorgan may elect, in its commercially
reasonable judgment, whether the provisions of Section 12.3 of the Equity Definitions
or Section 12(f) of this Master Confirmation will apply
	 
	 	 
	Composition of Combined
Consideration:

	 	Not Applicable
	 
	 	 
	Nationalization, Insolvency
or Delisting:

	 	Cancellation and Payment (Calculation Agent Determination).
	 
	 	 
	 

	 	In addition to the provisions of Section 12.6(a)(iii)
of the Definitions, it will also constitute a
Delisting if the Exchange is located in the United
States and the Shares are not immediately re-listed
or re-traded on any of the New York Stock Exchange,
the American Stock Exchange, The NASDAQ Global Select
Market or The NASDAQ Global Market (or their
respective successors); if the Shares are immediately
re-listed or re-traded on any such exchange, such
exchange shall thereafter be deemed to be the
Exchange and the Calculation Agent shall make any
adjustments it deems necessary to the terms of the
Transaction, as if Modified Calculation Agent
Adjustment were applicable to such event.
	 
	 	 
	Determining Party:

	 	Buyer

          9. Additional Disruption Events:

	 	 	 
	Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of the Definitions is
hereby amended by (i) replacing the phrase “the interpretation” in the third line
thereof with the phrase “or

6

 

	 	 	 
	 

	 	public announcement of the formal or informal
interpretation” and (ii) immediately following the
word “Transaction” in clause (X) thereof, adding the
phrase “in the manner contemplated by the Hedging
Party on the Trade Date”.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable, except if Issuer is a debtor (or similar participant) with
respect to such Insolvency Filing.
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	Maximum Stock Loan Rate:

	 	2.00%
	 
	 	 
	Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 
	Initial Stock Loan Rate:

	 	0.25%
	 
	 	 
	Hedging Party:

	 	For all applicable Additional Disruption Events, Buyer
	 
	 	 
	Determining Party:

	 	For all applicable Additional Disruption Events, Buyer

          10. Acknowledgements:

	 	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

          11. Representations, Warranties and Agreements:

          (a) In connection with this Master Confirmation, each Confirmation, each Transaction to which
a Confirmation relates and any other documentation relating to the Agreement, each party to this
Master Confirmation represents and warrants to, and agrees with, the other party that:

     (i) it is an “accredited investor” as defined in Section 2(a)(15)(ii) of the Securities
Act; and

     (ii) it is an “eligible contract participant” as defined in Section 1a(12) of the
Commodity Exchange Act, as amended (the “CEA”), and this Master Confirmation and
each Transaction hereunder are subject to individual negotiation by the parties and have not
been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA.

          (b) Issuer hereby repeats the representations and warranties of Issuer set forth in Section 1
of the Purchase Agreement (the “Purchase Agreement”) dated as of March 27, 2008 between,
among others, Issuer

7

 

and Buyer as a representative of the Initial Purchasers (as defined in the Purchase
Agreement), and, in addition, represents and warrants to, and agrees with, Buyer on the Trade Date
of each Transaction that:

     (i) IT UNDERSTANDS THAT SUCH TRANSACTION IS SUBJECT TO COMPLEX RISKS THAT MAY ARISE
WITHOUT WARNING AND MAY AT TIMES BE VOLATILE AND THAT LOSSES MAY OCCUR QUICKLY AND IN
UNANTICIPATED MAGNITUDE AND IS WILLING TO ACCEPT SUCH TERMS AND CONDITIONS AND ASSUME
(FINANCIALLY AND OTHERWISE) SUCH RISKS;

     (ii) it is not on the date hereof in possession of material, non-public information
with respect to Issuer or the Shares;

     (iii) it is not entering into any Transaction to create, and will not engage in any
other securities or derivatives transactions to create, actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or to raise or
depress or to manipulate the price of the Shares (or any security convertible into or
exchangeable for Shares);

     (iv) for any Transaction hereunder, it shall maintain a number of authorized but
unissued Shares that are free from preemptive rights that at all times exceeds the sum of
(x) the Maximum Delivery Amount for each Transaction, plus (y) the aggregate number of
Shares expressly reserved for any other use (including, without limitation, Shares reserved
for issuance upon the exercise of options or convertible debt), whether expressed as caps or
as numbers of Shares reserved or otherwise;

     (v) the Shares issuable upon exercise of all Warrants (the “Warrant Shares”)
have been duly authorized and, when delivered pursuant to the terms of such Transaction,
shall be validly issued, fully-paid and non-assessable, and such issuance of the Warrant
Shares shall not be subject to any preemptive or similar rights;

     (vi) Issuer is not, and after giving effect to the transactions contemplated hereby
will not be, an “investment company” as such term is defined in the Investment Company Act
of 1940, as amended;

     (vii) without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that JPMorgan is not making any representations or warranties with respect to
the treatment of the Transaction under FASB Statements 128, 133, as amended, 149 or 150,
EITF Issue No. 00-19, Issue No. 01-6 or Issue No. 03-6 (or any successor issue statements)
or under FASB’s Liabilities & Equity Project; and

     (viii) it is not on the date hereof engaged in a distribution, as such term is used in
Regulation M under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), of any securities of Issuer, other than a distribution meeting the requirements
of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M. Issuer shall
not, until the sixth Scheduled Trading Day immediately following the Trade Date, engage in
any such distribution.

          (c) Issuer shall deliver to JPMorgan an opinion of counsel, dated as of the Effective Date for
each Transaction hereunder and reasonably acceptable to JPMorgan in form and substance, with
respect to the matters set forth in Section 3(a) of the Agreement and Sections 11(b)(v) and (vi)
hereof with respect to such Transaction.

          12. Miscellaneous:

          (a) Early Termination. The parties agree that Second Method and Loss will apply to
each Transaction under this Master Confirmation as such terms are defined under the Agreement.

8

 

          (b) Alternative Calculations and Issuer Payment on Early Termination and on Certain
Extraordinary Events. If, subject to Section 12(f) below, Issuer owes Buyer any amount in
connection with a Transaction hereunder pursuant to Section 12.7 or 12.9 of the Definitions (except
in the case of an Extraordinary Event in which the consideration or proceeds to be paid to holders
of Shares as a result of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the
Agreement (except in the case of an Event of Default in which Issuer is the Defaulting Party or a
Termination Event in which Issuer is the Affected Party, other than an (x) Event of Default of the
type described in Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination Event
of the type described in Section 5(b) of the Agreement that in the case of either (x) or (y)
resulted from an event or events outside Issuer’s control) (an “Issuer Payment
Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such Issuer
Payment Obligation by delivery of Termination Delivery Units (as defined below) by giving
irrevocable telephonic notice to Buyer, confirmed in writing within one Scheduled Trading Day,
between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Merger Date, the Announcement
Date (in the case of Nationalization, Insolvency or Delisting), Early Termination Date or date of
cancellation, as applicable (“Notice of Issuer Termination Delivery”); provided
that (i) if Issuer does not validly elect to satisfy its Issuer Payment Obligation in Termination
Delivery Units, Buyer shall have the right to require Issuer to satisfy its Issuer Payment
Obligation in Termination Delivery Units, notwithstanding Issuer’s election to the contrary and
(ii) Issuer shall not have the right, notwithstanding any notice to the contrary, to satisfy its
Issuer Payment Obligation by Termination Delivery Units unless on the date of any such notice,
Issuer represents to Buyer that, as of such date, it is not in possession of any material
non-public information with respect to itself or the Shares. Within a commercially reasonable
period of time following receipt of a Notice of Issuer Termination Delivery, Issuer shall deliver
to Buyer a number of Termination Delivery Units having a cash value equal to the amount of such
Issuer Payment Obligation (such number of Termination Delivery Units to be delivered to be
determined by the Calculation Agent as the number of whole Termination Delivery Units that could be
sold over a commercially reasonable period of time to generate proceeds equal to the cash
equivalent of such payment obligation, and the date of such delivery, the “Termination Payment
Date”). In addition, if, in the reasonable opinion of counsel to Issuer or Buyer, for any
reason, the Termination Delivery Units deliverable pursuant to this paragraph (b) would not be
immediately freely transferable by Buyer under Rule 144 under the Securities Act, then Buyer may
elect either to (x) accept delivery of such Termination Delivery Units notwithstanding any
restriction on transfer or (y) have the provisions set forth in paragraph (c) below apply. If the
provisions set forth in this paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.10,
9.11 (modified as described above) and 9.12 of the Definitions shall be applicable, except that all
references to “Shares” shall be read as references to “Termination Delivery Units.”

“Termination Delivery Unit” means (i) in the case of a Termination Event, an Event
of Default or an Extraordinary Event (other than an Insolvency, Nationalization, Merger
Event or Tender Offer), one Share or (ii) in the case of an Insolvency, Nationalization,
Merger Event or Tender Offer, a unit consisting of the number or amount of each type of
property received by a holder of one Share (without consideration of any requirement to pay
cash or other consideration in lieu of fractional amounts of any securities) in such
Insolvency, Nationalization, Merger Event or Tender Offer. If a Termination Delivery Unit
consists of property other than cash or New Shares and Issuer provides irrevocable written
notice to the Calculation Agent on or prior to the Closing Date or the date of such
Termination Event, Event of Default or an Additional Disruption Event, as the case may be,
that it elects to deliver cash, New Shares or a combination thereof (in such proportion as
Issuer designates) in lieu of such other property, the Calculation Agent will replace such
property with cash, New Shares or a combination thereof as components of a Termination
Delivery Unit in such amounts, as determined by the Calculation Agent in its discretion by
commercially reasonable means, as shall have a value equal to the value of the property so
replaced. If such Insolvency, Nationalization, Merger Event or Tender Offer involves a
choice of consideration to be received by holders, such holder shall be deemed to have
elected to receive the maximum possible amount of cash.

          (c) Registration/Private Placement Procedures. (i) With respect to each Transaction,
the following provisions shall apply to the extent provided for above opposite the caption “Net
Share Settlement” in Section 5, if Buyer reasonably determines that, for any reason, the Shares
deliverable upon Net Share Settlement would not be immediately freely transferable by Buyer under
Rule 144 under the Securities Act, or in paragraph (b)

9

 

of this Section 12. If so applicable, then, at the election of Issuer by notice to Buyer
within one Exchange Business Day after the relevant delivery obligation arises, but in any event at
least one Exchange Business Day prior to the date on which such delivery obligation is due (if
Issuer does not make an election by such date, Issuer shall be deemed to have made the election
described in clause (B) below), either (A) all Shares or Termination Delivery Units, as the case
may be, delivered by Issuer to Buyer shall be, at the time of such delivery, covered by an
effective registration statement of Issuer for immediate resale by Buyer (such registration
statement and the corresponding prospectus (the “Prospectus”) (including, without
limitation, any sections describing the plan of distribution) in form and content commercially
reasonably satisfactory to Buyer) or (B) Issuer shall deliver additional Shares or Termination
Delivery Units, as the case may be, so that the value of such Shares or Termination Delivery Units,
as determined by the Calculation Agent to reflect an appropriate liquidity discount, equals the
value of the number of Shares or Termination Delivery Units that would otherwise be deliverable if
such Shares or Termination Delivery Units were freely tradeable (without prospectus delivery) upon
receipt by Buyer (such value, the “Freely Tradeable Value”); provided that Issuer
may not make the election described in this clause (B) if, on the date of its election, it has
taken, or caused to be taken, any action that would make unavailable either the exemption pursuant
to Section 4(2) of the Securities Act for the sale by Issuer to Buyer (or any affiliate designated
by Buyer) of the Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities
Act for resales of the Shares by Buyer (or any such affiliate of Buyer). (For the avoidance of
doubt, as used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

     (ii) If Issuer makes the election described in clause (c)(i)(A) above:

     (A) Buyer (or an Affiliate of Buyer designated by Buyer) shall be afforded a reasonable
opportunity to conduct a due diligence investigation with respect to Issuer that is
customary in scope for underwritten offerings of equity securities and that yields results
that are commercially reasonably satisfactory to Buyer or such Affiliate, as the case may
be, in its discretion; and

     (B) Buyer (or an Affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Registration Agreement”) on commercially reasonable terms in
connection with the public resale of such Shares or Termination Delivery Units, as the case
may be, by Buyer or such Affiliate substantially similar to underwriting agreements
customary for underwritten offerings of equity securities, in form and substance
commercially reasonably satisfactory to Buyer or such Affiliate and Issuer, which
Registration Agreement shall include, without limitation, provisions substantially similar
to those contained in such underwriting agreements relating to the indemnification of, and
contribution in connection with the liability of, Buyer and its Affiliates and Issuer, shall
provide for the payment by Issuer of all expenses in connection with such resale, including
all registration costs and all fees and expenses of counsel for Buyer, and shall provide for
the delivery of accountants’ “comfort letters” to Buyer or such Affiliate with respect to
the financial statements and certain financial information contained in or incorporated by
reference into the Prospectus.

     (iii) If Issuer makes the election described in clause (c)(i)(B) above:

     (A) Buyer (or an Affiliate of Buyer designated by Buyer) and any potential
institutional purchaser of any such Shares or Termination Delivery Units, as the case may
be, from Buyer or such Affiliate identified by Buyer shall be afforded a commercially
reasonable opportunity to conduct a due diligence investigation in compliance with
applicable law with respect to Issuer customary in scope for private placements of equity
securities (including, without limitation, the right to have made available to them for
inspection all financial and other records, pertinent corporate documents and other
information reasonably requested by them), subject to execution by such recipients of
customary confidentiality agreements reasonably acceptable to Issuer;

     (B) Buyer (or an Affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Shares or Termination Delivery Units, as the
case may be, by Issuer to Buyer or such Affiliate and the private resale of such shares by
Buyer or such Affiliate, substantially similar to private placement purchase agreements
customary for private placements of equity securities, in form and

10

 

substance commercially reasonably satisfactory to Buyer and Issuer, which Private
Placement Agreement shall include, without limitation, provisions substantially similar to
those contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Buyer and its
Affiliates and Issuer, shall provide for the payment by Issuer of all expenses in connection
with such resale, including all fees and expenses of counsel for Buyer, shall contain
representations, warranties and agreements of Issuer reasonably necessary or advisable to
establish and maintain the availability of an exemption from the registration requirements
of the Securities Act for such resales, and shall use best efforts to provide for the
delivery of accountants’ “comfort letters” to Buyer or such Affiliate with respect to the
financial statements and certain financial information contained in or incorporated by
reference into the offering memorandum prepared for the resale of such Shares; and

     (C) Issuer agrees that any Shares or Termination Delivery Units so delivered to Buyer,
(i) may be transferred by and among Buyer and its affiliates, and Issuer shall effect such
transfer without any further action by Buyer and (ii) after the minimum “holding period”
within the meaning of Rule 144(d) under the Securities Act has elapsed with respect to such
Shares or any securities issued by Issuer comprising such Termination Delivery Units, Issuer
shall promptly remove, or cause the transfer agent for such Shares or securities to remove,
any legends referring to any such restrictions or requirements from such Shares or
securities upon delivery by Buyer (or such affiliate of Buyer) to Issuer or such transfer
agent of seller’s and broker’s representation letters customarily delivered by Buyer in
connection with resales of restricted securities pursuant to Rule 144 under the Securities
Act, without any further requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax stamps or
payment of any other amount or any other action by Buyer (or such affiliate of Buyer).

          (d) Make-whole Shares. If (x) Issuer elects to deliver Termination Delivery Units
pursuant to “Alternative Calculations and Issuer Payment on Early Termination and on Certain
Extraordinary Events” above or (y) Issuer makes the election described in clause (i)(B) of
paragraph (c) of this Section 12, then in either case Buyer or its affiliate may sell (which sale
shall be made in a commercially reasonable manner) such Shares or Termination Delivery Units, as
the case may be, during a period (the “Resale Period”) commencing on the Exchange Business
Day following delivery of such Shares or Termination Delivery Units, as the case may be, and ending
on the Exchange Business Day on which Buyer completes the sale of all such Shares or Termination
Delivery Units, as the case may be, or a sufficient number of Shares or Termination Delivery Units,
as the case may be, so that the realized net proceeds of such sales exceed the amount of the Issuer
Payment Obligation (in the case of clause (x), or in the case that both clause (x) and clause (y)
apply) or the Freely Tradeable Value (in the case that only clause (y) applies) (such amount of the
Issuer Payment Obligation or Freely Tradeable Value, as the case may be, the “Required
Proceeds”). If any of such delivered Shares or Termination Delivery Units remain after such
realized net proceeds exceed the Required Proceeds, Buyer shall return such remaining Shares or
Termination Delivery Units to Issuer. If the Required Proceeds exceed the realized net proceeds
from such resale, Issuer shall transfer to Buyer by the open of the regular trading session on the
Exchange on the Exchange Business Day immediately following the last day of the Resale Period the
amount of such excess (the “Additional Amount”) in cash or in a number of additional Shares
or Termination Delivery Units (“Make-whole Shares”) in an amount that, based on the
Relevant Price on the last day of the Resale Period (as if such day was the “Valuation Date” for
purposes of computing such Relevant Price), has a dollar value equal to the Additional Amount. The
Resale Period shall continue to enable the sale of the Make-whole Shares in the manner contemplated
by this Section 12(d). This provision shall be applied successively until the Additional Amount is
equal to zero, subject to Section 12(e).

          (e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Issuer be required to deliver Shares in connection
with any Transaction in excess of the Maximum Delivery Amount for such Transaction. Issuer
represents and warrants (which shall be deemed to be repeated on each day that the Transaction is
outstanding) that the Maximum Delivery Amount for all Transactions hereunder is equal to or less
than the number of authorized but unissued Shares of the Issuer that are not reserved for future
issuance in connection with transactions in the Shares (other than all Transactions hereunder). In
the event Issuer shall not have delivered the full number of Shares otherwise deliverable as a
result of this Section

11

 

12(e) (the resulting deficit, the “Deficit Shares”), Issuer shall, at its option,
either (A) pay the cash value of such Deficit Shares as determined by Calculation Agent on the
related Settlement Date or (B) use its best efforts to obtain a shareholder vote authorizing the
issuance of such Deficit Shares in accordance with the rules and regulations of the New York Stock
Exchange and, upon obtaining such approval, promptly deliver such Deficit Shares in settlement of
such Transactions. Issuer shall notify Buyer prior to the Exchange Business Day immediately
preceding the first Expiration Date for such Transaction of its election in respect of any such
Deficit Shares. For the avoidance of doubt, to the extent that Issuer elects to use its best
efforts to obtain shareholder approval pursuant to clause (B) and, notwithstanding having used such
best efforts shareholder approval was not obtained, Issuer shall be discharged from the obligation
to deliver such Deficit Shares.

          (f) Certain Corporate Transactions. Upon the consummation of any of the following
events, each a “Fundamental Change”, Buyer shall have the right to designate each such
event an Additional Termination Event and designate an Early Termination Date pursuant to Section
6(b) of the Agreement with respect to which the Transaction is the sole Affected Transaction and
Issuer is the sole Affected Party:

          (1) any Person (as defined below) acquires beneficial ownership, directly or indirectly,
through a purchase, merger or other acquisition transaction or series of transactions, of shares of
Issuer’s Capital Stock (as defined below) entitling the Person to exercise 50% or more of the total
voting power of all shares of Issuer’s Capital Stock entitled to vote generally in elections of
directors, other than an acquisition by Issuer or any of Issuer’s Subsidiaries (as defined below)
provided that a Fundamental Change shall not occur as a result of this clause (1) if, in such
purchase, merger, acquisition or other transaction, all or substantially all of the Common Stock
(as defined below) is exchanged for or converted into cash, securities or other property, in which
case clause (2) below shall apply (in addition to, if applicable, clauses (3), (4) or (5) below);
or

          (2) Issuer (i) merges or consolidates with or into any other Person, another Person merges
with or into Issuer, or Issuer conveys, sells, transfers or leases all or substantially all of
Issuer’s assets to another Person (excluding a pledge of securities issued by any of Issuer’s
Subsidiaries, but not excluding any transfer or other disposition resulting from the foreclosure or
other exercise of creditors’ remedies pursuant to such pledge) or (ii) engages in any
recapitalization, reclassification or other acquisition transaction or series of transactions in
which all or substantially all of the Common Stock is exchanged for or converted into cash,
securities or other property, in each case other than a merger or consolidation:

          (a) pursuant to which the holders of the Common Stock immediately prior to the transaction
have the entitlement to exercise, directly or indirectly, 50% or more of the voting power of all
shares of Capital Stock entitled to vote generally in the election of directors of either (x) the
continuing or surviving corporation immediately after the transaction or (y) the corporation that
directly or indirectly owns 100% of the Capital Stock of such continuing or surviving corporation;
or

          (b) that does not result in a reclassification, conversion, exchange or cancellation of the
outstanding shares of Common Stock; or

          (c) which is effected solely to change Issuer’s jurisdiction of incorporation and results in a
reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares
of common stock of the surviving entity; or

          (3) at any time Issuer’s Continuing Directors (as defined below) do not constitute a majority
of the Board of Directors (as defined below) of Issuer (or, if applicable, a successor Person to
Issuer); or

          (4) Issuer is liquidated or dissolved or holders of the Common Stock approve any plan or
proposal for Issuer’s liquidation or dissolution; or

12

 

          (5) if shares of Common Stock, or shares of any other Capital Stock which constitute Reference
Property (as defined below), are not listed for trading on any United States national securities
exchange.

          “Board of Directors” means, with respect to any Person, either the board of directors
of such Person or any duly authorized committee of that board.

          “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and limited liability company interests and,
with respect to partnerships, partnership interests (whether general or limited) and any other
interest or participation that confers on a Person the right to receive a share of the profits and
losses of, or distributions of assets of, such partnership.

          “Common Stock” means the Shares as they exist on the date of the Indenture (as defined
below) or any other shares of Capital Stock of Issuer into which the Common Stock shall be
reclassified or changed.

          “Continuing Directors” means (i) individuals who on the date of original issuance of
the Notes (as defined below) were members of the Board of Directors of Issuer and (ii) any new
directors whose election to the Board of Directors of Issuer or whose nomination for election by
Issuer’s stockholders was approved by at least a majority of Issuer’s directors then still in
office (or a duly constituted committee thereof), either who were directors on the date of original
issuance of the Notes or whose election or nomination for election was previously so approved.

          “Conversion Rate” means, initially 48.7805 Shares per $1,000 principal amount of
Notes, subject to adjustment as set forth in the Indenture.

          “Corporation” means a corporation, association, company, limited partnership,
joint-stock company or business trust.

          “Indenture” means the Indenture between the Issuer and The Bank of New York as
Trustee, dated April 2, 2008.

          “Merger Event” means (i) any reclassification or change of the outstanding Shares
(other than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a split, subdivision or combination), (ii) a consolidation, binding share
exchange, recapitalization, reclassification, merger, combination or other similar event, or (iii)
any sale or conveyance to another Person of all or substantially all of the property and assets of
Issuer (excluding a pledge of securities issued by any of the Issuer’s Subsidiaries but, for the
avoidance of doubt, not excluding any foreclosure thereon), in any case as a result of which
holders of Shares shall be entitled to receive cash, securities or other property or assets with
respect to or in exchange for such Shares.

          “Notes” means the convertible notes issued by the Issuer pursuant to the terms of the
Indenture.

          “Person” means any individual, corporation, partnership, limited liability company,
joint venture, trust, unincorporated organization or government or any agency or political
subdivision thereof.

          “Reference Property” means, at the effective time of a Merger Event, pursuant to the
terms of the Indenture, the kind and amount of cash, securities or other property or assets that a
holder of a number of Shares equal to the Conversion Rate immediately prior to such transaction
would have owned or been entitled to receive.

          “Subsidiary” means a Corporation more than 50% of the outstanding voting stock or
other voting interests of which is owned, directly or indirectly, by Issuer or by one or more other
Subsidiaries, or by Issuer and one or more other Subsidiaries. For the purposes of this
definition, “voting stock or other voting interests” means stock or other voting interests which
ordinarily have voting power for the election of directors or comparable

13

 

governing body, whether at all times or only so long as no senior class of stock or other
interests has such voting power by reason of any contingency.

          (g) Set-Off and Netting. Neither party shall set-off or net amounts due to either
party with respect to any Transaction hereunder against amounts due to either party from the other
party whether arising under the Agreement, this Master Confirmation or any other agreement between
the parties hereto, by operation of law or otherwise.

          (h) Status of Claims in Bankruptcy. Buyer acknowledges and agrees that this Master
Confirmation, together with any Confirmation, is not intended to convey to Buyer rights with
respect to any Transaction that are senior to the claims of common stockholders in any U.S.
bankruptcy proceedings of Issuer; provided that nothing herein shall limit or shall be
deemed to limit Buyer’s right to pursue remedies in the event of a breach by Issuer of its
obligations and agreements with respect to any Transaction; and provided, further,
that nothing herein shall limit or shall be deemed to limit Buyer’s rights in respect of any
transactions other than the Transactions.

          (i) No Collateral. Notwithstanding any provision of this Master Confirmation, any
Confirmation or the Agreement, or any other agreement between the parties, to the contrary, the
obligations of Issuer under the Transactions are not secured by any collateral. Without limiting
the generality of the foregoing, if this Master Confirmation, the Agreement or any other agreement
between the parties includes an ISDA Credit Support Annex or other agreement pursuant to which
Issuer collateralizes obligations to Buyer, then the obligations of Issuer hereunder shall not be
considered to be obligations under such Credit Support Annex or other agreement pursuant to which
Issuer collateralizes obligations to Buyer, and any Transactions hereunder shall be disregarded for
purposes of calculating any Exposure, Market Value or similar term thereunder.

          (j) Assignment of Share Delivery to Affiliates. Notwithstanding any other provision
in this Master Confirmation to the contrary requiring or allowing Buyer to purchase, sell, receive
or deliver any shares or other securities to or from Issuer, Buyer may designate any of its
affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to
perform Buyer’s obligations in respect of this Transaction and any such designee may assume such
obligations. Buyer shall be discharged of its obligations to Issuer to the extent of any such
performance.

          (k) Limit on Beneficial Ownership. Notwithstanding any other provisions hereof, Buyer
may not exercise any Warrant hereunder, Automatic Exercise shall not apply with respect thereto,
and any delivery pursuant to Section 12(b) shall not be made, to the extent (but only to the
extent) that the receipt of any Shares upon such exercise or delivery would result in Buyer
directly or indirectly (i) beneficially owning (as such term is defined for purposes of Section
13(d) of the Exchange Act) at any time in excess of 8.0% of the outstanding Shares or (ii) own
“control shares” (as such term is used in Section 3-701(d) of the Maryland Control Share
Acquisition Act) in excess of 8.0% of the outstanding Shares. Any purported delivery hereunder
shall be void and have no effect to the extent (but only to the extent) that such delivery would
result in Buyer directly or indirectly (i) so beneficially owning in excess of 8.0% of the
outstanding Shares or (ii) so own “control shares” (as such term is used in Section 3-701(d) of the
Maryland Control Share Acquisition Act) in excess of 8.0% of the outstanding Shares. If any
delivery owed to Buyer hereunder is not made, in whole or in part, as a result of this provision,
Issuer’s obligation to make such delivery shall not be extinguished and Issuer shall make such
delivery as promptly as practicable after, but in no event later than one Business Day after, Buyer
gives notice to Issuer that such delivery would not result in Buyer directly or indirectly (i) so
beneficially owning in excess of 8.0% of the outstanding Shares or (ii) so own “control shares” (as
such term is used in Section 3-701(d) of the Maryland Control Share Acquisition Act) in excess of
8.0% of the outstanding Shares. 

          (l) [Reserved]

14

 

          (m) Transfer. Notwithstanding any provision of the Agreement to the contrary, Buyer
may, subject to applicable law, freely transfer and assign all of its right and obligations under
any Transaction without the consent of Seller to persons who are broker-dealers, banks, investment
advisors, investment banks or other persons in the derivatives industry. If at any time at which
(1) Buyer’s “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and rules
promulgated thereunder) exceeds 8.0% of Seller’s outstanding Shares, (2) the Units Equity
Percentage (as defined below) is at or exceeds 14.5%, or (3) the quotient of (x) the number of
“control shares” (as such term is used in Section 3-701(d) of the Maryland Control Share
Acquisition Act) owned by Buyer divided by (y) the number of Seller’s outstanding Shares (the
“Control Share Percentage”) exceeds 8.0%, Buyer, in its discretion, is unable to effect a transfer
or assignment to a third party after using commercially reasonable efforts on pricing terms
reasonably acceptable to Buyer and within a time period reasonably acceptable to Buyer such that
(1) Buyer’s “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and rules
promulgated thereunder) is reduced to 8.0% of Seller’s outstanding Shares or less, (2) the Units
Equity Percentage is reduced to 14.5% or less or (3) the Control Share Percentage is reduced to
8.0% or less, Buyer may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”) of the Transaction, such that (1) its “beneficial
ownership” following such partial termination will be equal to or less than 8.0%, (2) the Units
Equity Percentage following such partial termination will be less than 14.5% or (3) the Control
Share Percentage following such partial termination will be equal to or less than 8.0%. In the
event that Buyer so designates an Early Termination Date with respect to a portion of the
Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section
11(b) of this Master Confirmation as if (i) an Early Termination Date had been designated in
respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii)
Seller shall be the sole Affected Party with respect to such partial termination and (iii) such
portion of the Transaction shall be the only Terminated Transaction. The “Units Equity
Percentage” as of any day is the fraction the numerator of which is the aggregate Number of
Shares for all Transactions hereunder and the denominator of which is the number of Shares
outstanding on such day.

          (n) Severability; Illegality. If compliance by either party with any provision of a
Transaction would be unenforceable or illegal, (i) the parties shall negotiate in good faith to
resolve such unenforceability or illegality in a manner that preserves the economic benefits of the
transactions contemplated hereby and (ii) the other provisions of the Transaction shall not be
invalidated, but shall remain in full force and effect.

          (o) Waiver of Trial by Jury. EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY TRANSACTION HEREUNDER OR THE ACTIONS OF BUYER OR
ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

          (p) Confidentiality. Notwithstanding any provision in this Master Confirmation, any
Confirmation or the Agreement, in connection with Section 1.6011-4 of the Treasury Regulations, the
parties hereby agree that each party (and each employee, representative, or other agent of such
party) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment
and U.S. tax structure of the Transaction and all materials of any kind (including opinions or
other tax analyses) that are provided to such party relating to such U.S. tax treatment and U.S.
tax structure, other than any information for which nondisclosure is reasonably necessary in order
to comply with applicable securities laws.

          (q) Securities Contract; Swap Agreement. The parties hereto intend for: (i) each
Transaction hereunder to be a “securities contract” as defined in Section 741(7) of the Bankruptcy
Code (Title 11 of the United States Code, as amended) (the “Bankruptcy Code”) and a “swap
agreement” as defined in Section 101(53B) of the Bankruptcy Code, and the parties hereto to be
entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27),
362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code; (ii) the
Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code;
(iii) a party’s right to liquidate, terminate or accelerate any Transaction, offset, net or net out
termination values, payment

15

 

amounts or other transfer obligations, and to exercise any other remedies upon the occurrence
of any Event of Default or Termination Event under the Agreement with respect to the other party or
any Extraordinary Event that results in the termination or cancellation of any Transaction to
constitute a “contractual right” within the meaning of Sections 555, 560 and 561 of the Bankruptcy
Code; (iv) any cash, securities or other property provided as performance assurance, credit support
or collateral with respect to each Transaction to constitute “margin payments” and “transfers”
“under” or “in connection with” each Transaction and the Agreement, in each case within the meaning
of the Bankruptcy Code; and (v) all payments or deliveries for, under or in connection with each
Transaction, all payments for the Shares and the transfer of such Shares to constitute “settlement
payments” and “transfers” “under” or “in connection with” each Transaction and the Agreement, in
each case within the meaning of the Bankruptcy Code.

          (r) Additional Termination Events. (i) If at any time Buyer reasonably determines
that it is advisable to terminate a portion of the Transaction so that Buyer’s related hedging
activities will comply with applicable securities laws, rules, regulations, self-regulatory
requirements or related policies or procedures (whether or not such requirements, policies or
procedures are imposed by law or have been voluntarily adopted by Buyer), an Additional Termination
Event shall occur in respect of which (1) Issuer shall be the sole Affected Party and (2) the
Transaction shall be the sole Affected Transaction.

          (ii) If Issuer defaults on the Notes, and such default results in an acceleration of the Notes
pursuant to the terms of the Indenture, an Additional Termination Event shall occur in respect of
which (1) Issuer shall be the sole Affected Party and (2) the Transaction shall be the sole
Affected Transaction.

          (s) Effectiveness. If, prior to the Effective Date for any Transaction, Buyer
reasonably determines that it is advisable to cancel such Transaction because of concerns that
Buyer’s related hedging activities could be viewed as not complying with applicable securities
laws, rules or regulations, such Transaction shall be cancelled and shall not become effective, and
neither party shall have any obligation to the other party in respect of such Transaction.

          (t) Share Deliveries. Issuer acknowledges and agrees that, to the extent the holder of
this Warrant is not then an affiliate and has not been an affiliate for 90 days (it being
understood that Buyer will not be considered an affiliate under this paragraph solely by reason of
its receipt of Shares pursuant to this Transaction), and otherwise satisfies all holding period and
other requirements of Rule 144 of the Securities Act applicable to it, any delivery of Shares or
Termination Delivery Units hereunder at any time after 6 months from the Trade Date (or 1 year from
the Trade Date if, at such time, informational requirements of Rule 144(c) are not satisfied with
respect to the Issuer) shall be eligible for resale under Rule 144 of the Securities Act and Issuer
agrees to promptly remove, or cause the transfer agent for such Shares or Termination Delivery
Units, to remove, any legends referring to any restrictions on resale under the Securities Act from
the Shares or Termination Delivery Units. Issuer further agrees that any delivery of Shares or
Termination Delivery Units prior to the date that is 6 months from the Trade Date (or 1 year from
the Trade Date if, at such time, informational requirements of Rule 144(c) are not satisfied with
respect to the Issuer), may be transferred by and among Buyer and its affiliates and Issuer shall
effect such transfer without any further action by Buyer. Notwithstanding anything to the contrary
herein, Issuer agrees that any delivery of Shares or Termination Delivery Units shall be effected
by book-entry transfer through the facilities of the Depositary Trust Corporation (“DTC”), or any
successor depositary, if at the time of delivery, such class of Shares or class of Termination
Delivery Units is in book-entry form at DTC or such successor depositary. Notwithstanding anything
to the contrary herein, to the extent the provisions of Rule 144 of the Securities Act or any
successor rule are amended, or the applicable interpretation thereof by the Securities and Exchange
Commission or any court change after the Trade Date, the agreements of Issuer herein shall be
deemed modified to the extent necessary, in the opinion of outside counsel of Issuer, to comply
with Rule 144 of the Securities Act, as in effect at the time of delivery of the relevant Shares or
Termination Delivery Units.

          (u) Right to Extend. Buyer may postpone, in whole or in part, any Expiration Date or
any other date of valuation or delivery with respect to some or all of the relevant Warrants (in
which event the

16

 

Calculation Agent shall make appropriate adjustments to the number of Warrants per Component
with respect to one or more Expiration Dates) if Buyer determines, in its commercially reasonable
judgment, that such extension is reasonably necessary or appropriate to preserve Buyer’s hedging or
hedge unwind activity hereunder in light of existing liquidity conditions or to enable Buyer to
effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity
hereunder in a manner that would, if Buyer were Issuer or an affiliated purchaser of Issuer, be in
compliance with applicable legal, regulatory or self-regulatory requirements, or with related
policies and procedures applicable to Buyer.

          (v) Amendments to the Equity Definitions:

          (A) Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a
diluting or concentrative” and replacing them with the words “a material”; and adding the phrase
“or Warrants” at the end of the sentence.

          (B) Section 11.2(c) of the Equity Definitions is hereby amended by (x) replacing the words “a
diluting or concentrative” with “an”, (y) adding the phrase “or Warrants” after the words “the
relevant Shares” in the same sentence and (z) deleting the phrase “(provided that no adjustments
will be made to account solely for changes in volatility, expected dividends, stock loan rate or
liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the
avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected
dividends, stock loan rate or liquidity relative to the relevant Shares).”

          (C) Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a
diluting or concentrative” and replacing them with the word “a material”; and adding the phrase “or
Warrants” at the end of the sentence.

          (D) Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the
fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (2)
deleting the semi-colon at the end of subsection (B) thereof and inserting the following words
therefor “or (C) at Buyer’s option, the occurrence of any of the events specified in Section
5(a)(vii) (1) through (9) of the ISDA Master Agreement with respect to that Issuer.”

          (E) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

          (x) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following
subsection (A) and (3) the phrase “in each case” in subsection (B); and

          (y) deleting the phrase “neither the Non-Hedging Party nor the Lending Party lends
Shares in the amount of the Hedging Shares or” in the penultimate sentence.

          (F) Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

          (x) adding the word “or” immediately before subsection “(B)” and deleting the comma at
the end of subsection (A); and

          (y) (1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately
preceding subsection (C) and (3) deleting the penultimate sentence in its entirety and
replacing it with the sentence “The Hedging Party will determine the Cancellation Amount
payable by one party to the other.”

          (w) Amendment. If, pursuant to the Purchase Agreement, the Initial Purchasers (as
defined in the Purchase Agreement) exercise their right to purchase additional Notes (the
“Additional Notes”), then on the closing date for the purchase and sale of the Additional
Notes, (i) the aggregate Number of Warrants will be automatically increased, and each Component
will be proportionately increased, by additional Warrants (the

17

 

“Additional Warrants”) in proportion to the increase in aggregate principal amount
represented by such Additional Notes purchased by the Initial Purchaser affiliated with Buyer; and
(ii) Buyer shall pay to Issuer, on the closing date for such Additional Notes, an additional
premium in USD equal to the product of the Additional Warrants and a fraction, the numerator of
which is the Premium and the denominator of which is the aggregate Number of Warrants (prior to any
such increase).

          (x) Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan Securities
Inc., an affiliate of JPMorgan (“JPMSI”), has acted solely as agent and not as principal
with respect to this Transaction and (ii) JPMSI has no obligation or liability, by way of guaranty,
endorsement or otherwise, in any manner in respect of this Transaction (including, if applicable,
in respect of the settlement thereof). Each party agrees it will look solely to the other party (or
any guarantor in respect thereof) for performance of such other party’s obligations under this
Transaction.

          13. Addresses for Notice:

	 	 	 
	If to JPMorgan:

	 	JPMorgan Chase Bank, National Association
	 

	 	277 Park Avenue, 11th Floor
	 

	 	New York, NY 10172
	 

	 	Attention: Mariusz Kwasnik
	 

	 	Title: Operations Analyst
	 

	 	EDG Corporate Marketing
	 

	 	Telephone No: (212) 622-6707
	 

	 	Facsimile No: (212) 622-8534
	 
	 	 
	If to Issuer:

	 	PHH Corporation
	 

	 	3000 Leadenhall Road,
	 

	 	Mt. Laurel New Jersey 08054
	 

	 	Fax: (856) 917-4278
	 

	 	Attention: Treasurer
	 
	 	 
	with a copy to:

	 	Wm. David Chalk, Esq.,
	 

	 	DLA Piper US LLP
	 

	 	6225 Smith Avenue
	 

	 	Baltimore, Maryland 21209-3600,
	 

	 	Fax: (410) 580-3120

          14. Accounts for Payment:

	 	 	 
	To JPMorgan:

	 	JPMorgan Chase Bank, N.A., New York
	 

	 	ABA: 021 000 021
	 

	 	Favour: JPMorgan Chase Bank N.A., London
	 

	 	A/C: 0010962009
	 

	 	CHASUS33
	 
	 	 
	To Issuer:

	 	JP Morgan Chase
	 

	 	ABA 021 000 021
	 

	 	PHH Corporation
	 

	 	Account number 323018688

          15. Delivery Instructions:

          Unless otherwise directed in writing, any Share to be delivered hereunder shall be
delivered as follows:

18

 

	 	 	 
	To JPMorgan:

	 	DTC 0060

19

 

	 	 	 	 	 
	 	Yours sincerely,

J.P. MORGAN SECURITIES INC., AS AGENT FOR

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Santosh Sreenivasan
 	 
	 	 	Name:  	Santosh Sreenivasan 	 
	 	 	Title:  	Executive Director 	 
	 

	 	 	 	 	 
	Confirmed as of the
date first above written:

PHH CORPORATION

 	 
	By:  	/s/ Mark E. Johnson
 	 
	 	Name:  	Mark E. Johnson 	 
	 	Title:  	Vice President & Treasurer 	 

 

 

EXHIBIT A

CONFIRMATION

	 	 	 
	Date:

	 	March 27, 2008
	 
	 	 
	To:

	 	PHH Corporation (“Issuer”)
	 
	 	 
	Facsimile:

	 	(856) 917-4278
	 
	 	 
	Attention:

	 	Treasurer
	 
	 	 
	From:

	 	JPMorgan Chase Bank, National Association (“JPMorgan”)
	 
	 	 
	Facsimile:

	 	(212) 622-8534
	 
	 	 
	Transaction Reference Number:

          The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced Transaction entered into on the Trade Date specified below
between you and us. This Confirmation supplements, forms a part of, and is subject to the Master
Terms and Conditions for Warrants Issued by PHH Corporation, between JPMorgan Chase Bank, National
Association and PHH Corporation, dated as of March 27, 2008 (as amended from time to time, the
“Master Confirmation”).

          1. The definitions and provisions contained in the Definitions (as such term is defined in the
Master Confirmation) and in the Master Confirmation are incorporated into this Confirmation. In
the event of any inconsistency between those definitions and provisions and this Confirmation, this
Confirmation will govern.

          2. The particular Transaction to which this Confirmation relates shall have the following
terms:

	 	 	 
	Trade Date:

	 	March 27, 2008
	 
	 	 
	Effective Date:

	 	April 2, 2008
	 
	 	 
	Strike Price:

	 	USD 27.20
	 
	 	 
	Premium:

	 	USD 6,265,800
	 
	 	 
	Premium Payment Date:

	 	The Effective Date.
	 
	 	 
	Maximum Delivery Amount:

	 	3,246,000 Shares (as adjusted for stock splits, stock
dividends, recapitalizations and similar events)

For each Component of the Transaction, the Number of Warrants and Expiration Date are as set forth
below.

A-1

 

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	1.

	 	 	26,829	 	 	July 16, 2012
	2.

	 	 	26,829	 	 	July 17, 2012
	3.

	 	 	26,829	 	 	July 18, 2012
	4.

	 	 	26,829	 	 	July 19, 2012
	5.

	 	 	26,829	 	 	July 20, 2012
	6.

	 	 	26,829	 	 	July 23, 2012
	7.

	 	 	26,829	 	 	July 24, 2012
	8.

	 	 	26,829	 	 	July 25, 2012
	9.

	 	 	26,829	 	 	July 26, 2012
	10.

	 	 	26,829	 	 	July 27, 2012
	11.

	 	 	26,829	 	 	July 30, 2012
	12.

	 	 	26,829	 	 	July 31, 2012
	13.

	 	 	26,829	 	 	August 1, 2012
	14.

	 	 	26,829	 	 	August 2, 2012
	15.

	 	 	26,829	 	 	August 3, 2012
	16.

	 	 	26,829	 	 	August 6, 2012
	17.

	 	 	26,829	 	 	August 7, 2012
	18.

	 	 	26,829	 	 	August 8, 2012
	19.

	 	 	26,829	 	 	August 9, 2012
	20.

	 	 	26,829	 	 	August 10, 2012
	21.

	 	 	26,829	 	 	August 13, 2012
	22.

	 	 	26,829	 	 	August 14, 2012
	23.

	 	 	26,829	 	 	August 15, 2012
	24.

	 	 	26,829	 	 	August 16, 2012
	25.

	 	 	26,829	 	 	August 17, 2012
	26.

	 	 	26,829	 	 	August 20, 2012
	27.

	 	 	26,829	 	 	August 21, 2012
	28.

	 	 	26,829	 	 	August 22, 2012
	29.

	 	 	26,829	 	 	August 23, 2012
	30.

	 	 	26,829	 	 	August 24, 2012
	31.

	 	 	26,829	 	 	August 27, 2012
	32.

	 	 	26,829	 	 	August 28, 2012
	33.

	 	 	26,829	 	 	August 29, 2012
	34.

	 	 	26,829	 	 	August 30, 2012
	35.

	 	 	26,829	 	 	August 31, 2012
	36.

	 	 	26,829	 	 	September 4, 2012
	37.

	 	 	26,829	 	 	September 5, 2012
	38.

	 	 	26,829	 	 	September 6, 2012
	39.

	 	 	26,829	 	 	September 7, 2012
	40.

	 	 	26,829	 	 	September 10, 2012
	41.

	 	 	26,829	 	 	September 11, 2012
	42.

	 	 	26,829	 	 	September 12, 2012
	43.

	 	 	26,829	 	 	September 13, 2012
	44.

	 	 	26,829	 	 	September 14, 2012
	45.

	 	 	26,829	 	 	September 17, 2012
	46.

	 	 	26,829	 	 	September 18, 2012
	47.

	 	 	26,829	 	 	September 19, 2012
	48.

	 	 	26,829	 	 	September 20, 2012
	49.

	 	 	26,829	 	 	September 21, 2012
	50.

	 	 	26,829	 	 	September 24, 2012

A-2

 

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	51.

	 	 	26,829	 	 	September 25, 2012
	52.

	 	 	26,829	 	 	September 26, 2012
	53.

	 	 	26,829	 	 	September 27, 2012
	54.

	 	 	26,829	 	 	September 28, 2012
	55.

	 	 	26,829	 	 	October 1, 2012
	56.

	 	 	26,829	 	 	October 2, 2012
	57.

	 	 	26,829	 	 	October 3, 2012
	58.

	 	 	26,829	 	 	October 4, 2012
	59.

	 	 	26,829	 	 	October 5, 2012
	60.

	 	 	26,829	 	 	October 8, 2012
	61.

	 	 	26,829	 	 	October 9, 2012
	62.

	 	 	26,829	 	 	October 10, 2012
	63.

	 	 	26,829	 	 	October 11, 2012
	64.

	 	 	26,829	 	 	October 12, 2012
	65.

	 	 	26,829	 	 	October 15, 2012
	66.

	 	 	26,829	 	 	October 16, 2012
	67.

	 	 	26,829	 	 	October 17, 2012
	68.

	 	 	26,829	 	 	October 18, 2012
	69.

	 	 	26,829	 	 	October 19, 2012
	70.

	 	 	26,829	 	 	October 22, 2012
	71.

	 	 	26,829	 	 	October 23, 2012
	72.

	 	 	26,829	 	 	October 24, 2012
	73.

	 	 	26,829	 	 	October 25, 2012
	74.

	 	 	26,829	 	 	October 26, 2012
	75.

	 	 	26,829	 	 	October 29, 2012
	76.

	 	 	26,829	 	 	October 30, 2012
	77.

	 	 	26,829	 	 	October 31, 2012
	78.

	 	 	26,829	 	 	November 1, 2012
	79.

	 	 	26,829	 	 	November 2, 2012
	80.

	 	 	26,829	 	 	November 5, 2012
	81.

	 	 	26,829	 	 	November 6, 2012
	82.

	 	 	26,829	 	 	November 7, 2012
	83.

	 	 	26,829	 	 	November 8, 2012
	84.

	 	 	26,829	 	 	November 9, 2012
	85.

	 	 	26,829	 	 	November 12, 2012
	86.

	 	 	26,829	 	 	November 13, 2012
	87.

	 	 	26,829	 	 	November 14, 2012
	88.

	 	 	26,829	 	 	November 15, 2012
	89.

	 	 	26,829	 	 	November 16, 2012
	90.

	 	 	26,829	 	 	November 19, 2012
	91.

	 	 	26,829	 	 	November 20, 2012
	92.

	 	 	26,829	 	 	November 21, 2012
	93.

	 	 	26,829	 	 	November 23, 2012
	94.

	 	 	26,829	 	 	November 26, 2012
	95.

	 	 	26,829	 	 	November 27, 2012
	96.

	 	 	26,829	 	 	November 28, 2012
	97.

	 	 	26,829	 	 	November 29, 2012
	98.

	 	 	26,829	 	 	November 30, 2012
	99.

	 	 	26,829	 	 	December 3, 2012
	100.

	 	 	26,829	 	 	December 4, 2012
	101.

	 	 	26,829	 	 	December 5, 2012
	102.

	 	 	26,829	 	 	December 6, 2012
	103.

	 	 	26,829	 	 	December 7, 2012

A-3

 

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	104.

	 	 	26,829	 	 	December 10, 2012
	105.

	 	 	26,829	 	 	December 11, 2012
	106.

	 	 	26,829	 	 	December 12, 2012
	107.

	 	 	26,829	 	 	December 13, 2012
	108.

	 	 	26,829	 	 	December 14, 2012
	109.

	 	 	26,829	 	 	December 17, 2012
	110.

	 	 	26,829	 	 	December 18, 2012
	111.

	 	 	26,829	 	 	December 19, 2012
	112.

	 	 	26,829	 	 	December 20, 2012
	113.

	 	 	26,829	 	 	December 21, 2012
	114.

	 	 	26,829	 	 	December 24, 2012
	115.

	 	 	26,829	 	 	December 26, 2012
	116.

	 	 	26,829	 	 	December 27, 2012
	117.

	 	 	26,829	 	 	December 28, 2012
	118.

	 	 	26,829	 	 	December 31, 2012
	119.

	 	 	26,829	 	 	January 2, 2013
	120.

	 	 	26,862	 	 	January 3, 2013

A-4

 

          3. Issuer hereby agrees (a) to check this Confirmation promptly upon receipt so that errors or
discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing
correctly sets forth the terms of the agreement between us with respect to the particular
Transaction to which this Confirmation relates, by manually signing this Confirmation and providing
any other information requested herein or in the Master Confirmation and immediately returning an
executed copy to EDG Confirmation Group, J.P. Morgan Securities Inc., 277 Park Avenue, 11th Floor,
New York, NY 10172-3401, or by fax to (212) 622 8519.

	 	 	 	 	 
	 	Yours sincerely,

J.P. MORGAN SECURITIES INC., AS AGENT FOR

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Confirmed as of the date first above written:

PHH CORPORATION

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

A-5EX-10.4

 

Exhibit 10.4

CONFIRMATION

	 	 	 
	Date:

	 	March 27, 2008
	 
	 	 
	To:

	 	PHH Corporation (“Counterparty”)
	 
	 	 
	Facsimile:

	 	(856) 917-4278
	 
	 	 
	Attention:

	 	Treasurer
	 
	 	 
	From:

	 	JPMorgan Chase Bank, National Association (“JPMorgan”)
	 
	 	 
	Facsimile:

	 	(212) 622-8534

Transaction Reference Number:

          The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced Transaction entered into on the Trade Date specified below
between you and us. This Confirmation supplements, forms a part of, and is subject to the Master
Terms and Conditions for Convertible Bond Hedging Transactions between JPMorgan Chase Bank,
National Association and PHH Corporation dated as of March 27, 2008 (as amended from time to time,
the “Master Confirmation”).

          1. The definitions and provisions contained in the Definitions (as such term is defined in the
Master Confirmation) and in the Master Confirmation are incorporated into this Confirmation. In
the event of any inconsistency between those definitions and provisions and this Confirmation, this
Confirmation will govern.

          2. The particular Transaction to which this Confirmation relates is entered into as part of an
integrated hedging transaction of the Convertible Notes pursuant to the provisions of Treasury
Regulation Section 1.1275-6.

          3. The particular Transaction to which this Confirmation relates shall have the following
terms:

	 	 	 
	Trade Date:

	 	March 27, 2008
	 
	 	 
	Effective Date:

	 	The closing date for the initial issuance of the Convertible Notes
	 
	 	 
	Premium:

	 	USD 13,587,900
	 
	 	 
	Premium Payment Date:

	 	The Effective Date
	 
	 	 
	Convertible Notes:

	 	4% Convertible Senior Notes due 2012, offered pursuant to an Offering Memorandum to be dated as of
March 27, 2008 and issued pursuant to the Indenture.
	 
	 	 
	Number of Units:

	 	The number of Convertible Notes in denominations of USD1,000 principal amount issued by Counterparty on
the closing date for the initial issuance of the Convertible Notes.
	 
	 	 
	Strike Price:

	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents being rounded upwards),
equal to USD1,000 divided by the Unit Entitlement.

A-1

 

	 	 	 
	Applicable Percentage:

	 	30%
	 
	 	 
	Number of Shares:

	 	The product of the Number of Units, the Unit Entitlement and the Applicable Percentage.
	 
	 	 
	Expiration Date:

	 	April 15, 2012
	 
	 	 
	Unit Entitlement:

	 	As of any date, a number of Shares per Unit equal to the Conversion Rate (as defined in the Indenture,
but without regard to any adjustments to the Conversion Rate pursuant to the Excluded Provisions of the
Indenture).
	 
	 	 
	Indenture:

	 	Indenture to be dated as of April 2, 2008 by and between Counterparty and The Bank of New York, as
trustee, pursuant to which the Convertible Notes are to be issued. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most recently
reviewed by the parties at the time of execution of this Confirmation. If any relevant sections of the
Indenture are changed, added or renumbered following execution of this Confirmation but prior to the
execution of the Indenture, the parties will amend this Confirmation in good faith to preserve the
economic intent of the parties.
	 
	 	 
	Net Share Provision:

	 	Section 5.04(a)(ii) and Section 5.04(b) (without duplication) of the Indenture
	 
	 	 
	Excluded Provisions:

	 	Sections 5.06(g), 5.02 and 5.17 of the Indenture
	 
	 	 
	Dilution Provisions:

	 	Sections 5.06(a), (b), (c), (d), (e) and (i) of the Indenture
	 
	 	 
	Merger Provision:

	 	Section 5.12 of the Indenture
	 
	 	 
	Tender Offer Provision:

	 	Section 5.12 of the Indenture
	 
	 	 
	Make-Whole Provisions:

	 	Section 5.02(a) of the Indenture
	 
	 	 
	Early Unwind Date:

	 	April 2, 2008, or such later date as agreed by the parties hereto.

A-2

 

          3. Counterparty hereby agrees (a) to check this Confirmation promptly upon receipt so that
errors or discrepancies can be promptly identified and rectified and (b) to confirm that the
foregoing correctly sets forth the terms of the agreement between us with respect to the particular
Transaction to which this Confirmation relates, by manually signing this Confirmation and providing
any other information requested herein or in the Master Confirmation and immediately returning an
executed copy to EDG Confirmation Group, J.P. Morgan Securities Inc., 277 Park Avenue, 11th Floor,
New York, NY 10172-3401, or by fax to (212) 622 8519.

	 	 	 	 	 
	 	Yours sincerely,

J.P. MORGAN SECURITIES INC., AS

AGENT FOR JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Santosh Sreenivasan
 	 
	 	 	Name:  	Santosh Sreenivasan 	 
	 	 	Title:  	Executive Director 	 
	 

	 	 	 	 	 
	Confirmed as of the

date first above written:

PHH CORPORATION

 	 	 
	By:  	/s/ Mark E. Johnson
 	 	 
	 	Name:  	Mark E. Johnson 	 	 
	 	Title:  	Vice President & Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]